Transmission

*3 Contents

Page Number MISSION 4

VISION 5

HISTORICAL BACKGROUND 6

TRANSMISSION TODAY 8 Object Technical Characteristics of the Transmission System Map of the Hellenic Transmission System Installed Equipment International Interconnections Transmission System Development Transmission System Maintenance

RELATIONS WITH RAE, HTSO 20 Responsibilities Charges for the Use of the Transmission System Connection of new producers/consumers Interconnections Management

ORGANIZATIONAL STRUCTURE 23

ACTIVITIES OF TRANSMISSION DIVISION DEPARTMENTS 24

HUMAN RESOURCES 27

ENVIRONMENTAL CARE 28

STRATEGIC GOALS AND PERSPECTIVES 30

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *4

Mission

he Transmission Division (T/DI) is the owner of the National T Interconnected Transmission System through which the Hellenic Transmission System Operator (HTSO) transmits via high voltage power lines the electricity generated by power plants (owned by PPC or by independent power producers), as well as from the points of interconnection with neighboring countries, to the distribution network and to high-voltage customers. In accordance with article 12 of Law 2773/1999, the owner of the System is PPC S.A., while HTSO is responsible for its operation and the planning of maintenance and development, as well as for the third-party access to the System. The Transmission Division is responsible for the engineering, construction and commissioning of new Transmission projects, as well as for the physical operation and maintenance of the National Interconnected Transmission System, according to HTSO schedule and guidelines.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *5

Vision

▲ Ensures the equipment reliable operation, to the benefit of PPC S.A., of the users and producers connected to the System, as well of international interconnections, within the framework of the electricity market liberalization. ▲▲ Implements the development of the System with respect for the environment, while ensuring the maximum possible social acceptance.

Exploits and further develops the know-how in the field of electric power transmission systems and equipment, aiming at maintaining the leading position in the Hellenic market.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION |

*7 Historical Background

1953 Commencement of Transmission System development in Continental with initial installed capacity 212.5 MVA and 326 km of 150 kV High Voltage Transmission Lines.

1968 The Transmission System of Crete was put into operation. Furthermore, the first Submarine interconnections of 150 kV (Kalamos – Amarynthos) & 66 kV (Igoumenitsa – Corfu) came into operation.

1972 Installation of the first 150 kV SF6-technology circuit breakers.

1973 The 400 kV Transmission System was put into operation in the Continental Greece.

1975 The 66 kV Transmission System of Rhodes was first put into operation.

1977 The first closed-type 150 kV Gas Insulated Switchgear Substation was put into operation in the region of N. Elvetia, Thessaloniki.

1995 Inauguration of the new National Center for Energy control and monitoring and of the South Regional Control Center in Aghios Stefanos, , as well as of the North Regional Control Centre in the Ptolemais Region.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *8 9 HISTORICAL BACKGROUND *

Installation of the first XLPE 150 kV insulated cable in the Extra-High Voltage Substations of Aghios Stefanos and Thessaloniki.

1998 The first closed-type 400 kV Gas Insulated Switchgear Substation came into operation in Lavrion.

1999 The Ztacir conductor was first put into operation in the Transmission Line connecting the Extra-High Voltage Substation of Thessaloniki and Moudania Substation. Law 2773/1999 on the liberalization of the electricity market entered in force, enabling for the establishment of the Regulatory Authority of Energy (RAE) and the Hellenic Transmission System Operator (HTSO) and designating PPC as the owner of the Transmission System. The Energy Control Centers and all activities on System Development Studies were separated from the Transmission Division and were integrated into HTSO activities.

2001 The Transmission Networks of Crete and Rhodes were separated from the Transmission Division and come under the Distribution Division, according to Law 2773/99. The first 150 KV compact switchgear module was put into operation at the Komotini Substation.

2002 The first HVDC interconnection, which connects the Electricity Systems of Greece and Italy through submarine and overhead Transmission Lines, was put into operation.

2003 The first air-insulated 150/20 kV Substation with an integrated automated substation system was put into operation on the island of Lefkada.

2004 The first 150 kV capacitors with controlled switching were installed at the Extra-High Voltage Substations of Aghios Stefanos, Pallini, and Acharnai.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION |

*11 Transmission today Object fter the liberalization of the Greek electricity market, as A stipulated by Law 2773/99, PPC remains a vertically integrated company, whereas the Transmission Division remains the owner of the Transmission System. Furthermore, the Transmission Division undertakes the System physical operation, maintenance and development, according to HTSO planning, as well as the development of the autonomous Transmission Systems on the . At the same time, the Transmission Division is responsible for the installation and maintenance of an optical fiber network laid on the existing transmission lines, within the framework of the creation of a telecommunications infrastructure for TELLAS, a telecommunications company which was established as a joint venture of PPC and WIND.

