P.O BOX 429, NUKU ALOFA, Tel: (676) Fax: (676)

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P.O BOX 429, NUKU ALOFA, Tel: (676) 21-400 Fax: (676) 23-047 Email: afernando@tongapower.to 27 February, 2015 Lord Dalgety Electricity Commission Tu atakilangi Nuku alofa Dear Lord Dalgety Re: Monthly Compliance Report January, 2015 In accordance with the reporting requirements of the Electricity Concession Contract and in response to your request for additional information as specified in the suggested MOU dated May, 2012, TPL submits the following reports for the month of January, 2014. 1. System Loss Report 2. Fuel Efficiency Report 3. Reliability Measures Report (Tongatapu and Outer Islands) 4. Monthly Outage Events Report The above report items are described in detail below. 1. System Loss Report The following graphs illustrate the 12 months Moving Average (smoothed) Systems Losses for all four islands since July 2011. The 12 months moving average losses are used because of the variability of monthly Real Time Systems Losses due to the impact of the number of days and fall of the weekends in respect to meter reading cycle. In addition, system loss report is always one month late as last month consumption data (i.e. meter readings) will only be read this month and available to report next month. Hence January EC Report contains only December system loss data. 1

For the month of December, 2014, all island moving average system losses have decreased slightly from 12.55% (December, 2014) to 12.07% (January, 2014) but still achieve the regulatory target of 13%. The individual island group s system losses are shown below. The graph above shows that Tongatapu systems losses have decreased from 11.53% (November) to 12.06% (December). 2

Vava u losses however, have reduced from 12.78% to 12.37% (see the graph below). Ha apai system losses have always been below target until January, 2014. Since January, system losses have increased possibly due to Cyclone Ian effect. 3

Eua systems losses have been steady around 13% during past several months. 2. Fuel Efficiency Report It is important to note that fuel efficiencies calculated here include diesel deneration only (i.e. renewable generation has been excluded) as stipulated by the Electricity Concession Contract. Tongatapu fuel efficiency ratios have always been unachieved due to ageing generators and introudction of renewable generation plants that reduce diesel generators load factors. 4

Vava u fuel efficiency ratios have been well above the taregt due to the two new 600KW generators commissioned in May, 2010. Mostly, fuel efficiency ratios have been under achieved in Haapai but been steady in the last few months. 5

Mostly, fuel efficiency ratios have been under achieved in Eua. Overall, all island fuel efficiency ratios have been below the weighted average target of 4.17 KWh/L. 6

3. Reliability Measures (Tongatapu) Reliability Measures SAIDI Monthly Performance (Minutes) CAIDI Monthly Performance (Minutes) SAIFI Monthly Performance Month 2011/12 2012/13 2013/14 2014/15 Month 2011/12 2012/13 2013/14 2014/15 Month 2011/12 2012/13 2013/14 2014/15 Jul 4.74 21.21 88.34 171.37 Jul 143.09 60.157 173.956 106.45 Jul 0.03 0.327 0.443 1.61 Aug 4.51 37.88 46.52 161.75 Aug 161.45 98.368 44.067 118.076 Aug 0.03 0.337 1.011 1.37 Sep 59.19 2.93 92.02 167.93 Sep 649.6 38.891 51.963 95.58 Sep 0.09 0.035 1.736 1.76 Oct 253.89 32.02 318.4 83.2 Oct 243.63 18.195 102.032 74.58 Oct 1.04 1.723 3.121 1.12 Nov 25.49 138.22 38.51 123.66 Nov 69.34 53.329 91.757 190.511 Nov 0.37 2.551 0.42 0.649 Dec 115.19 72.61 13.15 28.04 Dec 358.97 32.499 21.693 43.97 Dec 0.32 2.205 0.605 0.638 Jan 622.62 153.97 55.91 190.24 Jan 280.26 83.365 116.161 36.24 Jan 2.22 1.7 0.481 5.25 Feb 3010.76 189.06 47.3 Feb 412.1 206.295 124.67 Feb 7.31 0.884 0.379 Mar 23.32 146.48 138.91 Mar 55.81 58.538 58.889 Mar 0.42 2.44 2.272 Apr 336.9 236.17 94.02 Apr 219.97 119.239 63.835 Apr 1.53 1.949 1.473 May 294.55 100.64 37.85 May 98.59 23.137 97.391 May 2.99 0.521 0.389 Jun 14.72 7.26 87.19 Jun 66.45 126.29 145.14 Jun 0.22 0.027 0.601 Total 4765.88 1138.45 1058.12 926.19 Total 2759.26 918.303 1091.552 665.407 Total 16.57 14.699 12.931 12.397 SAIDI minutes (measuring average total duration of interruption per connected customer) for the month of January, 2015 have increased significantly from 28.04 (December, 2014) to 190.24 (January, 2015) minutes (see the table above). Some of the major HV faults contributed to the SAIDI minutes for the month of January are described below. 7

