STATISTICAL REPORT 2014aesmcac.com/aesdominicana/wp-content/uploads/2016/08/... · 2017-07-14 ·...

STATISTICALREPORT 2014

AES Corporation is a global energy company that owns and operates a diverse and growing portfolio of electricity generation and distribution companies, which provide reliable and affordable energy to customers in 18 countries.

Our power plants cover a wide range of technologies and fuel types such as coal, fuel oil, natural gas, biomass, combined cycle, solar panels and wind power.

Combining deep local knowledge with a global presence and over 30 years of experience, AES has a provencommitment to ensure operational excellence in the supply of electricity to its customers.

10 AES DOMINICANA 201411 Letter from the President12 People of AES14 AES Dominicana Background15 Group Profile16 Power Generation Units26 Fuel Reception Facilities28 Natural Gas Sales30 Energy Balance32 Operational KPI’s33 Operational Relevant Events

34 WHOLESALE ELECTRICITY MARKET35 Brief History of Dominican Republic’s Electric Sector36 Generation42 Transmission42 Distribution43 Energy Balance44 Capacity Balance45 System Maximum Demand46 Energy Supply by Fuel Type46 International Fuel Prices48 Energy Spot Price49 Capacity Spot Price and Connection Right50 Frequency Regulation Service52 Non-Regulated Users Market54 Contract Market

56 ATTACHMENTS57 Glossary60 Tables and Measures

CONTENTS


1110

AES DOMINICANA 2014

LETTER FROM THE PRESIDENT

It is a great pleasure to present the 2014 edition of the statistical report of AES Dominicana, highlighting the main assets, operational per-formance as well as information on other lines of business and data of the electricity market as a whole.

During that year, our three power plants in Dominican Republic reached important operation milestones with a generation of 2,145.6 GWh in AES Andres, DPP units with 1,445.5 and EGE ITABO S.A. 1,851.0 GWh. All our plants exceeded their maximum historic annual generation both for natural gas and mineral coal respectively.

At the end of 2014, AES Dominicana supplied an average of 40.4% of the total energy demand of the Do-minican Republic’s Interconnected National Electric System (SENI) for a total injected by this company of 5,442.1 GWh, exceeding the genera-tion of 2013 and reaffirming that we are the leader among the domestic electricity market companies. Under contract energy sales by AES Domin-icana the 87% was acquired by the Electricity Distribution Companies, allowing for significant savings to the Dominican Government being the most economical energy provid-er of the SENI.

At the corporate level, AES Domin-icana shows its commitment to the country by strengthening its po-sition on environmental manage-ment and safety of its employees. A proof of this is that the AES Do-minicana group was awarded the highest safety award granted by AES Corporation, the “HARD HAT GOLD-EN AWARD 2014”. This award is

given every year to honor and rec-ognize an AES business that imple-ments and shows significant im-provements in safety performance management, consolidating it as a company with a world class safe-ty culture. At the same time, the generation facilities of AES keep ISO14001 certifications applying a robust management and excellent environmental performance both in our units and corporate headquar-ters. Another award received by the team, the Gold Medal was award-ed to AES Andres, National Quality Award 2014.

Another significant event that fills us with pride as an organization that bases its actions on its corporate val-ues is that AES Dominicana has been placed once again among the 10 Best Companies to Work in the Do-minican Republic and the Caribbean according to the results of the annu-al ranking of the prestigious institute “Great Place to Work”. In 2014 our group made significant progress in the measurement scale going from 11th in 2013 ranking to position 6 of the best companies to work for in Dominican Republic while in the Caribbean region AES Dominicana went from place 14 in the 2013 to position 7 in 2014. This result is part of the primary objectives of our cor-poration and reflects the result of years of efforts by all our employees and therefore shows a high pride and commitment to all our stakeholders’ interest.

Edwin De los SantosPresidente

AES DOMINICANA 2014

2,145.6 GWhAES Andres

1,851 GWhITABO

of the energy demand of the electrical system

+

40.4%

1,445.5 GWhDPP


1312

AES DOMINICANA 2014

SAFETY FIRST

We will always put safety first for our people, contractors and com-munities.

ACT WITH INTEGRITY

We are honest, trustworthy and de-pendable. Integrity is the core of all we do, how we conduct ourselves and how we interact with one an-other and all of our stakeholders.

HONOR THEIR COMMITMENTS

We honor our commitments to our communities, customers, team-mates, owners, suppliers and part-ners; and we want that our busi-nesses, as a whole, make a positive contribution to society.

STRIVE FOR EXCELLENCE

We strive to be the best in all that we do and to perform at worldclass levels.

ENJOY OUR WORK

We work because work can be fun, fulfilling and exciting. We enjoy our work and appreciate the fun of being part of a team that is making a dif-ference.

Our Values

PEOPLE OF AES

PEOPLE OF AES


1514

AES DOMINICANA 2014

AES began operations in the Domin-ican Republic with the intent to add value to the national energy market and contribute to the development of the communities where it serves.

Today, AES Dominicana is positioned as the principal investment group in the Dominican Electric Sector, with modern facilities for energy production and the most competitive fuels for power generation in the national electric system.

AES Dominicana has two deep-sea port infrastructures: ITABO’s and Andres’s International Piers, des-tined to the unloading process of coal and LNG as fuel input for elec-tricity production process. Also, at AES Andres’ facilities, has the first LNG terminal intended for the dis-tribution of liquefied natural gas in specialized trucks.

As a business group, AES Domini-cana combines a global perspective with deep local knowledge and a re-lentless commitment to operational excellence. There has been a consis-

GROUP PROFILE

tent pattern of improvement, year after year in energy generation and efficiency. AES serves as role mod-el to the rest of the players in the electric sector by displaying the best practices of corporate governance within the industry in the Dominican Republic.

AES Dominicana supports the growth of its business by standing upon a strong foundation: consist-ing of its code of conduct, corporate social responsibility, environmental care and its people, which are its most valuable resource.

The first investment of AES in the Dominican Republic was the pur-chase of DPP in 1997 from NGC, an asset that was in their power as a result of their merger with Destec companies. DPP is the owner of Los Mina V and Los Mina VI, two 118 MW open cycle gas turbines.

From May of 1996 until August of 2001, DPP operated under the In-dependent Private Producer (IPP) scheme, selling all of its production to La Corporación Dominicana de Electricidad (CDE). Then, after an agreement between DPP and CDE, the contract between both parties was modified and a new electricity sale arrangement was established between DPP and EDEESTE, which included a backup contract with the CDE.

In 2000, AES confirms its commit-ment to the long-term evolution of the Dominican Republic by building AES ANDRES generation facility. The project included a combined cycle generation system of 319 MW, a Liquefied Natural Gas (LNG) station and a gas pipeline linking up the DPP power station to AES Andres.

In December of 2000, AES took an-other important step when it took over the assets of GENER, acquiring a of 25% in the ITABO S.A. power generation facility’s. Since May 1st, 2003, Dominican Power Partners operates to supply its electricity sales contract with EDEESTE, sell-ing its excess generation and buying what it needs in the spot market.

Also in 2003, AES ANDRES began its operations and became the most ef-ficient power station of Latin Amer-ica, representing a jump towards sustainable development for the country using clean energy. This new investment improved the strategic position of the country that formerly depended 90% on petroleum deriv-atives to supply its electricity needs.

In 2006, AES Dominicana acquired another 25% of the ITABO S.A. equi-ty, formerly owned by El Paso. AES, now with 50% of ITABO’s equity, took control of the operative and administrative areas.

BACKGROUND

The first investment of AES in the Dominican Republic

+

1997

AES ANDRES began its operations

2003


1716

AES DOMINICANA 2014POWER GENERATION UNITS

POWER GENERATION UNITS

Commercial Operation Date: December 2nd, 2003Gas Turbine Manufacturer: Mitsubishi

Gas Turbine Capacity: 198 MWGas Turbine Speed: 3,600 rpm

Inlet Heat Recovery Steam Generator Temperature: 610 ºCGas Turbine Generator Manufacturer: Mitsubishi

Gas Turbine Generator Nameplate Capacity: 218.5 MVAGas Turbine Generator Nominal Voltage: 18 kV

Gas Turbine Generator Cooling System: AirSteam Turbine Manufacturer: Hitachi

Steam Turbine NameplateCapacity: 121 MWSteam Turbine Speed: 3,600 rpm

Steam Pressure: 124 kg/cm²Steam Temperature: 568 ºC

Steam Turbine Generator Manufacturer: SiemensSteam Turbine Generator Nominal Capacity: 134 MVA

Steam Turbine Generator Nominal Voltage: 13.8 kVSteam Turbine Generator Cooling System: Air

Advantages: Low Environmental Impact and More Energetic Efficiency

AES ANDRES

Installed Capacity:

+

319 MWTechnology:

COMBINED CYCLE

Primar Fuel:

NATURAL GAS


1918


Commercial Operation Date: May 19th 1996Manufacturer: Westinghouse

Turbine Speed: 3,600 rpmTurbine Stages: Four (4)

