35-CERT 1 a2072418z35-cert.txt 35-CERT UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ) The AES Corporation ) File No. 70-9779 ) Certificate Pursuant to Rule 24 and Release No. 35-27363 Under the Public Utility Holding Company Act of 1935 On March 23, 2001, the Securities and Exchange Commission ("SEC") issued an order, Release No. 35-27363 in File No. 70-9779 ("Exemption Order"), granting an exemption under Section 3(a) of the Public Utility Holding Company Act of 1935, as amended, to The AES Corporation ("AES") in relation to its proposed acquisition of IPALCO Enterprises, Inc. ("IPALCO"), which has a public-utility subsidiary company, Indianapolis Power & Light Company ("IPL"). The Exemption Order required AES to file certain certificates (as described in the Exemption Order) under Rule 24 within 60 days of the close of each calendar quarter for a period of two years beginning March 31, 2001 and every six months thereafter. A certificate complying with the Exemption Order is set forth below (as an attachment) for the period ending December 31, 2001. AES is separately filing a certificate in File No. 70-9465 as required by the Commission's order in Release No. 35-27063 in connection with the AES acquisition of CILCORP Inc. ("CILCORP"), which has a public-utility subsidiary company, Central Illinois Light Company ("CILCO"). Respectfully submitted, ---------------------------------- Earle H. O'Donnell Andrew B. Young Hugh E. Hilliard Dewey Ballantine LLP 1775 Pennsylvania Avenue, N.W. Washington, D.C. 20006 Dated: March 1, 2002 THE AES CORPORATION SEC FILING PURSUANT TO SECTION 3(a)(5) EXEMPTION ORDER QUARTER ENDED DECEMBER 31, 2001 ITEM (1) PER EXEMPTION ORDER (STATEMENTS ATTACHED): 1) Pro Rata Statement of Income of The AES Corporation for the 12 months ended December 31, 2001 2) Pro Rata Balance Sheet of The AES Corporation at December 31, 2001 3) Statement of Income of IPALCO for the 12 months ended December 31, 2001 4) Statement of Income of IPL for the 12 months ended December 31, 2001 5) Consolidated Balance Sheet of IPALCO at December 31, 2001 6) Consolidated Balance Sheet of IPL at December 31, 2001 7) Statement of Income of CILCORP for the 12 months ended December 31, 2001 8) Statement of Income of CILCO for the 12 months ended December 31, 2001 9) Consolidated Balance Sheet of CILCORP at December 31, 2001 10) Consolidated Balance Sheet of CILCO at December 31, 2001 2 THE AES CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (INCLUDES CILCORP AND IPALCO) FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2001 - PRORATA BASIS (UNAUDITED)
-------------------------------------------------------------------------------- YEAR ENDED ($ in millions, except per share amounts) 12/31/01 -------------------------------------------------------------------------------- REVENUES: Sales and services $ 10,486 OPERATING COSTS AND EXPENSES: Cost of sales and services 7,851 Selling, general and administrative expenses 123 -------- TOTAL OPERATING COSTS AND EXPENSES 7,974 -------- OPERATING INCOME 2,512 OTHER INCOME AND (EXPENSE): Interest expense, net (1,484) Other income 66 -------- INCOME BEFORE INCOME TAXES 1,094 Income tax provision 367 -------- NET INCOME $ 727 ========
This schedule presents on a proforma basis, the results of operations of AES excluding the aggregate (both subsidiaries and affiliates) Brazilian affiliates foreign currency losses of approximately $139 million after income tax, mark to market losses from FAS No. 133 of approximately $36 million after income tax and nonrecurring items, including transaction and severance costs related to IPALCO acquisition of $85 million after income tax. This schedule also excludes loss on discontinued operations of $194 million consisting mainly of Termocandelaria, Ib Valley, Power Direct and telecomunication businesses in Brazil and US. 3 THE AES CORPORATION PRO RATA CONSOLIDATED BALANCE SHEET (INCLUDES CILCORP AND IPALCO) DECEMBER 31, 2001
($ in millions, unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,299 Short-term investments 177 Accounts receivable, net 1,901 Inventory 602 Receivable from affiliates 4 Deferred income taxes 82 Prepaid expenses and other current assets 901 Current assets of discontinued operations 46 -------- TOTAL CURRENT ASSETS 5,012 PROPERTY, PLANT AND EQUIPMENT Land 719 Electric generation and distribution assets 23,250 Accumulated depreciation and amortization (3,747) Construction in progress 4,544 -------- PROPERTY, PLANT AND EQUIPMENT, NET 24,766 OTHER ASSETS Deferred financing costs, net 431 Project development costs 72 Investments in and advances to affiliates 1,284 Debt service reserves and other deposits 813 Excess of Cost over Net Assets Acquired 2,831 LT assets of discontinued operations 207 Other assets 1,243 -------- TOTAL OTHER ASSETS 6,881 TOTAL $ 36,659 ========
