National Power Corporation Roadmap and Strategic Plan 2014-2016: Towards Operational Reliability and Financial Sustainability

Urbano C. Mendiola, Jr.VP-Corporate Affairs, National Power Corporation

Briefing for DILG Usec. Edwin R. Enrile

30 June 2014

Presentation Outline

2

I. Mandates, Thrusts and Strategic Framework

• A. Supply of Electricity in the Missionary Areas

• B. Supply of Electricity from the Undisposed Generation Assets and IPP Contracts in the Main Grids

• C. Watershed Management and Climate Change Mitigation

• D. Dams Management and Flood Mitigation

• E. Business Development

II. Roadmap 2014-2016

III. Challenges, Strategies and Targets

3

I. Mandates, Thrusts and Strategic Framework

Mandates and Thrusts

4

Enhanced Missionary Electrification

Improved Watershed Management

Improved Dams Management

Generation and sale of electricity from

undisposed generating assets and IPP contracts

Reasonable Entry of Renewable Energy in the

Off-grids and Islands

Business development endeavors on power-

related services

[Section 70, RA 9136]

[Section 47 (f) and (j) of RA 9136]

[RA 6395; Sec. 34, RA 9136; Sec. 6c, Rule 23, RA 9136-IRR; E.O. 224]

[Sec. 3 (l), RA 6395] [Section 12, RA 9513]

[RA 6395; Sec. 6d , Rule 23, RA 9136-IRR]

Perform missionary electrification function through the Small Power Utilities Group (SPUG) and shall be responsible for providing power generation and associated power delivery systems in areas that are not connected to the main grids (Section 70 of RA 9136)

Operate and maintain undisposed generating assets, including Agus and Pulangi complexes [Section 47 (f) and (j) of RA9136]

Manage and rehabilitate watersheds and dams

• Continue to be responsible for watershed rehabilitation and management (Sec. 6(c), Rule 23 of RA 9136 IRR)

• Continue to be responsible for dam structure and all other appurtenant structure necessary for the safe and reliable operation of the hydropower plants (Sec. 6(d), Rule 23 of RA 9136 IRR)

• Enter into an operations and maintenance agreement with the private operator of the power plant to cover the dam structure and all other appurtenant facilities (Sec. 6(d) Rule 23 of IRR of RA No. 9136)

5

Mandate – RA 9136 (EPIRA)

Undertake the development of hydroelectric generation of power and the production of electricity from nuclear, geothermal and other sources

Establishment of subsidiaries pursuant to Section 3(l)

• Initiate the creation of business units pursuant to Item 6 of NPB Resolution No. 2009-28

6

Mandate – RA 6395 (Revised NPC Charter)

Section 2: Declaration of Policies

Accelerate the exploration and development of renewable energy resources such as, but not limited to, biomass, solar, wind, hydro, geothermal and ocean energy resources, including hybrid systems, to achieve energy self reliance.

Chapter IV: Off-Grid Renewable Energy Development

Section 12: Off-Grid Areas – “…NPC-SPUG or its successors-in-interest and/or qualified third parties in off-grid areas shall, in the performance of its mandate to provide missionary electrification, source a minimum percentage of its total annual generation upon recommendation of the NREB from available RE resources in the area concerned, as may be determined by the DOE.”

7

Mandate – RA 9513 (RE Law)

Strategic Framework

8

Customer

Internal ProcessFinancial

Learning & Growth

Sustainability and Customer Satisfaction

Supply of electricity from the undisposed generating assets and

IPP contracts in the Main Grids

Supply of Electricity in Missionary Areas

Productivity and Wellness

Employee Fitness Employee Competency

Net Income

Collection Efficiency

Vision We play a vital role in the electric power industry. With our wealth of experience and technical expertise, we uplift the quality of life in the country and its islands. We extend the same values of sustainability, reliability and safety

to the management of power systems, dams and watershed areas. This is our commitment to the Filipino people.

Mission With social progress as our ultimate goal, we shall be a partner in nation-building. We shall electrify the country to its farthest communities and manage our assets to ensure their sustainability. We commit to continuously improve

ourselves to better serve the public. All these for God and Country.