Compressor Stages: Nineteen (19)Outlet Gas Temperature: 630 ºC

Generator Nameplate Capacity: 2 x 142 MVAGenerator Nominal Voltage: 13.8 kV

Generator Speed: 3,600 rpmGenerator Cooling System: Air

Advantages: Fast Manufacture and Installation; Low Environmental Impact

DPP

Installed Capacity:

+

2 X 118 MWTechnology:

GAS TURBINE

Primary Fuel:

NATURAL GAS



2120


Commercial Operation Date: July 17th, 1984Turbine Manufacturer: Brown Bovery Company

Turbine Speed: 3,600 rpmSteam Pressure: 141 kg/cm²Steam Temperature: 535 ºC

Generator Manufacturer: Foster WheelerGenerator Nameplate Capacity: 150.6 MVA

Generator Nominal Voltage: 13.8 kVGenerator Cooling System: Hydrogen

Advantages: Provides Economic Base Electricity Generation

ITABO 1

Installed Capacity:

+

128 MWTechnology:

STEAM TURBINE

Primary Fuel:

MINERAL COAL


Secondary Fuel:

FUEL OIL 6

Tertiary Fuel:

FUEL OIL 2


2322


Commercial Operation Date: May 10th, 1988Turbine Manufacturer: General Electric

Turbine Speed: 3,600 rpmSteam Pressure: 146 kg/cm²Steam Temperature: 540 ºC

Generator Manufacturer: General ElectricGenerator Nameplate Capacity: 155.3 MVA

Generator Nominal Voltage: 13.8 kVGenerator Cooling System: Hydrogen

Advantages: Provides Economic Base Electricity Generation

ITABO 2

Installed Capacity:

+

132 MWTechnology:

STEAM TURBINE

Primary Fuel:

MINERAL COAL

Secondary Fuel:

FUEL OIL 6

Tertiary Fuel:

FUEL OIL 2



2524


Commercial Operation Date: August 25th 2014Manufacturer: General Electric

Turbine Speed: 5,133 rpmTurbine Stages: Three (3)

Compressor Stages: Seventeen (17)Outlet Gas Temperature: 550 ºC

Generator Nameplate Capacity: 53.412 MVAGenerator Nominal Voltage: 13.8 kV

Generator Speed: 3,600 rpmGenerator Cooling System: Air

Advantages: Operational flexibility with fast step-up

to meet increased demand during peak hours.

SAN LORENZO

Installed Capacity:

+

34.5 MWTechnology:

GAS TURBINE

Primary Fuel:

FUEL OIL 2


Secondary Fuel:

NATURAL GAS


2726

AES DOMINICANA 2014

ITABO S.A. International Pier

Haina in the province of San Cris-tobal. The pier is located next to the western port of Haina, approximate-ly 8 kilometers southwest of Santo Domingo’s western quadrant.

Since 2006, ITABO International Pier has been operating as a recep-tion point for mineral coal, which is the main fuel of the this steam pro-cess that power the units, adding a greater degree of autonomy to the

process and reducing the overall cost of coal.

The pier extends 535 meters into the sea. It has a system to transport sol-ids with the capacity to load and un-load bulk products. In addition, it has a mooring system with six (6) dol-phins, four berthing dolphin provid-ing a point to moor and two mooring dolphin for the ship’s engagement to the pier. It also has a signaling sys-tem guiding the approaching vessels, located in two towers with adjacent

lamps, as well as water lighting tracks and a lighting system in one of the tugboats.

Main Characteristics:

- Fourteen (14) meters deep: En-ables the docking of vessels like Handymax (45,000 mt) and Pan-amax (65,000 mt). Auto-discharg-ing vessels required.

- Discharge Capacity of 1,200 met-ric tons per hour.

FUEL RECEPTION FACILITIES

AES Andres’s International Pier

AES Andres Power Station is locat-ed at Boca Chica, just fifteen (15) minutes from Santo Domingo. The power station has a pier and a LNG terminal that also has the capacity to tranfer Fuel Oil #2.

Liquefied Natural Gas (LNG) Terminal

Inside the LNG facility, the unload-ing system consists of three (3) un-loading arms designed to handle a transfer rate of 10,000 m3 per hour of LNG. It also has a double wall cryogenic tank with a capacity to store 160,000 m3 of LNG. In addi-tion, the terminal has a re-gasifi-cation system with the capacity to convert 370 million cubic feet from liquid to gas daily. Finally, it has a boil-off security system to handle the boil of gas generated as a con-sequence of the storage and con-version process that takes place in

the system, in order to keep the in-ner pressure of the tank at an atmo-spheric pressure.

AES Andres – DPP Natural Gas Pipeline

In addition to the LNG Terminal, a natural gas pipeline was built in or-der to supply natural gas to the DPP power units, improving its efficiency and competitiveness.

Technical Details of Gas Pipeline

Length: 34 kmPipe Diameter: 12 inchesMax Pressure: 100 barAverage Pressure: 50 barControl Valve Station: Five (5)

In 2011, Estrella del Mar II, a Bi-Fuel power plant that runs with natural gas and Fuel Oil #6 that belongs to the Transcontinental Capital Corpo-ration group, began its operations. This generation plant fuel is supplied

through a pipeline connected to DPP # 4 gas station, located at Los Mi-na’s facility.

Cryogenic Distribution Terminal

In 2009, AES Dominicana decided to invest in the first LNG truck load-ing terminal in Latin America, for the distribution of liquefied natural gas directly to other customers. The advantage of using liquefied natural gas is the ability to transport higher energy content to distant locations without incurring losses during the transportation process.

The LNG truck loading terminal has two loading bays (with the possibil-ity to duplicate the capacity) and a truck loading rate of 35 m3/h each bay, which means that the average customer service time (from admis-sion to the complex to the depar-ture) is approximately one hour.

FUEL RECEPTION FACILITIES


2928

AES DOMINICANA 2014

Natural Gas Sales Regarding to Energy Consumption[9,687,000 MMBtu]

AES Dominicana continues its commercial relationships with different local dis-tributors, which are responsible for the physical distribution of LNG through-out the country. These are: LINEA CLAVE, SOLUCIONES DE GAS NATURAL, PLATERGAS, PROPAGAS and TROPIGAS.

NATURAL GAS SALES

Market Evolution of Third-Party Natural Gas Sales[9.69 TBtu]

In the chart we can appreciate the natural gas sales per years to companies outside the group AES Dominicana.

2011

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-

TBtu

2012 2013 2014

NGV

INDUSTRIAL

ELECTRICITY GENERATION

43%

44%

13%

NATURAL GAS SALES

Since 2007, two years after AES Andres signed its first natural gas supply agree-ment with a local distribution company; AES Dominicana has been at the fore-front of the business in selling natural gas, opening the door to nationwide dis-tribution into new markets that previously could not enjoy the advantages of this fuel.

Today, AES Andres is the only distribution terminal of liquefied natural gas in the Dominican Republic, as well as the first to be installed in Latin America. This adds value by contributing to the evolution and diversification of the national energy matrix of the region.

The following chart shows the percentage of natural gas that AES Andres sold in the Dominican market in 2014 separated into three economic sectors: Indus-trial, Electricity Generation and Transportation (Natural Gas Vehicles).

Natural Gas Sales Sectioned by Industries[9,687,000 MMBtu]

The following graph shows the monthly natural gas sales by economic sector during 2014.

NGV

INDUSTRIAL

ELECTRICITY GENERATION

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1,400,000

1,200.000

1,00,000

800,000

600,000

400,000

200,000

-

MM

Btu

The Natural Gas sold by AES Andres in the Dominican market is used in three economic sectors: industrial, electricity generation and transportation.


3130

AES DOMINICANA 2014ENERGY BALANCE

Energy Sales[5,529 GWh]

Contract Sales[4,340 GWh]

Contract Sales78%

Spot Sales22%

ITABO, S.A.Through hole 2014, the energy contract between ITABO S.A and EDEESTE, EDESUR and EDENORTE.

DPPThrough hole 2014, the energy contract between DPP and EDEESTE continued. As the energy back-up contract between Andres and DPP.

DISTRIBUTION COMPANY

NON-REGULATED USER

THIRD PARTY SALES

87%

1%12%

The table below details AES Dominicana’s 2014 monthly energy production balances, the relation between energy purchases and sales through contracts and spot market transactions.

AES Dominicana Energy Balance[GWh]

ENERGY BALANCE

AES ANDRES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2014

CONTRACT SALES

EDEESTE 77.8 70.4 82.1 81.6 84.7 87.2 89.9 87.1 83.9 90.2 - 37.6 872.4

DPP 1.6 1.7 13.5 7.7 3.0 8.8 6.6 2.1 5.0 4.2 - 0.8 55.1

NRU 31.6 31.0 36.8 35.8 37.6 38.4 47.6 52.0 51.4 54.3 49.3 45.7 511.6

SPOT SALES / (SPOT PURCHASES) 43.04 21.69 54.66 59.26 59.53 51.29 37.58 46.38 42.77 47.67 134.09 107.48 705.4

PRODUCTION 154.40 125.40 187.09 184.36 184.83 185.77 181.77 87.56 183.08 196.39 183.41 191.57 2,145.6

ITABO S.A.