4 LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 955 Accrued interest 344 Accrued and other liabilities 1,396 Current liabilities of of discontinued operations 70 Recourse Debt-current 487 Other notes payable - current portion 412 Project financing debt - current portion 1,747 -------- TOTAL CURRENT LIABILITIES 5,411 LONG-TERM LIABILITIES Recourse Debt-LT 4,912 Project Financing Debt-LT 14,550 Other notes payable-LT 702 Deferred Tax Liability 1,977 Long term liabilities of discontinued operations 125 Other long-term liabilities 2,036 -------- TOTAL LONG-TERM LIABILITIES 24,302 Redeemable Securities 978 Preferred Stock 101 STOCKHOLDERS' EQUITY Common Stock 5 Contributed capital / Additional paid in capital 5,791 Retained earnings 2,884 Accumulated other comprehensive loss (2,813) -------- TOTAL STOCKHOLDERS' EQUITY 5,867 TOTAL $ 36,659 ========
5 IPALCO ENTERPRISES, INC. STATEMENT OF CONSOLIDATED INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2001 (UNAUDITED) OPERATING REVENUES: Electric 828,046,342 ------------ Gross Operating Revenues 828,046,342 ------------ OPERATING EXPENSES AND TAXES: Production - Fuel 182,471,237 Production - Other 92,905,588 Power Purchased 16,932,265 ------------ Total 292,309,090 Transmission 5,606,667 Distribution - Electric 29,057,342 Customer and Distribution - Steam 8,747 Customer Accounts 17,138,153 Customer Service and Informational 7,527,264 Administrative and General 142,708,489 ------------ Total 494,355,752 Depreciation 109,717,093 Amortization of Regulatory Deferrals 1,054,471 Income Taxes - Net 59,003,661 Taxes Other than Income Taxes 36,374,939 Disposition of Allowances - Net (3,100,584) ------------ Total Operating Expenses and Taxes 697,405,332 ------------ OPERATING INCOME 130,641,010 ------------ OTHER INCOME AND DEDUCTIONS: Allowance for Funds During Construction 1,337,281 Carrying Charges on Regulatory Assets 3,522 IPL Miscellaneous Income & Deductions-Net (4,367,638) IPL Income Taxes - Net 4,134,728 IPALCO Enterprises, Inc. - Parent Co. (9,870,829) Mid-America Capital Resources, Inc. 245,657 Mid-America Energy Resources, Inc. (14,686) ------------ Total Other Income and Deductions (8,531,965) ------------ TOTAL INCOME 122,109,045 ------------ INTEREST CHARGES: Interest on Long-Term Debt 38,948,999 Allowance for Funds During Const-Credit (624,888) Deferred Return on Regulatory Assets (8,567) Other Interest Charges 544,445 Amortization - Debt Discount & Expense 2,088,365 Preferred Stock Transactions 3,213,311 ------------ Total Interest and Other Charges-Net 44,161,665 ------------ CUM. ACCOUNTING CHANGE - Net of Taxes 0 ------------ NET INCOME 77,947,380 ============
6 INDIANAPOLIS POWER & LIGHT COMPANY STATEMENT OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2001 (UNAUDITED) OPERATING REVENUES: Electric 828,046,342 ------------ Gross Operating Revenues 828,046,342 ------------ OPERATING EXPENSES AND TAXES: Production - Fuel 182,471,237 Production - Other 92,905,588 Power Purchased 16,932,265 ------------ Total 292,309,090 Transmission 5,606,667 Distribution - Electric 29,057,342 Customer and Distribution - Steam 8,747 Customer Accounts 17,138,153 Customer Service and Informational 7,527,264 Administrative and General 142,708,489 ------------ Total 494,355,752 Depreciation 109,717,093 Amortization of Regulatory Deferrals 1,054,471 Income Taxes - Net 59,003,661 Taxes Other than Income Taxes 36,374,939 Disposition of Allowances - Net (3,100,584) ------------ Total Operating Expenses and Taxes 697,405,332 ------------ OPERATING INCOME 130,641,010 ------------ OTHER INCOME AND DEDUCTIONS: Allowance for Other Funds During Construction 1,337,281 Carrying Charges on Regulatory Assets 3,522 Miscellaneous Income and Deductions - Net (4,367,638) Income Taxes - Net 4,134,728 ------------ Total Other Income and Deductions 1,107,893 ------------ TOTAL INCOME 131,748,903 ------------ INTEREST CHARGES: Interest on Long-Term Debt 38,948,999 Allowance for Borrowed Funds Used During Const (624,888) Deferred Return on Regulatory Assets-Borrowed (8,567) Other Interest Charges 544,446 Amortization - Debt Discount & Expense 2,088,365 ------------ Total Interest and Other Charges-Net 40,948,355 ------------ INCOME BEFORE EXTRAORDINARY ITEMS AND CUMULATIVE ACCOUNTING CHANGE 90,800,548 Less Preferred Stock Transactions 3,213,311 ------------ INCOME APPLICABLE TO COMMON STOCK 87,587,237 ============
