<SEC-DOCUMENT>0000950103-20-015135.txt : 20200925
<SEC-HEADER>0000950103-20-015135.hdr.sgml : 20200925
<ACCEPTANCE-DATETIME>20200804132940
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950103-20-015135
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20200804

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AES CORP
		CENTRAL INDEX KEY:			0000874761
		STANDARD INDUSTRIAL CLASSIFICATION:	COGENERATION SERVICES & SMALL POWER PRODUCERS [4991]
		IRS NUMBER:				541163725
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4300 WILSON BOULEVARD
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203
		BUSINESS PHONE:		7035221315

	MAIL ADDRESS:	
		STREET 1:		4300 WILSON BOULEVARD
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AES CORPORATION
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="vertical-align: middle; width: 77%; text-align: left"><IMG SRC="image_001.gif" ALT=""></TD>
    <TD STYLE="width: 23%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>The
                           AES Corporation</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">4300
        Wilson Boulevard</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Arlington,
        VA 22203</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">1
        703 522 1315</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #00415F"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">www.aes.com&nbsp;</FONT></P></TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5in"><FONT STYLE="font-size: 10pt">August 4, 2020</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Robert Babula<BR>
&nbsp;&nbsp;&nbsp;Staff Accountant<BR>
Sondra Snyder</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;Staff Accountant</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Division of Corporation Finance</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Office of Energy &amp; Transportation</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">U.S. Securities and Exchange
Commission<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Re: Commission File No. 001-12291</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Dear Mr. Babula and Ms. Synder:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">We have received
your comment letter dated July 21, 2020 regarding the Form 10-K of The AES Corporation (the &ldquo;Company&rdquo; or &ldquo;AES&rdquo;)
filed with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) on February 28, 2020, and the Current Report
on Form 8-K (the &ldquo;Form 8-K&rdquo;) of the Company filed with the Commission on May 7, 2020. Our responses to your comments
follow:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><U>Item 2.02 Form 8-K filed
May 7, 2020</U></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><U>Exhibit 99.1</U></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><U>Non-GAAP Financial Measures</U></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><U>Reconciliation of Parent
Free Cash Flow</U></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Comment 1</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><I>1. Please refer to your non-GAAP
measure Parent Free Cash Flow (&ldquo;PFCF&rdquo;) and address the following:</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&bull;
You disclose the Parent Company&rsquo;s or management&rsquo;s use of PFCF, but do not specifically identify how this measure
is useful to investors. Please revise your disclosure to specifically identify how this measure is useful to your investors.
Refer to Item 10(e)(1)(i)(C) of Regulation S-K.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&bull;
Tell us and disclose in further detail management&rsquo;s use of PFCF. In doing so, clarify for us and revise your disclosure
to expand upon the &ldquo;other uses&rdquo; that you mention in footnote 1. Refer to Item 10(e)(1)(i)(D) of Regulation S-K.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><IMG SRC="image_002.gif" ALT=""></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Response</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">The Company acknowledges the
Staff&rsquo;s comment and proposes to include the following disclosure regarding Management&rsquo;s use of PFCF in future materials:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&ldquo;Parent Free Cash Flow
(a non-GAAP financial measure) should not be construed as an alternative to Net Cash Provided by Operating Activities, which is
determined in accordance with US GAAP. Parent Free Cash Flow is the primary, recurring source of cash that is available for use
by the Parent Company. Parent Free Cash Flow is equal to Subsidiary Distributions less cash used for interest costs, development,
general and administrative activities, and tax payments by the Parent Company. Management uses Parent Free Cash Flow to determine
the cash available to pay dividends, repay recourse debt, make equity investments, fund share buybacks, pay Parent Company hedging
costs and make foreign exchange settlements. We believe that Parent Free Cash Flow is useful to investors because it better reflects
the Parent Company&rsquo;s cash available to make growth investments, pay shareholder dividends, and make principal payments on
recourse debt. Factors in this determination include availability of subsidiary distributions to the Parent Company and the Company&rsquo;s
investment plan.&rdquo;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Other Uses: The use of PFCF for
&ldquo;other uses&rdquo; represents approximately 1%-4% of PFCF for 2017 &ndash; 2019. These &ldquo;other uses&rdquo; consist
of Parent Company hedging costs, foreign exchange settlements, interest paid on temporary intercompany borrowings, and other fees.
We propose to replace the reference to &ldquo;other uses&rdquo; with &ldquo;pay Parent Company hedging costs and make foreign
exchange settlements&rdquo; and to omit further reference to other uses.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Comment 2</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>2.
You disclose that, &ldquo;The reconciliation of the difference between the subsidiary distributions and net cash provided by
operating activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety
of reasons which are both discretionary and non-discretionary in nature.&rdquo;</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&bull;
Explain your basis for inclusion of non-discretionary cash retained at the subsidiary level in your
