8-K

UNITED STATES
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):  April 4, 2006

THE AES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-12291	54-1163725
(State or other jurisdiction  of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)
4300 Wilson Boulevard, Suite 1100, Arlington, Virginia		22203
(Address of principal executive offices)		(zip code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01         Regulation FD Disclosure.

On April 4, 2006 The AES Corporation issued a Media Advisory announcing a financial review teleconference on Thursday, April 6, 2006. On April 4, 2006 the Company posted on its website the 2005 Financial Review and 2006 Outlook and the AES Investor Presentation that will be referenced in investor discussions prior to and during the financial review. A copy of the Media Advisory, the 2005 Financial Review and 2006 Outlook and the AES Investor Presentation is attached hereto as exhibits 99.1, 99.2 and 99.3.

Item 9.01         Financial Statements and Exhibits.

(d)           Exhibits

Exhibit No.	Description
99.1	Media Advisory issued by The AES Corporation, dated April 4, 2006, regarding a financial review teleconference scheduled for Thursday, April 6, 2006.
99.2	2005 Financial Review and 2006 Outlook
99.3	AES Investor Presentation, April 2006

2

SIGNATURE

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
	(Registrant)
	By:	/s/ Vincent W. Mathis
		Name: Vincent W. Mathis
		Title: Deputy General Counsel
Date: April 4, 2006

3

EX-99.1

Exhibit 99.1

The Global Power Company	MEDIA ADVISORY
	Media Contact: Robin Pence 703-682-6552
	Investor Contact: Scott Cunningham 703-682-6336

AES SCHEDULES FOURTH QUARTER AND FULL YEAR 2005

 FINANCIAL REVIEW CONFERENCE CALL ON APRIL 6, 2006

ARLINGTON, VA., April 4, 2006 – The AES Corporation (NYSE: AES) will hold a conference call on Thursday, April 6, 2006 at 09:00 am Eastern Daylight Time (EDT) to review its fourth quarter and full year 2005 financial results as well as its 2006 financial outlook. The call will include prepared remarks and a question and answer session. It will be open to the media and the public in listen-only mode by telephone and webcast.

Interested parties may listen to the teleconference by dialing 1-877-691-0877 at least ten minutes before the start of the call. International callers should dial +1-973-582-2852. Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com on the Home Page and also by selecting “Investor Information,” then “Quarterly Financial Results.”

A replay will be accessible by telephone or by webcast. A telephonic replay of the call will be available from approximately 12:00 noon EDT on Thursday, April 6, 2006. Please dial 1-877-519-4471. International callers should dial +1-973-341-3080. The system will ask for a reservation number; please enter 7210619 followed by the pound key (#). The telephonic replay will be available until Thursday, April 27, 2006. A webcast replay will be available at www.aes.com beginning shortly after the completion of the call.

- more -

1

About AES: AES is one of the world’s largest global power companies, with 2005 revenues of $11.1 billion. With operations in 25 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amass annual sales of over 82,000 MWh and our 128 generation facilities have the capacity to generate over 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.

###

EX-99.2

Exhibit 99.2

Searchable text section of graphics shown above

AES Corporation

2005 Financial Review and 2006 Outlook

April 6, 2006

9:00am EDT

[LOGO]

The Global Power Company

1

Safe Harbor Disclosure

Certain statements in the following presentation regarding AES’s business operations may constitute “forward looking statements.”  Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to continued normal or better levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth from investments at investment levels and rates of return consistent with prior experience. For additional assumptions see the Appendix to this presentation. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’s filings with the Securities and Exchange Commission including but not limited to the risks discussed under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 as well as our other SEC filings. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

www.aes.com

2

Fourth Quarter and

Full Year 2005 Highlights

Contains Forward Looking Statements

2005 was a record year for:

•Revenues

•Net cash from operating activities

•Free cash flow(1)

Revenues exceed $11 billion for the first time

Fourth quarter and full-year earnings benefit from good operating results, favorable currencies and lower tax rate

2008 financial targets reaffirmed with cash flow target reintroduced(2):

•$1.03 to $1.34 diluted EPS from continuing operations(3)

•$3.5 billion gross margin

•11% ROIC(1)

•Net cash from operating activities $2.6 to $2.9 billion

2006 guidance consistent with 2008 targets

(1)Non-GAAP financial measure. See Appendix.

(2)Guidance includes growth projects committed to in 2004 and prior years.

(3)Based on 13-19% per year growth in diluted EPS from continuing operations from $0.56 per share 2003 base (pre-restatement). Implied range of 2008 EPS forecasts of $1.03 to $1.34 in 2008 is unchanged based on restated 2003 diluted EPS from continuing operations. See Appendix.

3

2006 Guidance Elements:

2005-2006 EPS Bridge

Contains Forward Looking Statements

[CHART]

(1)Non-GAAP measure. See Appendix.

4

2006 Guidance Elements:

Income Statement

Contains Forward Looking Statements

Guidance Element	2006 Guidance
Revenue Growth (% change)	4 to 5%
Gross Margin	$3.2 to $3.3 billion
Business Segment Income Before Tax & Minority Interest (Excludes Corporate Costs of $625 Million)	$2.3 billion
Allocated by Segment as % of Total
•Regulated Utilities	44%
•Contract Generation	38%
•Competitive Supply	18%
Diluted Earnings Per Share From Continuing Operations	$0.90
Adjusted Earnings Per Share Factors	$0.05
Adjusted Earnings Per Share(1)	$0.95

(1)Non-GAAP measure. See Appendix.

