MINDANAO GRIDPOWER SITUATION UPDATEAs of February 20, 2012

OUTLINE OF PRESENTATION

LAKE ELEVATION

STATUS OF POWER PLANTS

DEMAND & SUPPLY ASSUMPTIONS

POWER PLANTS’ MAINT. SCHEDULE

2012 LOAD CURVE & RESERVE PROFILES

FEB 2012 LOAD TO MAINTAIN MATRIX

2011-2014 POWER PROJECTS

Actual Lake Lanao ElevationAs of February 20, 2012

700

700.2

700.4

700.6

700.8

701

701.2

701.4

M E T E R S

January-March 2011 Lake Elev.700.74m As of 6am Feb 20, 2012

Actual Lake Lanao ElevationAs of February 20, 2012

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC697

697.5

698

698.5

699

699.5

700

700.5

701

701.5

702

699.15m Critical Operating Level

698.15m Agus Plants will Shutdown

2011 Rule Curve

2011 Lake Elevation

2010 Lake Elevation

700.73as of Feb 20, 2012

M E T E R S

Status of Hydro Power Plants As of February 20, 2012

HYDRO PLANTS

INSTALLED CAPACITY, MW

PEAKING CAPABILITY, MW

AGUS 1 80 45

AGUS 2 180 90

AGUS 4 158 127

AGUS 5 55 48

AGUS 6 200 130

AGUS 7 54 27

PULANGI 4 255 168

T O T A L 982 635

Agus 7 unit 2 (27mw) on forced outage since October 28, 2010 Agus 6 unit 2 (25mw) on forced outage since January 15, 2011

Status of Thermal Power PlantsAs of February 20, 2012

THERMAL PLANTS INSTALLED CAPACITY, MW

PEAKING CAPABILITY, MW

MT. APO GEO. 108 97

STEAG STATE POWER 210 200

WMPC 110 80

SPPC 55 50

POWER BARGE 104 32 10

TMI - MOBILE 1 100 *75

TMI - MOBILE 2 100 **48

T O T A L 715 560

PB104 unit 3 - on forced outage since March 2011; PB 104 unit 4 - on PMS February 06-27, 2012WMPC unit 7&8 - on PMS February 13-25, 2012;*75mw - Aggregate Demand delivered by Mobile 1 to customers with BPS contract **48mw - NGCP contracted ASPA with Mobile 2 (until February 28, 2012 only)

Mindanao Grid TotalAs of February 20, 2012

PLANT TYPE INSTALLED CAPACITY, MW

PEAKING CAPABILITY, MW

HYDRO 982 635

COAL 210 200

GEOTHERMAL 108 97

DIESEL 397 263

T O T A L 1,697 1,195

NPC Contracted Demandversus NPC Capacity NominationAs of February 20, 2012

Philippine Milling Corporation (PILMICO) Agusan del Norte Electric Cooperative (ANECO) Agusan del Sur Electric Cooperative (ASELCO) Surigao del Norte Electric Cooperative (SURNECO) Agusan del Sur Electric Cooperative I (SURSECO I) Agusan del Sur Electric Cooperative II (SURSECO II) Davao Light and Power Company (DLPC) Davao del Norte Electric Cooperative (DANECO) Davao Oriental Electric Cooperative (DORECO) Davao del Sur Electric Cooperative (DASURECO) Philippine Sinter Corporation (PSC) South Cotabato Electric Cooperative II (SOCOTECO II)

Contracted Capacity of TMI Customers with ERC PA Approval

2012 TYPICAL LOAD CURVE

TYPICAL DAILY LOAD CURVE

Mindanao Grid2012 Reserve Profiles

Assumptions CY2012 Demand Forecast as per DOE -> 1,347mw System Capability excludes 200mw TMI Power Barges effective

March 2012 IDPP assumed to operate as follows:

• Jul-25mw Aug-35mw• Sep-35mw Oct-50mw • Nov-80mw Dec-100mw

Transfer of 2 power barges from Visayas in Oct. 2012 & Nov. 2012 (firm capability10mw/barge)

Agus 6 unit 2 (25mw) & Agus 7 unit 2 (27mw) on forced outage. Est. time of commencement (ETC) March 2012 for Agus 6 Unit 2 and May 2012 for Agus 7 unit 2.

Hydro Plants' capability based on NPC-Mingen nomination 2012 GOP considered : Pulangi 4 HEP (255mw) total plant

shutdown April 09 – May 09, 2012

2012 Grid Operating Schedule

2012 Maintenance Schedule

1st Quarter 2012 Reserve Profile, MWJanuary-March

2nd Quarter 2012 Reserve Profile, MWApril-June

Pulangi 4 HEP Plant Shutdown April 2012

Agus 4 , Agus 5 & Agus 6 one uniteach on scheduled PMS June 2012

Holy Week

3rd Quarter 2012 Reserve Profile, MWJuly-September

Agus 1 , 5, 6 PMS one unit each Plant & Mt Apo 1 on scheduled PMS June 2012

STEAG unit 1 on scheduled PMS Aug 5-6

4th Quarter 2012 Reserve Profile, MWOctober-December

STEAG unit 1 on scheduled PMS October 06-31

STEAG total plant shutdown

Oct 29-Nov 04

Mindanao Grid 2012 Reserve Profile, MW

REQ. DISPATCHABLE RESERVE

1 2 3 4 5 6 7 8 9 10 11 12

(350)

(250)

(150)

(50)

50

150

250

(40)

(129)

(170)

(345)

(165)

(251)

(139) (147)(131)

(285)

(152)

(81)

REQ. CONTINGENCY RESERVE

REQ. REGULATING RESERVE