Republic ofthePhilippines ENERGY REGULATORY · Republic ofthePhilippines ENERGY REGULATORY...

i .

Republic of the PhilippinesENERGYREGULATORYCOMMISSION

MEMORANDUM

16 July 2007

FOR: ATTY. RODOlFO B. ALBANO, JR.CHAIRMAN/CEO

THRU:

FROM:

RE

FRANCIS SATURNiNO C. JUAN

INTERNAL AUDIT UN~T

LICENSING AND MARKET MONITORING PROCEDURES MANUAL

In compliance with the Minutes of the Commission Meeting No. 268 dated December13, 2006, wherein the Commission deemed it proper that all Procedure lVIanual shallrequire the approval of the Chief l;xecutive Officer, we are forwarding the Licensingand Market Monitoring Procedures I\/Janual for your approval prior to distribution tocopyholders .

.z~~reresltA. Cabriule

_Subject No.Pa e No:

\'I\-AT0li'r - II LICENSING and MARKET MONITORING I-Section No.~(j "0 MANUAL r Revision No. 00>..Qf \ - . -

~ ~ Section: Effectivity Date:~ ~ TABLE OF CONTENTS

•,o/:lJl,.'Pf'ft\~. Subjec.-t---.------

SECTIONNUMBER iTEM

-1 INTRODUCTIONGeneral ProvisionRole of the Licensing and Monitoring DivisionManual Copyholders

2 LICENSING'General PolicyTerms and Conditions -Independent Power

ProducersTerms and Conditions - Self - Generation

Facmties

SUBJECTNUMBER

123

12

3

r"',.~

3

4

CERTIFICATE OF COMPLIANCEApplication and AssessmentInspectionEvaluationPrinting of Certificate of Complianceissuance of Certificate of Compliance

MONITOR~NGGenera.' PolicyFinancial Standards

Technical Standards

12345

123

5 FORMS USED

6 ERC GUIDELINES/RESOLUTION ISSUED

LICENSING and MARKET MON~TOR~NG----rsection.NO.1, MANUAl'~~ __ ~~___ fRVeIRevision No. 00

Section: ' Effectivity Date: lINTRODUCTION ---- 1

Subject: Sub'ect No. 1 _GENERAL PROVISIONS Pa e No: 1 of 2

I. PURPOSE

The Energy Regulatory Commission Certificate of Compliance (COC)Evaluation and Monitoring Manual is a compilation of the polici,e.s andimplementing procedures of the Licensing and the Market MonitoringDivision of Market Operations Service. Its primary purpose is to informthe employees of the policies and the corresponding proceduresgoverning the Energy Regulatory Commission (ERC) in its evaluationand monitoring of coe application.

It SCOPE

The Manual is divided into rnajor sections and further subdivided intosubjects. Specific subjects are fully explained in the following format:

J......;.:.:1

Ic I

II!

,;

:.•-~ ...•..~~.

m.

1. Policy Statements2. Policy Guidelines3. Definition of Terms4. Procedure Details5. Notes6. Reference7. Records

REVISIONS

Revisions to the policies included in this Manual shall be subject to theapproval of the Commission en Bane, while the Chief Executive Officer,upon recommendation of the Executive Director approves the revisionsto the procedures. The Market Operations Service in coordination withthe Internal Audit Unit is responsible for effecting and attesting tochanges in this Manual that the Chief Executive Officer may authorizefrom time to time.

Section. No. 1Revision No. 00Effectivity Date:

u\J'.~---UCENSING and MARKET MONITORINGF'0% I MANUAL

;... -; - -

~ ..~ Section:~ ~ INTRODUCTION

•AlfJl.lPPl~'f>. Subject:GENERAL PROVISIONS

IV. DISTRIBUTIONAND.CUSTODIANSt-UP

-=11

Sub-"-e-c'-t N-o--.--1 ---.1•Pa e No: 2 of 2 _

This Manual belongs to the ERCand is issued to an authorizedcopyholder who is responsible for its updating and safekeeping.Entitlement to possession of copy of this Manual is granted based onthe position and should remain so' regardless of the person as theoccupant. The copyholder should make this Manual available to thepersonnel in need of it in the performance of his assigned task.

Each copy of this Manual is registered by number with the InternalAudit Unit under the name of the occupant of the position entitled tohave possession ofa copy of this Manual. Should the person of theoccupant be transferred to another position within or intends to severemployment with the, ERG, said Officer must advise the Internal AuditUnit thereof. The advice shall be contained in a Memorandum in two(2) copies, at least five (5) days prior to the intended transfer orseverance. Notice to the Internal Audit Unit is intended to facilitateclearance of accountability over this Manual.

Subject No,_'_2 _.Page No: 1 O'f 1

r ~:-r----'- -. ISection. No., '1 ---=1'. ,:/:)\i\-ArOf?y co'!. LICENSiNG and MONITOR~NG ~.VlANUAL~v ''::> Revision No.~ ~ ---------. -----.---.--------.------t-.----- ---~ .~ Section: Effectivity Date:\l.I -

~ ~ . iNTRODUCTION'~IjJl.fPP\~~ Subject: ----------

ROLE OF THE LICENSING AND MONITORINGDIViSION

The Licensing 'and Monitoring Division, a division of the Market OperationsService is responsible for making recommendations for issuance of licensesto participants in the electricity industry, and for monitoring of theirperformance.

f9I Reviews and supervises the issuance of licenses for generationcOITlpanies including: compliance, financial evaluation, technicalevaluation, legal and corporate qualification, conflict of interestdetermination, compH,ancewith the Grid/Distribution code provisionsand other laws and IRR;

@ Conducts periodic reviews of the guidelines/requirements for theissuance :of licensesffranchises for possible improvement in theprocess/system;

e Monitor activities in the generation of electric power to promote freemarket competition and secure transparency in the allocation or passthrough bulk purchase costs for distribution;

(Il Monitors financial records to ensure strict compliance of the generationcompanies ability to pay debts on time;

@ Recommends for approval, criteria/standards 'for determiningqualifications of applicants for licenses to operate.

MANUAL COPYHOLDERS

l~CENSiNG a.nd MARKET MONITORINGMANUAL

rect.io_n_: ---------_ INTRODUCTIONI Subject:I

Section. No. _1__ --==lRevision No. 00 _ IEffectivity Date:

AUTHOR~EDCOPYHOLDERS

Chairman/CEO LMMD-01

Commissioners LMMD-02

Executive Director LMMD-03

LMMD-04LMMD-05LMMD-06LMMD-07

- LMMD-08- LMMD-09

LMMD-10

Director, Office of the General Counsel" and Secretariat -Director, Consumer Affairs ServiceDirector, Financial and Administrative ServiceDirector, Legal ServiceDirector, Market Operations ServiceDirector, Planning and Informatiqn ServiceDirector, Regulatory Operations Service

Officer-In-Charge, Mindanao Field OfficeOfficer-In-Charge, Visayas Field Office

LMMD-11LMMD-12

Chief, Licensing and Monitoring Division LMMD-13

Internal Audit Unit

- _._-----_._------------------~-----------------_ ..•_------------------------

ENERGY REGULATORY COMMISSIONINTERNAL AUDIT UNIT

This is to acknowledge receipt of'~he ERC licensing and Market MonitoringDivision Procedures ManuaL

Copyholder

Received by

Date Received

CEO/Chairman

. if) \, { .~ 1 '~LU\f'IA \/' . ~ \M f, 11

(Sign~ture Over Printed Name)

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_._------- .._------------------ _ •.._-------_ _---------- •.•...•._------- .


This is to acknowledge receipt of the ERC Licensing and Market MonitoringDivision Procedures ManuaL

, .::....- ....•.

Copyholder

Received by

Date Received

Commissioner

hf.~J {?!1 t'l (/']

Ik1/-f/JC'" C. t~UJi t/;(Signature Over Printed Name)

.._._--- ----------_._ ...._- ---._--------------------- -- _ .._ ..-


This is to acknowledge receipt of the ERC Licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

_. '-." .. ,

Commissioner

J}\)(~ IJG2

er Printed Name)

• ~-------------------""---------- ",, v.Jfl •••••••••••••••• a ••••• _


This is 'to acknowledge receipt of the ERC Licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

Commissioner


This isio acknowledge r~ceipt of the ERC Licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

.Commissioner

..1(>(SiQn reOver Printed Name)

-----_._-~-------------------------------------------------


This is to acknowledge receipt of the ERG Licensing and Market MonitoringDivision Procedures ManuaL

Copyholder

Received by

Date Received

Executive Director

. IfJiIV[!''ft. ibv(sig ature dVer Printed Name)


This is to acknowledge receipt of the ERe Licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

Director, Office of the General Counsel & Secretariat

.~.~\~~~ ~ 0' ltftiJJ' 0(Signature Over Printed Name)

._------------------------------------------------------------



Copyholder

Received by

Date Received

Director, Consumer Affairs Service

. ~r,/a /;1/(//\( /.{" dO' /nLt c-u/1:n7Y(Signature Over Printed Nanie)

.._--------------------------------------------------------


This is to acknowledge receipt of the ERe Licensing and Market MonitoringDivision Procedures ~AanuaL

Copyholder

Received by

Date Received

Director, Financial and Administrative Service

FIOt1 . 1f::{~o III '

(Signature ver Printed Name)

------------------------------------------------------ ....


This is to acknowledge receipt of the ERG Licensing and Market MonitoringDivision Procedures IVlanuaL

Copyholder

Received by

Date Received

._-----------------_ ...._--------------------


This is to acknowledge receipt of the ERC- licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

Director, Market Operations Service

" of,rvn//V A-iL1i. e:/?~VFV'<C~" I--/i ~/ ' v

(Signature Over Printed Name)

... -- ---_._-----------------------_._-------- •..._--_-.._---,.-----_ .._--------_ ..•_--.., ...._-----------~------------------

ENERGY REGULATORY COMMISSIONINTERNAL AUDiT UNIT

This is to acknowledge receipt of the ERe Licensing and Market MonitoringDivision Procedures ManuaL

A,/

Copyholder

Received by

Date Received

Director. Planning and Information Service

fi f~ --~~ 7" .L/{ (-1/I~1/1)" , .,;~tj."01-'if:,! tt. /'1 A ,') 'c"A' t. /.f.. J((1:\. JI, + (I( >.:, I .. , G.'I

(Signature Over Printed Name)


This is to acknowledge receipt of the ERC Licensing and Market MonitoringDivision Procedures Manual.

Copyholder

Received by

Date Received

Director, Regulatory Operations Service

. -----------~~---------------------------------_._------------------~---------------~-------------------------



Copyholder

Received by

Date Received

Chief, Licensing and Monitoring Division

0/( ~

0/1)./'V -4'A i (!:/G{;:vtv(Signature Over Printed Name)

1 Section NO.2=]I Revision No. 00 _..Effectivity oate===l~:{;o~~.k=j-------

Ir. _

Policy Statement

The Commission is mandated under Section 6 of Republic Act. No. 9136, andSection 4 (m) of Rule 3, and Rule 5 of its Implementing Rules to issue aCertificate of Compliance to all generation companies that conforms to theobligations, cross-ownership and market restrictions as stipulated therein.

No Generating Facility shall be allowed to generate electricity, or shall beallowed to sell electricity to a Distribution Utility, Supplier, End-User or theWESM without a valid Certificate Of Compliance having been issued by theEnergy Regulatory Commission.

LICENSING and MARKET MONITORINGMANUAL

Section:LICENSINGISubject: TERMS and CONDITIONS -

I INDEPENDENT POWER PRODUCERS

~ection No.2Revision No. 00Effectivity Date:

Subject No.~I Page No: 1 of 3

1

1. Tile Certificate of Compliance (COC) shall be valid for a period of five (5)years from date of issuance;

Thereafter, the Generation Company shall apply with Energy RegulatoryCommission (ERC) fora renewal of said coe. All application for renewal ofCOC shall be accompanied by all the required information disclosure andproof of conformity to the obligations set forth in the coe Guidelines;

2. An expansion, conversion or repowering of any of the Generation Company'sfacilities, or an acquisition of a new Generating Facility shall require aseparate COC for that particular facility. Accordingly, the COC issued to aNew Generating Facility by vir1ue of an expansion, conversion or repoweringshalf have a term equivalent to the remaining life of the coe of theGeneration Company;

3. The Generation Company or its subsidiary or Affiliate shall not hold anyinterest, directly or indirectly, in the National Transmission Corporation(TransCo) or its concessionaire;

4. No Generation Company can own, operate or control more than thirty percent(30%) of the installed generating capacity within a Grid and/or twenty-fivepercent(25%

) of the national installed generating capacity;

5. The Generation Company shall not sell to an affiliate Distribution Utilitythrough bilateral power supply contracts more than fifty percent (500/0) of thatDistribution Utility's total demand;

6. The Generation Companies shall offer and sell to the public a portion not lessthan fifteen percent (150/0) of their common shares of stocks not later than five(5) years from 26 June 2001 (for Independent Power Producers (IPPs)existing as of 26 June 2001), or not tater than five (5) years from the issuanceof the COC (for new IPPs, Le. existing after 26 June 2001);

7. The Generating Company shall ensure that all its facilities meet the technicaldesign and operational criteria of the Grid Code and the PhilippineDistribution Code, the Philippine Electrical Code, and the TransCo or itsconcessionaire, including, among others, standards for voltage fluctuation,frequency, harmonics, security, reliability, unplanned outages and provision ofancillary services and shall operate in accordance with such operationalcriteria;

8. The Generation Company shaH conform to the financial standards provided inthe Grid Code;

LICENSiNGSubject: TERMS and CONDITIONS -INDEPENDENT POWER PRODUCERS (lPPs)

Section No. 2Revision No, 00Effectivity Date:

Sub'ect NO.2---Pae No: 2 of 3

9. The Generation Company/Facility shall provide financial benefits pursuant toRule 29A of the IRR of RA 9136;

10. Upon the establishment of the Wholesale Electricity Spot Market (WESM), theGeneration Company shan comply with the membership criteria as prescribedunder the WESM Rules;

11. Within thirty (30) days after the end of each fiscal period, the GenerationCompany shaH submit to ERC a management report or discussion .onoperations and financial results which shall include the following:

(i) Report on capacity utilization, electricity dispatch/sales volume,maintenance schedules, and unsch~d~led downtimes during the period;

(ii) Report on energy revenues during the period, detailing volumes, theidentity/ies of the buyerls and prices broken down as follows: fuel cost,fixed operating and maintenance expenses, variable operating andmaintenance expenses, and capital recovery charge;

(iii) Any material information affecting the operations, ownership,management, and financial condition and results of the GenerationCompany; and

(iv) Within thirty (30) days from the filing of its income tax return with theBureau of Internal Revenue, the Generation Company shall submit acomplete set of its audited financial statements (i.e., balance sheet,income statement, statement of cash flows, notes), including the auditopinion and the statement of management's responsibility on thefinancial statements. The income statement should include a detailedschedule of operating expenses for the period.

12. Within three (3) days from the occurrence of an event which results in amaterial change concerning or potentially affecting the company's ownership,management, operations, financial condition and performance, theGeneration Company shall submit a written disclosure to ERC of such factor event and its impact on the company.

13. The Generation Company with Generation Facilities connected to a grid shallmake inform.ationavaiiabfe to the Market Operator to enable the MarketOperator to implement the appropriate dispatch scheduling and shall complywith the said scheduling in accordance with theWESM Rules;

I v.TOI? -I LICENSiNG and, M'ARKET MONITORiNG0>3 r C'

I ~'<; o~ MANUAL>-. ~ 1'------

I~ E Section:~ ~ LICENSING./:JIi'l.IPPn~f-'. Subject: TERMS and CONDITIONS -

INDEPENDENT POWER PRODUCERS (IPPs)

I Section No.2Revision No. 00Effectivity Date:

Sub'ect NO.2Page No: 3 of 3

14. The Generation Company shall likewise make information available to thegrid operator to facilitate central dispatch. Subject to technical constraints,the grid operator of the TransCo or its concessionaire shall provide centraldispatch to a Generation Facility connected, directly or indirectly, to thetransmission system in accordance with the dispatch schedule submitted bythe Market Operator.

15. The Generation Company shall submit to the DOE any information as may berequired by the DOE tor the preparation of its Power Development Program,subject to appropriate measures to preserve the confidentiality of proprietaryor commercially sensitive information;

16. The Generation Conlpany shan ensure that its Generation Facilities Gomplywith applicable environmental laws, rules and regulations;

17. The Generation Company shall structurally and functionally unbundle itsgeneration business activities and rates from its supply and/or relatedbusinesses; and

18. The Generation Company shall comply with other issuances and directivesthat the ERe may issue from time to time pursuant to its quasi-legislativefunctions.

Non-compliance with any of the above terms and conditions will be sufficientground for the suspension or cancellation of the coe and/or fine and penalties byERe under Article HI of the llGuidelines to Govern the Imposition of AdministrativeSanctions in the Form of Fines and Penalties Pursuant to Section 46 of R.A. No.9136".

[

LiCENSING and MARKET MONITORINGM1ANUAl

LICENSINGSubject: TERMS and CONDITIONS -

SELF-GENERATION FACiliTIES

Section No. 2Revision No. 00Effectivity Date:

Sub'ect No. 3Pa e No.: 1 of 1

II

.,j..

1. The Certificate of Compliance (COC) shall be valid for a period of five (5)years from date of issuance;

Thereafter, the SGF shall apply with the Energy Regulatory Commission(ERC) for a renewal of said COCo Application for a renewal of coe shallbe accompanied by all the required information disclosure and proof ofconformity to the obligations set forth in the coe Guidelines;

2. An expansion, conversion or repowering of any of the Self-GenerationFacilities (SGFs), or an acquisition of a new Generating Facility shallrequire a separate coe for that particular facility. Accordingly, the coeissued to a New SGF by virtue of an expansion, conversion or repoweringshall have ~ term equivalent to the remaining life of the coe of the SGF;

3. The SGF shall provide financial benefits pursuant to Rule 29A of theImplementing Rules and Regulation of Republic Act 9136;

4. The SGF shall register its facility with the Power Sector Assets andLiabilities Management Corp. (PSALM) in compliance with Section 7 Rule18 of the IRR of R.A. 9136;

5. Within thirty (30) days after the end of each year, the Generation Companyshall submit to ERe an electronic copy of the monthly summary of its kWhgenerated, Company use, loss or unaccounted energy, volume and amountof fuel utilized to generate power;

6. The SGF shall ensure that its Generation Facilities comply vvith applicableenvironmental laws, rules and regulations;

7. The SGF, if and when it intends to be a member of the WholesaleElectricity Spot Market (WESM), shall comply with the WESM Rules, thePhilippine Grid Code, the Philippine Distribution Code and other applicablelaws, rules and regulations;

8. The SGF shall comply with other issuances and directives that the ERemay issue from time to time pursuant to its quasi-legislative functions.

Non-compliance with any of the above terms and conditions will be sufficientground for the suspension or cancellation of the coe and/or payment of fine andpenalties as may be imposed by ERe under Article III of the "Guidelines to Govemthe Imposition of Administrative Sanctions in the Form of Fines and PenaltiesPursuant to Section 46 of R.A. No. 9136".

I---~ lICENS~NG and MARKET MONITORING Section NO.3\}\.ATOl?y I __

jfG C'o~ I MANUJ\l RevisionNo. 00~ C:~::'-E I-S-e-c-tio-n: Effectivity Date:~'.o r".~ ~__ CERTIFICATE OF COM_P_L_IA_N_C_"_E I- --l

i'fJLfP'PI,*, I Subject: _~u9ject No. __1 --.,1_____ APPLICATIONandASSESSMENT PageNo.: 1 of?

t POLICY

All applications for Certificate of Compliance (COC) received by theLicensing and Market Monitoring Division (LMMD) of Market OperationService shall be given a timely, appropriate and accurate Assessment.

II. POl~CY GUiDELINES

1. VVithout unnecessary delay, an assessment fee shall be provided withinthe day upon receipt of completely filled out application form from theapplicant/(s).

2. The assessment function for coe applications by the Visayas andMindanao Field Offices of the ERG shall only commence upon receipt ofthe application reference number as requested from the Division Chief ofthe LMMD.

3. The assessment fees that shall be collected from the applicant/(s) will bebased on the Schedule of coe Application Fees and Requirement Matrix(Independent Power Producers and Generation Company/(ies) and Self-Generation Facilities) duly approved by ERC, including amendmentsthereto, and correspondingly published in a newspaper of generalcirculation.

UI. DEFINITIONOF TERMS

Assessment

BOT

- process which involves initial appraisal of coeapplications/submissions to determine appropriatecorresponding fee.

- built-operate-transfer, shall have the meaningspecified by Republic Act No. 6957, as amended,otherwise known as "BOT Law" and its implementingrules and regulations.

Certificate of - license issued by the ERC to a GenerationCompliance (COC) Company/Facilities certifying that it conforms to the

qualification requirements and procedures dulystipulated in the Amended Guidelines for theIssuance of coe dated June 26, 2002.

Section No.3Revision No. 00Effectivity Date:

Subject No. 1Page No.: 2 of 7-----------------_.

l!CENSING and MARKET MON~TORiNGMtlNUAl

Section:CERTIFICATE OF COMPLIANCE

Subject:APPLICATION and ASSESSMENT

III. DEFiNiTION OF TERMS (Cont'd)

Distribution Utility - refers to any electric cooperative, privatecorporation, government-owned utility or existing.local government unit which has an exclusivefranchise to operate a distribution system inaccordance with its franchise and RA 9136.

Economic Zones - refer to selected areas which are highly developed or, have the potential to be developed into agro-

industrial, industrial, tourist, recreational,commercial, banking, investment and financialcenters, including but not limited to the following:Industrial Estates, Export Processing Zones, FreeTrade Zones, Information Technology Parks andTourist/Recreational Centers, the Bases ConversionDevelopment Authority, Cagayan Economic ZoneAuthority, Clark Development Corporation, PhilippineEconomic Zone Authority, Phividec IndustrialAuthority and Zamboanga City Economic ZoneAuthority_

Existing Generation -Companies

shall include (1) Spin-off Facilities of the NationalPower Corporation or their transferees, includingGenerating Facilities or Generation Companiesowned by NPC transferred to PSALM andsubsequently privatized pursuant to RA 9136;(2) Agus and Pulangui Complexes; (3) Facilitiesowned and operated by NPC-SPUG; (4) Accreditedfacilities under BOT arrangement and other variantswith NPC, NPC-SPUG, NEA, PNOC-EDC and otherGovernment Agencies; (5) Accredited facilities underBOT arrangement and other variant with DistributionUtilities; (6) Facilities owned or operated by aDistribution Utilility; 7) GenerationCompanies/Facilities under contract with aDistribution Utility; (8) Self-Generation Facilties;(9) Facilities operating in Economic Zones; and(10) Facility operating in isolated areas.

Sub'ect NO.1Page No.: 3 of "7

Il~CENSINGand MARKET MONITORING Section No_.~ .I

I . M_A_N_t_IJ"A__l Revision No. 00 _I Section: Effectivity Date:k CERTIFICATE OF COMPLIANCEI Subject:I APPLICATION and ASSESS~ENT

nt DEFINITION OF TERMS (Cont'd)

GenerationCompany

GeneratingFacilities underConstruction

!\jew GeneratingFacilities

New GeneratingCompanies

f\iPC

PNOC-EDC

PSALM

- refers to any person or entity authorized by the ERCto operate faciHties used in the generation ofelectricity.

- shall include (1) DOE-Accredited facility under BOTarrangement and other variants with NPC, NPC-SPUG, PNOC-EDC, NIA and other GovernmentAgencies; (2) DOE-Accredited facility under BOTarrangement and other variants with DistributionUtilities; (3) Non-DOE Accredited Facility undercontract with Distribution Utilities; (4) Self-GenerationFacility; and (5)' Facility locating in Economic Zonesand FaciHty operating In isolated areas.

- shall include (1) Any newly-constructed facilityconnected to the Grid with appropriate health, safetyand environmental clearances; (2) Any facilitycurrently under BOT arrangement and other variantswith NPC, NPC-SPUG, PNOC-EDC and otherGovernment Agencies and Government-Owned andControlled Corporations; and (3) Any facility thatshaH operate in an isolated area.

- re'fer to new entities owning or operating one ormore Generating Facilities.

- National Power Corporation refers to the governmentcorporat.ion created under Republic Act No. 6395, asamended.

- PNOC - Energy Development Corporation a whollyowned subsidiary of the Philippine National OilCompany, registered with the Securities andExchange COInmission on March 05, 1976.

- Power Sector Assets and Liabilities ManagementCorporation or "PSALM Corp." refers to thecorporation created pursuant to Section 49 of RA9136.

0\./l,TO!\,y LICENSING and MARKET MONITORING(v0 "0 MANUAL

;,.,Qf '\ I

~ (ii Section:ul 5!!~ ~ CERTIFICATE OF COMPLIANCE

.AI1ILrPP\\'<"E;.~' Subject:APPLICATION and ASSESSMENT

UI. DEFINITIONOF TERMS (Cont'd)

----=1Section NO.3Revision No. 00Effectivity Date:

Sub'ect NO.1Pa e No.: 4 of 7

PSALM appointedIPP Administrators

Self-GenerationFacility

Small PowerUtilities Group(SPUG)

- refer to qualified independent entities appointed byPSALM, who shall administer, conserve and managethe contracted energy output of NPC IPP contractsincluding selling the contracted energy output ofthese contracts and offering ancillary services,where applicable.

- refers to a power Generation Facility owned andconstructed by an end-user for such end-user's ownconsumption or internal use excluding. g~nerationfacilities for use by households, clinics, hospital andother medical facilities.

- refers to the functional unit of NPC created to pursuemissionary electrification functions.

IV. PROCEDUREDETAilS

RESPONSIBILITY

Clerk/ERG I, II/SERO

Clerk/ERO I, IIISERO, SupERO

--]ReceiveDocuments _

See Note 1 & 2

PrepareAssessment

INTERFACE

Existing/New/UnderConstructionGENCO's/F acilities,PSALM Appointed IPP Adm.

Existing/New/UnderConstruction GENCO's,PSALM Appointed IPP Adm.

",/•..

I \-I>.TOrry l lICENSIi\iG and MARKET WIONITORINGI Q;-'<r6\} C'o~ MANUAL

>.. ~

Let: ~ :- Section:t J I CERTIFICATE OF COMPLIANCE

• /:>1tJl.tnnl"\~'!:> • ,I, rr," I Subject:

APPLICATION and ASSESSMENT! ._----


f Section No. 3 1------------Revision No. 00 .Effectivity Date: ISubject N~._ ~Page No.: 5 of 7

RESPONSiBiliTY

Clerk/ERO I, IiiSERO, SupERO


ACTiON

See Note 3

INTERFACE

Existing/New/Under'Construction GENCO'ss,PSALM Appointed IPP Adm.

Division Chief

Note 1: a. coe application form/(s) are pre-numbered.b. Application form is made readily available to walk-in applicants in

hard copy, or in soft copy to be downloaded from the ERC Website.c. All document requirements must be submitted in hard copy except

for IPPIGENeO applicant/(s), who may be required to submitadditional soft copy/(ies) oJ forms 1-7.

Note 2: a. For SGFs, the documentary requirements and application fees (newand renewal) are specified under the coe. Application Fees andRequirement Matrix for SGFs.

b. For IPP applications, documentary requirements and applicationfees (new and renewal) will follow the coe Application Fees andRequirement Matrix for IPP and GENCO's.

r--'0\..ArO'?r 1 lICENSIN-G-an-d MARKET MONITORING Section No. _3.____ ]I ,~<v(:i °0 MANUAL Revision No. 00 .'1~~l Sectio-n-: ---------- Effectivity Date--: --~.~ ~ CERTIFICATE OF COMPLIANCE

GJOI-jJl.IPP\~~6 Subject: f--$ubject N__o..:..--... .._1_______ _.,___ AP_PL_IC_"'A_TIONand ASSESSMENT --L-P_a_~ge No.: 6 of 7

Note 3: a. Prepare assessment form (in-house form) in five (5) copies applyingthe appropriate application fees per aggregate installed capacity pertype of applicant. Distribution of assessment form follows:a1. Two (2) copies - Cashiera2. Two (2) copies ~- LMMD (as attachment to applicant's 'file folder

and as file copy under assessment form folder)a3. One (1) copy - Applicant

b. Assign assessment number following the sequence:"LM MD-COC-APP-XXXX-XXXXX"

YEAR CODt (e.g. 20JAPPLICATION NUMBER CODE (e.g. 00001)

c. Forward Assessment form to SupERO and Division Chief for theirsignature.

d. Direct the applicant to pay assessment fee to the Cashier.e. Compare and ensure that the Official Receipt (OR) number reflected

in the assessment form correspond to the OR issued by the Cashier.f. Assessment number should correspond to the Application number.Q. Assessment/application numbers (for Head and Visayas and

Mindanao Field Office applicants) are centralized in the Head Officeand sequentially log in the logbook specified for such purpose.

Note 4: a. Attach paid assessment form to Applicant's file folder.b. File extra copy to "Assessment Form" file folder.c. Forward Applicant's file folder to the Division Chief for

assignment/delegation to proper personnel for the evaluationprocess.

V. REFERENCE:

Resolution No. 07, series of 2006, a Resolution Amending the Terms andConditions of the Certificate of CompHance Issued to EntitiesOwning Self-Generation Facilities Particularly Item No.5 Thereof.

Guidelines for the Issuance of Certificate of Compliance for GenerationCompanies/Facilities, as Amended

IPP/GENGO's coe Application Fees and Requirement MatrixSelf-Generating Facilities coe Application Fees and Requirement MatrixTerms and Conditions of the coeERG Schedule of Fees and Charges

I[ L~CENSING and MARKET ~J!jOf\JITORiN~Sec~i~n NO.3 IMANUAL lRevlslon No. 00

j-S-e-c-ti-o--n-: EffectivityDate:_ ~I CERTIFICATE OF COMPLIANCE

Subject: Subject NO.1APPLICATION and ASSESSMENT Page No.: 7 of 7

VI. RECORDS

1. Assessment Form file folders2. Applicants 'file folders with the following:

a. Form NO.1 - coe Application Formb. Form NO.2 - Company Profilec. Form NO.3 - Three-year Operational History per Plantd. Form NO.4 - Affidavit of Compliance with the Philippine

Grid/Distribution Codee. Form NO.5 - Affidavit of Compliance with WESM Rulesf. Form NO.6 - Affidavit of Compliance with Cross Ownership and

Market Share Restrictiong. Form NO.7 - General Plant Description'h.' And other documentary requirements as stated in the coe

application fees and documentary requirements matrix3. Control Number (assessment/application) Logbook

l~CENSING AND MARKET MONITORING DIVISION

coe APPLICATION & REQUIREMENT MATRIX-IPP and GENCO's

PARTICULARS

IPP regardless of installedcapacity

Generation CompaniesOperational as ofJune 26, 2001

APPl!CATION FEES andDOCUMENTARY REQUIREMENTS

Php 10,000.00

I. Form NO.1 to 7

II. Financial Requirements'I. Audited Financial Statements for the two (2) most

recent 12-montll periods, i'f available;2. Schedule of Liabilities, to include the following

information:' name of creditor, type of credit, creditterms;

3. Five (5) year Financial Plan; and4. Documentation on Financial Track Record of the

Generation Company and of its principalstockholder; if available.

III. Ownership/Control1. Articles of Incorporation/Partnership (for

Corporation! Partnership) with Certificate ofRegistration;

2. Business Name Registration Certificate (forSingle Proprietorship);

3. Updated Listing of Shareholders andcorresponding equity shares;

4. Complete List of its Board of Directors and SeniorOfficials down to the level of Plant Managers;

5. Types of Long Term Debt and Equity !nstrument,including amount and proportion to totalcapitalization;

6. Sworn Statement that the Company complieswith and will continue to comply with theprovisions on cross ownership and market sharerestrictions under RA No. 9136, its ImplementingRules and Regulations and the Guidelines forIssuance of Certificates of Compliance forGeneration Companies/Facilities for the durationof the COC;

'7. Comprehensive and complete listing of Affiliatesand Related Groups, including ownership andmanagement structure; and

8. PSE Certificate to the e'ffect that they are listedwith PSE, when applicable.

t"'~ t- L__IC__E__N_S_iN__G__A__N_D_M_A_R_K_E_T_M__O_N_iT__0_- R_IN_G_" D_I_Vi_S_I_O_N jt coe APPLICATION FEES & REQUIREMENT MATRIX-

______.,o1tJ1..IP'P~<;' ~ P and GE t\!g_Q:~ _

VI.

v.