5

2006 Guidance Elements:

Cash Flow and Sensitivities

Contains Forward Looking Statements

Guidance Element	2006 Guidance
Net Cash From Operating Activities	$2.2 to $2.3 billion
Maintenance Capital Expenditures	$800 to $900 million
Free Cash Flow(1)	$1.3 to $1.5 billion
Subsidiary Distributions(1)	$1.0 billion
Parent Investments and Capital Expenditures	$250 to $350 million
Foreign Currency Sensitivity (annual)	10% currency move = app. $0.07 /share
Interest Rate Sensitivity (annual)	1% rate move = app. $0.02 /share
Exchange Rate Assumptions (annual average)
•Brazil Real	2.23/$
•Venezuela Bolivar	2,388/$
•Argentina Peso	3.10/$

(1)Non-GAAP measures. See Appendix.

(2)Excludes other sources of funds. Total 2006 capital expenditures are estimated to be $1.7 – $1.8 billion, including certain growth projects not yet awarded.

6

2006 Guidance Elements:
Subsidiary Distributions

($ Millions) Contains Forward Looking Statements

Expected 2006 Subsidiary Distributions(1)

	North America		Latin America		Europe, Middle East & Africa		Asia		Total
Regulated Utilities	$	143	$	134	$	23	$	—	$	300
Contract Generation	$	160	$	60	$	148	$	32	$	400
Competitive Supply	$	224	$	49	—		$	27	$	300
Total	$	527	$	243	$	171	$	59	$	1,000

54% of distributions are expected to come from North American Regulated Utilities and Worldwide Contract Generation.

(1)Non-GAAP measure. See Appendix.

7

Fourth Quarter and

Full Year 2005 Highlights

($ Millions Except Earnings Per Share and Percent)

	Fourth Quarter 2005			Fourth Quarter 2004(1)			% Change		2005			2004(1)			% Change
Revenues	$	2,973		$	2,523		18	%	$	11,086		$	9,463		17	%
Gross Margin	$	929		$	706		32	%	$	3,178		$	2,782		14	%
as % of Revenues	31.2		%	28.0		%	320b.p.		28.7		%	29.4		%	(70b.p.	)
Income Before Income Taxes and Minority Interest (IBT&MI)	$	411		$	203		102	%	$	1,458		$	822		77	%
Diluted EPS from Continuing Operations	$	0.27		$	0.03		800	%	$	0.95		$	0.41		132	%
Adjusted EPS(2)	$	0.28		$	0.10		180	%	$	0.91		$	0.59		54	%
Return on Invested Capital (ROIC)(2)	11.3		%	7.7		%	360b.p

Revenue Comparison

Quarter-Over-Quarter (QOQ)

Volume/Price/Mix	11	%
Currency	7	%
Total	18	%

Revenue Comparison

Year-Over-Year (YOY)

Volume/Price/Mix	10	%
Currency	7	%
Total	17	%

(1)Restated.

(2)Non-GAAP measure. See page 9 and Appendix.

8

Reconciliation of Adjusted

Earnings Per Share

($ Per Share)

	Fourth Quarter 2005		Fourth Quarter 2004(1)		2005			2004(1)(2)
Diluted Earnings Per Share From Continuing Operations	$	0.27	$	0.03	$	0.95		$	0.41
FAS 133 Mark-to-Market (Gains)/Losses(2)	—		—		—			0.06
Currency Transaction (Gains)/Losses	0.01		0.01		(0.04		)	0.06
Net Asset (Gains)/Losses and Impairments	—		0.05		—			0.05
Debt Retirement (Gains)/Losses	—		0.01		—			0.01
Adjusted Earnings Per Share(3)	$	0.28	$	0.10	$	0.91		$	0.59

(1)Restated.

(2)Includes Gener debt restructuring cost of $0.03 per share in the full year 2004 period.

(3)Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associate with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction gains and losses on the net monetary position related to Brazil, Venezuela, and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency transaction gains or losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

9

Fourth Quarter 2005

Cash Flow Highlights

($ Millions)

	Fourth Quarter 2005		Fourth Quarter 2004(2)		2005		2004(2)
Subsidiary-Only
Subsidiary Net Cash from Operating Activities(1)	$	840	$	616	$	2,737	$	2,159
Consolidated
Net Cash from Operating Activities	$	699	$	454	$	2,165	$	1,571
Free Cash Flow(1)	$	577	$	310	$	1,534	$	1,064
Parent-Only
Subsidiary Distributions(1)	$	354	$	277	$	993	$	1,004
Return of Capital from Subsidiaries(1)	$	5	$	3	$	57	$	127
Recourse Debt Repayment (Net)(3)	$	2	$	331	$	259	$	800

(1)Non-GAAP measure. See Appendix.

(2)Restated.

(3)Includes payments for notes related to Directors’ and Officers’ Insurance.

10

Fourth Quarter and 2005

Subsidiary Distributions

($ Millions)

Fourth Quarter/ 2005 Subsidiary Distributions(1)

	North America	Latin America	Europe, Middle East & Africa	Asia	Total
Regulated Utilities	$54/208	$71/123	$27/28	$—/—	$152/359
Contract Generation	$54/234	$25/36	$38/158	$24/37	$141/465
Competitive Supply	$17/104	$28/47	$—/—	$16/18	$61/169
Total (1)	$125/546	$124/206	$65/186	$40/55	$354/993

55% of Fourth Quarter distributions and 68% of Full Year 2005 distributions were from North American Regulated Utilities and Worldwide Contract Generation.