Core Values, Principles and Goals

S.T.A.R. Values: Sustainability, Savings Transparency, Teamwork Action, Ability, Accountability Reforms, Resiliency

Corporate Culture: (1) Customer Satisfaction; (2) Concern for Employees and Communities; (3) Performance Excellence and Transparency; (4) Creativity and Adaptability; (5) Best Practices and Processes

Revenue Generation

Performance of Missionary Electrification functions

Watershed Protection, Dams Management & Flood Forecasting

Operation & Maintenance of Undisposed generating assets and

IPP ContractsEngineering and Support services

9

II. Roadmap 2014-2016

II. Roadmap 2014-2016

10

A. Supply of Electricity in the Missionary Areas

2014 Missionary Electrification Coverage

11

Davao

Del Sur

Quezon

Catanduanes

Batanes

Mindoro

Palawan

Cebu

Bohol

IloiloAntique

Basilan

Sulu

Tawi-Tawi

Sultan

Kudarat

Cagayan

KalingaApayao

Isabela

Aurora

Romblon

MarinduqueAlbay

Samar

Leyte

Davao

Del Norte

Siquijor

Masbate

NPC-SPUG Power Plants 296No. of NPPs/QTPs 17Total Installed Capacity 352 MWTotal Dependable Capacity 282 MWBeneficiary Households 768,077Municipalities 207Provinces 36Service Areas 231Distribution Utilities (Electric Coops and LGUs) 49Total Length of Transmission Line 770 circuit-kilometersNo. of Substations 10Total Substation Capacities 170 MVA

*As of May 2014

SPUG Plants

12

Note:Additional New plants such as Atulayan DPP and Cabulan DPPExcluded Cabilao DPP, Paluan, PB110, PB111 and Palumbanes DPP(Not yet operational)

TOTAL NUMBER OF PLANTS: 296 Plants

SPUG Operating Hours

13

Note:Additional New plants such as Atulayan DPP and Cabulan DPPExcluded Cabilao DPP, Paluan, PB110, PB111 and Palumbanes DPP(Not yet operational)

TOTAL NUMBER OF PLANTS:

296 Plants

SPUG Rated Capacity

14Note:Included Rental Genset Capacity : 70.22 MW

TOTAL RATED CAPACITY: 211.109 MW(OWNED & RENTAL)

SPUG Gensets (Owned)

15Note:Excluded 57 Rental Gensets with Capacity of 70.22 MW

TOTAL RATED CAPACITY: 140.889 MWTOTAL NUMBER GENSETS: 505 Gensets

Household Distribution

16

Note:Additional New plants such as Atulayan DPP and Cabulan DPPExcluded Cabilao DPP, Paluan, PB110, PB111 and Palumbanes DPP(Not yet operational)

TOTAL NUMBER OF HOUSEHOLDS:

768,077

Household Distribution

17

TOTAL NUMBER OF HOUSEHOLDS:

768,077

Note:Additional New plants such as Atulayan DPP and Cabulan DPPExcluded Cabilao DPP, Paluan, PB110, PB111 and Palumbanes DPP(Not yet operational)

Privatization Status in the First Wave AreasAreas NPP

InstalledCapacity

Privatization Status Recommendations

1. Bantayan IslandBantayan Island Power

Corp. (BIPCOR)8.3-MW bunker Fully privatized

Remaining NPC facilities to be transferred to other areas; disposal of non-power assets

2. Masbate DMCI Masbate15.6-MW bunker

5.6-MW dieselFully privatized

Remaining NPC facilities to be transferred to other areas; disposal of non-power assets

3. Oriental Mindoro

Power One 9-MW bunker

Fully privatizedRemaining NPC facilities to be transferred to other areas; disposal of non-power asset

Ormin Power 6.4-MW bunker

Mindoro Grid Corp. (MGC)

10-MW diesel

Linao Mini Hydro 2.1-MW hydro

4. Mainland Palawan

Palawan PowerGeneration (PPGI)

19-MW bunker

Almost fully privatized (Roxas, Taytay, El Nido,

Rizal, San Vicente)

Lease of NPC generating assets to NPP (PPGI)

Power Source Phils Inc. 0.21 MW diesel

Delta P 16-MW bunker

DMCI Palawan Corp. 29.3-MW diesel

5. Catanduanes

Catanduanes Power Generation (CPGI)

3.6-MW bunker

Partially privatized

• Lease of NPC generating assets to NPP

• 3MW capacity for installation, but for transfer to other areas after privatization.

