AES Corporation

AES Marks Energy Storage Milestone with 400,000 MW-h of PJM Service from Laurel Mountain

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Source: AES Corporation

64 MW Storage Resource Outperforming Generators; Providing Cost-Effective, Emissions-Free Flexibility Daily into Nation’s Largest Power System

ELKINS, W. Va.--(BUSINESS WIRE)-- AES today announced a milestone in the energy storage industry as its AES Laurel Mountain facility surpassed the 400,000 MW-h mark of regulation service to the PJM Interconnection. Laurel Mountain, a plant comprised of 98 MW of wind generation and 64 MW of integrated battery-based energy storage resource, has entered its second year of continuous service supplying emissions-free renewable energy and clean, flexible, regulation service to PJM. AES Laurel Mountain is among the first wind generation facilities to supply critical grid stability services to help maintain the reliability of the power grid. The storage portion of the project is the largest of its kind.

The facility, which began operation in October 2011, provides a significant economic benefit to customers within the PJM electric power market. For more than a year and a half it has consistently been selected for regulation service from among competitively bid offerings in the power market, serving as a lower cost, better performing, zero-emissions, renewable energy alternative to traditional power generation for this service.

'As the largest grid operator in North America, PJM considers energy storage vital to the reliable operation of the electric system of the future,' said PJM President and CEO Terry Boston. 'As with any resource that participates in our electricity market, the AES Laurel Mountain storage facility is proving its worth under real-world conditions.'

The energy storage facility provides fast response regulation, a critical reliability service typically supplied by power generators, but at higher levels of performance. Since the project began service on September 30, 2011, it has supplied over 400,000 MW-h of regulation service to PJM and achieved a service factor better than 98 percent.

“AES Laurel Mountain has allowed PJM to unlock value at the system level by drawing on AES’ extensive experience in advanced energy storage and the power industry,” said Chris Shelton, President of AES Energy Storage. “Utilities and system operators targeting reliability and resource adequacy can choose AES’ advanced storage arrays as sustainable, scalable tools.”

The unit’s ability to regulate up and down, by charging and discharging stored energy, enables an operating range of 64 MW of flexible capacity with no minimum generating level. To achieve a similar flexible operating capability, a thermal power generator would need to be at least 80 MW in size.

About AES Energy Storage

AES Energy Storage is a subsidiary of the AES Corporation (NYSE: AES), a company that has served utility customers around the world for 30 years, helping them to deliver safe, reliable power. The company is a leader in commercial energy storage partnerships, which enable utilities, power markets and renewable developers to manage projects from concept to operation. The company’s energy storage solutions allow customers to unlock value from existing power infrastructure by liberating reserve capacity, enabling renewable facilities to generate new revenue streams, improving flexibility and reliability of the power system, and meeting peak power demand. With 150 MW of resources online, AES Energy Storage operates the largest fleet of battery-based storage assets in commercial operation today. The company has over 1,000 MW in development in the US, South America, Europe, and Asia. To learn more, please visit www.aesenergystorage.com or @aes_es on Twitter.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. 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’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

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’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2012 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2012 Annual Report on Form 10-K dated on or about February 26, 2013 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

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