(1)Non-GAAP measure. See Appendix.

11

Fourth Quarter Segment Highlights

Regulated Utilities

($ Millions Except As Noted)

	Fourth Quarter 2005			Fourth Quarter 2004			% Change
Revenues	$	1,537		$	1,355		13	%
Gross Margin	$	416		$	275		51	%
as % of Sales	27.1		%	20.3		%	680 b.p.
IBT&MI	$	275		$	222		24	%

Revenue Comparison (QOQ)	% Change
Volume/Price/Mix	1	%
Currency (Net)	12	%
Total	13	%

Segment Highlights

•Revenues grew as a result of favorable currency effects in Brazil and higher tariffs in Brazil and Argentina.

•Gross margin and gross margin as a percent of sales increased due to revenue gains, favorable currency translation impacts and lower purchased electricity costs, offset by unfavorable fixed cost comparisons.

12

Fourth Quarter Segment Highlights

Contract Generation

($ Millions Except As Noted)

	Fourth Quarter 2005			Fourth Quarter 2004			% Change
Revenues	$	1,118		$	904		24	%
Gross Margin	$	405		$	374		8	%
as % of Sales	36.2		%	41.4		%	(520 b.p.	)
IBT&MI	$	236		$	140		69	%

Revenue Comparison (QOQ)	% Change
Volume/Price/Mix	23	%
Currency (Net)	1	%
Total	24	%

Segment Highlights

•Revenues grew as a result of increased contract pricing and dispatch in Chile, higher contract pricing in the Dominican Republic and higher dispatch in China and Pakistan. These positive effects were partially offset by a scheduled contract price reduction at Shady Point and an outage at Thames in the U.S.

•Gross margin increased primarily as a result of higher revenues. The decline in gross margin percentage is driven by higher fuel costs throughout the businesses along with the contract reduction and outage in the U.S.

13

($ Millions Except As Noted)

Fourth Quarter Segment Highlights

Competitive Supply

	Fourth Quarter 2005			Fourth Quarter 2004			% Change
Revenues	$	318		$	264		20	%
Gross Margin	$	108		$	57		89	%
as % of Sales	34.0		%	21.6		%	1,240 b.p.
IBT&MI	$	80		$	13		515	%

Revenue Comparison (QOQ)	% Change
Volume/Price/Mix	23	%
Currency (Net)	(3	)%
Total	20	%

Segment Highlights

•Revenues grew as a result of higher prices in New York, Argentina and Panama, higher volume, and sales of excess allowances in New York.

•Gross margin increased primarily as a result of higher allowance sales and higher prices partially offset by higher fuel costs in New York.

14

Appendix

15

Parent Sources and Uses

of Cash

($ Millions)

	Fourth Quarter 2005			2005
Sources
Total Subsidiary Distributions(1)	$	354		$	993
Proceeds from Asset Sales, Net	—			2
Refinancing Proceeds, Net	—			—
Increased Revolver Commitments	—			200
Issuance of Common Stock, Net	6			26
Total Returns of Capital Distributions and Project Financing Proceeds	5			57
Beginning Liquidity(1)	436			643
Total Sources	$	801		$	1,921
Uses
Repayments of Debt(2)	$	(2	)	$	(259	)
Investments in Subsidiaries, Net	(80		)	(233		)
Cash for Development, Selling, General and Administrative and Taxes	(42		)	(165		)
Cash Payments for Interest	(135		)	(426		)
Other, Net	82			(214		)
Ending Liquidity(1)	(624		)	(624		)
Total Uses	$	(801	)	$	(1,921	)

(1)Non-GAAP financial measure. See Appendix.

(2)Includes payments for notes related to Directors’ & Officers’ Insurance.

16

Fourth Quarter Reconciliation of

Changes to Debt Balances

($ Millions)

	Debt Reconciliation
Parent Debt (Including Letters of Credit) at 12/31/04	$	5,250	(1)
Scheduled Debt Maturities:	(142		)
Discretionary Debt Repayments:
Prepayment of Debt	(112		)
Other	180		(2)
Parent Debt (Including Letters of Credit) at 12/31/05	$	5,176
Less: Letters of Credit Outstanding at 12/31/05	(294		)
Parent Debt (Excluding Letters of Credit) at 12/31/05	$	4,882

(1)Amount reflects recourse debt of $5,152 million and $98 million of letters of credit under the parent revolver. Revolver availability at 12/31/05 was $356 million.

(2)Other includes $196 million increase in letters of credit and $18 million decrease due to foreign currency changes.

