statistical report 2015aesmcac.com/aesdominicana/wp-content/uploads/2016/...gas turbine: a machine...

Ave. Winston Churchill No. 1099, Ensanche PiantiniTorre Citi Group en Acrópolis, Piso 23CP 10148Santo Domingo, Dominican RepublicTelephone: 809-955-2223Fax: 809-955-8413www.aesdominicana.com.do

2015STAT IST ICAL REPORT

Design and Layout:Luis Isidor / Q Estudio Creativoqestudiocreativo.comDigital Implementation:José García / Equipo 3

2015STAT IST ICAL REPORT

The 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 17 countries.

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

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

10 AES DOMINICANA 2015

12 Letter from the President14 People of AES16 AES Dominicana Background17 Group Profile18 Power Generation Units28 Fuel Reception Facilities30 Natural Gas Sales32 Energy Balance34 Operational KPI's35 Operational Relevant Events

36 WHOLESALE ELECTRICITY MARKET

38 Brief History of Dominican Republic's Electric Sector40 Generation46 Transmission46 Distribution47 Energy Balance48 Capacity49 System Maximum Demand50 Energy Supply by Fuel Type50 International Fuel Prices52 Energy Spot Price53 Capacity Spot Price and Connection Right54 Frequency Regulation Service56 Non-Regulated Users Market58 Contract Market

60 ATTACHMENTS

62 Glossary65 Tables and Measures

CONTENTS

AES DOMINICANA 2015

12 / STATISTICAL REPORT 2015 AES DOMINICANA 2015 / 13

LETTER FROM THE PRESIDENT

It is a great pleasure to present the 2015 edition of the statistical report of AES Dominicana, highlighting our main assets, operational performance, as well as information on other lines of business and data of the electricity market as a whole.

This year our units reached extraordinary availability indices and contributed to the National Interconnected Electric System (SENI) with large volumes of energy, especially the production of our units in relation to the rest of the market: AES Andres production reached 2,065.6 GWh, on the other hand ITABO SA and DPP achieved high levels of production of 1,776 and 1,469.3 GWh respectively.

We are proud to contribute with 37.5% of all the energy demanded by the SENI using the most competitive generation fuels, natural gas and coal.

In the corporate and human resources management field, the American Chamber of Commerce (AMCHAM) recognized AES Dominicana for its corporate social responsibility, by awarding it the first place in the category "Quality of Life in the Company", to promote a healthy and safe work environment, including both personal and professional development of its employees.

Another indicator in which AES Dominicana has remained steady for 8 consecutive years is being recognized as the most admired company in the national electricity industry, in the range of power generation companies, according to the ranking "2015 Most Admired" by the magazine “Market”. On the Best Places to Work ranking, published by the GPTW Institute, we have positioned ourselves in the 8th position within DR and in the 9th in the CA and Caribbean region.

These 8 years of recognition highlight the value that adds the AES group to the economic development and the daily compromise of a group of professionals committed to operational excellence.

AES Dominicana also demonstrates its commitment to the country to strengthen its position on environmental management. In 2015 it received several awards in the 3rd edition of the National Award for Cleaner Production, contest organized by the Ministry of Environment and Natural Resources, which rewards the work of companies that demonstrate the implementation of the strategy for a cleaner production (efficiency energy, sustainable use of natural resources, reduction / prevention of pollution, among others).

AES Dominicana continues to focus its strategy on the competitiveness of the Dominican Republic, maintaining a constant strategy of innovation and competitive transformation; all resulting in significant savings for the national economy. We have become the bastion of stability of the electrical system by consistently developing our people, giving the possibility of providing a helping hand to the communities around us and offering our shareholders areliable and sustained return for their investment.

Edwin De los SantosPresident

2,065.6 GWhAES Andres

1,776 GWhITABO

of the energy demanded by SENI

37.5%

1,469.3 GWhDPP


SAFETY FIRST

We will always put safety first for our people, contractors and communities.

ACT WITH INTEGRITY

We are honest, trustworthy and dependable. Integrity is the core of all we do, how we conduct ourselves and how we interact with one another and all of our stakeholders.

HONOR THEIR COMMITMENTS

We honor our commitments to our communities, customers, teammates, owners, suppliers and partners; and we want that our businesses, 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 difference.

PEOPLE OF AES...


BACKGROUND

GROUP PROFILE

The first investment of AES in the Dominican Republic was the purchase 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 Independent 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 commitment 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.

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

In December of 2000, AES took another 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, selling its excess generation and buying what it needs in the spot market.

Also in 2003, AES ANDRES began its operations and became the most efficient power station of Latin America, 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 derivatives to supply its electricity needs.

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

As a business group, AES Dominicana combines a global perspective with deep local knowledge and a relentless commitment to operational excellence. There has been a consistent pattern of improvement, year after year in energy generation and efficiency. AES serves as role model 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: consisting of its code of conduct, corporate social responsibility, environmental care and its people, which are its most valuable resource.

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, destined to the unloading process of coal and LNG as fuel input for electricity production process. Also, at AES Andres’ facilities, has the first LNG terminal intended for the distribution of liquefied natural gas in specialized trucks.