• EC should be responsible forprocuring its ancillary power requirements

Sunwest Water and Electric (SUWECO)

3.6-MW hydro

18

Privatization Status in the First Wave Areas

Areas NPP Privatization Status Recommendations

6. Siquijor SIPCORCSP completed, plant construction in progress (2.65 MW bunker)

Continue NPC operation until NPP plant commissioning

7. Camotes Sinag EnergyCSP completed, plant construction in progress

Continue NPC operation until NPP plant commissioning

8. Occidental Mindoro

Island Power CSP under TRO Extend rental

9. Marinduque 3i PowerCSP under TRO; with PSA but without any generating equipment installed

Extend rental

10. Tablas 3i Power CSP under TRO; with PSA but without any generating equipment installed

Extend rental

11. Romblon

3i Power CSP and NPP plant completed but operation is uncertain

Extend rental

Cantingas Mini-Hydro

0.90 MW hydro

12. Basilan Coastal PowerWith PSA but without any generating equipment installed

Acquire permanent facility instead of rental

13. Sulu (Jolo) --- Not yet feasible for NPPsAcquire permanent facility instead of rental

14. Tawi-Tawi --- Not yet feasible for NPPsAcquire permanent facility instead of rental

19

Privatization Status – Qualified Third Parties

20

Area QTP Installed Capacity Status NPC Task

1. Rio Tuba, Palawan

Power Source 0.21 MW diesel Fully taken over UCME Disburser

2. Busuanga, Palawan

Calamian Island Power Corp

(CIPC)

0.70 MW diesel7.74 MW diesel

CSP completed, plant construction in progress. Target commercial operation: August 2014

Extend rental until NPP plant commissioning

3. Malapascua, Cebu

Power Source Phils. Inc.

0.25 diesel/solar QSSC for endorsement to ERC

UCME Disburser

4. Casiguran, Aurora

Eco-Market Solutions

(RE Developer)

0.25 MW biomass • Only one unit commissioned

• Area is ready for interconnection to the main grid

Discontinue payment of UCME upon interconnection

2014-2016 SPUG Capacity Addition Program

21

AREAS

2014 2015 2016 TOTAL

Cap Add (MW)

Costs (MP)

Cap Add (MW)

Costs (MP)

Cap Add (MW)

Costs (MP)

Cap Add (MW)

Costs (MP)

LARGE AREAS 3.0 63.234 30.00 1,486.80 4.00 94.73 37.0 1,644.764

MEDIUM AREAS

6.0 69.171 6.40 63.21 1.50 - 13.9 132.381

SMALL AREAS 4.910 88.603 13.05 99.25 2.20 36.93 20.16 224.783

TOTAL 13.91 221.01 49.45 1,649.26 7.70 131.66 71.06 2,001.93

NEW AREAS 1.3 38.750 2.16 50.98 2.76 53.13 6.22 142.86

GRAND TOTAL 15.21 259.76 51.61 1,700.24 10.46 184.79 77.28 2,144.79

2014-2016 SPUG Transmission Line Program

22

SCHEDULE OF TRANSMISSION LINE PROJECTS

PROJECT NAME 2014 2015 2016

TOTAL

KMS.PROJECT

ESTIMATED COST (PHP)

TOTAL LENGTH, KMS. 128.23 108.91 214.31 451.45 2,719,633,141.00

OCCIDENTAL MINDORO 3.81 62.63-

66.44 155,026,350.00

CATANDUANES-

46.28 -

46.28 541,745,910.00

ORIENTAL MINDORO- -

47.31 47.31 188,244,960.00

PALAWAN 5.00-

167.00 172.00 1,501,439,491.00

MASBATE 119.42- -

119.42 333,176,430.00

2014-2016 SPUG Substation Program

23

SCHEDULE OF SUBSTATION PROJECTS

PROJECT NAME 2014 2015 2016

TOTAL

MVAPROJECT

ESTIMATED COST (PHP)

TOTAL CAPACITY, MVA. - 30.00 15.00 45.00666,314,780.00

CATANDUANES - 20.00 0.00 20.00287,836,000.00

ORIENTAL MINDORO - 10.00 5.00 15.00155,476,150.00

PALAWAN - 0.00 10.00 10.00223,000,000.00

Overview of the Existing Major NPC SPUG’s Rates

PURPOSE

COST

ADJUSTMENT

MECHANISMSICERA

UCME

To cover for the change in foreign

disbursements due to the changes in foreign

currency exchange rates

Subsidized Approved Generation Rate – to

recover partial cost of service approved by

ERC at 2003 level. No margin included.