Technical Characteristics of the Transmission System he backbone of the National Interconnected Transmission T System consists of three, double-circuit 400 kV lines, which transmit electricity from Northern Greece power plants, where about 65% to 70% of PPC electricity in Continental Greece is generated, to the main consumption centers in Central and Southern Greece, where about 65% to 70% of electricity is consumed. The National Interconnected Transmission System consists of 400 kV and 150 kV lines, as well as of 66 kV and 150 kV submarine cables, which interconnect the biggest Ionian Islands and the island of Salamina. Submarine cables of 150 kV have also been installed in the regions of Evia and the Peloponese, whereas submarine interconnections expand towards the Cyclades islands. In particular, the island of Andros was integrated into the Interconnected System in the summer of 2003. The following map represents the 400 kV Transmission Lines of the Interconnected Transmission System as of December 31, 2006.

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MAP OF THE HELLENIC TRANSMISSION SYSTEM Hellenic Transmission System 400kV, Year 2006 MEMORANDUM B’B’ 400KV Line of single circuit B’B’, single conductor of heavy type 2B’B’ 400KV Line of duble circuit 2B’B’, duble conductor of heavy type B’B’B’ 400KV Line of single circuit B’B’B’, triple conductor of heavy type Under Construction D9: New interconnector Fillipi - Babaeski The Cross-Sections of all the above conductors are 954 MCM per conductor

400 KV DC Transmission lines & cables Under Construction

SUBSTATION 400KV UNDER CONSTRUCTION THERMAL STATION HYDROELECTRIC STATION *13 14 * TRANSMISSION TODAY

Installed Equipment he installations of the Interconnected Transmission System T include Transmission Lines of 10,749 km, as shown in the table below.

TRANSMISSION LINES (*) OF THE INTERCONNECTED TRANSMISSION SYSTEM (km.)

400kV/DC 400kV/AC 150kV 66kV Total

Overhead 107 2,309 7,962 39 10,417

Submarine 160 123 15 298

Underground 529 34

Total 267 2,314 8,114 54 10,749

(*) as of December 31st 2006 The flowchart below represents the evolution of the Overhead Transmission Lines routing length, for voltages of 150 kV and 400 kV, during the period 1986-2006 (the routing length of 66 kV voltage lines remains the same, which is 39 km).

Evolution of the Routing Length of Overhead Transmission Lines (km.)

7.962

6.410

150 kV 400 kV

2.416

1.319

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | 15 TRANSMISSION TODAY *

On December 31st 2006, the Transmission System counted 538 transformers and autotransformers of total installed capacity amounting to 42,277 MVA. The Table below presents the features of the high voltage transformers installed in the Interconnected Transmission System.

POWER TRANSFORMERS (*) OF THE INTERCONNECTED TRANSMISSION SYSTEM

kV MVA Number

400 5,408 17 Step-up (1) 150 7,489 66 20 7 2 Step-down (2) 150 16,041 384 Step-down & Auxiliary Transformers (1) 150 815 18 Autotransformers 400/150 11,840 44 Transformers / Converters 400 597 3 66/20 25 1 Step-down (3) 66/15 50 2 20/15 5 1 Total 42,277 538 (*) on December 31st 2006 (1) (1) Under the responsibility of the Generation Division (2) Under the responsibility of the Transmission, Distribution and Mines Divisions. (3) Under the responsibility of the Distribution Division The following flowchart represents how the installation of Transmission Substations and Power Transformers evolved during the period 1986 – 2006.

Evolution of the Installation of Substations - Power Transformers to the Interconnected Transmission System (km.)