Report Date No of Customers Off Fault Description Repair Comment 23/01/2015 15,432 Power off Feeder 1 and 2 was switch on at 09:30; feeder 3 was switched on at 09:35 30/01/2015 15,432 Power off Problem from the Power Station 31/01/2015 15,432 Power blackout 03/01/2015 4,106 On Feeder Vaini Power on for Feeder Vaini at 12:20 28/01/2015 4,106 Shut Down Feeder #1 16/01/2015 4,106 Shut Down 30/01/2015 4,106 Planned Shut down Matafonua,Fatai, Lakepa, Holoipepe. Replace HV pole at Pahu, finished at 02:30 then reconnect power on but Vaini feeer fell and part of Hihifo was still off 03/01/2015 4,106 On feeder Vaini Stand by at Popua Power on Feeder Vaini from Fua'amotu to Niutoua 12/01/2015 4,106 Power off to Vaini feeder 01:02 Feeder Vaini Feed back on except Malapo to Niutoua and also Halaliku 13/01/2015 4,106 Power off Switch on feeder 3 28/01/2015 1,489 Vaini's Feeder Drop Malapo ki niutoua 3:23 - time Vaini feeder was on 21/01/2015 982 A broken coconut tree was broke down HV line 03/01/2015 654 Low volts Materials: link 6A x 1 12/01/2015 508 Power off 13/01/2015 508 Power off Power shut down from Nautoka to Niutoua Kanokupolu, 'Utulau, Fahefa, Vaotu'u (places reported off) Two inline fuse blown 2 x 40A HV link replace. Inline fuse blown at Tokomololo; 15:58 - switch power on from Tokomololo to Ha'atafu Te'ekiu; 16:16 - switch power on from Maui to Nukunuku 17/01/2015 321 Power off Power off due to HRC fuse link was blown. Material use 25A x 1 HRC fuse link. Test After 238V 28/01/2015 231 Power off Materials: link 10A x 1 28/01/2015 230 Power off POWER OFF DUE TO 1 INLINE FUSE BLOWN SO THEY FIX IT THEN CONNECT POWER LINE WITH 1 x A 29/01/2015 200 Power off Materials: link 100A x 3 29/01/2015 200 Power off Materials: link 3A x 1 12/01/2015 200 Braker 01:10 Malapo to Fua'amotu feed back; 01:20 Malapo to Niutoua feed back 28/01/2015 200 High volts complaint Materials: IPC 16/95 x 2, gopher wire 1m; test before: R - 209V, B - 247V, Y - 261V; test after: R - 234V, B - 241V, Y - 240V [ loose neutral from main line ] 08/01/2015 150 Sparks Trimm tree branches; Line sparks due to tree branch too close and touching the HV line 02/01/2015 74 Trees on line Off 5:32; On 06:24 19/01/2015 74 Tree branch on HV line Remove coconut leaves from line 21/01/2015 40 Leaves in HV line Remove coconut leaves from HV line 22/01/2015 36 Tree leaves on line Repairs removed coconut tree leaves from HV line 22/01/2015 30 Tree leaves on line Remove coconut leaves from HV line 22/01/2015 30 Tree leaves on HV line Remove coconut Leaves from HV line 03/01/2015 25 Open inline fuse Open inline fuse from Pea 03/01/2015 23 Close inline fuse Close inline fuse from 'Atele 03/01/2015 21 Feeder Vaini drop again Feeder Vaini drop again at 12:38PmPower back on to normal 05:02Pm 13/01/2015 21 Power off 17/01/2015 21 Shut down 17/01/2015 20 Switch power line on Switch encloser at Malapo switch power on from Malapo to Niutoua and Haveluliku to Fatumu All of Fua'amotu's power was off. [ open DDO fuse for safety cross over container under H.V. lines from main road to Air port control tower ] Shut down power of Fua'amotu due to transfer container inside to the airport powers back on 16:20 28/01/2015 20 Power off Due to the shut down power was off from the recloser at Tokomololo, repair switch power on 8

