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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