Business Description

• Electricity sales of 4.2 billion kilowatt-hours
• 992,000 customers
• Distribution lines totaling nearly 35,000 miles

1998 Operating Highlights

• Acquired 63 percent ownership interest in first electric distribution privatization in Venezuela
• Cataguazes (Brazil) named "Utility of the Year" by leading business magazine
• Increased ownership position in Entre Ríos (Argentina) utility
• Completed 560 energy management services projects

1999 Outlook

• Focus on privatizations in Brazil, Venezuela, Morocco, Poland and Turkey
• Improve operations in Venezuela by reducing technical energy losses, implementing training, eliminating operating redundancy and third-party outsourcing