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UNITED STATES OF AMERICA
BEFORE THE
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 September 30, 2004.


 

 

Respectfully submitted,

 

 

/s/  
EARLE H. O'DONNELL      
Earle H. O'Donnell
Andrew B. Young
Hugh E. Hilliard

 

 

Dewey Ballantine LLP
1775 Pennsylvania Avenue, N.W.
Washington, D.C. 20006

Dated:  November 29, 2004


The AES Corporation
SEC Filing Pursuant to Section 3(a)(5) Exemption Order
Period Ended September 30, 2004

Item (1) per Exemption Order (statements attached):

1)
Pro Rata Consolidated Statement of Operations of The AES Corporation for the 12 months ended September 30, 2004

2)
Pro Rata Consolidated Balance Sheet of The AES Corporation at September 30, 2004

3)
Statement of Consolidated Income of IPALCO for the 12 months ended September 30, 2004

4)
Statement of Income of IPL for the 12 months ended September 30, 2004

5)
Consolidated Balance Sheet of IPALCO at September 30, 2004

6)
Balance Sheet of IPL at September 30, 2004

2


THE AES CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS
(INCLUDES IPALCO)
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2004
PRO RATA BASIS1
(Unaudited)

 
  Twelve Months Ended
9/30/2004

 
 
  ($ in millions)

 
REVENUES:        
Sales and services   $ 7,615  

OPERATING COSTS AND EXPENSES:

 

 

 

 
Cost of sales and services     5,303  
Selling, general and administrative expenses     60  
   
 
Total operating costs and expenses     5,363  
   
 
OPERATING INCOME     2,252  

OTHER INCOME AND (EXPENSE):

 

 

 

 
Interest expense, net     (1,483 )
Other (expense) income, net     (210 )
Foreign currency transaction gains (losses)     (106 )
   
 
(LOSS) INCOME BEFORE INCOME TAXES     453  
Income tax (benefit) expense     175  
   
 
(LOSS) INCOME FROM CONTINUING OPERATIONS     278  
Loss from operations of discontinued components (net of income taxes)     (538 )
   
 
(LOSS) INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE     (260 )
Cumulative effect of accounting change (net of income taxes)     43  
   
 
NET (LOSS) INCOME   $ (217 )
   
 

1
In accordance with the analysis used in the order requiring filing of this certificate, this table is calculated on a proportional consolidation basis whereby AES' subsidiaries are included by multiplying each applicable line item from the statement of operations of each AES subsidiary times AES' percentage ownership interest in such subsidiary.

3


THE AES CORPORATION

PRO RATA BASIS1 CONSOLIDATED BALANCE SHEET
(INCLUDES IPALCO)
SEPTEMBER 30, 2004
($ in millions, unaudited)

ASSETS        

Current Assets:

 

 

 

 
  Cash and cash equivalents   $ 1,582  
  Restricted cash     357  
  Short-term investments     139  
  Accounts receivable, net of reserves     1,317  
  Inventory     388  
  Deferred income taxes—current     159  
  Prepaid expenses     115  
  Other current assets     803  
  Current assets of discontinued operations and businesses held for sale     250  
   
 
  Total current assets     5,110  

Property, Plant and Equipment:

 

 

 

 
  Land     748  
  Electric generation and distribution assets     21,969  
  Accumulated depreciation and amortization     (5,087 )
  Construction in progress     827  
   
 
  Property, plant and equipment, net     18,457  

Other Assets:

 

 

 

 
  Deferred financing costs—net     486  
  Investments in and advances to affiliates     683  
  Debt service reserves and other deposits     598  
  Goodwill—net     1,376  
  Deferred income taxes—noncurrent     778  
  Long-term assets of discontinued operations and businesses held for sale     683  
  Other assets     1,785  
   
 
  Total other assets     6,389  
 
Total assets

 

$

29,956

 
   
 

1
In accordance with the analysis used in the order requiring filing of this certificate, this table is calculated on a proportional consolidation basis whereby AES' subsidiaries are included by multiplying each applicable line item from the balance sheet of each AES subsidiary times AES' percentage ownership interest in such subsidiary.

