AES Corporation (NYSE: AES) is a Fortune 500 company that generates and distributes electrical power. It was founded on January 28, 1981, as Applied Energy Services[3] by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. It is headquartered in Arlington, Virginia. AES Corporation is one of the world's leading power companies, generating and distributing electric power in 31 countries and employing 27,000 people worldwide.
In 2008, AES Corporation's total revenue was 16.1 Billion, of which $9.11B came from the company's Power Generation division,and $6.99B from Utilities.[4]
In April 2010, AES Wind Generation, a wholly owned subsidiary of AES, acquired UK-based wind developer Your Energy (YEL) and has also signed an agreement to buy a 51% stake in a wind portfolio from 3E, a Polish wind developer. This move will add more than 700MW to AES Wind Generation’s European pipeline.
The AES Corporation (AES), incorporated in 1981, is a global power company. As of December 31, 2010, AES owned a portfolio of electricity generation and distribution businesses on five continents in 28 countries, with total capacity of approximately 40,500 megawatts and distribution networks serving over 12 million people. In addition, AES had more than 2,000 megawatts under construction in six countries. AES owns and operates two primary types of businesses: Generation business and Utilities business. Generation business owns and/or operates power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. In August 2010, AES acquired the operations of Ballylumford Power Station in the United Kingdom.
The Company’s Utilities business owns and/or operates utilities to distribute, transmit and sell electricity to customers in the residential, commercial, industrial and governmental sectors within a defined service area. AES’s portfolio employs a range of fuels, including coal, gas, fuel oil, biomass and renewable sources, such as hydroelectric power, wind and solar. The Company has six segments, which include Latin America-Generation; Latin America-Utilities; North America-Generation; North America-Utilities; Europe-Generation, and Asia-Generation.
Generation
As of December 31, 2010, the Company owned or operated a generation portfolio of approximately 34,100 megawatts, excluding the generation capabilities of its integrated utilities, consisting of 100 Generation facilities in 25 countries on five continents at the Company’s generation businesses. As of December 31, 2010, it also had approximately 1,700 megawatts of capacity under construction in four countries. AES is a power source in many countries, such as Panama, where it is a generator of electricity, and Chile, where AES Gener (Gener) is the electricity generation company in terms of capacity. Its Generation business uses a range of technologies and fuel types including coal, combined-cycle gas turbines, hydroelectric power and biomass.
Utilities
AES utility businesses distribute power to over 12 million people in seven countries on five continents and consist primarily of 14 companies owned or operated under management agreements, each of which operate in defined service areas. These businesses also include 15 generation plants in two countries with generation capacity totaling approximately 4,600 megawatts. These businesses have a range of structures ranging from pure distribution businesses to fully integrated utilities, which generate, transmit and distribute power. Its wholly owned subsidiary in the United States, Indianapolis Power & Light (IPL), provides retail services to approximately 470,000 customers in Indianapolis, Indiana. Eletropaulo Metropolitana Electricidad de Sao Paulo S.A (AES Eletropaulo) serves the Sao Paulo metropolitan region and has approximately six million customers. In Cameroon, AES is the generator and distributor of electricity and in El Salvador the Company provides distribution services to serve more than 77% of the country’s electricity customers.
Despite the opportunities for continued growth in the U.S. power market, however, AES began to look abroad for most of its new business ventures in the early 1990s. In fact, by 1995, the firm was spending an estimated 85 percent of its venture capital abroad. Six AES divisions worldwide emerged: AES Electric, which serviced Europe, the Middle East, and Africa; AES Enterprise; AES Chigen, which serviced China; AES Transpower (Asia, Hawaii, and the American West Coast); AES Shady Point; and AES Americas (Latin America).
The company's shift to the developing world was in part a natural reaction to its experience with its defunct Jacksonville power plant. The plant's failure underscored the relative difficulty independent power producers had doing business in the United States as opposed to overseas, where environmental restrictions were more flexible in part because the cost of pollution there was more easily offset by the benefits of electrical power. As AES company executive Sheryl Sturges told the Washington Post in 1995: "In the developing world, electricity produced from coal and other sources can make the difference between life and death. It can mean refrigeration for medicines and light for schoolchildren to study by."
AES's U.S. government tax levy rose sharply in the mid-1990s, from an effective rate of taxation of 23 percent in 1993 to 40 percent in 1996. In the developing world, by contrast, which was hungry for electrical energy, governments were eliminating tax and regulatory barriers that stymied the efforts of independent power producers.
