Storage Arrays Low Cost, Reliable Resource Adequacy September IEP

2 24 MW Los Andes MW Laurel Mtn MW and growing… A fleet of cost competitive, reliable storage resources 40 MW Angamos MW Cochrane 2014 Online Date 40 MW Tait Sep 2013 AES IPL World’s first grid Lithium-ion battery Feb 2008 Customers:

4MW Carina Indiana Technical Validation 2008

24 MW Los Andes 24 MW, Chile Spinning Reserve (CDEC-SING) 2009

Angamos 40MW Battery Resource in Chile “By crafting and completing such an innovative power plant that maintains a high level of environmental performance, AES has continued its dedication to excellence in service and performance.” Thomas R. Kuhn, EEI President © 2013 The AES Corporation All Rights Reserved

Angamos 40MW resource quick, precise response to event on 4/9/12 to maintain grid Source: CDEC-SING, AES Angamos BESS Response Angamos BESS responds with rapid increase of output from 0MW to 20MW Autonomous response according to programmed profile Output sustained until stability restored  Thermal unit responds with 4MW burst, then output drops off  Gradually ramps up in oscillating manner to 7MW output increase over 4 minutes Thermal Units © 2013 The AES Corporation All Rights Reserved

7 64 MW Laurel Mountain Battery Resource in West Virginia, USA

64 MW Laurel Mountain battery resource operating commercially in PJM since Operating range of +32MW to -32MW Precise response to 4 second AGC Ramp rate mitigation Economic, daily bid in PJM power market Copyright The AES Corporation 2012 © 2013 The AES Corporation All Rights Reserved

Battery arrays are a dual resource generation + controllable load – with no minimum generation. 9

Battery Arrays have a superior architecture for reliability than large unit power plant resources. 100MW unit with one module unavailable Source: Navigant, AES, Battery ArraysTraditional Power Plants 10 97% EAF

40 MW Tait 40 MW, U.S. Regulation (PJM-Ohio) 2013