17

Fourth Quarter 2005

Consolidated Cash Flow

($ Millions)

	Subsidiaries			AES Corp (1)			Eliminations			Consolidated
Net Cash from Operating Activities	$	840		$	213		$	(354	)	$	699
Maintenance Capital Expenditures	(98		)	(24		)	—			(122		)
Growth Capital Expenditures	(220		)	—			—			(220		)
Investment in Subsidiaries	—			(80		)	80			—
Returns of Capital from Subsidiaries	—			5			(5		)	—
Net Proceeds from Asset Sales	5			—			—			5
Proceeds from the Sale of Emission Allowances	11			—			—			11
Sale of Short Term Investments, Net of Purchases	104			—			—			104
Cash Paid for Acquisitions	—			—			—			—
Increase in Restricted Cash	44			(3		)	—			41
Decrease in Debt Service Reserves and Other Assets	(20		)	—			—			(20		)
Other	25			—			—			25
Net Cash (for) from Investments	(149		)	(102		)	75			(176		)
Financing Proceeds for Growth Capital Expenditures	50			—			—			50
Financing Proceeds from Other Financings Including Refinancings	328			—			—			328
Equity Proceeds	—			6			—			6
Repayments, Net (Including Refinancings)	(568		)	(2		)	—			(570		)
Payments for Financing Costs	(11		)	—			—			(11		)
Equity Contributions by Parent	80			—			(80		)	—
Distributions to Parent	(354		)	—			354			—
Returns of Capital to Parent	(5		)	—			5			—
Other	(80		)	—			—			(80		)
Net Cash (for) from Financing	(560		)	4			279			(277		)
Increase (Decrease) in Cash & Cash Equivalents	131			115			—			246
Effect of FX	(18		)	(2		)	—			(20		)
Beginning Cash & Cash Equivalents Balance	1,009			155			—			1,164
Ending Cash & Cash Equivalents Balance	$	1,122		$	268		$	—		$	1,390

(1)Includes activity at qualified holding companies.

Note: Certain amounts have been netted, condensed and rounded for presentation purposes.

18

2005

Consolidated Cash Flow

($ Millions)

	Subsidiaries			AES Corp (1)			Eliminations			Consolidated
Net Cash from Operating Activities	$	2,737		$	421		$	(993	)	$	2,165
Maintenance Capital Expenditures	(595		)	(36		)	—			(631		)
Growth Capital Expenditures	(512		)	—			—			(512		)
Investment in Subsidiaries	—			(148		)	148			—
Returns of Capital from Subsidiaries	—			57			(57		)	—
Net Proceeds from Asset Sales	24			2			—			26
Proceeds from the Sale of Emission Allowances	41			—			—			41
Sale of Short Term Investments, Net of Purchases	152			—			—			152
Cash Paid for Acquisitions	—			(85		)	—			(85		)
Increase in Restricted Cash	61			(3		)	—			58
Decrease in Debt Service Reserves and Other Assets	68			—			—			68
Other	10			—			—			10
Net Cash (for) from Investments	(751		)	(213		)	91			(873		)
Financing Proceeds for Growth Capital Expenditures	215			—			—			215
Financing Proceeds from Other Financings Including Refinancings	1,662			—			—			1,662
Equity Proceeds	—			26			—			26
Repayments, Net (Including Refinancings)	(2,622		)	(254		)	—			(2,876		)
Payments for Financing Costs	(19		)	(2		)	—			(21		)
Equity Contributions by Parent	148			—			(148		)	—
Distributions to Parent	(993		)	—			993			—
Returns of Capital to Parent	(57		)	—			57			—
Other	(201		)	—			—			(201		)
Net Cash (for) from Financing	(1,867		)	(230		)	902			(1,195		)
Increase (Decrease) in Cash & Cash Equivalents	119			(22		)	—			97
Effect of FX	13			(1		)	—			12
Beginning Cash & Cash Equivalents Balance	990			291			—			1,281
Ending Cash & Cash Equivalents Balance	$	1,122		$	268		$	—		$	1,390

(1)Includes activity at qualified holding companies.

Note: Certain amounts have been netted, condensed and rounded for presentation purposes.

19

Reconciliation of Subsidiary

Distributions and Parent Liquidity

($ Millions)

	Quarter Ended
Total subsidiary distributions & returns of capital to parent	Dec. 31, 2005		Sept. 30, 2005		Jun. 30, 2005			Mar. 31, 2005			Dec. 31, 2004			Sept. 30, 2004			June 30, 2004			Mar. 31, 2004		2005			2004
Subsidiary distributions to parent	$	354	$	274	$	170		$	190		$	286		$	209		$	292		$	204	$	988		$	991
Net distributions to/(from) QHCs	—		—		—			5			(9		)	12			10			—		5			13
Total subsidiary distributions	354		274		170			195			277			221			302			204		993			1,004
Returns of capital distributions to parent	5		—		37			2			3			110			—			3		44			116
Net returns of capital distributions to/ (from) QHCs	—		—		13			—			—			11			—			—		13			11
Total returns of capital distributions	5		—		50			2			3			121			—			3		57			127
Combined distributions & return of capital received	359		274		220			197			280			342			302			207		1,050			1,131
Less: combined net distributions & returns of capital to/(from) QHCs	—		—		(13		)	(5		)	9			(23		)	(10		)	—		(18		)	(24		)
Total subsidiary distributions & returns of capital to parent	$	359	$	274	$	207		$	192		$	289		$	319		$	292		$	207	$	1,032		$	1,107
	Balance as of
Liquidity	Dec. 31, 2005		Sept. 30, 2005		Jun. 30, 2005			Mar. 31, 2005			Dec. 31, 2004
Cash at parent	$	262	$	146	$	145		$	256		$	287
Availability under revolver	356		281		215			218			352
Cash at QHCs	6		9		19			3			4
Ending liquidity	$	624	$	436	$	379		$	477		$	643

See following page for further information.