In fact, the developing world's heightened need for electrical power was the chief reason AES shifted most of its new business ventures abroad. Electricity consumption in the United States, for instance, was expected to grow at an average annual rate of 1.9 percent until the year 2010, according to the Edison Electric Institute. The demand for electricity in the rest of the world, however, was projected to grow at nearly twice that rate, at an estimated annual rate of 4 percent during that same time period, according to the International Energy Agency.
According to Sant, the world needed $30 billion worth of new power plants a year through the year 2000. China and India alone, he suggested, would need three times more generating power over the next ten years than all of North America combined, and thus would require some $500 billion in power plant financing. As such, AES began an international expansion effort that would position it as the world's largest independent power company. As overseas governments began privatizing their utilities sectors, AES stepped in by making acquisitions and constructing new plants.
By 1999, the Virginia-based company operated in 24 countries and over half of its profits stemmed from its operations outside the United States and Europe. That year, AES paid National Power plc $3 billion for the Drax power station, which supplies power to England and Wales. The company also began diversifying into telecommunications and investing in fiber optic networks in Brazil and Bolivia.
While the company completed a series of acquisitions during the late 1990s and 2000 as part of its global strategy, it made several key moves on the home front as well. In 1998, it announced its $885 million purchase of U.S.-based Cilcorp Inc., which was completed the following year. The firm also acquired California-based NewEnergy Inc. in July 1999. AES then took advantage of deregulation in the U.S. energy sector by creating Power Direct, a retail subsidiary that served U.S. consumers in deregulated markets. Then, in 2000, the firm acquired Indiana-based IPALCO Enterprises Inc. for $3 billion.
Success for AES continued into the new century. The company acquired Venezuelan utility C.A. La Electricidad de Caracas in a $1.7 billion hostile takeover. The firm also set plans in motion to acquire a stake in Chilean utility Gener S.A., and expanded into Bolivia, Nigeria, and Oman. In 2000, revenues climbed to $7.5 billion, up from $2.2 billion in 1997. In early 2001, AES's growth and expansion appeared to be unflappable.
OVERALL
Beta: 1.39
Market Cap (Mil.): $10,255.18
Shares Outstanding (Mil.): 788.25
Annual Dividend: --
Yield (%): --
FINANCIALS
AES Industry Sector
P/E (TTM): -- 15.60 15.82
EPS (TTM): -107.87 -- --
ROI: 2.58 0.83 1.03
ROE: -1.54 1.72 2.14
Statistics:
Public Company
Incorporated: 1981 as Applied Energy Sources
Employees: 38,000
Sales: $9.3 billion (2001)
Stock Exchanges: New York
Ticker Symbol: AES
NAIC: 221122 Electric Power Distribution; 221121 Electric Bulk Power Transmission and Control; 221111 Hydroelectric Power Generation; 221112 Fossil Fuel Electric Power Generation; 221119 Other Electric Power Generation
Key Dates:
1978: PURPA is enacted into law.
1981: Roger W. Sant and Dennis W. Bakke establish Applied Energy Sources.
1985: Nearly all of the company's assets are invested in a coal-burning plant in Beaver Valley, Pennsylvania.
1987: The Beaver plant begins production.
1991: The firm changes its name to AES Corp. and goes public.
1995: AES begins to pursue ventures in developing countries.
1999: Britain's coal-fired Drax plant and Cilcorp Inc. are acquired; the company enters the retail electricity market.
2002: AES launches a major restructuring effort and announces the sale of several assets and plants.
Name Age Since Current Position
Odeen, Philip 75 2008 Chairman of the Board, Lead Independent Director
Hanrahan, Paul 53 2002 President, Chief Executive Officer, Director
Harker, Victoria 46 2006 Chief Financial Officer, Executive Vice President
Gluski Weilert, Andres Ricardo 53 2007 Chief Operating Officer, Executive Vice President
Miller, Brian 45 2008 Executive Vice President, General Counsel, Corporate Secretary
Hall, Edward 51 2008 EVP, Regional President, NA and Chairman - Global Wind Generation and Energy Storage
Vesey, Andrew 55 2009 Executive Vice President and Regional President of Latin America and Africa
Santoroski, Richard 46 2010 Executive Vice President
Lader, Philip 65 2001 Independent Director
Sandstrom, Sven 69 2002 Independent Director
Rossotti, Charles 70 2003 Independent Director
Johnson, Kristina 53 2011 Independent Director
Koskinen, John 71 2004 Independent Director
Moose, Sandra 69 2004 Independent Director
Morse, John 64 2008 Independent Director
Bodman, Samuel 72 2009 Independent Director
Khanna, Tarun 44 2009 Independent Director
Address:
1001 North 19th Street
Arlington, Virginia 22209
U.S.A.