PARTICULARS

Generation CompaniesOperational after June 26,2001

DOCUMENTARY REQUIREMENTS--------IV. Other Requirements

9. Power Purchase Agreements;2. Power Supply Contracts;3. Memorandum of Agreement on the Establishment

of Trust Accounts by the Generation Companyand/or the Energy Resource Developer and theDepartment of Energy on Benefits to HostCommunities as required under Rule 29 of theIRR; and

4. Environmenta! Compliance Certificate (ECC) dulyapproved by the Department of Environment andNatural Resources.

DOE Endorsement indicating that the power plantproject is consistent with the Power DevelopmentProgram of the government; andSuch other information or document that ERe may

require. ------ d

~4-v00 -I l~CENSING AND ~V1ARKETMONITORING DiV;qSION~i~:~ COC APPLICATiON FEES at REQU~REMEI\JTMATRIX-~'AIfJl.fP'P\~'?>' SELF-GENERATING FACILITIES

--------------------------------------- ------------- -------------- 1

501-999 KW

101-500 KW

1 MW and Above

100 KW and Below

AGGREGATE APPlICAT10N FEES and~NSTALLED CAPACITY DOCUMENTARY REQUiREMENTS

-------------------- ---------------------------------------------Php 1,500.00

2. Application Form (COe Form NO.1)3. Company Profile (COe Form NO.2)

Php 5,000.001. Application Form (COe Form NO.1)2. Company Profile (COe Form NO.2)

Php 7,500.001. Application Form (COe Form NO.1)2. Company Profile (COe Form NO.2)

Php 10,000.001. Application Form (COe Form NO.1)2. Company Profile (COe Form NO.2)3. Three-Year Operational History (COe Form NO.3)4. SEC Registration5. General Information St1eet (SEC Form)6. DOE/NPC Cer!JJicate of Accreditation, if applicable

",

~ ..

t POLICY

All applications for Certificate of Compliance (COC) received by theLicensing and Market Monitoring Division (LMMD) of Market OperationService shall be given a timely I appropriate and accurate Assessment.

u. POLICY GUIDEL!NES

1.. Without unnecessary delay, an assessment fee shall be provided withinthe day upon receipt of cornpJetely filled out application form from theapplicant/(s).

2. The assessment function for coe ,applications by the Visayas andMindanao Field Offices of the ERe shall only commence upon receipt ofthe application reference nurnber as requested from the Division Chief ofthe LMMD.

3. The assessment fees that shall be collected from the applicant/(s) will bebased on the Schedule of coe Application Fees and Requirement Matrix(Independent Power Producers and Generation Company/(ies) and Seif-Generation Facilities) duly approved by ERC, including amendmentsthereto, and correspondingly published in a newspaper of generalcirculation.

DEFINITION OF TERMS

Assessment

BOT

Certificate ofCompliance (COe)

- process which involves initial appraisal of coeapplications/submissions to determine appropriatecorresponding fee.

built-operate-transfer, shall have the meaningspecified by Republic Act No. 6957, as amended"otherwise known as "BOT Law" and its implementing .rules and regulations.

license issued by the ERC to a GenerationCompanyfF acilities certifying that it conforms to thequalification requirements and procedures dulystipulated in the Amended Guidelines for theIssuance of COC dated June 26, 2002.

G~~~--~-~E~iNG ..~~M~~f~~I~mN~-~~onNo.3. .-~~G C'o~ I; fRevision No. 00 --l

llOA ) Is-ec-ti-O-n:~C~E__~_T_I-FI_g=A~E ~F-COM~_~_A~N-~_-E_--.__-__-~~J-.._E_-ff__e_c~t-_iV._=itY=D~~_a_-t_8_:_-_-__ ~I

'IfJ'-IPP\~"'.:J. /SUbject ~ybject NO.1:- --L_~ APPLICATION and ASSESSME_~_~_g~ ~!o.: 2 o'r -, .

III. DEFINiT~ONOF TERMS (Cont'd)

Distribution Utility - refers to any eJectric cooperative, privatecorporation, government-owned utility or existinglocal government unit which has an exclusivefranchise to operate a distribution system inaccordance "vith its franchise and RA 9136.

Economic Zones - refer to selected areas \Nhich are highly developed orhave the potential to be developed into agro-industrial, industrial, tourist, recreational,comrnercial, banking, investment and financialcenters, including but not limited to the following:Industrial Estates, Export Processing Zones, FreeTrade Zones, Information Technology Parks andTourist/Recreational Centers, the Bases ConversionDevelopment Authority, Cagayan Economic ZoneAuthority, Clark Development Corporation, .PhilippineEconomic Zone Authority, Phividec IndustrialAuthority and Zamboanga City Economic ZoneAuthority_

(

Existing Generation-Companies

shaU include (1) Spin-off Facilities of the NationalPower Corporation or their transferees, includingGenerating Facilities or Generation Companiesowned by NPC transferred to PSALM andsubsequently privatized pursuant to RA 9136;(2) Agus and Pulangui Complexes; (3) Facilitiesowned and operated by NPC-SPUG; (4) Accreditedfacilities under BOT arrangement and other variantswith NPC, NPC-SPUG, NEA, PNOC-EDC and otherGovernment Agencies; (5) Accredited facilities underBOT arrangement and other variant with DistributionUtilities; (6) Facilities owned or operated by aDistribution Utilility; 7) GenerationCompanies/Facilities under contract with aDistribution Utility; (8) Self-Generation Facilties;(9) Facilities operating in Economic Zones; and(10) Facility operating in isolated areas.

~T~'l-~~~CENSiNG~~d ~RKETMO~TORING- SectionNo.3 ~I ,t:k'v

0V

' C'~ MANUAL Revision No. 00 -1g ~ I Sectiofl: . . .._- iffectivity Date~.~..~ I. CERTIFICATE OF COMPLIANCE . _

"O~l.IPP\~~<;, Subject: S~ect ~~

~ ~I_ APPLICATION an.d ASSESSMENT Page No.: 3 of '7

UI. DEFINITIONOF TERMS (Cont'd)

III'I

iI

.!

GenerationCompany


New GeneratingFacilities


NPC

PNOC-EDC

PSALM

- refers to any person or entity authorized by the ERGto operate facilities used in the generation ofelectricity.

- shall include (1) DOE-Accredited facility under BOTarrangement and other variants with N PC I N PC-SPUG, PNOC-EDC, NIA and other GovernmentAgencies; (2) DOE-Accredited facility under BOTarrangement and other variants with DistributionUtilities; (3) Non-DOE Accredited Facility undercontract with Distribution Utilities; (4) Self-GenerationFacility; and (5) Facility locating in Economic Zonesand Facility operating in isolated areas.

- shall include (1) Any newly-constructed facilityconnected to the Grid with appropriate hE:~alth,safetyand environmental clearances; (2) Any facilitycurrently under BOT arrangement and other variantswith NPC, NPC-SPUG, Pf\lOC-EDC and otherGovernnlent Agencies and Government-O'lvned andControlled Corporations; and (3) Any facility thatshan operate in an isolated area.

"- refer to new entities owning or operating one ormore Generating Facilities.

- National Power Corporation refers to the governmentcorporation created under Republic Act No. 6395, asamended.

- PNOC - Energy Development Corporation a whollyowned subsidiary of the Philippine National OilCompany, registered with the Securities andExchange Commission on March 05, 1976.

- Power Sector Assets and Liabilities ManagementCorporation or "PSALM Gorp." refers to thecorporation created pursuant to Section 49 of RA9136.

r-:\.ATO~~~ liCENSING and Mt\Ri{ET MONITORING --1SeaiQIlN~3=-1>~ '\ I MANUAL __ _ j3eYlslon No. 00 'j

I ~ ~ Section: ~_ffectiVitY Date: l~ ~ CERTIFICATE OF COMPLIANCE

'I:J r:t ------------ - _- 'If;LIPP\~ Subject: Subject No. 1L":- _APPLlC~ TION and ASSESSMENT ~f 7 ==:l

UL DEFINITiON OF TERMS (Cont'd)

PSALM appointed!PP Administrators



- refer to qualified independent entities appointed byPSALM, who shall administer, conserve and managethe contracted energy output of NPC IPP contractsincluding selling the contracted energy output ofthese contracts and offering ancillary services,where applicable.

- refers to a power Generation Facility owned andconstructed by an end-user for such end-user's o'v'Vnconsumption or internal use excluding generationfacilities for use by households, clinics, hospital andother medical facilities.

.. refers to the functional unit of NPC created to pursuernissjonary electrification functions.

IV. PROCEDUREDETAILS

BESPONS~EUl~TY

Clerk/ERG I, IIISERO


~

ReceiveDocuments .

See Nol1.: 1 &.2

PrepareAssessment

iNTERFACE

ExistinglNew/UnderConstructionGE NCO' s/F acilities,PSALM Appointed IPP Adm.

Existing/New/U nderConstruction GENCO's,PSALM Appointed IPP Adm.

IV. PROCEDUREDETAiLS

Clerk/EHO I, IIISERO, SupERO

Clerk/ERG I, IIISERG, SupERO

I PrepareLAssessment J

l See Note 1 &2

ForwardlTransmitthe Documents

~ See Note 3

8

~NTERFACE

Existing/New/UnderConstruction GENCO'ss,PSALM Appointed IPP Adm.

Division Chief

Note -I: a. coe application form/(s) are pre-numbered.b. Application form is made readily available to walk-in applicants in

hard copy, orin soft copy to be downloaded from the ERC \Nebsite.c. t\ll document requirements must be submitted in Ilard copy e,xcept

for IPP/GENCO appficant/(s), who may be required to submitadditional soft copy/(ies) of forms 1..7.

Note 2: a. For SGFs, the docurnentary requirements and application fees (newand renewal) are specified under the ,COC Application Fees andRequirement Matrix for SGFs.

b. For IPP applications, documentary requirements and applicationfees (new and renewal) will follow the coe Application Fees andRequirernent Matrix for IPP and GENCO's.


LICENSING and MAfU<ET MONITORING

---------------------_.

Section No. 3 ~Revision No. 00-'1Effectivity Date: l

j

Note 3: a. Prepare assessment form (in-house fonn) in five (5) copies applyingthe appropriate application fees per aggregate installed capacity pertype of applicant. Distribution of assessment form follows:a1. Two (2) copies - Cashiera2. Two (2) copies - LMMD (as attachment to applicant's file folder

and as file copy under assessment form folder)a3. One (1) copy - Applicant

b. Assign assessment number following the sequence:U LMMD-COC-APP-XXXX- XXXXX"

YEAR coot (e.g. 200JAPPLICATION NUMBER CODE (e.g. 000(1)

c. Forward Assessment form to SupERO and Division Chief for theirsignature.

d. Direct the applicant to pay assessment fee to the Cashier.8. Compare and ensure that the Official Receipt (OR) number reflected

in the assessment form correspond to the OR issued by the Cashier.f. Assessment number should correspond to the Application number.g. Assessment/application .numbers (for Head and Visayas and

Mindanao Field Office app.iicants ) are centralized in the Head Officeand sequentially fog in the logbook specified for such purpose.

Note 4: a. Attach paid assessment form to p"ppHcant's file folder.b. File extra copy to uAssessment Form" file folder.c. Forward Applicant's file folder to the Division Chief for

assignmenUdetegation to proper personnel .for the evaluationprocess.

V. REFERENCE:

Resolution No. 07, series of 2006, a Resolution Amending the Terms andConditions of the Certificate of Compliance Issued to EntitiesOwning Self-Generation Facilities Particularly Item NO.5 Thereof

Guidelines for the Issuance of Certificate of Compliance for GenerationCompanies/Facilities, as Amended

IPP/GENCO's coe Application Fees and Requirement MatrixSelf-Generating Facilities COC Application Fees and Requirement MatrixTerms and Conditions of the coeERC Schedule of Fees and Charges

- ~T-------------------'----'---'----------1 --'--r---6~~-;Of\'}- LICENSiNG and MARKET rt!lON~TOR;NG Se~tion No, L _

,f..v (>o~ MANUAL Revision No. 00>-. ; ---------------------------- ------------~ .~ Section: Effectivity Date:ul _

~ # CERT!FICATE OF COMPLIANCE°A~(rPP\~'2>. Subject: ----------------.--------- -Sub'aetNa. 1----

APPLlCATIOi\JandASSESSMENT Pa..e No.:7 of 7-

VI. RECOJ~[)S

'1. Assessment Farm file folders2. Applicants file 'folders with the following:

a. Form NO.1 - coe Application Formb. Form NO.2 - Company Profilec. Form No. 3- Three-year Operational History per Plantd. Form No. 4 - Affidavit of Compliance with the Philippine

Grid/Distribution Codee. Form NO.5 - Affidavit of Compliance with WESM Rulesf. Form NO.6 - Affidavit of Compliance with Cross Ownership and

Market Share Restrictiong. Form NO.7 - General Plant Descriptionh. And other documentary requirements as stated in the coe

application fees and documentary requirements matrix3. Control Number (assessment/application) Logbook

PARTICULARS

IPP regardless of installedca acity

Generation CompaniesOperational as ofJune 26, 2001

APPLICATION FEES andDOCUMENTARY REQUIREMENTS

Php 10,000.00

L Fonm No. 1 to 7

IL Financial Requirementsi. Audited Financial Statements for the two (2) most

recent 12-month periods, jf available;2. SchedH~e of Liabilities, to include the following

information: name of creditor, type of credit, creditterms;

3. Five (5) year Financial Plan; and4. Documentation on Financial Track Record of the

G,eneration COITIpany and of its principalstockholder; if available.

III. Ownership/Control1. Articles of Incorporation/Partnership (for

Corporation! Partnership) with Certificate ofRegistration;

2. Business Name Registration Certificate (forSingie Proprietorship);

3.. Updated Listing of Shareholders andcorresponding equity shares;

4. Complete List of its Board of Directors and SeniorOfficials down to the level of Plant Managers;

5. Types of Long Term Debt and Equity Instrument,including amount and proportion to totalcapitalization;

6. Sworn Statement that the Company complieswith and will continue to comply with theprovisions on cross ownership and market sharerestrictions under RA No. 9136, its ImplementingRules and Regutations and the Guidelines forIssuance of Certificates of Compliance forGenerationCompanies/F acilities for the durationof the COC;

7. Comprehensive and complete listing of Affiliatesand Related Groups, including ownership andmanagement structure; and

8. PSE Certi'ficate to the effect that they are listedwith PSE, when applicable.

PARTICULARS

Generation CornpaniesOperational after June 26,2001

iV.

v.

VL

DOCUMEN'TARY REQUIREMENTS ~Other Requirements --~9. Power Purchase Agreements;2. Power Supply Contracts;3. Memorandum of Agreement on the Establishment

of Trust Accounts by the Generation Companyand/or the Energy Resource Developer and theDepartrnent of Energy on Benefits to HostCommunities as required under Rule 29 of the\RH~and

4. Environmental Compliance Certificate (ECC) dulyapproved by the Department of Environment andNatural Resources.

DOE Endorsement indicating that the power plantproject is consistent with the. Power DevelopmentProgram of the government; andSuch other information or document that ERC mayrequire.

--_._ ..__ ._--'-----_.~._--_. __ ._-_ ..--_._-_._-------_.---------_ .._ ....__ ._--- .._--------_.APPLICATION FEES and

DOCUMENTARYPhp 1,500.00

2. Application Form (CDC Form NO.1)3. Company Profile (COe Form NO.2) _

Php 5,000.001. Application Form (COe Form NO.1)

___,_~:-9ompanyProfile (Cae Form NO.2)Php7,500.00

1. Application Form (COe Form NO.1)2. Company Profile (COe FormN0d _

Php 10,000.001. AppHcation Form (COe Form NO.1)2. Company ProfBe (COe Form NO.2)3. Three:-Year Operationai History (COC Form NO.3)4. SEC Registration5. General Information Sheet (SEC Form)

__ ~OE/NPC Certificate of Accreditation, if a ,licable

Glr~~tI)

AGGREGATEINSTALLED CAPACITY

100 KW and Betow

101-500 KW

501-999 K;vV

1 MW and Above

Sub. ect No.2Page No.: 1 of 8INSPECTION---_._---------

'I LICENSING and MARKET MONITORING IS-e-c-ti-on-No. 3MANUAL r-Revision No. 00------------_._-------

I Section: Effectivity Date:CERTIFIC,ATE OF COMPLIANCE

Subject

I. POLICY

All IPPs applications for Certificate of Compliance (COG) received by theEnergy Regulatory Commission (ERC) shall be inspected in accordancewith the listed parameters specified in the inspection checklist in order toensure compliance with the requirements of the Philippine Grid Code,Philippine Distribution Code and the coe Guidelines.

u. POLICY GU;DELINES

1. Only applications with the corresponding payments having been made,shall be processed and subsequently inspected, if so required.

2. Without unnecessary delay, an inspection of the vital systems andcritical components of the plant including the determination of theheat/steam rates, capability, efficiency, safety and reliability asapplicable will be conducted on all applicants, to provide assurance thatthe generating facility is in compliance with the COC guidelines.

3. Ocular inspection of SGF (with an aggregate capacity of 1 MW andabove) application/(s), located in the Visayas and Mindanao regionsshall be conducted by the respective Field Offices.

4. A pro-forma checklist for each type of generation facilities shall beprovided to serve as a working reference and established as adocumentary evidence of the verification and inspection processperformed. The pro-forma checklist will form pai1 of the EvaluationReport subsequent to the inspection process.

5. Every first week of the month, the Field Offices shall forward to theCentral Office a monthly report on the list of applications filed by Entitieswith SGF (in hard and soft copies).

6. A minimum of one (1) day and a maximum of five (5) days for inspectionactivity/(ies) shall be allowed.

7. All expenses relative to the inspection activities shall be shoulderedeither by the Generation Companies, SGFs, and lorSupplier/(s )/Owner/( s).

8. The Commission shall only reimburse the per diem of meal andincidental expenses or a total of 500/0 on the allowable travel expensesindicated in EO 298 or the ERC Guidelines on Travel.

~ .

INSPECTION

~----~----_._-------------

Il~CENSING and MARKET MONITORINGlj\..A.TOlfr

~? °0 MANUAL;...'<' ~

ffi ~ Section: CERTIFICATE OF COMPLIANCE~ ~ Subject:

oJOflJl.lPPl~ •

m. DEFINITION OF TERMS

Section No. 3 ~Revision No. 00-1Effectivit Date:

_J?ubject ~~_~_. .Pa e No.: 2 of 8

BOT

Certificate ofCompliance (COC)

Economic Zones

built-operate-transfer agreement

- license issued by the ERC to a GenerationCompanyl (ies)IFacHities certifying that it conforms tothe qualification requirements and procedures dulystipulated in the Amended Guidelines for theissuance of coe dated June 26,2002.

- refer to selected areas which are highly developed orhave the potentital to be developed into agro-industrial, industrial, tourist,- recreational,commercial, banking, investment and financialcenters, including but not limited to the following:Industrial Estates, Export Processing Zones, FreeTrade Zones, Information Technology Parks andTourist/Recreational Centers, the Bases ConversionDevelopment Authority, Cagayan Economic ZoneAuthority, Clark Development Corporation, PhilippineEconomic Zone Authority, Phividec IndustrialAuthority and Zamboanga City Economic ZoneAuthority.


shaHinclude (1) Spin-off Facilities of NPC or theirtransferees, including Generating Facilities orGeneration Companies owned by NPC transferred toPSALM and subsequently privatized pursuant to RA9136; (2) Agus and Pulangui Complexes;(3) Facilities owned and operated by NPC-SPUG;(4) Accredited facilities under BOT arrangement andother variants with NPC, NPC-SPUG, NEA, PNOC-EDC and other Government Agencies;(5) Accredited facilities under BOT arrangement andother variant with Distribution Utilities; (6) Facilitiesowned or operated by a Distribution Utility;(7) Generation Companies/Facilities under contractwith a Distribution Utility; (8) Self-GenerationFacilties; (9) Facilities operating in Economic Zones;and (10) Facility operating in isoiated areas.

GenerationCompany

- refers to any person or entity authorized by ERC tooperate facilities used in the generation of electricity.

I LiCENSING and MARKET MONfTORINGI MANUAL[Section: CERTIFICATE OF COMPLIANCESubject:

INSPECTION

Section NO.3Revision No. 00Effectivit Date:Subject No._~ _Pa e No.: 3 of 8

!II. DEFIN~TIONOF TERMS (Cont'd)

GenerationFacility

GeneratingFaGilities underConstruction



NPC

PNOC-EDC

PSALM

- refers to a facility for the production of electricity.

- shall include (1) DOE-Accredited facility under BOTarrangement and other variants with NPC, NPC-SPUG, PNOC-EDC, NIA and other GovernmentAgencies; (2) DOE-Accredited facility under BOTarrangement and other variants with DistributionUtilities; (3) Non-DOE Accredited Facility undercontract with Distribution Utilities; (4) Self-GenerationFacility; and (5) Facility locating in Economic Zones.~nd FacHity operating in isolated areas.

- shall include (1) Any newly-constructed facility con-nected to the Grid with appropriate health, safetyand environmental clearances; (2) Any facilitycurrently under BOT arrange.ment and other variantswith NPC, NPC-SPUG, PI\JOC-EDC and otherGovernment Agencies and Government-Owned andControlled Corporations; and (3) Any facility thatshaH operate in an isolated area.

- refer to new entities owning or operating one ormore Generating Facilities.

- National Power Corporation refers to the governmentcorporation created under Republic Act No. 6395, asamended.

- PNOC - Energy Development Corporation a whollyowned subsidiary of the Philippine National OilCompany, registered with the Securities andExchange Commission (SEC) on March 05,1976.

- Power Sector Assets and Liabilities ManagementCorporation or uPSALM Corp." refers to thecorporation created pursuant to Section 49 of RA.9136.


I Section: CERTIFICATE OF COMPLIANCESubject:

INSPECTION

Section NO.3Revision No. 00Effectivit Date:~~bi~ct NO.2 _Pa e No.: 4 of 8

Ut DEF~NIT10NOF TERMS (Cont'd)




- refer to qualified independent entities appointed byPSALM, who shall administer! conserve andmanaged the contracted energy output of NPC IPPcontracts including selling the contracted energyoutput of these contracts and offering ancillaryservices, where applicable.

- refers to a power Generation Facility owned andconstructed by an end-user for such end-user's ownconsumption or internal use excluding generationfacilities for use by households, clinics, hospital andot'hermedical facilities.

- refers to the functional unit of NPC created to pursuemissionary electrification function.


RESPONSIBILITY ACTION INTERFACE

Clerk/ERG I, II,SERG, SupERO


Pre-Planning andTravel

Preparation

See Note 1-2

Inspection

See Note 3 .-6

Existing/New/UnderConstruction GENCO's,!SGF Facilities Owner/(s)/DC/OIC, Director, OED

Existing/New/UnderConstruction GENCO's,!SGF Facilities Owner/(s)

,j\-&>.TOrry --r- l~CENS~NG and MARKET' MONI1"OR~NG~~ ~~ I MANUAL

g_ ) I Section: CERTIFICATE OF COMPLIAN-CE~. ~ lsubject:

'..o,LJIl.IPPl~lC? INSPECTION

v. PROCEDURE DlETAILS(Cont'd)

Section NO.3 -,Revision No. 00 --1EffectivityDate:~Subject No. 2 ~Pa--eNo.: -'5-of 8----------']

RESPONSIBILITY


Travel Back toERC Central

Office

SeeNote 7 - g

INTERFACE

Division Chief/OICDirector - MOSOED

Note 1: a. Prepare Inspection Letter, Travel Order, and Proposed Itinerary ofTravel (IT) Form for initial/signature of the Division Chief and finalapproval/signature of the Director and the Office of the ExecutiveDirector (OED) as the case may be.

b. Prepare specific inspection checklist, company profile and otherrecords submitted by the applicant.

c. Review the electrical one line diagram, flow diagram, technicalspecification, nameplate ratings, etc. supplied by the applicant, ifany.

d. Confirm the following from the applicant/(s):d1. Transportation requirementsd2. Number andl\lame of Inspection Team Members-maximum of

two (2) employeesd3. Date of Inspection and Orientation (power point) Scheduled4. Accommodation Detailsd5. List of Documents/Records for submission

Note 2: Only IPP facilities are to undergo inspection process.

Section NO.3 1Revision No. 00 .,Effectivit Date:

__~~jes_t NO.2 _Pa e No.: 60f 8


CERTIFICATE OF COMPLIANCE

INSPECTION

ISection:Subject:

Note 3: a. A General and Administrative Checklist are provided for all types ofPlant consisting of two (2) parts:

CHECKLISTREFERENCE NO. PARTICULARS APPLICATION

iM-LM-01-IC-A (Page 1 of2) Ptant Management For all types of PlantsIM-LM-01-IC-A (Page 2 of 2) Plant Documents For Power Plants onlyIM-LM-01-IC-A (SGF) (Page 2 of 2) Plant Documents ForSGF only

b. A specific technical checklist and guideline is provided for each typeof Power Plant inspection only:

CHECKLIST GUIDELINE NO.POWER PLANT REFERENCE NO. REFERENCE NO.

Bio-l\7Iass BM-IC-01 iM-LM-BM-GL-O 1Combined Cycle CC-IC-03 IM-LM-CC-GL-03Coal-Fired Thermal CF-iC-04 IM-LM-CF-GL-04---------------- -- -------------Co-Generation CG-IC-11 IM-LM-IC-GL-11Diesel DE-IC-02 IM-LM-DE-GL-02Geothermal GO-IC-OS IM-LM-GO-GL-05Hydro Electric HE-IC-D6 A IM-LM-HE-GL-06APump-Storage-Hydro HE-le-D6 B IM-LM-HE-GL-06 BOil-Fired Therma! OF-Ie-O? IM-LM-IC-GL-07Simple Cycle Gas Se-iC-D8 IM-LM-SC-GL-08-- -- -------------Solar SO-IC-09 IM-LM-SO-GL-09Wind WI-IC-i0 IM-LM-WI-GL-10

Use one (1) checklist per each unit of power plant equipment beinginspected. A Definition of Terms for common understanding of thetechnical terminology used in the checklist is attached for reference.

Note 4: Attend/Conduct pre-inspectionmeeting/orientation prior to inspectionproper/tour of the plant/facilities. During this meeting remindapplicar:rtl(s) of any document requirements for submission.

Note 5: During inspection, verify proof of operability and cross-refer items on thechecklist with on-site verification as follows:a. Verify function test done or performance test done on the whole

unit of the plant;b. Scrutinize station logs, operating sheets, area operations logbook;c. Ascertain safety and reliability of facHity/(ies), equipment/(s);d. Consider age and condition deterioration of items being inspected.

Section No. 3Revision No. 00

~~~~~i~_~~~~ ~Page No.: 7 of 8INSPECTION

LICENSiNG and MARKET MONITORINGMANUAL

------CERTIFICATE OF COMPLIANCE

II Section:

Subject:

Note 6: Conduct post-.inspection meeting to thresh out questions (if any) andhave the OwnerlManager of the Host Plant/Facility initial/sign theInspection Checklist prior to conclusion of the inspection activity.

Note 7: Upon return from travel (within thirty (30) days), the employee mustliquidate the .advance taken as per proposed IT by accomplishing anActual IT and the Liquidation Report These liquidation documents areto be forwarded for checking by the Division Chief of the LMMD or theOIC of the Visayas and Mindanao Field Offices to be duly noted by theDirector of the Service and approved by the OED.

All liquidation of actual travel through the Actual IT MUST ALWAYS besupported by a Liquidation Report, checked by the Division Chief,noted by the Director of the Service or OIC of the Visayas andMindanao Field Offices and approved by the OED.

Note 8: Every first week of the month, the Central Office is expected to receivea mont~ly report from the Visayas and Mindanao Field Offices regardingthe number and detaIls of coe appHcations filed by various entities withSGFin soft and hard copies following the attached format:

Annex A: MONTHLY REPORT~------- --._-~- _._----------,-------."---- --------r---------- ------~----_._,- ---_._--- --------- ~-

DATEYEARS UNE NO. AGGREGATE APPliED/PAIDI

OF OFI

OF INSTALLED RELIABLE OPERATION COMPLETEDAPPLICANT SERVICE BUSINESS LOCATjQN UNITS CAPA-e~TY CAPACJTY FUEL MODE DOCS1.

2.

v. REFERENCE:

Executive Order 298 and ERC Guidelines per Office Order No. xxxxxxMOS Memo dated April 04, 2005 Re: Delineation of Work Concerning

Certificate of Compliance between Central and Field OfficePower. Plant Inspection Manual prepared by Bataan Services andTechnology Corporation approved by EFSamonte

II

, I

II LICENSING and MARKET MON~TORiNGMANUAL--------

Section: CERTIFICATE OF COMPLIANCESubject:

EVALUATION

--~ Section No. 3 ~Revision No. 00Effectivity Date:Subject NO.3

-----_._-----_._-- .. -.1

Page No.: 1 of 7 ~

Ie POLICY

All applications for Certificate of Compliance (COC) shall be issued anEvaluation Report compiled as a result of research inspection and analysisof data and of issues.

U. POLICY GUIDELINES

1. Without unnecessary delay, an Evaluation Report sl1all be submittedwithin ten (10) working days after return to permanent o'fficiai stationand within three (3) working days if no inspection is required. For theVisayas and Mindanao Field Offices, an electronic copy of the draftEvaluation Report shaH be transmitted to the Central Office, whileawaiting the receipt of the complete set of Evaluation Report and theApplicant's folder through the mail.

.'J

2. The Evaluation Report of the Visayas and Mindanao Field Offices forthe Sel'f-Generating FaciHty/(ies) (SGF) complete with the requiredattachments, should be received by the Central Office not more thanfifteen (15) days to provide lead time for mailing.

3. All Evaluation Reports shall be accompanied by a signed InspectionChecklist/(s).

4. A pro-forma Evaluation Report for each type of GenerationCompany/(ies) (Genco), Independent Power Producer/(s) (IPP) andSGF Facilities shall be provided for uniformity.

~

/' II Evaluation Re.ports for eXiS.ting IPP (existing without issue) and SGFFacilities (new and existing) shall be endorsed to the Office of theChairman and CEO through the Office of the Executive Director (OED)for the Chairman's approval and signature.

6. All Evaluation Report for IPP (existing and new) with issue/(s) shall beendorsed to the Commission en Bane through the OED for deliberationand approva I. . .

.- - , .• ,1

';;l'jh.\~;;;~.~~t:;;'ii~1'

" •....... ~, ,

d~

~TOl\'r-1 LICENSING and MARKET l\!iONITOR~NG,I ,tf<3v

.,,\ I MANUAL>-. ;~ -~ Section: CERTIFICATE OF COMPLIANCEul _ _ _

~ ~ Subject:.,.ofO£.IP?I~~. EVALUATION

HI. DEFINITION OF TERMS

Section NO.3-IRevision--N-o-.-O-o-----lEffectivit Date:

_~ubje_ct ~g~~ _Pa e No.: 2 of 7

Evaluation Report - outcome of the inspection activity and review offinancial qualification/(s) with the end-rn-view ofissuance of COCo


Debt Service

DSCR

EBIT

- license issued to a Generation Company/(ies) IFacilities certifying that it conforms to thequalification requirements and procedures dulystipulated in the Amended Guidelines for theIssuance of coe dated June 26, 2002.

- aggregate annual amount of debt repayments(including lease obHgat;ions under power purchaseagreements and sinking fund payments, if any) andinterest and other charges on debt, includingcapitalized interest during construction on loans forcapital expenditures.

- Debt Service Coverage Ratio or Interest Cover Ratiois the measure of the GENCO's ability to fulfill itsdebt obligations; computed in 2 ways: (1) ratio ofCash Flow From Operations after Taxes to DebtService, and (2) ratio of Earnings before Interest andTaxes (EBIT) plus depreciation to debt service. Forpurposes of computing this ratio, Cash Flow fromOperations After Taxes shaH be derived from theaudited financial statements and shall excludeinterest received and interest paid. Amortizationexpenses shall also be treated similarly todepreciation.

- Earnings Before Interest and Taxes - equal torevenues less expenses from the GENCO's principalbusiness activities; is identical to income fromoperations as determined under Philippine GenerallyAccepted Accounting Principles.

Existing Generation-Companies

shaUinclude (1) Spin-off Facitities of NPC or theirtransferees, including Generating Facilities orGeneration Companies owned by NPC transferred toPSALM and subsequently privatized pursuant to RA9136; (2) Agus and Pulangui Complexes;(3) Facilities owned and operated by NPC-SPUG;.

LiCENSING and MARKET MONiTORING Section No. 3MANUAL Revision No. 00

-----

Section: _~ERTiFICATE OF COMPLIANCE OJ Effectivity Date: II

Subject: . L~1ect No.3EVALUATION _~NO.:3Of7---j

III. DEF~NITIONOF TERMS (Cont'd)

Existing Generation - (4) Accredited facilities under BOT arrangementCompanies and other variants with NPC, NPC-SPUG, NEA, PNOC-EDC and other GovernmentAgencies; (5) Accredited facilities under BOTarrangement and other variant with DistributionUtilities; (6) Companies Facilities owned or operatedby a Distribution Utility; (7) GenerationCompanies/Facilities under contract with a.Distribution Utility; (8) Self-Generation Facilties;(9) Facilities operating in Economic Zones; and(10) Facmty operating in isolated areas.

GenerationCompany

GenerationFacility



OED

MOS Director


- refers to any person or entity authorized by ERG tooperate facilities used in the generation of electricity.

- refers to afaciHty for the production of electricity.

- shall include (1) Any newly-constructed facility con-nected to the Grid with appropriate health, safetyand environmental clearances; (2) Any facilitycurrently under BOT arrangement and other variantswith NPC, NPC-SPUG, PNOC-EDC and otherGovernment Agencies and Government-Owned andControlled Corporations; and (3) Any facility thatshall operate in an isolated area.

refer to new entities owning or operating one ormore Generating Facilities after June 26,2001.

- Office of the Executive Director

- Director of.Market Operations Service

- refers to a power Generation Facility owned andconstructed by an end-user for such end-users ownconsumption or internal use excluding generationfacilities for use by households, clinics, hospital andother medical facilities.

lICENS!NG and MARKET MON;rORINGMANUAL

ISectio. n-: ---cERTIFICATE OF COMELIANCESubject:

EVALUATION._----

Section No. 3 _--jRevision No. 00 ~

~~~~~~i~~~te:_ jPa e No.: 4 of 7

iVa PROCEDURE DETAILS

RESPONSIBILITY

Clerk/ERO I, .111SERO

Clerk/ERG I, IIISERO

ACT~ON

Consolidatedocuments,

observation andissues

See Note 1 - 2

Report Writing

See Note 3 - 7

INTERFACE

Clerk/ERO I, IIISERO

Division Chief

MOS Director

--~Forward Draft ERfor

Review/Revision

~ See Note 8 - 9

Forward Pre-FinalER for

Review/Revision/Approval

See Note 10

Revise! Approve!Presentation toCommission for

Approval

See Note 11

SupERODivision Chief

MOS Director

Division Chief/ClerklOED!Commission en Bane

l~CIENSING and MARKET MONITORJNGMANUAL

----Section: CERTIFICATE OF COMPLIANCE----Subject:

EVALUATION

~lionNO. 3 ~Revision No. ~ -lEffectivity Date:

___Subject NO.3Pa e No.: 5 of 7

I'i-i:..