4


THE AES CORPORATION

PRO RATA BASIS1 CONSOLIDATED BALANCE SHEET
(INCLUDES IPALCO)
SEPTEMBER 30, 2004
($ in millions, unaudited)

LIABILITIES & STOCKHOLDERS' EQUITY        

Current liabilities:

 

 

 

 
  Accounts payable   $ 1,027  
  Accrued interest     447  
  Accrued and other liabilities     1,372  
  Current liabilities of discontinued operations and businesses held for sale     769  
  Recourse debt—current portion     295  
  Non-recourse debt—current portion     1,778  
   
 
  Total current liabilities     5,688  

Long-term Liabilities:

 

 

 

 
  Recourse debt     5,175  
  Non-recourse debt     11,262  
  Deferred income taxes     1,122  
  Pension liabilities     900  
  Long-term liabilities of discontinued operations and businesses held for sale     19  
  Other long-term liabilities     3,134  
   
 
  Total long-term liabilities     21,612  
 
Minority interest

 

 

1,226

 

Stockholders' Equity:

 

 

 

 
  Common stock—$.01 par value—1,200 million shares authorized for 2004 and 2003, 648 million issued and outstanding in 2004, 626 million issued and outstanding in 2003     6  
  Additional paid-in capital     5,497  
  Accumulated deficit     (877 )
  Accumulated other comprehensive loss     (3,196 )
   
 
  Total stockholders' equity     1,430  
 
Total

 

$

29,956

 
   
 

1
In accordance with the analysis used in the order requiring filing of this certificate, this table is calculated on a proportional consolidation basis whereby AES' subsidiaries are included by multiplying each applicable line item from the balance sheet of each AES subsidiary times AES' percentage ownership interest in such subsidiary.

5



IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Statement of Income
(In Thousands)
(Unaudited)

For the Twelve Months Ended September 30, 2004        

ELECTRIC UTILITY OPERATING REVENUES

 

$

859,678

 

UTILITY OPERATING EXPENSES:

 

 

 

 
  Operation:        
    Fuel     189,445  
    Other operating expenses     124,019  
  Power purchased     14,730  
  Maintenance     80,708  
  Depreciation and amortization     121,227  
  Taxes other than income taxes     31,864  
  Income taxes—net     94,156  
   
 
    Total operating expenses     656,149  
   
 
UTILITY OPERATING INCOME     203,529  
   
 

OTHER INCOME AND (DEDUCTIONS):

 

 

 

 
  Allowance for equity funds used during construction     2,817  
  Gain (loss) on sales of assets, net     (1,353 )
  Other—net     (1,352 )
  Income tax benefit—net     26,402  
   
 
    Total other income (deductions)—net     26,514  
   
 

INTEREST AND OTHER CHARGES:

 

 

 

 
  Interest on long-term debt     112,571  
  Other interest     619  
  Allowance for borrowed funds used during construction     (2,474 )
  Amortization of redemption premiums and expense on debt-net     2,746  
  Preferred dividends of subsidiary     3,213  
   
 
    Total interest and other charges—net     116,675  
   
 

NET INCOME

 

$

113,368

 
   
 

6



INDIANAPOLIS POWER & LIGHT COMPANY
Statement of Income
(In Thousands)
(Unaudited)

For the Twelve Months Ended September 30, 2004        

OPERATING REVENUES

 

$

859,678

 

OPERATING EXPENSES:

 

 

 

 
  Operation:        
    Fuel     189,445  
    Other     124,019  
  Power purchased     14,730  
  Maintenance     80,708  
  Depreciation and amortization     121,227  
  Taxes other than income taxes     31,864  
  Income taxes—net     94,156  
   
 
    Total operating expenses     656,149  
   
 

OPERATING INCOME

 

 

203,529

 
   
 

OTHER INCOME AND (DEDUCTIONS):

 

 

 

 
  Allowance for equity funds used during construction     2,817  
  Miscellaneous income and (deductions)—net     (971 )
  Gain on sale of asset     811  
  Income (taxes) applicable to other income and deductions     (115 )
   
 
    Total other income and (deductions)—net     2,542  
   
 

INTEREST AND OTHER CHARGES:

 

 

 

 
  Interest on long-term debt     48,821  
  Other interest     619  
  Allowance for borrowed funds used during construction     (2,474 )
  Amortization of redemption premium and expense on debt—net     1,708  
   
 
    Total interest and other charges—net     48,674  
   
 