To cover for the change in operating costs

due to the changes in prices of fuel and cost

of power purchased from IPPs

BASIC

CHARGE

To recover the cost of service not covered by

the SAGR. Approved by the ERC and

collected from all electricity end-customers,

subsidizing the cost of electricity service in

the island grid. No margin included.

* Prior to granting of other adjustments such as the P0.30/kWh MRR & 3% PPD, among others.

UNIVERSAL

CHARGE

NPC-

TCGR

True-Up To recover the difference between approved

UCME and the actual UCME requirements.

SAGR

GRAM

Transmission

RatesTo recover the cost of the transmission

network facilities.

24

NPC-SPUG RATES

ACTUAL and PROJECTED ENERGY SALES

PSP Areas -NPC

Other Areas -NPC

PSP Areas –NPP/QTP

Total Energy Sales

26

ACTUAL AND PROJECTED UC-ME SUBSIDY REQUIREMENTS

PSP Areas -NPC

Other Areas -NPC

PSP Areas

–

NPP/QTP

Total Required UCME

27

II. Roadmap 2014-2016

28

• 1. Angat HEP and Power Barges 101 to 104

• 2. Agus and Pulangi HEPC (Mindanao Generation)

• 3. Decommissioned and Mothballed Plants

• 4. IPP Contracts Management

B. Supply of Electricity from the Undisposed Generation Assets and IPP Contracts in the Main Grids

Plans for the O&M of Undisposed Generation Assets and IPP Contracts in the Main Grids 2014-2016

29

• Continue O&M until turnover to successor generating companies

Angat HEP and Power Barges 101 to 104

• Pursue capacity improvement projects

• Continue O&M until Congress decides on the privatization plan

Agus and Pulangi HEPC (Mindanao Generation)

• Continue preservation until privatizationDecommissioned and

Mothballed Plants

• Continue administration of IPP contracts until transfer to IPPA

IPP Contracts Management

Plans for O&M of Agus-Pulangi HEPC 2014-2016

30

Programs 2014 2015 2016 Budget

1. Uprating of Units 1 & 2 of Agus 6 HEP - - 14 P 1.596 Bn

2. Rehabilitation of Unit #4, Agus 6 HEP - 15 - P 496 Mn

3. Maximize capacity (60 MW) of Agus 2 HEP through implementation of Balo-I Plains Flood Control Project

- - 60 P 1.9 Bn

4. Increase Energy Output of Pulangi 4 HEP through Selective Dredging

- - - P 265 Mn

TOTAL CAPACITY (MW) FOR AGUS & PULANGI HYDRO COMPLEXES

982 997 1,071 P 4.257 Bn

OPTIMIZED PLANT GENERATION FORECAST (KWH)

5,696,856 4,916,029 4,996,621

NOTE:

• Generation forecast for 2015 & 2016 is affected when Uprating of Units 1 & 2 and the Rehabilitation of Unit No. 4 both of

Agus 6 HEP shall commence;

• Generation forecast for 2017 will increase to 5,064,199 kWh, with the assumptions that the Agus 6 HEP Projects are

completed and that the indicative power projects for Mindanao are already on-line/operational.

II. Roadmap 2014-2016

31

C. Watershed Management and Climate Change Mitigation

Watershed Management

32

Reduction of

sedimentation

in the

reservoirs

Improvement

and stabilization

of hydrologic

regime

Mitigation of the

environmental

impacts of

power

generation

Sustainability of

watershed

resources

OVERALL OBJECTIVES:

LUZON

VISAYAS

MINDANAO

Upper Agno Watershed(123,000 hectares covering the

province of Benguet)

Makiling-Banahaw Watershed(162,000 hectares covering the province of

Laguna, Batangas and Quezon)

Angat Watershed(57,000 hectares covering the

province of Bulacan and Rizal)

Caliraya Watershed(10,772 hectares covering the province

of Lagunal)

San Roque Watershed(9,550 hectares covering the province of

Pangasinan and Benguet)

Tiwi Watershed(17,661 hectares covering the

province of Albay)

Pulangi Watershed(16,584 hectares covering the

province of Bukidnon)

Lake Lanao-Agus Watershed(43,066 hectares covering the province of

Lanao del Norte and Lanao del Sur)