reconciliation.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&bull;
Disclose the nature and amount of cash retained at the subsidiary level which is discretionary and non-discretionary in nature.
Additionally, discuss and quantify the specific changes in the discretionary and non-discretionary cash retained at the subsidiary
level.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Response</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">PFCF comprises cash distributed
to the Parent Company or its Qualified Holding Companies (&ldquo;QHCs&rdquo;). No cash, discretionary or non-discretionary, retained
at the non-QHC subsidiary level, is included as part of PFCF. The disclosure regarding non-discretionary cash is made in</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 2; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><IMG SRC="image_002.gif" ALT=""></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">reference to <I>consolidated
</I>operating cash flows, which, by definition, includes the cash flows from operating activities at all of our consolidated subsidiaries.
Operating cash flows at our subsidiaries may or may not be readily available for distribution to the Parent Company at a given
point in time, which this disclosure is intended to highlight. While management does have some discretion over whether a subsidiary&rsquo;s
cash flows are distributed to the Parent Company or retained at the subsidiary for future investment, PFCF only includes cash
that is actually distributed to and received by the Parent Company or its QHCs within the reporting period. In order to further
clarify, we propose to include &ldquo;consolidated&rdquo; in this disclosure when referring to &ldquo;net cash provided by operating
activities,&rdquo; in order to distinguish from the reconciliation to <I>Schedule 1</I> operating cash flows, which only includes
the operating cash flows of the Parent Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Comment 3</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><I>3. We note you provided guidance
for fiscal 2020 PFCF of $725 to $775 million. You assert you are unable to provide a reconciliation for this non-GAAP measure
to the GAAP measure net cash provided by operating activities at the Parent Company from Schedule I without unreasonable effort.
Tell us why you are not able to provide a reconciliation to net cash provided by operating activities at the Parent Company in
light of the disclosures made on page 35 of your March 31, 2020 Form 10-Q filing which states, &ldquo;We derive approximately
85% of our total revenues from our regulated utilities and long-term sales and supply contracts or PPAs at our generation businesses,
which contributes to a relatively stable revenue and cost structure at most of our businesses.&rdquo;</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Response</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">3. We note your comment and affirm
that we are unable to provide a forward-looking reconciliation for PFCF to the GAAP measure, net cash provided by operating activities
at the Parent Company from Schedule 1, without unreasonable effort due to the reasons set forth below. While management&rsquo;s
projections of the cash expected to be generated from the operations of our subsidiaries is based, in large part, on the revenues
and costs associated with our regulated utilities and long-term sales and supply contracts or PPAs at our generation businesses,
these distributions may be classified under US GAAP as cash from investing activities or financing activities at the Parent Company
Schedule 1, due to the holding company structure and the mechanics of how these subsidiary distributions will be made: payments
on intercompany loans, dividend payments, liquidation proceeds from the disposal of the equity or assets of the subsidiary, etc..
We are not able to anticipate with a reasonable degree of accuracy the classification of relevant future cash flows under US GAAP
on Schedule 1 and their relationship to PFCF, as the characterization of certain subsidiary distributions and overhead expenses
funded by the Parent Company is generally not known or knowable until the transaction occurs.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 3; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><IMG SRC="image_002.gif" ALT=""></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Further, in contrast to the forecasting
of PFCF, we do not forecast the components of Schedule 1, which include revenues, costs, or cash flows, as presented on a US GAAP
basis. Schedule 1 is only prepared annually for the purposes of our Form 10-K. As illustrated in the reconciliation, certain cash
flows included in the determination of PFCF are classified as investing activities in Schedule 1 under US GAAP. Examples of differences
that give rise to these reconciling items include liquidation proceeds from sales of businesses that are sourced from the business&rsquo;s
accumulated earnings, dividends from subsidiaries classified as return of capital for US GAAP purposes, and repayments of intercompany
loan agreements. These differences (reconciling items) arise due to the amount of available retained earnings at the subsidiary
at any given reporting period, or the existence of any intercompany loan agreements that may require a subsidiary distribution
or funding of overhead from the Parent Company to be classified as an investing or financing activity under US GAAP. As such,
these reconciling items are not able to be forecasted to a degree of reasonable accuracy without unreasonable cost or effort;
and accordingly, we do not believe that any such forecasted reconciliation would be meaningful to our current or prospective investors.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">* * *</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Please contact Sherry Kohan,
Vice President and Controller (703-682-6389) or Jennifer Gillcrist, Associate General Counsel &ndash; Securities &amp; Governance
(703-682-6397) if you have any questions with respect to the foregoing or if we may otherwise be of assistance.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Very truly yours,</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><U>/s/ Gustavo Pimenta</U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Gustavo Pimenta</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Executive Vice President and
Chief Financial Officer<BR>
The AES Corporation</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

