Cagayan Electric Power& Light Co., Inc.

POWER SITUATION UPDATE FOR 2012

Presentation to OROCHAMBERFebruary 20, 2012

Cagayan Electric Power& Light Co., Inc.

Outline of the Presentation:

• Effect of the power shortage to CEPALCO

• Different levels of curtailment and

• Probable brownout scenarios

• What CEPALCO is doing to mitigate the shortage

• Expected and proposed embedded generation

Cagayan Electric Power& Light Co., Inc.

Deficiency/Load to Maintain/Load to Shed @ 125MW Maximum Demand

30 60 90 120 150 180 210 240 270 300

117.9 114.8 111.7 108.5 105.4 102.3 99.2 96.1 93 89.9

7.1 10.2 13.3 16.5 19.6 22.7 25.8 28.9 32 35.1

0 0 0 0 0 0 0 0 0 0

125

CEPALCO'S FORECASTED DEMAND FOR 2012, MW 147

LOAD TO SHED w/ MINERGY, PV & FG, MW

IPP'S CAPABILITY, MW 45

SYSTEM DEFICIENCY - MINDANAO GRID, MW

LOAD TO MAINTAIN - CEPALCO, MW

LOAD TO SHED w/o MINERGY, PV & FG - CEPALCO, MW

431.40.6

MINERGYFIRSTGEN

CEPALCO PV

CEPALCO'S ACTUAL MAXIMUM DEMAND AS OF FEBRUARY 2012, MW

HIGHEST SYSTEM DEFICENCY AS OF FEBRUARY 2012, MW 270

Cagayan Electric Power& Light Co., Inc.

Interruption Scenarios (@ 125 MW Demand)

• Without the new plant of MINERGY, CEPALCO customers will experience power interruption starting at 150 MW of system deficiency

• With the new plant of MINERGY, CEPALCO customers will only experience power interruption when the system deficiency exceeds the 400 MW level.

Cagayan Electric Power& Light Co., Inc.

Deficiency/Load to Maintain/Load to Shed @ 147MW Maximum Demand

30 60 90 120 150 180 210 240 270 300

117.9 114.8 111.7 108.5 105.4 102.3 99.2 96.1 93 89.9

29.1 32.2 35.3 38.5 41.6 44.7 47.8 50.9 54 57.1

0 0 0 0 0 0 0 0 3 6.1

51.0

LOAD TO MAINTAIN - CEPALCO, MW

LOAD TO SHED w/o MINERGY, PV, KABULIG & FG - CEPALCO, MW

LOAD TO SHED w/ MINERGY, PV, KABULIG & FG - CEPALCO, MW

KABULIG (JULY 2012) 6.0

HIGHEST SYSTEM DEFICENCY AS OF FEBRUARY 2012, MW 270

SYSTEM DEFICIENCY - MINDANAO GRID, MW

MINERGY 43.0FIRSTGEN 1.4

CEPALCO PV 0.6

CEPALCO'S FORECASTED DEMAND FOR 2012, MW 147CEPALCO'S ACTUAL MAXIMUM DEMAND EQUALS THE FORECASTED DEMAND, MW

147

IPP'S CAPABILITY, MW

Cagayan Electric Power& Light Co., Inc.

Interruption Scenarios (@ 147 MW Demand)

• With the entry of Kabulig hydro (2nd half of 2012), CEPALCO customers will experience power interruption starting at 270 MW of system deficiency

• Without Kabulig hydro, CEPALCO customers will experience power interruption starting at 210 MW of system deficiency

Cagayan Electric Power& Light Co., Inc.

What CEPALCO is doing?

• CEPALCO is now embarking into revisiting the Interruptible Load Program (ILP)– The ILP allows a DU and the participating

customer to enter into an agreement wherein the customer may be requested by its DU to be partially or fully-deloaded/disconnected for a period of time as determined by the DU. The DU shall pay the participating customers a de-loading compensation for the incremental cost incurred w/c shall be recovered from all customers of the DU as part of the monthly total power cost.

Cagayan Electric Power& Light Co., Inc.

Expected and proposed embedded generation

• Cabulig Hydro• Restoration of Bubunawan Hydro,• Additional Hydro at Lower Bubunawan,• Additional Hydro at Lower Kabulig,• 20MW Solar PV at Kirahon, Villanueva

Cagayan Electric Power& Light Co., Inc.

Thank You