CREDIT AGREEMENT

BY AND AMONG

INDIANAPOLIS POWER & LIGHT COMPANY,

THE VARIOUS FINANCIAL INSTITUTIONS

PARTY HERETO,

AND

LASALLE BANK NATIONAL ASSOCIATION,

AS AGENT

DATED AS OF JUNE 4, 2003

ARTICLE I	DEFINITIONS AND ACCOUNTING AND OTHERTERMS	1
Section 1.1.	Certain Defined Terms	1

Section 1.2.	Accounting Terms	11

Section 1.3.	Other Terms	11

ARTICLE II	AMOUNT AND TERMS OF THE LOANS	12

Section 2.1.	Facility A Advances	12

(A)	Amount	12

(B)	Method of Selecting Types and Interest Periods for New Advances	12

Section 2.2.	Facility B Advances.	13

(A)	Amount	13

(B)	Method of Selecting Types and Interest Periods for New Advances	13

Section 2.3.	Interest	14

(A)	Interest Rate	14

(B)	Interest Payments	14

(C)	Computation of Interest	14

Section 2.4.	Mandatory Prepayments	14

Section 2.5.	Optional Principal Payments	14

Section 2.6.	Maturity; Facility B Term-Out Option	15

(A)	Facility A Maturity	15

(B)	Facility B Term Out Option	15

(C)	Facility B Maturity	15

Section 2.7.	Mandatory Reduction of the Facility A Commitments	15

Section 2.8.	Voluntary Reduction or Termination of the Commitments	15

Section 2.9.	Notes	16

Section 2.10.	Making of Payments and Prepayments, Proration and Setoff	16

(A)	Making of Payments and Prepayments	16

(B)	Setoff	16

(C)	Proration of Payments	17

(D)	Unconditional Obligations and No Deductions	17

Section 2.11.	Payment on Non-Business Days	17

Section 2.12.	Use of Proceeds	17

Section 2.13.	Fees	17

(A)	Facility Fee	17

(B)	Utilization Fee	18

Section 2.14.	Reimbursement of Costs	18

Section 2.15.	Conversion and Continuation of Outstanding Advances	18

Section 2.16.	Pro Rata Treatment	18

Section 2.17.	Telephonic Notices	19

Section 2.18.	Lending Installations	19

Section 2.19.	Non-Receipt of Funds by the Agent	19

Section 2.20.	Certain Conditions	19

Section 2.21.	Letters of Credit	19

(A)	Issuance	19

(B)	Participations	20

(C)	Notice	20

(D)	LC Fees	20

(E)	Administration; Reimbursement by Banks	21

(F)	Reimbursement by Borrower	21

(G)	Obligations Absolute	22

(H)	Actions of LC Issuer	22

(I)	Indemnification	23

(J)	Banks' Indemnification	23

(K)	Rights as a Bank	23

(L)	Cash Collateral	23

(M)	Existing Letters of Credit	23

ARTICLE III	YIELD PROTECTION; TAXES	24

Section 3.1.	Yield Protection	24

Section 3.2.	Changes in Capital Adequacy Regulations	25

Section 3.3.	Availability of Types of Advances	25

Section 3.4.	Funding Indemnification	25

Section 3.5.	Taxes	26

Section 3.6.	Bank Statements; Survival of Indemnity	27

ARTICLE IV	CONDITIONS OF LENDING	28

Section 4.1.	Conditions Precedent to all Credit Extensions	28

Section 4.2.	Conditions Precedent to Initial Credit Extension	28

ARTICLE V	REPRESENTATIONS AND WARRANTIES	29

Section 5.1.	Representations and Warranties of Borrower	29

(A)	Organization and Existence	29

(B)	Authorization and Absence of Defaults	29

(C)	Acquisition of Consents	30

(D)	Validity and Enforceability	30

(E)	Financial Information	30

(F)	No Litigation	30

(G)	Regulation U	31

(H)	Absence of Adverse Agreements	31

(I)	Taxes	31

(J)	Accuracy of Representations and Warranties	31

(K)	Investment Company Act	31

(L)	Solvency	31

(M)	Licenses, Registrations, and Compliance with Laws	32

(N)	Principal Place of Business; Books and Records	32

(O)	Title to Assets and Properties	32

(P)	Material Adverse Change	32

(Q)	Employee Benefit Plans	33

(R)	Public Utility Holding Company Act	33

(S)	Environmental Matters	33

(T)	Pari Passu Indebtedness	34

(U)	Reportable Transaction	34

ARTICLE VI	COVENANTS OF BORROWER	34

Section 6.1.	Affirmative Covenants of Borrower Other Than ReportingRequirements	34

