As filed with the Securities and Exchange Commission on
    August 17, 2009
   UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Amendment No. 2
 to
  FORM 20-F/A
  ANNUAL REPORT PURSUANT TO
    SECTION 13 OR 15(d)
 OF THE SECURITIES EXCHANGE ACT
    OF 1934
  for the fiscal year ended December 31, 2008
  Commission File Number: 000-53606
  AEI
 (exact name of registrant as
    specified in its charter)
 Cayman Islands
 (jurisdiction of incorporation
    or organization)
  Clifton House, 75 Fort Street,
    P.O. Box 190GT
 George Town, Grand Cayman, Cayman Islands
 (address of principal executive
    offices)
  Maureen J. Ryan
 Executive Vice President, General Counsel and Chief
    Compliance Officer, AEI Services LLC
 700 Milam, Suite 700, Houston, Texas 77002
    (713) 345-5200
    maureen.ryan@aeienergy.com
 (name, telephone,
    e-mail
    and/or facsimile number and address of company contact
    person)
  Securities registered or to be registered pursuant to
    Section 12(b) of the Act:
  Securities registered or to be registered pursuant to
    Section 12(g) of the Act:
  Ordinary shares $0.002 par value
  (Title of class)
  Securities for which there is a reporting obligation pursuant
    to Section 15(d) of the Act:
  The number of outstanding shares of each of the issuers
    classes of capital or common stock as of December 31, 2008
    was:
    Indicate by check mark if the registrant is a well-known
    seasoned issuer, as defined in Rule 405 of the Securities
    Act.
  o þ
  If this report is an annual report, indicate by check mark if
    the registrant is not required to file reports pursuant to
    Section 13 or 15(d) of the Securities Exchange Act of
    1934.
  o þ
  Indicate by checkmark whether the registrant (1) has
    filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the
    preceding 12 months (or for such shorter period that the
    registrant was required to file such reports), and (2) has
    been subject to such filing requirements for the past
    90 days.
  o þ
  Indicate by checkmark whether the registrant has submitted
    electronically and posted on its corporate Web site, if any,
    every Interactive Data File required to be submitted and posted
    pursuant to Rule 405 of
    Regulation S-T
    (§ 232.405 of this chapter) during the preceding
    12 months (or for such shorter period that the registrant
    was required to submit and post such files).
  o o
  Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, or a non-accelerated
    filer. See definition of accelerated filer and large
    accelerated filer in
    Rule 12-b-2
    of the Exchange Act. (Check one):
  o o þ
  Indicate by check mark which basis of accounting the
    registrant has used to prepare the financial statements included
    in this filing:
  U.S.
    GAAP þ

International Financial Reporting Standards as issued by
    the International Accounting Standards
    Board o

Other o   If this is an annual report, indicate by check mark whether
    the registrant is a shell company (as defined in
    Rule 12b-2
    of the Exchange Act).
  o þ




---



##### 





EXPLANATORY
    NOTE
  Form 20-F/A Form 20-F
  
    In Item 10.C  Material Contracts, to
    update the disclosure regarding the Companys Note Purchase
    Agreement, dated May 24, 2007 (the Note Purchase
    Agreement), as amended on
    March 11, 2009 (the First Amendment), and to include the Note
    Purchase Agreement and First Amendment as Exhibits 4.11 and
    4.12, respectively;
    In Item 10.I  Subsidiary Information, to amend the
list of subsidiaries of the Company as Exhibit 21; and
    In Item 18  Financial Statements, to
    include the financial statements of the Predecessor entity,
    Prisma Energy International Services LLC (PEI), a
    predecessor of AEI, for the 249 day period ended
    September 6, 2006 to meet the requirement of
    Regulation S-X
    Rule 3-02.
The financial statements have been recast to
    reflect the application of Statement No. 160, Noncontrolling
    Interests in Consolidated Financial Statements  an
    amendment of ARB No. 51
    (SFAS No. 160), which was issued in
    December 2007.  
    In Item 19  Exhibits, to include Exhibits 4.11, 4.12, 12.1, 12.2, 13.1, 13.2 and 21.   1




---



##### 



Item 10.  Additional
    Information
  C.  Material
    Contracts
                    I.  Subsidiary Information
   2




---



##### 



Item 18.  Financial
    Statements   page F-1.
 3




---



##### 



ITEM 18.  FINANCIAL
STATEMENTSINDEX TO
    THE FINANCIAL STATEMENTS  AEI AND
    SUBSIDIARIES
   
     
 PageREPORT OF INDEPENDENT REGISTERED PUBLIC
    ACCOUNTING FIRM


F-2Consolidated Balance Sheets as of
    December 31, 2008 and 2007


F-3Consolidated Statements of Operations for the
    years ended December 31, 2008, 2007 and 2006


F-4Consolidated Statements of Cash Flows for the
    years ended December 31, 2008, 2007 and 2006


F-5Consolidated Statements of Shareholders
    Equity for the years ended December 31, 2008, 2007 and
    2006


F-6Notes to Consolidated Financial Statements


F-7Schedule II  Valuation and Qualifying
    Accounts


F-53    PRISMA
    ENERGY INTERNATIONAL INC. AND SUBSIDIARIES
   
 PageREPORT OF INDEPENDENT REGISTERED PUBLIC
    ACCOUNTING FIRM


F-54Consolidated Statement of Income for the
    249-Day
    period ended September 6, 2006


F-55Consolidated Statement of Shareholders
    Equity for the
    249-Day
    period ended September 6, 2006


F-56Consolidated Statement of Cash Flows for the
    249-Day
    period ended September 6, 2006


F-57Notes to Consolidated Financial Statements


F-58   F-1




---



##### 



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    c/o AEI
         Noncontrolling
    Interests in Consolidated Financial Statements  an
    Amendment of ARB No. 51
       Noncontrolling Interests in Consolidated Financial
    Statements  an amendment of ARB No. 51
 F-2




---



##### 



AEI AND
    SUBSIDIARIES
  CONSOLIDATED
    BALANCE SHEETS
   December 31,2008


2007(Millions of dollars (U.S.), exceptshare and par value data)ASSETSCurrent assets:Cash and cash equivalents

$
736


$
516Restricted cash


83



95Accounts and notes receivable:Trade (net of allowance of $69 and $46, respectively)


863



650Unconsolidated affiliates


11



75Inventories


239



117Prepaids and other current assets


384



263Total current assets


2,316



1,716Property, plant and equipment, net


3,524



3,035Investments in and notes receivable from unconsolidated
    affiliates


907



1,028Goodwill


614



402Intangibles, net


393



237Other assets


1,199



1,435Total assets

$
8,953


$
7,853LIABILITIES AND EQUITYCurrent liabilities:Accounts payable:Trade

$
572


$
380Unconsolidated affiliates


30



94Current portion of long-term debt, including related party


547



749Accrued and other liabilities


594



525Total current liabilities


1,743



1,748Long-term debt, including related party


3,415



2,515Deferred income taxes


199



168Other liabilities


1,331



1,276Commitments and contingenciesEquity:Common stock, $0.002 par value, 5,000,000,000 shares
    authorized; 224,624,481 and 210,403,374 shares issued and
    outstanding






Additional paid-in capital


1,754



1,521Retained earnings


280



122Accumulated other comprehensive income (loss)


(204
)


215Total shareholders equity attributable to AEI


1,830



1,858Equity attributable to noncontrolling interests


435



288Total equity


2,265



2,146Total liabilities and equity

$
8,953


$
7,853    F-3




---



##### 



AEI AND
    SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
  For the Years Ended December 31,2008


2007


2006(Millions of dollars (U.S.),except share and per share data)Revenues

$
9,211


$
3,216


$
946Costs of sales


7,347



1,796



566Operating expenses:Operations, maintenance, and general and administrative expenses


894



630



193Depreciation and amortization


268



217



59Taxes other than income


43



43



7Other charges


56



50



(Gain) loss on disposition of assets


(93
)


(21
)


7Total operating expenses


1,168



919



266Equity income from unconsolidated affiliates


117



76



37Operating income


813



577



151Other income (expense):Interest income


88



110



71Interest expense


(378
)


(306
)


(138
)Foreign currency transaction gain (loss), net


(56
)


19



(5
)Loss on early retirement of debt






(33
)


Other income (expense), net


9



(22
)


7Total other expense


(337
)


(232
)


(65
)Income before income taxes


476



345



86Provision for income taxes


194



193



84Income from continuing operations


282



152



2Income from discontinued operations






3



7Gain from disposal of discontinued operations






41



Net income


282



196



9Less: Net income  noncontrolling interests


124



65



20Net income (loss) attributable to AEI

$
158


$
131


$
(11
)Basic and diluted earnings per share:Income (loss) from continuing operations attributable to AEI

$
0.73


$
0.42


$
(0.09
)Discontinued operations attributable to AEI






0.21



0.04Net income (loss) attributable to AEI

$
0.73



0.63


$
(0.05
)Amounts attributable to AEI:Income (loss) from continuing operations

$
158



87


$
(18
)Discontinued operations






44



7Net income (loss)

$
158



131


$
(11
)    F-4




---



##### 



AEI AND
    SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  For the Years Ended December 31,2008


2007


2006(Millions of dollars (U.S.))Cash flows from operating activities:Net income

$
282


$
196


$
9Adjustments to reconcile net income (loss) to net cash provided
    by operating activities:Depreciation and amortization


268



217



59Other charges


56



50



Increase in deferred revenue


55



120



28Deferred income taxes


11



106



25Equity earnings from unconsolidated affiliates


(117
)


(76
)


(37
)Distributions from unconsolidated affiliates


67



28



11Foreign currency transaction (gain) loss, net


56



(19
)