CONTRACT SALES

EDESUR 61.3 56.2 64.4 63.8 66.6 67.5 69.4 67.5 65.0 70.0 63.4 63.2 778.4

EDENORTE 43.8 39.8 45.9 46.4 47.6 48.9 52.2 51.8 48.1 50.5 46.2 45.9 567.0

EDEESTE 25.9 23.5 27.4 27.2 28.2 29.1 30.0 29.0 28.0 30.1 27.7 27.6 333.6

SPOT SALES / (SPOT PURCHASES) 35.8 (22.5) 24.5 (13.9) 26.0 20.2 14.3 14.8 9.6 6.6 19.2 36.6 171.3

PRODUCTION 166.9 97.1 162.2 123.6 168.5 165.7 165.9 163.2 150.8 157.2 156.6 173.3 1,851.0

DPP

CONTRACT SALES

EDEESTE 109.0 98.6 114.9 114.3 118.6 122.1 125.8 121.9 117.4 126.3 - 52.6 1,221.4

CONTRACT PURCHASES

ANDRES 1.6 1.7 13.5 7.7 3.0 8.8 6.6 2.1 5.0 4.2 - 0.8 55.1

SPOT SALES / (SPOT PURCHASES) 18.3 16.1 11.0 10.1 12.0 6.3 8.6 13.3 12.1 9.7 98.1 60.7 276.3

PRODUCTION 126.0 113.2 112.6 117.0 127.9 119.8 128.0 133.4 124.7 132.0 98.3 112.7 1,445.5


3332

AES DOMINICANA 2014OPERATIONAL KPI’S

AES Dominicana EFOF

RELEVANT EVENTS

The most relevant operative event on 2014 for AES Dominicana generation units can be resumed to mayor maintenance outages periods. This and other relevant events are presented on the following table:

AES ANDRES

2.50

2.00

1.50

1.00

0.50

-ITABO 1 ITABO 2 LOS MINA 5 LOS MINA 6

%

Unit Description From To Hours

ITABO 2 Major maintenance 08/02/2014 01/03/2014 504

AES ANDRES Major maintenance 27/01/2014 04/02/2014 192

LOS MINA 5 Major maintenance 28/03/2014 03/04/2014 144

ITABO 1 Major maintenance 01/04/2014 16/04/2014 360

AES ANDRES Maximum annual energy generation in AES ANDRES, [2,145.6 GWh] 2014

ITABO S.A. Maximum annual energy generation in ITABO S.A. [1,851 GWh] 2014

DPP Maximum annual energy generation in DPP [1,445.5 GWh] 2014

Operational Relevant Events

The following table shows the most common indicators and operational rates applied to the power generation units of AES Dominicana. As we can evalu-ate from the following chart the 2014 Equivalent Availability Factor (EAF) was a very particular indicator for each one of AES Dominicana generation units. 2014 was a great year for AES ANDRES and DPP considering that the EAF levels go through 96.6% for AES ANDRES to a great 99.58% for LOS MINA 6. This represents the result of all the effort and investment dedicated to the Opera-tional Excellence.

Other important fact is that through all 2014 the EAF percentage for ITABO’s generation Unit #1 (ITABO 1) increased on a 15% versus the 2013 EAF. Also AES Dominicana counted with the support of the Fondo Patrimonial de las Empresas Reformadas (FOMPER), on the hard work to position ITABO, S. A. at the vanguard of operational excellence and administrative gestion of the AES Group.

AES Dominicana Heat Rate

OPERATIONAL KPI’S

AES ANDRES

14,000

12,000

10,000

8,000

6,000

4,000

2,000

-

Btu

/ KW

h

ITABO 1 ITABO 2 LOS MINA 5 LOS MINA 6

AES Dominicana EAF

AES ANDRES

100.0

90.0

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0ITABO 1 ITABO 2 LOS MINA 5 LOS MINA 6

%

Para AES ANDRES y DPP fue un gran año en el cual pudimos observar un índice de disponibilidad que va desde 96.6% AES ANDRES hasta 99.58% LOS MINA 6.


3534

WHOLESALE ELECTRICITY MARKET

BRIEF HISTORY OF THE DOMINICAN ELECTRICITY SECTOR

In 1997 the capitalization process began. It was instituted due to serious problems in the electricity market caused by a deficit in energy generation, poor quality service and a lack of capital investment for the development of the electricity sector.

The capitalization process was formalized in June 24, 1997, with the publication of the State Companies Reform Law. Before this process, generation, transmission and distribution assets in the Dominican Republic were owned by CDE, who by law, was the only entity authorized to operate in the elec-tricity sector.

In the mid-90s, CDE signed several power purchase agree-ments contracts with independent power producers (IPP); increasing the system installed capacity with private capital investment. During this period, the sector was regulated by a series of administrative resolutions, issued by the Industry and Commerce Ministry.

Through the different stages of the capitalization process, the assets held by CDE were divided into eight state-owned com-panies: CDEEE, a parent holding company; three distribution companies: EDENORTE, EDESUR and EDEESTE; three genera-tion companies: HAINA, ITABO, HIDRO; and the power trans-mission company ETED.

In 1999, the three distribution companies and the two ther-mal generation companies were capitalized through the sale of 50% of the stocks to private investors. The Dominican Government remained with 49% of the stocks and the last 1% was sold to the employees of these companies.

In July 2001, the Electricity General Law was issued, estab-lishing the institutions of the sector and the rules under which it will operate. In July 2002, the Electricity General Law Rulebook was issued, completing the electrical sector’s new legislation.

In 2007, law number 186-07 modified the Electricity Gener-al Law and its Rulebook. The new law’s goal was to penalize electrical fraud and establish other measures to obtain the electrical sector’s financial viability.



3736

WHOLESALE ELECTRICITY MARKETGENERATION

Installed Capacity by Company and Technology[At December 2014]

It is important to note that in 2014, AES Dominicana, with its AES Andres, ITA-BO S.A. and DPP power plants encompassed 23% of the installed capacity of the generation park, and had the most competitive fuel mix in the market (coal and natural gas).

The tables below show the power plants that had been installed as of Decem-ber 2014, specifying the fuel, technology and installed capacity.

AES Dominicana, with its AES ANDRES, ITABO S.A. and DPP power plants encompassed 23% of the installed capacity of the generation park.

GENERATION COMPANY STEAMTURBINE

GASTURBINE

COMBINEDCYCLE

DIESELENGINE

NATURAL GASENGINE

HYDRO WINDTURBINE

TOTAL

[MW] [%]

AES ANDRES 319.0 319.0 8.6%

ITABO S.A. 260.0 34.5 294.5 8.0%

DPP 236.0 236.0 6.4%

AES DOMINICANA 260.0 270.5 319.0 849.5 23.0%

EGE HAINA 343.4 100.0 215.0 102.0 85.5 845.9 22.9%

EGEHID 586.1 586.1 15.9%

METALDOM 41.3 41.3 1.1%

SEABOARD 110.0 110.0 3.0%

GPLV 194.5 194.5 5.3%

MONTE RIO 39.8 39.8 1.1%

CEPP 67.7 67.7 1.8%

LAESA 111.0 111.0 3.0%

LOS ORIGENES 59.2 59.2 1.6%

PUEBLO VIEJO 215.0 100.1 315.1 8.5%

INDEPENDENT PRIVATE PRODUCERS [IPP’S]

SAN FELIPE 185.0 185.0 5.0%

CESPM 291.0 291.0 7.9%

RIO SAN JUAN 1.5 1.5 0.0%

TOTAL [MW] 603.4 370.5 1,335.0 657.9 59.2 586.1 85.5 3,697.6 100.0%

The electricity generation park of the Dominican Republic is mainly composed of 81.8% of thermoelectric units, 15.9% hydroelectric units while the other 2.3% is composed of wind generation.

During 2014 the following generation units joined the SENI (National Electric Interconnected System): BERSAL, owned by MONTE RIO and BRAZO DERE-CHO owned by EGEHID.

The following graph allows us to view the installed capacity of the system by technology.