7 IPALCO ENTERPRISES, INC. AND SUBSIDIARIES BALANCE SHEET (UNAUDITED) DECEMBER 31, 2001 ASSETS: PROPERTY, PLANT AND EQUIPMENT Utility Plant, at Original Cost 3,109,452,649 Less: Accum. Prov. for Deprec. & Amort 1,443,735,909 -------------- Total Utility Plant - Net 1,665,716,740 -------------- OTHER PROPERTY, INVESTMENTS AND OTHER ASSETS: Nonutility Property 2,474,502 Less Accumulated Provision for Depreciation 732,151 -------------- Total Nonutility Property - Net 1,742,351 Other Investments 52,904,618 -------------- Total 54,646,969 -------------- CURRENT ASSETS: Cash 5,085,699 Working Funds 86,970 Temporary Cash Investments 23,702,125 Accounts Receivable: Customers 39,492,704 Miscellaneous 9,603,122 Less: Reserve for Uncollectible Accounts (1,094,572) Interest Receivable 58,627 Fuel 28,969,567 Materials and Supplies - Net 48,375,571 Other Current Assets 1,282,697 Def. Fed. & St. Tax on Fuel Costs-Due w/i 1 Yr -------------- Total Current Assets 155,562,510 -------------- DEFERRED DEBITS: Unamortized Petersburg Unit 4 Carrying Charges 16,610,276 Unamort. Def. Return-Pete Unit 4 Carrying Chgs 9,400,000 Unamort. Reacquisition Premium on Debt 19,665,907 Other Regulatory Assets 52,133,168 Miscellaneous 7,937,740 Unamortized Debt Expense 14,257,125 -------------- Total Deferred Debits 120,004,216 -------------- TOTAL ASSETS 1,995,930,435 ==============
8 LIABILITIES CAPITALIZATION: Common Shareholder's Equity: Premium and Net Gain on Preferred Stock 648,700 Retained Earnings 15,048,816 Accumulated Other Comprehensive Income (11,469,387) -------------- Total 4,228,129 -------------- Non-Redeemable Cumulative Preferred Stock 59,135,300 -------------- Long-Term Debt 1,372,650,000 Unamort. Premium on LT Debt - Net (719,572) -------------- Total Long-Term Debt 1,371,930,428 -------------- Total Capitalization 1,435,293,857 -------------- CURRENT LIABILITIES: Accounts Payable 66,363,132 Dividends Payable 910,152 Customer Deposits 8,590,263 Accrued Liabilities: Interest on Long-Term Debt 20,321,877 Interest on Customer Deposits, etc 1,569,732 Taxes: Federal Taxes on Income (16,785,993) State Taxes on Income 3,653,501 Real Estate and Personal Property 19,426,326 Miscellaneous 3,144,476 Def. Fed. & St. Tax on Fuel Costs-Due w/i 1 Yr 299,831 Deferred Fuel Expense 8,566,397 Miscellaneous 160,500 -------------- Total 116,220,194 Current Maturity of Long Term Debt 300,000 -------------- Total Current Liabilities 116,520,194 -------------- DEFERRED CREDITS: FAS109 Net Deferred Income Tax-Credit 52,032,960 Accumulated Deferred Income Tax-Net 219,161,959 Unamortized Investment Tax Credit 33,690,437 Accrued Postretirement Benefits 9,504,088 Accrued Pension Benefits 125,548,899 Miscellaneous 4,178,041 -------------- Total Deferred Credits 444,116,384 -------------- TOTAL LIABILITIES 1,995,930,435 ==============
9 INDIANAPOLIS POWER & LIGHT COMPANY BALANCE SHEET (UNAUDITED) DECEMBER 31, 2001 ASSETS: PROPERTY, PLANT AND EQUIPMENT Utility Plant, at Original Cost 3,109,452,649 Less: Accum. Prov. for Deprec. & Amort 1,443,735,909 -------------- Total Utility Plant - Net 1,665,716,740 -------------- OTHER PROPERTY, INVESTMENTS AND OTHER ASSETS: Nonutility Property 2,474,502 Less Accumulated Provision for Depreciation 732,151 -------------- Total Nonutility Property - Net 1,742,351 Other Investments 3,987,479 -------------- Total 5,729,830 -------------- CURRENT ASSETS: Cash 5,029,025 Working Funds 86,970 Temporary Cash Investments 4,097,520 Accounts Receivable - Associated Companies 1,350,656 Accounts Receivable: Customers 39,468,187 Miscellaneous 9,377,276 Less: Reserve for Uncollectible Accounts (1,064,647) Interest Receivable (9,590) Fuel 28,969,569 Materials and Supplies - Net 48,380,923 Other Current Assets 1,282,697 Def. Fed. & St. Tax on Fuel Costs-Due w/i 1 Yr Tax Refund Receivable 39,794 -------------- Total Current Assets 137,008,380 -------------- DEFERRED DEBITS: Unamortized Petersburg Unit 4 Carrying Charges 16,610,276 Unamort. Def. Return-Pete Unit 4 Carrying Chgs 9,400,000 Unamort. Reacquisition Premium on Debt 19,665,907 Other Regulatory Assets 52,133,168 Miscellaneous 7,634,685 Unamortized Debt Expense 5,372,748 -------------- Total Deferred Debits 110,816,784 -------------- TOTAL ASSETS 1,919,271,734 ==============