5(Gain) loss on disposition of assets


(93
)


(21
)


7Gain from disposal of discontinued operations






(41
)


Loss on early retirement of debt






33



Changes in operating assets and liabilities, net of translation,
    acquisitions, dispositions and non-cash items:Trade receivables


(85
)


(59
)


(34
)Accounts payable, trade


24



77



27Accrued income taxes


(24
)


(26
)


9Accrued interest


16



14



(8
)Inventories


(15
)


(7
)


(15
)Prepaids and other current assets


4



(5
)


13Regulatory assets


(8



112



31Regulatory liabilities


(24
)


(10
)


8Other


35



(3
)


17Net cash provided by operating activities


508



686



155Cash flows from investing activities:Proceeds from sale of investments


99



162



24Capital expenditures


(372
)


(249
)


(76
)Cash paid for acquisitions, exclusive of cash and cash
    equivalents acquired


(253
)


(1,111
)


(2,280
)Cash and cash equivalents acquired


60



21



516Net decrease in restricted cash


78



61



27Other


(26
)


(35
)


60Net cash used in investing activities


(414
)


(1,151
)


(1,729
)Cash flows from financing activities:Issuance of long-term debt


478



1,531



1,788Repayment of long-term debt


(213
)


(1,777
)


(172
)Payment of debt issuance costs






(18
)


(33
)Increase (decrease) in short-term borrowings


(124
)


459



(19
)Dividends paid to noncontrolling interests


(167
)


(101
)


(64
)Proceeds from issuance of common shares


200







920Other


(1
)


(6
)


(25
)Net cash provided by financing activities


173



88



2,395Effect of exchange rate changes on cash


(47
)


63



3Increase (decrease) in cash and cash equivalents


220



(314
)


824Cash and cash equivalents, beginning of period


516



830



6Cash and cash equivalents, end of period

$
736


$
516


$
830Cash payments for income taxes, net of refunds

$
173


$
172


$
50Cash payments for interest, net of amounts capitalized

$
264


$
246


$
66    F-5




---



##### 



AEI AND
    SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF SHAREHOLDERS EQUITY
  AEIAccumulatedOtherAdditional


Retained


ComprehensiveCommon


Paid-In


Earnings


Income


NoncontrollingStock


Capital


(Deficit)


(Loss)


Interests


Total(Millions of dollars (U.S.))Balance, January 1, 2006

$



$
350


$
2


$
(25
)

$
61


$
388Comprehensive incomeNet income (loss)










(11
)






20



9Foreign currency translation














2







2Change in fair value of
    available-for-sale
    securities














34







34Total comprehensive income










(11
)


36



20



45Contribution of invested capital






1,088















1,088Compensation under stock incentive plan






(1
)














(1
)Stock issuance costs






(4
)














(4
)Transition adjustment for pension and other post retirement
    benefits, net of income tax of $3 million














6







6Dividends


















(36
)


(36
)Changes in ownership


















312



312Balance, December 31, 2006

$



$
1,433


$
(9
)

$
17


$
357


$
1,798Comprehensive incomeNet income










131







65



196Foreign currency translation














210



2



212Minimum pension liability adjustments, net of income tax of
    $8 million














16







16Net unrealized loss on qualifying derivatives














(25
)


(2
)


(27
)Change in fair value of
    available-for-sale
    securities














(3
)






(3
)Total comprehensive income










131



198



65



394Contribution of invested capital






79















79Compensation under stock incentive plan






9















9Dividends


















(91
)


(91
)Changes in ownership


















(40
)


(40
)Other


















(3
)


(3
)Balance, December 31, 2007

$



$
1,521


$
122


$
215


$
288


$
2,146Comprehensive incomeNet income










158







124



282Foreign currency translation














(343
)


(43
)


(386
)Minimum pension liability adjustments, net of income tax of
    $16 million














32







32Net unrealized loss on qualifying derivatives, net of income tax
    of $2 million














(43
)






(43
)Change in fair value of
    available-for-sale
    securities














(62
)






(62
)Other














(3
)






(3
)Total comprehensive income










158



(419
)


81



(180
)Issuance of new shares






223















223Compensation under stock incentive plan






7















7Dividends


















(161
)


(161
)Changes in ownership


















229



229Other






3











(2
)


1Balance, December 31, 2008

$



$
1,754


$
280


$
(204
)

$
435


$
2,265     F-6




---



##### 



AEI AND
    SUBSIDIARIES
  NOTES TO
    THE CONSOLIDATED FINANCIAL STATEMENTS
  1.
    DESCRIPTION
    OF THE COMPANY AND OPERATIONS          
    Stage 1 (completed May 25, 2006) AEIL
    acquired 24.26% of the voting capital and 49% of the economic
    interest in PEI.
    Stage 2 (completed September 7, 2006) AEIL acquired the remaining 75.74% of the voting capital and
    the remaining 51% economic interest.     F-7




---



##### 



2008Ownership

2008 Accounting

Location ofCompany Name

Interest (%)

Method

Operations

SegmentAccroven SRL
    (Accroven)(a)

49.25

Equity Method

Venezuela

Natural gas transportation and servicesBeijing Macro Gas Link Co. Ltd
    (BMG)(b)(c)

70.00

Consolidated

China

Natural gas distributionGas Natural de Lima y Callao S.A. 
    (Calidda)(b)

80.85

Consolidated

Peru

Natural gas distributionChilquinta Energia S.A.
    (Chilquinta)(b)(d)

50.00

Equity Method

Chile

Power distributionDHA Cogen Limited
    (DCL)(c)

59.94

Consolidated

Pakistan

Power generationDistribuidora de Electricidad Del Sur, S.A. de
    C.V.
    (Delsur)(b)

86.41

Consolidated

El Salvador

Power distributionEmpresa Distribuidora de Energia Norte, S.A.
    (EDEN)(b)

90.00

Consolidated

Argentina

Power distributionElektra Noreste S.A. (Elektra)

51.00

Consolidated

Panama

Power distributionElektrocieplownia Sp. z.o.o.
    (ENS)(a)

100.00

Consolidated

Poland

Power generationElektro  Eletricidade e Serviços S.A.
    (Elektro)(a)

99.68

Consolidated

Brazil

Power distributionEmgasud S.A. (Emgasud)(c)

31.89

Equity Method

Argentina

Power generationEmpresa Energetica Corinto Ltd.
    (Corinto)(a)(b)(e)

50.00

Consolidated

Nicaragua

Power generationEPE  Empresa Produtora de Energia Ltda.
    (EPE)(a)(f)

50.00

Consolidated

Brazil

Power generationEmpresa Electrica de Generacion de Chilca S.A.
    (Fenix)(c)

85.00

Consolidated

Peru

Power generationGas Transboliviano S.A.
    (GTB)(a)(g)

17.65

Cost Method

Bolivia

Natural gas transportation and servicesGasOcidente do Mato Grosso Ltda.
    (GOM)(a)(f)

50.00

Consolidated

Brazil

Natural gas transportation and servicesGasOriente Boliviano Ltda.
    (GOB)(a)(f)

50.00

Consolidated

Bolivia

Natural gas transportation and servicesGeneradora San Felipe Limited Partnership (Generadora
    San Felipe)(a)(b)(h)

100.00

Consolidated

Dominican Republic

Power generationJaguar Energy Guatemala LLC
    (Jaguar)(c)

100.00

Consolidated

Guatemala

Power generationJamaica Private Power Corporation
    (JPPC)(b)

84.42

Consolidated

Jamaica

Power generationLuoyang Yuneng Sunshine Cogeneration Company Limited
    (Luoyang)(c)

50.00

Consolidated

China

Power generationOperadora San Felipe Limited Partnership (Operadora
    San Felipe)(a)(b)(h)

100.00

Consolidated

Dominican Republic

Power generationPeruvian Opportunity Company SAC
    (POC)(b)(d)

50.00

Equity Method

Peru

Power distributionPromigas S.A. E.S.P.
    (Promigas)(a)(c)

52.13

Consolidated

Colombia

Natural gas transportation and services, Natural gas
    distribution and Retail fuelPuerto Quetzal Power LLC
    (PQP)(a)(b)

100.00

Consolidated

Guatemala

Power generationSubic Power Corp.
    (Subic)(a)

50.00

Equity Method

Philippines

Power generationTipitapa Power Company Ltd
    (Tipitapa)(c)

100.00

Consolidated

Nicaragua

Power generationTongda Energy Private Limited
    (Tongda)(b)

100.00

Consolidated

China

Natural gas distributionTrakya Elektrik Uretim ve Ticaret A.S.
    (Trakya)(a)

59.00

Consolidated

Turkey

Power generationTransborder Gas Services Ltd.
    (TBS)(a)(f)

50.00

Consolidated

Brazil, Bolivia

Natural gas transportation and servicesTransportadora Brasileira Gasoduto Bolivia-Brasil S.A. TBG
    (TBG)(a)(i)

4.00

Cost Method

Brazil

Natural gas transportation and servicesTransredes-Trasporte de Hidrocarburos S.A. 
    (Transredes)(a)(g)

1.28

Cost Method

Bolivia

Natural gas transportation and services     (a)
    
    Acquired in 2006 as part of the
    step acquisition of PEI.(b)
    
    The Companys initial or
    additional interest was purchased during 2007 (see Note 3).(c)
    
    The Companys initial or
    additional interest was purchased during 2008 (see Note 3). F-8




---



##### 



(d)
    
    The Companys initial interest
    was acquired during December 2007. POC holds the interest in the
    operations referred to as Luz del Sur. At the time
    of purchase of the 50.00% interest in Chilquinta, the Company
    also acquired a 50.00% interest in a related service company,
    Tecnored S.A. (Tecnored).(e)
    