Installed Capacity by Technology[3,697.55 MW at December 2014]

GENERATION

10.0%

16.3%15.9%

STEAM TURBINE 16.3%

GAS TURBINE 10.0%

WIND TURBINE 2.3%

DIESEL ENGINE 17.8%

COMBINED CYCLE 36.1%

NATURAL GAS ENGINE 1.6%

HYDRO TURBINE 15.9%

36.1%

17.8%

Installed Capacity by Fuel Type[3,697.55 MW at December 2014]

42.2%15.9%

FUEL OIL 6 42.2%

FUEL OIL 2 10.6%

FUEL OIL 6 / NATURAL GAS 4.6%

FUEL OIL 2 / NATURAL GAS 0.9%

COAL 8.5%

WIND 2.3%

NATURAL GAS 15.0%

WATER 15.9%

15.0%

10.6%8.5%


3938


Installed Capacity by Generation Company[At December 2014]

GENERATION

SEABOARD

ESTRELLA DEL MAR 2 FUEL NO. 6 / GAS NATURAL COMBINED CYCLE 110.00

SubTotal 110.00

CEPP

CEPP I FUEL NO. 6 DIESEL ENGINE 16.50

CEPP II FUEL NO. 6 DIESEL ENGINE 51.20

SubTotal 67.70

PVDC

MONTE RIO FUEL NO. 6 DIESEL ENGINE 100.10

QUISQUEYA 1 FUEL NO. 6 COMBINED CYCLE 215.00

SubTotal 315.10

METALDOM

METALDOM FUEL NO. 6 DIESEL ENGINE 41.30

SubTotal 41.30

LAESA

PIMENTEL I FUEL NO. 6 DIESEL ENGINE 31.60

PIMENTEL II FUEL NO. 6 DIESEL ENGINE 28.00

PIMENTEL III FUEL NO. 6 DIESEL ENGINE 51.40

SubTotal 111.00

MONTERIO POWER CORPORATION

BERSAL FUEL NO. 6 DIESEL ENGINE 25.20

INCA KM22 FUEL NO. 6 DIESEL ENGINE 14.60

SubTotal 39.80

LOS ORIGENES

LOS ORIGENES FUEL NO. 6 / GAS NATURAL NATURAL GAS ENGINE 59.20

SubTotal 59.20

Total Thermoelectric 3,111.5

THERMOELECTRIC UNITS (CONT.)COMPANIES FUEL TECHNOLOGY CAPACITY [MW]

GENERATION

THERMOELECTRIC UNITSCOMPANIES FUEL TECHNOLOGY CAPACITY [MW]

AES DOMINICANA

AES ANDRES NATURAL GAS COMBINED CYCLE 319.00

ITABO I COAL STEAM TURBINE 128.00

ITABO II COAL STEAM TURBINE 132.00

SAN LORENZO I FUEL OIL 2 / NATURAL GAS GAS TURBINE 34.50

LOS MINA V NATURAL GAS GAS TURBINE 118.00

LOS MINA VI NATURAL GAS GAS TURBINE 118.00

SubTotal 849.50

EGE HAINA

HAINA I FUEL OIL 6 STEAM TURBINE 54.00

HAINA II FUEL OIL 6 STEAM TURBINE 54.00

HAINA IV FUEL OIL 6 STEAM TURBINE 84.90

SAN PEDRO VAPOR FUEL OIL 6 STEAM TURBINE 30.00

PUERTO PLATA I FUEL OIL 6 STEAM TURBINE 27.90

PUERTO PLATA II FUEL OIL 6 STEAM TURBINE 39.00

HAINA TG FUEL OIL 2 GAS TURBINE 100.00

BARAHONA CARBÓN COAL STEAM TURBINE 53.60

SULTANA DEL ESTE FUEL OIL 6 DIESEL ENGINE 102.00

JUANCHO LOS COCOS 1 WIND WIND TURBINE 25.20

JUANCHO LOS COCOS 2 WIND WIND TURBINE 52.00

QUILVIO CABRERA WIND WIND TURBINE 8.25

QUISQUEYA 2 FUEL OIL 6 COMBINED CYCLE 215.00

SubTotal 845.85

GPLV

PALAMARA FUEL NO. 6 DIESEL ENGINE 107.00

LA VEGA FUEL NO. 6 DIESEL ENGINE 87.50

SubTotal 194.50

CDEEE

SAN FELIPE FUEL NO. 6 COMBINED CYCLE 185.00

CESPM I FUEL NO. 2 COMBINED CYCLE 97.00

CESPM II FUEL NO. 2 COMBINED CYCLE 97.00

CESPM III FUEL NO. 2 COMBINED CYCLE 97.00

RIO SAN JUAN FUEL NO. 2 DIESEL ENGINE 1.50

SubTotal 477.50


4140

WHOLESALE ELECTRICITY MARKETGENERATION

LAS DAMAS WATER HYDRO TURBINE 7.50

SABANETA WATER HYDRO TURBINE 6.30

LOS TOROS I WATER HYDRO TURBINE 4.90

LOS TOROS II WATER HYDRO TURBINE 4.90

MAGUEYAL I WATER HYDRO TURBINE 1.50

MAGUEYAL II WATER HYDRO TURBINE 1.50

BRAZO DERECHO WATER HYDRO TURBINE 2.90

LAS BARIAS WATER HYDRO TURBINE 0.90

SubTotal Non-Reservoir 89.0

Total Hydro 586.10

GRAND TOTAL 3,697.55

HYDROELECTRIC UNITS (CONT.)COMPANIES FUEL TECHNOLOGY CAPACITY [MW]

GENERATION

EGEHID - RESERVOIR HYDRO

TAVERA I WATER HYDRO TURBINE 48.00

TAVERA II WATER HYDRO TURBINE 48.00

JIGUEY I WATER HYDRO TURBINE 49.00

JIGUEY II WATER HYDRO TURBINE 49.00

AGUACATE I WATER HYDRO TURBINE 26.00

AGUACATE II WATER HYDRO TURBINE 26.00

VALDESIA I WATER HYDRO TURBINE 27.00

VALDESIA II WATER HYDRO TURBINE 27.00

RIO BLANCO I WATER HYDRO TURBINE 12.50

RIO BLANCO II WATER HYDRO TURBINE 12.50

MONCION I WATER HYDRO TURBINE 26.00

MONCION II WATER HYDRO TURBINE 26.00

RINCON WATER HYDRO TURBINE 10.10

PALOMINO I WATER HYDRO TURBINE 30.00

PALOMINO II WATER HYDRO TURBINE 30.00

PINALITO I WATER HYDRO TURBINE 25.00

PINALITO II WATER HYDRO TURBINE 25.00

SubTotal Reservoir 497.1

EGEHID - NON RESERVOIR HYDRO

LOPEZ ANGOSTURA WATER HYDRO TURBINE 18.40

CONTRA EMBALSE MONCION I WATER HYDRO TURBINE 1.60

CONTRA EMBALSE MONCION II WATER HYDRO TURBINE 1.60

BAIGUAQUE I WATER HYDRO TURBINE 0.60

BAIGUAQUE II WATER HYDRO TURBINE 0.60

HATILLO WATER HYDRO TURBINE 8.00

JIMENOA WATER HYDRO TURBINE 8.40

EL SALTO WATER HYDRO TURBINE 0.70

ANIANA VARGAS I WATER HYDRO TURBINE 0.30

ANIANA VARGAS II WATER HYDRO TURBINE 0.30

DOMINGO RODRIGUEZ I WATER HYDRO TURBINE 2.00

DOMINGO RODRIGUEZ II WATER HYDRO TURBINE 2.00

ROSA JULIA DE LA CRUZ WATER HYDRO TURBINE 0.90

NIZAO NAJAYO WATER HYDRO TURBINE 0.30

LOS ANONES WATER HYDRO TURBINE 0.10

SABANA YEGUA WATER HYDRO TURBINE 12.80

HYDROELECTRIC UNITSCOMPANIES FUEL TECHNOLOGY CAPACITY [MW]


4342


ENERGY BALANCE

The following table indicates the monthly energy balance during 2014. This in-cludes the net energy injections of the generation companies as well as the distribution companies and non-regulated users withdrawals; the last two have been grouped independently from the generation companies with which they have a power supply contractual arrangement.

In 2014, the total injection of electrical energy in the system was 13,463.9 GWh. The companies who supplied the most were: EGEHAINA 20.3%, AES ANDRES 15.9%, ITABO S.A. 13.75%, DPP 10.7%, EGEHID 9.4% y SEABOARD 7.5%. AES Dominicana units as a group contributed 40.4% of the energy in the Electricity Wholesale Market, reaching the highest market share in the generation sector.

Energy Supply Participation by Company[13,463.9 GWh]

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2014

AES ANDRES 154.4 125.4 187.1 184.4 184.8 185.8 181.8 187.6 183.1 196.4 183.4 191.6 2,145.6

ITABO S.A. 166.9 97.1 162.2 123.6 168.5 165.7 165.9 163.2 150.8 157.2 156.6 173.3 1,851.0

DPP 126.0 113.2 112.6 117.0 127.9 119.8 128.0 133.4 124.7 132.0 98.3 112.7 1,445.5

AES Dominicana 447.3 335.7 461.9 424.9 481.2 471.2 475.8 484.2 458.6 485.6 438.3 477.5 5,442.2

