Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

August 22, 2016

JOSE VALERIANO B. ZUÑO III

OIC-HEAD, Disclosures Department The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City

Dear Mr. Zuño:

This is to inform the Exchange that on August 17, 2016 the 77 MW Malitbog Unit 2 Power Plant experienced a flashover inside the high voltage terminal box, which caused Malitbog Unit 2 to trip at around 5pm on that day. At the time of the incident Malitbog Unit 2 was offline and was in the process of testing and commissioning of its Automatic Voltage Regulator (AVR) under the supervision of ABB, the manufacturer of the AVR, as part of a 30 day scheduled maintenance outage. The incident did not have any impact on the grid as Malitbog Unit 2 was not synchronized to the grid at that time, and no injuries were sustained by any of the personnel involved.

EDC, together with ABB and other consultants and contractors are currently conducting an assessment of the extent of the repairs needed and a full review to determine all contributing factors that led to the plant incident to ensure appropriate measures are taken to enable the safe and reliable operation of the unit.

EDC does have machinery breakdown and business interruption insurance in place which is intended to respond in the case of such incidents and its insurers and their advisers have been informed about the incident. The Malitbog power plant is part of the Unified Leyte geothermal power plants, which are wholly owned by Energy Development Corporation (EDC).

EDC will apprise the Exchange of material developments on this matter once the initial investigations have been completed.

cc: VINA VANESSA S. SALONGA

Head - Issuer Compliance and Disclosure Department (ICDD) Philippine Dealing & Exchange Corp.

Energy Development Corporation published this content on 22 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2016 01:44:05 UTC.

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