'"

SOCOTECOII

PRESS RELEASE
6-hour rotational brownout, SOCOTECOII clarifies
With the two coal power plants, STEAGUnits 1 & 2, under preventive maintenance shutdown, the generation deficiency in Mindanao grid increased. The possibility of six hour-rotational brownout forecasted might happen, SOCOTECO II clarifies. Basis of which is the 3-hours rotating brownouts we experienced recently due to the shutdown of l-unit STEAGCoal Plant which is under Preventive Maintenance and the low water inflow of the Agus & Pulangi HEP. The declared generation deficiency on Tuesday, October 30, 2012 was at 390 megawatts. It is, however, expected to go lower with the onset of long holiday from November 1 to 4, 2012. Based on SOCOTECOII records, power demand on similar occasions can only be likened to that of a regular Sunday load, which is typically lower compared to other days. Majority of industrial and commercial establishments will observe this period as non-working days. Currently, SOCOTECOII has grouped the feeders into four, which load will be alternately curtailed starting 9AM to 9PM. This grouping can cater as much as 410 megawatts deficiency during peak hours. This is to clarify that the supposed news on six-hour brownout did not originated from SOCOTECOII. It may have been lifted by some local news outlets from other unverified sources. For more information, please call SOCOTECOII at 553-5848 to 50. #####

Approved

f7e:

~;(a1.0~T
General Manag October 31,20 Tel. No. 553-5848 to 50

STEAG statie power inc:.

SCHEDULED PREVENTIVE MAINTENANCE SHUTDOWN

Frequently Asked Questions

1 October 2012 1. When is the Preventive Maintenance Shutdown for the S,TEAG State Power Inc (SPI) Mindanao Coal Fired Power Plant scheduled to happen? The Scheduled Preventive Maintenance Shutdown (PMS) for the two electric generation units of STEAG State Power Inc. (SPI)- Mindanao Power Plant is set on: Unit 1, 105 MW (net) - 6 October to 4 November 2012 Unit 2, (105 MW (net) - 29 October to 10 November 2012 2. Why is it necessary to carry out a Preventive Maintenance Shutdown (PMS)? Carrying out the maintenance works as planned and scheduled will bring in long-term benefits to the Mindanao power consumers in terms the power plant's operational reliability. 3. How reliable has the SPIMindanao Power Plant been over the past six years of its operations? SPI'sMindanao Power Plant has sustained an impressive availability rate of 93.3% and a low unplanned outage rate of less than 1% during its first six years of operation. Moreover, even with its relatively long outage in October 2012, SPI is confident it can still achieve a high availability rate of 91% by the end of
2012.

SPI'spower plant is considered asthe most modern and the biggest in Mindanao on a per unit capacity. It hasso far delivered more than 8.3 billion kilowatt hours (kWH) of electricity representing about 20%of Mindanao's total power supply. 4. How many times has the SPIMindanao Coal Plant undertaken PMSin its past six years of operation? This will be the first time for SPIto undertake such a relatively long planned plant outage in six years after start of full commercial operations beginning 15 November 2006. S. Have the pertinent power authorities been informed of this planned PMS? The planned PMS has been approved by the National Grid Corporation of the Philippines NGCP) as recommended by the Mindanao Grid Operations and Maintenance Planning Group composed of National Grid Corporation of the Philippines (NGCP),the National Power Corporation (NPC) and its Independent Power Producers (lPPs). 6. Why is the PMS being undertaken at this particular point in time? The timing of the PMStakes into consideration the power plant's operations and maintenance guidelines as well as the projected electricity demand-supply condition of Mindanao during the period. The overarching goal is to minimize the possible adverse impact of power supply shortfall in the island.

'-"

7.

How important is SPI's Mindanao Coal Plant to the Mindanao Power Grid?
SPIJs plant operation since 2006 expanded the island's electricity contributed to the stability of the grid. generation mix and has thus far

8.

What is SPI?
SPI is a special purpose company established to build, operate and maintain Mindanao's first coal-fired power plant. The company is principally owned by Steag GmbH which is one of the largest electricity producers in Germany and a leader in advanced power from coal technology. More info about Steag and SPI, visit: SteagGmbH STEAGState Power Inc. www.steag.com www.steagstatepower.com

For further inquiries, please contact:

Jerome R. Soldevilla
Communications Officer STEAG State Power Inc. PHIVIDECIndustrial Estate, Villanueva Mlsamls Oriental, Mindanao Philippines Tel. +63 32 2308200; Fax: +63 32 2308283 Email: jerome.soldevilla@steagstatepower.com