EGEHID 141.6 120.7 117.3 108.4 127.4 108.4 87.9 91.6 90.4 89.4 83.5 92.5 1,259.2

CDEEE-IPP's 23.3 45.7 26.7 20.4 3.9 4.7 16.1 55.1 67.0 78.0 64.1 3.9 408.9

EGE HAINA 245.8 201.4 200.3 230.7 233.5 233.5 263.8 240.4 220.7 213.5 222.6 225.0 2,731.1

GPLV 22.0 42.5 67.7 77.0 61.4 87.7 102.3 81.4 85.8 98.6 101.0 92.1 919.5

SEABOARD 88.9 106.2 115.2 98.2 80.7 86.8 102.1 88.4 61.5 62.9 53.5 61.7 1,006.1

CEPP 8.0 11.5 7.2 17.9 22.5 29.8 31.2 31.5 25.3 22.6 17.4 12.2 237.1

MONTE RIO 0.1 0.1 - 0.1 0.3 0.1 1.6 2.2 3.5 7.9 3.1 3.4 22.5

PVDC 24.3 45.3 55.7 48.2 57.0 54.4 60.5 48.1 45.1 57.8 40.0 42.1 578.5

METALDOM 7.5 11.8 12.4 17.7 21.6 23.2 18.0 15.8 21.1 20.3 23.7 24.2 217.1

LAESA 26.5 26.8 33.0 40.2 34.4 39.2 49.6 42.7 44.7 54.0 41.0 38.8 471.1

LOS ORÍGENES 3.5 2.8 2.6 7.2 11.5 11.3 7.8 19.6 19.1 27.8 27.7 29.8 170.7

GENERATION 1,038.7 950.3 1,099.9 1,090.9 1,135.4 1,150.4 1,216.8 1,200.9 1,142.9 1,218.6 1,115.9 1,103.3 13,463.9

EDESUR 339.3 310.9 356.1 353.5 368.2 373.7 394.1 383.6 369.6 396.9 359.4 357.0 4,362.0

EDENORTE 286.7 260.6 300.7 303.7 311.5 319.8 341.6 339.0 315.2 330.7 302.4 300.2 3,712.2

EDEESTE 288.6 261.2 304.3 302.7 314.1 323.4 333.2 322.9 310.9 334.5 308.6 306.8 3,711.3

UNR's 98.3 95.5 115.2 107.6 117.0 109.1 121.2 129.4 124.3 132.9 122.7 116.0 1,389.2

RETIROS INTERNOS 4.0 3.4 2.9 3.0 3.3 2.7 2.9 2.7 3.2 2.6 2.6 3.3 36.7

DEMAND 1,017.0 931.6 1,079.2 1,070.3 1,114.2 1,128.7 1,193.1 1,177.6 1,123.1 1,197.7 1,095.8 1,083.3 13,211.6

LOSSES 21.7 18.8 20.7 20.6 21.2 21.6 23.7 23.3 19.7 20.9 20.2 19.9 252.3

LOSSES % 2.1% 2.0% 1.9% 1.9% 1.9% 1.9% 2.0% 1.9% 1.7% 1.7% 1.8% 1.81% 1.87%

In 2014, the total injection of electrical energy in the system was 13,463.9 GWh.

The Empresa de Transmisión de Eléctrica Dominicana is a state-owned compa-ny with the primary objective of building, operating and sustainably managing the grids and substations of the electric interconnected system of the Domini-can Republic, in order to provide quality service at reasonable prices.

The electrical infrastructure consists of a total length of 4,723.95 km of lines at 345, 138 and 69 kV, where the 345 kV network, which links the North Zone with the area of Santo Domingo, is the most economically important and func-tional one. It has a length of 129.9 km at a maximum transmission power of 1200 MVA per circuit. In addition, the National Transmission System consists of approximately 2,660.93 km of transmission lines at 138 kV and can be referred to as the Sub-backbone network; also 1,933.13 km of 69 kV lines. It operates and maintains approximately 85 substations owned and shared.

Because of its radial configuration, the National Electric Interconnected Sys-tem is divided into four zones: Santo Domingo Zone, South Zone, North Zone and East Zone. The most important substations of these zones are: Palamara and Hainamosa in the Santo Domingo Zone, Pizarrete in the Southern Zone, Bonao II and Canabacoa in the Northern Zone and San Pedro II in the Eastern Zone.

Three distribution companies manage the electricity distribution of the nation-al interconnected grid:

EDESUR Dominicana, S. A.EDENORTE Dominicana, S. A.Empresa Distribuidora de Electricidad del Este, S. A.

These companies supplies their energy from the National Interconnected Elec-tric System through high voltage bus bars, which are later transformed to lower tensions levels and then conducted through each company’s grids within their zones of concession until these reach their final users.

The distribution company (DISCOS) electricity lines within the national DIS-COS grid count with an automatic load shedding mechanism, implemented in several circuits and substations dedicated to operate in low frequency and low voltage situations, which disconnects the electrical load automatically through different stages. This mechanism is reviewed and updated periodically by the Coordinator Organism of the system, the independent market operator.

TRANSMISSION

DISTRIBUTION

The distribution company electricity lines within the national DISCOS grid count with an automatic load shedding mechanism.


4544


The system’s maximum demand represents the highest power consumption on a giving hour. Generally, this happens during system peak consumption hours between 18:00 and 22:00 hours of the a giving day. The Maximum demand data is uses to recalculate the real capacity consumption of the evaluated year; because a preliminary estimated maximum demand is used prior to computing these figures. The system remunerates only the maximum capacity effectively recorded as demanded during the year.

The following table shows 2014’s monthly power production and power con-sumptions during system peak hours. On 2014 de maximum demand occurred on July 30 at 22:00, registering a value of 1,977 MW. On this giving date, the net power withdrawn was 1,873 MW from where the 90.5% of the withdrawn where registered to the distribution companies, 9% to Non-Regulated Users and 0.5% generators Auxiliary withdrawn.

Monthly Maximum Demand[MW]

SYSTEM MAXIMUM DEMAND

Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Day / Hour D12 H20 D14 H21 D28 H20 D09 H21 D15 H21 D25 H21 D30 H22 D15 H21 D19 H21 D06 H20 D13 H22 D10 H20

GENERATION

Gross Generation 1,844 1,812 1,869 1,892 1,920 1,947 1,977 1,958 1,932 1,959 1,908 1,900

Net Generation sub-transmission valtage

1,790 1,768 1,811 1,841 1,860 1,884 1,912 1,899 1,881 1,897 1,847 1,837

Net Generation transmission valtage

1,786 1,764 1,808 1,825 1,844 1,871 1,897 1,883 1,865 1,881 1,832 1,819

DEMAND

Empresa Distribuidora de Electricidad del Este S.A.

522 510 502 535 539 537 553 506 524 532 535 507

EdeNorte Dominicana S. A. 529 525 561 551 537 567 566 569 555 567 538 521

EdeSur Dominicana S.A. 591 553 547 546 563 555 577 586 586 560 555 563

Non-Regulated Users [NRU] 105 143 154 156 165 170 168 178 173 177 168 191

Other 1 4 6 9 5 4 9 6 8 9 2 3

TOTAL DEMAND 1,749 1,736 1,771 1,797 1,808 1,832.4 1,873 1,845 1,847 1,845 1,797 1,785

Losses [MW] 37 28 37 27 36 39 24 38 18 36 35 34

Losses [%] 2.1% 1.6% 2.0% 1.5% 2.0% 2.1% 1.2% 2.0% 1.0% 1.9% 1.9% 1.9%

The generation companies that gathered the largest participation in the firm capacity market were: EGEHID 22.9%, EGEHINA 16%, AES Andres 11.4%, ITABO, S.A. 10.4%, PALAMARA 8.7% Y DPP 3.6%. The remaining generation companies that represented less than 7% are grouped on the same column. AES Dominicana as a group had a participation of 25.5% in the firm capacity market.

FIRM CAPACITY BY GENERATION COMPANY[MW]

CAPACITY BALANCE

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC MW %

AES ANDRES 272.2 269.6 190.9 200.2 204.5 198.4 209.8 216.2 238.1 236.4 230.5 226.00 224.4 11.4%

ITABO S.A. 225.8 225.8 191.2 191.7 190.7 188.5 200.5 202.6 214.4 214.4 208.1 198.89 204.4 10.4%

DPP 78.8 80.6 56.9 59.3 61.1 62.3 67.9 70.2 78.3 80.1 79.4 77.41 71.0 3.6%

AES DOMINICANA 576.8 576.0 439.0 451.2 456.3 449.2 478.2 489.0 530.8 530.9 518.0 502.30 499.8 25.5%

EGEHID 464.4 467.0 464.2 451.4 447.4 468.7 423.6 422.0 420.7 433.2 454.9 467.20 448.7 22.9%

CDEEE-IPPs* 61.2 60.5 39.4 39.2 38.1 34.0 35.1 35.1 38.5 37.2 34.4 29.21 40.2 2.0%

HAINA 138.1 137.1 349.4 349.3 349.2 348.0 350.1 349.7 349.6 344.8 344.9 347.60 313.1 16.0%

GPLV 189.9 189.9 161.2 161.9 160.4 157.0 165.5 166.3 177.1 176.0 172.3 165.44 170.2 8.7%

SEABOARD 180.1 180.1 180.1 180.1 180.1 180.1 180.2 180.6 112.0 108.3 108.3 108.25 156.5 8.0%

CEPP 65.1 65.1 55.2 55.7 55.4 54.5 57.5 57.7 62.4 61.4 60.2 57.46 59.0 3.0%

MONTERIO 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 15.7 37.99 16.3 0.8%

METALDOM 40.6 40.6 34.3 34.3 34.0 33.1 34.9 34.6 37.2 37.1 36.0 34.21 35.9 1.8%

PVDC 96.4 96.4 86.6 86.2 86.3 84.6 88.4 87.7 94.1 93.6 92.2 87.31 90.0 4.6%

LAESA 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.42 108.4 5.5%

LOS ORIGENES 24.75 24.75 24.74 24.74 24.74 24.75 24.75 24.74 24.7 24.8 24.7 24.74 24.7 1.3%

Total 1,959.8 1,959.9 1 ,956.7 1,956.7 1,954.6 1,956.7 1,960.8 1,969.9 1,969.8 1,969.8 1,970.0 1,970.1 1,962.9 100.0%

*Only includes SAN FELIPE & CESPM

AES Dominicana as a group had a participation of 25.5% in the firm capacity market.