Commercial Operation Date:

December 2nd, 2003

Gas Turbine Manufacturer: Mitsubishi

Gas Turbine Capacity: 198 MW

Gas Turbine Speed: 3,600 rpm

Inlet Heat Recovery Steam Generator Temperature: 610 ºC

Gas Turbine Generator Manufacturer: Mitsubishi

Gas Turbine Generator Nameplate Capacity: 218.5 MVA

Gas Turbine Generator Nominal Voltage: 18 kV

Gas Turbine Generator Cooling System: Air

Steam Turbine Manufacturer: Hitachi

Steam Turbine NameplateCapacity: 121 MW

Steam Turbine Speed: 3,600 rpm

Steam Pressure: 124 kg/cm²

Steam Temperature: 568 ºC

Steam Turbine Generator Manufacturer: Siemens

Steam Turbine Generator Nominal Capacity: 134 MVA

Steam Turbine Generator Nominal Voltage: 13.8 kV

Steam Turbine Generator Cooling System: Air

Advantages: Low Environmental Impact and More Energetic Efficiency

Ventajas de esta Tecnología:

Bajo Impacto Ambiental y Mayor Eficiencia Energética

AES ANDRESInstalled Capacity:

319 MW

Primary Fuel:

NATURALGAS

Technology:

COMBINEDCYCLE

POWER GENERATION UNITS



May 19th 1996

Manufacturer: Westinghouse

Turbine Speed: 3,600 rpm

Turbine Stages: Four (4)

Compressor Stages: Nineteen (19)

Outlet Gas Temperature: 630 ºC

Generator Nameplate Capacity: 2 x 142 MVA

Generator Nominal Voltage: 13.8 kV

Generator Speed: 3,600 rpm

Generator Cooling System: Air

Advantages: Fast Manufacture and Installation; Low Environmental Impact

DPP

Installed Capacity:

2x118 MW

Primary Fuel:

NATURALGAS

Technology:

GASTURBINE




July 17th, 1984

Turbine Manufacturer: Brown Bovery Company




Generator Manufacturer: Foster Wheeler

Generator Nameplate Capacity: 150.6 MVA


Generator Cooling System: Hydrogen

Advantages: Provides Economic Base Electricity Generation

ITABO 1

Installed Capacity:

128 MW


Technology:

STEAMTURBINE

Primary Fuel:

MINERALCOAL

Secondary Fuel:

FUEL OIL 6

Tertiary Fuel:

FUEL OIL 2



May 10th, 1988

Turbine Manufacturer: General Electric




Generator Manufacturer: General Electric



Generator Cooling System: Hydrogen

Advantages: Provides Economic Base Electricity Generation

ITABO 2

Primary Fuel:

MINERALCOAL

Technology:

STEAMTURBINE


Installed Capacity:

132 MW

Secondary Fuel:

FUEL OIL 6

Tertiary Fuel:

FUEL OIL 2



August 25th 2014

Manufacturer: General Electric


Turbine Stages: Three (3)

Compressor Stages: Seventeen (17)

Outlet Gas Temperature: 550 ºC



Generator Speed: 3,600 rpm

Generator Cooling System: Air

Advantages: Operational flexibility with fast step-up to meet increased demand during peak hours.

SAN LORENZO

Installed Capacity:

34.5 MW

Primary Fuel:

FUEL OIL 2

Technology:

GASTURBINE


Secondary Fuel:

NATURALGAS


AES Andres’s International PierAES Andres Power Station is located at Boca Chica, just fifteen (15) minutes from Santo Domingo. The power stationhas a pier and a LNG terminal that also has the capacity to tranfer Fuel Oil #2.

Liquefied Natural Gas (LNG) TerminalInside the LNG facility, the unloading system consists of three (3) unloading 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 addition, the terminal has a re-gasification 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 consequence of the storage and conversion process that takes place in the system, in order to keep the inner pressure of the tank at an atmospheric pressure.

AES Andres – DPP Natural Gas PipelineIn addition to the LNG Terminal, a natural gas pipeline was built in order to supply natural gas to the DPP power units, improving its efficiency and competitiveness.

Technical Details of Gas PipelineLength: 34 km / Pipe Diameter: 12 inches / MaxPressure: 100 bar / Average Pressure: 50 bar / Control 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 Corporation group, began its operations. This generation plant fuel is supplied through a pipeline connected to DPP # 4 gas station, located at Los Mina’s facility.

Cryogenic Distribution TerminalIn 2009, AES Dominicana decided to invest in the first LNG truck loading terminal in Latin America, for the distribution of liquefied natural gas directly to other customers besides AES. 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 possibility to duplicate the capacity) and a truck loading rate of 35 m3/h each bay, which means that the average customer service time (from admission to the complex to the departure) is approximately one hour.

ITABO S.A. International PierThe International Pier of ITABO is located in the coastal area of the ITABO power plant in the municipality of Bajos de Haina in the province of San Cristobal. The pier is located next to the western port of Haina, approximately 8 kilometers southwest of Santo Domingo’s western quadrant.Since 2006, ITABO International Pier has been operating as a reception point for mineral coal, which is the main fuel of the this steam process 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 solids with the capacity to load and unload bulk products. In addition, it has a mooring system with six (6) dolphins, four berthing dolphin providing a point to moor and two mooring dolphin for the ship’s engagement to the pier. It also has a signaling system 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: Enables the docking of vessels like Handymax (45,000 mt) and Panamax (65,000 mt). Auto-discharging vessels required.- Discharge Capacity of 1,200 metric tons per hour.

FUEL RECEPTION FACILITIES


Market Evolution of Third-Party Natural Gas Sales[10.51 TBtu]

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

2012

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-

TBtu

2013 2014 2015

NGV

INDUSTRIAL

ELECTRICITY GENERATION

39%

51%

10%

Since 2007, two years after AES Andres signed its first natural gas supply agreement with a local distribution company; AES Dominicana has been at the forefront of the business in selling natural gas, opening the door to nationwide distribution 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 2015 separated into three economic sectors: Industrial, Electricity Generation and Transportation (Natural Gas Vehicles).

Natural Gas Sales Sectioned by Industries[10,509,425 MMBtu]

The following graph shows the monthly natural gas sales by economic sector during 2015.

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 that AES Andres sold in the Dominican market in 2015 separated into three economic sectors: Industrial, Electricity Generation and Transportation.

NATURAL GAS SALES

Natural Gas Sales Regarding to Energy Consumption[10,509,425 MMBtu]

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


ENERGY BALANCE

The table below details AES Dominicana’s 2015 monthly energy production balances, the relation between energy purchases and sales through contracts and spot market transactions.