Magat Watershed(4,300 hectares covering the

province of Ifugao)

Pantabangan Watershed(14,166 hectares covering the province of

Nueva Ecija)

Buhi-Barit Watershed(18,370 hectares covering the

province of Camarines Sur)

Under EO 224

MOA with DENR/NIA

Total Open Areas for

Rehabilitation

155,100 ha

Areas Vested to NPC

476,469 ha

11 Watershed Reservations Under NPC Management

Watershed Management Program 2014-2016

34

CY 2014

Ecotourism Development Program

• Due Diligence and Partnership Agreement for Angat

• Framework Development for Caliraya-Lumot

CY 2015

• Ecotourism Park Development for Angat

• Partnership Agreement for Caliraya-Lumot

• Ecotourism Plan for 5 watersheds

CY 2016

• Operationalization of Ecotourism Program in Angat and Caliraya (6,000 visitors/year/ watershed)

• Partnership Agreement and Ecotourism Park Development for 5 watersheds

II. Roadmap 2014-2016

35

D. Dams Management and Flood Mitigation

Dams Management

36

Ensure that

downstream

communities

are not exposed

to risks from

dam operation

Compliance to

requirements of

responsible dam

ownership and

environmental

protection

Manage flood

forecasting and

reservoir

inflow/outflow to

optimize

revenues

Preserve the

long-term value

of NPC dams,

reservoirs and

waterways

OVERALL OBJECTIVES:

17 Dams Under NPC Management

37

Dam Safety Monitoring

Mandatory semi-annual inspection

Information Educational Campaign

Updating of Dam Protocol, Dam

Safety Program & EAP

Reservoir Sedimentation Survey (Bathymetric

Survey)

Continue to Operate FFWS Stations

Dams Management Program 2014-2016

II. Roadmap 2014-2016

39

• 1. Establishment of Major Repair and Maintenance Department (MRMD) as Profit Center

• 2. Watershed Agro-Forestry and Eco-Tourism

• 3. Business Plan for NPC Training Institute

E. Business Development

Establishment of MRMD as Profit Center

40

Major Repair and Maintenance Dept. (MRMD)

Services Offered

• Calibration

• Repair & Re-conditioning

• Fabrication

• Dynamic Balancing

• Rehabilitation

• Installation

• Alignment/ Overhauling

• Inspection & Assessment

• Testing

Business Development Plan 2014-2016

41

• Continue offering MRMD services and invest in machineries/equipment as necessary

MRMD as Profit Center

• Pursue Watershed Agro-forestry and Eco-tourism operationalizationWatershed Business

• Explore the setting up of NPC Training Institute to offer plant operation and maintenance and other technical services courses

• Pursue NPC Training Institute if business plan study is sound

Training Institute

42

III. Challenges, Strategies and Targets

Challenges in Fulfilling the Mandates

43

High Production Cost• About 60% of cost is fuel

and 40% is O&M and support

• Fuel cost per kWh is influenced by Fuel price and Fuel rate

• Manpower conversion rate is low, MW/personnel

Privatization Issues and Concerns• Indeterminate privatization, disposal and turnover schedules• Increased contractual issues with IPPs• Privatization scheme for Agus Complex considering its nature

of cascading hydro plants• Proposal to create the Mindanao Power Corporation• Effects on the Sharing Scheme and Implications with the

Bangsamoro Entity

SUPPLY OF ELECTRICITY FROM THE UNDISPOSED GENERATING ASSETS AND IPP CONTRACTS IN THE MAIN GRIDS

SUPPLY OF ELECTRICITY IN MISSIONARY AREAS

Unreliable Power Supply• Most of the large existing

units are old and inefficient• Huge overdue account of

BASULTA ECs• Impact of Sitio

Electrification Program (SEP) and Barangay Line Extension Program (BLEP)