Note 1: Ensure that all documents submitted by the applicantJ(s) are filed undera single folder for easy reference. Filing of documents should follow thesequence of activity conducted, wherein the latesUmost recent activitydone and its documentation should be placed on top of the file.

Note 2: Summarize all observations, issues and non-compliance duringinspection activity on thelnspection/Monitoring Summary Report andNon-Compliance Report (NCR) Form- Major/Minor, to form part of thetop sheet of the corresponding checklist form.

Note 3: Sections of the Evaluation Report foHows:

I -PARTICULARS IPP & GENCOs' SGFs' 1 MW ABOVE

1. Action Requested v v---------------------------------------------------- r------------------ -------_._-------2. Background v v3. Evaluation

a. Company Profile v vb. Financial Qualification v -c. Three (3) Year Operational History - vd. DOE Certificates of EndorsemenU I v v

Environmental Compliance CertificatelOther Licenses/Permits/Documents

e. Memorandum of Agreement -_Trust Account v -4. Technical Inspection Report

a. Compliance with Cross Ownership and v -Market Share Limitation

b. Compliance with Philippine Grid and v -Distribution Code

c. Compliance with\tVESM v -d. General Plant Description v -e. Connection Agreement with TRANSCO/NPC v -f. Safety Rules/Guidelines v -Q. Company Presentation v -h. Ocular Inspection d v L -

I

i. Observations/Findings v -5. Recommendation v v

Note 4: The Action Requested portion of the Report should highlight whetherGENCO is operational as of June 26, 2001 or operational after June 26,2001.

Note 5: The Background portion of the Evaluation Report should always indicatethe date of filing for COC, the date of inspection and the completenessof the documents requirements submitted, among others.

LICENSING and MARKET iVlONITORINGMANUAL

Section: CERTIFICATE OF COMPLIANCESubject:

EVALUATION

~ction NO.3Revision No. 00Effectivit Date:Subl~ct N()-=_~ "Pa e No.: 6 of 7

Note 6: 8. The financial qualification for IPPslGencos should highlight the DebtService Coverage Ralio (OSCR) using two (2) methods:

a. Method 1: Cash Flows from operations after taxesb. Method 2: EBIT plus depreciation and amortization

b. Pursuant to 2.1.1 Article II of the Guidelines for the FinancialStandards .of Generation Companies (GENCOs) datedApril 13, 2005, a GENCO is required to meet a minimum annualinterest Cover Ratio or DSCR of 1.5x throughout the period coveredby its COCo For the National Power Corporation, the DSCR shouldbe 1.0x throughout the period covered for its COCo

Note 7: The Evaluation Report shall be prepared by the inspection team.

Note 8: The Applicant's Folder complete with all the documentary submissionsshall be attached to the draft Evaluation Report (hard and soft copy),submitted for review to the Supervising ERO (SupERO) or DivisionChief.

Note 9: The review period should be limited toa maximum of two (2) days uponreceipt of the EvaIuat~on Report

Note 10: 8. The applicant's folder shall be fOr"Narded to the inspection team fortemporary safekeeping, while awaiting the final/signed copy of theEvaluation Report to form part of the applicanfs file folder.

b. All revision/corrections on the draft Evaluation Report shall beprepared by the writer of the Report and thereafter shall transmit tothe Supervising ERG) Division Chief for review and properdisposition.

Note 11: All approved/signed Evaluation Report (either existing, new, or withissues) should be forwarded/transmitted to the Office of the ExecutiveDirector for proper disposition.

Note 12: The licensing and Market Monitoring Division staff who conducted theinspection/Division Chief/Director shall carry out the presentation of theapplications for coe which need the approval of the Commission enBane.

I~\..ATOli'y I LICENSING and MARKET MONITORING

~0 ~~ MANUALI ~ _ ~ hSec-tio-n-: -C-E-'R-T-IFiCATE OF COMPLIANCE

~ ~o Subject:.,oftll.IPP1~'l:.S. EVALUATION

---------.-

v. REFERENCE:

Section No. 3Revision No. 00Effectivit Date:Supj~_ct __N<2.~~_. _Pa e No.: 7 of 7

Amended Guidelines for the Issuance of Certificate of Compliance forGeneration Companies/Facilities as Amended dated June 26,2002

Guidelines for the Financial Standards of Generation Companies(GENCOs) dated April 13, 2005

VI. RECORDS

1. Applicants File Folders2. Original/Reproduced copy of the Evaluation Report

LICENSING and MARKET MONITORING --rsect. ion No.3. ~MANUAL IRevision No. 00 1

Section: Effectivity Date:CERTIFICATE OF COMPLIANCE

Subject: Subject NO.4PRINTING Page No.: 1 of 4._------

t POl~CY

The Certificate of Compliance (COG) issued by the Commission hasuniform physical dimensions measuring 215.9 mmlong by 279.4 mm wideand 17 microns thick.

u. POLICY GUiDELINES

1. Without" unnecessary delay or a maximum of one (1) day, a eoe shallbe printed upon receipt of the approved Evaluation Report from theappropriate approving authority.

2. Tile Licensing Division and Market Monitoring Division shall keep stockof the parchment paper (110 gsm - Pergamenata Blanco- size 8 %" x11", a 2 x 0 paper stock wi security feature - ERG Logo using invisibleink) in a safety cabinet with lock and key for security purposes.

3. A reorder is to be implemented as the stock level reaches 250 piecespaper stock.

4. Printing of coe is restricted to the Clerk of the Division and one (1)alternate staff.

IU. DEF!NITiON OF TERMS

Certificate of -~Iicense issued to a Generation Company/(ies) ICompliance (GOC) Facilities certifying that it conforms to the

qualification requirements and procedures dulystipulated in the Amended Guidelines for theIssuance of coe dated June 26, 2002.

MOS Director

OED

- Director of Market Operations Service

- Office of the Executive Director

LICENSING and MARKET MONITORiNGMANUAL

Section:CERTIFICATE OF COMPLIANCE

SubjectPRINTING


Sub 'ect NO.4Pa e No,: 2 of 4

IV. PROCEDUREDETAILS

RESPONSIBilITY ACTION

Clerk IReCeiVedapproved ER

See Note 1

INTERFACE

Office of the Chairman/CEOOffice of the GeneralCounselMOS Director/Division Chief

Division Chief

Clerk III

Division ChieflSupERO

Assign eoenumber

See Note 2

Print coe

SeeNote 3

Review andApprove

See Note 4

Clerk III

SupEROIDivision Chief

MOS Director

J

LICENSING and MARK.ET MONITORINGMANUAL1 _

~ection:CERTIFICATE OF COMPLIANCE

Subject:PRiNTING



~I-I

Note 1: For IPP's application, the copy o'f the Approved Minutes of theCommission's Meeting relative to the coe application shall form part ofthe applicant's file folder.

Note 2: a. Assign GOC number and input specific details (name of applicant,type of facilities, capacity and years of service) of the approvedEvaluation Report in the COG-Tracking System (COC- T8).

b. Forward diskette to Clerk III for printing coe and uploading to aseparate ExCel File Database in the Clerk-In-Ctlarge's computer.This Excel File Database is dedicated solely for the printing of theCertificate

Note 3: a. Update the corresponding Excel File Database by inputting the"Location" of the approved applicant's facilities.

b. Print eoe through the selected mail merge facility (1. FormatPrinting Facility-GencoIlPP; 2. Format Printing Facility-SGF) utilizingthe pre-printed security paper.

c. SiQl~U:-aiRe8~6f'Y'c:;'Jfi~nt~c;cmerf)Q,,'?tHUJ~ttal- formatted (2 copies) toa~~~~oa~e"a~proving ~ulnonty--asltl1~ws:y QiQ, ~..for~SeA~..G,enef.ationFaeii'ities~ Commission en Bane - for Generation Facilities and Independent

Power Producer's FacilitiesThe second copy is to be retained in the applicant folder for controlpurpose.

d. Forward coe and memo transmittal to the Division Chief for reviewand initial.

Note 4: FGflMJ~f,Q~",t.e",the--e#iee:-ofth€LM0S-DjreGt-of'f'Of ..approval and siynatur~tii~~~~~a4eQ',GOPY.cQf-t-tle-ffiemo-.transmittaJ..Qj.,tba .,.CQSv~,J,}(j.tr:ansmi4ted1;g,octbg.a.J)P,t:QcR,[iate,appr:ovif}g-aut-hority: f{)r signatur-e as foUCiws:a. IPP - Commission en Bancb~..r£GF~,{)ffice{}.f-cthe- Executi've~i)jfe-e~r

The Service Secretary shall be responsible for the transmittal of theeoe with the corresponding memorandum to the appropriate approvingauthority.

I LICENSING and IViARKET MONITOR~NG Section No. 3I MANUAL Revision No. 00I Section: Effectivity Date:

CERTIFICATE OF COMPLIANCESubject: Subiect NO.4

I PRINTJi'JG Page No.: 4 of 4

v. REFERENCE:

Amended Guidelines for the Issuance of Certificate of Compliance forGeneration CompanieslFacilities as Amended dated June 26,2002

Guidelines for the Financial Standards of Generation Companies(GENCOs) dated April 13, 2005

VI. RECORDS

1. Applicants file fold~rs2. Origin?I/Reproduced copy of the Evaluation Report

ING and MARKET MONITORING Section NO.3MANUAL Revision No. 00

ERTIFICATE OF COMPLIANCE Effectivity Date:ISSUANCE OF Subject NO.5------_._-_._-_._--_ .._---., ..

ERTIFICATE OF COMPLIANCE Page No.: 1 of 4C

LICENS

Section: CSubject:

I. POLICY

A Certificate of Compliance shall be issued within sixty (60) working daysfrom the date of application, provided all the requirements shall have beencomplied with, to stipulate all obligations mandated by the applicablelaw/(s) and all operating guidelines that the Commission may establishwhich are inspected shall be issued an Evaluation Report compiled as aresult of research inspection and analysis of data and of issues.

u. POLICY GUID,ELINES

1. Without unnecessary delay or a maximum of one (1) day after signing ofthe COC by the appropriate app~oving authority, a Notice of Approval tobe signed by the Office of the Executive Director shall be mailed toinform the applicant that the cae is available for pick up.

2. It is preferable for applicanU(s) to personaHy pick-up the coe in theCentral Office. However, should the applicant deem it otherwise, aletter of intent shall be required prior to maiiing of the COCo

3. The COC shall only be released to an authorized representative uponreceipt of the' letter of authorization signed by thePresident/Chairman/CEO or any duly authorized representativecorresponding to the name/(s) indicated in Application Form NO.1.

III. DEFINITIONOFTERMS

Certificate of . - license issued to a Generation Company/(ies) ICompliance(COC) Facilities certifying that it conforms to tile

qualification requirements and procedures dulystipulated in the Amended Guidelines for theIssuance of COC dated June 26, 2002.

OED - Office of the Executive Director

MOS Director - Director of Market Operations Service

!

. LICENSING and MARKET MONITORING(;)u\..ATO,?y~ ~ MANUALg .~ ~._e__ct_io_n_: C_ERTIFICATE OF COMPLIANCE~. ." I Subject: ISSUANCE OF

,<)~l.IPPn«-'=' CERTIFICATE OF COMPLIANCE

IV. PROCEDURE DETA~LS

Section NO.3Revision No. 00Effectivit Dated: .Subject ~o. 5 _Page No.: 2 of 4

RESPONSIBiliTY

Clerk

Division Chi.ef/SupERO

Clerk

Clerk/ERO 11111SERO

ACTION

Print Notice ofApproval of eoe

See Note 1

Review, Approveand Transmittal

See Note 2

Release/Mail ofeoe

LSee Note 3

File

INTERFACE'

SupERODivision Chief

MOS Director!OED

ApplicantJ(s)

Note 1: a. Prepare a Notice of Approval for the signature of the OED, uponreceipt of the signed COC from the Division Chief

b. Ensure that the signed COC are kept in a cabinet with lock and key.c. Reproduce a copy of the coe for file, and ensure that the coe

number is indicated on the upper right hand corner of the approvedEvaluation Report for reference.

r/>,}\..~TORr I LICE

~6 °0~ ~

l,)..;----

ffi ~ I Section:~. .;~ I Subject:

,<)flJl.lPP~____ .-L

NSING and MARKET MONITORING Section No. 3

IMANUAL Revision No. 00CERTIFICATE OF COMPLIANCE Effectivity Date:

ISSUANCE OF Subject No. 5CERTIFICATE OF COMPLIANCE Page No.: 3 of 4

Note 2: Review and forvvard the Notice of Approval to the MOS Director andOED for approval and signature. The Secretary of the Service isresponsible for the transmittal and control of any outgoing documents.

Note 3: I. coe for Pick-Up:a. Ensure that the recipient is the applicant/authorized

representative.b. Ensure that the recipient signs the coe Release Logbook upon

receipt of the coe.H. COC for Mail:

a. Ensure that a letter request for mailing is received prior to mailingof the COCo

b. Ensure that two (2) extra copies of the coe are attached to theoriginal copy of coe prior to transmittal to the Records Section.This is in compliance with the requirement of the RecordsSection for mailing of outgoing documents.

c. Ensure that the appropriate mailing envelope/(s) complete withthe name and address of the addressee in the prescribed ERCtemplate is likewise attached to the coe prior to transmittal toRecords Section

d. Use mail merge facility for the printing of Notice of Approval ofcoe and the corresponding envelope for applicant/(s).

e. Log to appropriate logbook the transmittal of the COC to theRecords Section for mailing.

Note 4: a. Ensure that all documents necessary in the processing of the coeare attached and consolidated in one (1) file folder, properly labeled

b. Ensure that the Return Card for COCs that are mailed areattached/filed to the appropriate folder/(s).

C. Ensure that the processed applications are inputted in thecorresponding data base file for consolidation to the coe TrackingSystem (CTS).

v. REFERENCE:

Records Section Manual

lICENSING and MARKET MONITORINGMANUAL--

Section: CERTIFICATE OF COMPLIANCESubject: iSSUANCE OF

CERTIFICATE OF COMPLIANCE- --

Section No. 3Revision No. 00Effectivit Date:

_~_u~jectJio. 5 __ . _Page No.: 4 o'fL_

VI-RECORDS

1. Notice of Approval of coe2. Applicant's Letter Request for Mailing of coe3. Return Card for COC sent through mail.4. coe Relea.se Logbook5. coe Tracking Systems Report

LICENS~NG and MARKET MONITORINGMANUAL

Section: MONITORINGSubject------

GENERAL POLICY

Section No. 4Revision No. 00

4 Effectivity Date:.Subj~ct No.J .".Pa e No: 1 of 1

Policy Statement

Inherent under Section 6 of Ule Republic Act. No. 9136, Section 4- (m) of Rule3 and Rule 5 of its Implementing Rules, the Commission is empower tomonitor all generation companies to conform to the obligations, cross-ownership and market restrictions relative to the terms and conditions of theCertificate of Compliance.

LICENS~NG and MARKET MONITORING:I MANUALSection:

MONITORiNG.Subject:

FINANCIAL STANDARDS

I. POLICY

Section NO.4Revision No. 00Effectivity Date:

Sub'ect NO.2Page No.: 1 ~f 8

=l'I-I

\

Only Generation Companies (GenCos) with COC. shall be monttoIed_i.Qems ofrinanclat capaDilfty-st~aras set by tile Commission under_ERe)Case No. 2005-01-RM or otherwlse-Rnowh as Guioelines for {he Firi'anci'a!csrandarcrs6rGener.atino_C9rn~~ ~

II. POLICYGUIDELINES

1. Within 150 days 'from the end of GenCo's fiscal year, LMMD is expectedto receive a complete set of the audited financial statements clearlyshowing the financial position, results of operations and cash flows ofthe GenCo's business.

2. Within five (5) working days from ~j~.ceip-t-'-of.,".the~,",cQJ:tlpleteset of allaudited financial statements,..-a,,"P-l"nancial Work She~.t.err the calcufationof the Interest Cover Ration"/6roSCft"uf"'aH-(5enC'o"shall be computed todetermine compliance to financial benchmark set at 1.5x and submittedto the MOS Director for information.

3. The non-compliant GenCos will only be given one (1) year to fullycomply with the minimum DSCR benchmark of 1.5x, or the remaininglife of the COC in the case of a new owner of a GenCo previouslyissued a COG, whichever is shorter. within which to comply with theprescribed benchmark through the submission of a Program to Comply.

4. At any time after its submission of a Program to Comply, the GenCoshall inform the ERG in writing of any event or condition which shallprevent it from meeting the prescribed financial standard. The Noticeshall be given to the ERC within seven (7) days of such event orcondition. The ERC may require the GenCo to submit a revisedProgram to Comply to consider the new information brought to itsattention.

5. Non-compliance with the financial standards by a GenCo may result in adisclosure by tile ERe of such fact, together with any mitigating oraggravating circumstances related thereto; through periodic publicbulletin. The public bulletin may also include the GenCo's Program toComply and other disclosures regarding its financial condition andperformance.

I {~:~\ I UCENSING ,m~~~~~irMONITORING Section No. 4 - IRevision No. 00

~!iilt"'1l'!fi~'i~ ~.;,;g1 Section:Effectivity Date: I• .e11Jl.rpP\~~ • MONITORING

Subject: Subject No. 2FINANCIAL STANDARDS Page No.: 2 of 8

n. POLICY GUIDELINES (Cont'd)-------...--~~ ~ ~ -- ~ - - - --- - - -~._-~, '--- - .-. -- .._-- --- -- ---"- - --- --- - ~ - . ~

~~-AConsoltgat~(.tEio~Dcial Monitoring Report of GenCos shall be --\,'Ysubmittea--to tt}eComrnfsslOn-crn-ur-before -the end of the third- quarter' bt-(_'~~eryyea-r~-'

-------- - -

III. DEFINITIONOF TERMS


ConsolidatedFinancial Report onGenCo's DSCR andother FinancialRatios

Debt Service

DSCR

refers to a certificate given to an Entity by theEnergy Regulatory Commission to engage in theoperation of a power plant facility used to generateelectricity pursuant to Section 6 of the EPIRA andSections 4 and 5 of the EPIRA-JRR.

refers to an annual report submitted to theCommission on or before September of each year,indicating the compliance to the minimum DSCRbenchmark of 1.5x by aU GenCo's issued with COCo

- aggregate annual amount of debt repayments(including lease obligations under power purchaseagreements and sinking fund payments, if any) andinterest and other charges on debt, includingcapitalized interest during construction on loans forcapital expenditures.

Debt Service Coverage Ratio or Interest' CoverRatio is the measure of the GenCo's ability to fulfillits debt obligations; cornputed in 2 ways: (1) ratio ofCash Flow From Operations after Taxes to DebtService, and (2) ratio of Earnings before Interestand Taxes (EBIT) plus depreciation to debt serviceFor purposes of computing this ratio, Cash Flowfrom Operations After Taxes shall be derived fromthe audited financial statements and shall excludeinterest received and interest paid. Amortizationexpenses shall also be treated similarly todepreciation.

liCENSING and MARt{ET MON~TORINGMANUAL

Section: MONITORINGSubject:

FINANCIAL STANDARDS.

! Section No.4Revision No. 00

I Effectivity Date:Subjectj'io. 2Pa e No.: 30f8

III. DEFINITION OF TERMS (ContPd)

EBIT - Earnings before Interest and Taxes (EBIT) equal torevenues less expenses from the GenCo's principalbusiness activites; is identical to ncome fromoperations as determined under PhilippineGenerally Accepted Accounting Principles.

Existing Generation - shall "include (1) Spin-off Facilities of NPC orCompanies their Companies transferees

lincluding Generating

Facilities or Generation Companies owned byNPCtransferred to PSALM and subsequently privatizedpursuant to RA 9136; (2) Agus and PulanguiComplexes; (3) Facilities owned and operated byNPC-SPUG; (4) Accredited facilities under BOTarrangement Companies and other variants withNPC, NPC-SPUG, NEA, PNOC-EDC and otherGovernment Agencies; (5) Accredited facilitiesunder BOT arrangement and other variant 'NithDistribution Utilities; (6) Companies Facilities ownedor operated by a Distribution Utility; (7) GenerationCompanies/Facilities under contract with aDistribution Utility; (8) Self~Generation Facilties; (9)Facilities operating in Economic Zones; and (10)Facility operating in isolated areas.

Generation - refers to a facility for the production of electricity.Facility

GeneratingFaciHties underConstruction

Monitoring Report

shall include (1) DOE-Accredited facility under BOTarrangement and. other variants with NPC, NPCSPUG, PNOC-EDC, NIA and other GovemmentAgencies; (2) DOE-Accredited facility under BOTarrangement and other variants with DistributionUtilities; (3) Non-DOE Accredited Facility undercontract with Distribution Utilities; (4) Self-Generation Facility; and (5) Facility locating inEconomic Z.ones and Facility operating in isolatedareas.

. - refers to the internal report generated for GenCo'sinspected by LMMD staff, containing the financialand technical sections of the GenCo's operation asof date of inspection.

lJCENSiNG and MAR.KET MON~TORJNGMANUAL


FINANCIAL STANDARDS

Section NO.4Revision No. 00Effectivit D~te:Subje~~o. 5 ._Pa eNo.:4of8

IU. DEFINITION OF TERMS (Cont~d)

Monitoring Report - Refers to the internal report generated for GenCosinspected by LMMD staff, containing the financialand technical sections of the operation as of date ofinspection.

New Generating-Facilities

shall include (1) Any newly-constructed facilityconnected to the Grid with. appropriate health,safety and environmental clearances; (2) Anyfacility currently under BOT arrangement and othervariants with NPC, NPC-SPUG, PNOC-EDC andother Government Agencies and Govemment-Owned and Controlled Corporations; and (3) Anyfacility that shall operate in an isolated area.




- refer to new entities owning or operatrng one ormore Generating Facilities.

- refer to qualified independent entities appointed byPSALM, who shall administer, conserve andmanaged the contracted energy output of NPC IPPcontracts including selling the contracted energyoutput of these contracts and offering ancillaryservices, where applicable.

- refers to the functional unit of NPC created topursue missionary electrification function.

,IV. PROCEDURE DETAILS

RESPONSIBiliTY: ACTION ~NTERFACE

ServiceSecretary

Receipt ofAudited Financial

Statements

Existing/New/UnderConstruction GENCO's,!DC/Ole, Director, OED

LiCENSING and MARKET MONITORJNGMANUAL


FINANCIAL STANDARDS

Section No.4]Revision No. 00 lEffectivit Dated' . .Subject No. ~ .Pa e No.: 5 of 8

IV. PROCEDURE DETAilS

RESPONSIBILITY ACTiON INTERFACE

Division Chief

SERO

Division Chief

SERO

Assignment forEncoding and

Analysis

See Note 1

Review the ff:1. FinancialWorking Paper2 MonitoringReport (internal)3. ConsolidatedFinancial Report

See Note 2 - 3

Forward letter forReview/RevisionlApproval - NonCompliant DSCR

See Note 4

Forward Disketteof FinancialStatistics

See Note 5 - (j

ERO I, II and SERO

Division Chief!MOS Director/OEDICommission en Banc

MOS Director/OED

Management InformationSystem Division/Clerk

';.. -' .. :; ~.. :-., ','

6>jV"'Vfty col~CENSING and MARKET MONITORING- Section NO.4Q:'<; o~

MA.NUAl .- -_ ..

Revision No. 00~Fir~~~~ '.

U.I'.~ ~\;1 <!.':;wJ- Section: MONITORING Effectivity Date:~ . ~• .o~l.fPf'\~' Subject: Subject NO.5

FINANCIAL STANDARDS PaQe No.: 6 of 8

Note 1:

Note 2:

1. ~ .for the compjeteoeSJ>~ubmissjon.based-or:Ube anrilial-,r--sttbmisston-reqUirements specifi'ERflIT10er Articleill ..SectiQn_3.2-of-the~'-----Gtt1delines-for-tnet=ifranclal~Startaatas-C)f~Generation Companies or

\ERe Case No. 2005-01-RM. J?rrincomplete, prepare ex-iarnal correspondence requiring GenCo

to complete submission within five (5) days after receipt of thecorrespondence.

b. The advice shall be noted by the DivisionChief and correspondingly signed by the Director of the Serviceprior to transmittal to Records Section for mailing.

c. Ensure that the external correspondence is accompanied with amailing envelope complete with. the name and address of theaddressee using the prescribed ERC template.

2. Encode to MS Excel File under filename !lOSeR Data Base" thepertinent financial data.

3. Compute for the DSC 1R and compare with the benchmark of 1.5xusing the following methods:a. Method 1: Cash Flows from operations after taxesb. Method 2: EBIT plus depreciation and amortization

4. Likewise, compare DSCR with projected financial statisticssubmitted.

5. For non-compliant DSCR: Prepare external correspondence(templated) informing the pertinent GenCo of the need to complywith the set standard within one (1) year, or the remaining life of theCOCin the case of a new owner of a GenCo previously issued acac, whichever is shorter.

~~~~specte(rGencos (usually done on the 3'0 year fromi$~<Lof

~repare the Financial Standards Compliance section of theindividual intemal Monitoring Report.

b. Submit the complete individual internal Monitoring Report to DivisionChief and MOS Director for review and for information.

\!or GenCo~S_O!1Linsp-e~cted:_Ja. Print the Financial Worksheet on the calculation of DSCR.b. Submit Financial Worksheet to Division Chief for revievv.

Note 3: CF-..Dt-AeA-e0mp'+aflt~BS-eR~-Prepare-I'temJ'.}latM"~xteTna1=:Jce~reSp_QD.d.en.c.e_aDn::att:a"CtJ:aem~$aLY_'lV_QLliiJJg=Pa}LeI-fprre.\1tew-ot.-tli~=:>

~~~Q:QrO\f-a'-o-f-. the-eifeet-er--e~!:vJse.

I f~~~ LICENSING andM~~~~iT MONITORING

\"1c'2 h, ;;;"'~';f!'Cj; Section: MONITORING".oI"f.(l.lPP\l-\~'=" Subject:

FINANCIAL STANDARDS

Section NO.4Revision No. 00Effectivity Date:

..~b1~~!J~L~:2 . <

Paoe No.: 7 of 8

Note 5:

Note 4: All financial inform.ation of the individual Monitoring Report and theFinancial Worksheet on the calculation ot OSCR will be consolidated fQfthe ;r(!nnuarCorlsofidate-d-1=inancfat Report on GenCo D$CR submitted

r-to-tAe Commission on or before end orSep1~mberofe-achyear and-te\-(cthe~MatketSt9tus- -Report -&ener~~tion---Sectorto be submitted to the

'Commission Q:A--()fJierdleencfofJ\lovember .of each-year.-'-

a. Prepare Transmittal Slip to be noted by the Division Chief andsigned by the Director of the Service re: a.) Transmittal of diskette toManagement Information System Division for uploading andconsolidation to coe Tracking System (CTS) of at least ten (10)GENCO's DSCR Data Base File.

b. All request for posting to the ERe Website shall require theaccomplishment of the ERC Webposting Form.

c. cTIfe-=Fin-ancIa-rWorl<s-tleet--shafll)-6s[jbmlUedwlth in tnree-(3J -workingr--El~YS::Tq5oo=re€elPt=OfAudll~fd -F-mancjal.Reports from GenCo$.-:

rf\JOt66:~-- Ensure that all documents submitted by the GenCO/(S)~f~iilid-~nd~~~\ slngTe-rolderfor easy reference. Filing of documents should follow the

-sequence of activity conducted, wherein the latest/most recent activitydone and its documentation should be placed on top of the file.

V. REFERENCE:

Guidelines for the Issuance of Certificate of Compliance for GenerationCompan ies/Facilities

Guidelines for the Financial Standards of Generation Companies(GENCOs)

Resolution No. 21, Series of 2006 A Resolution Suspending the Effectivityand Implementation of Certain Rules Issued by the EnergyRegulatory Commission

Vi. RECORDS

1. Audited Financial Statements (i.e., balance sheet, income statement,statement of cash flows, statement of changes in owner's equityincluding audit opinion and the statement of management'sresponsibility on the financial statements)

2. Consolidated Financial Report on GenCo DSCR and Other FinancialRatios

3. External Correspondence re: Non-Compliant GENCOs

liCENSING and MARKET MONITORINGMANUAL


FINANCIAL STANDARDS

Section No. 4Revision No. 00Effectivit Date:

__~ubj~ct NQ:11 _Pa e No.: 8of8

VI. RECORDS

4. Financial Monitoring Statistics Worksheet - Per GenCo5. Market Monitoring Report - Generation Sector6. Monitoring Report7. Softcopyof Financial Statistics8. Transmittal Slip to Management Information System Division9. Webposting Form

I ",OV"U~yo I LICENSING and MARKET MONITORING Section NO.4Cc«; %MANUAL Revision No. 00

t; =."'l.:'! e;= .ecz,~ I~ k~ fl\\ Q,~-g;IU '.= .' ''-''0 Section: MONITORING f Effectivity Date:~ ~

• .oNJl..rPP1~'1:>' Subject: .Subject NO.2TECHNICAL STANDARDS PaQe No.: 1 of 8

I. POLICY

All applicants issued with a valid Certificate of Compliance (COC) shall beinspected in accordance with the guidelines, terms and conditions andresolutions is-.Suedby the Commission in relation _~~IDQ,rwlthn"rtw~

Ct~~Lyea[$_d1f.ringJ!!e five (5)ye-ars-Hfetim~~~--,COC".---",----_.--------~-

II. POLICYGUIDELINES

1rwrt In t irty (~.QljtC1y-s~afteLtbe~end~of-each~year,-~bM~D is exp~cted tot recei'l1e~B€tmni~py of the monthly..summat¥,.Qf the technicaJ~LmatjOn_and-b.}-GenCQJnformatiorl.$l!t:teLcontainin~e~_oJioFial

fie<ttfirertlents as inqi~gte_djr:L6rtL~JJt.9f the E_R~Q.~ResolutiOQ-f:',Jo.~)S-eT1e_LoJ_2DD"6_oLtb_e_Guid_elines~JQCtheDeleIminatiQn~of~1 nstalled'- /Generating Capacity in a Grid and the National Installed GeneratingCapacity and Enforcement of the Limits on Concentration of Ownership,Operation or Control of Installed Generating Capacity under Section 45of Republic Act No. 9135.