Cumulative SAIDI YTD is showing below. The annual target is 5% less than the last year s value. CAIDI minutes (measuring average total duration of interruption per interrupted customer) for the month of December 2014 have however decreased from 43.97 minutes (December, 2014) to 36.24 minutes (January, 2015). Cumulative CAIDI YTD is showing below. The annual target is 5% less than the last year s value. 9

SAIFI (measuring average number of interruptions per customer) has increased significantly from 0.638 (December, 2014) to 5.25 (January, 2015). Cumulative SAIFI YTD is showing below. The annual target is 5% less than the last year s value. 4. Reliability Measures (Outer Islands) Since July 2014, TPL collects outage data to calculate the reliability measures for all three outer islands. The accumulated measures are shown below graphically. The above graph shows the accumulated SAIDI for all three islands since July, 2014. The SAIDI figures include both planned and unplanned outages. Haapai has the highest SAIDI minutes in December due to large planned outages during Cyclone Ian reconstruction project. Planned SAIDI figures were found very high compared with the unplanned SAIDI figures. 10

Accumulated CAIDI figures are high for Ha apai due to planned outages. Again, planned CAIDI figures were found very high for all three islands compared with the unplanned CAIDI figures. Cumulative SAIFI figures were found significantly high for Vavau compared with Eua and Ha apai, implying that Vavau has higher number of outages than the other two islands. 11

5. Monthly Outage Events Fault Events Comparison 2014 vs. 2015 YTD Total Planned/Unplanned Outage Events Jul-13 Jul-14 Aug-13 Aug-14 Sep-13 Sep-14 Oct-13 Oct-14 Nov-13 Nov-14 Dec-13 Dec-14 Jan-14 Jan-15 Feb-14 Feb-15 Mar-14 Mar-15 Apr-14 Apr-14 May-14 May-15 Jun-14 Jun-15 2013/14 2014/15 Generator problem 0 3 1 1 2 0 1 1 0 0 0 1 3 3 0 2 1 0 0 10 9 HV Lines 10 17 14 28 9 24 30 22 13 29 23 25 26 34 19 6 16 32 14 212 179 HV/LV Transformer 16 14 14 8 3 6 12 8 10 7 16 6 31 5 27 31 13 17 8 198 54 HV Pole 1 5 3 1 3 2 2 3 1 4 1 8 2 4 2 1 2 0 2 20 27 LV Lines 17 58 33 57 35 72 36 65 35 53 31 70 64 89 56 49 38 41 39 474 464 Service lines 341 200 167 219 202 227 155 183 189 166 197 230 261 153 169 336 169 228 209 2623 1378 Customer premises 350 246 298 192 274 246 279 193 232 225 405 258 280 277 295 327 295 181 191 3407 1637 Street Lights 21 27 23 31 30 58 51 41 34 20 38 9 20 11 21 44 36 12 21 351 197 Meter 6 2 8 2 3 6 1 2 6 8 4 5 5 4 7 14 4 3 6 67 29 Total 762 572 561 539 561 641 567 518 520 512 715 612 692 580 596 810 574 514 490 7362 3974 There were total of 580 planned outages & unplanned fault events for the month of January, 2015 affecting 81,792 customers (it is possible that the same customer would have been affected by outages more than once). As per the table above, the number of fault events has slightly decreased from 612 in December, 2014 to 580 events in January, 2015. Number of faults in all categories has decreased from the last month. Most of the customer services faults included fuses at the service line tap off point for a premise. Should you have any queries with the information provided, please do not hesitate to contact me. Yours Faithfully, Ajith Fernando Risk & Compliance Manager Tonga Power Limited 12