Uncertain Private Sector Entry

• Legal impediments in SPUG privatization

• Non-performing NPPs with existing contracts with ECs

Delayed Entry of AddionalCapacity from Private

Sector• Deferred plant

preventive maintenance due to low grid supply situation

Challenges in Fulfilling the Mandates

44

Open/Denuded forest cover

• Total of 155,100 has. open areas for rehabilitation

DAMS MANAGEMENT AND FLOOD MITIGATION

WATERSHED MANAGEMENT AND CLIMATE CHANGE MITIGATION

Protection of watershed resources

• Forest Law enforcement

• Biodiversity conservation

• Land Occupancy

Availability of funds

• Delay in UC-EC approval

Natural and Man made calamities

• Structural and vegetative erosion

• Unabated exploitation of minerals and forest resource

FFWSDO Equipment/ Technology

• To upgrade as to minimize

maintenance cost and lack of

equipment spares

Dam Safety and Integrity

• Review/Study of existing rules in

order to conform with the recent seismic design

considerations and floods due to

climate change

Manpower Succession

• Challenging knowledge management/ succession

LGU intervention during flooding

operations• Can endanger

the safety of the dam structure

Strategies

45

KR

AST

RA

TEG

IES

OB

JEC

TIV

ES To provide the necessary infrastructure in areas that will remain with NPC-SPUG to achieve

total electrification

To achieve operational reliability in areas where NPC-

SPUG operates

Supply of Electricity in the Missionary Areas

MFO

Financial Sustainability

1. Pursue timely approval of required UCME and updating of SAGR

2. Pursue funding of CAPEX from other sources

3. Improve collection efficiency

4. Consider Municipal Power Association (MUPA) concept

5. Reduce production cost

Power Supply Adequacy

1. Augment capacity thru acquisition

2. Include N-1 provision3. Acquire gensets for

emergency purposes 4. Electrify new areas5. Increase plant

operating hours6. Adopt renewable

energy options7. Put up transmission

line and substation projects in Large areas

Transfer of missionary areas to private sector

1. Delineate missionary areas for EC CSP or for inclusion in NPC plan

2. Consolidate the areas/ capacities to attract investors

3. Offer existing plants for O&M by private sector

4. Come up with UCME Graduation Program

5. Promote the privatization program

6. Adopt rentals or install modular gensets with assignability option

Plant Operational Efficiencies

1. Refleet ageing/ inefficient gensets

2. Manage maintenance schedules and spare parts availability

3. Adhere to Fuel Operations Manual by managing the fuel supply chain and improving fuel economy

4. Adopt “industry best practices” in plant operations

5. Install fuel oil storage tanks, flow meters and reclosers

To enhance the inflow of private capital in the

missionary areas

To ensure funding for Missionary Electrification

Strategies

46

KR

AST

RAT

EGIE

SO

BJE

CTI

VES To operate and maintain the undisposed

generating assets with optimum efficiency and least cost to support power requirements in the main grids.

Supply of electricity from the undisposed generating assets and IPP contracts in the Main Grids

MFO

Plant Operational Efficiencies

1. Properly implement maintenance programs

2. Efficient and safe loading of the units3. Efficient operation of turbine generator

units and auxiliaries using available water in-flows

4. Implement various MinGen projects aimed at enhancing capacity for the grid

5. Vigilant monitoring of operating performance parameters

To assure the delivery of energy output from IPPs

To normalize the NPC book of accounts

Accurate and Timely processing of IPP billings

Reconciliation of Accounts Retained under the NPC

Temporary Registry + Asset in Trust with NPC

1. Prompt and accurate validation of billings submitted by IPPs

2. Proper and close coordination with IPPs. Regular Steering Committee meetings. Involve OLC and Finance as necessary

1. Continuous validation and analysis of accounts

2. Complete documents by conducting ocular inspection of the assets

Strategies

47

KR

AST

RA

TEG

IES

OB

JEC

TIV

ES To provide watershed support for the hydro and geothermal power plants and provide

livelihood in the communities surrounding the watershed areas.

Watershed Management

MFO

Reforestation of Open Areas

1. Fast Track rehabilitation and restoration of open , denuded and marginal lands within the watershed through increased UC-EC funding, partnerships with New Plant Owners and IPP's, Private groups and LGU's.

2. Protection of the remaining forests through forest patrol and vigilance, partnerships with volunteers, Peoples organizations, military and other government agencies.

3. Develop income generating programs in the watershed thru agroforestry, agribusiness ventures, ecotourism, carbon trading etc.

4. Mobilizing the citizens for a shared responsibility in watershed management

To ensure dam safety and flood mitigation.