AES Dominicana Energy Balance[GWh]

Energy Sales[5,414.19 GWh]

AES ANDRES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2015

CONTRACT SALES

EDEESTE 79.4 71.1 80.4 80.8 85.4 86.6 92.1 90.7 88.4 91.4 81.0 85.6 1,012.9

DPP 16.0 0.1 0.7 1.7 9.3 10.4 11.6 6.7 8.7 23.2 4.0 6.9 99.3

UNR 45.9 46.3 53.0 50.5 53.1 52.0 55.5 52.8 52.3 54.0 50.4 46.7 612.4

SPOT SALES (SPOT PURCHASES) (36.08) (118.69) 33.12 41.67 24.03 23.41 16.45 25.79 22.36 11.79 36.23 59.85 139.9

PRODUCTION 105.78 0.79 188.54 196.22 191.63 191.49 193.68 196.29 190.95 197.54 192.28 220.43 2,065.6

ITABO S.A.

CONTRACT SALES

EDESUR 61.7 57.1 64.8 64.0 67.7 69.6 73.0 72.8 71.4 74.2 65.3 67.1 808.9

EDENORTE 45.0 40.7 46.2 48.3 50.5 49.8 52.9 53.3 51.5 52.8 47.5 48.3 586.8

EDEESTE 26.5 23.7 26.8 26.9 28.5 28.9 30.7 30.2 29.5 30.5 27.0 28.5 337.6

SPOT SALES (SPOT PURCHASES) 34.8 14.2 (14.5) (21.5) (9.7) (8.1) 4.9 1.1 9.9 3.9 7.1 20.2 42.2

PRODUCTION 168.0 135.7 123.5 117.8 137.1 140.2 161.5 157.5 162.2 161.3 147.0 164.1 1,776.0

DPP

CONTRACT SALES

EDEESTE 111.2 99.5 112.6 113.1 119.6 121.2 128.9 127.0 123.8 128.0 113.4 119.8 1,418.0

CONTRACT PURCHASES

ANDRES 16.0 0.1 0.7 1.7 9.3 10.4 11.6 6.7 8.7 23.2 4.0 6.9 99.3

SPOT SALES (SPOT PURCHASES) 14.0 23.9 25.2 14.1 8.7 4.8 3.3 6.3 7.2 8.1 18.2 13.7 147.5

PRODUCTION 109.4 123.5 137.4 125.8 119.3 115.9 120.9 126.8 122.6 113.1 127.8 126.9 1,469.3

Contract Sales[4,776.64 GWh]

10%

90%

SPOT

CONTRACT SALES

ITABO, S.A.Through hole 2015, the energy contract between ITABO S.A and EDEESTE, EDESUR and EDENORTE.

DPPThrough hole 2015, the energy contract between DPP and EDEESTE continued. As the energy back-up contract between Andres and DPP.

13%

87%

NON-REGULATED USER

DISTRIBUTION COMPANY


OPERATIONAL KPI’S

The following table shows the most common indicators and operational rates applied to the power generation units of AES Dominicana. As we can evaluate from the following chart the 2015 Equivalent Availability Factor (EAF) was a very particular indicator for each one of AES Dominicana generation units. 2015 was a year for AES ANDRES and DPP considering that the EAF levels go through 87.96% for AES ANDRES to a great 97.4% for DPP. This represents the result of all the effort and investment dedicated to the Operational Excellence.

Other important fact is that through all 2015 the EAF percentage for ITABO’s generation Units (ITABO 1 and ITABO 2) keeping levels between 89.47% to 81.88%. 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

AES Dominicana EFOF

OPERATIONAL RELEVANT EVENTS

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

%

The most relevant operative event on 2015 for AES Dominicana generation units can be resumed to mayor maintenance outages periods. This and other relevant events are presented on the following table:

Operational Relevant Events

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

LOS MINA 6 Major maintenance 5-Jan-2015 13-Jan-2015 192

AES ANDRES Major maintenance 18-Jan-2015 27-Feb-2015 960

ITABO 1 Major maintenance 26-Feb-2015 7-Mar-2015 216

ITABO 2 Major maintenance 15-Apr-2015 7-May-2015 528

LOS MINA 5 Major maintenance 29-May-2015 2-Jun-2015 96

DPP Maximum annual energy generation in DPP [1,469.29 GWh] 2015

It was a good year for AES ANDRES and DPP considering that the EAF levels go through 87.96% for AES ANDRES to a great 97.4% for DPP.

WHOLESALE ELECTRICITY MARKET

38 / STATISTICAL REPORT 2015 WHOLESALE ELECTRICITY MARKET / 39

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 electricity sector.

In the mid-90s, CDE signed several power purchase agreements 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 companies: CDEEE, a parent holding company; three distribution companies: EDENORTE, EDESUR and EDEESTE; three generation companies: HAINA, ITABO, HIDRO; and the power transmission company ETED.

In 1999, the three distribution companies and the two thermal 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, establishing 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 General 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.

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.

BRIEF HISTORY OF THE DOMINICAN ELECTRICITY SECTOR


GENERATION

The electricity generation park of the Dominican Republic is mainly composed of 81.42% of thermoelectric units, 16.46% hydroelectric units while the other 2.12% is composed of wind generation.

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

Installed Capacity by Technology[3,741.08 MW at December 2015]

Installed Capacity by Company and Technology[At December 2015]

It is important to note that, AES Dominicana, with its AES Andres, ITABO S.A. and DPP power plants encompassed 22.7% 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 December 2015, specifying the fuel, technology and installed capacity.

AES Dominicana, with its AES Andres, ITABO S.A. and DPP power plants encompassed 22.7% of the installed capacity of the generation park.

