PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED AUGUST 24, 2000)

9,200,000 Securities

AES TRUST VII

$3.00 Trust Convertible Preferred Securities ("Preferred Securities")

(Liquidation amount $50 per security) fully and unconditionally guaranteed by
and convertible into Common Stock of

THE AES CORPORATION

     AES Trust VII, a statutory business trust created under the laws of the
state of Delaware, issued and sold 9,200,000 $3.00 Trust Convertible Preferred
Securities ("Preferred Securities"), liquidation preference $50 per security in
transactions exempt from the registration requirements of the Securities Act of
1933, as amended. We filed a registration statement (Registration No.
333-40870) on August 24, 2000 ("Registration Statement"), in order to permit
the holders of the Preferred Securities to resell their Preferred Securities in
offerings registered with the Securities and Exchange Commission. On pages 57
through 59 of the Registration Statement, there is a table that lists:

     (i)  each person selling Preferred Securities in connection with the
          prospectus (the "Selling Holders"); and
     (ii) the number of Preferred Securities beneficially owned by each such
          Selling Holder.

This prospectus supplement, which provides supplemental information to that
Registration Statement, amends certain information relating to the list of
Selling Holders:

     1)   MFS Utilities Fund is added as a Selling Holder that owns 200,800
          Preferred Securities.
     2)   MFS/Sunlife-Utilities Series is added as a Selling Holder that owns
          48,600 Preferred Securities.
     3)   MFS total Return Fund is added as a Selling Holder that owns 16,700
          Preferred Securities.
     4)   MFS-VIT-MFS Utilities Series is added as a Selling Holder that owns
          22,400 Preferred Securities.


     None of such Selling Holders has a material relationship with AES Trust
VII or The AES Corporation except as we have described in the accompanying
prospectus.



THE DATE OF THIS PROSPECTUS SUPPLEMENT IS AUGUST 13, 2002