1. Conduct dam safety assessment twice a year

2. Procure Independent or 3rd Party safety inspection at 5-year intervals

3. Reservoir Sedimentation monitoring

4. Procure updated FFWSDO equipment

5. Propose a Dam Safety Bill

Dams Management

Eco-tourism Development for Angat

and Caliraya

Mandatory Dam Inspections and

Monitoring

Community Development/ Disaster

Preparedness

1. Conduct public awareness about NPC dams and reservoirs particularly during TD/TS

2. Mitigation and Risk Reduction on the consequence of flooding/ dam breach

3. Effective and efficient communication with dams stakeholders

Our Targets for 2014-2016

48

END OF 2016

ACCOMP-

LISHMENT

1st Sem 2nd Sem 1st Sem 2nd Sem 1st Sem 2nd Sem

Quality 1: Percentage of

Readiness of Existing Plants

(Equivalent Availability Factor)% 64.52% 65.44% 65.44% 66.280% 66.280% 68.64% 68.64% 68.64%

Quality 2: Percentage of

Unexpected Power Interruption

(Forced Outage Rate)% 0.284% 0.280% 0.280% 0.278% 0.278% 0.274% 0.274% 0.274%

Quality 3: Plant Operation

Efficiency (Net Heat Rate)Btu/kWh 10,813 10,813 10,813 10,937 10,937 10,975 10,975 10,975

Quality 4: Plant Operational

Efficiency (Production Cost) P/kWh 15.207 15.28 14.60 17.71 17.71 17.40 17.40 17.40

Quality 5a: Collection

Efficiency with BASUTA

Customers% 49.16% 24.70% 49.41% 24.82% 49.65% 24.95% 49.90% 49.90%

Quality 5b: Collection

Efficiency without BASUTA

Customers% 96.52% 48.26% 96.52% 48.26% 96.52% 48.26% 96.52% 96.52%

2015 2016

MFO 1: Supply of Electricity in Missionary Areas

PERFORMANCE MEASURESBASELINE

DATATARGETS

DESCRIPTION UNIT 2013

2014

Our Targets for 2014-2016

49

END OF 2016

ACCOMP-

LISHMENT

1st Sem 2nd Sem 1st Sem 2nd Sem 1st Sem 2nd Sem

Quantity 1a: Completed

Capacity Additions- Lease MW 51.9 55.80 55.80 29.9 29.9 0 0 0

Quantity 1b: Completed

Capacity Additions-

CommissionedMW 6.00 2.400 13.425 0 19.244 30.000 3.600 68.669

Quantity 2: Transmission Lineckt. km N/A 0 128.23 0 141.22 15 242.1 526.55

Quantity 3: Substation

FacilitiesMVA N/A 0 0 10 20 0 15 45

Financial 1: Net Operating

Income/(Loss) without UCME P Billion (4.939) (3.125) (3.013) - (6.582) - (6.853) (6.853)

Financial 2: Net Operating

Income/(Loss) with UCME P Billion 2.289 0.583 2.170 - 3.786 - 2.224 2.224

Re-fleeted Capacity MW 0 0.000 0.000 4.50 7.80 0 10.2 22.50

New Areas Electrified No. 3 0 3 0 26 0 20 49

Areas with Increased Service

HoursNo. 1 0 20 0 92 0 20 132

2015 2016

MFO 1: Supply of Electricity in Missionary Areas

PERFORMANCE MEASURESBASELINE

DATATARGETS

DESCRIPTION UNIT 2013

2014

Our Targets for 2014-2016

50

END OF 2016

ACCOMP-

LISHMENT

1st Sem 2nd Sem 1st Sem 2nd Sem 1st Sem 2nd Sem

Quality 1: Percentage of

Readiness of Existing Plants

(Availability Factor)% 91.20% 85.38% 85.38% 86.20% 86.20% 87.06% 87.06% 87.06%

Quality 2: Percentage of

Unexpected Power Interruption

(Forced Outage Rate)% 0.326% 0.280% 0.280% 0.273% 0.273% 0.285% 0.285% 0.285%

Quality 3: Plant Operational

Efficiency (Production Cost) P/kWh 0.512 0.580 0.580 0.600 0.600 0.600 0.600 0.600

Quantity 1: Reforestation of

Open Areas Hectares 498 0 530 0 670 0 762 1,962

Quantity 2: Number of

Mandatory Dam Inspection No. 10 5 5 5 5 5 5 30

MFO 3: Management of Dams and Watershed

2015 2016

MFO 2: Supply of Electricity in the Main Grid (Agus and Pulangi HEPP)

PERFORMANCE MEASURESBASELINE

DATATARGETS

DESCRIPTION UNIT 2013

2014

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