8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                      PURSUANT TO SECTION 13 OR 15 (d) OF

                      THE SECURITIES EXCHANGE ACT OF 1934

       Date of Report (date of earliest event reported): August 22, 2000

                              THE AES CORPORATION
             (exact name of registrant as specified in its charter)


        DELAWARE                    333-15487                   54-1163725
(State of Incorporation)      (Commission File No.)           (IRS Employer
                                                            Identification No.)


                       1001 North 19th Street, Suite 2000
                           Arlington, Virginia 22209

          (Address of principal executive offices, including zip code)

              Registrant's telephone number, including area code:
                                 (703) 522-1315

                                 NOT APPLICABLE
         (Former Name or Former Address, if changed since last report)




Item 5. Other Events

     On August 29, 2000 a subsidiary of the Company completed the acquisition
of a 59% stake in the 1,000 MW hydroelectric facility of Hidroelectrica Alicura
S.A. ("Alicura") in Argentina from Southern Energy, Inc. ("SEI") for $205
million in cash and assumed debt. Alicura owns the concession to operate a
1,000 MW peaking hydro-facility located in the province of Neuquen, Argentina.
As part of this transaction, AES also acquired from SEI a 100% stake in
Operadora de Argentina S.A. , the company that provides the operations and
maintenance services to Alicura under a long term contract.

     The New York State Department of Environmental Conservation ("DEC") issued
a Notice of Violation ("NOV") to New York State Electric & Gas ("NYSEG") for
violations of the Clean Air Act and the Environmental Conservation Law at the
Greenidge and Westover plants (the "Plants") related to activity at those
Plants prior to their acquisition from NYSEG by certain subsidiaries of the
Company. This NOV was issued as part of an industry-wide investigation of
coal-fired electric power generators to determine compliance with environmental
requirements under the Clean Air Act associated with repairs, maintenance,
modifications and operational changes made to the Plants over the years.
Pursuant to the agreement relating to the acquisition of the Plants from NYSEG,
certain of the Company's subsidiaries agreed to assume responsibility for
environmental liabilities that arose while NYSEG owned the Plants. The Company
believes that its subsidiaries have meritorious defenses to any actions
asserted against them and expects that they will defend themselves vigorously
against the allegations. The NOV issued by the DEC, and any additional
enforcement action that might be brought by the New York State Attorney
General, the DEC or the U.S. Environmental Protection Agency, against the
Somerset, Cayuga, Greenidge or Westover Plants, might result in the imposition
of penalties and might require further emission reductions at these Plants.

     As a result of the current shortage of electricity in California, the
generating facilities of one of our subsidiaries ("AES Southland") have
operated at substantially higher than expected capacity factors for most of
2000. If AES Southland maintains this level of generation for the remainder of
the year, it would expect to deplete its current annual inventory of nitrogen
oxide ("NOx") air emission allocations sometime during the late third or early
fourth quarter of 2000. This would impact AES Southland's ability to run until
its new allowances are received in January 2001. AES Southland could choose not
to run these facilities once its current supply of NOx allocations is depleted.
However, southern California has experienced shortages of electricity. If AES
Southland decides to continue to operate these facilities to help meet this
shortage and it is unable to purchase additional NOx emission trading credits,
it could receive a notice of violation from the South Coast Air Quality
Management District ("SCAQMD") for violation of its rules. AES Southland could
contest this notice of violation through the California state court system.
However, if unsuccessful, the notice of violation could result in the
imposition of fines, penalties and the requirement to install pollution control
equipment. AES Southland is currently in discussions with SCAQMD about this
situation to determine a mutually agreeable resolution; however, no assurance
can be given that an acceptable resolution will be negotiated or that AES
Southland will not incur substantially increased operating or capital costs.

     On August 22, 2000, as part of wide ranging investigation into wholesale
electricity prices in California, all electric generating facilities in the
state, including the Company and its subsidiaries, were served with requests
for production of documents from the California Public Utilities Commission
("CPUC") requesting information about their facilities generating and bidding
behavior. The Company is responding to the CPUC's document request.

     In addition, on August 31, 2000, the AES Corporation (the "Registrant")
issued the press release attached as Exhibit 1 to this report and incorporated
herein by reference.


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                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                           THE AES CORPORATION


Date: September 1, 2000                    By /s/ William Luraschi
                                             ------------------------
                                                  William Luraschi
                                                  (signing officer)


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EX-1

                                                                      EXHIBIT 1


FOR IMMEDIATE RELEASE

                  AES REACHES AGREEMENT TO ACQUIRE CONTROL OF
                     DISTRIBUTION COMPANIES IN EL SALVADOR

ARLINGTON, VA, August 31, 2000-- The AES Corporation (NYSE: AES) and Reliant
Energy (NYSE: REI) announced today that they have entered into an agreement
whereby a subsidiary of AES will acquire Reliant Energy International's
interest in El Salvador Energy Holdings, S.A. ("ESEH"), which owns three
distribution companies in El Salvador. The sale is expected to close by the end
of the third quarter.