10 LIABILITIES CAPITALIZATION: Common Shareholder's Equity: Common Stock 324,536,675 Premium and Net Gain on Preferred Stock 2,642,134 Retained Earnings 363,083,365 Accumulated Other Comprehensive Income (11,469,532) -------------- Total 678,792,642 -------------- Non-Redeemable Cumulative Preferred Stock 59,135,300 -------------- Long-Term Debt 622,650,000 Unamort. Premium on LT Debt - Net (719,572) -------------- Total Long-Term Debt 621,930,428 -------------- Total Capitalization 1,359,858,370 -------------- CURRENT LIABILITIES: Accounts Payable 65,151,851 Dividends Payable 804,954 Customer Deposits 8,590,263 Accrued Liabilities: Interest on Long-Term Debt 12,944,377 Interest on Customer Deposits, etc 1,569,732 Taxes: Federal Taxes on Income (7,900,001) State Taxes on Income 2,715,808 Real Estate and Personal Property 19,421,301 Miscellaneous 3,136,098 Def. Fed. & St. Tax on Fuel Costs-Due w/i 1 Yr 299,831 Deferred Fuel Expense 8,566,397 Miscellaneous 160,500 -------------- Total Current Liabilities 115,461,111 -------------- DEFERRED CREDITS: FAS109 Net Deferred Income Tax-Credit 52,032,960 Accumulated Deferred Income Tax-Net 218,997,842 Unamortized Investment Tax Credit 33,690,437 Accrued Postretirement Benefits 9,504,088 Accrued Pension Benefits 125,548,899 Miscellaneous 4,178,027 -------------- Total Deferred Credits 443,952,253 -------------- TOTAL LIABILITIES 1,919,271,734 ==============
11 CILCORP Inc. and Subsidiaries Consolidated Statements of Operations Twelve Months Ended December 31, 2001 (Unaudited)
2001 (In thousands) Revenue: CILCO Electric $ 391,811 CILCO Gas 271,434 CILCO Other 96,820 Other Businesses 54,805 --------- Total 814,870 --------- Operating Expenses: Fuel for Generation and Purchased Power 210,952 Gas Purchased for Resale 232,347 Other Operations and Maintenance 120,222 Depreciation and Amortization 86,013 State and Local Revenue Taxes 28,181 Other Taxes 11,431 --------- Total 689,146 --------- Fixed Charges and Other: Interest Expense 69,784 Preferred Stock Dividends of Subsidiary 2,159 Allowance for Funds Used During Construction (18) Other 1,354 --------- Total 73,279 --------- Income (Loss) from Continuing Operations Before Income Taxes 52,445 Income Taxes 24,100 --------- Net Income (Loss) from Continuing Operations 28,345 Loss from Operations of Discontinued Businesses, Net of Tax of $(2,880) (4,380) --------- Net Income (Loss) $ 23,965 Other Comprehensive Income (13,576) --------- Comprehensive Income (Loss) $ 10,389 =========
12 Central Illinois Light Company Consolidated Statements of Income (Unaudited) Twelve Months Ended December 31, 2001
(In thousands) Operating Revenues: Electric $ 391,811 Gas 271,434 --------- Total Operating Revenues 663,245 --------- Operating Expenses: Cost of Fuel 165,232 Cost of Gas 190,348 Purchased Power 44,441 Other Operations and Maintenance 114,741 Depreciation and Amortization 69,133 Income Taxes 6,987 State and Local Taxes on Revenue 28,181 Other Taxes 11,206 --------- Total Operating Expenses 630,269 --------- Operating Income 32,976 --------- Other Income and Deductions: Company-owned Life Insurance, Net (1,354) Other, Net 6,698 --------- Total Other Income and (Deductions) 5,344 --------- Income Before Interest Expenses 38,320 --------- Interest Expenses: Interest on Long-term Debt 17,678 Cost of Borrowed Funds Capitalized (18) Other 5,820 --------- Total Interest Expenses 23,480 --------- Net Income Before Preferred Dividends 14,840 Dividends on Preferred Stock 2,159 --------- Net Income Available for Common Stock $ 12,681 Other Comprehensive Income (4,830) --------- Comprehensive Income $ 7,851 =========
13 CILCORP Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited)
As of December 31, 2001 (In thousands) Assets Current Assets: Cash and Temporary Cash Investments $ 18,312 Receivables, Less Reserves of $1,800 47,610 Accrued Unbilled Revenue 40,265 Fuel, at Average Cost 18,068 Materials and Supplies, at Average Cost 17,273 Gas in Underground Storage, at Average Cost 27,067 FAC Underrecoveries 1,255 PGA Underrecoveries 3,236 Prepayments and Other 7,627 ---------- Total Current Assets 180,713 ---------- Investments and Other Property: Investment in Leveraged Leases 135,504 Other Investments 19,285 ---------- Total Investments and Other Property 154,789 ---------- Property, Plant and Equipment: Utility Plant, at Original Cost Electric 716,857 Gas 233,278 ---------- 950,135 Less-Accumulated Provision for Depreciation 126,502 ---------- 823,633 Construction Work in Progress 34,340 Other, Net of Depreciation 14 ---------- Total Property, Plant and Equipment 857,987 ---------- Other Assets: Goodwill, Net of Accumulated Amortization of $33,753 579,211 Other 38,998 ---------- Total Other Assets 618,209 ---------- Total Assets $1,811,698 ==========
14 CILCORP Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited)