(A)	Payment of Taxes	34

(B)	Preservation of Existence	34

(C)	Compliance with Laws	35

(D)	Visitation Rights	35

(E)	Keeping of Records and Books of Account	35

(F)	Maintenance of Properties	35

(G)	Other Documents	35

(H)	Environmental Liability	35

(I)	Further Assurances	36

(J)	Purposes	36

(K)	ERISA Compliance	36

(L)	Insurance	36

Section 6.2.	Negative Covenants of Borrower	37

(A)	Liens	37

(B)	Assumptions or Guaranties of Indebtedness	38

(C)	Dissolution	39

(D)	Sale of Assets	39

(E)	Change in Nature of Business	39

(F)	Sale and Leaseback	39

(G)	Sale of Accounts	39

(H)	Indebtedness	39

(I)	Other Agreements	40

(J)	Payment or Prepayment of Other Loans	40

(K)	Change of Fiscal Year	40

(L)	Subordination of Claims	40

(M)	Dividends	40

(N)	Capital Expenditures	40

(O)	Financial Covenants	40

(P)	Affiliates	41

(Q)	Investments and Acquisitions	41

(R)	Certain Restrictions	41

Section 6.3.	Reporting Requirements	41

ARTICLE VII	EVENTS OF DEFAULT	43

Section 7.1.	Events of Default	43

ARTICLE VIII	REMEDIES OF BANKS	45

ARTICLE IX	THE AGENT	45

Section 9.1.	Appointment; Nature of Relationship	45

Section 9.2.	Powers	46

Section 9.3.	General Immunity	46

Section 9.4.	No Responsibility for Loans, Recitals, etc	46

Section 9.5.	Action on Instructions of Banks	46

Section 9.6.	Employment of Agents and Counsel	47

Section 9.7.	Reliance on Documents; Counsel	47

Section 9.8.	Agent's Reimbursement and Indemnification	47

Section 9.9.	Notice of Default	47

Section 9.10.	Rights as a Bank	48

Section 9.11.	Bank Credit Decision	48

Section 9.12.	Successor Agent	48

ARTICLE X	MISCELLANEOUS	49

Section 10.1.	Consent to Jurisdiction and Service of Process	49

Section 10.2.	Rights and Remedies Cumulative	49

Section 10.3.	Delay or Omission Not Waiver	49

Section 10.4.	Amendments	49

Section 10.5.	Notices	51

Section 10.6.	Costs, Expenses and Taxes; Indemnification	51

Section 10.7.	Participations	52

(A)	Permitted Participants; Effect	52

(B)	Voting Rights	52

(C)	Benefit of Certain Provisions	52

Section 10.8.	Binding Effect; Assignment	53

Section 10.9.	Actual Knowledge	54

Section 10.10.	Governing Law	54

Section 10.11.	Severability of Provisions	54

Section 10.12.	Headings	54

Section 10.13.	Counterparts	54

Section 10.14.	Nonliability of Banks	54

Section 10.15.	Nonreliance	55

Section 10.16.	Waiver of Jury Trial	55

Section 10.17.	Termination of Existing Facilities	55

EXHIBITS

A.	Form of Revolving Note

B	Form of Facility B Advance Request

C.	Form of Opinion of Counsel

D.	Form of Assignment Agreement

SCHEDULES

I.	Banks and Commitments

II.	Pricing Schedule

III.	Pending Litigation

IV.	Existing Investments

V.	Existing Letters of Credit

CREDIT AGREEMENT

THIS CREDIT AGREEMENT, dated as of June 4, 2003, is by and among INDIANAPOLIS POWER & LIGHTCOMPANY, an Indiana corporation ("Borrower"), the undersigned financialinstitutions (together with their respective successors and assigns, collectively the"Banks" and individually each a "Bank"), and LASALLE BANKNATIONAL ASSOCIATION ("LaSalle"), as agent for the Banks (in such capacity, the"Agent").

WITNESSETH:

WHEREAS, Borrower wishes, from time to time, to obtain loans and letters of credit, and Banksare willing to make such extensions of credit to Borrower, on the terms and conditions hereinafterset forth:

NOW, THEREFORE, the parties hereto agree as follows: