The current power crisis and its effect on consumers

The Mindanao Grid is currently suffering from a Generation Shortfall of over 400 MW.

Power interruption will stay with us as long as the El Niño Phenomenon will not end, which
is expected to by the start of July 2010.

With the significant use of bunker fuel / diesel for generation, the Generation Charge will
shoot up by an average of P 2.00 / Kwh should the cost be instantaneously be recovered.

To mitigate the effects of the power interruption, everyone is enjoined to do their laundry
and ironing activities after 10 Pm., this way the Peak Demand can still be shaved significantly.

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. ###

UPDATES FROM NGCP

POWER SYSTEM UPDATE as of February 22, 2010, 1300H

National Grid Corporation of the Philippines (NGCP), as the System Operator, has announced that the continuing generation deficiency in the Mindanao grid has compelled the system to curtail the power load transmitted to grid customers from 1000H to 2200H today.

Generation deficiency occurs when the electricity supply generated from power plants is too low and may not be enough to meet the demand of power grid users.

The said deficiency is caused by the following:

• Reduced capabilities of hydro electric plants due to low elevation at water reservoirs (70% reduction in the available capabilities at Agus and Pulangi Plants)
• Non-availability of Iligan Diesel Power Plant (35 MW)
• Planned outage of Power Barge 117 Unit 2 (50 MW)

A total of around 400 MW of power is expected to be curtailed in the Mindanao grid at 1300H.

Load curtailment is implemented to ration the available power and to ensure the reliability and stability of the entire power network.

Mindanao customers are advised to coordinate directly with distribution utilities or electric cooperatives in their area for the complete list of areas affected and the schedule of power interruptions.

Meanwhile, in the Visayas grid, available capacity this afternoon is 1,188 MW while demand is 1,165 MW. Power reserve is now 23 MW, a slight improvement from the 5 MW this morning. Expected to further improve grid conditions is the cutting in and synchronization to the grid of Power Barge 102 (5 MW) at around 1700H today.

Luzon grid continues to be stable and under normal status. Available capacity in Luzon grid this afternoon is 7,376 MW while demand is 6,624 MW. Power reserve is now 752 MW

Updates on Mindanao Generation Shortfall

THE SHORTAGE IN GENERATED POWER IN MINDANAO HAS
STABILIZE AT 159 - 160 MW ON A WEEK-DAY

LESS THAN 100 MW ON A WEEK-END

LOAD SHIFTING BY ALL SECTORS CAN STILL SAVE THE DAY
FOR MINDANAO POWER USERS.

RESIDENTIAL USERS CAN
SHIFT THEIR WASHING MACHINE AND FLAT IRON USAGE
TO 10 PM AND BEYOND. ( SAVINGS IS 40 MW )

MANUFACTURING SECTORS CAN SHIFT TO GRAVEYARD
AND FREE THE 5 PM TO 10 PM PEAK HOURS ( SAVINGS 100 MW )

EL NIñO Starts the Brownout/Blackout Season in Mindanao

El Niño starts the Brownout/Blackout Season in Mindanao.

The El Niño phenomenon has started the Brown-out/Black-out Season in Mindanao.
With the hydro plants operating at less than 50 percent of their dependable capacity.

The peak demand today was forecasted at 1,195 megawatts, while
the available capacity is only at 1,108 megawatts
leaving a deficit generation capacity of 87 mega watts