20

Assumptions

Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to: (a) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; (b) businesses continue to operate in a manner consistent with or better than prior operating performance, including achievement of planned productivity improvements including benefits of global sourcing, and in accordance with the provisions of their relevant contracts or concessions; (c) new business opportunities are available to AES in sufficient quantity so that AES can capture its historical market share or increase its share; (d) no material disruptions or discontinuities occur in GDP, foreign exchange rates, inflation or interest rates during the forecast period; (e) negative factors do not combine to create highly negative low-probability business situations; (f) material business-specific risks as described in the Company’s SEC filings do not occur. In addition, benefits from global sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and projected savings based on assumed spend volume which may or may not actually be achieved. Also, improvement in certain KPIs such as EFOR and commercial availability may not improve financial performance at all facilities based on commercial terms and conditions. These benefits will not be fully reflected in the Company’s consolidated financial results.

The cash held at qualifying holding companies (QHCs) represents cash sent to subsidiaries of the Company domiciled outside of the U.S. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the parent company. Cash at those subsidiaries was used for investment and related activities outside of the U.S. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the U.S. Since the cash held by these qualifying holding companies is available to the parent, AES uses the combined measure of subsidiary distributions to parent and qualified holding companies as a useful measure of cash available to the parent to meet its international liquidity needs. AES believes that unconsolidated parent company liquidity is important to the liquidity position of AES as a parent company because of the non-recourse nature of most of AES’s indebtedness.

21

Definitions of Non-GAAP Measures

•Adjusted earnings per share (a non-GAAP financial measure), is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil, Venezuela, and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and are considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency gains and losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

•Free cash flow – Net cash flow from operating activities less maintenance capital expenditures. Maintenance capital expenditures reflect property additions less growth capital expenditures.

•Liquidity – Cash at the parent company plus availability under corporate revolver plus cash at qualifying holding companies (QHCs).

•Return on invested capital (ROIC) – Net operating profit after tax (NOPAT) divided by average capital. NOPAT is defined as income before tax and minority expense plus interest expense less income taxes less tax benefit on interest expense at effective tax rate. Average capital is defined as the average of beginning and ending total debt plus minority interest plus stockholders’ equity less debt service reserves and other deposits.

•Subsidiary Distributions – Cash distributions (primarily dividends and interest income) from subsidiary companies to the parent company and qualified holding companies. These cash flows are the source of cash flow to the parent to meet corporate interest, overhead, cash taxes, and discretionary uses such as recourse debt reductions and corporate investments.

22

Reconciliation of

Cash Flow Items

Net Cash from Operating Activities – Fourth Quarter and Full Year 2005 ($ Millions)

	Subsidiaries		AES Corp(1)		Eliminations			Consolidated
Fourth Quarter 2005	$	840	$	213	$	(354	)	$	699
2005	$	2,737	$	421	$	(993	)	$	2,165

Reconciliation of Free Cash Flow ($ Millions)

	2006 Guidance		2005			2004			Fourth Quarter 2005			Fourth Quarter 2004
Net Cash from Operating Activities	$2,200 to $2,300		$	2,165		$	1,571		$	699		$	454
Maintenance Capital Expenditures	(800) to (900	)	(631		)	(507		)	(122		)	(144		)
Free Cash Flow	$1,300 to $1,500		$	1,534		$	1,064		$	577		$	310

(1) Includes activity at qualified holding companies.

23

Fourth Quarter Calculation of

Return on Invested Capital

($ Millions except percent)

Net Operating Profit After Tax(1)	First Quarter 2004			Second Quarter 2004			Third Quarter 2004			Fourth Quarter 2004			Rolling Twelve Months Fourth Quarter 2004			First Quarter 2005			Second Quarter 2005			Third Quarter 2005			Fourth Quarter 2005			Rolling Twelve Months Fourth Quarter 2005
IBT&MI	$	161		$	233		$	225		$	203		$	822		$	377		$	186		$	484		$	411		$	1,458
Reported Interest Expense	511			428			500			493			1,932			467			475			450			504			1,896
Income Tax Expense(2)	(301		)	(45		)	(396		)	(507		)	(1,203		)	(329		)	(291		)	(276		)	(207		)	(1,070		)
Net Operating Profit After Tax	371			616			329			189			1,551			515			370			658			708			2,284
Effective Tax Rate(3)	44.7		%	6.9		%	54.7		%	72.9		%	43.7		%	39.0		%	44.1		%	29.5		%	22.6		%	31.9		%
ROIC(4)													7.7		%													11.3		%

Total Capital(5)	Fourth Quarter 2003			Fourth Quarter 2004			Fourth Quarter 2005
Total Debt	$	19,638		$	18,588		$	17,706
Minority Interest	995			1,305			1,611
Stockholders’ Equity	(101		)	956			1,649
Debt Service Reserves and Other Deposits	(617		)	(737		)	(611		)
Total Capital	$	19,915		$	20,112		$	20,355
Average Capital(6)				$	20,014		$	20,234

(1)Net operating profit after tax, a non-GAAP financial measure, is defined as income before tax and minority interest expense (IBT&MI) plus interest expense less income taxes less tax benefit on interest expense at the effective tax rate.

(2)Income tax expense calculated by multiplying the sum of IBT&MI and reported interest expense for the period by the effective tax rate for the period.

(3)Effective tax rate calculated by dividing reported income tax expense for the period by IBT&MI for the period.

(4)Return on invested capital (ROIC), a non-GAAP financial measure, is defined as net operating profit after tax divided by average capital calculated over rolling 12 month basis.