In 2008, AES Corporation's total revenue was 16.1 Billion, of which $9.11B came from the company's Power Generation division,and $6.99B from Utilities.[4]
In April 2010, AES Wind Generation, a wholly owned subsidiary of AES, acquired UK-based wind developer Your Energy (YEL) and has also signed an agreement to buy a 51% stake in a wind portfolio from 3E, a Polish wind developer. This move will add more than 700MW to AES Wind Generation’s European pipeline.
The AES Corporation (AES), incorporated in 1981, is a global power company. As of December 31, 2010, AES owned a portfolio of electricity generation and distribution businesses on five continents in 28 countries, with total capacity of approximately 40,500 megawatts and distribution networks serving over 12 million people. In addition, AES had more than 2,000 megawatts under construction in six countries. AES owns and operates two primary types of businesses: Generation business and Utilities business. Generation business owns and/or operates power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. In August 2010, AES acquired the operations of Ballylumford Power Station in the United Kingdom.
The Company’s Utilities business owns and/or operates utilities to distribute, transmit and sell electricity to customers in the residential, commercial, industrial and governmental sectors within a defined service area. AES’s portfolio employs a range of fuels, including coal, gas, fuel oil, biomass and renewable sources, such as hydroelectric power, wind and solar. The Company has six segments, which include Latin America-Generation; Latin America-Utilities; North America-Generation; North America-Utilities; Europe-Generation, and Asia-Generation.
Generation
As of December 31, 2010, the Company owned or operated a generation portfolio of approximately 34,100 megawatts, excluding the generation capabilities of its integrated utilities, consisting of 100 Generation facilities in 25 countries on five continents at the Company’s generation businesses. As of December 31, 2010, it also had approximately 1,700 megawatts of capacity under construction in four countries. AES is a power source in many countries, such as Panama, where it is a generator of electricity, and Chile, where AES Gener (Gener) is the electricity generation company in terms of capacity. Its Generation business uses a range of technologies and fuel types including coal, combined-cycle gas turbines, hydroelectric power and biomass.
Utilities
AES utility businesses distribute power to over 12 million people in seven countries on five continents and consist primarily of 14 companies owned or operated under management agreements, each of which operate in defined service areas. These businesses also include 15 generation plants in two countries with generation capacity totaling approximately 4,600 megawatts. These businesses have a range of structures ranging from pure distribution businesses to fully integrated utilities, which generate, transmit and distribute power. Its wholly owned subsidiary in the United States, Indianapolis Power & Light (IPL), provides retail services to approximately 470,000 customers in Indianapolis, Indiana. Eletropaulo Metropolitana Electricidad de Sao Paulo S.A (AES Eletropaulo) serves the Sao Paulo metropolitan region and has approximately six million customers. In Cameroon, AES is the generator and distributor of electricity and in El Salvador the Company provides distribution services to serve more than 77% of the country’s electricity customers.
Despite the opportunities for continued growth in the U.S. power market, however, AES began to look abroad for most of its new business ventures in the early 1990s. In fact, by 1995, the firm was spending an estimated 85 percent of its venture capital abroad. Six AES divisions worldwide emerged: AES Electric, which serviced Europe, the Middle East, and Africa; AES Enterprise; AES Chigen, which serviced China; AES Transpower (Asia, Hawaii, and the American West Coast); AES Shady Point; and AES Americas (Latin America).
The company's shift to the developing world was in part a natural reaction to its experience with its defunct Jacksonville power plant. The plant's failure underscored the relative difficulty independent power producers had doing business in the United States as opposed to overseas, where environmental restrictions were more flexible in part because the cost of pollution there was more easily offset by the benefits of electrical power. As AES company executive Sheryl Sturges told the Washington Post in 1995: "In the developing world, electricity produced from coal and other sources can make the difference between life and death. It can mean refrigeration for medicines and light for schoolchildren to study by."
AES's U.S. government tax levy rose sharply in the mid-1990s, from an effective rate of taxation of 23 percent in 1993 to 40 percent in 1996. In the developing world, by contrast, which was hungry for electrical energy, governments were eliminating tax and regulatory barriers that stymied the efforts of independent power producers.
In fact, the developing world's heightened need for electrical power was the chief reason AES shifted most of its new business ventures abroad. Electricity consumption in the United States, for instance, was expected to grow at an average annual rate of 1.9 percent until the year 2010, according to the Edison Electric Institute. The demand for electricity in the rest of the world, however, was projected to grow at nearly twice that rate, at an estimated annual rate of 4 percent during that same time period, according to the International Energy Agency.