2 .~13Ps--w~tfl--\l£l~~Gs-SflaH-be-it:lsp_ected.--(-Gcy~af)-for m~i.!QImgcPurpcfses dunng the i1fetrm~LoLCO_G.-_,_~~~.-.-.--,.---

3. Without unnecessary delay, an~(f~r\!19lJl!Q1jng-:-Re~Qetjillternal ~(~peft1-accompanle~y a_~~Jg.n~SJ_lnspection.CfiecKIlstorlnspe.cte,dJ

~nco, shall be submltt~(j wlffflnt-errt1 0) )Norklng~days-afteF-return/toper-rnarnmtOfficlal station ..-/J . -'~'-

5. ~-mdivit111arrV!onltoring Reports for IPPs wittL-9r~-wjthout~l1all~- hle cO'nsoJ.Ld~ted-af.ld-.containe~tin_tbe-CoHg,Qlidatool ecnru~BLHeJlQllQn}

cG~.nGo-Operations_to~tLe_S~uQmitted to the Commission en Banc on or.J(= .QgEQ~Jone:-1,- ---------------)

6. A resolution settinp-tne Installed generating._capacity-per-griGl;-natioRalgrid and the market-sl1arelimitations per grid and the national grid for apar:t~GliI-aryear, shall15e issued every year and/or as the need arise~?\------~-~~--~-- -'-'---~-~--.- ._._._-~_ .. - - ---- ,-----

7.' The yonsohdateo Technical ReQortJ)n -_GenCo_Qp..ill'.atiQos_~sball)thereafter 5e posted in the ERe vvebsite upon approval by theCommission en Bane.

TECHNICAL "STANDARDS

: SectioD NO._4 ~. .Revision No. o~-l-_._---Effectivit Date:

~~b~~~~2~f8~-----j----,-

lICENSIN<:;;andlMAR.KET MONIJOR;NGMANUAL

MONITORINGSection:Subject:

II. POLICYGUIDELINES(Cont'd)

8 . ..Meftitonng activities of S~GFs-sbalLp.eJlmjted totne-ye-arfy-s-tfef::lfrtissi9n of\the-reqiJirements under NO.5 of the Terms and CDnaiUons-of-eOC forSGFs specified under Section 21 Subject 3 of this Manual.

9.~5) working days frQmJ:eceiPt-0~e electr{,),*,=e0PY~themuntl11y summary of the technical mformatlon rrom-apl9l!eants;-atl datashall be uploaded to the coe Tracking System (CTS).

m. DEFINITION OF TERMS

Certificate ofCompliance (COG)

- refers to a certificate given to an Entity by theEnergy Regulatory Commission to engage in theoperation of a power plant facility used to generateelectricity pursuant to Section 6 of the EPIRA andSections 4 and 5 of the EPIRA-,IRR.

ConsolidatedTechnical Report onGenCo Operations


refer to an annual report submitted to theCommission on or before June of each year,indicating the compliance to the technicalrequirements of the Philippine Grid and DistributionCode and market share limitation by all GenCo'sissued with COCoshall include (1) Spin-off Facilities of NPC ortheir Companies transferees, including GeneratingFacilities or Generation Companies owned by NPCtransferred to PSALM and subsequently privatizedpursuant to RA 9136;. (2) Agus and PuianguiComplexes; (3) Facilities owned and operated byNPC-SPUG; (4) Accredited facilities under BOTarrangement Companies and other variants withNPC, NPC-SPUG, NEA, PNOC-EDC and otherGovernment Agencies; (5) Accredited facilitiesunder BOT arrangement and other variant withDistribution Utilities; (6) Companies Facilities ownedor operated by a Distribution Utility; (7) GenerationCompanies/Facilities under contract with aDistribution Utility; (8) Self-Generation Facifties; (9)Facilities operating in Economic Zones; and (10)Facility operating in isolated areas.

GenerationFacility

- refers a facHity for the production of electricity.


Section: MONITORING'Subject:

TECHNICAL STANDARDS

Section No. 4Revision No. 00Effectivit, Date:Subject No. 2. _Pa e No.: 3 of 8

m. DEFINITION OF TERMS (Con1Pd)


Monitoring Repoli




- shall include (1) DOE-Accredited facility under BOTarrangem.ent and other variants with NPC, NPCSPUG, PNOC-EDC, NIA and other GovernmentAgencies; (2) DOE-Accredited facility under BOTarrangement .and other variants with DistributionUtilities; (3) Non-DOE Accredited Facility undercontract with Distribution Utilities; (4) Self..Generation Facility; and (5) Facility locating inEconomic Zones and Facility operating in isolatedareas.

- refers to the internal report generated for GenCosinspected by LMMD staff, containing the financialand technical sections of the GenCo's operation asof date of inspection.

shall include (1) Any newly-constructed facilityconnected to the Grid with appropriate health,safety and environmental clearances; (2) AnyfacHity currentJy under BOT arrangelTlent and othervariants with NPC, NPC-SPUG, PNOC-EDC andother Government Agencies and Government-Owned and Controlled Corporations; and (3) Anyfacility that shall operate in an isolated area.

- refer to new entities owning or operating one ormore Generating Facilities.

- refer to qualified independent entities appointed byPSALM, who shalf administer, conserve andmanaged the contracted energy output of NPC IPPcontracts including selling the contracted energy

. output of these contracts and offering ancillaryservices, where applicable.

QualifiedParty (OlP)

Third - refers to an alternative electric service provider thatmeets the standards in and is chosen in accordancewith the DOE Circular No. 2005-12-011, and is dulyquaHfjed and authorized by the ERC to serveDeclared Unviable Areas pursuant to Section 59 oftile EPIRA and Rule 14 of the EPIRA-IRR.

._-------------- ------LICENSING and MARKET MONrrORING

MANUALSection: MONITORINGSubject:

TECHNICAL STANDARDS

Section No.4]Revision No. 00 1Effectivity Date~_- I

~~b~~O~()4 ~f 8~-~Jm. DEFn\l~TIONOF TERMS (Cont'd)


"IV. PROCEDURE DETAILS

refers to thefuncttonal unit of NPC created topursue missionary electrification function.

RESPONSIB!l!TY

SeNiceSecretary

Division Chief

SERGIDivision Chief

SERO

ACT~ON

-~-Receipt ofGenCo's

ManagementReport

Assignment f~O.Encoding!

Analysis and/orOcular Inspection .

r-:Notel-7Review the ft

1" TechnicalWorksheet2 MonitoringReport (internal)3. ConsolidatedTechnical Report4. Yearly ResolutionL-Le Note 8 ~ 12

Forward Disketteof TechnicalStatistics

INTERFACE

Existing/New/U nderConstruction GENCO's)DC/OIC, Director, OED

ERO I, II and SERO

Division Chief!MOS Director/OEDICommission en Bane

Management InformationSystem Division/Clerk

See Note 7C -7D, 13

.~~ .'

,

",lj\-.S"" vlty CoLICENSING and MARKET MON~TORING' Section No.4'-Q:'<; 0

:.. .\ MANUAL ....

Revision No. 00eJ ~.r~ ~ ~-~ _a: ~ ~'\f~~ ~

Section: MONITORING Effectivity Date:11l&<>"m';;r. 1 •.•. 0~ ~

-t;) S6 Subject: Subject No.2?1Jl.(PPl~

TECHNICAL STANDARDS Page No.: 5 of 8

Note 1: n the 3ryear ofth~life of its C C, an ocular Inspection 0 aTljlPP's

sbalj=~e-conducte_d_to~co_ofiIm reliability of submitted Management~'p,or:ts.

Note 2: @Ular InsQection for monitoring purpgse~_s~U~lIow the relatedR.Olicy~::~~.Ii!:1es-a.Qd-~feeeaHFeS-5-f2)eeff1ed-in-3ectj-Ol!-3~SUbje-ct-2-of-th.ts~;a~

Note 3: Summarize all observations, issues and non-compliance duringinspection activity on the Monitoring Report and Non-ComplianceReport (NCR) Form - Major/Minor, to form part of the top sheet of thecorresponding checklist form.

Note 3: Sections of the Monitoring Report (Consolidated) are as follows:

PARTiCULARS IPP & GENCOS'1. Background >I2. Monitoring Activities

A. Verification and Evaluation >I1. Technical Compliance2. Financial Standards Compliance (for

consolidation)3. Compliance with Cross-Ownership and

Market Share Limitationsa. Market Share Limitation in the Grid and

in the National Gridb. Determination of GenCo and its

Affiliated Company's Compliance to theCross-Ownership Limitations

c. Determination of GenCo and itsAffiliated Company's Compliance to theMarket Share Limitations

3. Observatio ns/Findings v4. Recommendation v

Note 4: The Background portion of the Monitoring Report should always indicatethe date of inspection.

Note 5: The Monitoring Report shall be prepared by the appointed inspectionteam and submitted within ten (10) working days after return topermanent official station.

Note 6: The GenCo's Folder complete with all the documentary submissionsshall be attached to the draft Monitoring Report (hard and soft copy),submitted to the Supervising ERG (SupERO) or Division. Chief forreview.

lL~CENSING and MARKET MONITORINGlMANUAL .! !

Section: MONITORING . j

Subject:TECHNICAL STANDARDS

Section NO.4Revision No. 00E,:ffectivit Date:SUbject}~~? ._._j.Pa eNo.:6of8

Note 7: For the GenCos not inspected:a. A Technical Worksheet detailing the following shall be prepared for

consolidation to the Consolidated Technical Report on GenCoOperation, to be submitted to the Commission en Bane on or beforeJune of each year.1. Maximum Capacity2. Capacity Utilization3. Unscheduled Downtime4. Electricity and Sales Volume5. Energy Reserve

b. The Technical Worksheet shall be submitted within three (3) workingdays upon receipt of Management Report from GanCos.

c. All information detailed above shall be transferred to a diskette andtransmitted to Management Information System Division through aTransmittal Slip (noted by the Division Chief and approved by theMOS Director) for uploading and consolidation to coe TrackingSystem (CTS) containing at least ten (10) GENCO's DSCR DataBase File per diskette.

d. All request for posting to the ERe Website shaJi be require theaccomplishment of the ERC Webposting Form.

Note 8: The review period should be limited to a maximum of two (2) days uponreceipt of the Monitoring Report.

Note 9: a. The GenCo's folder shall be fOf\JVarded to the inspection team fortemporary safekeeping, while awaiting the final/signed copy of theMonitoring Report to form part of the GenCo's file folder.

b. Ail revision/corrections on the draft Monitoring Report shall beincorporated by the inspection team and shall thereafter transmittedto the Supervising ERG, Division Chief for review and proper'disposition.

c. All signed Monitoring Reports should be forwarded/transmitted to theService Director for consideration/approval.

Note 10: The Service Director shall submit an annual Report on the actions takenby LMMD against non-compliant GenCos to the Commission, throughthe OED and the Commissioner Oversight on or before June of eachyear.

Note 11: On or before end of July, LMMD shall issue resolution setting theinstaHed generating capacity per Grid and National Grid and MarketShare Limitations per Grid and Nationaf Grid which shaH be enforced onor before the 15

thof March the follovving year and thereafter, and/or as

the need arises.

--.1-----

II l~CENSING and MARKET MONlrOR~NGI Section NO.4. MANUAL' "~'., . Revision No. 00----------~---~-

rSection: MONITORING Effectivit Date:

Subject: TECHNICAL STANDARDS .~~b~~to~o7~f8 ~---=:j

The resolution will be based on the Summary Schedule of GencoInstalled Generating Capacity per Grid and National Grid to be preparedby LMMD on or before end of July of each year.

Note 12: All technical will be consolidated in the Market Status Report _Generation Sector to be submitted to the Commission on or before endof November of each year.

Note 13: Ensure that all documents submi.tted by the Ge'nCo/(s) are filed under asingie folder for easy reference. Filing of documents should follow thesequence of activity conducted, wherein the latest/most recent activitydone and its documentation should be placed on top of the file.

\I. REFERENCE:

Guidelines for the Issuance of Certificate of Compliance for GenerationCompanies/Facilities as Amended promulgated March 07, 2003

Guidelines for the Determination of Installed Generating Capacity in a Gridand the National Installed Generating C.apacity and Enforcement ofthe Limits on Concentration of Ownership, Operation or Control ofInstalled Generating Capacity Under Section 45 of Republic Act No.9136

Resolution No. 21 t Series of 2006 A Resolution Suspending the Effectivityand Implem,entation of Certain Rules Issued by the EnergyRegulatory Commission

Resolution No. 22, Series of 2006 A Resolution Promulgating the Rules forthe Regulation of Qualified Third Parties Performing MissionaryElectrification in Areas Declared Unviable by the Department ofEnergy

Resolution No. 53, A Resolution Setting the Installed Generating CapacityPer Grid, National Grid and the Market Share Limitations Per Gridand the National Grid for 2006, pursuant to Resolution No. 14,Series of 2006 of the Energy Regulatory Commission

VI. RECORDS

1. Consolidated Technical Report on GenCo Operations2. External Correspondence re: Non-Compliant GENCOs3. GenCo's Management Report Submission4. IPP's Individual Checklist Form5. Market Share Report - Generation Sector6. Monitoring Report (per GenCo)

LICENSU\lG and MARKET MONITORING. .MANUAL,Section: MONITORING'Subject:

TECHNICAL STANDARDS

Section NO.4Revision No. 00Effectivity Date:Subje~tJo. 2 _Pa e No.: 8 of 8

I

-II

VI. RECORDS

7. Resolution on Installed Generating Capacity and Market ShareLimitations per Grid and National Grid

8. Summary Schedule of Genco Installed Generating Capacity per Gridand National Grid (attachment to resolution)

9. Softcopy of Tecllnical Data10. TechnicalWorksheet11. Transmittal Slip12. Webposting Form

--CENSING and MARt{ET MONiTORING Section No. 5MANUAL Revision No.n: Effectivity Date:

FORMS USEDt: Subject No.

Page No. 1 of 2

1.2.3.4.

5.6.

7.8.9.10.11.12.13.

14.f 1/,, 15.

16.

17.18.19.20.21.22.23.24.25.26.27.28.29.30.25.26.27.

(;~-'l~

~.

PARTiCULARS

coe Application FormCompany ProfileThree-Year Operational History per PlantAffidavit of Compliance with the Philippine Grid/DistributionCodeAffidavit of Compliance with the WESM RulesAffidavit of Compliance with Cross ..Ownership andMarket Share RestrictionGeneral Plant DescriptionGenerationaJlnformation She,stCOC Assessment FormERC Travel OrderERC Itinerary of TravelLiquidation ReportChecklist of Requirements for CO.C Application -IPP Operational as of June 26,200'1Checklist of Requirements for coe App!ication -IPP Operational after June 26, 2001Checklist of Requirements for COC Application -SGF with total installed capacity of 1 MW & aboveChecklist of Requirements for toe Application -SGF with aggregate installed capacity below 1 MWInspection/Monitoring Summary Report .General and Administrative Checklist - IPP/GENCOsGeneral and Administrative Checklist -- SGFInspection Guidelines for Bio-Mass Power PlantTechnical Checklist for Bio-Mass Power PlantInspection Guidelines for Diesel Power PiantTechnical Checklist for Diesel Power PlantInspection GuideHnes for Combined Cycle Thermal PlantTechnical Checklist for Combined CycleInspection Guidelines for Coal-Fired Thermal PlantTechnical Checklist for Coal-Fired Thermal PlantInspection Guidelines for Geothermal Power PlantTechnical Checklist for Geothermal Power PiantInspection Guidelines for Hydro Electric Power PlantTechnical Checklist for Hydro Electric Power PlantInspection GuideHnesfor Hydro Pump Storage Power PlantTechnical Checklist for Pump-Storage-Hydro

FORM NO.

Form NO.1Form NO.2Form NO.3

Form NO.4Form NO.5

Form NO.6Form NO.7SEC Form No. xx

IPP-A

IPP-B

SGF-A

SGF-B

IM-LM-01-IC-AiM-LM-01-IC-A (SGF)IM-LM-BM-GL-01IM-LM-01-BM-IC-01JM-LM-DE-GL-02IM-LM-01-DE-IC-02!M-LM-CC-GL-03IM-LM-O 1-CC-IC-03IM-LM-CF-GL-04IM-LM-01-CF-IC-04IM-LM-GO-GL-05IM-LM-01-GO-IC-05IM-LM-HE-GL-06AiM-LM-01-HE-IC-06AIM-LM-HE-GL-068IM-LM-01-HE-IC-068

LICENSING and MARKET MONITORING-I Section NO.5MANUAL Revision No.

Section: Effectivity Date:

,,I '

FORMS USEDSubject:

PART~CUlARS

28. Inspection Guidelines for Oil-Fired T!1ermal Power Plant29. Technical Checklist for Oil-Fired Thermal Power Plant30. Inspection Guidelines for Simple Cycle Gas Turbine31. Technical Checklist for Simple Cycle Gas Turbine32. Inspection Guidelines for Solar Power Plant33. Technical Checklist for Solar Power Plant34. Inspection Guidelines for \Nind Power Plant35. Technical Checklist for Wind Power Piant36. Inspection Guidelines for Co-Generation Power Plant37. Technical Checklist for Co-Generation Power Plant38', Monthly Report -coe Application39. Notice of Approval of coe40. TransmittalSlip41 . Web posting .Farm

Sub'eet No.Pa e NO.1 of 2

FORM NO.

IM-LM-OF-GL-07IM-LM-01-0F-IC-07IM-LM-SC-GL-08IM-LM-01-SC-IC-08IM-LM-WI-SO-09IM-LM-01-S0-IC-09IM-LM-WI-GL-10IM-LM-01-WI-fC-1 0IM-LM-CG-GL-11IM-LM-01-CG-IC-11

,;.,.(~n~\)),

ro"#

,i~~

'''',0 "ot.:;"O)l1ft1PPt'\~l;;i~

,AppUcaUon N«). ~ "_. ,.Date Fi irf*d ~~ __ ~ ...~ . _[] G;anIEJra-Uon Co~npanyI] (;leneraU(Hf~Fr.u,,,;UU:y

._ ••• _ •• _ •• ~ •••• _ ••• .J __ •• __ •• ._. __ , •• " ,._,_~.~ __ ••••••• ----- ••••• -~-,._., •• _-_.-,-_.-~._ •• __ •••• -,~--_.--_.------ ••••-.- ••• -- •• ---- ••• -

Cityrrown:_.__ ._----,._-...._-_.~_._ .._-_._------_ ..•_---~_.._--,. __ ..__ ..•--_. __ .~._._.._ .._._--_ .._-,--_._ .._.__ -.-._--_._._.----- •.•...-----_.------

_'_'~""~""~"""_""¥~"M'_"_'_'~""'_. ."_'",,~.'_~ __ ~"' '."" __ '" ••••• _., ••••. _ ••••'•• ,--_ •••_._ •• ',•.•".- •••••.••• " •• _- •••- •• ¥ .. __ .. _ .••.• -- ••• - •• ----- ••• -, •••• -~ .• -_. __ •• ~¥.~- - _~._.----_ --_._-- .•.

-~_.._~.._-.~.----------._.._----_._,--_._---~,_ _._~~__._~,_ _-~..~ _--- .•..-._-~-_..---_._----------_ •..__ .-.-,-----.,_ ...•_---_._~

(.~--_.._._._-.,.-_.,_.- ..•....•....-._-~_ ..••.._._ .._-_.~_... ,_ .._ .._---_ .._- ...---_ ..~-_....~_..._._---_ ..._~----.-...-.--------_.---~--_._-----

(•...-_ •....__ ._.._ .•.....--~--~-"__ " -.~._•...•..........•• - -...•••......•.••... ,., •..•....••.•._.,-_ _ -.- •.._---_ ----_._ ..-_.- ....•.•.- _ •..•.._- •....._ ......•.••.._~----~-_•..

"H.'~ Business Name::

Typ~') of Or~JaniZ8f.ion:

Business .Address:f\lurnber 11 St.reet

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JSJ1COCForm.\' 1I'll ('('(')'r3. doc

Republic of the PhilippinesENERGY REGULATORY COMMISSION

~.!. Pacific Center Bldg., San Miguel AvenueENERGYREGULATORY~OMMISSION.PHIUPPINES Ortigas Center, Pasig City

LMMD-COC-APP-20Date:

To: ERC Cashier

Name of GOG Applicant

Will pay the amount indicated below for the following purpose(s).Filing Fees - COC Application*Note: (IPP/SGF-Capacity)

Total _P_h_P _

''1- .•

Assessment No.O.R. No.DateCashier's Signature

2009 - Assessed by:

Supervising EROlicensing and Market Monitoring Division

Approved by:

Chief EROlicensing and Market Monitoring Division

To: ERC Cashier


dS~4 Pacific Center Bldg., San Miguel AvenueENERGYREGULATORYCOMMISSION.PHIUPPINES Ortigas Center, Pasig City

LMMD-COC-APP-20Date:

Name of GOG Applicant

Will pay the amount indicated below for the following purpose(s).Filing Fees - COC Application*Note: (IPP/SGF-Capacity)

Total _P_hP _

Assessment No.O.R. No.DateCashier's Signature

2009 - Assessed by:

Supervising EROlicensing and Market Monitoring Division

Approved by:

ChiefEROlicensing and Market Monitoring Division

I !~i'!' ' ••• ,

----~'~.•_-~."""--_.,----------------------------------------

Republic of the PhilippinesENERGY REGULATORY COi\,~MISSION

San Miguel Avenue, Pasig City

LMMD-COC-APP ..2006-Date:

To: ERe Cashier

Name of cae ApplicantWill pay the amount indicated below for the following purpose(s).Filing Fees - cac Application.*Note: (lPP/SGF-Capacity)

Total PhP

Assessment No.O.R. NO.DateCashier's Signature

2006 - Assessed by:

Supervising ERGLicensing & Market Monitoring Divi~ion

Approved by:

Chief EROLicensing & Market Monitorinq Division

J?.epubhG of the F'hiHpp:inesENERGYREGULA1"ORYCO~1MISSION

•• ;p ?:i,kiptwo (2) spaces

TR.J~VEl OFUjER NO ..~=_.~_.w's,eries o'f :20{)5Arial, size 12, bold, all caps

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Date I Pasig City.

~j, skip five (5) spaces

FH)O(')tFO B.Al.BANO, JFtChairman

-0<skip two (2) sp ace.scc: "..~<:lNIT1ALS»

«INITIALS>~

AJi'ach:

Prt~p,;1J'ed by: author Inllla!::,

~ Date format: day month year

.ry,. Arial, siz.e B

-7 Arif.dr size 7

ITINERARY OF TRAVEL

--------.--Agen~Y-------.-.--~

Name : I~ .. ," •! ,PurpOeft of TnllVa! : . .~--~------ •.----

Appendj)( 46

No.:. _

Dale2002

Places toOF. vir;;it!=,r!

TIME

Depart. ArrivalMeans ofTranso.

f certify tnat : (1) I have reviewed theforegoing Itinerary, (2) the travel Isnecessary 10 the service, (3) the periodcovered is reasonable and (4) the'expenses claimed are proper.

Immediate SupervisorAO 8/15/02

(J

TOTALprepar~

~.! ..i

]05

A. 111is forn1 shall be acconlplished as fo11o\7\'s:

1. Agency ..Ilalne of the agency'2. Nm.ne~' Dalne of the official/employee going on travel3, :purpose of Travel - purpose of travel based on the approved ~

travel order4. Date.,.... schedule of activities to be perforuled during the travel5. Places to be visited -. places where the activities are to be .

perforn1ed6. Time - time of departure and arrival to plact~s to be visited7. Means of Transportation - means of transportation such as

plane, "t:1.xi, etc. to be used8. Transporta,tion - amount of transportation expenses9. Per Diem .. amount of allowable traveling expense for

subsistence and lodging10. Total Amount - total oftrarisportation expense and per diem11. Total -.vertical total of "Total Arnount" column

!

B.: This form shall be prepared by the official or employee making the ••i travel to show the detailed itinerary of travel. .", .

C.; .This fonn shall be serially l1unlbered and att.ached to all claims fortraveling expenses.

D. TIlls fort11 shall be prepared in two copies distributed as follows:'

Original -- Accounting Unit (to be attached to the DisbursementVoucher for payment of traveling expense)

Duplicate Copy -- Officer/Employee concerned

106

. ',f

, " Appendix 58<--------,,_.~,~~--~--_._--_.-----' ~-' -------UQUiDtnIOh! RFiPORT No.:

Date:----------"Responslbill1y Center/~genc)' Code:

----==-=-=--~=-.•-=..'''''-=-=-===,=o==-==-=_=---.---- ....--.-~--

PARTICULARS--===--.:.=== .._........--.....----_...._-

~:"

. :.;

• I ~'"

Amount

TOTAL AMOUNT SPENT

AMOUNT OF CASH ADVi,J:'~CE PER DV NO. _

AMOUNT REFU"NDEDPER' OR NO DTD

OTD.

129

'..

INSTI? UCT10 }liS

A. This repprt shall be accomplished as foIlo'ws:,;l~,

1. Agen c.y - name of the agency2. NO./Date - assigned number by the Accountillg Unit and the date of il1e

preparation of the report3. Responsibility Center Code - code assigned to each cost center4. Particulars - brief description of expenses incurred or deviation from original

itinerary in case of travel expenses5. Amount - amount of expenses covered by the report6. Total amount sIlent ,- actual amount spent7. Amount of Cllsh A<lvam:e - amou.nt of cash advance received8. Amount Refunded - excess oftlle cash advance received less actual expenses

incuITed. 9. Amount to be Reimbursed - difference between cash advance received lliid

actual expenses incuned10. Box A Certified: Correctness of the datH ahove -name and signature of the

employee/officer who was granted the cash adV1:Ulce.11. Box B Certified: Purpose of t:r~lveJ/cash advance duly accomplished ~name,

and signature of immediate supervisor of the official/employee vvho;inclID'cd the expenses. .

12. Box C CeJrtifi(~d: SupportJng documents complete and proper - name andsignature of the head of the Accounting Unit; and JEV No. used as a basis in i

the recording of such liquidation in the General Joumal13. J:I!:V No. - number of the Joumal Entry Vou.cher taking up the Liquidation,

Report. The amount spent per Liquidation Report shall be taken up in the'.lEV, the refund shall be recorded in the Cash Receipts Journal or Cash'Jourl1al per official receipt, and the amount to be reimbursed shall becovered by Ilnotl'ler Disbursement Voucher.

B. Tllis report shall be prepared by the employee/offlcer who incUl:red theexpenses and making tile. liquidation of' the cash advance. It shall beprepared in two copies and shall be distributed as follows:

Original - Accounting UnitDuplicate Copy - ClaimantlOfficerlEmployee's File

130

Enel~gyH.egulatory C0l11111issionA/arleet Operations Service - Licensing &)\larket firfonitorlng Division.

of Requi:r~lnen t$ for,~:QqJ(pi~~~~~t.~9*:';,Independent P(n~el' ])roc1ucer (IPP) Operational as o.f26 June 2001

Name of IPP: ._~_

A. General Requirements

0 (1)

0 (2)

l~ (3)

'0 (4)

0 (5)

CJ (6)

0.,,(7)

Application Form (Form NO.1);

Company ProfIle (Form No.2);

Department of Energy (DOE)l National Power Corporation (NPC)Accreditation; if applicable

Three (3) year Operational History (Forrn No.3);

Sworn Statement that each of the Facility complies with and will continue tocomply with the Philippine Grid and Distribution Code (PGDC) for theduration of the coe (Form No.4);

Sworn statement that the company and its generating facilities comply withand will continue to comply with the Wholesale Electricity Spot Market(lNESM) Rules for the duration of the COC (Form r~~o.5);

Swom Statement that the company cornplies with and will continue tocomply with the provisions on cross ownership and market sharerestrictions under Republic J.,ct No. 9"136\ its Implementing Rules andHegulations1 and thE- Guidelines for Issuance of Certificates of Compliancefor Generation Companies/Facilities for the duration of the coe (FormNO.6); .

B. coe Application Fee

Io (8)

, C. Additional Requirements

0 (9)

0 (10)

~": 0 (11 )

General Plant Description (Form l'-Jo.7)

Environmental Compliance Certificate (ECC) (of the GEI~SET or of the.Company specifically identifying the GENSET) - Department ofEnvironment and 1'Jatural Resources (DENR);

Securitie? and Exchange Commission (SEC) Registration;

, , , Ic: tlSJVames(FromLertiPC)\COCChecklis! \iPP ExistinglChecklist _ j 9April04.doc

'A ' "., •• , ~, • , •

. ...•• ~,":~i:-.-;;..;.*~~.~:.....:.:.

J oj J

DC--J.

.0

(12) Latest Genera/Information Sheet (GIS) of the Cornpany - Form from SEC;'"

(13) Latest General Information Sheet (GIS) of the Major Stock Holder of theCompany as indicated in its GIS,... Form from SEC; .-

(14) . Other DOGument/s that ERG may require from time to time

----------------------_._----------------

Evaluator's COl1'lrnent/Recomrnendation:

----_.....~'-----_ ...._-------_._---------

v .Subnitta:i Doanrent uiifJ Canp!ete :Erztri5Inc. -111CDtrplete E rrt7ies on Stt<.0,~itttdFonn

lv/A.. - Not tlJ!plicabie'

Note:

" Only ji:mn;/ ciIxumm uit.b a:mplete entri£suifl be dmpted; aiherui.se it rdU be rmtrnBd to the appli&mtfor re-.subniss ion cfji:mn;.uith a:;rrpla:e eniries

!)ocununts Checked/Et'ualua.ted bv:5' i::XtlatJm: (J~:~Y)rinled IVcl77r . Paidan/Date

c:USJlJames(FromLertiPC) ICOC.'Check!istVP P ExistingIChecklis/_ J9Apn"104. doc. 20/1

.. \

",;}" .

Energy Regulato:ry Coriin1ission 'A-farket Operatiolts Service ~Licensing & ,~larket Afordtoring Division

'~~»~,_,,"....~..!1!:~qi::g~'q~~~~~~~~~f:fQE~:~Independent PO}iJer Pl~oducer (I.PP)Operatioiial aftei 26 June.2001

~~ame ofIPP:' ------------ '----------....,.. ----A. General Requirements

o-(1) Application Form (Form No.'i);

"0 (2) , Company Profile (Form NO.2);

B. cae Application Fee

o (3)' P10,OOO.OO

C. Technlc~l Qualification

o (4)

o (5)

Sworn Statement that each of the' Facility complies, with and wilfcontinue to comply 'with the PhiHppine Grid and Distribution Code(PODe) for the duratfon of the coe (Form No.4); "

Sworn Statement that th,e company and its generating facilitiescomply with and \NiH continue to t-;Of11 ply 'with the WholesaleElectricity Spot Market (WESM) Rules for the duration of the coe,when appHcable (Form NO.5);

Management Contracts in .force, when appli.cable;

General Plant Descrrptior} (Farm No.7);

Location Map;

Connection Agreement between the Grid Owner (TRAN seQ) andthe Existing Generation Facility or Interconnection plans/detailswith the high voltage backbone transmission system/grid orDistribution System (for 'Embedded, "Generators) and, orTransmisslon/Dist.ribution Use of System Agreement, if available;

0' (10) PGDC Requirements

"'0 (6)

:0 (7)

.0 (8)

0 (9)

D,'D

(10.1) Electrical/Mechanical Plans and Diagrams;

(10.2) Plant Specifications including plant efficiencyand heat rate;

C:VSJ\.JmI'Jes(FromLettiPC) ICOCChecklist\[PPNel'vCheck!ist _/9Apri104.doc I1 of 1

). . .~.. , . -:....

DDoD.0..