As of December 31, 2001 (In thousands) Liabilities and Stockholder's Equity Current Liabilities: Current Portion of Long-Term Debt $ 1,400 Notes Payable 63,000 Accounts Payable 75,644 Accrued Taxes 14,879 Accrued Interest 18,392 Other 18,281 ----------- Total Current Liabilities 191,596 ----------- Long-Term Debt 717,730 ----------- Deferred Credits and Other Liabilities: Deferred Income Taxes 202,822 Regulatory Liability of Regulated Subsidiary 45,377 Deferred Investment Tax Credit 14,553 Provision for Out-of-Market Contract -- Other 83,388 ----------- Total Deferred Credits 346,140 ----------- Preferred Stock of Subsidiary without Mandatory Redemption 19,120 Preferred Stock of Subsidiary with Mandatory Redemption 22,000 ----------- Total Preferred Stock of Subsidiary 41,120 ----------- Stockholder's Equity: Common Stock, no par value; Authorized 10,000 Outstanding 1,000 -- Additional Paid-in Capital 518,833 Retained Earnings 10,305 Accumulated Other Comprehensive Income (14,026) ----------- Total Stockholder's Equity 515,112 ----------- Total Liabilities and Stockholder's Equity $ 1,811,698 ===========
15 Central Illinois Light Company Consolidated Balance Sheets (Unaudited)
As of December 31, 2001 (In thousands) Assets Utility Plant, At Original Cost: Electric $1,326,231 Gas 457,165 ---------- 1,783,396 Less-Accumulated Provision for Depreciation 985,045 ---------- 798,351 Construction Work in Progress 34,340 ---------- Total Utility Plant 832,691 ---------- Other Property and Investments: Cash Surrender Value of Company-owned Life Insurance (Net of Related Policy Loans of $65,314 in 2001) 3,920 Other 1,133 ---------- Total Other Property and Investments 5,053 ---------- Current Assets: Cash and Temporary Cash Investments 12,584 Receivables, Less Reserves of $1,800 49,375 Accrued Unbilled Revenue 34,067 Fuel, at Average Cost 18,068 Materials and Supplies, at Average Cost 15,849 Gas in Underground Storage, at Average Cost 27,067 Prepaid Taxes 9,007 FAC Underrecoveries 1,255 PGA Underrecoveries 3,236 Other 7,569 ---------- Total Current Assets 178,077 ---------- Deferred Debits: Unamortized Loss on Reacquired Debt 2,448 Unamortized Debt Expense 1,305 Prepaid Pension Cost 168 Other 21,971 ---------- Total Deferred Debits 25,892 ---------- Total Assets $1,041,713 ==========
16 Central Illinois Light Company Consolidated Balance Sheets (Unaudited)
As of December 31, 2001 (In thousands) Capitalization and Liabilities Capitalization: Common Shareholder's Equity: Common Stock, No Par Value; Authorized 20,000,000 Shares; Outstanding 13,563,871 Shares $ 185,661 Additional Paid in Capital 52,000 Retained Earnings 108,045 Accumulated Other Comprehensive Income (5,805) ----------- Total Common Shareholder's Equity 339,901 Preferred Stock Without Mandatory Redemption 19,120 Preferred Stock With Mandatory Redemption 22,000 Long-term Debt 242,730 ----------- Total Capitalization 623,751 ----------- Current Liabilities: Current Maturities of Long-Term Debt 1,400 Notes Payable 43,000 Accounts Payable 81,140 Accrued Taxes 28,862 Accrued Interest 9,143 Other 18,281 ----------- Total Current Liabilities 181,826 ----------- Deferred Liabilities and Credits: Accumulated Deferred Income Taxes 92,428 Regulatory Liability 45,377 Investment Tax Credits 14,553 Other 83,778 ----------- Total Deferred Liabilities and Credits 236,136 ----------- Total Capitalization and Liabilities $ 1,041,713 ===========
17 ITEM (2) PER EXEMPTION ORDER (INCOME STATEMENT AMOUNTS ARE 12 MONTHS ENDED): CILCO AND IPL CONTRIBUTIONS TO AES/CILCORP/IPALCO(1) CONSOLIDATED HOLDING COMPANY (PRO RATA CONSOLIDATION BASIS)(2) ($MM)
--------------------------------------------------------------------------------- 12 MOS. ENDED 12/31/00 12 MOS. ENDED 12/31/01 --------------------------------------------------------------------------------- GROSS REVENUES(3) 16.94% 15.14% CILCO 636 760 CILCORP (excluding CILCO) 87 55 IPL 831 828 IPALCO (excluding IPL) 28 0 AES (excluding CILCORP and IPALCO) 7,079 8,843 AES/CILCORP/IPALCO 8,661 10,486 --------------------------------------------------------------------------------- OPERATING INCOME 14.20% 12.10% CILCO 97 48 CILCORP (excluding CILCO) 12 78 IPL 205 256 IPALCO (excluding IPL) (36) 5 AES (excluding CILCORP and IPALCO) 1,849 2,125 AES/CILCORP/IPALCO 2,127 2,512 --------------------------------------------------------------------------------- NET INCOME 15.99% 22.97% CILCO 45 13 CILCORP (excluding CILCO) (33) 11 IPL 82 154 IPALCO (excluding IPL) 73 (5) AES (excluding CILCORP and IPALCO) 629 554 AES/CILCORP/IPALCO 797 727 --------------------------------------------------------------------------------- NET ASSETS 8.49% 8.08% CILCO 1,107 1,042 CILCORP (excluding CILCO) 841 770 IPL 1,905 1,919 IPALCO (excluding IPL) -- 76 AES (excluding CILCORP and IPALCO) 31,626 32,852 AES/CILCORP/IPALCO 35,479 36,659 ---------------------------------------------------------------------------------