4746


International Fuel Prices[US$/MMBtu]

The fossil fuels used for electrical generation, Fuel Oil 6 and Fuel Oil 2 main-tained the highest prices, those experiencing a reduction in the last quarter of 2014.

The table below presents the value of fuel prices in the international market expressed in US$/MMBtu.

INTERNATIONAL FUEL PRICES

FUEL OIL 6

NATURAL GAS Nymex

FUEL OIL 2

COAL


18

16

14

12

10

8

6

4

2

0

US$

/ M

MBt

u

Power Generation International Fuel Prices[US$/MMBtu]


MINERAL COAL 2.87 2.76 2.57 2.68 2.66 2.55 2.60 2.74 2.61 2.56 2.51 2.56

NATURAL GAS Nymex 4.24 4.49 5.21 4.50 4.56 4.56 4.60 4.08 3.88 3.91 3.83 4.20

FUEL OIL 6 13.21 13.52 13.37 13.58 13.74 13.94 13.32 13.12 12.86 10.95 9.58 7.32

FUEL OIL 2 16.75 16.78 16.62 16.80 16.66 16.77 16.31 16.14 15.41 14.13 12.97 10.08


MINERAL COAL US$/MT 71.82 69.03 64.19 66.88 66.51 63.65 65.05 68.40 65.31 64.04 62.83 63.91

NATURAL GAS US$/MMBtu 4.24 4.49 5.21 4.50 4.56 4.56 4.60 4.08 3.88 3.91 3.83 4.20

FUEL OIL 6 US$/BBLS 88.24 90.34 89.31 90.74 91.78 93.10 88.98 87.64 85.91 73.15 63.97 48.88

FUEL OIL 2 US$/GAL 2.87 2.88 2.85 2.88 2.86 2.88 2.80 2.77 2.65 2.42 2.23 1.73

Prices using their original rates:

Sources: Platts, Mc Closkey

In 2014, 37.4% of the supplied energy was produced with Fuel Oil 6, holding the most participation in the fuel market; natural gas came in second with 34%, followed by coal coming in third place with 16.3%.

Energy Supply by Fuel Type[13,464 GWh]

ENERGY SUPPLY BY FUEL TYPE

The next graph shows the average monthly price of each fuel type in US$/MMBtu. The prices for FO# 6 and FO #2 were referenced by the international publications by Platts at the US Gulf Coast Port. The prices of coal were refer-enced by FOB Bolivar Port, at Colombia with a gross heat value of 10,843 Btu/lb and the natural gas prices were referenced by the monthly average of the front month future price quotations in the NYMEX (Henry Hub).

In 2014, natural gas and coal maintained the most competitive prices of those used in the Interconnected National Electrical System for the generation of thermal energy.

INTERNATIONAL FUEL PRICES

37.4%

9.4%

FUEL OIL 6 37.4%

COAL 16.3%

FUEL OIL 2 1.1%

NATURAL GAS 34.0%

WATER 9.4%

WIND 1.8%

34.0%

16.3%

In 2014, natural gas and coal maintained the most competitive prices of those used for the generation of thermal energy.


4948


13

11

9

7

5

3

1

-1

Capacity’s marginal cost is the price for which the transactions of Firm Capacity are valued, and is determined by what is established in Article 278 of the Reg-ulation of the General Law of Electricity. This also corresponds to the monthly calculations for the Connection Right Unit Price, which is established in Article 364. At the end of 2005 the Superintendence of Electricity emitted Resolution No. 108 in which they ordered to recalculate the Connection Right Unit Price using the definitive capacity transactions.

Capacity Spot Price and Connection Right[US$/Kw-month]

The next table indicates the monthly unitary marginal cost of capacity and connection right.

CAPACITY SPOT PRICE AND CONNECTION RIGHT


US$

/ Kw

-mon

th

Connection Right

Capacity Spot

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Average

Capacity Spot 8.40 8.45 8.55 8.59 8.60 8.60 8.60 8.62 8.60 8.59 8.59 8.55 8.56

Connection Right 4.19 4.44 4.54 4.05 3.94 3.96 3.97 3.77 3.65 3.70 3.79 4.07 4.01

The short-term marginal cost is the variable cost necessary to produce an ad-ditional unit of energy considering the demand and generation park available.

The next graph presents 2014’s maximum and average monthly spot price.

Energy Spot Price [US$/MWh]

The following table shows 2014’s monthly average energy spot prices, also the highest spot prices for the same period of time.

ENERGY SPOT PRICE


250

200

150

100

50

0

US$

/ M

Wh

CMg AVG

CMg MAX

These price comparisons must be in American dollars since energy’s marginal cost is determined by the production costs of power generation companies, whose fuel prices are acquired in the international market, which are in Amer-ican dollars. Attached are the exchange rates in dollars that were used for this report.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Average

CMg AVG 135 147 149 165 156 170 188 171 170 171 146 108 156

CMg MAX 213 206 210 208 211 213 216 208 205 201 176 158 202


5150


SEABOARD

LAESA

SAN FELIPE

EGEHID

DPP

AES ANDRES

3% Demand

5% Demand

Secondary Frequency Regulation Service[452.32 GWh]

In the secondary regulation of frequency, AES Andres and DPP contributed ap-proximately 38.5% and 25.9%, bringing a total of 64.4% of the reserve margins during 2014, by side EGEHID 9.3%, LAESA 20.7% and CDEEE contributed 3.8% respectively, each in the market, the latter through its IPP’s contracts.

FREQUENCY REGULATION SERVICE

70

60

50

40

30

20

10

0


The following graph demonstrates the margins contributed by each compa-ny that participated in the frequency regulation market, as well as the es-tablished norm of the General Law of Electricity, which indicates generation companies must reach between 3% and 5% of the demand, both Primarily and Secondarily.

Primary Frequency Regulation Service[497.24 GWh]

AES Dominicana, with the participation of AES Andres and DPP, was the com-pany that contributed the most in the primary regulation of frequency, with as much as 22.6% and 41.5%, bringing a total of 64.1% of the reserve margins in 2014, maintaining the quality and reliability of the market.

FREQUENCY REGULATION SERVICE


70

60

50

40

30

20

10

0

PDVC

METALDOM

LAESA

CEPP

SEABOARD

GPLV

HAINA

SAN FELIPE

HIDRO

DPP

AES ANDRES

3% Demand

5% Demand

AES Dominicana, with the participation of AES Andres and DPP, was the company that contributed the most in the Primary Regulation of Frequency.

AES Andres and DPP contributed approximately 38.5% and 25.9%, bringing a total of 64.4% of the reserve margins during 2014.


5352


Evolution of Non-Regulated Market Consumption

This graph highlights the positioning of companies such as EDEESTE and AES Andres, the main participants in the market, followed by the hydroelectric company and EDESUR.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%


HAINA

EDESUR

AES ANDRES

SEABOARD

EDENORTE

EGEHID

EDEESTE

NON-REGULATED USERS MARKET

The Superintendencia de Electricidad is the agency responsible for assessing whether a company qualifies as a Non-Regulated User. As of 2014, this institu-tion had issued 176 licenses to enable the NRU status. However, currently only 76 are using their licenses in the wholesale electricity market.

Below is the monthly amount of energy that was supplied by each agent to its NRU during 2014.

Non-Regulated Users (NRU) Energy Demand, Grouped by Supplier[GWh]

NON-REGULATED USERS MARKET

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC GWh %

AES ANDRES 31.63 31.04 36.84 35.80 37.59 38.44 47.63 52.04 51.35 54.28 49.25 45.68 512 36.8%

EDEESTE 27.74 26.45 35.16 30.60 34.80 28.63 39.37 40.64 36.11 39.99 36.44 37.84 414 29.8%

EDENORTE 4.81 4.82 5.68 5.17 5.52 5.49 6.04 7.67 7.51 7.99 7.31 6.39 74 5.4%

EDESUR 15.04 14.16 16.05 15.48 17.06 16.36 6.95 6.58 6.43 7.57 7.28 8.48 137 9.9%

EGEHID 12.22 12.44 14.14 13.72 14.34 14.07 12.36 12.15 11.57 11.43 10.73 5.58 145 10.4%

HAINA - - - - - - 2.50 9.42 10.38 10.58 11.05 11.19 55 4.0%

SEABOARD 6.91 6.53 7.38 6.81 7.68 6.09 6.36 0.91 0.92 1.11 0.63 0.77 52 3.8%

Total Demand 98.35 95.45 115.24 107.57 117.00 109.07 121.20 129.41 124.27 132.95 122.69 115.92 1,389 100.0%

The table above shows that the NRU average monthly withdrawal in the wholesale electricity market was 115.76 GWh, which represented 10% of the SENI average monthly withdrawal in 2014.

In addition, during 2014 the NRU total withdrawal was 1,389.2 GWh GWh of energy, from which AES Dominicana provided 512 GWh, which represented a monthly average of 42.63 GWh and 36.8% market share for all of 2014.