STEAM TURBINE 16.2%

GAS TURBINE 9.9%

WIND TURBINE 2.1%

DIESEL ENGINE 17.9%

COMBINED CYCLE 35.9%

NATURAL GAS ENGINE 1.6%

HYDRO TURBINE 16.5%

16.2%

16.5%

17.9%

35.9%

Installed Capacity by Fuel Type[3,741.08 MW at December 2015]

FUEL OIL 6 42.1%

FUEL OIL 2 10.7%

FUEL OIL 6 / NATURAL GAS 4.5%

FUEL OIL 2 / NATURAL GAS 0.9%

COAL 8.4%

WIND 2.1%

NATURAL GAS 14.8%

WATER 16.5%

10.7%

42.1%

14.8%

16.5%

GENERATION COMPANY STEAMTURBINE

GASTURBINE

COMBINEDCYCLE

DIESELENGINE

NATURAL GASENGINE

HYDRO WINDTURBINE

TOTAL

[MW] [%]

AES ANDRES 319.0 319.0 8.5%

ITABO S.A. 260.0 34.5 294.5 7.9%

DPP 236.0 236.0 6.3%

AES DOMINICANA 260.0 270.5 319.0 849.5 22.7%

EGE HAINA 346.1 100.0 215.0 102.0 79.5 842.6 22.5%

EGEHID 615.7 615.7 16.5%

METALDOM 42.0 42.0 1.1%

SEABOARD 108.0 108.0 2.9%

GPLV 194.5 194.5 5.2%

MONTE RIO 39.8 39.8 1.1%

CEPP 76.8 76.8 2.1%

LAESA 111.0 111.0 3.0%

LOS ORIGENES 59.2 59.2 1.6%

PUEBLO VIEJO 215.0 100.1 315.1 8.4%

SAN FELIPE 185.0 185.0 4.9%

INDEPENDENT PRIVATE PRODUCERS [IPP'S]

CESPM 300.0 300.0 8.0%

RIO SAN JUAN 1.9 1.9 0.1%

TOTAL [MW] 606.1 370.5 1,342.0 668.1 59.2 615.7 79.5 3,741.08 100.0%


Installed Capacity by Generation Company[At December 2015]

THERMOELECTRIC UNITS

COMPANIES 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 33.00

PUERTO PLATA I FUEL OIL 6 STEAM TURBINE 27.60

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 46.00

QUILVIO CABRERA WIND WIND TURBINE 8.25

QUISQUEYA 2 FUEL OIL 6 COMBINED CYCLE 215.00

SubTotal 842.55

GPLV

PALAMARA FUEL OIL 6 DIESEL ENGINE 107.00

LA VEGA FUEL OIL 6 DIESEL ENGINE 87.50

SubTotal 194.50

SAN FELIPE

SAN FELIPE FUEL OIL 6 COMBINED CYCLE 185.00

SubTotal 185.00

CDEEE

CESPM I FUEL OIL 2 COMBINED CYCLE 100.00

CESPM II FUEL OIL 2 COMBINED CYCLE 100.00

CESPM III FUEL OIL 2 COMBINED CYCLE 100.00

RIO SAN JUAN FUEL OIL 2 DIESEL ENGINE 1.90

SubTotal 301.90

SEABOARD

ESTRELLA DEL MAR 2 FUEL OIL. 6 / NATURAL GAS COMBINED CYCLE 108.00

SubTotal 108.00

CEPP

CEPP I FUEL OIL 6 DIESEL ENGINE 18.70

CEPP II FUEL OIL 6 DIESEL ENGINE 58.10

SubTotal 76.80

PVDC

MONTE RIO FUEL OIL 6 DIESEL ENGINE 100.10

QUISQUEYA 1 FUEL OIL 6 COMBINED CYCLE 215.00

SubTotal 315.10

METALDOM

METALDOM FUEL OIL 6 DIESEL ENGINE 42.00

SubTotal 42.00

LAESA

PIMENTEL I FUEL OIL 6 DIESEL ENGINE 31.60

PIMENTEL II FUEL OIL 6 DIESEL ENGINE 28.00

PIMENTEL III FUEL OIL 6 DIESEL ENGINE 51.40

SubTotal 111.00

MONTERIO POWER CORPORATION

BERSAL FUEL OIL 6 DIESEL ENGINE 25.20

INCA KM22 FUEL OIL 6 DIESEL ENGINE 14.60

SubTotal 39.80

LOS ORIGENES

LOS ORIGENES FUEL OIL. 6 / NATURAL GAS NATURAL GAS ENGINE 59.20

SubTotal 59.20

Total Thermoelectric 3,125.4

THERMOELECTRIC UNITS (CONT.)



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 30.00

AGUACATE II WATER HYDRO TURBINE 30.00

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 40.83

PALOMINO II WATER HYDRO TURBINE 40.80

PINALITO I WATER HYDRO TURBINE 25.00

PINALITO II WATER HYDRO TURBINE 25.00

SubTotal Reservoir 526.7

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

HYDROELECTRIC UNITS


HYDROELECTRIC UNITS (CONT.)


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

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 615.73

GRAND TOTAL 3,741.08


The Empresa de Transmisión de Eléctrica Dominicana is a state-owned company with the primary objective of building, operating and sustainably managing the grids and substations of the electric interconnected system of the Dominican 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 functional 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 System 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.

These distribution companies, three state-owned and one private, manage the electricity distribution of the national interconnected grid:

Edesur Dominicana, S. A.Edenorte Dominicana, S. A.Empresa Distribuidora de Electricidad del Este, S. A.Compañía de Luz y Fuerza de Las Terrenas, S.A.

These companies supplies their energy from the National Interconnected Electric 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 DISCOS 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 following table indicates the monthly energy balance during 2015. This includes 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 2015, the total injection of electrical energy in the system was 14,177.4 GWh. The companies who supplied the most were: EGEHAINA 19.7%, AES ANDRES 14.6%, ITABO S.A. 12.53%, DPP 10.4%, EGEHID 6.6% y SEABOARD 8.9%. AES Dominicana units as a group contributed 37.5% of the energy in the Electricity Wholesale Market, reaching the highest market share in the generation sector.

