Coal

Sargent & Lundy selected for CFB project in British Columbia

13 December 2006 — AESWapiti has selected Sargent & Lundy LLC to provide engineering services for the early phases of the 184-MW Wapiti Power Development Project scheduled to begin operation at a greenfield site in northeastern British Columbia, Canada, at the end of 2010. Final project approval is pending Provincial acceptance of the Application for Project Certification, which is expected in 2007.

The project site will be located adjacent to a new Hillsborough Resources mine. AESWapiti, a subsidiary of AES, will be responsible for the development and operation of the power plant. Hillsborough will be responsible for the development and operation of the coal mine.

Power will be sold to BC Hydro under a 30-year energy purchase agreement. The power plant will burn coal and waste wood biomass, and the technologies to be used include a CFB boiler and an air-cooled condenser for water conservation.