NET INCOME

 

 

157,397

 
   
 

PREFERRED DIVIDEND REQUIREMENTS

 

 

3,213

 
   
 

INCOME APPLICABLE TO COMMON STOCK

 

$

154,184

 
   
 

7



IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets
(In Thousands)
(Unaudited)

 
  September 30, 2004
ASSETS      

UTILITY PLANT:

 

 

 
  Utility plant in service   $ 3,407,977
  Less accumulated depreciation     1,336,315
   
    Utility plant in service—net     2,071,662
  Construction work in progress     62,723
  Property held for future use     1,085
   
    Utility plant—net     2,135,470
   

OTHER ASSETS:

 

 

 
  Nonutility property—at cost, less accumulated depreciation     1,502
  Other investments     7,255
   
    Other assets—net     8,757
   

CURRENT ASSETS:

 

 

 
  Cash and cash equivalents     21,798
  Accounts receivable and unbilled revenue (less allowance      
  for doubtful accounts of $1,518)     50,377
  Fuel—at average cost     25,197
  Materials and supplies—at average cost     46,139
  Net income tax refunds receivable     2,375
  Prepayments and other current assets     4,293
   
    Total current assets     150,179
   

DEFERRED DEBITS:

 

 

 
  Regulatory assets     119,678
  Miscellaneous     34,027
   
  Total deferred debits     153,705
   
   
TOTAL

 

$

2,448,111
   

8



IPALCO ENTERPRISES and SUBSIDIARIES
Consolidated Balance Sheets
(In Thousands)
(Unaudited)

 
  September 30, 2004
 
CAPITALIZATION AND LIABILITIES        

CAPITALIZATION:

 

 

 

 
  Common shareholder's deficit:        
  Premium on 4% cumulative preferred stock   $ 649  
  Paid in capital     606  
  Accumulated deficit     (54,964 )
  Accumulated other comprehensive loss     (55,220 )
   
 
    Total common shareholder's deficit     (108,929 )
  Cumulative preferred stock of subsidiary     59,135  
  Long-term debt (less current maturities and sinking fund requirements)     1,502,045  
   
 
    Total capitalization     1,452,251  
   
 

CURRENT LIABILITIES:

 

 

 

 
  Current maturities and sinking fund requirements     300  
  Accounts payable     38,862  
  Accrued expenses     17,037  
  Dividends payable     803  
  Accrued real estate and personal property taxes     11,737  
  Accrued income and other taxes     421  
  Accrued interest     38,642  
  Customer deposits     11,345  
  Other current liabilities     1,685  
   
 
    Total current liabilities     120,832  
   
 

DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES:

 

 

 

 
  Accumulated deferred income taxes—net     343,257  
  Regulatory liabilities and other removal costs     376,863  
  Unamortized investment tax credit     26,142  
  Accrued postretirement benefits     6,650  
  Accrued pension benefits     111,117  
  Miscellaneous     10,999  
   
 
    Total deferred credits and other long-term liabilities     875,028  
   
 

COMMITMENTS AND CONTINGENCIES TOTAL

 

$

2,448,111

 
   
 

9



INDIANAPOLIS POWER & LIGHT COMPANY
Balance Sheets
(In Thousands)
(Unaudited)

 
  September 30, 2004
ASSETS      

UTILITY PLANT:

 

 

 
  Utility plant in service   $ 3,407,977
  Less accumulated depreciation     1,336,315
   
    Utility plant in service—net     2,071,662
  Construction work in progress     62,723
  Property held for future use     1,085
   
    Utility plant—net     2,135,470
   

OTHER PROPERTY—

 

 

 
  At cost, less accumulated depreciation     2,198

CURRENT ASSETS:

 

 

 
  Cash and cash equivalents     16,810
  Accounts receivable and unbilled revenue (less allowances      
  for doubtful accounts of $1,505)     50,183
  Receivable due from Parent     1,163
  Fuel—at average cost     25,197
  Materials and supplies—at average cost     46,144
  Net income tax refunds receivable     1,070
  Prepayments and other current assets     4,293
   
    Total current assets     144,860
   

DEFERRED DEBITS:

 

 

 
  Regulatory assets     119,678
  Miscellaneous     26,400
   
    Total deferred debits     146,078
   
     
TOTAL

 