    As part of the acquisition of an
    additional interest in Corinto in 2007, the Company acquired a
    50.00% interest in Empresa Energetica Corinto Holdings Ltd.
    (EEC Holdings) and began consolidating the accounts
    of Corinto based on the voting power controlled by AEI (see Note
    3).(f)
    
    These four companies comprise the
    integrated project Cuiabá.(g)
    
    As explained further in
    Note 3, the Companys ownership in Transredes, through
    a 50.00% ownership in the holding company TR Holdings Ltda.
    (TR Holdings), decreased from 25% to 0% and the
    Companys indirect ownership in GTB through Transredes
    decreased from 12.75% to 0%. The company also maintains a 1.28%
    direct ownership interest in Transredes. Total direct and
    indirect ownership in GTB is 17.65% as of December 31,
    2008. Due to the decrease in ownership, the Companys
    investments in Transredes and GTB are now accounted for using
    the cost method.(h)
    
    The Company comprises an integrated
    part of the operation referred to collectively as
    San Felipe.(i)
    
    Ownership interest based on direct
    ownership. Total ownership, including indirect interests held
    through TR Holdings, is 4.21%.    five-for-one
  2.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES  Basis of Presentation 
  Acquisition Accounting
  Discontinued Operations
  Cash and Cash Equivalents
  Restricted Cash
 F-9




---



##### 



Allowance for Doubtful Accounts
  Inventories first-in,
  Regulatory Assets and Liabilities Accounting for the Effects of Certain
    Types of Regulation
  Property, Plant, and Equipment
    Machinery and equipment

3-50 yearsPipelines

25-50 yearsPower generation equipment

18-40 yearsBuildings

5-50 yearsVehicles

3-15 yearsFurniture and fixtures

4-10 years     Long-Lived Asset Impairment
  Investments in Unconsolidated Affiliates
  Marketable Securities available-for-sale, other-than-temporary. Held-to-maturity Held-to-maturity
 F-10




---



##### 



Goodwill
  Intangible Assets
  Asset Retirement Obligations
  Deferred Financing Costs
  Revenue Recognition
  Deferred Revenue kilowatt-hour kilowatt-hour
    Earnings Per Share
  Income Taxes
 F-11




---



##### 



Accounting for
    Uncertainty in Income Taxes  an interpretation of
    FASB Statement No. 109
  Derivatives
    Pension Benefits
  Stock-Based Compensation
  Environmental Matters
  Foreign Currency
 F-12




---



##### 



Use of Estimates
  Recent Accounting Policies Fair Value
    Measurements
  The
    Fair Value Option for Financial Assets and Financial Liabilities
  Business Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements  an amendment of ARB No. 51
 F-13




---



##### 



No. 08-6, Equity Method Investment Accounting Considerations No. 08-6 No. 08-6 No. 08-6
  No. 08-6,
  Disclosures
    about Derivative Instruments and Hedging Activities Accounting for Derivative Instruments
    and Hedging Activities
  3.
    ACQUISITIONS
    AND DISPOSALS  Acquisitions
  2008
    Acquisitions
  Sociedad de Inversiones en Energia SIE) EITF 90-13, Accounting for Simultaneous Common Control Mergers
 F-14




---



##### 



SIEMillions ofdollars (U.S.)Current assets

$
86Property, plant, and equipment, net


51Goodwill


188Intangibles


78Other noncurrent assets


11Assets acquired


414Current liabilities


87Long-term debt


66Other long-term liabilities


17Liabilities assumed


170Noncontrolling interests


114Net assets acquired

$
130     Unaudited
    Pro Forma Results of Operations
    For the YearEndedDecember 31,2007Millions ofdollars (U.S.)Revenues

$
7,475Cost of sales


5,676Operations, maintenance, and general and administrative expenses


1,110Operating income


821Income before income taxes


462Net income  noncontrolling interests


145Income from continuing operations attributable to AEI


90Basic earnings per share attributable to AEI

$
0.43   BMG
  Luoyang
 F-15




---



##### 



Tipitapa
  DCL 
  2008
    Acquisitions of development assets
  Fenix
    BMG


Luoyang


Tipitapa


DCL


FenixMillions of dollars (U.S.)Current assets

$
56


$
15


$
22


$
30


$
1Property, plant, and equipment, net


29



149



12



35



125Goodwill


6



11







10



Intangibles, net


32



8











Other assets


6







3



67



1Assets acquired


129



183



37



142



127Current liabilities


35



76



8



47



5Long-term debt


8



85



6



61



Other liabilities


8



2



5







8Liabilities assumed


51



163



19



108



13Noncontrolling interests


20



1







11



14Net assets acquired

$
58


$
19


$
18


$
23


$
100    F-16




---



##### 



2008
    Acquisition of equity investments
  Emgasud
  2008
    Greenfield development projects
  Jaguar
  2008
    Acquisitions of additional interests in entities already
    consolidated in 2007
  Promigas
  2007
    Acquisitions
  DelSur
  EDEN
  Cálidda 60 40
  Tongda
  Corinto
 F-17




---



##### 



JPPC
  Chilquinta and POC
  2007
    Acquisitions of additional interests in entities already
    consolidated in 2006
  Generadora San Felipe and Operadora
    San Felipe
  PQP
  2006
    Acquisitions
  PEI
    Promigas
 F-18




---



##### 



Dispositions
  Transredes
    BLM
    Discontinued
    Operations  Vengas
      For the Years EndedDecember 31,2007


2006Millions of dollars (U.S.)Revenues

$
64


$
23Income from discontinued operations before taxes


3



7Provision for income tax






Income from discontinued operations


3



7Gain on sale of discontinued operations


41



   Unaudited
    Pro Forma Results of Operations
    For the Year EndedDecember 31,2007


2006Millions of dollars (U.S.)Revenues

$
3,452


$
3,044Cost of sales


1,946



1,694Operations and maintenance expense


974



833Operating income


664



620Other expense


319



174Income from continuing operations before income taxes


286



367Income from continuing operations attributable to AEI


85



49Basic earnings per share attributable to AEI

$
0.41


$
0.25  F-19




---



##### 



4.
    OTHER
    CHARGES  Cuiabá
        Synthesis Energy Systems, Inc.
    (SES)
  5.
    (GAIN)
    LOSS ON DISPOSITION OF ASSETS    For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Gain on exchange for additional shares of SIE (see Note 3)

$
(68
)

$



$
Gain on nationalization of Transredes (see Note 3)


(57
)






Loss on sale of operating equipment


18



10



7Loss on sale of debt securities (see Note 13)


14







Gain on sale of BLM (see Note 3)






(21
)


Gain on sale of shares of Promigas






(10
)


$
(93
)

$
(21
)

$
7  F-20




---



##### 



6.
    OTHER
    INCOME (EXPENSE), NET    For the Year Ended December 31,2008


2007


2006Millions of dollars (U.S.)Dividend income

$
3


$
3


$
Gain (loss) on derivatives


(2
)


(13
)


2Other


8



(12
)


5$
9


$
(22
)

$
7     7.
    CASH AND
    CASH EQUIVALENTS    December 31,2008


2007Millions of dollars (U.S.)Parent Company

$
284


$
31Consolidated Holding and Service Companies


35



157Consolidated Operating Companies


417



328Total cash and cash equivalents

$
736


$
516       December 31,2008


2007Millions of dollars (U.S.)Brazilian Real

$
111


$
133Colombian Peso


96



50Chinese Renminbi


15



Chilean Peso


14



Polish Zloty


8



4Argentinean Peso


7



6Peruvian Nuevo Sol


2



8Jamaican Dollar


2



Other


5



4Total foreign currency cash and cash equivalents

$
260


$
205  F-21




---



##### 



December 31,2008


2007Millions of dollars (U.S.)Current restricted cash:Restricted due to power purchase agreements

$
4


$
5Collateral and debt reserves for financing agreements


63



78Other


16



12Total current restricted cash


83



95Noncurrent restricted cash (included in other assets, see
    Note 13):Restricted due to long-term power purchase agreements


5



56Amounts in escrow accounts related to taxes


24



25Collateral and debt reserves for financing agreements


8



47Other


12



Total non-current restricted cash


49



128Total restricted cash

$
132


$
223   8.
    INVENTORIES    December 31,2008


2007Millions of dollars (U.S.)Materials and spare parts

$
141


$
78Fuel


98



39Total inventories

$
239


$
117   9.
    PREPAIDS
    AND OTHER CURRENT ASSETS    December 31,2008


2007Millions of dollars (U.S.)Prepayments

$
29


$
30Regulatory assets


25



30Deferred income taxes


71



88Receivable from YPFB (see Note 3)


60



Taxes other than income


36



31Government subsidy  Delsur


20



7Net investments in direct financing leases (see Notes 3 and
    13)


10



Current marketable securities


7



2Other


126



75Total

$
384


$
263   10.
    PROPERTY,
    PLANT AND EQUIPMENT, NET    December 31,2008


2007Millions of dollars (U.S.)Machinery and equipment

$
1,888


$
1,924Pipelines


777



745Power generation equipment


862



432Land and buildings


378



117Vehicles


29



20Furniture and fixtures


31



13Other


106



108Construction-in-process


209



143Total


4,280



3,502Less accumulated depreciation and amortization


(756
)


(467
)Total property, plant and equipment, net

$
3,524


$
3,035  F-22




---



##### 



30-year
          For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Depreciation and amortization of property, plant and equipment,
    including those recorded under capital leases