-------- (1) As a result of AES' acquisition of IPALCO, the results of AES/CILCORP/IPALCO for the twelve-month periods have been restated to include IPALCO. (2) This schedule presents on a proforma basis, the results of operations of AES excluding the aggregate (both subsidiaries and affiliates) Brazilian affiliates foreign currency losses of approximately $139 million after income tax, mark to market losses from FAS No. 133 of approximately $36 million after income tax and nonrecurring items, including transaction and severance costs related to IPALCO acquisition of $85 million after income tax (excluded from IPL and IPALCO as well as AES numbers). This schedule also excludes loss on discontinued operations of $194 million consisting mainly of Termocandelaria, Ib Valley, Power Direct and telecommunication businesses in Brazil and US. If the excluded items are taken into account, CILCO and IPL contributions to AES/CILCORP/IPALCO on a consolidated basis are as follows: 15.14% to Gross Revenues, 9.47% to Operating Income and 37% to Net Income. (3) Gross business revenues (utility and non-utility) of IPALCO and CILCO combined as a percentage of total gross business revenues (including IPALCO/IPL and CILCORP/CILCO, utility and non-utility) of AES. 18 IPL CONTRIBUTIONS TO AES/IPALCO(1) CONSOLIDATED HOLDING COMPANY (PRO RATA CONSOLIDATION BASIS)(2) ($MM)
---------------------------------------------------------------------------------------------- 12 MOS. ENDED 12/31/00 12 MOS. ENDED 12/31/01 ---------------------------------------------------------------------------------------------- GROSS REVENUES(3) 10.06% 8.30% IPL 831 828 IPALCO (excluding IPL) 28 0 AES (excluding CILCO jurisdictional activities) 7,404 9,151 AES/IPALCO 8,263 9,979 ---------------------------------------------------------------------------------------------- OPERATING INCOME 10.73% 10.32% IPL 205 256 IPALCO (excluding IPL) (36) 5 AES (excluding CILCO jurisdictional activities) 1,741 2,220 AES/IPALCO 1,910 2,481 ---------------------------------------------------------------------------------------------- NET INCOME 10.91% 21.48% IPL 82 154 IPALCO (excluding IPL) 73 (5) AES (excluding CILCO jurisdictional activities) 600 568 AES/IPALCO 755 717 ---------------------------------------------------------------------------------------------- NET ASSETS 5.49% 5.34% IPL 1,905 1,919 IPALCO (excluding IPL) -- 76 AES (excluding CILCO jurisdictional activities) 32,781 33,918 AES/IPALCO 34,686 35,913 ----------------------------------------------------------------------------------------------
-------- (1) As a result of AES' acquisition of IPALCO, the results of AES/CILCORP/IPALCO for the twelve-month periods have been restated to include IPALCO. (2) This schedule presents on a proforma basis, the results of operations of AES excluding the aggregate (both subsidiaries and affiliates) Brazilian affiliates foreign currency losses of approximately $139 million after income tax, mark to market losses from FAS No. 133 of approximately $36 million after income tax and nonrecurring items, including transaction and severance costs related to IPALCO acquisition of $85 million after income tax (excluded from IPL and IPALCO as well as AES numbers). This schedule also excludes loss on discontinued operations of $194 million consisting mainly of Termocandelaria, Ib Valley, Power Direct and telecommunication businesses in Brazil and US. If the excluded items are taken into account, IPL contributions to AES/CILCORP/IPALCO on a consolidated basis are as follows: 8.30% to Gross Revenues, 7.66% to Operating Income and 33.46% to Net Income. (3) Gross business revenues (utility and non-utility) of IPL as a percentage of total gross business revenues (including IPALCO/IPL utility and non-utility) of AES. 19 ITEM (3) PER EXEMPTION ORDER - GENERATION INFORMATION: AES Generating Plants in Operation at December 31, 2001 (excluding CILCORP and IPALCO):
AES AES CAPACITY INTEREST EQUITY REGULATORY UNIT COUNTRY (MW) (%) (MW) STATUS ------- -------- -------- ----- ---------- AES Deepwater USA 143 100 143 QF AES Beaver Valley USA 125 100 125 QF AES Placerita USA 120 100 120 QF AES Thames USA 181 100 181 QF AES Shady Point USA 320 100 320 QF AES Hawaii USA 180 100 180 QF AES Warrior Run USA 180 100 180 QF AES Somerset USA 675 100 675 EWG AES Cayuga USA 306 100 306 EWG AES Greenidge USA 161 100 161 EWG AES Westover USA 126 100 126 EWG AES Alamitos USA 2,083 100 2,083 EWG AES Redondo Beach USA 1,310 100 1,310 EWG AES Huntington Beach USA 563 100 563 EWG AES Thermo Ecotek - Hemphill USA 14 67 10 QF AES Thermo Ecotek - Whitefield USA 14 100 14 QF AES Thermo Ecotek - Mendota USA 25 100 25 QF AES Delano USA 50 100 50 QF AES Riverside USA 154 100 154 EWG AES Mountainview USA 126 100 126 EWG AES Ironwood USA 705 100 705 EWG DOMESTIC SUBTOTAL: 7,561 7,556
