NGCP FEB 24 2010 ADVISORY

POWER SYSTEM UPDATE as of February 24, 2010

Power transmission utility and system operator National Grid Corporation of the Philippines (NGCP) noted that there has been a slight increase in the power reserves of Luzon grid from 662 MW yesterday to 684 MW today.

This could be attributed to the increased capabilities of Kepco’s Ilijan Plant Block B from 400 MW to 450 MW and Binga Plant (owned by SN Aboitiz Power) from 0 MW to 75 MW. Casecnan Plant of Casecnan Power has also been producing an additional 65 MW for the grid.

With these sufficient reserves, the Luzon grid remains stable and under normal status. Provided all running power plants stay connected and synchronized to the grid, there will not be any outages among Luzon grid customers.

The power grid status today is as follows:

Grid	Available Capacity (in megawatts, MW)	Peak Demand (in megawatts, MW)	Reserves (in megawatts, MW)	Generation Deficiency (in megawatts, MW)
LUZON	7,579	6,895	684	0
VISAYAS	1,117	1,155	0	38
MINDANAO	863	1,220	0	357

To augment the available capacity of Visayas, Luzon will be exporting around 25 MW to 40 MW of power there.

In Mindanao, most hydroelectric power plant units owned and operated by the National Power Corporation (NPC) still have very limited capabilities due to the low water levels at reservoirs. There has been an 80% and 60% reduction in the available capacities of the Agus and Pulangi Plants, respectively.

As a result of the continuing generation deficiency in Mindanao, the system may be forced to undertake load curtailment to ration the available power to load customers in the said grid.

The Agus Plants are running at 137 MW out of total rated capacity of 694 MW while Pulangi Plant is running at 115 MW out of the total rated capacity of 255 MW.

NGCP's "load customers" refer to grid users which require the supply and delivery of electricity for their own use or for distribution purposes. Distribution utilities (i.e. electric cooperatives and private and government-owned utilities), some large industries, and directly connected government and non-government entities are some of NGCP's "load customers."

Household customers are advised to coordinate with distribution utilities in their area for information on the schedule and areas to be affected by the power interruptions.

NGCP will continue to monitor power grid conditions. As System Operator, it operates the power system or grid in accordance with the Philippine Grid Code. It is also the country's only utility responsible for transmitting high-voltage power from generators to distributors. NGCP does not own nor operate and maintain any power generation and distribution facilities. ###