$
223


$
184


$
55Amortization of intangible assets, net


45



33



4Total

$
268


$
217


$
59     11.
    INVESTMENTS
    IN AND NOTES RECEIVABLE FROM UNCONSOLIDATED
    AFFILIATES    December 31,2008


2007Millions of dollars (U.S.)Equity method:Accroven

$
24


$
14BMGs equity method investments


1



Chilquinta


266



330EEC Holdings


7



7GTB






14Emgasud (see Note 3)


49



POC


341



344Promigas equity method investments


41



84Subic


9



7Tecnored


21



24TR Holdings (see Note 3)






58Total investments  equity method


759



882Total investments  cost method


28



27Total investments in unconsolidated affiliates


787



909Notes receivable from unconsolidated affiliates:Chilquinta


98



97GTB


14



14TBG


8



8Total notes receivable from unconsolidated affiliates


120



119Total investments in and notes receivable from unconsolidated
    affiliates

$
907


$
1,028  F-23




---



##### 



Peso
      For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Accroven

$
16


$
12


$
BMGs equity (loss) from investments in unconsolidated
    affiliates


(1
)






Chilquinta


32



1



GTB


1



5



2PEI (see Note 1)










30POC


32



1



Promigas










3Promigas equity income from investments in unconsolidated
    affiliates


14



29



Subic


12



10



4Tecnored


4







TR Holdings


7



18



(2
)Total

$
117


$
76


$
37         December 31,2008


2007Millions of dollars (U.S.)Combined Balance Sheet dataCurrent assets

$
662


$
1,265Noncurrent assets


2,126



3,864Current liabilities


470



930Noncurrent liabilities


968



2,070   F-24




---



##### 



For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Combined Income Statement dataRevenues

$
1,616


$
4,486


$
429Cost of sales


940



3,522



42Net income


227



266



43     12.
    GOODWILL
    AND INTANGIBLES    December 31,2008


2007Millions of dollars (U.S.)Balance at January 1

$
402


$
290Acquisitions:New acquisitions (see Note 3)


225



103Acquired goodwill from consolidation of new acquisitions


35



Translation adjustments and other


(48
)


9Balance at December 31

$
614


$
402     December 31, 2008


December 31, 2007Cost


Accum. Amort.


Net


Cost


Accum. Amort.


NetMillions of dollars (U.S.)


Millions of dollars (U.S.)Amortizable intangibles:Customer relationships

$
171


$
20


$
151


$
81


$
7


$
74Concession and land use rights


152



8



144



88



2



86Power purchase agreements and contracts


64



43



21



58



19



39Software costs


42



21



21



12



6



6Other


4



4







4



2



2Total amortizable intangibles

$
433


$
96



337


$
243


$
36



207Nonamortizable intangibles:Elektra concession rights










31











30Promigas trademarks










25











Total nonamortizable intangibles










56











30Total intangibles









$
393










$
237   Goodwill
  Intangibles
 F-25




---



##### 



20-year
    Millions of dollars (U.S.)2009

$
312010


262011


232012


212013


18Thereafter


218Total

$
337   13.
    OTHER
    ASSETS    December 31,2008


2007Millions of dollars (U.S.)Long-term receivables from customers:Corporation Dominicana de Empresas Electricias Estatales
    (CDEEE)

$
169


$
161Promigas customers


128



113Elektro customers


8



12Furnas






11Other


1



1306



298Net investments in direct financing leases (see Notes 3 and
    4)


63



174Regulatory assets


49



10Deferred income taxes


265



334Investments in debt securities


192



306Restricted cash (Note 7)


49



128Deferred financing costs, net


22



22Other miscellaneous investments


7



10Other deferred charges


160



94Other noncurrent assets


86



59Total

$
1,199


$
1,435   Long-Term Receivables from Customers
  pesos
  Net investment in direct financing lease
 F-26




---



##### 



December 31,2008


2007Millions of dollars (U.S.)Total minimum lease payments to be received

$
440


$
484Less amounts representing executory costs


(180
)


(208
)Total minimum lease receivables


260



276Less allowance for uncollectibles


(9
)


(40
)Less unearned income


(178
)


(82
)Less estimated residual value of leased properties






20Net investments in direct financing leases


73



174Current portion


10



Long-term portion

$
63


$
174     Investments in debt securities
  For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Available-for-sale
    debt securities:Matured debt securities included in debt restructuring
    agreements:Fair value at beginning of period

$
282


$
268


$
225Purchases of additional securities in exchange for AEI common
    stock






82



Purchases of additional securities for cash






5



21Sale of existing securities


(38
)






(12
)Conversion to equity securities






(74
)


Realized loss on sale of securities


(14
)






Unrealized net gain (loss) affecting other comprehensive income


(62
)


1



34Fair value at end of period


168



282



268Corporate debt securities:Fair value at beginning of period






24



24Unrealized net loss affecting other comprehensive income






(24
)


Fair value at end of period










24Total
    available-for-sale
    securities, end of period


168



282



292Held-to-maturity
    debt securities:Participation in commercial bank loan portfolio


22



22



Promissory notes


2



2



2Total
    held-to-maturity
    securities, beginning and end of period


24



24



2Total

$
192


$
306


$
294   available-for-sale available-for-sale
  available-for-sale available-for-sale
 F-27




---



##### 



14.
    ACCRUED
    AND OTHER LIABILITIES    December 31,2008


2007Millions of dollars (U.S.)Employee liabilities

$
48


$
45Deferred income taxes


10



56Other taxes:Value added taxes


40



42Taxes on revenues


13



18Withholding taxes


25



19Governmental taxes


11



11Other


31



14Interest


42



30   December 31,2008


2007Millions of dollars (U.S.)Customer deposits


64



14Dividends payable to noncontrolling interests


17



15Regulatory liabilities


35



89Tax and legal contingencies


19



15Cost Increase Protocol payable  Trakya (see
    Note 17)


37



Deferred revenues


32



22Other accrued expenses


47



55Other


123



80Total

$
594


$
525   15.
    LONG TERM
    DEBT    Variable or

Interest

Final

December 31,Fixed Rate

Rate (%)

Maturity

2008


2007Millions of dollars (U.S.), except interest ratesDebt held by Parent Company:Senior credit facility, U.S. dollar

Variable

4.5

2014

$
936


$
979Revolving credit facility, U.S. dollar

Variable

3.8

2012


390



345Synthetic revolving credit facility, U.S. dollar

Variable

3.5

2012


105



105PIK note, U.S. dollar

Fixed

10.0

2018


352



319Debt held by consolidated subsidiaries:Cálidda, U.S. dollar

Variable

2.1 - 5.3

2009 - 2015


87



82Cuiabá, U.S. dollar notes

Fixed

5.9

2015 - 2016


97



99Delsur, U.S. dollar

Variable

6.5 - 7.0

2015


73



100DCL, Pakistan Rupee

Variable

14 - 18.6

2009 - 2019


77



EDEN, U.S. dollar

Variable

4.2

2013


37



44Elektra, U.S. dollar senior notes

Fixed

7.6

2021


99



99Elektra, U.S. dollar debentures

Variable

6.9

2018


20



Elektra, U.S. dollar revolving credit facility

Variable

4.3 - 5.5

2009


25



Elektro, Brazilian realdebentures

Variable

15.5 - 22.8

2011


238



287Elektro, Brazilian realnote

Variable

5.0 - 12.3

2010 - 2020


132



127ENS, Polish Zlotyloans

Variable

7.5 - 8.0

2009 - 2018


67



77Luoyang, Chinese Renminbi

Variable

6.1 - 13.0

2009 - 2016


133



PQP, U.S. dollar notes

Variable

4.2 - 4.9

2015


88



90Promigas, Colombian pesodebentures

Variable

15.1 - 15.9

2011 - 2012


116



129Promigas, Colombian pesonotes

Variable

12.0 - 14.0

2009 - 2011


534



253Promigas, U.S. dollar notes

Variable

4.2 - 5.9

2012


291



26Trakya, U.S. dollar notes

Fixed



2008






26Trakya, U.S. dollar notes

Variable



2008






21Others, U.S. dollar notes and Chinese Renminbi

Fixed and Variable

6.1 - 10.5

2009 -2014


65



563,962



3,264Less current maturities








(547



(749
)Total







$
3,415


$
2,515  F-28




---



##### 



Millions of dollars (U.S.)2009

$
5472010


5002011


5782012


7842013


119Thereafter


1,434Total

$
3,962     Senior Credit Facility
    Payment in Kind (PIK) Notes
 F-29




---



##### 



2009-104%, 2010-106%,
    Cálidda
    Cuiaba
  Delsur
  DCL Rupees
 F-30




---



##### 



Rupees
  Rupees
    EDEN
    Elektra
      Elektro  reais reais reais
   F-31




---



##### 



reais
    December 31,2008CDI


12.3
%IGP-M


9.8
%RGR


0.0
%TJLP


6.2
%   ENS  zloty 20-year 15-month zloty zloty zloty zloty
  Luoyang Renminbi Renminbi
  Renminbi
  PQP
  Promigas peso peso
 F-32




---



##### 



pesos pesos
  peso
    peso peso
    16.
    INCOME
    TAXES      Income Tax Provision
  For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Current:Cayman Islands

$



$



$
Foreign


205



106



64Total current


205



106



64Deferred:Cayman Islands










Foreign


(11
)


87



20Total deferred


(11
)


87



20Provision for income taxes

$
194


$
193


$
84  F-33




---



##### 



Effective Tax Rate Reconciliation
  December 31,2008


2007


2006Statutory tax rate  Cayman Island


0.0
%


0.0
%


0.0
%Foreign tax rate differential


36.4
%


42.0
%


64.7
%Tax credits


0.0
%


0.0
%


(1.1)
%Change in valuation allowance


4.4
%


14.0
%


31.0
%Effective tax rate


40.8
%


56.0
%


97.6
%         For the Years Ended December 31,2008


2007Millions of dollars (U.S.)Unrecognized tax benefit, January 1

$
50


$
51Gross increases, tax positions in prior period


4



5Gross decreases, tax positions in prior period






(12
)Gross increases, tax positions in current period


12



16Settlements






(1
)Lapse of statute of limitations


(5
)