(5)Total capital, a non-GAAP financial measure, is defined as total debt plus minority interest plus stockholders’ equity less debt service reserves.

(6)Average capital is defined as the average of beginning and ending total capital over the last 12 months.

24

EX-99.3

Exhibit 99.3

Searchable text section of graphics shown above

AES Investor Presentation

AES CORPORATION

[GRAPHIC]

April 4, 2006

Safe Harbor Disclosure

Certain statements in the following presentation regarding AES’s business operations may constitute “forward looking statements.”  Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to continued normal or better levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth from investments at investment levels and rates of return consistent with prior experience. For additional assumptions see the Appendix to this presentation. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’s filings with the Securities and Exchange Commission including but not limited to the risks discussed under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 as well as our other SEC filings. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

www.aes.com

2

AES is Among the Largest Global Power Companies

[GRAPHIC]

$11.1 billion revenue power generation and distribution business
$2.2 billion net cash provide by operating activities
Capacity to serve 100 million people in 25 countries

Note: 2005 financial data.

3

Clear Strategic Focus

Contains Forward Looking Statements

	Key Strategy Elements
Global Operational Excellence	Deleveraging and Credit Improvement	Focused Growth Strategies

2008 Financial Metrics (1)

Diluted EPS from continuing operations of $1.03 – $1.34

Gross margin improvement to $3.5 billion

ROIC (2) of 11%

Net cash from operating activities of $2.6 – $2.9 billion

(1) Guidance includes growth projects committed to in 2004 and prior years. See Appendix.

(2) Non-GAAP financial measure. See Appendix.

4

Diversified Utilities and Generation Portfolio

2005 Revenue $11.1 billion	2005 Gross Margin $3.2 billion
[CHART]	[CHART]
•Regulated Utilities in 7 countries	•Generation (1)
	77% Revenue from long-term contracts
	23% Revenue from short-term contracts and spot sales

(1)Generation comprises Contract Generation and Competitive Supply segments.

5

Generation KPIs

	Key Performance Indicator (KPI)
Safety Excellence	•Lost time accidents (LTA) •Near misses
Operational Excellence	•Equivalent forced outage rate (EFOR) •Operating cost per megawatt hour •Heat rate •Global sourcing (target spend & sourced savings)
Customer Service Excellence	•Equivalent forced outage rate (EFOR) •Commercial availability

6

KPI Focus – Commercial Availability in North America

60% of the businesses that identify commercial availability as a key driver realized improvements in 2005
Red Oak, Pennsylvania	Red Oak – Commercial Availability
•Provided better training
•Applied problem solving tools
•Improved maintenance practices	[CHART]
•Invested in targeted capex
•Result: 2.4% point improvement since 2003
Cayuga, New York
•Optimized boiler outages	Cayuga – Commercial Availability
•Improved heat rate
•Increased preventive maintenance
•Result: 1.3% point improvement since 2003	[CHART]

7

KPI Focus – Heat Rate in Asia

Heat rate improved in 2005 for over half of the AES plants that identify it as a key driver	OPGC – Heat Rate (Btu/KWh)
OPGC, India and Kelanitissa, Sri Lanka	[CHART]
•Improved component operations through a series of targeted operating and capital investments
•Improved maintenance and work identification processes	Kelanitissa – Heat Rate (Btu/KWh)
•Increased rigor in monitoring and immediately addressing heat rate deviations
•Results: 3% and 1% improvement, respectively, since 2003	[CHART]

8

Utility KPIs

	Key Performance Indicator (KPI)
Safety Excellence	•Lost time accidents (LTA) •Near misses •Public safety
Operational Excellence	•Losses rate •Collections rate •O&M per customer •Overhead per customer
Customer Service Excellence	•System interruption frequency (SAIFI) •System interruption duration (SAIDI) •Customer satisfaction surveys

9

KPI Focus – Losses in Latin America

	In 2005 every AES regulated utility improved year-over-year total loss rates
Eletropaulo – Total Losses (1)	Eletropaulo, Brazil
	•Refocused loss reduction efforts
	•Increased number and efficiency of theft inspections
[CHART]	•Results: 10% improvement since beginning of 2004 and normalized 188 MWh in 2005
AES El Salvador – Total Losses (2)	AES El Salvador
	•Improved meter inspections and follow up (replacement and recalibration)
	•Improved meter reading practices
[CHART]	•Changed 73,000 obsolete meters in 2004-2005
	•Result: 10% improvement since 2003

(1) Trailing 12 months, excludes rebilled energy.

(2) Trailing 12 months.

10

Financial Strategy Elements

	Contains Forward Looking Statements
Target Capital Structure	•Achieve BB credit statistics •Optimize return on invested capital
Robust Risk Management	•Global interest rate, currency, energy cost risk management strategies •Limited recourse project finance structures
Transparent Disclosure	•Financial analysis and reporting •Sarbanes/Oxley compliance •Proactive investor communications •Corporate values and rigorous code of business conduct and compliance program

11

Limited US Merchant Exposure Hedged With Creditworthy Customers

	Contains Forward Looking Statements
AES Eastern Energy Contracting Strategy
Hedge Metrics (1)	Hedge % by Counterparty Credit (2006) (1)
[CHART]	[CHART]

(1)Data as of December 31, 2005.