<!-- Field: Page; Sequence: 4; Options: Last -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>image_001.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image_001.gif
M1TE&.#EAFP!0 /<  /______S/__F?__9O__,___ /_,___,S/_,F?_,9O_,
M,__, /^9__^9S/^9F?^99O^9,_^9 /]F__]FS/]FF?]F9O]F,_]F /\S__\S
MS/\SF?\S9O\S,_\S /\ __\ S/\ F?\ 9O\ ,_\  ,S__\S_S,S_F<S_9LS_
M,\S_ ,S,_\S,S,S,F<S,9LS,,\S, ,R9_\R9S,R9F<R99LR9,\R9 ,QF_\QF
MS,QFF<QF9LQF,\QF ,PS_\PSS,PSF<PS9LPS,\PS ,P _\P S,P F<P 9LP
M,\P  )G__YG_S)G_F9G_9IG_,YG_ )G,_YG,S)G,F9G,9IG,,YG, )F9_YF9
MS)F9F9F99IF9,YF9 )EF_YEFS)EFF9EF9IEF,YEF )DS_YDSS)DSF9DS9IDS
M,YDS )D _YD S)D F9D 9ID ,YD  &;__V;_S&;_F6;_9F;_,V;_ &;,_V;,
MS&;,F6;,9F;,,V;, &:9_V:9S&:9F6:99F:9,V:9 &9F_V9FS&9FF69F9F9F
M,V9F &8S_V8SS&8SF68S9F8S,V8S &8 _V8 S&8 F68 9F8 ,V8  #/__S/_
MS#/_F3/_9C/_,S/_ #/,_S/,S#/,F3/,9C/,,S/, #.9_S.9S#.9F3.99C.9
M,S.9 #-F_S-FS#-FF3-F9C-F,S-F #,S_S,SS#,SF3,S9C,S,S,S #, _S,
MS#, F3, 9C, ,S,   #__P#_S #_F0#_9@#_,P#_  #,_P#,S #,F0#,9@#,
M,P#,  "9_P"9S "9F0"99@"9,P"9  !F_P!FS !FF0!F9@!F,P!F   S_P S
MS  SF0 S9@ S,P S    _P  S   F0  9@  ,P
M
M
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A=4&]Y:Y?]&(6O(KWO.A-KWK7R][VNO>]\(VO?&L2$  [

end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>image_002.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image_002.gif
M1TE&.#EAFP!0 /<  /______S/__F?__9O__,___ /_,___,S/_,F?_,9O_,
M,__, /^9__^9S/^9F?^99O^9,_^9 /]F__]FS/]FF?]F9O]F,_]F /\S__\S
MS/\SF?\S9O\S,_\S /\ __\ S/\ F?\ 9O\ ,_\  ,S__\S_S,S_F<S_9LS_
M,\S_ ,S,_\S,S,S,F<S,9LS,,\S, ,R9_\R9S,R9F<R99LR9,\R9 ,QF_\QF
MS,QFF<QF9LQF,\QF ,PS_\PSS,PSF<PS9LPS,\PS ,P _\P S,P F<P 9LP
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M,S.9 #-F_S-FS#-FF3-F9C-F,S-F #,S_S,SS#,SF3,S9C,S,S,S #, _S,
MS#, F3, 9C, ,S,   #__P#_S #_F0#_9@#_,P#_  #,_P#,S #,F0#,9@#,
M,P#,  "9_P"9S "9F0"99@"9,P"9  !F_P!FS !FF0!F9@!F,P!F   S_P S
MS  SF0 S9@ S,P S    _P  S   F0  9@  ,P
M
M
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A=4&]Y:Y?]&(6O(KWO.A-KWK7R][VNO>]\(VO?&L2$  [

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