(9
)Unrecognized tax benefit, December 31

$
61


$
50         non-U.S. subsidiaries
  Jurisdiction

YearsArgentina

2004-presentBolivia

2005-presentBrazil

2004-presentColombia

2006-presentDominican Republic

1998-June 2001 and 2004-presentPanama

2006-presentPhilippines

2005-presentPoland

2004-presentTurkey

2004-present    F-34




---



##### 



December 31,2008


2007Millions of dollars (U.S.)Deferred tax assets:Inventory

$
7


$
Goodwill


23



71Accrued expenses


133



244Operating losses and tax credit carryforwards


216



236Reserves


101



Foreign currency and other


5



39Valuation allowance


(193
)


(168
)Total deferred tax assets


292



422Deferred tax liabilities:Fixed assets

$
(158
)

$
(201
)Foreign currency and other


(7
)


(25
)Total deferred tax liabilities


(165
)


(226
)Total deferred tax assets (liabilities)

$
127


$
196       CarryforwardNOL


Tax CreditMillions of dollars (U.S.)2009

$
4


$
2010


9



2011


5



2012


26



2013


14



1Thereafter


27



5Unlimited


125



Total

$
210


$
6    F-35




---



##### 



17.
    OTHER
    LIABILITIES    December 31,2008


2007Millions of dollars (U.S.)Deferred revenue

$
437


$
414Special obligations


192



241Uncertain tax positions (see Note 16)


156



125Notes payable to unconsolidated affiliates


109



120Tax and legal contingencies (see Note 25)


68



81Unfavorable power purchase agreements (see Note 12)


57



65Taxes payable  San Felipe (see Note 25)


66



59Capital lease obligations (see Note 13)


48



30Cost Increase Protocol payable  Trakya


25



12Interest


22



22Pension and other postretirement benefits (see Note 24)


14



10Regulatory liabilities


25



34Other


112



63Total

$
1,331


$
1,276   Special obligations 
  Capital lease obligations 
    Millions ofdollars (U.S.)2009

$
122010


182011


112012


162013


6Thereafter


8Future minimum lease payments


71Less amount representing interest


14Total

$
57   Cost Increase Protocol payable 
  18.
    LEASE
    COMMITMENTS   F-36




---



##### 



DirectFinancing


OperatingMillions of dollars (U.S.)2009

$
10


$
1742010


1



712011


1



722012


1



682013


1



68Thereafter


59



151Total

$
73


$
604       Millions ofdollars (U.S.)2009

$
162010


132011


112012


102013


10Thereafter


31Total

$
91   19.
    FAIR
    VALUE OF FINANCIAL INSTRUMENTS  Fair Value Measurements
    (SFAS No. 157),
    Level 1
  Level 2
  Level 3 and/or
 F-37




---



##### 



Fair Value Measurement at Reporting Date UsingFinal Quoted Pricesin Active Markets


Significant Other


Significantfor Identical Assets


Observable Inputs


UnobservableDecember 31, 2008


(Level 1)


(Level 2)


Inputs (Level 3)Millions of dollars (U.S.)Available-for-sale securities

$
168


$



$
168


$
Derivatives


1







1



Total assets

$
169


$



$
169


$
Derivatives

$
64


$



$
64


$
Total liabilities

$
64


$



$
64


$
   Available for-sale securities
         F-38




---



##### 



Derivative Instruments
  Interest Rate Swaps
    zloty 15-month
  Net Investment Hedges real Peso real Peso
    real Peso
  Fair Value of Financial Instruments
 F-39




---



##### 



December 31,2008


2007Carrying





CarryingValue


Fair Value


Value


Fair ValueMillions of dollars (U.S.)Assets:Notes receivable from unconsolidated subsidiaries

$
120


$
123


$
122


$
120Investment in debt securities, including available-for-sale
    securities


192



192



306



306Foreign currency forwards and swaps


1



1



2



2Liabilities:Interest rate swaps


64



64



25



25Long-term debt, including current maturities


3,962



3,753



3,264



3,292     20.
    PER SHARE
    DATA    For the Years Ended December 31,2008


2007


2006Basic earnings (loss) per share attributable to AEI:Income (loss) from continuing operations attributable to AEI
    (millions of U.S. dollars)

$
158


$
87


$
(18
)Average number of common shares outstanding (millions)


218



209



202Income (loss) from continuing operations per share attributable
    to AEI

$
0.73


$
0.42


$
(0.09
)Effect of dilutive securities:Stock options (millions of options)










Restricted stock (millions of shares)






1



Dilutive earnings (loss) per share attributable to AEI

$
0.73


$
0.42


$
(0.09
)      F-40




---



##### 



21.
    ACCUMULATED
    OTHER COMPREHENSIVE INCOME (LOSS)    December 31,2008


2007Millions of dollars (U.S.)Cumulative foreign currency translation

$
(131
)

$
212Unrealized derivative losses


(68
)


(25
)Unamortized actuarial and investment gains


54



22Unrealized gain (loss) on available-for-sale securities


(59
)


6Total

$
(204
)

$
215   22.
    RELATED-PARTY
    TRANSACTIONS    Interest expense  shareholders 
  Interest income from unconsolidated
    subsidiaries
    23.
    COMPENSATION
    PLANS  Annual Incentive Plans
  2007 Equity Incentive Plan 10-year 10-year
 F-41




---



##### 



2008


2007Weighted Average Fair Value of Grants

$
5.39


$
4.61Expected Volatility


25.37
%


25.00
%Risk-Free Interest Rate


3.20
%


4.00
%Dividend Yield


0.00
%


0.00
%Expected Life


6.58 Years



7 Years         Weighted- Average


Aggregate IntrinsicRestricted Stock

Shares


Grant Price


Value(Thousands)





(Millions of dollars (U.S.))Granted during 2007


500


$
12.63


$
6Vested during 2007










Nonvested, January 1, 2008


494


$
12.65


$
6Granted


238



16.03



4Forfeited


(47
)


13.78



(1
)Exercised


(5
)


11.54



Vested


(44
)


12.75



Nonvested, December 31, 2008


636


$
13.83


$
9      F-42




---



##### 



Weighted-Average


Weighted-Average


AggregateFair Value of


Exercise Price of


IntrinsicStock Options

Options


Grants


Grants


Value(Thousands)








(Millions ofdollars (U.S.))Exercised during 2007


(31
)

$
4.11


$
11.18


$
Vested during 2007














Outstanding, January 1, 2008


1,657


$
4.62


$
12.52


$
8Granted


1,313



5.39



16.03



7Forfeited


(241
)


4.87



13.86



(1
)Exercised














Outstanding, December 31, 2008


2,729


$
4.97


$
14.09


$
14Exercisable as of December 31, 2008


161


$
4.61


$
12.50


$
1       2004 Stock Incentive Plans
  36-month
      Weighted-


AggregateAverage


IntrinsicUnits/Shares


Grant Price


Value(Thousands)





(Millions ofdollars (U.S.))Total Time-Based restricted shares vested during 2007


586


$
7.99


$
5Total Performance-Based restricted shares vested during 2007


2,179


$
7.99


$
17     Sales Incentive Plan
 F-43




---



##### 



12-month
    Average


AggregateWeighted-


IntrinsicRestricted Stock Issued in Lieu of Second Sales Incentive
    Plan Payment

Shares


Grant Price


Value(Thousands)





(Millions ofdollars (U.S.))Vested during 2007


(312
)

$
7.99


$
(2
)Nonvested, January 1, 2008


320


$
7.99


$
3Exercised


(103
)


7.99



(1
)Forfeited


(16
)


7.99



Vested


(201
)


7.99



(2
)Nonvested, December 31, 2008





$



$
   24.
    PENSION
    AND OTHER POSTRETIREMENT BENEFITS  U.S.-based U.S.-based
    Elektro Plans
   F-44




---



##### 



December 31,2008


2007Millions of dollars (U.S.)Projected benefit obligation

$
224


$
307Accumulated benefit obligation


213



285Fair value of plan assets


292



325Prepaid pension asset


68



18       December 31,2008


2007Millions in dollars (U.S.)Change in projected benefit obligation:Benefit obligation, beginning of period

$
307


$
229Service cost


4



3Interest cost


32



31Actuarial gains and losses


32



9Benefits paid


(15
)


(12
)Effect of foreign exchange rate change


(69
)


47Change in assumptions


(67
)


Benefit obligation  end of period

$
224


$
307Change in plan assets:Fair value of plan assets, beginning of period

$
325


$
222Actual return on plan assets


72



65Contributions by employer


1



2Contributions by plan participants


1



2Benefits paid


(15
)


(12
)Effect of foreign exchange rate change


(92
)


46Fair value of plan assets  end of period

$
292


$
325Funded status at end of year

$
68


$
18Amounts recognized on the balance sheet  prepaid
    pension asset

$
68


$
18Net amount recognized at end of year

$
68


$
18     For the Years Ended December 31,2008


2007


2006Millions of dollars (U.S.)Service cost

$
4


$
3


$
1Interest cost


32



31



6Expected employee contribution


(2
)


(2
)


Expected return on plan assets for the period


(38
)


(33
)


(7
)Total net periodic pension (benefit) cost

$
(4
)

$
(1
)