The three distribution companies, Compania de Alumbrado Electrico de San
Salvador, S.A. de C.V. ("CAESS"), Empresa Electrica de Oriente, S.A. de C.V.
("EEO") and Distribuidora Electrica de Usulutan, S.A. De C.V. ("DEUSEM") serve
3.5 million people, approximately 60 percent of the population of El Salvador,
including the capital city of San Salvador. The companies were awarded to ESEH
in a 1998 privatization. ESEH is owned by Grupo EDC of Venezuela and REI in a
50%/50% partnership. Based on AES' successful tender for shares of Grupo EDC in
June 2000, AES owns approximately 87% of Grupo EDC. Through the purchase of
Reliant Energy International's interest, AES will own the controlling interest
in the three distribution companies.

The sale represents Reliant Energy International's entire interest in El
Salvador. It is part of the company's plan, announced in December 1999, to
divest its Latin American investments.

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated "We
are very excited to increase our presence in the Salvadoran market. A hidden
jewel of Latin America, El Salvador has an investment grade rating and a strong
commitment to private enterprise. This investment furthers our commitment to
providing excellent customer service to the people of El Salvador."

Ms. Sarah Slusser, Vice President of AES, said "AES started its commitment to
the Central American region with our investment in AES CLESA, distributing
power to the Western region of El Salvador. We're proud to have the opportunity
to further participate in the Salvadoran market and continue the great
tradition





that these distribution companies have developed over the last 100 years."

Business development milestones in 2000 include the following:

o    In August, subsidiaries of AES issued approximately $1 billion of
     non-recourse project bonds to refinance outstanding debt at Drax.

o    In August, a subsidiary of AES entered into an agreement whereby AES will
     acquire the 49% interest held by TransCanada PipeLines Limited in the
     Songo Songo Gas-to-Electricity Project in Tanzania.

o    In July, AES and IPALCO Enterprises Inc. announced that they entered an
     agreement whereby AES will acquire IPALCO Enterprises, Inc.

o    In June, AES acquired approximately 87% of the stock of C.A. La
     Electricidad de Caracas, an integrated electricity company serving
     Caracas, Venezuela.

o    In June, a subsidiary of AES completed an $815 million non-recourse
     financing for a circulating fluidized bed coal-fired facility currently
     being built on the south coast of Puerto Rico.

o    In May, a subsidiary of AES acquired 100% of Tractebel Power Ltd., ("TPL")
     from Tractebel S.A. With this transaction, AES owns approximately 92% of
     NIGEN's common stock.

o    In May, AES announced that it won a bid to purchase a 70% interest in the
     1,580 MW Mohave Generating Station in Laughlin, Nevada for approximately
     $667 million.

o    In April, AES announced it intends to launch a tender offer to acquire all
     outstanding common and preference shares of Brazilian generation company
     Compania de Geracao de Energia Eletrica Tiete ("Tiete").

o    In March, a subsidiary of AES acquired for $8 million, GeoUtilities Inc.,
     an internet-based superstore for energy, telecom and other vital services.

o    In March, a subsidiary of AES completed a financing associated with 823 MW
     of generating facilities in the Republic of Georgia. The financing
     included the acquisition of the 600 MW Gardabani thermal plant and the
     establishment of 25-year concessions for the Khrami I and II hydro
     stations, which have a combined capacity of 223 MW.

o    In March, a subsidiary of AES completed a $440 million non-recourse
     project financing for AES Red Oak, an 832 MW natural gas-fired combined
     cycle plant in Sayerville, New Jersey.

o    In February, AES announced that it had entered into an agreement to
     acquire a 59% stake in the 1,000 MW hydroelectric facility of
     Hidroelectrica Alicura S.A. ("Alicura") in Argentina from Southern Energy,
     Inc. ("SEI").

o    In February, AES announced that a subsidiary had reached an agreement with
     the Bulgarian state- owned electric utility NEK, that will allow AES to
     build, own, operate and transfer a $750 million lignite-fired power plant.

o    In January, a subsidiary of AES agreed to acquire 59% of the outstanding
     preferred (non-voting) shares of Eletropaulo S.A. ("Eletropaulo").


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o    In January, a subsidiary of AES and Caterpillar Inc. reached a service
     agreement for multiple energy products that will result in the
     construction of a 45 MW cogeneration plant in Mossville, Illinois.

AES is a leading global power company comprised of competitive generation,
distribution and retail supply businesses in Argentina, Australia, Bangladesh,
Brazil, Canada, China, Dominican Republic, El Salvador, Georgia, Hungary,
India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, the United
Kingdom, the United States and Venezuela.


The company's generating assets include interests in one hundred and thirty two
facilities totaling over 47 gigawatts of capacity. AES' electricity
distribution network has over 920,000 km of conductor and associated rights of
way and sells over 126,000 gigawatt hours per year to over 17 million end-use
customers. In addition, through its various retail electricity supply
businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible
way.

                                   * * * * *

For more general information visit our web site at www.aesc.com or contact
investor relations at investing@aesc.com. The list aes-pr-announce is an
automated mailing list and can be found on the investing page of our web site.
Those who subscribe to this list will receive updates when AES issues a press
release.


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