New York School and Municipal Energy Consortium Awards Electricity Contract to AES NewEnergy in...

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 28, 2002

The Onondaga-Cortland-Madison Board of Cooperative Educational Services (OCM BOCES), acting as managing participant for the New York School and Municipality Energy Consortium (NYSMEC), has awarded AES NewEnergy, America's

leading retail electricity provider, a multi-million dollar contract to supply retail electricity service to over 60 school districts and municipalities throughout central New York State. AES NewEnergy worked with the NYSMEC to develop a contract that will provide electricity to over 100 facilities in Niagara Mohawk's service territory representing over 500 service accounts. The NYSMEC is directed by Michael Fay, and OCM BOCES is the managing participant which provides educational services to over 100,000 students.

"This contract will help schools and municipal facilities throughout Central New York State forecast and plan for electricity expenses over the contract term. AES NewEnergy clearly demonstrated their knowledge of the retail electricity markets by preparing a competitive pricing structure tailored to our needs," said Michael Fay, Director of Energy Services with OCM BOCES and the Director of NYSMEC. "Their services and administrative reporting abilities will support NYSMEC in actively managing the energy needs of their constituents."

"Competition in the deregulated electricity market gives customers many more opportunities to reduce their energy costs and to receive better services," said Sandy Kraker, AES NewEnergy's Director of Business Development in Upstate New York. "NYSMEC has been very proactive in managing their energy assets and will be protected from potential price fluctuations in the electricity market. We look forward to working with NYSMEC and welcome them into our growing family of customers in New York State."

The Onondaga-Cortland-Madison BOCES develops and provides educational programs and services of the highest quality for the component school districts and the surrounding community. They are the seventh largest BOCES in the state in number of districts served and the sixth largest in student base ranking. They have 12 locations and serve an area of more than 1,400 square miles.

AES NewEnergy is America's leading retail electricity provider, serving commercial and industrial customers in California, Texas, Illinois, Ohio, Pennsylvania, Maryland, Delaware, New Jersey, New York, Massachusetts, Rhode Island, New Hampshire and Maine. The company offers businesses energy-related products and services. AES NewEnergy is a subsidiary of The AES Corporation (NYSE:AES), a leading global power company composed of competitive generation, distribution and retail businesses around the world. More information on AES NewEnergy's products and services can be found at www.newenergy.com.