12

Actively Managed Floating Rate Debt Exposure

	Contains Forward Looking Statements
AES Debt Profile
AES Fixed vs. Floating Rate Debt	Floating Rate Debt by Currency (2)
		Consolidated			Minority Interest Adjusted
[CHART]	US Dollar	51		%	66		%
	Brazil Real	38		%	18		%
	Colombia Peso	3		%	5		%
	Venezuela Bolivar	2		%	3		%
	Euro	2		%	3		%
	Other currencies	4		%	4		%
		100		%	100		%
	Floating rate debt	$	3.9 billion		$	2.4 billion

(1)Including interest rate swaps.

(2)Data as of December 31, 2005.

13

Measuring Improvement through Gross Margin and Return on Invested Capital

Performance Drivers
Generation	Utilities
New Contracted Capacity	Tariff Process Management
Competitive Supply Dispatch	Demand Growth (non-US)	Revenues
Reduce EFOR	Reduce Commercial Losses		Gross
			Margin
Optimize Operating & Sourcing Costs
		Operating
Fuel Purchase Risk Management		Costs
				ROIC
Overhead Cost Management
		Below Gross
Currency and Other Risk Management		Margin
Working Capital and Debt Reduction
		Asset
Asset Utilization		Management

14

Strong Free Cash Flow

Contains Forward Looking Statements

[CHART]

(1)Non-GAAP financial measure. See Appendix.

(2)Based on midpoints of 2006 guidance of $2.2 to $2.3 billion net cash provided by operating activities, maintenance capital expenditures of $800 to $900 million, and free cash flow of $1.3 to $1.5 billion. Free cash flow is a non-GAAP financial measure equal to net cash provided by operating activities less maintenance capital expenditures.

15

Disciplined Use of Growing Free Cash Flow

Contains Forward Looking Statements

2006 Free Cash Flow (1) Profile		2006 Strategy	2007-2008 and Beyond Strategy
	Parent Free Cash Flow $350 MM	Achieve BB/Ba2 credit metrics Rebuild development pipeline	Invest for growth Alternatives if growth projects don’t develop at adequate returns •  investment grade credit •  cash dividends
Free Cash Flow (1) $1,400 MM	Optimize Annually		•  share repurchases
	Subsidiary Free Cash Flow $1,050 MM	Subsidiary debt reduction Platform expansion Dividends (AES and minority owners)

(1)Non-GAAP financial measure based on midpoint of 2006 guidance of $1.3 to $1.5 billion and is reconciled from 2006 guidance for net cash from operating activities of $2.2 to $2.3 billion less maintenance capital expenditures of $800 – $900 million. Estimated allocation of this midpoint 2006 free cash flow guidance is approximately $350 million at the parent company and $1,050 million at subsidiaries.

16

Breadth of AES Capabilities

[GRAPHIC]

Distribution

[GRAPHIC]

Coal-Fired

[GRAPHIC]

Hydroelectric

[GRAPHIC]

Wind Power

[GRAPHIC]

LNG

[GRAPHIC]

Gas-Fired

17

Rebuilding Development Pipeline

Contains Forward Looking Statements

Deep Development Pipeline Supports Sustained Growth

4-6 Years for Greenfield Projects

3-4 Years for Wind Projects

Development Milestones	Market Assessment/ Feasibility Study	Negotiations/ Permits/ RFP	Purchase Agreement	Project Financing	Construction
Current Activity	38 Countries	6 Countries	1 Country	2 Countries	3 Countries
Examples of Current Portfolio Development Activity	Central America China Eastern Europe India Pakistan South Africa US	Bahamas El Salvador Middle East US Vietnam India	Chile	Bulgaria Panama	Chile Spain US

18

Demonstrated Success With Generation Growth Program

Contains Forward Looking Statements

Cumulative Generation Additions 2003-2006E

(% Increase Above 2002 Base)

[CHART]

12 projects in 9 countries representing over 3,800 MW capacity

94% long-term contracts

Note: Includes projects under construction.

19

Four Elements Frame
AES Growth Strategy

Contains Forward Looking Statements

Platform Expansion

•Leverage existing knowledge, relationships, and subsidiary cash

•Examples: Los Vientos, Changuinola

Greenfield

•Focus on contracted projects

•Non-recourse financing

•Examples: Maritza, MOUs in Vietnam and India

Privatization

•Central Europe

•Turkey

Acquisitions

•Rebalance geographic portfolio

•Select opportunities in AES country markets

20

Rigorous Capital Discipline

Contains Forward Looking Statements

Strategic Objectives

Market

Knowledge

•Regional business model

•Leverage existing assets

Execution Skills Value Creation

•Leverage operating model

•People excellence

Risk

Management

•Appropriate hurdle rates

•Reduce portfolio earnings/cash flow volatility

Capital Allocation Process

Project Financial Analysis/Valuation

Independent Review

Executive Office Approval

Board of Directors Approval > $25 Million

Project Execution

21

Key Takeaways

Contains Forward Looking Statements

[GRAPHIC]

•Global power market offers sizeable growth opportunities

•AES well positioned to capitalize on these opportunities

•Investment discipline firmly established

•Strong AES financial metrics

•Margin expansion

•ROIC improvement

•Growing free cash flow

•Improving credit quality

•Double digit EPS growth

•Incentives aligned with investors

•Stock performance (options)

•Free cash flow growth (performance units)

•Outperform S&P 500 total return (restricted stock)

22

AES: The power of being global.

[GRAHIC]

Thank you.