'D. Fin'ancial Capability

(1'0.3) . Technical Description of the Load to beserved (fo'f tbose in isolated areas and thoseserving dedicated'ioads); .

(10.4) Safety Rules/Guidelines;

(10.5) \NESM membership, ifapplicable; and /'

(1 0.6) De-t~il'~"ol~ifs""CO'mmill1icationand SCADA

(10.7) Requirements, if applicable.

Documentation on financial track record .of the Generation . jCompany and of its principal stockholder, jf available.

oD.oo

(11 )

(12)

(13)

(14)

f ....r

Audited financial statements for the 2 most recent 12monthperiods, if available;

Schedule of liabilities, to include the following information; name ofcreditor, type of credit, credit terms;

5-year financial plan; and

'to". _••,1:.-; J~ I

E. Ownership/Control.J

(15)Securities & Exchange Commission (SEC) Certificate ofRegistration with Articles of Incorporation I Partnership (forCorporation / Partnership)

Business Name Registration Certificate (for Sing.le Proprietorship);. /,"

Updated listing of shareholders and corresponding equity shares;

Complete .list of its Board of Directors and Senior .Offidals .down tothe level of Plant Managers;

Types of long term debt and equity instrument, including amount. and proportion to total capitalization;

Sworn Statement that the company .complies with arId willcontinue to comply with the provisions on cross ownership qndmarket share restrictions under' Republic Act No. 9136, its

. Implementing. Rules and Regulations, and the Guidelines forIssuance of Celiificates of Compliance for Gen~rationCompanies/Facilities for the duration of the coe (Form No.6); .

(21) Comprehensive and complete listing of. Affiliates and RelatedG ro u ps I includ ingown ersh ipan d rna nag e m~1t'!sttr1'cttrtf3'~"".~r)''d'''':'~''''''':"",,,,,,,,,

o

0 . (16)

D. (17)

0 (18)

0, (19)

.0 (20)

I t~

2of2J

'". ~'.~ ••• r- ••• "' •••••••••.•••••""\o••l~ ••••_ •••••• ~,.

C:Vs'JVames(FromLeltiPC) ICOCChecJ:lisltlPP.NewChe,ckfisl_/ 9Apri/04.doc .

o (22)PSE Certificate to the effect that they are listed with PSE, whenapplicable.

F" Other Requirements

Environmental Compliance Certificate (ECC) duly approved by theDepartment of Environrnent and Natural Resources;

Department of Energy (DOE) Endorsement indicating that thePower Plant Proiect is consistent with the Power Developmentpruyram ot the Government;

Latest General Information SheEjt (GiS) 6t)the Company _ Formfrom SEC; I

Latest General Information Sheet (GIS) of the Major Stock Holderof the Company as indicated in its 13/8 - Form from SEC; and

Such other information or docul1lenUs that ERe may require.

----------_._------------------------------_ .....•.---.....•...•..•--------------_._-----------~"-----------_._-_._-_.---...._-----

(23). Power Purchase Agreements;

(24) Power Supply Contracts;

(25) Memorandum of Agreement on the Establishment of TrustAccounts by the Generation Company and/or the EnergyResource Developer and the Department of Energy on Benefits toHost Cornt}}ul}!ties as required under Rule 29 c5f"lfl'e'''lRFf;''''''''U"''''",,,",,," .0 (26)

0 (27)

0 (28)

CJ (29)

0 (30)

E1'>aluator's Conzlnent/Recommelldat£on:

'-------,,-~lII>o~-----~---'------"--------~-

, .. ,.L~ if. SubrnitteiDrotn'Efrtuith CorrpleteEntrie N/A _ I'ior. appliad:J.eI Inc. -lnmnp!ete E r:trie onSubnittai Fon?"!;

I !f2te~* Ouy}Orm/ dotum:nts uirh cmplete entrio 'fiill b?aCiEpted; otf.eruis e it "ill b?retumal tlJ the trppIimntfOr,...submission 0/fO'rm '£lith mrrple£e enJ:rie; .

Ic: vSJ'JClI;les(FromLettiPC; ICOCCheck/ist\lp P/\/ewChecJ.:/ist_J9April04.doc

Documents Checked/Evaluated by:~_. . ._~ _Sign:ztwp cn....orPrinted jVanE- PCEitian/Date

30f3

i.i

._l.

Energy I<.egulatory Comrtussiol1lWarkei Operations Service - Licensing & Market A-fonitqring Division

Self-Generation Faci~ity (S(j'F) 'with.total installed capacity 'of ~.MPt& Above.'

Name of SGF:.----------------------------------------A. General R~quirenlents ..'

0 (1)

0 (2)

.0 (3)

0 (4)

Application Fohn (Form No.1);

Company Profile (Form NQ.2);

Three (3) year Operational Hist9ry (Form No.3);

.DOE/NPC Certificat~ of Accreditation; if applicable

B..cae Application Fee

-0 (5) P10,OOO.OO

C', Additional Requirements:

0 (6)

O. (7)

0 (8)

Securities and Exchange Commission (SEC) Registration

Latest General Information Sheet (GIS) of the Company - Form from SEC;

Other DocumenUs that ERe may require from time to time

"

----------------------------..,-,------,-

1./ -Subnitmi D~rEl1t ~ Conp!ete E nt7ies'Inc. -1"!IDlrpfete E ntri5 on Subnittai Fom1i

N / A - N oc a.,.iJpliaible

lvote:

~r OnlyjCJmE/docu:rrents uith amp/ere enniesuilll::e aa:.eptei; ahen.eise it Wll be rer:um::d to d:x: applimrlt for rr:--subrmsion ifform;Wth rorrpIete entries .

Documents Cbecked/EvctZuated. by: _Sigu.f:1tre mer Print.8dNaJ'n;;. PCEiti.on/Date

I ~ ~c:VSJVames(FromLettiPC) \COCChecklist\:;PF( IMW &. above)ChecJ:/L,'_19Apr04.doc

..,.' -.~... ~~. -: ~-~-.:....~~ -

~'::~gyIit~mSelf-Generation Facility (SGF) with aggregate installed capacity below lMW .

Energy :Regulatory COTIlluission.Alarket Operations Service - Licensing & .~larket Monitoring Division

;.~.:•.

Name of SGF: . . .,. ___ . .__

A. General f3equirenlents

oo

(1)

(2)

Application Form (Form No.1);

Company Profile (Form No.2);

B. coe Application Fee

D' (3)

0 (4)

0 (5)

P1 ,500.00 (For aggregate installed capacity of 100 kW and below)

P5,OOO.OO(For aggregate installed capacity of 101 - 500 kW )

P7',500.00 (For aggregate installed capacity of 501- 999 kVV).,E f['aluatorJsC 0mrnent/R econzmendation:

._~--------_._~-,---_.-Legend:

N/A - flat applKaUe'..'" ~~i.,.:.-.( - Subnitted DOCUJrEJ1t uith Conpiete E nttits'." "t Inc. - i'lll:XJrrfJIete E 71tries. on Subm:ftedForrr5

l\lote: .

: * Only./Onrc/ do::um:nts uiih =p/ete entrifs WiUe acaptai; cxherolise it uill be nt:urmi to the "PPliatntfOr ,•. _5tibrrissU:mcffOrm11ith rorrplete entries

. c:VS.f\James(FromLeuiPC) \COCCheckJist\:)~Pflq.fj(9,\~;:!AfH?Checklis'_ J 9Apr04.doc

.Docun1.ents Checked/Evaluated by:----------"'--------"------

r--_...I ' .~~>.

-+~\ INSPECTION MANUAL Revision No. 0I .~",,## TITLE GENERAL ADMINISTRATIVE CHECKLIST Effectivity Date

i DIVISION : LMMD , Page 1 00,

I ---P-I-a-u-tlI-?-a-d-n--N-a-m-e---- ------I.-,-o-ca-t-io-n----- ---U-, -n-U-N-o-..- -n-. -at-e-a-n-d-.-T-im-e-o-r-c-,o-n-d-u-c-t- IIObjective: To check Power Plant Owner/Operator COIl.lplJes with the requirements of the Ii Certificate of Compliance (COC). or the PGne. Ir------.------------- P d --R--------------------------N-r-----------jI rrijLl'HS reseute. ~emftr~s ates

II -~'Iy N

I IITo discuss ohjective and scope of the inspection and team

I! T 1\1EET.L'l\{G wit}} Plant lVlanagement

I

l.t.

requirementa.I

I Overview P!'eseutatiolll of Plant Management

I Customer Financing. Aetual Project Cost, Incorporators orI regarding;

-.owners~ start of project constructitm, start of commercial

I-.

I! .

operationj 1. Plant History

I

I2. Orgailizntional Chart I Number of personnel~ operation maintenance qualifications, training.I

3. Type of OperationSt:Ui-UIl, S.butdQwn~Normal S.)'nchronization~ Bla.d{ Start capability, U' I

II any. 0 • I II

i . TIj •

I Annual, semi-an.~Uill, quarterly or monthl)' production, () &, M budget I!

I 4.1 annmgI

!I and eost (pIkWh). J5. Mai", ••"",.. Maint.nance plan, 1,.r.onn.1 .km. ion-ollt., "'luipmentltools, _ I ..-------------------_J

~ Em!k{t~mentaf. ..._.___Phl~ Erwi.n:mmental J1'rognuu _ . -----f-I

. I17, Sftfet.y '--. ------ ..--- . j I I SafetyPlml~. in phH~.e. ..-----.~---.---. ----.-.- ....-.-.."-'.,-' ------------~- --'-- ..~.. ---'-'~'J~m'i!y . ~- l~ Se£ui'lty rl''''IPro~n'min j,l~t.. I~. . -----.Ir 9, Cm~;nHm.ity-)5~;;;;~mt Pn;,j~et . --------e------ -------1 Soun~(~of Funds (e.g~) l~~R-l ..94 --- ..------ ...-----_.--------~ ..-I--.---------.-------- ..-------.----.~.....----.,.-...-l

tl),_i':=~~~~.e(! ,hlrillg ,;fle~~~~-~--f~~ ~~~tI"'-~~~:": .•~~-.-- ..-.~----.-~=-~==~...=..~..=__=.~~-=-_==..~=-=~~.I[,! . Perrot"men By; Revi_I'd Dy 1.,I. ------ ._ _ ..•.•.•...• .• . ;;-.. rI Host 1'1l'.1!lt Rel,resclltll!lVl) S.'JEllergy Regullllim. nm,.",- S"I'"n-1""g E!>'OnNv. Chi"f ','r'IM!) Ii I: r .__. . . ~___ .__ ~ . . ._ !

Effectivity DatePage 2 of2

Super~ising ERO/Div. Chief LlvlI\ID

I Doc~ No. Il\1"»LM-Ol .. lemAI

Revision No.

Reviewed By

Sr./Energy Regu.lation Officer

INSPECTION MANUALGENERAL ADI\fiNISTR-\TIVE CHECKLISTLMl\1D

'TITLE'DIVISION

I ' Perlormed By;

I----H-o-s-t-p-I-an-.-t -R-e-p-r-c-se-n-t-a-H-ve---

PlantfFaciHty Name Location Date and Time of Conduct I- ,.,

OBJECTIVES:..

1. To verify power/plant major offices/equipment, review orgrmizatiowimUvidua! respQnsibmties/ac.cQtm.t~bmties of operation~maintenancet ~arety~ndenvironmental/pollution officers.

.-; 1;, .~< ' 2. To cbeck plant documents and obtain conies neede-d for insnectionlmonitorinf! tadu. ,l!~!: ~, Verified?ITEMS y N RemnriUi Notes iI ll. VERIFICATION I

I IIIf 1.Administrative/Smmol't Offices. Walkdown /visit offices. Should be eJean and ordedy. I

ir 2. Organi7..adonal Chart/Positions I I Signed b~' the CEO PCf-s\imtd Quwin~~tion E::tceededJob Sp~8. II . I Verified office memo on ~afetvl OHS.ooHution officcn dcshmation. i3. Power Plant Control Rooms Verify shift schedule, control room access procedures and air I iI

!condltioniul! system, 1- ! iI 4. Community Deyelopment -,-

Approved and Implemented Program../

iI

I !r II. CHECK/VERIFY COPIES of the fT. I I I!f1. Senice Agreement/Certificate of Approval to I Signed document wHh TR41''iSCO or System OperBtor. I iIConnect I !II' ~.Relevant Servke Agreement Schedule l I Signed document.. II!3. Single Line Diugram Latest and approved. !iI 4. Equipment Specifications . Latest and complete copy. if lr 5. ~afety & Securitj' Procedures/IY.1a.'1ual ! I Current and approved. i

,

j 6. Operation Procedures I List of current procedures.!ri1l1ntcmmce Procedures Ii7. Generation nnd Maintenance Outat!e Reports Verify samples of opcrntion schedule snd maintenance schedule, II 8. Generator Operator Log Sne.et8 A\'aihlble for verifications, j

Prlmemovcr Operator LOj! Sheets II ~. Plant Performanc~ TcstRecords' Request copies. I1 Phmt Performance Indicators Summary RenortsI1.0 EquipmentfUnit 'fest and Heat RBtc Curves, I Request copies. I

"I

:II

':

-~--------lC\?,-J - .-j

j Doc. I-.To. W-LM-Ol - IC..,A (SGI<)I Revision No.

I Effectivity DatePage 1 ofl

Date and Time of ConductLocation

FORSGF

'INSPECTION MANUAJ-IGENERAL ADJ\tfiNISTRATfVE CHECKLISTLM1\1D

ILTITLEDIVISION

. [

Plant/Facility Name

r---,I

III.I -

I!I,j OBJECTIVES: 1. To checK plant documents and obtain conies needed. 2. To verify Dower/plant eauipment !f

.

Obtained?

I,I. ITEj\IS Y N Particular Remarks ITI. VERIFICATION FOR SGF I

II. Obt.ain Phowcopj<' of Industlj' Prome. Information nbout the cOmt}iUl~',itt! product Un(; operation. The information couid be obt31ned. 1'1'om the compEillJ"~ I,I

brocburet4. I12. Photocopy Single Line Diagram (basic Simple Only)

tI 3. Floor pl,an or equipment layo~t. To ascertain no. of equipment and distanee betvreen each on I !Ipro"ision on repair.iII 4. EquipmentSpecs.I5. Photocop}' of ECC/PTO/CENRO I I.r 6. Preventive maintenance Schedule

I 1i

I- II 7. Operating log sheet (summary for the last 3 months) I I Ii ' I

!I 8. Operating procedures: Start-up, running, shutdown. abnornud event, synchronizing 1II 9. Safety 8ystem use in time of an)' contIngencJ~ - _.. ,

!

!I

flO. EnviroIh'llentat COmpUllilCe!..111. Benefits to Hoot Communitietl

I12. Probiems encountered with the Host communitiegI t

I1 INSPECfED U N I T .

I !!n. PHYSICAL INSPECTION Y I N 1 2 3 4 5 6 1 I.1 Ai. ~ame PlateRBfuig

II b. Prime Moyer.1 I I i

I

i

iI c. Generator I!III d. Electrical System,

I I. e. Auxm~ry System ..

I Performed By; Reviewed By,

Host Plant Representative 8r,,!EnerfY Refulation Officer Supervising ERO!Div~Chief Ll\1l\ID

t.;. '~ "

. ~~"

~-~-Jf

IIIII

--'~---l---1I----J

I

Date and Time of Conduct

Effectivity :Oate

Page 1 of2

IJmtNo ..

Remarks

Location

Customer Financing~Aetual Il-roject Cost, Incmrporato,rs orowners, start of project construction! start of cOEmnerduloperation

I

IT" discuss objective ."d .cope or the in,"eet;on and te •••I • .rre mrcmeuts.

~~-_.--------rDOC"No" I1\I-I.Jl\tl~Ol - IL- ..~

INSPEC1-101\f l\1A.~~UAL .llevision No. 0

Y N

Presented

DIVISlor~

ITKM.S

---~._-_.---,,--.-~--~ .._-_._-------

PluutlFacHi. Name

O~;i~~.ti.ye:To check Power PlantOwner/OpcrQtor cOlnplies with the requirements of thej Certificate of Com.pliance (COC) or the PGDC.

r--------.....-

1iJiI 1. M.EE~NG witb Plant Jlvlansgement _

I Overview Presentation of}'hmtManage.menti regarding;Ij 1. .l~hmtHistory .

I : I

j

I

I

I 2. Organiz~tional CluutNumber of personnel, oper.ation maintenance qualifications, training. I ;'

I{3. Type of Operation

Stall-UI), Sbutdown~ Norma) Synchronization, Block Start capability, if

i!

I any.

j4. Planning

ADlma~ Semi-annual, quarterly or monthly production, 0 & 111budget Iii

and cost fPli{\Vh). II

I

I5.l\faintenauce

Maintenance plan, personnel skills job-outs, equipmentltools.I I

I

ii. EyrvironmentnlPlant Environmental P.rogram

II

qi! I. Safety

Safety PIlm l"rogl'a.m in place.I8. Security

Sccurlt}' Plan/Program in pince.9. ComU'umit}' Deve!O)HUent Project

Source of Fmub; (e.g.) li>R~1~94"~-i

Ij' 10•.Problem encountered dm'ing ooeraf:imu

EffectB/irnJ-lact~ tn tJu~community. I

! . ~

I

II ~ i

~--I

I----- .._._-_.1

I Perf offiltd BJ; Re"l~ed I1.y I

III' -----.If-- ....Jf..-.~-.'''_.-.t.-.n..-.. »-P>.~-..""-~-R.-'"..Q-..n-,..-.""-"'-.o..-•. ,,-t.-!ll-ti-.'\.,-;(1;•.',- ---- ----- ...------~. - .• -___ II

,-,~., •..••,." _••••' .o.u .., . S •.,,I J1:n e •.gy H "gill" nOli Oflke~' S'\I"'~,-v18i,,!! 1m,1.)Ink. Chlen ,jYI!\JII

t __ ~-.--=r:-------------- . .._.. . o...--~ _--- . . • .. ._._---.-... •.~. ,,-,.- __ J

------ ._-------------,-----_.- -------_._--------_.-

., [)OC-:-NO:-mjf..LM~~3M~GL..(l'1---_.-_._- ..•.._----f{evwsion No~

TITLE : H~sr.)EcTiON GUIDELINES i:Oi~ . Effectlvii'l Date__ .__ . B~9_M_,A_~SPOWER Pf..JU~-r.. . ....__ .]1__ -' _

. Page 1 of 1

r,.---- ...•.•.....-----_._._--- _._------ ~------_._-------.....•_-~._-_ .•...._._._~._--

DIVISION: LM]VU)

GUIDELUms

1. For the generator,. turbine and boiler outputs, refer to the specific Equipment Specifications for theequipment ratings.' .

Record for each unit the following Name Plate Rating and InstantJActual Re~ding;

Insmnt/Actual Reading

a.KVAb. kWc. Power Factord. Speede. Frequencyf. Voltageg. Current

2. If the parameters observed from the equipment operation deviate from non'nat, investigate forpossible reason/s.

a. For the Generator output, deviaiion!s coulq be attributed to:

1. Dispatch limits/dictates MW and MVAR output2. Limitation on winding/coolant temperature

..3. Limitation on vibration4. Limitation on turbine/boiler output

"

J

b. For the Turbine output, deviation/s could be attributed to:

1. Plant foad limited by dispatch.2. Limitation on vibration.3. Limitation on boiler output.4. Degradation on turbine efficiency5. Operational problem/s on turbine auxiliaryJi~s.

c. For the Boiler output, deviation/s could' be attribut~d to:

1. Plant load limited by dispatch2. Operat.ionallimi'tation/s on boiler; pressure and/or temperature3. Operational problem/s.on boiler auxiliary/ies4. Degradationof boilerefficiency

3. For the Generator Au~liaries, (for H2 gas cooled generator;) . , ..a. AC Seal Oil Pump provides the sealing oil to prevent escape of the coolant gas 'at the

generator shaft. ' . . '.. . .", ..' .' '. ..c. The redundant AC Seal Oil Pump ensures that s'eaiing oil is available when the other pump

is out formaintenanC8.l c. TheDe SeaJOil Pump is provided for safety, so that in case of a total AC power loss, .. ._. . ~_s._e~!Lr:!9_.2~can stiU b~.~g!!!!DU2~~Yy..!:!Pj)JJ~-d. ._. ~_

-t'" •. '.' ,

!

Iji!!Iii "l , ...

1

IiI

I


Effectivity Date

Page 1 of2

Supervising EROfDiv" Chief Ll\11VID

Unit No.

c. Others

Reviewed By

CJs. Dispatch Order

lb. TurbinefBoHer DefectiveIDegradation [=:Jc Foundation DefectivelVibration I:=J

I d. Short Main Steam Suppiy/Operational ~

II Problem '

e. Others t=1

.1 a. Tube LeaklDegradntion I Ib. Short Fuel Supply I !

c=I

iI a. Dispatch Order

I ~.~~::~~~:t~r7~efec:iVeJVibradonI.....ll.i.,,'" ••.•.•..•••,,' Hulin!!> Temp.

I d. Due for o'\'crhauiJDegradationI c. Others

I

CJCJ

Location

s. Low Output C]

System/ComponentCondition

c. Not Running

s. Lower Output

Sr./Energy Regulation Officer

1 b. Not Operational 0

II •.Low Output 0II b. Nut Opcrntional 0

I

Ny

I- Operational?I

1

Performed By;

~-'-------------....------€fbI', , \ Doc~No:TI,{ ...I"INSPECTION MAr~U.l\L Revision No"

INSPECTION CHECKLIST FOR'BIO I\1ASS PO\VER PLANT

LMMD

TITLE'

DIVISION

Plant!Facilitv Name

I-Iost Plant Representative

OBJECTIVES: To hupect plant gystem and component and monitor its operation.

System/Component!Parnmeters

ITEMS

i

I,3. ~oiler ond Aum;.r;.'

I

1

I L Generntor AmdHarlesName Plate RatingVoltage Frequency _rower FactorDependable Capacity _Actual Capncfty

12. Turbine and AuxiliariesName Plate Rating _SpeedDependable Capadt;iActual Capacity

-",,;. ~.-----------~----~---(~~;<~) I.Doc. No. Th4>LIV[-f

INSPECTION MANU.l.t\L I Revision No.: .INSPECTION CHECKLIST FOR BIO MASS PO'''ER PLANT Effectivity Date: LMI\ffi Page 2 of 2

.PlantIFaeility Name Location Date and Time of Conduct

-~tI;

I

Il.i

h. Component Defective

a. Short Fuel Supply

ower bmt items and obtain arameter8 values.System/Component

Condition CauseITEMSOBJECTIVES: To conduct

.'4. EI<.ctriCl!! EquIpment

I.Main TramformerCircuit Breai,erI Disconnect Switch

I " .

1

5. Fire Protection SystemPump .

II Storage Tank" -PipingIBoses .

CJCJ

III

" I I III

Ii

I(

I II I

II

I III III

III'

I I III

I II

j

Perfonned By; Reviewed By -. II

Ii'

I 6. Envirmimental Protection &. Monitoring SystemI .II

1______________ _______________!IL H_o_s_t_p_l_an_t _R_'t:_~p_r_e_s_en_t_a_tI_'v_.e ..:.--s:J.r_.f-:.-EL_n_e_r_~_~r_R_e_

g_U_i_8_ti_O_U_O_.._ff_lc_e_r s_u_

p_e_n_

T

i_s_in_g_E_'J-R-O-"/D-' _I_'V_"_c_h_i-:-e_f_L_IV_'D:_"'_ID_. \4

(I

,/-_.\'.". "J----

~"..,' .:'.,~".;./.'.~~.. I~" '~';,Oi>.~:~:I~,:~/]~~.:::\::I.:t:.:!;.j;V';/~:'I~:'~'?'>'..~,:.,,:<:.1-.-._-._._-.--_....- -.---- ..------.-.-- ..------.--.-.---.:".~~.:~:3;;:.~.~-....'2~~:No:"Iftn:[M~DE_=G[-=ij2------_..

ir~Sp[u:clWIOt~ Af\llJj~i~.;';',:...:i:,.';>,. ~tev1$ionNo~-'-' -. --- .._ •.._._-----------'---. __ ._-------..._-_ ..~•.,._------"'-,---,_.- ..•_---_._---------. I ,

INSPECTION GUiDELiN~!S ~';O~~. "':'<,,: , ,

DiESEL POWER PLANT . Ef~~~'c~vi'lt~iIDate----------, .---------~-.--. --------- ..-,_. I)~ge'l of'} ,

IJIV1SION : LMlVID'------------_._-------

I A. R!,cord for each.J!.!llllhe r~

IName Pla.te, Ra. ting .

HP . _, J{W ______'FrequencyRPMVoltageCurrentPowei' Factor _

GUIDEtINF~S

>! ,

B. HEAT RATE CALC!:!b8]lQ~

Neat Heat Rate in BTU fwr !tw~ , Fuel in== (Total rfe~Jt of Fuel Consumed in plY}, (~Jet Electrical Output in 1t'Wh) --~

Cooling :a,", [ .•.•Total Heat of Fuel Consumed h'~BTU:: Fe x LHV x 0 OutWhere; . ENGINEFe :::;:Fue! c-onsumpuo. 01@15Gcmeasuredinliters,asdetemlfin&dbYfFM1+.FMn}TFM1 ::: Fuel Supply Reading x VCr: x MCF - of unit 1, Mass Flow Meter

Fuel Supply win be mea.sured using a Fuel au Flow meter

== Fuel Supply Readings x VCr: x MCF of each unit (s) additional M~ fiow Mt.'I:t\7lr is) . ~~ling:= Volume Correction Facoor@ 15°C, based on FuerTem~rature.:::;:Meter Correctiun factor, based on Latest CaUbrnUon Report.=:: Low Heating Value from Fuel Analysis of TeslFueJ:.;Density from Fuel Amd};"$ls of Test Fuel

Ft\"nVCFMCFLHVD;

.(

. pata Progar'!!!QDs and C(;IJculations

The following data collected during the test should be p~'\S!pamd f(~r calcu~tiom~.Average temp!ratuB'e1pressure data over the time ofth& record. Temperatures averaged for the calculations are:

ACTUAL VALUE

kWhliters

____ HtersJJ(\f.Jh

____ oC_____ kg/cm2

____ oC ,____ oC

1 Ambient air temperature2. Baromemr pressure3. Fuel oU temperature near vQfumetric tlow meter in the b('u:uj;terskId4_ LT cooling water temperature entering the charge air coo-ieTS5. Sum the m$gawatt hour production from the biUing met.er and thif-i a\l'e~llge the.

results of the ten minutes Intervals6. Sum fuel oU consumption and adjust it for fuel on me<ter caUbr.ati<m7. Calculate nominal output and specific fuel oU C(H1SUntf~tJ061 af sit~ cOlll1dIUons8. Calculate ISO 3046 corrections and apply tMm to the site results to arrive at

tbe final corrected ."&Sults.Total Heat Input of Fuel

l"he TotaJ Net Hoot Bnput of Fuel in KJ/hr or kc~lIhr at Site condition i$ dewrmined by multiplyingthe weight of fuel input {Net Fuel MasS Flow) by tile heating vaJ~e {lH'V} in ~UJkg or kcaUkg.n)js, is then conv~rted toBTUlhr using standard converston formui~s. '

Net Gerieratj\t>n kWh

fuel Lower Heating Value (LHV) .__ kJJhr or kr;aUhll' or Btu,ij~rGro$.s Genef"dtof Power Output kW 'AuxUiary Po\'wr kW

Generato~~Power Factor PiFuelDensit~r _kg/eu.m.

Net Heat Rate CalculaUon

The Net Plant Heat R:.i:te at Site Condition is computed as foII O\lhtS:

BTIJ/kWh == JotaLl\Jet l~eat Ineut of Fuel {Btl!!!!!:)

L Net ,Plant Power Output (Wi)

. The Net Plant RaIl, at Site condition Is then adjusted by ISO 3tl<laI1 "",thod" to obtain ti", Net Plant Heat' . _. Ra_.!eat Ra~!~~~_~.()~t.Utkm. . , _. . . .__

,I

.("'i

lII

Remarks


Effectivity Date

Page 1 of2

I Doc~ NOG IM:~L1\I-01...DE-I( .:JRevision No"

Cause

R. Internal Partg Defectiveo.Foundation Defective

d. Due for overhaul

c~Jligll COutant Temp~

e. Others

Reviewed By

I e, Others

III a. Dispatch Order

I b. Engine DefectiveII c. StatorlRotor Defective

d. High Gen. \-Vinding Temp

CJCJCJICJCJ

CJICJICJ

1

~Ia. Component Defective [=:J

I h. High Temp. r=JI b. Instrumentation and control 0

IDevice Failed I

c. Sj.stem Process Failed I I II d. Due for MaintenancelRepair [::J I

I e. Others ~ I '


8.. Lower Output 'C=Jb. High Vibration c=Jc. Not Running CJ

8.. Low Output ~

b. Not Operational I I

s. Not Operational

h. Too M.uch Noisec. Too :&-1uchSmoke

I d. Excessive Leak

I c. Too Hot Area

I

II

Y NOperational?

IPerformed By;

INSPECTION MANUALlNSPECTION CHECKLIST FOR DlESEJ-.4 POWER PLANT

LMMD

ITEMS

NamePiateRating __ (kW/kVA)Frequency Voltage __ Ampere __Dependable Capadtj' k\VActuai Capacity k\V

Frequency __ Voltage Ampere __

2. Generator

1. a) 'Primemover Engine

!Name Plate Rating (HplkW)

Dependable Capacity k'W

Actual Capacity' k\V

b) Turbo Charger

c) Unit Integrated Control

3, AuxiliaI')' S)'stema. Service water ~

Cooling Tower! RAdiatorPump/Piping

b. Air Intake Systemc. Engine Starting/Stopping Systeme. Air Exhaust, Chimneyf. Control Air'g. HVAC

£lantfFacili . Name Location Unit No.I OB~~!TYES: To conduct pbysicwvisuftl inspection of power plant items and obtain equipment par&meter values.

!

II System/Compollcnt!Parameters!

Host Plant Representative Sr,,!Energy Regulation Officer Supervismg EROJDiv., Chief U.BU}

II

Remarks

CJ

oC1CJ

;~~<Zk~ - . "" 'l! 8:~" !JDoc ..No. IM:-Ll\l~Oi.- _ A!J£<~0=02

, Revision. NOe

II Effectivity D~tePage 2 of2

Cause


It.Eqpt TvIalfunctionb. Personnel Error

c. Others

Reviewed By

b. Defective Pa.rts

Co Cooling System Failure

I ...Component Fail" •.••

I b. Service WEtter S"fltemI ' Failure1 c~Oti1ergJI ...System Grid or

I Distribution Fanureb. On-going l"daint

II a. Spurious Contact

I,D.For f'l'1aint. Action

Co Others

I

CJCJ

CJCJCJCJ

Location

Spillage/Contamination CJ

II a. Trip~Unit

I'" Leak

I

I h. Low level

b. Component Offe.High TempI d. Alarm Lltll .

A. Alarm On c:Jb. Level Low CJc. -Expire/D~te Excuded c:J

I

II

Others

ITEMS

uel SystemType of Fuel-,' Diesel_HFOStorageJ,'ank

'Pump-:' '. Proces,sJ'pmg,

Performed By; .

Pl~ntIFacility Name-

LOBJECTIVES: TO' conduct hysical/visual ins

/' 6. Fire Protection

n. 'PanelI b.Pump'I c. Water TanklHose/PipingI '

! d. Foamlvvate.re. Firn Extinguisher

7~Environmental&. PoUutionMonitormgb. PoUunon Control

" I S. Electrical SYStem. ' "/,,/1' '0 a.:Transformer (Rating_KVA)

, b.Circllit Breaker II ',' ,c.Disconneet SwitchI d, Swilchgear COlltroll'llJIO! I

I

Host Plant Representative Sr.lEncrgy Regulation Officer Supervising EROlDive Chief LIVil"VlD

TITLE

.' D1VISlON: IJMMD

GlJID.ELINES._-------.,..-------------_._------------_. -_. --------------8.1.-.J!ecOffl for each unit 1be foJaowit~g;.

Name P"ate Ratinga. Tumin~

.&W

b.RPM

c. Generator.VoltageCurrentPower Factor

~:_Formura:

Qt :::::heat generated by fu~1 =: (M.Ji fr} On ::: mf CAll

,Where: Qh = heating value of fuel kJlkgA.ctual Nat Worlc~Wyf - WTf - w_Thennal EffiCiency:; ~!1--:tlt!f- W..m

~(Gas Turbine)Overall Thermal Effteiency =: Generdtor QutptJt

OfCombuStor Efficiency =: Heat absorbed By Air

Heat Supplied by Fuel

1.2.