Energy Supply Participation by Company[14,177.4 GWh]

ENERGY BALANCE

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2015

AES ANDRES 105.8 0.8 188.5 196.2 191.6 191.5 193.7 196.3 191.0 197.5 192.3 220.4 2,065.6

ITABO S.A. 168.0 135.7 123.5 117.8 137.1 140.2 161.5 157.5 162.2 161.3 147.0 164.1 1,776.0

DPP 109.4 123.5 137.4 125.8 119.3 115.9 120.9 126.8 122.6 113.1 127.8 126.9 1,469.3

AES Dominicana 383.2 260.0 449.4 439.8 448.0 447.6 476.1 480.6 475.8 472.0 467.0 511.4 5,310.9

EGEHID 74.7 80.6 89.9 81.9 68.8 76.7 64.2 56.1 79.9 80.1 89.9 91.6 934.4

CDEEE-IPP's 50.6 116.7 20.9 28.0 81.0 108.9 103.8 119.4 123.6 140.2 72.9 47.4 1,013.3

EGE HAINA 246.6 198.7 240.0 241.0 260.4 255.5 256.9 238.4 216.3 233.6 204.5 198.4 2,790.4

GPLV 108.9 94.0 86.0 81.5 80.8 78.2 89.9 101.1 87.9 89.4 57.1 56.9 1,011.7

SEABOARD 60.5 66.7 69.8 74.3 75.6 68.1 76.6 74.4 61.2 72.0 67.6 75.4 842.2

CEPP 19.8 24.0 24.6 24.8 25.1 25.4 27.2 27.5 25.2 26.2 23.4 19.0 292.1

MONTE RIO 12.1 11.7 7.1 9.1 7.7 5.8 9.1 8.4 6.4 9.1 2.3 3.0 91.8

PVDC 46.5 54.5 61.6 62.2 67.9 59.8 64.5 64.6 65.2 66.6 63.8 57.2 734.5

METALDOM 18.2 13.7 15.9 16.2 18.5 16.8 21.8 19.5 19.4 26.7 22.8 27.6 237.2

LAESA 52.8 46.1 50.7 46.5 50.1 55.5 56.5 54.1 49.4 52.2 45.9 52.1 611.8

LOS ORÍGENES 14.4 29.2 17.9 31.3 17.3 16.7 29.9 32.0 32.1 18.8 31.7 35.9 307.1

GENERATION 1,088.3 996.0 1,133.9 1,136.7 1,201.2 1,214.9 1,276.4 1,276.3 1,242.3 1,286.9 1,148.9 1,175.7 14,177.4

EDESUR 347.1 320.9 364.5 360.3 381.5 392.6 411.6 411.0 402.5 418.4 368.2 378.0 4,556.5

EDENORTE 297.5 269.0 305.4 319.5 333.8 329.2 349.8 352.7 340.4 349.0 314.2 319.3 3,879.7

EDEESTE 303.1 271.3 307.0 308.3 326.2 330.5 351.4 346.4 337.5 349.0 309.3 326.8 3,867.0

LFLT - - - - - - - 2.7 2.9 3.0 2.7 3.1 14.3

UNR's 117.8 115.7 133.0 126.1 133.5 136.1 137.1 138.9 135.9 142.6 134.8 124.8 1,576.3

RETIROS INTERNOS 4.3 5.3 3.1 2.3 2.9 2.1 2.3 2.4 2.2 2.1 2.4 3.3 34.8

DEMAND 1,069.7 982.2 1,113.0 1,116.5 1,177.8 1,190.6 1,252.3 1,254.1 1,221.4 1,264.1 1,131.5 1,155.3 13,928.6

LOSSES 18.5 13.8 21.0 20.1 23.4 24.3 24.1 22.1 20.9 22.8 17.4 20.4 248.8

LOSSES % 1.7% 1.4% 1.9% 1.8% 1.9% 2.0% 1.9% 1.7% 1.7% 1.8% 1.5% 1.74% 1.75%

In 2015, the total injection of electrical energy in the system was 14,177.4 GWh.


The generation companies that gathered the largest participation in the firm capacity market were: EGEHID 26.7%, EGEHINA 16.9%, AES Andres 11.1%, ITABO, S.A. 9.6%, PALAMARA 8.1%, LAESA 5.4%, SEABOARD 5.4% y DPP 4.4%. The remaining generation companies that represented less than 4.4% are grouped on the same column. AES Dominicana as a group had a participation of 25.1% in the firm capacity market.

Preliminary Firm Capacity[MW]

CAPACITY SYSTEM MAXIMUM DEMANDThe 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 2015’s monthly power production and power consumptions during system peak hours. On 2015 de maximum demand occurred on September 21 at 21:00, registering a value of 2,079 MW. On this giving date, the net power withdrawn was 1,967 MW from where the 90.3% of the withdrawn where registered to the distribution companies, 9.6% to Non-Regulated Users and 0.1% generators Auxiliary withdrawn.

Monthly Maximum Demand[MW]

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

AES ANDRES 234.1 230.5 227.5 221.0 221.3 221.0 217.5 217.9 227.4 222.8 224.8 232.9 224.9 11.1%

ITABO S.A. 204.4 202.8 200.9 195.8 194.7 195.8 193.8 188.4 190.2 186.9 186.8 187.13 193.97 9.6%

DPP 81.1 80.6 82.2 82.7 84.7 87.4 88.9 89.3 93.0 93.5 95.1 98.17 88.06 4.4%

AES DOMINICANA 519.5 514.0 510.7 499.5 500.7 504.1 500.2 495.7 510.6 503.3 506.7 518.18 506.9 25.1%

EGEHID 504.8 525.8 531.4 553.3 554.1 551.6 539.6 550.9 532.4 549.9 548.9 535.1 539.8 26.7%

CDEEE-IPPs* 14.4 1.2 1.2 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 1.44 0.1%