  F-45




---



##### 



2008


2007Periodic


Periodic


Periodic


2006Benefit


Pension


Benefit


Pension


Benefit


PensionObligation


Cost


Obligation


Cost


Obligation


CostWeighted-average of discount rates


12.37
%


12.37
%


10.24
%


10.24
%


11.30
%


11.30
%Weighted-average rates of compensation increase


7.63
%


7.63
%


7.12
%


7.12
%


8.15
%


8.15
%Weighted-average expected long-term rate of return on plan assets






13.29
%






11.28
%






12.35
%       December 31,2008


2007Fixed income


75.7
%


70.7
%Equities


17.3
%


21.7
%Real estate


3.6
%


4.0
%Loans to participants


3.4
%


3.6
%Total


100.0
%


100.0
%       Millions ofdollars (U.S.)Expected employer contribution in 2009

$
1Expected benefit payments:2009


122010


132011


142012


162013


182014  2018


126   25.
    COMMITMENTS
    AND CONTINGENCIES    2009


2010


2011


2012


2013


Thereafter


TotalMillions of dollars (U.S.)Power
    commitments(1)

$
790


$
865


$
876


$
879


$
755


$
7,736


$
11,901Fuel
    commitments(2)


474



462



427



388



446



2,503



4,700Equipment
    commitments(3)


22



10



4



3



34



83



156Transportation
    commitments(4)


55



56



59



50



35



244



499FIN 48 obligations, including interest and penalties


11



5















101



117Other commitments


7



2



1



1











11Total

$
1,359


$
1,400


$
1,367


$
1,321


$
41,270


$
10,667


$
17,384     (1)
    
    Represents
    take-or-pay
    and other commitments to purchase power of various quantities
    from third parties. Power purchases under long-term commitments
    for the year ended December 31, 2008, 2007 and 2006 totaled
    $716 million, $917 million and $232 million,
    respectively. F-46




---



##### 



(2)
    
    Represents
    take-or-pay
    and other commitments to purchase fuel of various quantities
    from third parties. Fuel purchases under long-term commitments
    for the year ended December 31, 2008, 2007 and 2006 totaled
    $541 million, $425 million and $107 million,
    respectively.(3)
    
    Represents commitments of various
    duration for parts and maintenance services provided by third
    parties, which are expensed during the year of service.(4)
    
    Represents a commitment to purchase
    gas transportation services from an unconsolidated affiliate and
    third parties.  Letters of Credit
    Restrictions on Transfer of Net Assets
  Political
    Matters:
  Turkey
  Poland zloty
  Bolivia/Brazil
 F-47




---



##### 



30-day
  Litigation/Arbitration:
      Elektro
     F-48




---



##### 



EPE
  San Felipe Limited Partnership
    DCL
 F-49




---



##### 



26.
    SEGMENT
    AND GEOGRAPHIC INFORMATION    Power Distribution  and/or
  Generation 
  Natural Gas Transportation and Services  and/or
  Natural Gas Distribution 
 F-50




---



##### 



Retail Fuel 
  Headquarters and Other 
  Eliminations 
    As of and for the Year Ended







Nat. Gas.


Nat. Gas.





HeadquartersDecember 31, 2008

Power Dist.


Power Gen.


Trans.


Dist.


Retail Fuel


and Other


Eliminations


TotalMillions of dollars (U.S.)Revenues

$
2,217


$
1,175


$
202


$
584


$
5,137


$
22


$
(126
)

$
9,211Equity income from unconsolidated affiliates


68



12



27



11



1







(2
)


117Operating income


427



15



128



104



218



(36
)


(43
)


813Interest income


54



14



6



2



9



3







88Interest expense


134



45



44



19



53



136



(53
)


378Depreciation and amortization


138



24



21



18



61



6







268Capital expenditures


183



16



12



61



86



14







372Equity method investments in unconsolidated affiliates


628



65



35



23



8











759Goodwill


53



54



26



144



323



14







614Total assets as of December 31, 2008


3,304



1,897



924



1,110



1,323



3,865



(3,470
)


8,953   As of and for the Year Ended







Nat. Gas.


Nat. Gas.





HeadquartersDecember 31, 2007

Power Dist.


Power Gen.


Trans.


Dist.


Retail Fuel


and Other


Eliminations


TotalMillions of dollars (U.S.)Revenues

$
1,746


$
874


$
199


$
352


$
160


$
19


$
(134
)

$
3,216Equity income from unconsolidated affiliates


2



11



39



13



11











76Operating income


373



77



128



85



49



286



(421
)


577Interest income


58



27



7



2



2



14







110Interest expense


90



41



42



14



12



143



(36
)


306Depreciation and amortization


139



42



20



8



3



5







217Capital expenditures


168



3



9



24



37



8







249Equity method investments in unconsolidated affiliates


698



14



106



26



38











882Goodwill


53



33



27



117



158



14







402Total assets as of December 31, 2007


3,732



1,433



1,138



913



384



4,170



(3,917
)


7,853   For the Year Ended







Nat. Gas.


Nat. Gas.





HeadquartersDecember 31, 2006

Power Dist.


Power Gen.


Trans.


Dist.


Retail Fuel


and Other


Eliminations


TotalMillions of dollars (U.S.)Revenues

$
685


$
278


$
24


$



$



$
1


$
(42
)

$
946Equity income from unconsolidated affiliates


26



21



10







4



(24
)






37Operating income


151



60



21







3



(7
)


(77
)


151Interest income


20



11















40







71Interest expense


27



18



5







2



97



(11



138Depreciation and amortization


47



9



2







1











59Capital expenditures


71



1











4











76  F-51




---



##### 



RevenuesFor the Years


Operating Income For the YearsEnded December 31,


Ended December 31,2008


2007


2006


2008


2007


2006Millions of dollars (U.S.)Colombia

$
3,926


$
563


$



$
371


$
198


$
3Brazil


1,503



1,406



390



185



220



120Chile


1,311











68







Panama


808



389



371



44



57



37Turkey


416



337



116



24



46



38Guatemala


206



168



48



23



42



12Dominican Republic


211



139



145



11



19



22Ecuador


126











2







Argentina


122



52







14



8



China


104



8







(19
)


(6
)


Other


478



154



(124
)


90



(7
)


(81
)Total

$
9,211


$
3,216


$
946


$
813


$
577


$
151   Property, Plant & Equipment, NetDecember 31,2008


2007Millions of dollars (U.S.)Colombia

$
714


$
614Brazil


1,281



1,482Chile


88



Panama


272



242Turkey


132



143Guatemala


48



37Dominican Republic


24



23Ecuador


14



Argentina


88



89China


256



36Other


607



369Total

$
3,524


$
3,035   27.
    SUBSEQUENT
    EVENTS  Nicaragua Energy Holdings 
  Subic build-to-operate-transfer
 F-52




---



##### 



SCHEDULE II
 VALUATION
    AND QUALIFYING ACCOUNTS  Balance at


AdditionsBeginning


Charged to








Deductions


Balance atof the


Costs and


Translation


Acquisitions


Amounts


the End ofMillion of Dollars (U.S.)

Period


Expenses


Adjustment


of Business


Written off


the PeriodAllowance for lease receivables:For the year ended December 31, 2006

$



$



$



$



$



$
For the year ended December 31, 2007






40















40For the year ended December 31, 2008


40



44



(3
)


10



(82
)(a)


9Allowance for accounts receivable:For the year ended December 31, 2006

$
5


$
5


$



$
35


$
(6
)

$
39For the year ended December 31, 2007


39



9



5



5



(12
)


46For the year ended December 31, 2008


46



27



(8
)


31



(27
)


69     (a)
    
    Due to termination of lease
    accounting, the lease receivable and associated allowance have
    been removed from the Companys Consolidated Balance Sheet
    and the amounts were recorded at the net carrying amount in the
    property, plant and equipment account. See Note 4. F-53




---



##### 



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    c/o AEI
       Share-based Payment, Noncontrolling Interests in
    Consolidated Financial Statements  an Amendment of
    ARB No. 51
        Noncontrolling Interests in Consolidated
    Financial Statements  an amendment of ARB
    No. 51
 F-54




---



##### 



PRISMA
    ENERGY INTERNATIONAL INC. AND SUBSIDIARIES
    (PREDECESSOR)
 CONSOLIDATED
    STATEMENT OF INCOME  249 DayPeriod EndedSeptember 6, 2006(In millions)Revenues

$
1,414Cost of sales (excluding depreciation shown separately
    below)


750Operating expenses:Operations, maintenance, and general and administrative expenses


233Depreciation and amortization


63Taxes other than income


32Loss on disposition of assets


6Total


334Equity earnings from unconsolidated affiliates


35Operating Income


365Other income (expense):Interest income from unconsolidated affiliates


2Interest income


80Interest expense


(70)Interest expense  shareholder


(26)Foreign exchange gains  net


17Gain on early retirement of debt


Other income (expense)  net


26Total


29Income before income taxes


394Provision for income taxes


209Net income


185Less: net income  noncontrolling Interests


21Net income attributable to PEI

$
164Basic earnings per share:Net income attributable to PEI

$
159.39Diluted earnings per share:Net income attributable to PEI

$
71.96    F-55




---



##### 



PRISMA
    ENERGY INTERNATIONAL INC. AND SUBSIDIARIES
    (PREDECESSOR)
 CONSOLIDATED
    STATEMENT OF SHAREHOLDERS EQUITY  PEIAccumulatedInvested





Additional


Retain


OtherCapital


Common


Paid-In


Earnings


Comprehensive


Noncontroling


Total


Comprehensive(Predecessor)


Stock


Capital


(Deficits)


Income (Loss)


Interest


Equity


Income(In millions)BALANCE  January 1, 2006

$



$



$
3,017


$
512


$
(1,058
)