5554


CONTRACT MARKET

Energy Contracts, also known as PPAs (Power Purchase Agreements), are bi-lateral agreements for the buying and selling of electricity, capacity and other complementary services, made liberally between two parts, one who generates electricity with the purpose to sell (seller) and the other with the need to buy the electricity (buyer).

The table that follows shows the monthly amount of energy that was sold through contracts in the energy market during 2014.

Energy Sales by Contract in the Whole Sales Electricity Market[GWh]

AES Dominicana, as a group, held the largest market share in the contractual energy market in 2014 with AES Andres (12.5%), DPP (10.6%) and ITABO S.A. (14.6%) supplying a total of 37.6% of all contracts registered. The market share of HAINA (20.9%), CDEEE (14.2%) and EGEHID (10.5%), can also be noted.

Energy Contracts, also known as PPAs (Power Purchase Agreements), are bilateral agreements for the buying and selling of electricity.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC GWh %

GENERATORS

AES ANDRES 111.0 103.2 132.4 125.1 125.3 134.5 144.1 141.2 140.2 148.7 49.3 84.1 1,439.1 12.5%

DPP 109.0 98.6 114.9 114.3 118.6 122.1 125.8 121.9 117.4 126.3 - 52.6 1,221.4 10.6%

ITABO S.A. 131.0 119.5 137.7 137.4 142.5 145.4 151.5 148.3 141.1 150.6 137.4 136.7 1,679.0 14.6%

CDEEE 127.4 116.4 133.8 133.7 138.5 141.1 147.6 145.3 137.8 146.5 133.4 132.5 1,633.9 14.2%

CEPP 26.3 24.0 27.6 27.6 28.6 29.1 30.9 30.3 28.8 - - - 253.1 2.2%

EGEHID 135.3 114.9 114.0 106.5 124.4 105.6 85.8 88.3 84.5 84.7 80.1 88.2 1,212.3 10.5%

GPLV 78.7 71.9 82.6 82.5 85.5 87.1 91.1 89.4 84.8 90.2 82.1 81.7 1,007.4 8.7%

HAINA 183.4 167.1 192.7 192.3 199.4 203.7 214.5 216.7 207.9 221.5 203.7 202.8 2,405.7 20.9%

MONTE RIO - - - - - - - - - - - 0.1 0.1 0.0%

SEABOARD 6.9 6.5 7.4 6.8 7.7 6.1 6.4 0.9 0.9 1.1 0.6 0.8 52.1 0.5%

Total 908.9 822.3 943.1 926.2 970.4 974.6 997.6 982.2 943.4 969.5 686.5 779.4 10,904.2 94.6%

DISTRIBUTORS

EDEESTE 27.7 26.5 35.2 30.6 34.8 28.6 39.4 40.6 36.1 40.0 36.4 37.8 413.8 3.6%

EDENORTE 4.8 4.8 5.7 5.2 5.5 5.5 6.0 7.7 7.5 8.0 7.3 6.4 74.4 0.6%

EDESUR 15.0 14.2 16.0 15.5 17.1 16.4 6.9 6.6 6.4 7.6 7.3 8.5 137.4 1.2%

Total 47.6 45.4 56.9 51.2 57.4 50.5 52.4 54.9 50.0 55.6 51.0 52.7 625.6 5.4%


5756

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GLOSSARY

BAR: That point of the electrical system prepared to deliver and withdraw electricity.

BTU: British Thermal Unit of measurement. It is a unit of heat in the English European System. Its equivalence in the International System (IS) is the Calorie. The prices of Natural Gas are usually expressed in US$/MMBtu. 1 BTU is equivalent to 252 Calories (Cal).

CONTRACTS MARKET: The market for transactions of sale and purchase of electricity based on freely negotiated contracts for supply.

COMBINED CYCLE: a machine composed of two phases: one phase of gas and the other phase of steam. Typically the whole entity consists of a gas turbine, a heat recuperation boiler, a steam turbine, and one or several electrical generators.

FIRM POWER: The power that can be supplied by each generating units during peak hours, with high security/safety.

FREQUENCY REGULATION: Actions necessary to maintain frequency within the permissible tolerances defined for the system. The OC establishes the regulation parameters, and the generator companies are responsible for providing service through their control Centers.

FUEL OIL: A petroleum derivative obtained as a residue after the distilling process. Being a fuel, which is heavier than those which can be distilled at atmospheric pressure, Fuel Oil is used as a fuel for electrical energy plants, boilers, and ovens.

GAS TURBINE: A machine composed of a compressed air compressor (sic), a turbine especially designed for this purpose, and an electrical generator. The turbine converts thermal energy from fuel which is produced as a result of the expansion of hot gases from the explosion of the mixutre of compressed air, fuel, and flame, into mechanical energy that is used by the electrical generator to produce electricity.

HYDRAULIC TURBINE: A machine that uses kinetic energy and power from water to produce a rotation movement which, transferred through an axis, directly moves a machine or generator that transforms mechanical energy into electrical energy.

LIQUID NATURAL GAS (LNG): Natural Gas processed to be transported in liquid form. It is the best alternative for transporting and storage because when transformed into liquid as atmospheric pressure and –163oC, the liquefaction process reduces the volume of gas by 600 times.

F

B

C

ATTACHMENTS

G

H

L


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STEAM TURBINE: A machine that transforms thermal energy from fuel into mechanical energy. Through a process of generation of steam produced in a boiler, from which come conditions of high temperature and pressure. The kinetic energy of the steam is used by the turbine mechanically and through this by a generator to produce electricity.

VARIABLE PRODUCTION COST OF A THERMAL ELECTRICAL MACHINE: This corresponds to the cost of fuel placed in the plants, and used in the production of electrical energy, multiplied by the average specific consumption of the machine plus the variable non-fuel cost.

GLOSSARY

V

MARGINAL CENTRAL UNIT: This refers to the generating unit or units, which at optimum load dispatch increase their generation when the demand is marginally increased.

MARGINAL SHORT-TERM COST: The variable costs necessary to produce one additional unit of energy, considering the demand and the generation infrastructure available.

MAXIMUM ANNUAL DEMAND: The maximum gross half our demand, during a calendar year, of the total of the generator units of the system, occurring within the system´s peak hours.

NATURAL GAS (NG): A mixture of gases that is frequently found in fossil beds, alone or accompanied by oil. It is composed mainly of methane in quantities greater than 90 to 95%, and in addition, usually contains other gases such as nitrogen, ethane, CO2, and traces of butane or propane, as well as small proportions of inert gases such as carbon dioxide and nitrogen.

NON REGULATED USER (UNR): That user of the electrical service whose monthly demand exceeds the limits established by the Superintendencia de Electricidad in order to be classified as a public user, and who fulfills the requirements established in the Regulation of the General Electricity Law.

OWN CONSUMPTION: The energy consumed by the auxiliary systems of a central unit or Substation.

PEAK POWER: Maximum power on the annual load curve.

PRIMARY FREQUENCY REGULATION (RPF): Power that a generator unit can vary by automatic action of its system in the face of changes in the system’s frequency.

RIGHT OF CONNECTION: The difference between the total annual cost of the transmission system and the right of use estimated for the year. The procedure to determine the right of use is established in the Regulation of the General Electricity Law.

SECONDARY FREQUENCY REGULATION (RSF): Power which a generator unit can vary, or modify by automatic or manual action of its system of regulation in a sustained manner.

SPOT MARKET: The market for transactions of short-term sale and purchase of electricity not based on term contracts where economic transactions are performed at Marginal Short Term Energy Cost and at Marginal Power Cost.

M

GLOSSARY

N

O

R

S

P


6160

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Average Dollar USA Exchange Rate[2004-2014]