$

2,428,606
   

10



INDIANAPOLIS POWER & LIGHT COMPANY
Balance Sheets
(In Thousands)
(Unaudited)

 
  September 30, 2004
 
CAPITALIZATION AND LIABILITIES        

CAPITALIZATION:

 

 

 

 
  Common shareholder's equity:        
    Common stock   $ 324,537  
    Premium and net gain on preferred stock     2,642  
    Paid in capital     606  
    Retained earnings     373,576  
    Accumulated other comprehensive loss     (55,217 )
   
 
      Total common shareholder's equity     646,144  
  Cumulative preferred stock     59,135  
  Long-term debt (less current maturities and sinking fund requirements)     752,045  
   
 
      Total capitalization     1,457,324  
   
 

CURRENT LIABILITIES:

 

 

 

 
  Accounts payable     38,786  
  Accrued expenses     16,455  
  Dividends payable     803  
  Accrued real estate and personal property taxes     11,734  
  Accrued taxes     827  
  Accrued interest     14,525  
  Customer deposits     11,345  
  Other current liabilities     1,685  
   
 
      Total current liabilities     96,160  
   
 

DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES:

 

 

 

 
  Accumulated deferred income taxes—net     343,351  
  Regulatory liabilities and other removal costs     376,863  
  Unamortized investment tax credit     26,142  
  Accrued postretirement benefits     6,650  
  Accrued pension benefits     111,117  
  Miscellaneous     10,999  
   
 
      Total deferred credits and other long-term liabilities     875,122  
   
 

COMMITMENTS AND CONTINGENCIES TOTAL

 

$

2,428,606

 
   
 

11



Item (2) per Exemption Order (Income Statement Amounts are 12 months ended):

IPL Contributions To
AES/IPALCO Consolidated Holding Company
(Pro Rata Consolidation Basis1)
($MM)

 
  12 Mos. ended 9/30/03
  12 Mos. ended 9/30/04
 
Gross Revenues2   10.56 % 11.29 %
IPL   825   860  
IPALCO (excluding IPL)     0  
AES   6,989   6,755  
AES/IPALCO   7,814   7,615  

Operating Income

 

14.77

%

13.23

%
IPL   287   298  
IPALCO (excluding IPL)   0   0  
AES   1,656   1,954  
AES/IPALCO   1,943   2,252  

Net Income (Loss)

 

(5.14

%)

(70.97

%)
IPL   140   154  
IPALCO (excluding IPL)   (39 ) (41 )
AES   (2,825 ) (330 )
AES/IPALCO   (2,724 ) (217 )

Net Assets

 

6.84

%

8.11

%
IPL   2,080   2,429  
IPALCO (excluding IPL)   19   20  
AES   28,316   27,507  
AES/IPALCO   30,415   29,956  

1
In accordance with the analysis used in the order requiring filing of this certificate, the AES line items in this table are calculated on a proportional consolidation basis whereby AES' subsidiaries are included by multiplying each applicable line item from the statement of operations or balance sheet, as applicable, of each AES subsidiary times AES' percentage ownership interest in such subsidiary. The numbers presented for AES in this table exclude CILCO, which AES sold during the first quarter of 2003.
2
Gross business revenues (utility and non-utility) of IPALCO combined as a percentage of total gross business revenues (including IPALCO/IPL, utility and non-utility) of AES.

12



Item (3) per Exemption Order—Generation Information:

        AES Generating Plants in Operation at September 30, 2004 (excluding IPALCO):

Unit

  Country
  Capacity
(MW)

  AES
Interest
(%)

  AES
Equity
(MW)

  Regulatory
Status

AES Deepwater   USA   160   100   160   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   203   100   203   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   1,986   100   1,986   EWG
AES Redondo Beach   USA   1,334   100   1,334   EWG
AES Huntington Beach   USA   904   100   904   EWG
AES Hemphill   USA   14   67   9   QF
AES Mendota   USA   25   100   25   QF
AES Delano   USA   50   100   50   QF
AES Puerto Rico   USA   454   100   454   FUCO
AES Granite Ridge (held for sale)   USA   720   100   720   EWG
AES Ironwood   USA   705   100   705   EWG
AES Red Oak   USA   832   100   832   EWG
AES Wolf Hollow (held for sale)   USA   730   100   730   EWG

