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) The number of Preferred Securities to be sold by The Travelers
Indemnity Company listed on the prospectus supplement dated March 12, 2002 is
amended to 73,439

     2) The number of Preferred Securities to be sold by Primerica Life
Insurance Company listed on the prospectus supplement dated March 12, 2002 is
amended to 21,508

     3) The number of Preferred Securities to be sold by The Travelers
Insurance Company Separate Account TLAC listed on the prospectus supplement
dated March 12, 2002 is amended to 4,407

     4) The number of Preferred Securities to be sold by The Travelers
Insurance Company-Life listed on the prospectus supplement dated March 12, 2002
is amended to 36,920

     5) The number of Preferred Securities to be sold by The Travelers Life and
Annuity Company listed on the prospectus supplement dated March 12, 2002 is
amended to 4,086

     6) The number of Preferred Securities to be sold by The Travelers Series
Trust Convertible Bond Portfolio listed on the prospectus supplement dated
March 12, 2002 is amended to 6,000

     7) The number of Preferred Securities to be sold by Managed Asset Trust
listed on the prospectus supplement dated March 12, 2002 is amended to 4,000

     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 MARCH 12, 2002