Grand Cayman, Cayman Islands – Caribbean Utilities Company, Ltd. (“CUC”) is
committed to advancing the renewable energy transition, ensuring it is secure,
affordable, and beneficial for households, businesses, and communities.

On August 1, 2025, CUC and the Cayman Islands Utility Regulation and Competition
Office (“URCO”) agreed on an approach to address the urgent need for additional
generating capacity requirements for Grand Cayman. As part of this agreement, CUC
has voluntarily withdrawn its Certificate of Need (“CON”) originally submitted on June
7, 2024. Concurrently, URCO has rescinded its Final Determination issued on April 24,
2025.

CUC will submit a new CON to URCO by September 5, 2025. This updated submission
will define the generation resource requirements necessary to support Grand
Cayman’s projected energy demand from 2027 onward.

CUC and URCO have also agreed that Condition 31 of CUC’s Transmission and
Distribution (“T&D”) Licence, does not preclude the provision of firm capacity
generation from renewable sources. Both parties have acknowledged that hybrid
solar photovoltaic systems integrated with battery storage may qualify as firm
capacity, subject to Effective Load Carrying Capacity analysis.

In addition, both parties are actively engaged in the modernization of the CUC
Transmission and Distribution Licence to align with evolving regulatory, infrastructure,
and operational needs. Both parties will apply all reasonable efforts to finalize this
process, including establishing milestone dates and deliverables to be agreed upon
as soon as practicable.

In support of the broader diversification of Grand Cayman’s energy portfolio, URCO
issued a Dispatchable Photovoltaic Request for Proposals on July 3, 2025. All eligible
bidders, including CUC, are invited to submit proposals by October 2, 2025. This
initiative represents an important step in expanding distributed renewable generation
capacity.

“We are proud of our strong track record of continuous improvement in reliability with
our average annual interruption duration now under 2 hours, and in line with North
American benchmarks. We are dedicated to maintaining and improving energy
reliability and resilience as we transition to Grand Cayman’s clean energy future. The
CUC team is fully committed to working closely with URCO to ensure that
affordability, reliability, and safety remain at the heart of our clean energy
transformation,” said President and CEO, Mr. Richard Hew.

ABOUT CARIBBEAN UTILITIES COMPANY, LTD. Caribbean Utilities Company, Ltd.
(“CUC” or the “Company”) is the sole provider of electricity to Grand Cayman. The
principal activity of the Company is to generate, transmit and distribute electricity in
its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year
Transmission & Distribution (“T&D”) Licence and a 25-year non-exclusive Generation
Licence (the “Generation License” and together with the T&D Licence, the “Licences”)
granted by the Cayman Islands Government (the “Government”, “CIG”). The T&D
Licence, which expires in April 2028, contains provisions for an automatic 20-year
renewal and the Company has reasonable expectation of renewal until April 2048.
The Generation Licence expires in November 2039. Further information is available at
www.cuc-cayman.com.