HAINA 346.7 345.2 344.6 343.5 342.4 341.6 340.1 338.7 339.7 338.0 337.9 338.39 341.40 16.9%

GPLV 170.4 170.3 170.6 166.1 166.2 165.9 164.2 160.7 163.0 159.4 158.7 159.84 164.62 8.1%

SEABOARD 108.3 108.3 108.3 108.3 108.3 108.3 108.3 108.3 108.3 108.3 108.3 108.27 108.27 5.4%

CEPP 58.7 58.2 57.6 56.1 56.0 56.1 55.4 54.4 55.2 53.9 53.7 54.25 55.80 2.8%

MONTERIO 37.6 38.0 38.0 37.8 37.7 37.5 37.4 37.1 37.2 36.3 35.9 36.03 37.20 1.8%

METALDOM 35.9 35.3 34.7 33.7 33.4 33.5 33.0 32.2 32.7 31.9 32.0 32.21 33.37 1.6%

PVDC 90.4 90.0 89.6 87.1 86.7 86.8 85.5 83.2 83.8 81.8 81.1 81.05 85.58 4.2%

LAESA 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.44 108.43 5.4%

LOS ORIGENES POWER PLANT 24.74 24.74 24.75 24.75 24.75 24.75 46.65 57.05 57.1 57.1 57.1 57.05 40.03 2.0%

Total 2,019.8 2,019.5 2,019.8 2,018.9 2,018.7 2,018.5 2,018.6 2,026.7 2,028.4 2,028.1 2,028.8 2,028.8 2,022.9 100.0%

* Only includes CESPM

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

Day / Hour D14 H20 D19 H20 D25 H21 D27 H21 D06 H22 D25 H22 D08 H22 D12 H22 D21 H21 D05 H22 D11 H21 D09 H22

GENERATION

Gross Generation 1,882 1,891 1,970 2,000 1,976 2,008 2,026 2,076 2,079 2,053 1,957 1,994

Net Generation sub-transmission valtage 1,820 1,834 1,910 1,948 1,914 1,944 1,970 2,013 2,015 1,983 1,894 1,930

Net Generarion transmission valtage 1,804 1,818 1,896 1,933 1,901 1,931 1,957 2,000 2,002 1,973 1,884 1,919

DEMAND

Empresa Distribuidora de Electricidad del Este S.A.

526 514 526 559 528 539 550 566 593 562 497 550

EdeNorte Dominicana S. A. 522 518 574 576 573 570 579 574 581 579 576 550

EdeSur Dominicana S.A. 540 576 572 577 570 598 600 626 598 594 580 580

LFLT - - - - - - - 5 5 5 5 5

Non-Regulated Users [UNR] 182 182 176 193 189 188 188 188 188 191 185 193

Other 10 12 4 3 4 3 3 2 3 2 3 5

TOTAL DEMAND 1,780 1,801 1,852 1,909 1,865 1,897 1,920 1,961 1,967 1,934 1,846 1,883

Losses [MW] 24 17 43 25 37 33 37 39 35 40 38 36

Losses [%] 1.36% 0.93% 2.28% 1.27% 1.94% 1.73% 1.89% 1.95% 1.76% 2.01% 2.00% 1.89%

AES Dominicana as a group had a participation of 25.1% in the firm capacity market.


In 2015, 35.5% of the supplied energy was produced with Fuel Oil 6, holding the most participation in the fuel market; natural gas came in second with 33.0%, followed by coal coming in third place with 14.8%.

Energy Supply by Fuel Type[14,177.4 GWh]

ENERGY SUPPLY BY FUEL TYPE

INTERNATIONAL FUEL PRICES

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 referenced by API2-C7 with a gross heat value of 6,000 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 2015, 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[US$/MMBtu]

The fossil fuels used for electrical generation, Fuel Oil 6 and Fuel Oil 2 maintained the highest prices, those experiencing a reduction in the last quarter of 2015.

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

FUEL OIL 6 35.5%

COAL 14.8%

FUEL OIL 2 8.0%

NATURAL GAS 33.0%

WATER 6.6%

WIND 2.0% 14.8%

8.0%

33.0%

35.5%

Power Generation International Fuel Prices[US$/MMBtu]

FUEL OIL 2

FUEL OIL 6

NATURAL GAS Nymex

COAL


18

16

14

12

10

8

6

4

2

0

US$

/ MM

Btu


MINERAL COAL 2.42 2.62 2.58 2.52 2.47 2.34 2.44 2.35 2.27 2.23 2.28 2.03

NATURAL GAS Nymex 3.62 2.96 2.75 2.75 2.59 2.86 2.76 2.82 2.76 2.65 2.41 2.29

FUEL OIL 6 5.76 7.27 6.86 7.27 7.84 7.76 6.64 5.27 5.16 5.19 4.74 3.45

FUEL OIL 2 8.52 9.68 9.05 9.48 10.19 9.53 8.52 7.63 7.68 7.66 7.12 5.66

ENE FEB MAR ABR MAY JUN JUL AGO SEP OCT NOV DIC

MINERAL COAL US$/MT 57.59 62.42 61.51 60.00 58.70 55.80 58.20 55.90 54.06 53.17 54.38 48.30

NATURAL GAS US$/MMBtu [Nymex] 3.62 2.96 2.75 2.75 2.59 2.86 2.76 2.82 2.76 2.65 2.41 2.29

FUEL OIL 6 US$/BBLS 38.49 48.58 45.86 48.55 52.36 51.86 44.39 35.18 34.49 34.64 31.66 23.04

FUEL OIL 2 US$/GAL 1.54 1.75 1.64 1.72 1.84 1.72 1.54 1.38 1.39 1.39 1.29 1.02

Sources: Platts, Mc Closkey

Prices using their original rates:

In 2015, natural gas and coal maintained the most competitive prices of those used for the generation of thermal energy.


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

The next graph presents 2015’s maximum and average monthly spot price.