DOMESTIC SUBTOTAL:

 

 

 

10,311

 

 

 

10,306

 

 
Unit

  Country
  Capacity
(MW)

  AES
Interest
(%)

  AES
Equity
(MW)

  Regulatory
Status

AES Kingston   Canada   110   50   55   EWG
AES San Nicolas   Argentina   650   88   572   EWG
AES Cabra Coral   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   Argentina   45   100   45   FUCO
AES Alicura   Argentina   1,040   99   1,030   FUCO
AES Bayano   Panama   260   49   127   FUCO
AES Panama   Panama   43   49   21   FUCO
Esti   Panama   120   49   59   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 Xiangci—Cili   China   26   51   13   FUCO
Wuhu   China   250   25   63   FUCO
Chengdu Lotus City   China   48   35   17   FUCO
AES Jiaozuo   China   250   70   175   FUCO
                     

13


AES Hefei   China   115   70   81   FUCO
Aixi   China   50   71   36   FUCO
Yangcheng   China   2,100   25   525   FUCO
AES Ekibastuz Gres   Kazakhstan   4,000   100   4,000   FUCO
AES Ust-Kamenogorsk   Kazakhstan   331   100   331   FUCO
AES Shulbinsk   Kazakhstan   702   100   702   FUCO
AES Ust-Kamenogorsk CHP   Kazakhstan   1,356   100   1,356   FUCO
AES Sogrinsk CHP   Kazakhstan   301   100   301   FUCO
Altai-Ust-Kamenogorsk Heat Nets   Kazakhstan   260   Mgmt   0   FUCO
OPGC   India   420   49   206   FUCO
AES Lal Pir   Pakistan   365   55   201   FUCO
AES Pak Gen   Pakistan   365   55   201   FUCO
AES Borsod   Hungary   96   100   96   FUCO
AES Tisza II   Hungary   860   100   860   FUCO
AES Tiszapalkonya   Hungary   125   100   125   FUCO
AES Elsta   Netherlands   630   50   315   FUCO
AES Indian Queens   U.K.   140   100   140   EWG
AES Kilroot   U.K.   520   97   504   FUCO
AES Uruguaiana   Brazil   639   46   294   FUCO
AES Tiete (10 plants)   Brazil   2,650   25   663   FUCO
AES EDC (4 plants)   Venezuela   2,616   86   2,250   FUCO
AES Merida III   Mexico   495   55   272   FUCO
AES Ottana   Italy   140   100   140   FUCO
AES Chivor   Colombia   1,000   96   960   FUCO
AES Gener-Electrica de Santiago   Chile   379   89   337   FUCO
AES Gener-Energia Verde   Chile   42   99   42   FUCO
AES Gener-Guacolda   Chile   304   49   149   FUCO
AES Gener-Norgener   Chile   277   99   274   FUCO
Itabo   Dom. Rep.   433   25   108   FUCO
AES Bohemia   Czech Rep.   140   100   140   FUCO
AES SONEL   Cameroon   850   56   476   FUCO
Central Dique   Argentina   68   51   35   FUCO
AES Termoandes   Argentina   643   99   637   FUCO
AES Parana   Argentina   845   100   845   FUCO
Ebute   Nigeria   306   95   291   FUCO
AES Centrogener   Chile   782   99   774   FUCO
AES Barka   Oman   427   52   222   FUCO
Ras Laffan   Qatar   756   55   416   FUCO
AES Kelanitissa   Sri Lanka   168   90   151   FUCO
AES Andres   Dom. Rep.   304   100   304   FUCO

FOREIGN SUBTOTAL:

 

 

 

30,332

 

 

 

22,378

 

 
TOTAL—September 30, 2004       40,643       32,684    
Foreign Generation as a Percentage of Total:       75%       68%    

14


        IPALCO Generating Plants at September 30, 2004:

Unit

  Country
  Capacity
(MW)

  AES
Interest
(%)

  AES
Equity
(MW)

  Regulatory Status
Petersburg   USA   1,715   100   1,715   IURC
H. T. Pritchard (Eagle Valley)   USA   367   100   367   IURC
E. W. Stout   USA   1,116   100   1,116   IURC
Georgetown   USA   80   100   80   IURC
TOTAL—March 31, 2004       3,278       3,278    