AES AES CAPACITY INTEREST EQUITY REGULATORY UNIT COUNTRY (MW) (%) (MW) STATUS ------- -------- -------- ------ ---------- AES Kingston Canada 110 50 55 EWG AES San Nicholas Argentina 650 69 449 EWG AES Cabra Corral Argentina 102 98 100 FUCO AES El Tunal Argentina 10 98 10 FUCO AES Sarmiento Argentina 33 98 32 FUCO AES Ullum Argentina 45 98 44 FUCO AES Quebrada de Ullum Argentina 45 100 45 FUCO AES Alicura Argentina 1,000 100 1,000 FUCO Fontes Nova - Light Brazil 144 21 30 FUCO
20 Ilha dos Pombos - Light Brazil 164 21 34 FUCO Nilo Pecanha - Light Brazil 380 21 80 FUCO Pereira Passos - Light Brazil 100 21 21 FUCO CEMIG - Miranda Brazil 390 9 35 FUCO CEMIG - Igarapava Brazil 210 1 2 FUCO CEMIG (35 plants) Brazil 5,068 9 456 FUCO AES Bayano Panama 150 49 74 FUCO AES Panama Panama 42 49 21 FUCO AES Chiriqui - La Estrella Panama 42 49 21 FUCO AES Chiriqui - Los Valles Panama 48 49 24 FUCO AES Los Mina Dom. Rep. 210 100 210 EWG AES Yarra Australia 510 100 510 FUCO AES Jeeralang Australia 449 100 449 FUCO AES Mt. Stuart Australia 288 100 288 FUCO AES Xiangci - Cili China 26 51 13 FUCO Wuhu Grassy Lake China 250 25 63 FUCO Yangchun China 15 25 4 FUCO Chengdu Lotus City China 48 35 17 FUCO AES Jiaozuo China 250 70 175 FUCO AES Hefei China 115 70 81 FUCO AES Hefei II China 39 70 27 FUCO AES Chongqing Nanchuan China 50 70 35 FUCO Yangcheng China 1050 25 263 FUCO AES Ekibastuz Kazakhstan 4,000 100 4,000 FUCO AES Ust-Kamenogorsk GES Kazakhstan 331 100 331 FUCO AES Shulbinsk GES Kazakhstan 702 100 702 FUCO AES Ust-Kamenogorsk TETS Kazakhstan 1,464 100 1,464 FUCO AES Leninogorsk TETS Kazakhstan 418 100 418 FUCO AES Sogrinsk TETS Kazakhstan 349 100 349 FUCO AES Semipalatinsk TETS Kazakhstan 840 100 840 FUCO AES Ust-Kamenogorsk Heat Nets Kazakhstan 310 Managt 0 FUCO OPGC India 420 49 206 FUCO AES Lal Pir Pakistan 351 90 316 FUCO AES PakGen Pakistan 344 90 310 FUCO AES Borsod Hungary 171 100 171 FUCO AES Tisza II Hungary 860 100 860 FUCO AES Tiszapalkonya Hungary 250 100 250 FUCO AES Elsta Netherlands 405 50 203 FUCO Medway U.K. 688 25 172 FUCO AES Indian Queens U.K. 140 100 140 EWG AES Kilroot U.K. 520 97 504 FUCO AES Belfast West U.K. 120 97 116 FUCO AES Barry U.K. 230 100 230 FUCO AES Drax U.K. 4,065 100 4,065 FUCO AES Fifoots Point U.K. 360 100 360 FUCO AES Uruguaiana Brazil 600 100 600 FUCO AES Tiete (10 plants) Brazil 2,650 53 1,405 FUCO EDC (4 plants) Venezuela 2,265 87 1,971 FUCO AES Merida III Mexico 484 55 266 FUCO AES Mtkvari Georgia 600 Managt 600 FUCO
21 AES Khrami I Georgia 113 Managt 113 FUCO AES Khrami II Georgia 110 100 110 FUCO AES Ottana Italy 140 100 140 FUCO AES Mamonal Columbia 90 62 56 FUCO AES Centrogener (Gener - 8 plants) Chile 756 99 748 FUCO AES Chivor (Gener) Columbia 1,000 96 960 FUCO AES Electrica de Santiago (Gener) Chile 478 86 411 FUCO AES Energia Verde (Gener - 2 plants) Chile 37 99 37 FUCO AES Guacolda (Gener) Chile 304 49 149 FUCO AES Norgener (Gener - 2 plants) Chile 277 99 274 FUCO Itabo (Gener - 7 plants) Dom. Rep. 587 24 141 FUCO AES Bohemia Czech Rep. 50 83 42 FUCO AES Premnitz Germany 58 65 38 FUCO AES SONEL Cameroon 800 51 408 FUCO Central Dique Argentina 68 31 21 FUCO AES Termoandes Argentina 632 99 626 FUCO AES Parana Argentina 845 67 566 FUCO AES Kelvin Rep. South Africa 600 90 540 FUCO Egbin Barge Nigeria 290 95 276 FUCO FOREIGN SUBTOTAL: 43,205 31,168 TOTAL - December 31, 2001 50,766 38,724 Foreign Generation as a Percentage of 85% 80% Total:
CILCORP Generating Plants at December 31, 2001:
AES AES Capacity Interest Equity Regulatory Unit Country (MW) (%) (MW) Status ------- ------- ---- --- ------ Edwards (3 units) USA 740 100 740 IL PUC Duck Creek USA 366 100 366 IL PUC Indian Trails USA 10 100 10 IL PUC Sterling Avenue USA 30 100 30 IL PUC Hallock Power Modules USA 13 100 13 IL PUC Kickapoo Power Modules USA 13 100 13 IL PUC TOTAL - December 31, 2001 1,172 1,172
22 IPALCO Generating Plants at December 31, 2001:
AES AES Capacity Interest Equity Regulatory Unit Country (MW) (%) (MW) Status ------- ------- ---- --- ------ Petersburg USA 1,873 100 1,873 IN PUC H.T. Pritchard USA 393 100 393 IN PUC E.W. Stout USA 1,017 100 1,017 IN PUC Georgetown USA 80 100 80 IN PUC TOTAL - December 31, 2001 3,363 3,363
Revenues from electric generation capacity - 12 months ended December 31, 2001 (millions of dollars): IPALCO 179 4% CILCORP 157 3% AES (excluding CILCORP and IPALCO) 4,271 93% ----- ----- Total 4,607 100%