Energy Spot Price [US$/MWh]

The following table shows 2015’s monthly average energy spot prices, also the highest spot prices for the same period of time.

ENERGY SPOT PRICE CAPACITY SPOT PRICE AND CONNECTION RIGHT

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 Regulation 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.

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 American 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 106 96 101 100 108 113 113 100 85 87 74 65 96

CMg MAX 127 107 127 121 127 134 134 119 101 99 99 94 116


12

8

4

0

US$

/ kw

-mon

th

Connection Right

Capacity Spot

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

Capacity Spot 8.47 8.45 8.56 8.59 8.59 8.64 8.65 8.66 8.65 8.63 8.63 8.61 8.59

Connection Right 4.51 4.49 4.38 4.20 4.14 4.14 4.04 4.13 4.27 4.22 4.38 4.56 4.29


120

90

60

30

0

US$

/ MW

h


FREQUENCY REGULATION SERVICEThe following graph demonstrates the margins contributed by each company that participated in the frequency regulation market, as well as the established 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[517.58 GWh]

AES Dominicana, with the participation of AES Andres and DPP, was the company that contributed the most in the primary regulation of frequency, with as much as 18.1% and 25.0%, bringing a total of 43.2% of the reserve margins in 2015, maintaining the quality and reliability of the market.

Secondary Frequency Regulation Service[458.49 GWh]

In the secondary regulation of frequency, AES Andres and DPP contributed approximately 11.0% and 28.4%, bringing a total of 39.5% of the reserve margins during 2015, by side EGEHID 2.1%, LAESA 41.5% and HAINA 12.3%.


70

60

50

40

30

20

10

0

PDVC

MONTERIO

METALDOM

LAESA

CEPP

SEABOARD

GPLV

HAINA

FALCON

SAN FELIPE

HIDRO

ITABO

DPP

AES ANDRES

3% Demand

5% Demand

70

60

50

40

30

20

10

0


LAESA

CEPP

SEABOARD

GPLV

HAINA

FALCON

SAN FELIPE

HIDRO

ITABO

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 as much as 18.1% and 25.0%, bringing a total of 43.2% of the reserve margins in 2015, maintaining the quality and reliability of the market.

GWh

GWh


The Superintendencia de Electricidad is the agency responsible for assessing whether a company qualifies as a Non-Regulated User. As of 2015, this institution 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 2015.

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

NON-REGULATED USERS MARKET

The table above shows that the NRU average monthly withdrawal in the wholesale electricity market was 129.7 GWh, which represented 11.32% of the SENI average monthly withdrawal in 2015.

In addition, during 2015 the NRU total withdrawal was 1,500 GWh of energy, from which AES Dominicana provided 612 GWh, which represented a monthly average of 51.03 GWh and 40.8% market share for all of 2015.

Evolution of Non-Regulated Market Consumption

De esta gráfica se destaca el posicionamiento de las empresas AES Andres y 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.

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

AES ANDRES 45.90 46.29 52.96 50.54 53.06 51.96 55.49 52.81 52.33 54.04 50.35 46.66 612 40.8%

EDEESTE 40.75 40.76 45.77 42.52 46.82 50.34 48.31 50.19 49.01 50.52 48.38 44.04 557 37.2%

EDENORTE 6.73 6.39 7.08 7.13 7.22 7.21 7.72 7.26 7.28 7.47 6.90 5.81 84 5.6%

EDESUR 9.63 9.25 10.11 9.82 10.06 9.73 10.42 9.68 9.99 10.24 9.50 9.93 118 7.9%

HAINA 9.71 7.43 11.06 10.51 10.13 10.87 8.86 10.03 8.35 10.97 10.69 10.91 120 8.0%

SEABOARD 0.57 0.56 0.63 0.61 0.62 0.61 0.60 0.60 0.67 0.82 0.86 0.98 8 0.5%

MONTE RIO 0.28 3.65 5.37 5.02 5.54 5.41 5.72 5.63 5.38 5.61 5.41 3.34 56 3.8%

Total Demand 113.57 114.34 132.99 126.15 133.46 136.12 137.11 136.19 133.02 139.66 132.10 21.68 1,500 100.0%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

MONTERIO

HAINA

SEABOARD

EDESUR

EDENORTE

EDEESTE

AES ANDRES



Energy Contracts, also known as PPAs (Power Purchase Agreements), are bilateral 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 2015.

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 2015 with AES Andres (17.16%), DPP (13.0%) and ITABO S.A. (15.9%) supplying a total of 46.4% of all contracts registered. The market share of HAINA (23.2%), CDEEE (5.7%) and EGEHID (7.5%), can also be noted.

CONTRACT MARKET

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

GENERATORS

AES ANDRES 141.25 117.50 155.28 154.55 167.57 168.07 177.22 170.48 168.57 185.74 156.06 60.59 1,922.9 17.6%

CDEEE - - - - - 101.60 96.59 111.30 115.92 131.28 69.01 0.06 625.8 5.7%

CEPP - - - - - - - - - - - - - 0.0%

DPP 111.16 99.50 112.59 113.07 119.62 121.21 128.87 127.02 123.77 127.98 113.41 119.84 1,418.0 13.0%

EGEHID 70.99 77.74 87.76 80.84 68.82 76.73 63.88 56.11 78.20 77.67 85.79 - 824.5 7.5%

GPLV 79.90 73.23 83.10 84.17 88.56 89.40 94.29 94.46 91.99 95.03 84.52 86.41 1,045.1 9.6%

HAINA 196.16 177.22 203.59 204.89 215.00 218.01 227.79 228.33 221.02 230.77 205.92 212.39 2,541.1 23.2%

ITABO 133.18 121.51 137.81 139.28 146.72 148.27 156.61 156.38 152.33 157.42 139.88 143.95 1,733.3 15.9%

MONTE RIO 0.28 3.65 5.37 5.02 5.54 5.41 5.72 5.63 5.38 5.61 5.41 3.34 56.4 0.5%

SEABOARD 0.57 0.56 0.63 0.61 0.62 0.61 0.60 0.60 0.67 0.82 0.86 0.98 8.2 0.1%

Total 733.5 670.9 786.1 782.4 812.4 929.3 951.6 950.3 957.9 1,012.3 860.9 727.6 10,175.2 93.1%