Power Transformers 536 Substations

309 250

137

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *16 17 TRANSMISSION TODAY *

International Interconnections he National Interconnected Transmission System is connected to T the Transmission Systems of Albania, Bulgaria, FYROM and Italy. ∆he interconnection with Bulgaria is ensured by a single 400 kV Line, whereas the interconnections with Albania and FYROM consist of 150 kV and two 400 kV Lines respectively. Their overall nominal capacity with the Northern countries amounts to approximately 4,000 MW. Nevertheless, for functional reasons and for the purposes of meeting the System’s safety requirements, it is limited to 600 MW (or to 700 MW when taking into consideration a 100 MW system reliability reserve). The interconnection with Italy consists of a HVDC submarine cable of 500 MW installed capacity. As from October 2004, the Hellenic Transmission System was reconnected to the European Interconnected System of UCTE, with which it operates in synchronous and parallel way. As regards the development of new international interconnections, the interconnecting Line of Filippoi - N. Santa and N. Santa – Babaeski, which is due for completion in the beginning of 2008 and which shall connect the Transmission Systems of Greece and Turkey, is under construction as provided for by the agreement signed between PPC S.A. and TEIAS. The above mentioned interconnection, in conjunction with the enhancement of interconnections of the neighboring countries on the north borders of Greece, shall significantly contribute to the System secure operation, as well as to the development of energy trading with these countries and those of the wider region of South Eastern Europe.

Transmission System Development – New Projects he Transmission New Projects Department (T/NPRD) is in T charge of the engineering and construction of Transmission Projects on the basis of a 5 year rolling programme drawn up by HTSO, as stipulated on a yearly basis in the "Transmission System Development Study" (TSDS), which is issued by HTSO and ratified by the Minister of Development.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *18 19 TRANSMISSION TODAY *

As far as the islands region is concerned, the construction of Transmission Projects is carried out in accordance with the "Islands Transmission System Development Study", which is drawn-up at regular intervals by the Transmission External Relations Department (T/ERD). Thereafter, the Islands Transmission System Development Study is ratified by the Network Assets Management Department (D/NAMD), which comes under the Distribution Division. As regards the construction of new projects, the main priorities are summarized as follows: ● Completion of the works for the interconnection of Greece and Turkey. ● Installation of 34 medium voltage compensation capacitor banks. ● Installation of 5 150 kV capacitor banks. ● Completion of the submarine connection Igoumenitsa - Corfu. ● Installation of a 400 kV network in the Peloponnese region through the construction of 400 kV Extra-High Voltage Substations in Patras, Megalopolis and Korinthos, in conjunction with the installation of 400 kV connecting Transmission Lines among these three new Extra-High Voltage Substations. ● Construction of a new Extra-High Voltage Substation and installation of 400 kV Transmission Lines in Aliveri. ● Construction of the new Extra-High Voltage Substations of Lagadas and Nea Santa. ● Construction of Transmission Line among the Extra-High Voltage Substations of Lagadas and Filippoi. ● Construction of various new Substations and 150 kV Transmission Lines (particularly on the islands of Crete, Rhodes and Kos). ● Implementation of the Cyclades Interconnection Project. ● Construction of a new Extra-High Voltage Substation in Rouf.

Transmission System Maintenance he maintenance of the Transmission System is the T responsibility of the Transmission System Department (T/SD), which carries out all maintenance works, according to the planning agreed with HTSO. In addition, T/SD has drawn up and implements a programme for the renewal and replacement of the System’s obsolete and non-reliable equipment, such as switchgear, protection equipment, capacitors etc.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *20

Relations with R∞∂ and HTSO Competencies he competencies assigned to RAE and HTSO are defined by T Law 2773/99 on the liberalization of the Electricity Market. The Regulatory Authority for Energy (RAE) is entrusted with the general monitoring of the country’s energy sector. It gives an expert opinion to the Minister of Development with regard to the basic operation rules of the liberalized electricity market and ensures their proper implementation. RAE is an administrative authority monitored by the Minister of Development which makes the most important decisions upon recommendation of RAE.

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The Hellenic Transmission System Operator (HTSO) is a société anonyme owned as to 51% by the Hellenic State and 49% by PPC SA. HTSO is responsible for operating on a daily basis the Electricity Generation – Transmission System, for dispatching the power units according to the bids and for proceeding to all financial settlements in accordance with the codes. In addition, HTSO is responsible for planning the development and maintenance of the Transmission System and for allocating the capacity of the International Interconnecting Lines to all interested parties, in accordance with the rules set by the Minister of Development upon recommendation of RAE. Finally, HTSO allows the access of all interested parties (producers/consumers) to the Transmission System in an objective way.