According to Sant, the world needed $30 billion worth of new power plants a year through the year 2000. China and India alone, he suggested, would need three times more generating power over the next ten years than all of North America combined, and thus would require some $500 billion in power plant financing. As such, AES began an international expansion effort that would position it as the world's largest independent power company. As overseas governments began privatizing their utilities sectors, AES stepped in by making acquisitions and constructing new plants.
By 1999, the Virginia-based company operated in 24 countries and over half of its profits stemmed from its operations outside the United States and Europe. That year, AES paid National Power plc $3 billion for the Drax power station, which supplies power to England and Wales. The company also began diversifying into telecommunications and investing in fiber optic networks in Brazil and Bolivia.
While the company completed a series of acquisitions during the late 1990s and 2000 as part of its global strategy, it made several key moves on the home front as well. In 1998, it announced its $885 million purchase of U.S.-based Cilcorp Inc., which was completed the following year. The firm also acquired California-based NewEnergy Inc. in July 1999. AES then took advantage of deregulation in the U.S. energy sector by creating Power Direct, a retail subsidiary that served U.S. consumers in deregulated markets. Then, in 2000, the firm acquired Indiana-based IPALCO Enterprises Inc. for $3 billion.
Success for AES continued into the new century. The company acquired Venezuelan utility C.A. La Electricidad de Caracas in a $1.7 billion hostile takeover. The firm also set plans in motion to acquire a stake in Chilean utility Gener S.A., and expanded into Bolivia, Nigeria, and Oman. In 2000, revenues climbed to $7.5 billion, up from $2.2 billion in 1997. In early 2001, AES's growth and expansion appeared to be unflappable.
OVERALL
Beta: 1.39
Market Cap (Mil.): $10,255.18
Shares Outstanding (Mil.): 788.25
Annual Dividend: --
Yield (%): --
FINANCIALS
AES Industry Sector
P/E (TTM): -- 15.60 15.82
EPS (TTM): -107.87 -- --
ROI: 2.58 0.83 1.03
ROE: -1.54 1.72 2.14
Statistics:
Public Company
Incorporated: 1981 as Applied Energy Sources
Employees: 38,000
Sales: $9.3 billion (2001)
Stock Exchanges: New York
Ticker Symbol: AES
NAIC: 221122 Electric Power Distribution; 221121 Electric Bulk Power Transmission and Control; 221111 Hydroelectric Power Generation; 221112 Fossil Fuel Electric Power Generation; 221119 Other Electric Power Generation
Key Dates:
1978: PURPA is enacted into law.
1981: Roger W. Sant and Dennis W. Bakke establish Applied Energy Sources.
1985: Nearly all of the company's assets are invested in a coal-burning plant in Beaver Valley, Pennsylvania.
1987: The Beaver plant begins production.
1991: The firm changes its name to AES Corp. and goes public.
1995: AES begins to pursue ventures in developing countries.
1999: Britain's coal-fired Drax plant and Cilcorp Inc. are acquired; the company enters the retail electricity market.
2002: AES launches a major restructuring effort and announces the sale of several assets and plants.
Name Age Since Current Position
Odeen, Philip 75 2008 Chairman of the Board, Lead Independent Director
Hanrahan, Paul 53 2002 President, Chief Executive Officer, Director
Harker, Victoria 46 2006 Chief Financial Officer, Executive Vice President
Gluski Weilert, Andres Ricardo 53 2007 Chief Operating Officer, Executive Vice President
Miller, Brian 45 2008 Executive Vice President, General Counsel, Corporate Secretary
Hall, Edward 51 2008 EVP, Regional President, NA and Chairman - Global Wind Generation and Energy Storage
Vesey, Andrew 55 2009 Executive Vice President and Regional President of Latin America and Africa
Santoroski, Richard 46 2010 Executive Vice President
Lader, Philip 65 2001 Independent Director
Sandstrom, Sven 69 2002 Independent Director
Rossotti, Charles 70 2003 Independent Director
Johnson, Kristina 53 2011 Independent Director
Koskinen, John 71 2004 Independent Director
Moose, Sandra 69 2004 Independent Director
Morse, John 64 2008 Independent Director
Bodman, Samuel 72 2009 Independent Director
Khanna, Tarun 44 2009 Independent Director
Address:
1001 North 19th Street
Arlington, Virginia 22209
U.S.A.
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