$
205


$
2,676Net income














164







21



185


$
185Distributions to shareholders










(740
)


(802
)






(13
)


(1,555
)Compensation under 
    stock incentive plan










11















11Dividend of portion of subsidiary to parent










(53
)


(2
)


3







(52
)Cumulative transaction adjustments


















80







80



80Net gains (losses) from cash flow hedging activitiesChange in fair value of cash flow hedge


















2







2



2Reclassification to earnings


















1







1



1Income Tax


















(1
)






(1
)


(1
)Change in fair value of net investment hedge


















(2
)






(2
)


(2
)Minimum pension liability accrual, net of income tax of
    $1 million


















(2
)






(2
)


(2
)Comprehensive income





























$
263BALANCE  September 6, 2006

$



$



$
2,235


$
(128
)

$
(977
)

$
213


$
1,343    F-56




---



##### 



PRISMA
    ENERGY INTERNATIONAL INC. AND SUBSIDIARIES
    (PREDECESSOR)
 CONSOLIDATED
    STATEMENT OF CASH FLOWS  249 DayPeriod EndedSeptember 6, 2006(In millions)Cash flows from operating activities:Net income

$
185Adjustments to reconcile net income to net cash provided by
    operating activities:Depreciation and amortization


63Increase in deferred revenue


57Deferred income taxes


86Equity earnings from unconsolidated affiliates


(35)Distributions from unconsolidated affiliates


19Foreign exchange gains  net


(17)Loss on disposition of assets


6Changes in operating assets and liabilities:Trade receivables


(2)Accounts payable  trade


46Accrued income taxes


43Accrued interest


(2)Inventory


2Prepayments


(15)Regulatory assets and liabilities


17Other operating activities


(5)Net cash provided by operating activities


448Cash flows from investing activities:Capital expenditures


(72)Increase in restricted cash  net


(377)Other investing activities


1Net cash provided by investing activities


(448)Cash flows from financing activities:Issuance of long  term debt


937Repayment of long  term debt


(80)Increase in short  term borrowing


89Net distributions to Shareholder


(846)Capital Contributions


(727)Dividends paid to noncontrolling interest


(13)Debt issue costs


10Other financing activities


50Net cash used in financing activities


(580)Effect of exchange rate changes


22Net cash flow


(558)Cash and cash equivalents  beginning of period


1,046Cash and cash equivalents  end of period

$
488    F-57




---



##### 



PRISMA
    ENERGY INTERNATIONAL INC. AND SUBSIDIARIES
 NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    FOR THE 249 DAY PERIOD ENDED SEPTEMBER 6, 2006  1.
    ORGANIZATION
    AND FORMATION                 F-58




---



##### 



OwnershipInterest(a)

Location ofCompany Name

(%)

Operations

DescriptionELEKTRO  Eletricidade e Serviços S.A.
    (Elektro)

99.7

Brazil

Power distributionEPE  Empresa Produtora de Energia Ltda.
    (EPE)(b)

50.0

Brazil

Power generationGasOcidente do Mato Grosso Ltda.
    (Gasmat)(b)

50.0

Brazil

Gas pipelineGasOriente Boliviano Ltda.
    (Gasbol)(b)

50.0

Bolivia

Gas pipelineTransborder Gas Services Ltd.
    (TBS)(b)

50.0

Brazil and Bolivia

Purchase and sale of natural gas for EPETransredes  Transporte de Hidrocarburos S.A.
    (Transredes)

25.0

Bolivia

Gas and liquids pipelineGas Transboliviano S.A.
    (GTB)(c)

17.0

Bolivia

Gas pipelineTransportadora Brasileira Gasoduto Bolivia-Brasil
    S/A  TBG
    (TBG)(c)

4.0

Brazil

Gas pipelinePromigas S.A. E.S.P. (Promigas)

9.9

Colombia

Diversified gas transportation and distributionVengas, S.A. (Vengas)

97.8

Venezuela

LPG transportation and distributionAccroven SRL (Accroven)

49.3

Venezuela

Gas extraction, fractionation and storageBahía Las Minas Corp. (BLM)

51.0

Panama

Power generationPuerto Quetzal Power LLC (PQP)

55.0

Guatemala

Power generationEmpresa Energetica Corinto Ltd. (Corinto)

35.0

Nicaragua

Power generationSmith/Enron Cogeneration Limited Partnership
    (SECLP)(d)

85.0

Dominican Republic

Power generationSmith/Enron O&M Limited
    Partnership(d)

50.0

Dominican Republic

Power generationTrakya Elektrik Üretim ve Ticaret A.S. (Trakya)

59.0

Turkey

Power generationElektrocieplownia Nowa Sarzyna Sp. z.o.o.
    (Nowa Sarzyna)

100.0

Poland

Power generationSubic Power Corp.

50.0

Philippines

Power generation     (a)
    
    Approximate ownership interests as
    of date of contribution to Prisma Energy. The ownership interest
    in PQP was increased to 55% in April 2005. The ownership in
    Promigas was reduced from 42.94% to 9.9% as of May 25,
    2006, following the distribution of 33.04% back to Enron.(b)
    
    The companies comprise an
    integrated operation referred to collectively as
    Cuiaba.(c)
    
    Ownership interest based on direct
    ownership. Total ownership including indirect interests held
    through Transredes is 29.75% for GTB, and 7.0% for TBG.(d)
    
    Ownership interest of 35% held by
    Vengas was contributed to Prisma Energy in August 2004 in
    connection with the contribution of Vengas. An additional 50%
    interest was contributed in May 2006 by Enron. This was
    accounted for as a transfer between entities under common
    control.  2.
    BASIS OF
    PRESENTATION  Noncontrolling Interests in
    Consolidated Financial Statements  an amendment
    of ARB No. 51
   F-59




---



##### 



and/or
  3.
    SIGNIFICANT
    ACCOUNTING POLICIES  Principles of Consolidation
  Consolidation of
    Variable Interest Entities, an Interpretation of ARB
    No. 51
  Use of Estimates
  Foreign Currency Foreign Currency
    Translation
 F-60




---



##### 



Revenue Recognition
    Accounting for Leases No. 01-8, Determining When an Arrangement Contains a Lease
    Deferred Revenue kilowatt-hour kilowatt-hour
  Earnings Per Share
 F-61




---



##### 



249 DayPeriod EndedSeptember 6, 2006Basic earnings per share computationNumeratorNet income attributable to PEI (in millions)

$
164DenominatorAverage number of common shares outstanding (in millions)


1Net income attributable to PEI per share

$
159.39Diluted earnings per share computationNumeratorNet income attributable to PEI (in millions)

$
164DenominatorAverage number of common shares outstanding (in millions)


2Net income attributable to PEI per share

$
71.96   Property, Plant, and Equipment
    Power generation equipment


5 - 30 yearsPipelines


21 - 40 yearsMachinery and equipment


5 - 50 years   Deferred Financing Costs
  Income Taxes Accounting for Income Taxes
  Derivatives Accounting for
    Derivative Instruments and Hedging Activities
  Pension Benefits Employers Accounting for
    Pensions
  Stock-Based Compensation
 F-62




---



##### 



Share-Based Payment
  Regulatory Assets and Liabilities Accounting for the Effects of Certain
    Types of Regulation
  4.
    CASH AND
    CASH EQUIVALENTS    249 DayPeriod EndedSeptember 6, 2006(U.S. dollars in millions)Cash paid during the period for:Interest

$
95Income taxes


64     5.
    REGULATORY
    ASSETS AND LIABILITIES  Elektro operates in the Brazilian electricity sector, which
    is subject to regulation by Agência Nacional de Energia
    Elétrica
    Deferred Tariff Increase
  Recovery of Losses From Rationing Program No. 92-7, Accounting by Rate Regulated Utilities for the Effects of
    Certain Alternative Programs
  Free Energy
   F-63




---



##### 



Parcel A
  Tracking Account for Variations in Parcel A
  Recoverable Revenue Taxes
  Energy Savings Program
  Low Income Customers
  6.
    INVESTMENT
    IN DIRECT FINANCING LEASE  Accounting for Leases No. 01-8, Determining When An Arrangement Contains a Lease (EITF 01-8), EITF 01-8
   F-64




---



##### 



7.
    INVESTMENTS
    IN UNCONSOLIDATED AFFILIATES    249 DayPeriod EndedSeptember 6, 2006(U.S. dollars in millions)Accroven

$
3GTB


4Promigas


14Subic


4Transredes


10$
35   Consolidation of Variable Interest Entities, an
    Interpretation of ARB No. 51
    249 DayPeriod EndedSeptember 6, 2006(U.S. dollars in millions)Statement of IncomeRevenues

$
452Net income


109     8.
    LONG TERM
    DEBT    2005(U.S. dollars in millions)Elektro, Brazilian real debentures, 11.80% to 20.65%

$
321Elektro, Brazilian real notes, 5.00% to 15.75%


55Trakya, U.S. dollar notes, 7.9% to 9.8%


139Cuiaba, U.S. dollar notes to other shareholders, 0% to 10%


123Nowa Sarzyna, U.S. dollar loans, 6.28%


91PQP, U.S. dollar notes, 6.47% to 10.66%


70BLM, U.S. dollar notes, 7.81% to 8.31%


41BLM, short term financing


6Vengas, Venezuelan bolivar loans, 15.4%


19Other


5    F-65




---



##### 



Elektro
      2005TJLP


9.75
%Selic


19.05CDI


19.00RGR


   Trakya
  Cuiaba
  Nowa Sarzyna
  PQP
 F-66




---



##### 



BLM
    Vengas
    (U.S. dollars in millions)2006

$
1222007


932008


822009


1402010


139Thereafter


294Total

$
870   9.
    INTEREST
    INCOME       F-67




---



##### 



10.
    OTHER
    INCOME (EXPENSE)  NET  249 DayPeriod EndedSeptember 6, 2006(U.S. dollars in millions)Income from right of reimbursement