Charges for the Use of the Transmission System s the owner of the Transmission System, the Transmission A Division collects an annual fee as a compensation for its use. This fee, which covers the annual operation and maintenance expenses, the annual amortizations of Transmission-owned fixed assets, as well as the annual return on PPC capital invested in the Transmission system, is

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | 22 * RELATIONS WITH RAE AND HTSO

paid to PPC by HTSO, which collects it from the Users by allocating it to producers and providers at a percentage of 15% and 85% respectively. The country is divided into two geographical zones, on the basis of which the capacity charge used for determining the fees to be imposed on producers is estimated. The fee imposed on the producers of the south zone, which includes the entire region of Sterea Hellas with the exception of Fthiotida and Peloponnese, amounts to 2% of the annual System cost. The fee imposed on north zone producers, that is on producers throughout the remaining regions of the country as well as on those of the Ionian Islands, amounts to 13% of the annual System cost. As regards the fee imposed on providers, it is the same throughout the whole country. In particular, it amounts to 85% of the annual System cost. In order to define the fee to be imposed on providers, customers are divided into three categories. The first category pertains to customers who are connected to the System, the second category concerns network customers with remote reading meters, whereas the third category includes all other customers who are connected to the low voltage network. The capacity charge on the basis of which the fee is allocated among suppliers and producers is separately estimated for each customer category. In any case, the charge for the use of the Transmission System applies only to producers/suppliers who are connected to the Transmission System.

Connection of new producers/consumers n order to allow the connection of new producers/consumers I to the System, HTSO defines the way of connection by drafting the connection "offer" and defining the required fixed assets and the estimated cost. The responsibility for the construction of connection assets is borne by PPC, except in the cases of RES producers. The connection assets are charged to the user and their property is transferred to PPC (Transmission Division).

Interconnections Management In accordance with Law 2773/99, as amended, providers have the I right to use the interconnecting lines so as to import or/and export electric power. In addition, all eligible customers are entitled to electric power import, yet only for exclusive personal use.

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Organizational Structure

he organizational structure of PPC Transmission Division T (T/DI) at Department level is shown in the chart below:

TRANSMISSION DIVISION

T/PPD T/HRD T/ERD T/SD T/NPRD T/MPD

2 HEADS 2 HEADS 2 HEADS 2 ASSISTANT 2 ASSISTANT 2 SECTIONS OF SECTION OF SECTION OF SECTION DIRECTORS DIRECTORS 5 SUBSECTIONS 1 HEAD 1 HEAD 1 HEAD 12 SECTIONS 12 SECTIONS OF SUBSECTION OF SUBSECTION OF SUBSECTION 46 SUBSECTIONS 32 SUBSECTIONS

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Activities of transnission division departments

TRANSMISSION PLANNING AND PERFORMANCE DEPARTMENT (T/PPD) he Transmission Planning and Performance Department contributes to the T continuous improvement of T/DI performance by developing the Division’s Planning, as well as modern Administration systems. T/PPD ensures the setting of the Division’s strategic goals, as well as the drawing up of its operational and action plans. Furthermore, it is responsible for establishing and monitoring the Division’s

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *25

annual budget and performance indices, as well as for developing Management Information Systems (MIS).

TRANSMISSION HUMAN RESOURCES DEPARTMENT (T/HRD) he Transmission Human Resources Department is responsible T for the efficient management of T/DI personnel and its development by means of Training Programmes. T/HRD is also responsible for the study of the Units’ Organizational structure, the management of personnel-related issues, the development of Internal Communication and the coordination of strategies and measures concerning Occupational Health and Safety issues, whereas it provides installation security services.

TRANSMISSION EXTERNAL RELATIONS DEPARTMENT (T/ERD) he Transmission External Relations Department deals with all T issues pertaining to T/DI relations with HTSO, as well as with PPC Distribution, Generation, Mines and Supply Divisions. Within the framework of its mission, the Transmission External Relations

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | 26 * ACTIVITIES OF TRANSMISSION DIVISION DEPARTMENTS

Department is in charge of concluding and monitoring the Contracts signed with HTSO for the construction of the Projects provided for by the Transmission System Development Study. T/ERD is also responsible for the System’s annual maintenance, for concluding and monitoring Three-Party Contracts between HTSO, PPC and System Users for the connection of new Users to the System, as well as for concluding and monitoring the Contracts signed with the Distribution, Generation and Mines Division for the construction of Transmission Projects and the maintenance of their fixed assets. Furthermore, it draws up technical-financial studies on the development of the Transmission System, with a view to assist the System’s Owner to support the Transmission System Development Study at the stage of its approval by the Ministry of Development. Finally, T/ERD draws up the Transmission Systems Development Study regarding the non- Interconnected Islands, coordinates PPC Services involved in the monthly Electricity Market settlement and monitors the market’s institutional framework regarding Transmission Division issues.