., ,'';

For the ~rt turbine and HRGS outpub't refer to the equipment SpecifiCBlfions for equipment r:mings.It the pa~l"S observed from the (;l!.lunpnwnt operation deviate from normal, investigate for possible reason/s •.

ai. For tite generator output, deviatiorus could be attribute to:

1. dispatch limimJdictat:l"tS MliVand MVAR output..2. limmmononwinding!~lant temperatum..3. limitation on vibration4. limitation o:nturbine /boi~r output

b. 'Forthe Turbine output, deviation!s could be attribute to:

',. plant load IimfWd by dispatch2. limitatiOn on vUnatioo3. frmitatiooon boiler output4. . degradation on mrbinaefficienq5. operation probfemJs on tllrbine awr.iBiarylies.

For thee.oooenser and AuxiliariesCll. r0 maintain cooling effuctMW IOn the condenser,

1. On the cooling water side of the condenser, ool1TrlaUy a backwashing system is installed toperiodically b.ackwash debris on 1he tube sheett in some instalJation debris filter assf!mbHes areinstead pr~vidE>d. .. .. . \ .

., 2.' Wi addition to the backwashing features 00 debris finer assemblies. some ins;taHation are equippedwith ~()nden$ertube cf..eaning device enable periodic on-line cleaning affue condenser.

b. .Two sets of Circulating Water Pump are provided normally, so if a pump is out of servic:e forrepair/maintenance, ffie Unit eM sun operate at harf toad. .'

c. RedundarrtCondensate Pumps 81m lI'tormaUy ms>taffed 0 thart an extra set is on standby andstm the Unit can. C3iTYfuU Wad.

C1C Plant Heat Rate,.: ...Calculation of Fuel Gas Mass flow Rate

.. ,: . . ,,: ~..'::.:' ~.~.,; ,',' ..:..•, "~"" . .•.. .

.¥\ffg(cf::=;:.:: .Mg ;;'<~~:-';, .•••. ,.•.. " .• v~t~re: wfg{C) Calcu&t:l:ftedfuef mass flow rate of the pf.ant {kg/h}(~;pc~IR~f;{~~~~~j~~$~;~:C4lcu_ RIelgas mass fiow ..

HRNC~ci ::u. WfJc) * LHVg{fuf~:<:::~te: ,<.... ;. l(WhtICC{Cl .•..~•.•;:;'<':::?:f':::~~;i:,.:. : ...•. iR~lc~. Cafctdilltxui ()f Measured NetlCC Plant Heat! Rate'.L '. . .'..· -Wfg (C)~ Calculated fool gas mass flow ratl! of the plant {~'g/h)

.: :';: LHVg(m): Natm411gas UiV based on tile anaiysis of gas components---.-.--------_.-- ..._"...._..''_.'.._:._kWh__ ~): CaIUiE!ted_ M~Urted NetlCJ~ .'lam Output J~ ._

' •• 1.•.. : .•

of2


f .JlP'U"~()J.~v~Jli...,J,..T.&. ../if-I;lhS"-' __

I Revision N'o.I

Effectivity Date

Unit No.Location

TNSPV C..1.....1[0 .. N'- ~ ~Ai'TTU'ALALE A. 1 i\l1 J.~ . .' •

INSPECTION CHECKLIST FOR COl\ffiINED .CYCLEPOVVER PL.A.NTLl\'il\IDDIVISION

PlantlFadH 'Name

I Objective: To conduct pbysical and visual inspection of combined cycle power plant.I -. .

I Op~~8tional?II II 11'£.1\'18 System/Component I Cause Remarks

Condition I I.,

! ....

j SystemiCorn ponentJParameters y N I 7

I I I 11 I

II

II

C..:enerator and Auxiliaries Block A MW 1

- !IName Plate Rating - ~f"w I I

I I a) Low Output CJ 11. Dbpatch Order CJ II '<1 Gas Turbine Unit 1I 1.. b) Shutdown CJ 2. Component Defective CJj Ii Rated Output l\f\V

I3. Due For Overhaul CJ

I -I Speed _rpm 4. Fuel Supply CJI ;

I.. 5. Others CJ

I 11. Dispatch OrderI I

1.2, Gas Turbine Unit 2 a) Low Output CJ CJ I II- b) Shutdown CJ 12. Component Def<ctlve CJ I II

Rated Output 1\1Vt' 3. Due For Overhaul [:=J I- ISpeed - rpm I 4. Fuel Supply CJ . II

I CJ II 5.0tllen

I Steam Turbine n}Low Output c:J 1. Dispatch Order CJI

I ~I .•.•CJ I 2. Component Defective CJI . Rated Output. . rtt\V b) Shutdown

I - I 3. Due For (h'ertumi' c=I~ •• >. ._rpm. I•..•peea

II CJ I4. Steam SUPP!y

I - 5. Others CJ iI I

.., Performed By; Reviewed By; I. I

, ,.:HostPhmt RelJresen.tative SrJEnergy Regulation Officer Supervising EROlDiv. ChiefLIvIMD I

I!