        Revenues from electric generation capacity—12 months ended September 30, 2004 (millions of dollars):

IPALCO   602   13 %
AES (excluding IPALCO)   4,131   87 %
   
 
 
Total   4,733   100 %

        IPALCO'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 IPALCO and a 182 MW increase in the amount of generation capacity owned by AES (excluding IPALCO) from 32,502 MW to 32,684 MW since March 31, 2004.1 There has been a 6% increase in the total revenues earned from the capacity owned by AES and IPALCO in the 12-month period ended September 30, 2004 compared with the 12-month period ended March 31, 2004. The percentage of the total revenues derived from the generation capacity owned by IPALCO has remained the same at 13%.

        The countries in which AES' net generating capacity increased during the second and third quarters of 2004 are as follows: Panama, The Netherlands, the Czech Republic and Qatar.


Item (4) per Exemption Order— Electric Transmission and Distribution and Gas Distribution:

        Electric transmission and distribution and gas distribution assets owned as of September 30, 2004 (millions of dollars):

IPALCO   1,420
Total AES (excluding IPALCO)   4,459
   
Total   5,879

        Electric transmission and distribution and gas distribution revenues for 12 months ending September 30, 2004 (millions of dollars):

IPALCO   258
Total AES (excluding IPALCO)   2,624
   
Total   2,882

1
AES' generation capacity (excluding IPALCO) as of March 31, 2004 has been revised from 31,469 MW to 32,502 MW to reflect AES' 100% ownership interest in the AES Ust-Kamenogorsk and AES Shulbinsk facilities.

15


        IPALCO'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 and IPALCO have increased since March 31, 2004. IPALCO's transmission and distribution assets have increased while the revenues derived from such assets have increased since March 31, 2004. AES' transmission and distribution assets have increased and the revenues derived from such assets have decreased since March 31, 2004. IPALCO's percentage of the total transmission and distribution assets has decreased from 25% to 24% and IPALCO's percentage of the total revenues from such assets has increased from 7% to 9% for the 12-month period ending September 30, 2004 compared to the 12-month period ending March 31, 2004.


Item (5) per Exemption Order:

        IPL has not sold or transferred any electric and/or gas utility assets to any affiliate company of the AES consolidated holding company system during the second and third quarters of 2004.


Item (6) per Exemption Order:

        During the second and third quarters of 2004, no application has been made to or order has been received from the Indiana Utility Regulatory Commission ("IURC") that involves AES' ownership of or oversight over the operations of IPL or IPALCO.


Item (7) per Exemption Order:

        As previously reported, on January 31, 2003, AES announced completion of the sale of CILCORP, including CILCO, to Ameren Corporation after receiving all necessary regulatory approvals.

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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 29th day of November, 2004, by the undersigned thereunto duly authorized.


 

The AES Corporation

 

By:

/s/  
ASHLEY A. MEISE      
Ashley A. Meise
Assistant General Counsel

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QuickLinks

CONSOLIDATED STATEMENT OF OPERATIONS (INCLUDES IPALCO) FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2004 PRO RATA BASIS1 (Unaudited)
PRO RATA BASIS1 CONSOLIDATED BALANCE SHEET (INCLUDES IPALCO) SEPTEMBER 30, 2004 ($ in millions, unaudited)
PRO RATA BASIS1 CONSOLIDATED BALANCE SHEET (INCLUDES IPALCO) SEPTEMBER 30, 2004 ($ in millions, unaudited)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES Consolidated Statement of Income (In Thousands) (Unaudited)
INDIANAPOLIS POWER & LIGHT COMPANY Statement of Income (In Thousands) (Unaudited)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES Consolidated Balance Sheets (In Thousands) (Unaudited)
IPALCO ENTERPRISES and SUBSIDIARIES Consolidated Balance Sheets (In Thousands) (Unaudited)
INDIANAPOLIS POWER & LIGHT COMPANY Balance Sheets (In Thousands) (Unaudited)
INDIANAPOLIS POWER & LIGHT COMPANY Balance Sheets (In Thousands) (Unaudited)
IPL Contributions To AES/IPALCO Consolidated Holding Company (Pro Rata Consolidation Basis1) ($MM)
SIGNATURE