Company Confidential



Greetings!  



Did you participate in the recent Quarterly Update? Andrés Gluski, AES President and CEO, and the Executive Leadership Team (ELT) hosted a Quarterly Update earlier this month for all AES people in English, Spanish and Portuguese. Andrés and the ELT shared our 2016 performance measures and the Energy Star program, among other items. If you didn't have a chance to listen in, click here for an archive of the call in English, Spanish and Portuguese. 



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LEADERSHIP MATTERS
AES hosts Dominican Republic delegation 



Earlier this week, AES hosted a business delegation from the Dominican Republic for the Dominican Week celebration in the United States. The delegates were composed of business people, executives, members of professional and trade union organizations, academe, and members of the Dominican Embassy in the United States. The visit to our Arlington office gave the delegation an opportunity to know more about AES' innovative technologies, Energy Storage and Advancion 4, our Cyber Security lab, and the five Edison Awards the company has won for distinguished leadership, innovation and contribution to the advancement of the electric industry.
BECOMING AN ENERGY STAR
Accelerating 5x5 work stream


Becoming an energy star means harmonizing our processes, optimizing cycle time, reducing costs and increasing quality. The Accelerate 5x5 Energy Star work stream enables this transformation through improving the General and Administrative (G&A) processes within AES. Since 2014, teams working on several areas such as Accounting, Management Reporting, IT, Supply Chain, Accounts Payable, HR, among others, have been applying the methodology in a structured and coordinated manner in all SBUs and in Arlington. As a result, we improved the way we work while building a network of internal best practices and knowledge while harmonizing our processes and increasing our efficiency.



This year, the work stream team has been supporting the identification of improvement opportunities in critical areas of IT and HR. They are also following and pushing for the implementation of changes designed for Contract Compliance, Accounts Payable, Intercompany Charges and all other processes analyzed in previous years. In addition to implementing these Gap Closure Strategies, 5x5 teams working in IT and HR are finishing the Future State Design of the Payroll, IT Network and IT Collaboration Services, in order to initiate the Gap Analysis and preparation of the respective Transformation Road Maps.

WIN EVERY WEEK
IPL Announces Commercial Operation of Battery-Based Energy Storage Array During White House Summit on Renewable Energy and Storage 

Indianapolis Power & Light Company (IPL), part of the US SBU, recently announced the commercial operation of the 20 MW IPL Advancion® Energy Storage Array as part of a White House Summit on renewables and energy storage. Ken Zagzebski, President of the US SBU, made the announcement as part of a panel of national leaders in clean energy. 
 

AES was invited to join regulators, power companies, municipalities, and energy developers from at least eight states who are leading efforts to promote smart electricity markets and greater grid integration of renewable energy and flexible resources such as energy storage. The 17 companies participating in today's summit have announced projects which will result in at least 1.3 GW of additional storage procurement or deployment in the next five years.

WIN EVERY WEEK
AES UK and Ireland win for energy storage 


The AES Kilroot Advancion® Energy Storage, part of the Europe SBU, was recognized last week in London as United Kingdom's energy storage leader by the British Renewable Energy Awards.


The AES Kilroot Advancion® Energy Storage project is the first recipient of this award. The award recognizes AES' leadership in advancing energy storage in the UK and the potential contribution of energy storage to UK's energy market. 

BEHIND THE MW
US Ambassador visited AES Kazakhstan

United States Ambassador to Kazakhstan George Krol recently visited the Ust-Kamenogorsk CHP, a generating plant managed by the Europe SBU, during his working trip to Eastern Kazakhstan. Ust-Kamenogorsk CHP generates electrical and heat power for large industrial enterprises for Kazakhstan's housing and municipal sector. Ambassador Krol's visit mainly revolved around visiting Turbine 12, which will be launched later this year. Turbine 12 is an important step in the large-scale modernization of the plant. The 120 MW project will provide a secure and safe reliable power supply in the East Kazakhstan region.


"Turbine 12 is a truly international project with a social importance for the region. During its construction, about 250 jobs were created. General contractor is a Chinese state-owned company SEPCO1, which involves Kazakhstan contractors to perform various types of work that provides a unique experience and increase competitiveness of domestic construction companies. " AES Kazakhstan's Complex Leader Duisen Mergaliyev said. 

BEHIND THE MW
AES Colón rescues flora and fauna


In last two months, AES Colón , part of the MCAC SBU, has been working to fulfill the local and legal requirements for the Notice to Proceed (NTP) for the construction of its facilities.  The local team has been removing vegetation including 2.5 hectares of mangrove areas and leveling the ground. The clearing of the vegetation area is being done in compliance with the Environmental Study plans. To date, the flora and fauna rescue team so far have rescued over 50 species of mammals, reptiles, amphibians, birds as well as three different species of orchids.

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ALWAYS ON FOR SAFETY
Pedro Febre is Always On for Safety 



Pedro is an Assistant Manager at Alfafal Centrales Cordilleras, part of the Andes SBU. Pedro thinks that everyone can be a safety hero by looking at their activities closely, and analyzing the hazards and risks associated with their job. He believes that having this kind of mindset enables anyone to prevent incidents from happening at home, at work and at the community.


Consistent with AES' safety beliefs, every person is responsible for their own safety as well as the safety of their teammates. Pedro believes it is part of his leadership responsibilities to take ownership for the safety of his colleagues. "As leaders, we are responsible for the safety of our people. It is our responsibility to help our colleagues and people in our teams to ensure each Job Safety Analysis (JSA) is as thorough as possible to eliminate the risk of a potential incident," he explained.



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