• 1

lI~'I

I

~~~''----.;;, l

I

~'II

Doc~No..IM-Ll\i ...Ol CC-ICRevision' No.E~ectivity Date

Page 2 of2

Supervising EROlDiv" Chief LJ.\tflWD

Reviewed Bv;"

I f i

Sr .!Energy Regulation Officer

0.1

PerfOtlned By;

INSPECTION fVlANUALINSPECTION CHECKLIST fOR COMBINED CYCLEPO'VER PLANT

LMMD

U b'n fd

TITLEDfVISION

,"Host Plant Representative

f---- -_-~_-_-L_-o~c_-a_t-_.lo-._n~~~~_=_~_=_ =-_0 -_a-t_e=a=r-~;d=-T_. -_im~e-._-_O~f~c=o~n-._d=u-c_t= _!Ij'.. "_,l r : ,liG vcrlV' nva 11 1 tyo ocuments an . or recog', fi 0 t ie plant h .t S cOffiP[umce with the reQuirements of COCo i

I ' ,.. -," Ooerativmd ? I Sy~tem{ComponentI, .:~r,. ITEt'dS y I N

ICondition Cause I -, Rem:u'ksI: !

! 14$ He~t' ':R..ecovery-Steam Generator Sy~tem I 1. DiS}lntchOrder , I I I!: a) Stearn Generatot ft) Low Output CJ 2. Component Defectlve ~II b) Steam Piping Ib) Shutdown r=l 3, Due For O"ernaulI c:) ReHeaterI I

I d) Feedwater System I ~ Fuel Supply CJI

e) lvInin Ste&m Sj'stemIJ I 5. Others CJ,

I 5. \Vater Cooling System I III~ Fire Protection II

.....a) Pump

I;

I.J Ib) Storage Tank I

I I! C} Pipings!Hoses I II 7. Lubrication and Oil System~

II

I' , I

II

j IIs""'" dA n, • "j I I I'. t-,onaenser an UXl!UU'lesI I I! 9..Wftste \VJ1ter Tre~tment find Hamm.ng I 1 I I!

I I! ! I

I I

I10. Environmental Tvlouitodng I _I,8pmage/contluninatiou I 1. Failure of Sy~temI

I!

I 11. HYACI I II

I

--_._--_._--------------_ .._._------_ .._--

DrVISJ[ON : LMIVfD

E'ffecth«ity Date---_._--------,-----------_.-'Page 1 of"!

U\lSPECTION GUIDELn~ES FO[-lCOAL "fHERMAL POV1JERPU\~fr

TITLE

(t';'r"-.

:;..;•...._-------

i t~ Record for each unit the fono\t\",jn9~

Instant fActual Reading

KVAkWSpeedPower Factor.Frequency'VottageCurrent

B. IHfiORlTICAL Formula For Thermal Power Plant

The following equation shall 00 used for the calculation of t11e turbine net hem rata.

HRT (NEn:= (M1{H1-hf) + M2lli3 -: H2) + Mis {H1- his}.,. Mir(H3 - hIR)}PN

Where:HRTM1M2MisMrRHiH2H3hfhIshirPf'll

: Turbine Heat Rate (net): Stemm flow to Hp turbine stop \lalves; Steam flaw from HP exhaust to reheater: Supierheater attemperating srayv'O'tder flow: Re:heater affemperating spraywaterflow: Steam enthalpy at HP turbine stop valva: Steam enthalpy at HP turbine exhaust to reheater: Steam enthalpy at IP stop vafva: Enthalpy after final feedwater heater: Enthalpy of superheater attemperating spraywater: Enthalpy of reheater attemperating sraywater: Bectlical power at generator transformer HV iennRn~Es

t(JJkWhkgfhkglhkglhkglhkJ/kgkJ/kgkJlkgttJ/kgkJlkgB",Ukgk,JJlt '

1. For the generator, .tIl.lTOine and boiler outputs, refer to the specific Equi!)ntent S~'}eCfficalti()n$ forr the equipment ratings.2. If the parametJa.rs, observed from tha e~uip.ment ().~ratiol1 d~i:ate frorn oor'lIna!. investigm:e for possible raaslOws.

'l. For the Generator output, deviationfs could be attributed t.o;

b. OispJtclt limits/dictates MWand MVAR~?utpmc. Limitationon winding/coolant telupercdured. Umftatkm on vibratione. Umitatioll cn turbine/boiler ootptrt

b. For the Turbine output, deviation/s coulid be attributed to:tt. Plam load limited by dispatch.b. limitation on vibration.c. Umitation011 boiler output.d. Degradation on turbine efficiencye. Operational problem/s on turbine au:xiliaryfjes.

c. For the BoUer output) deviationls coukfbe attributed to:1. Plant load limited by dispatch2. OpernHonallimitation/s on bi,)iler;pressurn and/orromperatull'193. OperatjQn.~fpmblemls 011boiler auKifiaryfies4. Degradation of boiler efficiency

4. For the Generator Auxiliaries, for H2 gas cooled generator;1. JACSeal Oil Pump provides the sealing oil tlO prevent escape of the ooo!.i2ln'it gas at fue. generator shaft. .g. The r~undant AC Seal Oil Pump ensures tTh"rt sealing oil is available when the ofu~r pump is out for maintenance •.h. The DC Seal Oil Pump is provid&dfor safety, so that in case of a rota' AC power 1o$5~sealing oil can. still be

continuously supplied ... .


Revision No~Effectivity Date

Page 1 of2

I Do~ No" ThI""L1\,f ...01QCF""I~I

Unit No.

Reviewed ByPerformed ~y;

:h,i,J

INSPECTION MAl~bALINSPECTION CHECKLIST FOR COAL FIREDTHERrnALPOWER PLANTLMl\ID'

TITLE

I.DIVISION. ,III

I Piant!Facility Name LocationJ OBJECTfVES: To inspect plant system &nd component and monitor its operation.i

1

.._ .._-

ITEMS Operational? System/Component Cause Remark!!I Condition.System/Corn.ponentJParameters y NI

i I 11. Gene~atorAuxiliaries 3.. Lower Output CJ I n. Dispatch Order CJIa~Name Plate Ruling KVA

c. Not R.unning' CJ 1 b. 8tatorIRotor Defective!Vibratiol1 CJVoltage kV FrequencyI I c. High Gen. Winding Temp. CJ

,Power Factor 6/Q

IIb. Dependable Capacity lurA

I I I d. Due tor Qverhau1'D~rada.don.CJ I

c. Actual Cap2dty KVA I e. Others I 1 II

ll. Low Output CJ2. Turbine a.tlU AuxiliariesCJ tt. Dhipatch Order

a. Name Plate Rating l'"rW b. Turbine DdectiveIDegrndatlon CJSpeed rpm .,

I b. Not Openltional CJ c Foundation Defective/Vibration c=J Ib. Dependable Capacity KVAc. Actual Capacity (As Read) k'VA I

d. Short Main Steam Supply L---iII

CJI e. Others~. Condenser and Auxiliaries I ,

CJ II It. Not Operational c:=J a. Short VVater Cooling SupplyII o. Due For Maintenance 81c. Others.

4. Boiler a.nd AuxiliariesCJ I a. Dispatch Order CJ Ifi. Low Output

If b. Tube Leak/Operational Lim!tationl ,

b. Not Operational CJ I c. DegradationIDcfective Aux.. CJI

, d. Short Foel Supply CJc. Others CJ

Host Plant Representative Sr./EnergyRegu.lation Officer Supervising ERO/Divo Chief L1V"1I'"ID

I

"III

Remarks

Page 2 of2

CJCJf I

IDoc: ~o. jM':LM-Ol- CF.RevIsion No. 'E~~ t'o. D'deC'IVlty ate

r=JCJ

c:JCJL:lCJc:JCJc::JCJCJCJCJ

CJCJc=JCJ

Supervising ERO/Div9 Chief Ll\rlltID

Reviewed By

a. Equipment Defective

b. Others

a. Defective Componentb. Due For Ovei'haulc.Otnerg

a. System on Standby Mode

b. Due for Maintenancec. Spurious Alarmd.Othen

!L Defective equipmentD.Others

j 2. Defective CO,mponenth~High Cooliqg Temp.

c. System.s DisturbancesI d.Othen

a. Short Fuel Supply

b. Component DefecHvec. Others

I R. Component Def~tl.ve

b. Others

CJ

Dj I

CJ

I I,C=]CJ

Location Date and Time of Conduct

ower hmt items ~nd. obtain arameters values.Sj"stem/Componeut

Condition Cause

b. Trip

a. Not Running

i. Not Running

a. Short \Vater Supply

b. Not Running' '

a. Not Running

b. Leaksc, Panel Alarm

a. Contamination

I a. Not Operational .

SrJEnergy Regulation Officer

INSPECTION .MA&'bALTITLE INSPECTION CHECKLIST FOR COAL FIRED THERIV"1AL

POVVER PLAI\TTDIVISION :' LMl\ID

'ITEl\1S

PlantlFaciiity Name

OBJECTIVES: TO' conduct

I!

1 12. Lube on Supply System

H. Environmental Monitoring & Mitigadrlg System

, I 8,.Electrical SYBte~ 'I" ' , 'I ' Main Transformeri, I ' .' Circuit Brea,ker'! " Di3cmmed Smkh

I ~fu~~~1-----i Host Plant RepresentativeI

,,l t 10. Feed Water SJ'stem

I

I

I 9. Fire Fighting SYfitemI ' ,I Pump

1TankPiping&'HG~e8, '

) j

Effectivity Date---------------_._-Page 1 of1

_ .._--...,_ •...._ ...•....•..•...• _._ ........-.. ••.•......•..•.•.... _---... ..•_~_._...•_-_ ..._.__ .-

TITLE . · INSPECTiON GUiDEliNES FOf~GEOTHERMAL f;)OWEf~ PLAi\!l~------~-------_._---. --_._._---------_._---DI\llSION : L1VIMD

-------------~-------~._•..

KVAkWSpeedPower FacrorFrequencyVoltageCurre~tt

------ _._----

--_._--B. THEORETICAL FORMULA:

!TIll ::: mass flow rate of ground water or fluid.

rna ::II rnass fk),H rate of steam entering turbine

Mass flow rate of steam entering ilia turbine:

ms ::;;X {mg) Where X ::::quality of steam after throttling hj :::~

rurbine Output = m ••(h:s..J~}nr Gd,mernror Output::; Turbine Outl-'Ut x 11'9

. Where: nt ;::;:Turbine Efficiency

tlg ;: generator efficiency:

h;s ::; Eniilatpy of s(eam

hs :: ,Enthalpy of condenser fluid.

hi :: Main si.eam enfr~lpy !l~fore furottifing

h~:= Enthalpy ()f stealnat furbfne outset enrering turbine

He£-{tRejected in Condenser::; m(;{h4-1h:,;)

Overall Plant Efficiency::; Turbine ~mghf

::..__ \[isuaHy if1SQf;h~tthe foUowillg maim: faciliti~~_._--_._----_. __ ._-_._---------......,...-...------

i. Power I-fouse 6. Steam Gathering and Sl{pply Sys.tems

2. Steam Turbine & Auxifiaries 7. Main Transformer & Switchyard

3. Generator /1 AuxiHaries 8. Maintenance and Repair Shop

4. Circulating Water System 9. Fire Protection System

5._~.~.mdenser .10. Environmental Mitigating and MOE~_ito_ri_=ng_S...•y'_s_t_e_n'_ls . __n. Factors affecting turbine generator outputA B

1. Actual Steam InJet Bowf pressure lower than rated value and/or 'the difference of main steam supply and steam InletBowl pressure is greater than zero (scallng at turbine nozzle in progress).

2. Actual Condenser vacuum lower than rated value:

a. Leaking at condenser and piping. b. Condenser levefhigher than normal level.b, Gas extraction system inefficient

3. Gas Extractj,on System-Steam Ejection System in Operation and the Me('.nanical Gas Extractor not in Operation.

4. I-.lotwefi Pump; only one (1) pump in Operation and/or conlrol valve defective

5. Actual Cooling Tower outlet temperature' higher than designed/declared value(30 "C).

O. Turbine IG'ef)f~rator vibration abnormal.May be caused by scaring, scouring of turbine blades or erosion of blades/nozzles

-\ 7. Generators winding tempemfure abnormal (cooring water system b'1etficlent).

8. Dispatch Order from System Operation to operate at reduce capability andfortransmission system not sufficient to carry the rated output of plant

x x

)~ xx

X :

XX

XX "X

x'.x

. LEGEND:J;~REDUC':E OUTPUTB- SAFETY AFf'EClEO ; ...

L •__ G.~_9.!!btJl1f OF ElEC"fHJCrry A~EC1~~!? . .__ . . _

0,f l'oooCJCJ


Effectivity Date

Page 1 of2

IDoc. No.lM-LM-01-GO~- 2}Revision. No~

Supervising ERO/Div. Chief Ll\-fl\ID

Cause

Unit No.

e. Others

Reviewed By

.j

a+Dispatch Order

I b. Stator R.oforDefective

Ie. High Gen. Winding Temp.

d. Due for GverhatdII e. Others

. a. Dilipatch Order

b. Turbine Defective

c Foundation DefectiveIVibration L:ld. Low Stemn Supply CJ

I e.Othcn CJ

CJCJ I

CJI

c=J1CJI01

I '"Defective Equipment

lb. Low Water Supply

I e. OthersI

I a. C{j{..}UngVVater Shori Supplj:'

b. Detectiye Equipment

CJ

CJ

CJ

CJ

(,'f.o •••.. ~;;;.

CJCJ


a: Low Output

b. Nat Running

b. Not Operational

b. Not Operational

i

I a. Lower Output

S:r.lEne:rgy Regulation Officer

I '"Low Level

I b. Not Operational

N

INSPECTION IV1~L\NfJAL

y

Operational? I

I

IPerformed By;

:INSPECTION CHECI<LISTFOR GEOTHER1\fALPOWER PLANTLMJ\!In

___ f\'IW___ rpm

ITEMS

System/ComponentlParameters

Host Plant Representative

l"",N3me Plate RatingSpeed

b. Dependable Capacityc. Actual Capadt)' (As Read)

I, a. Name Plate Rating KY.AJl1/N? j

Voltage __ ' ltV Frequency -__ II

Power FaClOi'_ -==== % Ib.. Dependable Capacityc. Actual Capacity 101Af!~W

2. Turbine and Auxiliaries

3. Cooling 'Vater System

4. Condenser & Auxiliaries

'!i);"<J'-' )<"~,' ,ir A), ~"l,:r .11 '

, "I' ~ ~ " fi>.:/i ,/ TITLE'~t.IPP\~ ' "'. ' .

nf\TISION'

II PlantlF.acility Nanle Location

IOBJEC1lVES: To msure that the plant observes operation and maintenance to acceptable level.

',: ..

. Rema.rksII'

CJCJCJ

Page 2 of2

Doc ..No" llvI-L1\I-01-GO-IC'Revision No"I .Effectivity Date

Date and' Time' of Conduct

Ij "" It • CI a. YC!ectwe omponentI D. IDgh Cooling Temp.

I, C,. SYfltem~ D18turtnmcesd. Othern

I ft. System on Standby Mode

I o. Due for Maintenance'-=:' Aol! c. upunow l"Usrm.

i d.Othen

CJCJ

Location

D.Leaka

a. Not Running

ower lant items and obtain .R.r~meteN values.System/Component

Condition Cause

c. Panel Ahirni

I a. Lower Outputb. TrIp

INSPECTION f\1ANUALINSPECTION CHECI(LIST FOR GEOTHERMALPO\VER PLANT

:. LMMD

TITLE

DIVISION

I

j17. Env;ronmental Protecnon & Monitoring System III I I

I I L n r-1 I, a.Undergmund Supply Problem r-la. . owvutput L-..J L--.J

I 8. Steam Supply System I I I b. PipinglFlagh Tank ",lProblem CJ

I I I I

I----H-o-~-t-p-I-a-n-t _R_e_p_r_e_se_n_t_a_ti_v_e perrorme_d_:_:_':_IE_:n_e_:r_g-y-R-e-g-u-lll-s-ti-o-n-o-m-t-lc-e-r--- Review_:_:_:_:_~_j;,_' s-in-g-E-R-O-m-i-v-. -C-h--ie-r-L-: Mr-1'1-vID-. ---

Plant1Facility Name

OBJECTIVES: T(li conduct

II . . ,c. . ITEMS

," .[, . "".,',. :..... .

.:11 ;(EI~ct~cm.&Switchyard Sy~tem,.' !' ,Imin Trnnsformer '

. . I Circuit Bn:aker, '. .'. 'j' . Di~con~~c~:,,~lVitch .'

I .i

.1, ' .

. i 6. Fire Protection SystemI Pump " '.l Storage .Tank .I Hoses/PipingsI .C~ I Halon System

I

~. Record for each unit the fOIlQYltinq;

Name Plate Ratinga. RPMb. kW .c. Voltaged. Currente. Power Factor'f. Frequencyg. Flow Capacily

------

------..•...•...----~--

Instant R.eading

--------

-----.----_._--B. Formula:

(tlWwo) ::: (ps./p -1) x Pg

where: Pg::: measured generator outputps = specified water density.p = water density based on measured temperature

11~_~~~'l~;/ Hf!a\fwamr

Gross Head: Hg::: HV\IL - TWLNet Head : HN= Hg- H ..

where: Hg . ::; Gross HeadHM :::Head Water LevelTWl :::Tail Water LevelHn ::::Net HeadHr ::::Head Loss in the water conductor

COlTection for water Density (AWwtI)

(IlWpf) :::Correction for Power FactorCorrection for output - ( Pc)

Pc:::: .Pg- (I1Wwo) + (AWpf

1. Inspection of Hydro Pcrwer Plant can be divided into different fields such as :

Turbine IGenerators, \J\/ater passages with Gates Auxiliary systema) Cooling Water

b) DrainWater

c) Ventilation

Ail irregular condftJQtls are to be recorded.

1. Usually efficiency measurements of turbines are C"..anied out after a major overhaul and latest information or records must beChecked/obtained if required. . , .' '., '",

2: Look: at records of monHoring equipment or printouts pertaining ti.'Joutputs and parameters that are online implementation. •.3. Data of efficIency and vibration measurement are useful. It is important to know the efficiency and Hydraulic Head Losses. Requestfor this infom"lation .

4. Verify pla.nt procedures documentations and records (sampling only) like commissioning records, car-Litieates from relatedgovernment agencies. . . '. .

5. Any special instructions for risky operatlons ..Please note that documentaiion of remote eqlJipment such as; penstoc~s, values,gates. trash racks,.adit doors and dams are sometimes poorfydocumented.' ,

6. Look for records measuring periodical standards, functional tests, in-plant inspections and specjalmeasurements. This will aid theinspector on Si.Jme inspection evaluation and analysis.' . .' . .

7. The actual IileaSurement recorded must be seen in relation to the .plant's operational parameters, e.g; hydraulic head, generatorpower. etc. Restriction such as System Operation. Dispak..h Orders. level of water in the dam, inigation requirements and electrical

\. line maintenance affect tile output ofttle plant.. ", '.' './;" . . . ': . ~._ . . .,' ." . .8. Statistics covering operational irreguJaritiescaused by failure or malfuncfion of components' are most valuable information. This type

of statistics are inc~.asingty used by regulatory bodies.' '.- .". . . '... '. ' , ..'

9. If time is available functional test such as responses of turbine governor, opening Iclosing time of turbine, valves and gates, load1 relection and run-away protection.areJrnportant infol1naticm ~ich may be 1:l9ded to frl?...£:-!!eckHsts. '. _.. ,

• "'r- •.f. ;':.;"':.,r~.-;'~:~('. . . " ,


Page 1 of2

IDoc. No.IM-LM-iJ1-IlT-I Revisio'n~.J 0"

Effectivity Date

)

INSPECTION MANUALINSPECTION CHECKLIST FOR HYDROELECTRIC POWER PLANTLMMD

TITLE

DIVISIONI

I PlantlFacility Name Location Unit No.

I OBJECTIVES: To conduct physical/visual inspection of power plant items and ohtain equipment parameter values.

! !

I

II Operational?I lTET\1S Sj'stem/Component C~u5eI RemarFs.l

ConditionI!Ii ;System/ComponentlParameters I y N I I I!

11. G~nerator u.nit No. II II a. Lower Output CJ a. Dispatch OrderName Plate Ratmg~ k\V/h.rvA

! b. Low Water Supply I Ij Actu.al Capacity Output, kW b. High Vibration CJ CJI Generator Voltage, h..~T

I I e. Stator Rotor DefectiveI Generator Frequency~ Hz c. Not Running CJ. d. High Gcn.\VindingTcmp. CJ! Power Factor, 1)1

c:J1/0

1I e. Others .i

2. Turbine Unit No. Ia. Dispatch Order I 1

II I a. Low Output CJ CJRotating Speed, rpm I b. Turbine DefectiveName Plate Rating, kWt=J ITurbine Nozzles Open; 0/0

Ib. Not Operational CJ c Foundation Defective_

Turbine Flow, ems.. I d. Low Water Supply CJI I e. Others CJ!-

j 3. Hvdro Im:mt Data i !

I II. W • I

II Vrkket Gate Opening, /%IiI Head V¥"aterLevel; fir Ili III

I Tan Water Level! rvl ! I! Discharge Flow, I I II ems. -

IWater Temperature, °CII Viater Density, kglm3 !I 1! DesaJlder Level, IVI

I!

I Vr'eir Level. M ! I1 perfOrmed B_Y_; R_.eView_e_d_B_Y -_

.11.... H_o_s_t_p_l_s_n_t_R_e_pre_s_c_ll_ta_ti_."_c s_r_.fE_n_e_rg_Y_R__eg_u1_a_ti_O_n_O_ffi_l_c~_r s_u_p_e_rv_'_is_ll_g_E_R__OID_iV_._C__h-_ie_f_L_.1\_IJ1_V_ID ..........•

III,II1

I

CJICJ Ic:lCJ

L:lI JCJCJ

Doc. No. I1\f...LM ...Ol- HE-Ie",! »------Revision NOe

Effectivity Date

Page 2 of2

Supervising EROlDiv. Chief LMl\ID


Reviewed. By

:it. Defective Componentb. High Cooling Temp.c. Systems Di8tutbauces

I d. Othern

a. System on Standbj' Modeb. Due for MaintenanceI c. Spurious AlarmI d. Others

oL:lo

Location

ower hmt items and obtain ~r8meters vaiues.System/Component

Condition Cnuse

a. Lower Output CJb. Trip c:J

Ill.Not RmmlngI b. LeaksI c. Pand Alarm

Sr.lEnergy Regulation Officer

!

Performed By;

LMI\ID

INSPECTION MANUAL'S~;~~~I;:',:,:,~INSPECTION CHECKLIST FOR HYDRO

.\ :~_::~

, Host Plant Representative

5. Fire Protection Systema. FirePumpb. Storage Tankc. Fire Monitunng/Annundatord. PipingslHosese. CO2 I Halon System

7. Hydrau.lic Equ.ipment

6. FhH}OWaning System

r~~.~,I 4. !flam Transformer and AuxiliariesI ' ,! 'Main TransformerI Cooling Fans'

'11 S~itchJ'ard AreaCircuit BreakerDisconnect Switch

Penstock GateSpHhvayTail RateValveDamSut'1!e Chamher

. I 8. Environmental Proiection & l\:Ionitoring SystemI

I

",

----------------_._-- ----

...»oc--:-.f~1M:LM~tiE-GL~<!8B-=r~eVi5MOn IlJo.

._- .•..-._-....-.. •.•..'- _~..•.•..--....•._~ •..•..•...~_.•...._-._~-------.._._ ....•... _-.._-

--.__ ._----------------------_..--.-._--------TiTLE IS IP-lSPECTK)N GlnOELINES FOR

HYDf~OPUf~f) SrORAGIE PO\!fVE!f~PLANT

DIVISION: .LMI\'U) ----'------------.,- Page 1 of 1

'-~"'----"~-'--_..•.•..•-...--..-

&-.B&cord for each unit the f()llOlNing~

Name Plate f<ating3. RPMb. WV6. Voltaged. Currente. Power Factorf. Frequencyg. Flow Capacity

Instant Reading

8. Forrnula;,

Correction for wate.( Den$Uy (AWwo)

Gross Head:, Hg :::::HWL - TWI.

Net Head : HM::: Hg- H

(IlWwD}::: (pslp -1) x Pg

where: Pg:::: measure-d generator output,'. ,I ps ::: specified v-'ater density

\ p ::::water density based on measured temperature

.vVpf) ::::Correction for Power Factor

)rreciion for output.~ ( Pel

Po = Pg- (!J.Wwo) + (I1Wpf

:::Gross Head:::Head Water Level:::Tail Water Level:; Net Head= Head Loss in the \wter conduc..ior

where: Hg

HWL

TWLHnHr

1. Inspection of Hydro Power Plant can be dividcM into different fields such a$ ;

Turbine IGenerators, Water passages with Gales Auxiliary systemd) CoolingWater

e) Drain Water

f) Ventilation

All irregular' conditions are to be recorded.

2.

3.

4.

5.

6.

7.

8.

,.'"(

) 9.

UsuaHy efficiency measurements of turbines are carried ouf after a rTlajorov'efhaul and fatest infonnation or records must bechecl~edfobtained if required.

L~ok at records of monitoring equipment or printouts pertaining to ou~putsand pararn£-'ters that are online implementaTIon.

. Data of efficiency and ~bration meaSUfi$mentare useful. It is import.ar~t to know the efficienC'j and Hydraulic Head Losses. Request for thisinformation

Verify plant procedures documentations and records (sampling only) like commissioning records, certificates from related government agencies.

Any special inst.!lJctlons for Fish')' operations. Please note that documentation of remote equipmefjt stich as; penstocl~s, values, gates, trash rac!l:s, aditdoors and dams are sometimes poorly documented.

look for records measuring peliodical standards, functional tests, in-plarit inspectio'ns and special measurements. This will aid the Inspector on someinspection evaluation and analysis .. ' " ,

Tile actual measurement recorded must be seen in relation to th~ plant's openrtional parameters, e_g; hydraulic head, generator power, etc.Restriction such as System Operation, Dispat(~hOrders, level orv1Iaterinthe dam, irrigation requirements and electrical line maintenance affect theoutputofthe plant ' . . , ',t' ,

Statistics coveiing operationai irregulaIiU'es caused by failure or maifuncl:ionofco~ponenls are most valuable information. ThIs type of statbiics areincreasingly used by regulatory hodies. '. .,' " ',-', .' ' . .

10, If time is available functional teitSUCh a~'fespons~s ~f tU~bl~egovemor, opening /closingtirne of turbine, valves and gates, load rejection and run-._.-..:__~~pro-tecti~~\ are important informaJion which rnav be added to the chec~(Hsts. . ._. .__ ._

• i~.

IIt

'1II

.," ':';>-,i

]~J

Dste and Time of Conductles

Unit No.et r

~l~~~l ---------,------...I-n-O-c- ..-N-O-" Il\-.-'1'-;--L-D-v{---O-1--r-::-' -.....--"...

INSPECTIONY1ANUAL I Revision No..

.INSPECTION CHEC'lUtIST FOR HYDRO .PUl\1P STORAGE '1 Effectivity DatePOWER PLANT

LMMD I Page 1 of 2

. ~I- aram e va u.

IITEfifS Operational? System/Component Ren.uu'ks ICause ..

j.I

Condition ,.1~.

,.

System/Com ponen tlParameters I y N1. Pump Turbine I j

CJ CJName Plate Rating kW i I a. Lower Output a. Dispatch Order-- I CJSpeed __ rpm

I I b. High Vibration CJ b. Low Water SupplyDischarge -- cu.mJsec.! I c. Stator Rotor Defective CJ !J)ependa.ble Capacity kW I c. Not Running c:J I I-- I I IAetna! Output -- kW , d. High Gen. \Vinding Temp.

I e. OtherE CJI2~Generator Motor- T I

I R, Dispatch Order I II

II I a. LtJw Outputa. NamePlate Rating KVAorkWI CJ I b. Turbine DefecUve I !b. Volt.fige __ '.c_, Power Output __ I b. Not Operalions] CJFrequency __ F.LZ I

II CJ i .c Foundation Defectivec. Dependable Capacity __ k'V I Id. Actual Output 'kW I I d. Lmv Water Supply CJ--II e.Otbers CJ

.,). Pump-Up Starting I TIIV[otor Output -_.- k~'

Voltage.Frequency

I I ISneed -\4. 1\-iRin Transformer and Auxilia.ries ,

CJ II\-IainTransformer' a. Lower Output c=J I. a. Defective Component!Cooling Fans I I I b. High Cooling Temp. [:J IS'i\itchyard Area b. Trip CJ

CJ.

ICircuit Breaker I r I I c. Syslcm., Di.turbancesDisconnect Switch

d.Other!i CJPerl'onned By; Reviewed By i

II.Host Plant Representative Sr./Energy Regulation Officer Supervising ERO/Div. Chief LI\'.ThID II

I

I ~: :<~~ IIt., ' ..ff.. L

~ vi"! l' TrfLE .:.. _~.I.~~f,t.fP~~~

I~ IDIVISIONII PlantIFaciiity Name LocationI OBJECTIVES- To condu.t physicaVvisusl inspection of power plant items and obtain eqnipmen< p

II1

'/ I, I

III

1III

II

I

Remary.:i

!

II

CJCJCJ

Page 2 of2

Cause

Supervising EROlDiv. Chief Llt1t\ID


Reviewed By

a. System on Standby 1\iode I jb. Due for 1\-Iaintenffilce

./ c. Spurious Alarm

d. Others

',:"\;.JI- ----- •__ ...-- _

~i' I Doc. No. Rd-LM-Ol~ HE>,,:Revision No"Effectivity Date

Location -

Sr./Energy Regulation Officer

II II 'II I

I a. Not Running 0,0. Leaks CJ

J c. P.nnel Alarm CJI

II

j

I! II !

IPerfonned By;

.INSPECTION rvIl-\NUl\LINSPECTION CHECKLIST FOR Hlr.DRO PU1\'lP STORAGEPO\\'ER PLANT

: Ll\fMD

TITLE,DIVISION

ITEfdS

Plant/FaciHty Name


I Q,R,1:ECTIVES: To conduct plll'SicaIN.sual inspection of all hydro power pll'"t 'lems and obtain parameters va lleo.

Operational? System/ComponentI Y N Condition

I'

5. tr:iqra,uHc Equipment".;~ 1.;

I.;....'P~ns,tock-Gate, .1 SpmWRY,I Tan Racej ValveI Dam! Su~e Chnmber .16• Fke Protection SJrstem Ij ft.' Fire Pumpi b. Storage Tank III c. Fire l\ionitorlug/ft.JUmnciatorI d. PipingslHoses ,I •. CO, I Halou Syslem .

i 7. Flood Vt'arning8ystem I

18• Communication System II 9. Lighting and Air conditioning System, (Control III Rooms)I110• EnvinmmenK'al Protection & Monitoring System III!1i

I-I

.~---._------..-_ ---

.._._---_ •.....__ _--------------------

JiI"b~';:t~ C .ftff 0 ,Jj.t';;fi'e'CiRV2lL.jl' '.3ie

'Pl~ge 1. of 1

--- ---~---_.__._---------

_._"'_-.......-_.._~__,_._----...,---_ .._-_.._-_.-.-. c. ~~o~-jjJ2.:[~~:-6F.•GL-0"-' _ -~_._~,----_.--.-------------_._- •...•._ ...-.

~:~t~V~SkHl NQ.

INSPECTION GUIDELINES FOWl.(Jfl ..FiRED POV\iER PLANTLl\fl\1D

-_._----------------_ ..--_._--

lTfLE

llIVISI.OI'1 :

I b. Record for each unit the followi~

NamePlate ~a~ng6.. RPMb. kWc. Voltaged. Currente. Power Factorf. Frequency

g3. HEAT RATE CALCULA nON

~---------------------------------_.---".-

Instant Read1ing\

Where:

HRT : Turbine Heat Rate (net)

M1 : S~am flow to HP turbfit~ stop vafve$

M2 : Steam flow from HP exha1.£$l to rHe~ter

Mia : Super heate~ atremperating spray 'Wat.er flow

MjR : Reheafer sttemperating spray 'Water flOf1,.'V

H1 : steam enthalpy at HP turbine srop valvra "" hf

kJfkWh

i<g/hkglh

i<g/h

Jegi"kJlkg

f-h : StGaIn enthalpy at HI' turbine eJ(!laust to reheater

H1J : Stea.m enth«llpy at IP :stop valve

til, : Enthalpy a.fila.r final feedwater heat~'!:r

hi$ ; Enthalpy of sUf)lSlrhearer tJltiernperating sr>raywaier

hj( ; En~)alpy at reheater tItlemperallng spray water

p~ : EJe<..'1ricafpower at generator transformer HV terminals

kJ/kg:::: __

kJf!cg= _._

kJ/kg= _._

kJ/kg"" __

kJ/kg::: __

kJ/kg c; __

1. For the gen~star, turbine and 'baUer outputs, f'efer to the specHk: Equipment Srieciflcations for the equipment r~tings.

2.' If the parameten o~ from the equlpl"nent operation deviate from nom1al. investigafe for possible reasonls.

a. For the Generatoroutput, deviation/5 could be attributed to:

1. Dispatch iimitsJdictaws MW and MVAR output2... Urnitation 00 winding/coolant temperatul',e3. limitation on vibration4. limitation on furbinefbolier output

b. For the Turbine CHltPUt, deviatlon/s could be attributed 00:

1. Plant load limited by dispatch.2. Umftation on vibration.3. limitation on boiler Olrtput4. OegtadaffOB1 on turbine efficiency5. . Oper.nional problemls on turbine amdlial)fJies.

c. .For the Boiler output, devIation/s could be attrlbutle:d to:

1.' Plant load Umited bydi$patch2. Openilionallimttationls on boUe!"; pr'f""ssure and/or temperat.ure3. Operational probtemls on boUer Ziuxiliary/ies4. DegradaPon en lwUer efflcJency

::-::;.~:~~~~<l'~', ' >

3. For the G~erM.p.r Auxiliaries, for H2 gas coolei'd generator;

a. .AC seat on Pump provides the sealing oil to prevent escape of the coolimt gas at the ge.nerator shaft.b. The redundant AC Seal Oil Pump ensUl'eS that $eaJing oil is availahle when the other pump is out for maIntenance.c.. nll:~DCSeal Oil Pump is provided f()r lBiafety, $0 that in case of a total AC power loss, sealing aUcan still be

com:lnuoustysuppUed •.•

- !


I

Page 1 of2

C~use

Unit No.

b. Others

a. Equipment Defective

CJCJCJ I

c:J1CJI

a Dispatch Order B Ib. Turbine Dde....""'tive Ic Foundation DefectivelVibrstion CJ,11d. Low Stearn Supply c:Je. Others r=:J

~It=l ICJI01

.1

a. BoUer Tube Leakb. Short Feedw~ter Supply

c. Others

II a. Dispatch. Orderh. Stator' Rotor' Defective

c. lligh Gen. VVhH:H~g Temp.I d. Due for uverhaulI e. Others

I

J~-)

---~-_--IJM,,-: _ -1 Doc. No. Th!-LM..oI-OliI Revision No.

Effectivity Date

CJ

CJ

CJ

CJ

System/Componen.tCondition

Location

a. ,Lower .output

b. Not Running

a. Low Output

I a. Low Le\'e~!

b. Not Operational

I

NY I

r

IIj

IIII

"

I Operational? I-II I

II

M.Wrpm

INSPECTlor~ MANUALINSPECTION CHECI(LIST FOR OlL FIRED THERl\1ALPO\VER PLANT

.Ll\U\1D

TITLE

DIVISION

ITEItlS

PlantiFacility NanH.~

System/Com ponen t/Parameters

it. Nnme PlateRating KVAJl\fWVoltage _'_,_kV Frequency'Power Factor

b. Dependable Capacityc. Actual Capacity

. l

L Generator and Auxiliaries

I

2. Turbine and Auxiliaries

a. Name Plate RatingSpeed

b. Dependable Capacityc. Actual Capacity (As Read)

-,oB~_CTrvEs:_To perform visual or vital and critical s:;rstems ~f the plant and verify records of compHance of eoe.

f

I

I 3. Condenser and AuxiliariesIII 4~Boiler and Auxmaui~I

II

':1',/

r;:I----H-o-st-, P-)-an-t -R-e-p-r-eg-e-u-ta-n-,,-,re--- PerforP.JeuB_J_T;--sr-.-/E-n-e-rg-Y-R-eg-U-Ia-n-' o-n-O-' '-ff-j'c-e-r--' R_'e"iew_-e_:_:_p_Ye_n_rls_m_g_E_: R-'-O-fD-iv-.-C-h-i-e"'-; L-M]v--m---

1'1'

II

- /

Ii

IRemarYt$

CJ

CJ

Page 2 of2


a. Short \Vater Supply

b. Equipment Defectivec. Others

."---._--------------------------IDoc~No. Irtf-Ll\f ..{H.,r-~'"1 Revision NOeIEffectivity Date

Location.


a. Low Output

Operational?

YI N

I

INSPECTIONl\1ANUALINSPECTION CHECKLIST FOR OIL FIRED THERMALPOWER PLANT.LMMD

TITLE'

DIVISION

ITEMS

PlantIFacility Name

Water Condensate System

OBJECTIVES: To obtain !11eaSured actual v~lue.

I

6. Cooling System and Seal on System'

I~',"' L.,

I

7. Electrical &: Au:dliariesl\Iain TransformerCircuit BreakerDisconnect Switch.

.1

8. Lower Output [.:Jb. Trip r=J

a. Defective COffilmnentb. High Cooling Temp.

c. Systems Disturbances

d.Othen

CJCJCJCJ

8. Fire Fighting Systema. Not Running

I b. LenksI c. Pnnel Altum

CJCJCJ


b. Due for Maintemmce

c..Spurious Alarm

d. Others

CJCJCJCJ

9. Environmentm Protection & l"donitoring System

Performed By; . Reviewed By

.Host Plant RepresentativeSupervising EROlDiv. Chief Ll\fl'tID

I

-------------------- .•...

Effectivity Date

P~ge 1 of:I--------------,------

If~SPEcT~or~~GU~DELn~ES~:OH:tSIMPLE CYCLE GJ~STlH~11Hi\JEPOWER Pl.ANT----_._---------.LI\llVfD

....;..-.-_~__ o .,o_, __ .~ •• ,_,._ ••__ . ~,,_~ ':;~N~;;.-i_~:1J~-sc-qJ:::Q!1_~=~.=U\jStJECI'IOt~ MANUAL h,~visjon No.

.,-_._------ _~._--_._---....•..•-~_.----_.- •.._----------,--,..--_ _------ ...•... _~..---._.TITLE

l)WISIO.N :

GUIDEI.JNES

a.b.c:;d.e.r.

f<VAPower Far-.l:orKWSpeedNo. of PolesFrequency Hz ::::::

g. Vottaga, 1-\\1h. ClJrrent, A

i. Coolant Temp.J. Short Circuit Ratiok. Excitatlof't System

C. F.

ft....lJJ;T POWER OUTPUT C~LCULAnON

•••Measured Net Output Power, kW (measuredby the watf--hour meter.

t~ lOt Main watt-hour Meter ConstantRevfooc. l'l1i Tha Number of rev(')lotiolls of the w'a1t.

hour/rev (Meter).l:ol: C<ilJlibratlon Factor of the watt.hour meter.

p~ =: Ktt x (revls$OC) x 306 s£l('.Jhr) x (C. F.), kW

Where:

PM

Where:

HR"" 1:1; Measured NE'it Heat Rate, KcallkWhV =; Fuel Volume to C;ombustor. literPM II:< Measured Net Output Power, kWUiVp '* Fuel Lower Heming Value a't Constant

Pressure (is ae) Kcatlkgt = Time Duration of the Test, hK ::: Ccnverslon F:actor. 0.238.85, KcallKJCPA == Fuel Average Heat Capacity, KJ/Kg °cT •••Fuel Temperature to Combustor, °csa ,..Spe<;ifie G."avity at Temperature, T

'1. The Technical Data of the plant Gas Turbine (GT) Unit mus1 be checked, verified and recQrded in the appropriate ct\ecldists. Add additlonat sheets ifitem:slparameters in the checklists are not available.

2. It is recommended to start inspection on the surroundings of the GT unit and nate the physical cleanliness and order1iness.3. Visit the substationiswrtchyard area and inspect for the grid/dist.ributor c.onnection, transformer, circuit breakers, disconnect switch and, switchgears.4, Round the generator, turbine,-compressor, turbo charger areas)compartment including inspection of air inlet and exhaust plenum.5. Inspect fire protection syt.tem. such as fire-pump, piping foam storage, look for fire sensor, annunciators for alarm, including fire extinguishers.6. Look at the load gaar and accessory components.7. Visit the unit generatorcontrol panel that provides facil£ties for monitoring status, ll1dicmiol1 and automatic or manual control and generator excitation

system. The synchron!z1ng to the grid or to the distributor line is usuafly done on this area vinere panel instruments such as Stator Ammeter, RunningVolt Meter, Generator Volt Meter, MVAR meter KHovvatt Meter, Power Fa.ctor Meter, Incomfng Fre-quency Meter, and Sychroscope area found.

HEAT RATE; CALCULA'nONS

!::!EM = V x SG x (LHVe.tiQu x (T~-15}x ~llie!:JJLU

8. Vecify the followinga Type of Installation 0 Outdoor 0 Indoor 0 Brushless 0 w/Brush

b, Cycle - 0 Open 0 Combined 0 Othersc. Type of Operation - 0 Base Load 0 Frequency Regulation 0 Otrlersd. Type ()f Fuel- Diesel .0 Gas 0 HFO 0 others

9. Starting time of full load from starting period is:Normal -i6.minutes Emergency ~10 minutes

10. lJ,sually the output o'f GT is higher when it uses natural gas versus distillates (Diesel, HFO).11: FACTORS. affecling the output of the gas turbine.

. 1,-

a.

b.

Ambient TemperaturE; exceeds the minimum and maximum levels.41 For ABS, John Brown, GE Gas Turbiness; Minimum Ambient Temp. -18°C iii Maximum Ambient Temp. _ 730C

, Power output are subject to corrections;Attitude/Site ConcfitiOfl- at Sea Level, 0 meter Barometric Pressure - -IO'la mBaI'

. Relative Humidity ~ 80 % RH Temperature Dry Bulb - 37°C fm cooHng

The meeting of fue~ specitic$tiof1s spepified by the equipment mal1ufacfurefDirty Alr FittersAge Daterioration Factorl Total operating IHunning HoursVariation of (3enerat.or.effiqjency with load.

Oulput bero,re l<Wiler -athigher compressor. i~~t te!!1.per'!t~~_~f)d hjgb~~!~~!!.~~J~!:J.!I!erat~e .__ . _-J

;I,~=-_,_',",,_.

r---/

1 G'V••.••.~••••.,,1(y C':I ~(:;' %-'/;;- ~ .;-

~ ~1A ~

I' t _. ~il

"'A> .o::,iIi;>"i 7t'1t.IPP\l1<v

,,'t ~. II

TITLE

DIVISION

INSPECTION MAI~UALINSPECTION CHECKLIST FOR SIMPLE CYCLE GASTURBINE PO'\VER PLANTLMIVID

, Doc. No. L'\1-LM-Ol -SC

I Revision Noo1

Effectivity Date

I Page 1 of2

~.,---- ........•.•]

If!

I

I!


I

Supervising ERO/Div. Cbief LJY'"li\ID

Unit No.Location

SrJEnergy Regulation Officer

Performed Bj,

PiantlFacilitv Name


I . ..

I OBJECTIVES: To perform visual or vital and critical systems of the plant and verify records of compliance of CDC.

ITEMS Operational? System/Component Cause I .. RemarksICondition

II.....

, Sy:stem/ComponentIParameters y Nj ;.

-'

f tGerierato:r8. Lower Output CJ a. Dispatch Order I ! If

I a. Name Plate Rating

II

I b. Stator Rotor Defectivef'"v"ibratiorC:] I. Voltage FrequCilC)' ---I Power Factor

c. Not Running CJ c. High Gen. ''-Vinding Temp.

ICJ !

b.Dependabie Capadty

I d. Due for {werhau!c. Actual Capacity'

CJ1 e.Oth~nCJ

I I II

I I I:

I

12~GBS Turbine I I I a. Dispatch Order [:=JI a. Low Output. CJ II a, Name Plate Rntmg

Ib'V'" Defi' CJ-• !. urorne .•...Ia..""'tiveJ

Speed' rpm I C Foundation Defcctive/Vibr.tlou 0 II b. Not Operational I JI

d. Low Fud Supply/Specs. ~ I!

II e. Others . r=Jr

I!t

3. AirCompre88or/St:litic Starting Deyice

I i1II4. Cooling Sj!stem

la. Low Output c=J a. Equipment Ddecti"ve CJI

I .

I b.Ollien CJ"~~ --:.

I

CJI I

CJC1CJCJ

Effectivity Date

1 Page 2 of2

SUI)emsing EROlDiv~Chief Ll\11\ID


Cause

Review~ By


b. Due for Maintenance

c. SpunousA!arm

d. Others

I.n. System Disturbance

h. Dispatch Or-ocr

III fL Short Supp~y

1

I

~\,-, ------_._-----...,-..-.---------~) .. I Doc" No. IM:-LI\.f-Ol-I Revision No..

CJCJ

CJ

I