TRANSMISSION SYSTEM DEPARTMENT (T/SD) he Transmission System Department is responsible for ensuring T the maintenance and technical support of the Interconnected Transmission System, of Substations, as well as of the fixed assets which come under the responsibility of the Mines, Generation and Distribution Divisions. It undertakes the implementation of relatively small scale projects, it sees to failure recovery, it carries out measurements and tests on all electromechanical equipment, while it ensures the operation of T/DI telecommunication means and the regular inventory of the System’s material, equipment and fixed assets. Moreover, T/SD monitors all property and right of way issues related to the Transmission System and draws up the environmental studies on the existing Transmission facilities.

TRANSMISSION NEW PROJECTS DEPARTMENT (T/NPRD) he Transmission New Projects Department undertakes T internally or through outsourcing the engineering and construction of all New Projects related to Transmission Lines (overhead, underground and submarine), Substations and Extra-High Voltage Substations of the National Interconnected Transmission System, of the systems on the islands, for voltages equal to or greater than 66kV, and of International Interconnections. In addition, T/NPRD

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | 27 ACTIVITIES OF TRANSMISSION DIVISION DEPARTMENTS * is entrusted with the engineering and construction of Third-Party Transmission Projects, while it sees to the purchasing and monitoring of the necessary System equipment and draws up the respective business programmes and investments budgets. Finally, T/NPRD draws up and monitors the contracts signed with contractors, the Projects and Equipment technical specifications, as well as the Environmental Studies on New Transmission Projects.

TRANSMISSION MATERIALS AND PURCHASING DEPARTMENT (T/MPD) he Transmission Materials and Purchasing Department is T responsible for planning and implementing centralized purchasing of materials, equipment, services and projects, as well as for supervising warehouses and monitoring T/DI material stock. T/MPD contributes to the enhancement of T/DI performance by monitoring the market on a constant basis, by improving purchasing procedures and prices, and by ensuring a rational stock management. Human Resources he following table shows the number of T/DI employees as of T June 30, 2007:

NUMBER OF T/D EMPLOYEES PER UNIT

T/DI T/PPD T/HRD T/ERD T/SD T/NPRD T/MPD TOTAL SECRETARIAT

4159 13 1041 434 27 1543

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *28

Environmental Care The environmental policy of PPC Transmission Division is aligned T with the Company’s general policy, which aims at harmonizing PPC activities with the institutional framework in force, at minimizing the environmental impact eventually brought about by such activities, as well as at constantly improving its environmental performance.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *29

The construction and operation of all Transmission, subtransmission Lines Substations and Extra high voltage Substations meet the guidelines set by the EU Recommendation (issued in 1999) on the limitation of public exposure to electromagnetic fields (0 Hz-300 GHz) while keeping great safety margins. This recommendation is based on the guidelines set by ICNIRP, an independent international scientific committee which operates under the auspices of the World Health Organization, for the protection against non-ionizing radiations.

| PUBLIC POWER CORPORATION S.A. | TRANSMISSION DIVISION | *30 Strategic Goals & Perspectives

he general strategic goals and perspectives of Transmission T Division are summarized as follows:

● Promotion of new Transmission Projects. Implementation of the Projects provided for by the Transmission System Development Study, in cooperation with HTSO; systematic control of project progress and performance. ● Optimal physical operation of the Transmission System. Transmission System maintenance, technical support and failure recovery, so as to ensure the System’s reliable operation at the least possible cost. ● Enhancement of System Reliability. Replacement of low-reliability equipment; installation of modern protection, measurement and remote surveillance systems. ● Enhancement of System Performance. Rationalization of operational expenses; use of new information tools and flexible procedures. ● Enhancement of Personnel Efficiency. Development and training of T/DI Human Resources to help them achieve their full potential. ● Rational Stock Management. Stock optimization in conjunction with minimization of purchasing implementation time. ● Environmental Protection. Full alignment of the environmental studies pertaining to Transmission projects to the relevant Hellenic and EU directives and regulations; close follow-up of international evolutions and promotion of actions aiming at environmental protection. ● New Activities. Development of telecommunications activities (Optical Fibres), promotion of actions aiming at the Company’s Unbundling in cooperation with other Business Units. Cooperation with other Electricity Companies, Higher Education Institutions and International Organizations.

Transmission

Brochure Publication: Transmission Division / T/DI Edition Supervising: Communication Department

89, Dyrahiou and Kifissou Ave., GR-104 32 , ∆el.: +30 210 5192 138, Fax: +30 210 5192 324, www.dei.gr