DISTRIBUTORS

EDEESTE 40.7 40.8 45.8 42.5 46.8 50.3 48.3 50.2 49.0 50.5 48.4 44.0 557.4 5.1%

EDENORTE 6.7 6.4 7.1 7.1 7.2 7.2 7.7 7.3 7.3 7.5 6.9 5.8 84.2 0.8%

EDESUR 9.6 9.3 10.1 9.8 10.1 9.7 10.4 9.7 10.0 10.2 9.5 9.9 118.4 1.1%

Total 57.1 56.4 63.0 59.5 64.1 67.3 66.4 67.1 66.3 68.2 64.8 59.8 760.0 6.9%

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

ATTACHMENTS

62 / STATISTICAL REPORT 2015 ATTACHMENTS / 63

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.

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.

GLOSSARY


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.

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.

2014 Firm Capacity True-up[MW]

Consumer Price Index (CPI)[2005-2015]

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

AES ANDRES 259.7 258.7 202.8 205.9 206.2 206.6 212.0 212.3 229.1 227.1 205.2 195.63 218.4 11.5%

ITABO S.A. 215.9 215.5 172.9 175.5 175.8 176.1 180.7 181.0 195.3 193.6 175.0 166.75 185.3 9.7%

DPP 90.3 89.9 69.4 70.4 70.5 70.7 72.5 72.6 78.2 77.5 70.1 66.85 74.9 3.9%

AES DOMINICANA 565.8 564.0 445.0 451.8 452.5 453.4 465.2 465.9 502.7 498.2 450.2 429.23 478.7 25.1%

EGEHID 469.8 472.3 469.6 455.9 454.4 452.6 428.6 427.1 426.1 438.6 529.9 552.0 464.7 24.4%

CDEEE-IPPs* 30.7 30.6 22.3 22.6 22.7 22.7 23.3 23.4 25.0 24.8 22.4 21.5 24.3 1.3%

HAINA 131.7 131.7 336.3 338.0 338.2 338.5 341.6 341.7 346.4 345.7 337.3 331.6 304.9 16.0%

GPLV 181.3 181.0 146.7 148.9 149.2 149.5 153.3 153.6 165.5 164.1 148.3 141.3 156.9 8.2%

SEABOARD 14.2 14.2 12.4 12.6 12.6 12.6 13.0 13.0 14.0 13.7 14.1 35.8 15.2 0.8%

CEPP 63.2 63.1 50.3 51.1 51.1 51.2 52.6 52.7 56.8 56.3 50.8 48.3 54.0 2.8%

MONTERIO 96.4 96.4 76.5 77.7 77.8 78.0 80.0 80.1 86.5 85.8 77.5 73.9 82.2 4.3%

METALDOM 39.8 39.6 30.7 31.2 31.2 31.3 32.1 32.2 34.8 34.4 31.1 29.7 33.2 1.7%

PVDC 180.2 180.2 180.1 180.1 180.1 180.1 180.2 180.2 112.0 108.3 108.1 106.5 156.3 8.2%

LAESA 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 5.7%

LOS ORIGENES 24.73 24.73 24.73 24.73 24.73 24.73 24.73 24.73 24.73 24.73 24.74 24.74 24.7 1.3%

Total 1,906.2 1,906.2 1,903.1 1,903.1 1,903.1 1,903.0 1,903.0 1,902.9 1,902.9 1,903.0 1,903.0 1,903.0 1,903.5 100.0%

* Only includes SAN FELIPE & CESPM

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

2005 190.700 191.800 193.300 194.600 194.400 194.500 195.400 196.400 198.800 199.200 197.600 196.800 195.292

2006 198.300 198.700 199.800 201.500 202.500 202.900 203.500 203.900 202.900 201.800 201.500 201.800 201.592

2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 207.342

2008 211.080 211.693 213.528 214.823 216.632 218.815 219.964 219.086 218.783 216.573 212.425 210.228 215.303

2009 211.143 212.193 212.709 213.240 213.856 215.693 215.351 215.834 215.969 216.177 216.330 215.949 214.537

2010 216.687 216.741 217.631 218.009 218.178 217.965 218.011 218.312 218.439 218.711 218.803 219.179 218.056

2011 220.223 221.309 223.467 224.906 225.964 225.722 225.922 226.545 226.889 226.421 226.230 225.672 224.939

2012 226.665 227.663 229.392 230.085 229.815 229.478 229.104 230.379 231.407 231.317 230.221 229.601 229.594

2013 230.280 232.166 232.773 232.531 232.945 233.504 233.596 233.877 234.149 233.546 233.069 233.049 232.957

2014 233.916 234.781 236.293 237.072 237.900 238.343 238.250 237.852 238.031 237.433 236.151 234.812 236.736

2015 233.707 234.722 236.119 236.599 237.805 238.638 238.654 238.316 237.945 237.838 237.336 236.525 237.017

* Bureau of Labor Statistic U.S.


Average Dollar USA Exchange Rate[2005-2015]

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

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

2015 PURCHASE 44.46 44.75 44.66 44.70 44.76 44.81 44.94 45.02 45.10 45.23 45.33 45.44 44.93

SALE 44.61 44.88 44.75 44.80 44.87 44.91 45.06 45.14 45.23 45.33 45.43 45.53 45.05

* Source: Banco Central de la República Dominicana.

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 Pie 3 28320.589 0.028317 1 1727.556 6.2288 7.4805 0.178107 28.321

Cubic Inch Pulgada 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 Litro (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

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

Fuel Oil 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


Kg / m3 Lb / Feet 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

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