$
45Expenses from interest and penalties


(6
)Write-off of loan to related party


(14
)Other  net


1$
26     11.
    INCOME
    TAXES    Income Tax Provision
  249 DayPeriod EndedSeptember 6, 2006(U.S. dollars in millions)Current:Cayman Islands

$
Foreign


125Total current


125Deferred:Cayman Islands


Foreign


84Total deferred


84Provision for income taxes

$
209     Effective Tax Rate Reconciliation
  249 DayPeriod EndedSeptember 6, 2006Statutory tax rate  Cayman Island



%Taxes of foreign earnings


53.05Tax credits


Valuation allowance and other adjustments


Effective tax rate


53.05
%    F-68




---



##### 



Accounting for Contingencies
      249-day
  12.
    RELATED
    PARTY TRANSACTIONS             F-69




---



##### 



and/or
    249-day
  Restrictive Covenants 249-Day
  13.
    COMPENSATION
    PLANS  Annual Incentive Plans
 F-70




---



##### 



Long-Term Incentive Plans
  Organization and
    Formation
        36-month
  36-month
 F-71




---



##### 



AggregateWeighted-Average

IntrinsicUnits

Grant Price

Value(In millions)Beginning of Period, December 31, 2005

144,640

$     25.72

$     4Granted

155,646

32.05

5ExercisedForfeitedOutstanding at September 6, 2006

300,286

$     28.90

$     9Exercisable at September 6, 2006

153,895

$     28.52

$     4     Weighted-AveragePerformance-Based Restated Units

Units

Grant PriceNonvested, Dec. 31, 2005

503,752

$
25.62Granted

601,733


31.28Exercised




Forfeited




Vested at September 6, 2006



$
Nonvested at September 6, 2006

1,105,485

$
28.70     Weighted-AverageWeighted-Average


RemainingShare Units Outstanding

Units


Grant Price


Contractual Life(In Years)Performance based


1,105,485


$
28.70



.47Time based


300,286



28.90



.93Total values at September 6, 2006


1,405,771


$
28.74



.58    F-72




---



##### 



Sales Incentive Plan
  Organization and Formation
  14.
    BENEFIT
    PLANS  Elektro Plans
    Other Plans U.S.-based
    15.
    FAIR
    VALUE OF FINANCIAL INSTRUMENTS   F-73




---



##### 



16.
    COMMITMENTS  Power Purchases
         F-74




---



##### 



(U.S. dollars in millions)2006

$
4692007


4622008


4682009


3742010


398Thereafter


3,347Total

$
5,518   Fuel Purchases take-or-pay take-or-pay
  take-or-pay 20-year
  take-or-pay
      (U.S. dollars in millions)2006

$
2872007


2952008


2832009


2912010


282Thereafter


2,482Total

$
3,920   Gas Transportation Agreement 25-year ship-or-pay.
  Equipment
  Other
 F-75




---



##### 



17.
    CONTINGENCIES  Letters of Credit
          Political
    Matters:
  Turkey
   F-76




---



##### 



Bolivia
  BLM
  Litigation:
    Elektro
   F-77




---



##### 



Promigas
  SECLP Limited Partnership
  18.
    RISKS AND
    UNCERTAINTIES  Regulatory, Political and Operations Risk 
        Concentration of Customers and Suppliers 
  19.
    SEGMENT
    AND GEOGRAPHIC INFORMATION   F-78




---



##### 



Power Distribution and/or
  Power Generation
  Natural Gas Transportation and Services and/or
  Natural Gas Distribution
  Retail Fuel
  and/or and/or
 F-79




---



##### 



249 Days EndedSeptember 6, 2006(In millions)Power Distribution

$
735Power Generation


632Natural Gas Transportation


53Natural Gas Distribution


Retail Fuel


47Headquarter and Other


(53
)Total Revenues

$
1,414     Power


Power


Nat. Gas.


Nat. Gas.


Retail


Headquarters249 Days Ended September 6, 2006

Dist.


Gen.


Trans.


Dist.


Fuel


and Other


Total(In millions)Operating income

$
228


$
118


$
43


$
3


$
11


$
(38
)

$
365Equity in earnings






4



17



3



4



7



35Depreciation/Amortization


25



29



5







3



1



63Interest income


48



19



4











11



82Interest expense


(59
)


(34
)


(15
)






(6
)


18



(96
)Capital expenditures


(67
)


(1
)










(4
)






(72
)     Revenues249 Days EndedSeptember 6, 2006Brazil

$
875Dominican Republic


100Panama


78Guatemala


97Turkey


233Other


31Total

$
1,414   20.
    SUBSEQUENT
    EVENTS  Acquisition of PEI
  
    Stage 1 (completed May 25, 2006) AEIL
    acquired 24.26% of the voting capital and 49% of the economic
    interest in PEI.
    Stage 2 (completed September 7, 2006) AEIL acquired the remaining 75.74% of the voting
    capital and 51% of the economic interest.   F-80




---



##### 



Promigas
    SECLP
  Elektro
  Trakya
  Sociedad de Inversiones en Energía (SIE)
  PQP
  Corinto
  Vengas
  Cuiaba Integrated Project
 F-81




---



##### 



Poland
    Elektro
   F-82




---



##### 



Item 19.  Exhibits
  Form 20-F/A,
  
    should not in all instances be treated as categorical statements
    of fact, but rather as a way of allocating the risk to one of
    the parties if those statements prove to be inaccurate;
    have been qualified by disclosures that were made to the other
    party in connection with the negotiation of the applicable
    agreement, which disclosures are not necessarily reflected in
    the agreement;
    may apply standards of materiality in a way that is different
    from what may be viewed as material to you or other
    investors; and
    were made only as of the date of the applicable agreement or
    such other date or dates as may be specified in the agreement
    and are subject to more recent developments.  Form 20-F/A http://www.sec.gov
  Exhibit No.

Description1.1
*

Amended and Restated Articles of Association of AEI dated
    December 20, 20071.2
*

Amended and Restated Memorandum of Association of AEI dated
    December 20, 20072.1
*

Amended and Restated Registration Rights Agreement by and among
    AEI and certain Investors dated December 29, 20064.1
**

Amended and Restated Credit Agreement, dated June 6, 2008,
    among AEI, AEI Finance Holding LLC, various financial
    institutions as lenders, Credit Suisse, Cayman Islands Branch,
    JP Morgan Chase Bank, N.A.4.2
*

AEI 2007 Incentive Plan effective as of January 23, 2007,
    as amended on August 23, 20074.3
*

2005 Prisma Energy International Inc. Sales Incentive Plan
    effective as of August 18, 2005 as amended on May 22,
    20064.4
*

2004 Prisma Energy International Inc. Stock Incentive Plan
    effective as of September 30, 2004 as amended on
    August 18, 2005 and May 22, 20064.5
*

Distribution Concession Contract No. 187/98, dated
    August 27, 1998, between ANEEL and Elektro Eletricidade e
    Servicos S.A., as amended4.6
*

Distribution First Amendment to Concession Contract
    No. 187/98, dated December 14, 1999, between ANEEL and
    Elektro Electricidade e Servicos S.A.4.7
*

Distribution Second Amendment to Concession Contract
    No. 187/98, dated July 12, 2005 between ANEEL and
    Elektro Electridade e Servicos S.A.4.8
*

Distribution Third Amendment to Concession Contract
    No. 187/98, dated December 18, 2007, between ANEEL and
    Elektro Eletricidade e Servicos S.A.4.9
*

Second Amended and Restated Shareholders Agreement, dated
    May 9, 2008, among AEI and the shareholders of AEI
    identified therein4.10
*

2006 Restricted Stock Agreement4.11


Note Purchase Agreement, dated as of May 24, 2007, by and
    among AEI and the Purchaser named therein4.12


First Amendment to the Note Purchase Agreement, dated as of
    [          ],
    2009 by and among AEI and Holders named therein 4




---



##### 



Exhibit No.

Description12.1


Certification of James Hughes, Chief Executive Officer
    (Principal Executive Officer) of AEI, pursuant to 15 U.S.C.
    Section 78(m)(a), as adopted pursuant to Section 302
    of the Sarbanes-Oxley Act of 2002.12.2


Certification of John G. Fulton, EVP, Finance and Treasury
    (Principal Financial Officer) of AEI, pursuant to 15 U.S.C.
    Section 78(m)(a), as adopted pursuant to Section 302
    of the Sarbanes-Oxley Act of 2002.13.1


Certification of James Hughes, Chief Executive Officer
    (Principal Executive Officer) of AEI, pursuant to 18 U.S.C.
    Section 1350 as adopted pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.13.2


Certification of John G. Fulton, EVP, Finance and Treasury
    (Principal Financial Officer) of AEI, pursuant to 18 U.S.C.
    Section 1350 as adopted pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.21


List of Subsidiaries of AEI     *
    
    Previously filed as an exhibit to the Companys
    registration statement on
    Form 20-F
    (File
    No. 000-53606)
    filed with the SEC on March 27, 2009 and incorporated
    herein by reference.**
    
    Previously filed as an exhibit to the Companys annual
    report on
    Form 20-F/A
    (File
    No. 000-53606)
    filed with the SEC on June 17, 2009 and incorporated herein
    by reference. 5




---



##### 



Signatures
  Form 20-F
       By:
    /s/  James
    A. Hughes   Title:
    Chief Executive Officer