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG

2004 PURCHASE 46.09 49.23 46.52 44.35 46.92 48.12 44.84 41.25 36.95 32.27 29.56 28.86 41.25

SALE 46.64 50.44 47.18 44.81 47.69 48.67 45.46 42.11 37.62 32.98 30.13 29.33 41.92

2005 PURCHASE 29.84 28.85 28.30 28.25 28.70 28.90 28.93 29.00 30.42 32.41 33.25 33.12 30.00

SALE 30.40 29.22 28.60 28.54 28.91 29.08 29.06 29.13 30.82 32.70 33.54 33.39 30.28

2006 PURCHASE 34.56 34.17 32.56 32.11 32.49 32.77 32.75 32.63 32.95 33.47 33.56 33.09 33.09

SALE 34.84 34.44 32.85 32.33 32.73 32.94 32.91 32.80 33.12 33.66 33.69 33.30 33.30

2007 PURCHASE 33.70 33.36 32.79 32.23 32.14 32.42 32.99 32.90 33.31 33.46 33.41 33.52 33.02

SALE 33.90 33.51 32.96 32.40 32.29 32.57 33.14 33.05 33.46 33.59 33.53 33.66 33.17

2008 PURCHASE 33.76 33.83 33.92 34.03 34.01 34.16 34.27 34.68 34.83 34.99 35.19 35.26 34.41

SALE 33.89 33.96 34.04 34.14 34.13 34.27 34.39 34.80 34.95 35.09 35.32 35.39 34.53

2009 PURCHASE 35.37 35.56 35.67 35.83 35.95 35.92 35.98 36.03 36.06 36.09 36.09 36.09 35.89

SALE 35.49 35.65 35.77 35.92 36.04 36.00 36.07 36.10 36.13 36.16 36.17 36.16 35.97

2010 PURCHASE 36.11 36.19 36.30 36.42 36.70 36.73 36.80 36.89 36.98 37.21 37.22 37.31 36.74

SALE 36.19 36.27 36.37 36.51 36.79 36.81 36.88 36.99 37.07 37.29 37.30 37.40 36.82

2011 PURCHASE 37.45 37.63 37.76 37.84 37.89 38.03 38.04 38.06 38.15 38.30 38.44 38.55 38.01

SALE 37.54 37.72 37.85 37.90 37.96 38.10 38.12 38.13 38.21 38.37 38.51 38.63 38.09

2012 PURCHASE 38.86 38.94 38.99 39.02 39.02 39.07 39.08 39.11 39.20 39.43 39.94 40.17 39.24

SALE 38.95 39.02 39.07 39.08 39.09 39.14 39.15 39.18 39.29 39.53 40.05 40.29 39.32

2013 PURCHASE 40.59 40.76 41.00 41.05 41.09 41.45 41.89 42.36 42.61 42.44 42.45 42.60 41.69

SALE 40.70 40.85 41.10 41.15 41.19 41.60 42.00 42.49 42.71 42.53 42.53 42.71 41.80

2014 PURCHASE 43.00 43.14 43.04 43.19 43.22 43.39 43.60 43.58 43.71 43.91 44.04 44.20 43.50

SALE 43.09 43.23 43.15 43.28 43.34 43.51 43.69 43.76 43.82 44.05 44.16 44.36 43.62

2013 Firm Capacity True-up[MW]

Consumer Price Index (CPI)[2004-2014]

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC MW %

AES ANDRES 280.5 280.5 280.5 280.5 280.5 280.5 280.5 280.5 280.5 280.5 280.5 280.51 280.5 13.5%

ITABO S.A. 225.8 225.8 225.8 225.8 225.8 225.8 225.8 225.8 225.8 225.8 225.8 225.80 225.8 10.8%

DPP 150.1 162.1 159.7 151.5 157.9 151.6 149.9 151.7 151.6 142.7 135.7 135.74 150.0 7.2%

AES DOMINICANA 656.4 668.5 666.0 657.8 664.2 657.9 656.3 658.0 658.0 649.0 642.0 642.05 656.3 31.5%

EGEHID 466.5 443.3 448.1 463.8 450.8 463.7 466.8 463.5 455.2 455.7 468.4 468.37 459.5 22.1%

CDEEE-IPPs* 115.7 125.0 123.1 116.8 122.3 116.9 115.6 117.0 117.1 110.5 105.4 105.44 115.9 5.6%

HAINA 149.2 151.1 150.8 149.5 150.6 149.4 149.2 149.5 149.5 148.0 147.3 147.25 149.3 7.2%

GPLV 189.9 189.9 189.9 189.9 189.9 189.9 189.9 189.9 189.9 189.9 189.9 189.86 189.9 9.1%

SEABOARD 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.2 14.16 14.2 0.7%

CEPP 65.1 65.1 65.1 65.1 65.1 65.1 65.1 65.1 65.1 65.1 65.1 65.08 65.1 3.1%

MONTERIO 96.4 96.4 96.4 96.4 96.4 96.4 96.4 96.4 96.4 96.4 96.4 96.39 96.4 4.6%

METALDOM 40.6 40.6 40.6 40.6 40.6 40.6 40.6 40.6 40.6 40.6 40.6 40.55 40.6 1.9%

PVDC 180.1 180.1 180.1 180.1 180.1 180.1 180.1 180.1 180.1 180.1 180.1 180.10 180.1 8.6%

LAESA 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.40 108.4 5.2%

LOS ORIGENES - - - - - - - - 8.2 24.7 24.7 24.75 6.9 0.3%

Total 2,082.4 2,082.4 2,082.5 2,082.5 2,082.5 2,082.4 2,082.4 2,082.4 2,082.5 2,082.5 2,082.4 2,082.4 2,082.4 99.7%

*Only includes SAN FELIPE & CESPM

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG

2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 188.9

2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 195.3

2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 201.6

2007 202.4 203.5 205.4 206.7 207.9 208.4 208.3 207.9 208.5 208.9 210.2 210.0 207.3

2008 211.1 211.7 213.5 214.8 216.6 218.8 220.0 219.1 218.8 216.6 212.4 210.2 215.3

2009 211.1 212.2 212.7 213.2 213.9 215.7 215.4 215.8 216.0 216.2 216.3 215.9 214.5

2010 216.7 216.7 217.6 218.0 218.2 218.0 218.0 218.3 218.4 218.7 218.8 219.2 218.1

2011 220.2 221.3 223.5 224.9 226.0 225.7 225.9 226.5 226.9 226.4 226.2 225.7 224.9

2012 226.7 227.7 229.4 230.1 229.8 229.5 229.1 230.4 231.4 231.3 230.2 229.6 229.6

2013 230.3 232.2 232.8 232.5 232.9 233.5 233.6 233.9 234.1 233.5 233.1 233.0 233.0

2014 233.9 234.8 236.3 237.1 237.9 238.3 238.3 237.9 238.0 237.4 236.2 234.8 236.7

*Bureau of Labor Statistic U.S.

*Source: Banco Central de la República Dominicana.


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ATTACHMENTS

Kg / m3 Lb / Pie 3 Lb / Gl (UK) Lb / Gl (US)

Kilogram per Cubic Meter Kg / m3 1 0.062428 0.010022 0.008345

Pound per Cubic Feet Lb / Pie 3 16.0185 1 0.160544 0.133681

Pound per UK Gallon Lb / Gl (UK) 99.7764 6.22884 1 0.83268

Pound per US Gallon Lb / Gl (US) 119.826 7.48047 1.20094 1

Density Units

J Cal Btu KWh

Joule J 1 0.2388 0.009478 0.000000277

Calories Cal 4.1869 1 0.0039683 0.000001163

British Thermal Unit Btu 1055.06 252 1 0.00029307

KiloWatt Hour KVh 3600000 8598000 3412.14 1

Energy Units

Kg Ton. Ton. Larga Ton. Corta Libra (Lb)

Kilo Kg 1 0.001 0.000984 0.001102 2.2046

Ton T 1000 1 0.984207 1.10231 2204.62

Large Ton TL 1016 1.016 1 1.12 2240

Short Ton TC 907 0.907 0.892857 1 2000

Pound Lb 0.4535 0.0004535 0.000446429 0.0005 1

Mass Units

cm3 M3 Feet 3 Inch 3 Gal (UK) Gal (US) BBL Liters (Lt)

Cubic Centimeters cm3 1 0.000001 0.0000353 0.06102 0.00021997 0.00026417 6.2899E-06 0.006102

Cubic Meters M3 1000000 1 35.3147 61000 219.969 264.17 6.28976 1000.028

Cubic Feet Feet 3 28320.589 0.028317 1 1727.556 6.2288 7.4805 0.178107 28.321

Cubic Inch Inch 3 16.387 0.00001639 0.00057863 1 0.00360465 0.00432898 0.0001031 0.0163866

Gallon Gal (UK) 4546.09 0.004546 0.160544 277.42 1 1.20094 0.028594 4.54596

Gallon Gal (US) 3785.41 0.003785 0.133681 231 0.83268 1 0.02381 3.78533

Barrels BBL 158984 0.158988 5.6146 9698.024 34.9726 42 1 158.984

Liters Liters (Lt) 1000.028 0.001 0.03531 61.0255 0.219976 0.264178 0.0063 1

PCS PCI PCS PCI PCS PCI

Kcal/Kg Kcal/Kg Kcal/L Kcal/L Kj/L Kj/L

Liquid Fuels

Oil 10,800 10,008 9,374 8,686 39,250 36,371

Oleo Diesel 10,750 10,000 9,159 8,680 38,350 36,343

Oleo Fuel 10,090 9,583 10,217 8,318 42,780 34,827

Liquefied Petroleum Gas 11,750 11,000 6,486 9,548 27,160 39,977

Fuel Heat Rate Values by Fuel Type

Volume Units

PCS PCI PCS PCI

Kcal/m3 Kcal/m3 Kj/m3 Kj/m3

Gaseous Fuels

Humid Natural Gas 10,454 8,240 43,770 34,500

Dry Natural Gas 9,256 8,500 38,750 35,584

PCS PCI PCS PCI

Kcal/Kg Kcal/Kg Kj/Kg Kj/Kg

Solid Fuels

Charcoal 7,500 6,500 30,560 27,213

Coal Cokel 7,300 6,998 30,560 29,299

AES DOMINICANAAve. Winston Churchill No. 1099Ensanche PiantiniCiti GroupTower at Acrópolis, 23rd floorCP 10148Santo Domingo, Dominican RepublicTelephone: 809-955-2223Fax: 809-955-8413www.aesdominicana.com.do

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