Appendix - - Assumptions

Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to: 1) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; 2 ) businesses continue to operate in a manner consistent with or better than prior operating performance, including achievement of planned productivity improvements including benefits of global sourcing, and in accordance with the provisions of their relevant contracts or concessions; 3) new business opportunities are available to AES in sufficient quantity so that AES can capture its historical market share or increase its share; 4) no material disruptions or discontinuities occur in GDP, foreign exchange rates, inflation or interest rates during the forecast period; 5)  negative factors do not combine to create highly negative low-probability business situations; 6) material business-specific risks as described in the Company’s SEC filings do not occur.

In addition, benefits from global sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and projected savings based on assumed spend volume, which may or may not actually be achieved. Also, improvement in certain KPIs such as EFOR and commercial availability may not improve financial performance at all facilities based on commercial terms and conditions. These benefits will not be fully reflected in the Company’s consolidated financial results.

24

Appendix - - Definitions

•Free Cash Flow – Net cash from operating activities less maintenance capital expenditures. Maintenance capital expenditures reflect property additions less growth capital expenditures.

•Lost Time Accident (LTA) – An incident in which the injured person is kept away from work beyond the day of the incident.

•Near Miss – An incident that occurred but did not result in any injury. In AES, we have expanded this to include unsafe conditions that have been observed.

•O&M – Operation and maintenance.

•Reliability Centered Maintenance (RCM) – An integrated maintenance methodology that optimizes among reactive, interval-based, condition-based, and proactive maintenance practices to take advantage of their respective strengths in order to maximize facility and equipment reliability while minimizing life-cycle costs.

•Return on invested capital (ROIC) – Net operating profit after tax (NOPAT) divided by average capital. NOPAT is defined as income before tax and minority expense plus interest expense less income taxes less tax benefit on interest expense at effective tax rate. Average capital is defined as the average of beginning and ending total debt plus minority interest plus stockholders’ equity less debt service reserves and other deposits.

•System Average Interruption Duration Index (SAIDI) – A measure of the cumulative duration of electric service forced and sustained interruptions experienced by customers each year, excluding “force majeure” events. SAIDI is calculated as the total number of customer minutes of sustained interruption divided by the number of customers served.

•System Average Interruption Frequency Index (SAIFI) – A measure of the number of outages per customer per year. SAIFI is calculated by dividing the total number of customer-sustained interruptions by the number of customers served.

25

Appendix – Summary Financial
Information 2003 –2005

	2005			2004 (1)			2003 (1)
Revenues	$	11,086		$	9,463		$	8,413
Gross margin	3,178			2,782			2,459
Income (loss) from continuing operations	632			264			294
Diluted earnings per share from continuing operations	$	0.95		$	0.41		$	0.49
Net cash from operating activities	$	2,165		$	1,571		$	1,642
Maintenance capital expenditures	(631		)	(507		)	(542		)
Free cash flow (2)	$	1,534		$	1,064		$	1,100

(1)Restated.

(2)Non-GAAP financial measure. See page 25 for definition.

26

Appendix – Reconciliation of Adjusted Earnings Per Share

	2005			2004 (1) (2)
Diluted EPS from Continuing Operations	$	0.95		$	0.41
FAS 133 Mark-to-Market (Gains)/Losses (2)	—			0.06
Currency Transaction (Gains)/Losses	(0.04		)	0.06
Net Asset (Gains)/Losses and Impairments	—			0.05
Debt Retirement (Gains)/Losses	—			0.01
Total Adjustment Factors	(0.04		)	0.18
Adjusted Earnings per Share (3)	$	0.91		$	0.59

(1)Restated.

(2)2004 results include $0.03 related to Chile debt restructuring costs.

(3)Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil, Venezuela, and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and are considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency transaction gains or losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

27

Appendix – Return on Invested Capital (ROIC)

Net Operating Profit After Tax (1)	2005			2004			2003
IBT&MI	$	1,458		$	822		$	644
Reported Interest Expense	1,896			1,932			1,984
Income Tax Expense (2)	(1,070		)	(1,203		)	(861		)
Net Operating Profit After Tax	2,284			1,551			1,767
Effective Tax Rate (3)	32		%	44		%	33		%
ROIC (4)	11.3		%	7.7		%	9.0		%

	December			December			December			December
Total Capital (5)	2005			2004			2003			2002
Total Debt	$	17,706		$	18,588		$	19,638		$	20,047
Minority Interest	1,611			1,305			995			885
Stockholders’ Equity	1,649			956			(101		)	(855		)
Debt Service Reserves and Other Deposits	(611		)	(737		)	(617		)	(515		)
Total Capital	$	20,355		$	20,112		$	19,915		$	19,562
Average Capital (6)	$	20,234		$	20,014		$	19,739

(1)Net operating profit after tax, a non-GAAP financial measure, is defined as income before tax and minority interest expense (IBT&MI) plus interest expense less income taxes less tax benefit on interest expense at the effective tax rate.

(2)Income tax expense calculated by multiplying the sum of IBT&MI and reported interest expense for the period by the effective tax rate for the period.

(3)Effective tax rate calculated by dividing reported income tax expense for the period by IBT&MI for the period.

(4)Return on invested capital (ROIC), a non-GAAP financial measure, is defined as net operating profit after tax divided by average capital calculated over rolling 12 month basis.

(5)Total capital, a non-GAAP financial measure, is defined as total debt plus minority interest plus shareholders equity less debt service reserves.

(6)Average capital is defined as the average of beginning and ending total capital over the last 12 months.

28