IPALCO's electric revenues are allocated between electric generation and electric transmission and distribution activities according to utility rate base. CILCORP's electric revenues are allocated between electric generation and electric transmission and distribution activities according to utility rate base. AES generation revenues are derived from the total generation revenues earned by AES subsidiaries times the percentage ownership interest of AES in those subsidiaries. There has been no change in the amount of generation capacity owned by CILCORP or IPALCO and a 2,788 MW increase in the amount of generation capacity owned by AES (excluding CILCORP and IPALCO) from 35,936 to 38,724 MW since September 30, 2001. There has been a 10.8% increase in the total revenues earned from the capacity owned by AES, IPALCO and CILCORP in the twelve-month period ended December 31, 2001 compared with the twelve-month period ended September 30, 2001. The percentage of total revenues derived from the generation capacity owned by CILCORP has decreased from 4% to 3%. The percentage of total revenues derived from the generation capacity owned by IPALCO has stayed the same at 4%. The physical location of the MW capacity added by AES since September 30, 2001 is in the United States, Argentina, Republic of South Africa, Nigeria, Chile and China. 23 ITEM (4) PER EXEMPTION ORDER - ELECTRIC TRANSMISSION AND DISTRIBUTION AND GAS DISTRIBUTION: Electric transmission and distribution and gas distribution assets owned as of December 31, 2001 (millions of dollars): IPALCO 1,015 CILCORP 746 Total AES (excluding CILCORP and IPALCO) 5,989 ----- Total 7,750
Electric transmission and distribution and gas distribution revenues for 12 months ending December 31, 2001 (millions of dollars): IPALCO 648 CILCORP 507 Total AES (excluding CILCORP and IPALCO) 4,724 ----- Total 5,879
IPALCO's electric revenues are allocated between electric generation and electric transmission and distribution activities according to utility rate base. CILCORP's electric revenues are allocated between electric generation and electric transmission and distribution activities according to utility rate base. AES transmission and distribution revenues are derived from the total revenues earned by AES transmission and distribution subsidiaries by multiplying these revenues by the percentage ownership interest of AES in those subsidiaries. The total transmission and distribution assets owned by AES, CILCORP and IPALCO have increased since September 30, 2001. CILCORP's transmission and distribution assets have decreased while the revenues derived from such assets have decreased since September 30, 2001. IPALCO's transmission and distribution assets have increased slightly while the revenues derived from such assets have decreased since September 30, 2001. AES' transmission and distribution assets have increased and the revenues derived from such assets have decreased since September 30, 2001. CILCORP's percentage of the total transmission and distribution assets has decreased from 11% to 10%, and CILCORP's percentage of the total revenues from such assets has remained the same at 9% to for the twelve-month period ending December 31, 2001 compared to the twelve-month period ending September 30, 2001. IPALCO's percentage of the total transmission and distribution assets has decreased from 15% to 13%, and IPALCO's percentage of the total revenues from such assets has decreased from 13% to 11% for the 24 twelve-month period ending December 31, 2001 compared to the twelve-month period ending September 30, 2001. ITEM (5) PER EXEMPTION ORDER: Neither CILCO nor IPL has sold or transferred any electric and/or gas utility assets to any affiliate company of the AES consolidated holding company system during the fourth quarter of 2001. ITEM (6) PER EXEMPTION ORDER: During the fourth quarter 2001, no application has been made to nor has any order been received from the Illinois Commerce Commission that involves AES' ownership position or AES' oversight over the operations of CILCO or CILCORP. During the fourth quarter 2001, no application has been made to nor has any order been received from the Indiana Utility Regulatory Commission that involves AES' ownership position or AES' oversight over the operations of IPL or IPALCO. ITEM (7) PER EXEMPTION ORDER: During the fourth quarter 2001, AES announced a formal sale process regarding the divestiture of CILCORP. Non-binding offers were submitted in January 2002, and a buyer is expected to be selected in April 2002. SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, as amended, AES has duly caused this certificate to be signed on its behalf on this 1st day of March, 2002 by the undersigned thereunto duly authorized. The AES Corporation By: /s/ Erik Luckau ---------------------- Erik Luckau Associate General Counsel 25