System/ComponentCondition.

Location

b~Leaks

a. Not Running

I a. Trip

./ b. Not Running

I

iI a. Low Level

I

I c. Pane! AI.rmI

ISr.lEnergJ Regulation Officer

II

.1

1

I

INSPECTION MANUALINSPECTION CHECKLIST FOR SThfPLE CYCLE GASTURBINE PO\VER PLANTLM:MD

Performed By;

DIVISION

To obtain measured actual value.

PiantlFadIity Name

,tj)'.---~l--'------------------IIII TITLE

Rost,PIant Representative

r--1

III~IIL .I OB.mcrfVES:

II

JILl .------------------------------------------------------ ----J

ITEIVIS

I 5. Electrical Equipment .i l\lain TransformerI Circuit lkeakerI Disconnect SwitchI .I 6. Fuel Systeriri

II1 7. Environmental I>l;rotection ~md Iv{onitoringi System

; I _~(' ./ '

J.; 11 8. Fire Protection Systemit: I Pump11:1 Storage Tank, .! PipingIHoses

I C01IHalon'1

----Ur-;'''':':- ~~-- - --_._~ __ •....__R • • ''"'_._.~ ~ ••••••••• •••••••• '_ ••••• __ ••• __ • • __ '__'_ _

:~~_~.m~~Li\i:sO~GL~O~_==.'~evis~onr\1O'.

Effectivity O(~tel)i~ge1 of 1

~\I{JAL.

d ." I

INspr£CrK)~~GUlDELUlj~ES FORS(JLAf{ PO\!\fER PLJ\t~Qr

nTLE

---_.----: •.._~~..._................ ---.._--_ ..•.....•.•--,~_.•••..•..•....... _~--_._.""..." ..._-_ ...•.--_.

-_._ .._-_ .•.-.....__ .----- •.._-------_._---------

DlVISION : .LM.M])

(;IJIIlE.LINES

8;~BecCHJLfor each unit the followingi

Name Plate Rating

HPkWFrequencyHPMVoltageCurrentPower Factor _No. "feeUs

B. pa~~{!.f..~r;wrntionsand C~dculatfons

The following data collected during the tem snolJud be prepared for ca[culatiOL"ts.

Average temperature/pressure data over the time of tha record. Temperatures averaged for the calculatkms are.

ACT1JAL VALUE1 Ambientair temperature2. Barometer pressure _____ kgfcm2

I --

II

IIl

j

CJ


Effectivity Date

Page 1 of2

I Doc" r~o":rr\1-Lrv!~Ol'"'So-IQ., .' ~Revision No.

Cause

Unit No.

It. Dhipatcb. Order'

D. Component DefectiveIDegradat"lon c:Je. Others

CJ

CJ

SJtstem/Component..Condition

Location

b. Not Operational

I a. Low Output

Y N

Operational?

INSPECTION l\1Al~VAL:INSPECTION CHECKLIST FOR SOLAR POViER PL.ANT

LMMD

ITEl\:IS

PlantIFacili NanlC

OBJECTIVES: To i~spect plant system and component and monitor its operation.

1:2. Povv~r~i~t:':I' ..

'.3. Control :panels

I .I' .1.4. Fire Protection SystemI Pump . . .! Storage Tanki Pi in !Hoses

5. Electrical SystemMain Tran8former

. Clrc--ilit Brea...lcerDisconnect Switch

1 o. En"irunmentalProtecnon & J\tionitorlng System

Perfonned By; Re"iewed. By

Host Plant Representative SrJEnergy Regulation Officer Supenismg ERO/Div. ClliefL1\iMD

I

:~~ ..

Comment

Effectivity Date

I

I

I

I Doc. No. Il'rl-LM-01-SO-IC-09RevisionNoe

I

I Page 2 of2

SupervismgEROfDiv. ChiefLl\fMD

Bus Ducts

Tra..'1sformer

Circuit Breaker

Actual MeasuredValue

'---__ ---'~I ';;iii;iii!J!I!!ii:f!1:/!iJiH/!/i!i;:B/fil;:f I Disconnect Switch

r2I ]l[I

• ..1

Sr../Energy Regulation Officer

MViU1JKVAR_____ Hertt_____ KV_____ Percent

Particulars

PVModule

Junction Boxes

.Low Voltage Switchgear

.,I ~~ ~

ill: I ~~~ - C'~ INSPECTIOr~ MANUAL:i ~li, I ffi e TITLE. l.1\lSPECTION CH.ECKLIST FOR SOLAR POV\'ER

~. I ~ ~ PLANT.',['1; I "Ai1f.ILf?'r\~~~ .I'T"'~'l "_ DIVISION LMMD

1 '1 Db. ective: To obtain actual measured value of the lant

IIl'l:~Y'r\ ..,n T~ST Parameters "

. I .,(~' 1.1. Net Power Output~.~ L?~;'):J,; ., k\V Ra<lcedi i.t;:, :/f-~;:: . t.

j"~~L'!.>:': GuaranteeI ,.iJ:"

I ',' ActualI, I Reacti:v: p,ower,... rrequency

I VoltageI . Power FBlctor,. II

I

1

00I~

.l:~': I I ..L ..,.1. '.w

..... 1.,' ..,I~ -----;. .1 :. . . Performed By; Reviewed By

!j -.-----------------.I .·Host-Plant RepresentativeI

I

Effectivity DatePage 1 of.1

.----------- .•...•.•.--. 'W'_" . ~_

TITLE n\!SPECTiONGUIDELiNESFORWU~DPOWER PLANT--_ ..._----------_._--------_ ..._---~._--

-------------_ •.._-----------------GUIDELINES

Name Pfate f{atingHPkWFrequencyRPMVoltage _Current •..•__Power Factor _No. of Blades _

Instant Readir»g

-------._"------

The folfowlng data collected during the test ShOUlid be pmparnd for caJculaiions.Average temperature/pressure data over the time of the Mcant Tempernttires aver.age:d for the c~lculatlcms am:,

ACTUAL VALUE:1 Ambient air temperature2. Barometer pressure3. Air Pressure4. Air Speed .

_____ Ctc_. iq~lcm2

••, •... ).'

_ .. ./

I.{III

I~

II

Remarks


CJCJCJCJCJr=l[:JCJCJ

IDoc. No. IM-LM-Ol-VRevision NOQ"

Reviewed By

Cause

Effectivity Date

Page 1 ofl

a. Dispatch Order

b. StatorlRotor DefccnveIVibratiofic. High Gen. Winding Temp.

d. Due for overhaWfDcgrad2tl.onc.Otbers

a. Di!ipatch. Ordert, o. Turbine DefectivelDegrnaation

I c Foundation Defective!Vibr.ationII d. Others

CJ

CJCJ

Location'


iI a. Lower Outputc. Not R.unning

I a. Low Output

-I b. Not Operational

II

I

Ny

Operational?

Performed By;

___ rpm

1.' Generator &, AuxlIianesa. Name Plate RatingVoltage __ '_ Power Factor .Frequency

.b. Dependable Capacit)'

. c. Actual Capacit~,

.'{.:O

.. System/ComprmentIParanleters

2. "Wind Turbine Auxiliaries

ITEMS

I. '. . . . .;OBJE~lVES:!To inspectphmt system and component and monitor its operati011e

Name Plate RatingSpeedPower OutputDependable CapacityActual Ca mcit" As Read

3. .E!edrical Components

Main TransformerI Circuit .BreakerI Disconnect Switch

I 4. Fire Protection System

PumpStorage Tank .

. Ph>in<r/Ho:;esI 5. Environmental Protection & Monitoring Systeul

Host Plant Representative Sr./Energy Regulation Officer Supervising EROlDiv. ChiefLrvIT~

I

Effecnvity Date

Page 1 of3

_._-------------~_._-------------_ .•.•..•...~.-

---------. ----.- ..------.-,------------.------- - DOC5 ~io~iM~lM~CG-(;L=.1.1---'--iNSPECTJO:N Ai\lUAl. RevisionHo-. ---.------

T«TlE INSPECTION GU!DEl~NESFOR___ . C_""O_._••_G_E~_E_.~_,Ti()!~_P_O_WE_R_P_.UU_~_T._

I~ . . G_I_.TID__E~I_.JIN_.. __E_S _

!!h_ Record for eachjmrt fhe fo!lowingj

Name Plate RatislgHPkWFrequencyRPMVottageCm.nt';rd:Power factor _

L_JIEAT RATECALCUtA1'10~J

OUTPUT

In CoolingWnt~

FneJin

Cooling Water{'-+Out ~- ENGINE

:-::Fuel Supply R~ings x VCF x MCF of each unit (s) additional Mass Fgow Meteif' (s):= Volume Correction FBctor @ 15 (Ie, based on Fuel Temper..m..llre.::::Meter Correctioo Faclor, based on Latest Calibration Report.

=: Low Heating Val!ue from Fool Analysis of Test Fuel:= DensUy from Fuel Aootysis of Test Fuel

:: !Total Heat of Fuel Cons]:!!!!!!! ilr~EnID(Net EJectrical Output in k'Wh)

Total Heat of Fuel C.onmMnoo in BTU::: Fe x LHV x D'lNhem;Fe :.::Fuel Consumption, @1ere measured in fitnrs, as determined by (FPlf1+ .Fl\~n)FM1 :::: fuel Supp~y Reading xVCf x MCF - of unit 1. Mass flow Merer

Fuel Supply will be fllf2!aSured using a Fu.el on Flow meUlf

PMnVCF

\~~~

I\WhHter.s

liters/kWh

-j Ambient air temperature2. Barom~ pressure3. Fuel 0;' tiempernturo near volumetric flow meter in 'the ooo-ster skid4. LT cooling water temperature entering the charge air coolers5. Sum ffre megawatt hour production from the bmin.-g meter mid the average the

results of fue ten minutes intervals6. Sum fuel oif consumption and adjust it for fuiel oil rootte'f calibration7. Calculate- nominal output and Specif1C t'ueJ oil constnnplion at site cooditi~"is8. Catcu!ate ISO 3040 corrections ardappfy Ulem to the $it.e vesu!ts to arrive at

tbe final corrected results&' .

The foUowing data eol~ during the iest should be prepared fow cal,::ulauo.ns. .Average fJamperdtureJpressure data over the time ot the record. Ternperatures averaged fur the calculations are:

ACTUAL VALUE____ -oC____ kg/em"

°c_. oC

Total Heat Inputot Fue'

The ~rotaJ Pkt Heat Input'of Fuel in KJn~~or ~caUhr at. Site condition is determined by multiplyingtherweight of fuel input (Net Fuel Mass Flow) by the hOO'tin£ll value (UN) in KJlkg or kc-.aUf{g.

This is th~ ~RVerted to ~nJJhr. usingstandaurd c;onrvers4on fonntdas.~tl!IotG~ kWhFuel Lower Heating Vakle (lHV) kJfhr or D{cal/hr lOr BID/HI/"aross Generator Power Output ._ kWAwtiUarYP'ower . kWGeil<erafur Power Factor fUr

", f.ueJ~ity .lkg/ci.UfDo/', •..

NetUf.at ~at~ Cat~;td~tiOf1~:::::':;"",.;"~.. ,;",:,.' ;i.•;~":>,,::,,. ;,;.,. ' .TIw "jet Plant H~atRate"~ ~ite Co~mon is' CO!~~ted as fo~k;;w$=

aTU/kWh:: Tota; .Nert~f~rf~P!~.Qf;F;.i~.i:'(BfuJh~.Nal Plant.Po~r Qqtput (kW).. ',~ ..:.. : ' .. '~~ ..;".~.- ..,.;. "" :~:... ", .

." i ': ' .' ;', ...'. . ):::~'~_::~::::'",:.":'.", '.. . '

1"h~Net Plant i~ate &t Si~ cOCldffionis tner, adjusted bj.•..SSO 304SJ'Bmelhads to obtain tha rl1e1Plant HeatRate a~Refu~ Condition~;':';~:',,:.. .

•.•.•.....••.•...•... _-_._-._ .._-------------------~ .._------_ •.••....• _-----_..-.. .

. - :-,,' '..,

'DIVISION:

U\lSPECT~Ot~GUIDELINES FORCO~GENERtrnoN POWER PLANr

L1\1JVJ])

Effectivrty Data------------~-------_.----....•._.

Pagelof3_ .....•_-.- .••.....•...••. -.•.._ .._._..-_-_ ..._ •.._ ..---_._----~.----.•._--- .•_~••..•... ,.

GUID,ELm.ES

t",

tL...Reg;ord for each unrt the foUQwillSi

Name Plate Ratinga. Turbine

kVVb.RPM -------C. Generator

VnltageCurrentPower Facl:or

!!.-forrn!!!!;,

Qf"" heat generated by fuel "'"(m••ff) Qh .,.mf 011

Where: Oil n: heating: value of fuel kJ/kgActual Net Work. WW1- Wn -WlW:4

Thennal Efficiency =-.'iY..:u.=-V:lm.::..'tk!E1Or

(Gc4S Turbine)Overall Thermal Efficiency = Generator Ot/trw.!

CAtCombustor EffIciency ::;Heat ab.'rorbed BiU.\l!

Heat Supplied by Fuel

-~_._--

-"-----

It Factors Affecting Output

1. For the Sellenlitor, turbine and HRGS outpul:s, ref~,;-r'io the E':quipment Epecmcation~ for equipment r!rl:iogs.2. If the parameters observed from the equipment operation deviate from oormal, invsst:iga'i'a for possible Yllllsaonhsl.

a, For the generator output, (Jev:mioi1Js could be mtribute to:

1. dispatch Iimits/dictate$'M\\~and MVAR output.2. limitation on winding/coolant temperature.3. limitation on vibration4.' limitation on turbine lb'oHer output

b. For the Turbine output, deviat/ows c(l;uld be sttll'ibute to;

1. plant 1000 limited by dlspatcfrt2. limitation on vibration3. limitation on boiler output .4. degradation em turbine efficiency5. operation problernls on U.lrbine $uJdU2JIr.vfi~.

3. For the Condenser and Auxiliaries

a. To maintain cooling effectivity on the condenser,

1. On the cooling water side of the cl(md.enset'. normii~Uy.a backwashing system. is hU.>Udle.d to periodiCZiliybackwash debris on the tube sheet, fll so«~e lnmltatioo debris fUller ClSJ1i.emblles are Instead provided.

2. in addition to t'hebackwt.ishiI19 features on debris filter assemblies, some jt~etallation are equipped withcondenser ~ubce cleaning device enable periodic OI'l~ii~e ci~ning of the condenser.

b. Two sets of Circulating Water Pump are provided normally, $0 if atpump is out of service for repalr/mahltenanee. theUnif can still operate at half load.

C. Redundant Gonde;u.ate Pumps are normally installed 0 that ••m extra set Is on standby and still the UnIt can carry fullload .

efC Plant Heat Rate

, .1 Calculation of Fuel Gas Mass Ficw Rate

t /Nfg(C) "". Mgwhere: Wf£l(C) Calculate,'! 't'uel 1Yla$$ t10V1f rate oftrue Phlmt (kg/h)-r't No of Hours . Mg: Calculated fuel gas 1111~u.sflOfW

C"llculatkmof measured net CJC Plant Heat Rate

rlRIJCC(C} "" ~(c) * LHVg(1111 where:

l .:....".KWh NCC{C} H~cC{c~ Calcuh~ted of Measu'red NetJCC Plant He<rt RateWfg (C): Calcl.llatoo fuel g<ll$ rm,u;s flow raiter.oftbe pIaI'll (Ieg(h).,LHVg(m); NGtural gas tHV based on the ,mafysis of gal$ components ..~.~< .

-.-. ---;----.--;r-.---.-----------J~.m;}-=-<:?alclilatel1<Aeal~!Ered NetfC/Q. PlantQ..,:!!put (k\~L ._,_._. - _I

i•i

_ ...-...-.._-- ..._----

--- .._~--~-~~._------------Effactlvily DateJllage30f3

--------_._------------------riflE iNSPEcriOili GU!DElINES FOR

___ C_O:GEN._ER_A'_Tl_O_"(.P_O_WE_R Pl_..A_N.__TDMSION : LM1\1U

------------------_.-GUIDELINES

~Becord for each unit the fQllowing~ "

Name Plate Hatinga. RPMb. kWc. Voltaged. Currente. Power Factorf. Frequ6ilcy

----~

Instant Reading

------

-------B. THEORmcAL

llie following equation shan be used for the calculation of the turbine net heat n.~m,

Where:

HRl (NET}:::: {M1(H1..ftt} of. M2(H3 - B-2) of. Mis {H1- hlliL!.Mir(H3 - hlliJ.lPN

J

~J

HRT : Turbine Heat Rate (net) kJ/kWhM1 : Steam flow to Hp turhlne stop valves kgfhM2 : Steam flow from HP exhaust to reheater .kglhMis : Superheater attempernting srnywaterflow !(g/hMIR :Reheate~ attemperatrng spraYW2\ter flow Icg/hHi : Steam enthalpy at HP turbine stop varve kJ/kgH2 : Steam enthalpy at riP turbine exhau~1 to reheater kJlkg113 : Steam enthalpy at IP stop valve itJ/kg

'. h'f : Enthalpy after flnalfeedwater heater kJ/k.ghis :.Enthalpy of superheater attemperating spraywater k.JIkghir : Enthalpy of rnheater attemperatil1g sraywat.er kJfkgPN: Electrical power at generator tn:msforrner BV terminaJs i(Jfl{

3. For the generator) 'turbine and boiler outputs, refer to frt.e specific Equipment SpecifICations for the equipment ratings.4. If the parameters observed from the eqUip'Yloot operation deviate from nomlaK

Iinvestigate for poss~b!e reason/so

a. For the Generator outputj deviationJ.s could be attributed to:b, Dispatch limits/dictatesMWand MVARoutputc. limilaliovionwinding/coolant temperatured. 'Limitation on vibratione. Umitatlon on furbil1eJooHer output

c. For the Turbine output1 deviation/s could be attributed to:

a. Plant load limrrod by dispatch.b. Limitatkmonvibration~c. limitationenboiler output.d. Degradation on turbine efficiencye. Operational problem/s on turbine auxifiaryfi<es.

c. for the Boiler output, deviationfs coutd be attributed to:1. Plam load limited by dispatch2. Operational IImitation/s on bOilor; pressure and/ortemperafure3. Operational problem/s on boiier auxiliaryfies .4. De!1~dation O'f boiler effici~ncy

S.ror the Generator A{oorfaries, for H2 gas cooled generator;

to AC Seal Oil Pump provides the searing oil to prevent escape O'f the coolant gas at the gel1emtor shaftg. The redundant AC Seal Oil PWf1Pensures that sooling oil is available when the other PUiYlP is out for maintenance.h. The DC Seal Oil Pump is provided for safety1 so that in case of a rofal AC power loss~ sealing oil can still becontinuously Supplied .

I- I

~.;?<>-r~ -,

Remark!

Doc. No. IM.:-LTvI-Ol ...CG"Revision No"

Effectivity Date

I Page 2 of2

Date and Time of ConductLocation

ower hlOt items and obtain ara-meters values.Sj'stem/Component

Condition Cause

I

II

I

II

-I

INSPECTION M~~UALINSPECTION CHECKLIST FOR CO-GENERATIONPOWER PLANTL1\1MD

ITEMS

DIVISION-

-TITLE

j8. Combustor Shell

Plant!Facility Name

! OBJ"EC'fIVES:

!II 9. EXhaust Ductj -

! I i10. Electrical System I

I Ifvlain Transformer-ICircuit Breakerj I

iDisconnect Switch!! I111. Fire Protection System

I i

I Pump

I ;j Storage Tanl{i Pipin.glRoses

II I12. Environmental Protection & Monitoring System. I I I II

I

I I I - I! I I -j I !I -I

I I

Ii I II

II I

I III

Performed By; Revie'wed By IJ

IHost Plant Representative Sr./Energy Regulation Officer Supervising ERO/Div ~Chief L1\llVID !

I

Republic of the PhilippinesE W'J Eml(j~Y'REGUl,J~l"()r~,yCOM~1:[SSIOr~ .

tnTA\C~H\'n;,Nr l3 'OM. !nternaf ~/b(emd)ln~lM11dltunTYPE:or c.on'F~Gpond(~ncf:':';~- .

control no. ;:;.-

...j, skip tvoJO (2) spacesIVilEM()flAN [)U i\~,...}skip one (2) spacesDat(~

FOF~..) skip one ('I) space

THF<U : Ni\rJH;;~._) !:ikip orw (1) SP,.lCf:!

F~F~:C) M : N IJ,~Vi1:'...:;..skip on~~('1) spac e

F(t: SUtl.JIECr

~i" Date format dey month ye/:lr

",:' P'..riril. st<!\':!: '12, Lie;ieL all caps

-~, sl'.ip one (I) ;~pace

(:3tart of rr181TIO).:) Ari~~1 ~;Izft.'12, spaCt1! justified

m;;: (jP OF iNSTALLJi::O r~ELII!.',f5,H•.e OPE~,1\1'IC1N COI\!lPt. r::HEn#\PPLICAN'r S!!n~VIC~. i ~;" LOCAT!ON UNrrS Ct~PAClry CA,u;JJ\.Crrv I::UEt. MOI:>E \:>OCS-I.

2.3.

4. -

5.6."(,

a1;)

Etc.

(End of rnerno)

. ..." skip two (2) spac;&s(;,1';: -«INITIALS»

«INITl,!.\L,s»

-)- skip fiv~~(G)$pacesPrepamd hI «cl\.Itl-l(iI' iniiials»/«Di\,i'3;On C;hir"f Il'utial:,,>;'

-7 skip tv-/O (2) spa\;Ji.~:SMtaeh:

Us~~the ERG letts~rhEl.a(j

.~ skip two (2) 'Spaces

Date

..,. skip two (2) spaces

t\DDRESSEEPositionName of Agency/Companyl-\dciress Line 1Address Line 2

-7 skip two (2) spaces

Dear SirUII~adarn):

-) Arial, size '12,bold, all caps

o..\

-1 skip two (2) spaces

(Star-t of letter)-+ singla-spaced pamgr;,'lpl1s'-1-skip one ('I) space in between paragraphs

This refer to your application for issuance of Certificate of COI'Ylpliance (COe) tooperate your (/\/0. of Unit/(s)., Aggregate Installed Capacity, and TJ!pE3] of Eqw;ornent)located at (Location of Unit/(s)).

Please be informed that your application has been approved by the EI~C on ([)att~)lsubject: to the terms and conditions attached thereto. The said coe shall beavailable for pick up at anytime from eight olclock in the morning to five alclock in theafternoon (8A!Vl-5PM) Monday to Friday at the Licensing and Marketing MonitoringDivision (LfvHJ1D)) 1ih Floor) Pacific Center Building) Ortigas Center; Pasig City_ ,

r=or purposes of issuance; a formal Letter of Authority (LOA) should tle presented tous should YOLl authorize a representative to appear for and in your behalf.

For more inforrnation and details) you may contact the L_MMD at (02) 914-5000 local146 or "145.

Thank you and Congratulations!(End of letter)~ skip two (2) spaces

Very truly yours:

..:, skip four (4) spaces

ATTY. FRANCIS 'S.ATURNINO C. JUANExecutive Director I! I

-1 sldp tINa (2) spacescc: Name, f)(.;lt:;ignation

Name, Desi(Jnaiion

-7 skip five (5) spacesF'ret)::1red b~i: author initials /Div!:;;ion Chief initials JDin?,c:tr)I"Initials.

,T~-r,eof co..r.;,;(e.Hr~ond ence'.':' . "" ;-,. ::>~lPtlNO i.L} sfJ8ces .'.rl\,ttach: contro!llo, ':':"":

.....~......................•...................................... , , ,.......•. ' .

1 Reference No.: 2005~A1.!or EGO": .•..••...••• h" •.... ~ ._ ••....•..•••.. ,":';..,., ••.....•••..... ; •.•..•...•.•. 'n ...••. ~•.••..••••.•.

FZf.::t>}XHlf3ibtllty C<,~ntel' COf.j;~ .~; - . - - .:,\ ,

-7 A.rial, size i2, bold, all caps

--7Arial,sil:e 8

-) Arial,. size '7

I..:;.Arial, size'7

1-LICENSING and MARKET MONITORING Section. NO.6

~v.TOIf; MANUAL Revision No. 00 .f(,~ "0~ ~ Section: Effectivity Date:~ERC' ERe GUIDELINES/RESOLUTIONS ISSUED~ I Subject: Subject No. 1.~.

Page No: 1 of 1

DATE ISSUED

June 26, 2002

June 26, 2002 .

April 13,2005

August 17, 2005

December 14,2005

March 08, 2006

May 10,2006

May03,21J6

November 29, 2006

March 12, 2008

PARTICULARS

Guidelines for the Issuance of Certificate of Compliance forGeneration Companies/FacilitiesGuidelines for the Issuance of Certificate of Compliance forGeneration Companies/Facilities, AS AmendedGuidelines . for the Financial Standards of Generation Companies(GENCOs)Resolution No. 18, Series of 2005 .Implementing Section 43 (t) of the Republic Act No. 9136 and Rule 3,Section 4 (m) of the Implementing Rules and Regulations of the SaidAct .Resolution No. 26, Series of 2005Guidelines for the Determination of Installed Generatirlg Capacity in aGrid ~nd the National Installed Generating Capacity and Enforcement ofthe Limits on Concentration of Ownership, Operation or Control ofInstalled Generating capacity under Section 45 of Republic Act No ..9136 .Resolution No. 07, Series of 2006A Resolution Amending the Terms and Conditions of the Certificate ofCompliance (COC) Issued to Entities Owning Self-Generation Facilities(SGFs) Particularly Item NO.5 ThereofResolution No. 21, Series of 2006 .A Resolution Suspending the Effectivity and Implementation of CertainRules Issued by the Energy Regulatory CommissionResolution No. 22, Series of 2006A Resolution Promulgating the Rules for the Regulation of QualifiedThird Parties Performing Missionary Electrification in Areas DeclaredUnviable by the Department of EnergyResolution No. 53, Series of 2006A Resolution Initially Setting the Installed Generating Capacity per Grid,National Grid and the Market Share Limitations per Grid and theNational Grid for 2006 Pursuant to Resolution No. 14, Series of 2006 ofthe Energy Regulatory Commission .Resolution No. 04, Series of 2008A Resolution Setting the Installed Generating Capacity Per Grid,National Grid and the Market Share Limitations Per Grid and theNational Grid for 2008 Pursuant to the "Guidelines for the Determinationof Installed Generating Capacity In A Grid and the National InstalledGenerating capacity and Enforcement of the Limits of concentration ofOwnership, Operation or Control of Installed Generating Capacity underSection 45 of RA 9136.


Section:ERC GUIDELINES/RESOLUTIONS ISSUED

Subject:

Section. NO.6Revision No. 00Effectivity Date:

DATE ISSUED PARTICULARS

June 26, 2002 Guidelines for the Issuance of Certificate of Compliance forGeneration Companies/Facilities

June 26, 2002 Guidelines for the Issuance of Certificate of ConlpHance forGeneration Companies/Facilities, As Amended

April 13, 2005 Guidelines for the Financial Standards of GenerationCompanies (GENCOs)

August 17,2005 Resolution No. 18, Series of 2005Implementing Section 43 (t) of the Republic Act No. 9136and Rule 3, Section 4 (m) of the Implementing Rules andRegulations of the Said Act

December 14, 2005 Resolution No. 26, Series of 2005Guidelines for the Determination of Installed GeneratingCapacity in a Grid and the National Installed GeneratingCapacity and Enforcement of the Limits on Concentration of,Ownership, Operation or Control of Installed GeneratingCapacity under Section 45 of Republic Act No. 9136

March 08, 2006 Resolution No. 07, Series of 2006A Hesoiution Amending the Terms and Conditions of theCertificate of Compliance (COC) Issued to Entities OwningSelf-Generation Facilities (SGFs) Particularly Item No. 5Thereof

May 1.0,2006 Resolution No. 21, Series of 2006A Resolution Suspending the Effectivity and Implementationof Certain Rules Issued by the Energy RegulatoryCommission

May 03, 2006 'Resolution No. 22, Series of 2006A Resolution Promulgating the Rules for the Regulation ofQualified Third Parties Performing Missionary Electrification

Areas Declared Unviable by the Department of EnergyNovember 29, 2006 Resolution No. 53, Series of 2006

A Resolution Initially Setting the Installed GeneratingCapacity per Grid, National Grid and the Market ShareLimitations per Grid and the National Grid for 2006 Pursuantto Resolution No. 14, Series of 2006 of the EnergyRegulatory Commission

T{pr"'I':il)i1'c" ,""',f~.i.l";Cl P'b' 1+11"P't)L"n,e.;.'.l. ".""- 1.J ~. 1. . V .• Lie .~1 r-}t. . w

.EI\LE'R.GY RE(;tJl;}1~1'()R'1:" (~OIVI1\11SSI().NSan .~/liguel J\venue, Pasig ('.,ity

Pursuant to Section 6 ofllepub1.ic ./\ct 1\1"0,913 its IUlple.rnenti.ng H.ules~md..Regulations, the Philippine G-rid and Distribution C:ode, and the \VholesaleElectricity Spot f'lv'1arket (\VES.rvl) R.ules, the Energy R.egulatory (~on]J:nission(EI-(C) hereby adopts and pronlulgates the folkY'\Ali.ng (Juidelines for the Issu-ance ofa (~eJiificateofConlpliance to Generation (!onJ.panies/Pacilities.

l\RTIClrE .I

Qp"'f .' 1 ,!t"\b." .bt:"'" ~ . '"[I.', "..,t f."r'1 .. 'L:lil'~. ~C" :',., .1.(:>.:•.•.•• ;.b.::;d. t' ....tt.; 'th'""-,~""c..lon " \.I ,.lee I *le,:ol.- . .illS se o. \.JU1C1c, Jne,) l~:,P.l'.~,S~,-,l.L "'e. . O •.h aln .' ,efbnu~ving objectives: .

(i) To pronl0te free and fail' competition and accountability of IndustryParticipants to ach~ieve greater operational and econoDJ..ic etIlciencythereby rationalizing electricity prices and nlaking tnern conlpetitiveand t.ransparent;

(ii) To enhance the quality, reliability, s'ecurity and affordability of thesupply of electric po\ver;

(iii) 'To pron10te a policy of full disclosu.re of a11t~'ansactions involvingpublic interest;

(Iv) 'To ensure and accelerate the total electrificat.ion of the country;

(v) To enhance the i.nf1U\i\l of p.riv'ate ca.pital, participation in the attt::'11-

(:ll':ll-~+ J~J'.;.,j",~ ::!1~!(:1.f1")I"CY'lI:lf']'1 +1-1{~~ ('~Ill;rn. t,~~.~.,ll'"L"l"\ t~I~,~C.'f'1'11't~-\I-'" 'l"IO'~'PP~~{re"I'~crq.t"i('''j,.rl, {, ,,11. .• >.>1'..".1, ",Ul .... , t, ~,,,L.,,.. L...... .. :1\.. ",,1 •..)1 .. 1 l.., .,.1.<) 'w '" ..1.1"-, j .. \IV ~•.•.J,. t;) . ], .'. i.~ ,._ f,

t"'l ' .tC "":3;. --I:; • ," •• ', ••• ' •• ~. • C. """I' i\)'f.:;ctOl 0" t le .J..11{ U~ try"

(vi) To provide an eIlvironnJcnt cO.nducive to \vholesorne and construc-tive conlpetition thereby prcHnoting efficiency in the rnanagernentand. operation of Industry Participants.

Section 2. (;uidlng Principle

r..;',.~'"' '. 'C~" "r""tl' '., (":",,' :'e"l'. ,'., t1 f"', l;;'h •. ']11'" f' 't.. 'L.:". i.n ~'f:'C()lr-l,,( 01 P lU pOSe ..) OJ 1l~~ .]1.UO..:.-"Ine~, J1.""le ,:J .,',d, ) .:, .WOJ:'...JJ1C t; (1 ~..,,' ".

a. Cj{)C~issued to a (3eneration C:ornpany .'h. C~()Cissued to a l'Jew (Jenerati,ng Facility .

.Provided, That theC()C~ issued to a (leneration C~om.pa.ny shall includerl"l."l';':d'c{""'ie .,t:.'oI::irn:l ..oj. •• ,l;'1 .. .., (:-',.,t.','" ,t,/.I ..;.t ..... ~rf'~x "l~.• ,.40'r, A .. '~'.'d .. (} .1l~) I..•L",nela 1nt;)' act hIt,,) _11op,J,a 1\.)11 J. u1C hl1LJ a}Jp lCal.HJn. /\.n expan ...~'1'1')1'. (.'~r']1V..l.::'1.,i;,'1. O,,]-~, [' IOI.el.')o....'l)Fer"l.'I.]. 0--' f:' J)n'.y' OIf't'jle;:" {~I f'r,f.'l'r:.'tl" J')11 r>"yn'llJ'1 'l""l'Y" , (,., F~"1'<"'l'11"tl'e~1...i ,••.....1~ .d", '\..'0, ".l., d '..\ V._ .L,b Ll u. • _", .J •...J••/_J .•v.,U. "'_ ••...' \J., (. .1 ~. (., """ 1. - 0,

or an acquisition ofa ne\7V(]encrating Facility shall require a separate (X)(; forthat particular facility .

.~ 'lP""! (,u,-., .,1,. r,:.]1 b. '" -' ..' ",. '. "'J .! "f' '.' q l"'}J'-' 1. ,"'.:C '"0 [ • .", .~.•. : . - . f'" ,', '. :;"''\: . ('-.!. '..t ,:1-'1../ .j\.~ SJ.ld.~ C ::-icctneO .. l0nl L,:\.'l. ...l.JflOlL- ,JpeLU10n \.) . d .Ilt, vV ..Jenera l.onFacility. The (~X)C~shaH sti.pulate all the obligations of a Generation (;(unpanyconsistent "\v.i1:11 the standards and operating guideli:nes established herein and.'\vh.ich ERe Inay require f)~onltin1e to tirne, and such other laViS, Iules, a.nd.regulations pertinent thereto. i\ CO(~ shaH be issued upon c0.l11pliance \vithsuch standards and requirernents.

/..~(I, ,',t' . (l ..' 1 ..:'1."'> i~"t' 'Cf '1'~i,t:'n":-, 'tl.'.~;> '~f:~'~•. 't", l't. ,.f'H' A' 'hJ - 91 ~£:•.1 Jcneld Ion "OnlpaJl) CiL., U1e-)t" ,JIL J.lt, c. lCe 1\ 1 Y o ..... '~ . .1",0. , , ~'\J

shall be covered by Article III of this Chlide1.i.nes.

f.~"R)C '::'1, r.ll :c.:" f~ ~.. (">=- .,t'"-fi " ..,..t:~ c.{....c: ".,'.",'}',':,'.~...(-'~tr ~.(:1". f~ "T't" ('-1. "Y ,"', ,...,. ''\'..." ..jC).12L. J~SUv d. ,_.cr .L ...Cd (. Jl,,~ Ulnp Jd"J.iC.... J ~:l.Jen,.,J.< ••1011 "CJ1JIJdl1]

tlYlt confornlS to the o"h1j O"~'ltio"HI~ cro(,'~'.-ty'iivner~::hin fl.nd n1rlrlr'.I~trc"t1"iction I' s+'irJu, ... 0.:. _.'" '" 1. '. . " ••.• 'c"" .1...1.., ,'d '0., "" . J ,., t.• 1:.'" '•... i._L \. •••., ,c.) .1... ...' l.) -- ! .

latedherein.

'I\J(', "(~'ljI:l1"'it~1'~rJ';1.'lP' 'rr;"r){-'i 1'+1-h.,7S'll'::! '1'i" 'l"'(lf:' I;, '11r',.li\I(~(1'tn~Jf.::nf"""';rt'e.:1 .~:~'1'"Ar,A.1,"1 C' i'n,? '~A!1++J1['.1't '11_.U ,,1<.,.1.. ' .1_"Ll.C

!.n _ 1.) {.J.. ~\..,.,.~._.' ..• n ••..•.. ,., C •...•..•....dJ,< \•. \,> •• ~/ •. I..l.~._t) ~,Lu.\.J.,I.!L"'.

',,/alid CertifIcate C:ornpliance, .1.\10 (Jenerating (:'on11)any shall be al1ow't:dk)(' c;i]' pl e;"'t.t"j' C'; t""7 .t'() '::I I ..)1..~;''I/.,1..•1..1..,riJ,tl' r. 'l~ 'l )'"tl"ll' t"'1 (""'1'll')')11' ..'::.1' ?' ~.,,~-1_11';:f"':''-)r t' h~, '{~~/"'l~\C~\;1~.~11'.t

l},,,.

,:1\,,(, . ,,'..l ••'\.- ,.I...• ..l. Y _ {.n _''' ..",l.., ,,,1...""')1.1 ,,_ •..... .,!, ;)u!.,J . (,'11 e.u,l L"'J~'.I \. .... L.t..- vl ...I>-...•,r.l \-v .. .!.

out a C,erti:ficat(; (d~

St~ctio:n 4. S~;;ope"

CiT!id.elines sh.aT1 alIc;',('~rp'r~lt;C'Pcf.Eler''fl'i'.''lt'" inc1l1di1"l4)' .L.rtrl' 'qr"r liplitrcl tc,.•..h, ..,.."J!, •..,. ,,, .. .l. ..1._. -.I.... "_.,~,.,,,,...•..,."...,~...y~ .... , ....,...."...t;;, t., .' to .,,,.t.l ..... " ..t .. ~,'.,...• j

f()11()'\viIlg:

{O ....

(Li)(iii)(Iv)

(v)

. (vi)(vii)

..f:;;.r, ..).t' i"l ••.r:>"f:f'-f. 7':::'F~1'''1''1'i'1''f'.a.~'l'\1,~~..}.,)Jf.li~\ ""11,..,..t,.11."e"::-"j' "1' .. r"[. ""1";;\'11.~A;::lA1.Y~t"",.,,,..,,.'t' '9'1.. t". :l"~"l.d,"l"'t"'(.J,...Jl- .;u, u.1.1 .•...h" ... ;.,."',0,'; '1...11 .l ~~ ~..... \... 1. . ,J.. ..l<lA •.. "l,w,. C '), ...1.•... ILl .. l.J.t:'

(renerating :FaciLities or Creneraticrn (~,ornpaIlies{)VillK~dby']\JPf:L ..tran.sfl~lTedto':PS.ALIVl and subsequently privatizedpursuant to theA ..ct;.A~gusand Pulangui (~onJplexes:.P..~~:~{'~1.1; +1' P.;;' ()TJi11-1"P ri ~:.n.{:l .o.r' Pl':"l' 'j'r..:..I":i' .\.,•..•'\1 N' IJ t"""1- ;;;;;D "l T(j"' .•

.,i ... l.l.t. .,,0 ,..• , . ""'~_;;'I.,.;l. , ..1"", , •. l .••..••., lJ,..Y 1. .' •..):1. .1 - ,

l\ P'''''l'j:::l(ll+te. {i .t~:lCl'l'l'tJ'e'.c 'U"'*l'::!{:"I,D()'I' r-lr'I'.:.;ng'Jt~J"11en.t .-::;r.,{,1 C.)'t'11:"]" .v ':\I"l'_..1:1;.'l,.A:.I .. "-' ~1 . . "'1>.,(.l. ..J J ,..1.\"., J]I. al..U.I. '\,.J." .J.~.l.•.. 1..1,,1 .1•.. C.. ,U .

abts '~lith ]\IPC, }\:[P(~-S:P1J(J,]\[1)\., PNO(~.-EI)C and. othergoverntnentagen.cies:.•..,....' ~..<'

A.ccredited 'fheilitiesunderB()T a:rrangel1.lent and other vad-.ant svith IJi.stribution lJtilities;Facilities ()\vned or ()perated by a :D.i.stribution lJtility;(rene ration C~ornpa.nies/F'acilities under C~ontfact 'vvith a.I)is-tribution lJti1ity;

(viii)(ix)(x)

J

(i) l-\-ny nevl/ly".cdJl~:!ructed facility connected to the (.Jrid \lIlithappropriate .hea1thj sat~~~tyand. e.nvironnlental clearances;

(ii) l\ny facility currently under B()T arrangement and. other.' ' . ], ~r'r1:)'''I NPC''\ (iI)lJ(,'"l" PN' (' (i '["'DCI 1 1vanants '\Vlt:l " ,C., ,.: ,-,). .J, '.> ~.,,-L:~!./ ane otler

, goverrullen.t agencies and govenllnent -o\vned and controlledcorporations; and

(iii) 1\.ny :t~lci1itythat shall operate in an isolated area.

(c) Generating Facilities lJnder Construction:

(i)

(ii)

(iii)

, (iv)

(v)

D()E-.Aceredited facility under BOT arn:u1gelnent and oHler'variants vvith NPC, NPC:-SP'U(j-, PNOC-EDC, 'NLA. andothet governrnent agencies;[)CtE-i\.ccredited f:3Cilitv under BOT al1~angenlent and other~ ~variants vvith Distribution lJtilities;1\lon-D(jE-,Accredited Facility under contract V>lith l)is1.ri ..bution lJtilities;Self-Generation Facility intended to be connected to the CTrid~andFacility locating in .Econon1.ic Zones and Facility operatiI1gin isolated areas.

\ '

(a)

(e)

(t)

Section

New Generating C.oll1panies -l'~ew entities o\vning or operatingone or Inore CJenerating Facilities

{)S AI 1\.,1 •• ' dII"'I:l A'd ..1: ~..-j;. _AV1-apPolnte -:.,., .I111Illstrators

Expansi.on of existing Generating Facilities

5. Defini.tion of'I'ernls - i\s used in this Guidelines :

a. "i\ffiliate~' rneans any person '\\lhich, alone or together ,::vith anyother person, directly or indirectly, thr9ugh one or 1110re jjltern1edi-aries, controls, is controlled by, or is under con:l.nion control \vithanother person. ,A.ffiliatesshall include a su,bsidiary corr1pany andparent COHlpany and subsidiaries, directly or indirectly, of a corn-

rnon parent~

4

't.1. "("Ir,p"tl.(;,> ."t' ~:'I'IJ,lt:'~ r\ If ;:,\ ~,;1r ~,':~'!-"j"f~'j:.p1"" tt) ..It.'j1'~> (~'t"l[1,,_'1"1 /;;"f." 1"~l:t I

l,,,,O 1'~(,)'\If', ',:\ (,'11 r'~:L(',PI. .",~l_,l ,~,.,,) .,." llo,j.l\.. '"t . '" ",,/.I.,,) l.,,, 1.'''J .J.t .••1 Ud 'v,!. oJ ;Jv11 .r . 1£~. '" ••.l ••..•.1.~..1. '. "',

of a Supplier electricity, as may be determined by the ERC inaccordance '\vith thepro'visions of H.../\.,. "i'lo. 9136 a:nd Irnple-Inenting .Rxllesand R.egulations.~

c. "Control" shall mean the power to direct or cause the directioIl ofthe rnanagernent policies o~f'a Person l,y contract, by agency, or

other\Nise:;

d,. "Distribution lJti1ity1~ refers to any electric cooperative:) privatecorporation, govemment-owned utility or existing local govem.rne.nt unit \v:hieh has an exclusive franc,h,ise to operate a distribu-tion system in accordance with its franchise and R.A. No. 9136;

e. "I11dustry Participant" refers to any perSon or entity engaged in thegeneration, transmission, distribution or supply of electricity;

f. "Economic Zones" or "EZs" re1'erto selected areas which are highlydeveloped or have the potential to be developed ibto agro- indus-trial;industl'ial;.tourist;reereational; cftmnTereiai;banieing;.invest-meIlt and financial centers, including but not limited to the fonow-ing: Industrial Estates (iEs ),Export Processing Zones (EPZs), FreeTrade Zones, hrforu1ation Technology Parks and Tourist/Recre'-ational Centers, the "Bases Conversion Development Authority"or"BCDA~\ "(~agayan Econon1.l.c Zone j\l.uthority~' or HC,EZ.f\'\~'(~larkI)evelopnlent (~orporation" or "(:[)C~",~'Philippine Beo..nornic Zone Autb,ority~n or .GPt~:ZA", "Phividec Industrial i\uthor-ity" or "PIA", and "Zambmmga City Economic Zone Authority"

or HZ(~EZf\;

g. "Embedded Generators" refer to generating units that are indirectlyconnected to the grid. through the Distribution lJtilities' lines orindustrial generating facilities that are synchronized with the grid;

h. "Energy Regulatory Commission" or ERC refers to the regulatoryagency created llnder JtA.J.'~o. 9136;

1. "Generation Company" refers to any person or entity authorizedby ERC to operate facilities used in the generation of electricity;

-I

:5

J. -'(}eneration Fac.ility~' refi::rs to a of~1Cility for the prodllction of elec.~tnclty.

k. '"G'ene.ration of Electricity" refers to the productictn of electricityby a generation conlpany or co-generation i:1Cility pursuant to theprovisions of .R.A,. 1"10. 9136;

1. "(}rid. (:ode" refers to the set of rules and regl.11atio.ns gove.n1ingthe safe ana reliable operation, lnaintenance and. developlnent ofthe high voltage backbone transrnission systen1 and its related fEi-'cilities;

1:1.1. "'LPPA.dnlinistrato.rs~' refers to qualifled independent entities ap-pointed by PSALlVl 'vvho s~halladminister, consel"'\~e and. managethe contracted energy output ofNPC IPP contracts, including.sell~ing the ,contracted energy output of these contracts and otferi.ngancillary services, where applicable.

n. "l\rlarket Operator" refers to the '~Autonolnous (Troup .Market Op-erator~' or HACiM{),; constituted by the I)OEunder Section 30 ofR.A. 't,Jo. 9136, \vith equitable representntion fron1 ElectTic PowerIndustry .Participants, initially under the adrninistrative supervisionof the TRJ\NS(~(), which shall undelia.k:e the preparatory workand initial operation of the WESM until the creation of an Inde ..pendent IVlar.ket Operator which shal1 assurne the fhnctions

jassets

and liahilities of the AGIVIe}

0, "J\J ational Electrification i\dnlinistration;' or r.'J'JEA" refers to thegovernnlent agency created under Presidential ~Decree 1\10. 269, as£l.ruended, \ivit.h addition{11 nlandate set f{lrth in the Act;

p, "~l\IationalPo\ver (~ollJoration" or "1>JPC~'reters to the governnlentcorporation created under Republic Act 'f\Io. 6395, as anlended;

q. "'N'ational rrransrnission (;orporation'" or "Tl{j\l\lSC;O" refers tothe corporation organized pursuant to 17~.A.No. 9136 to acquire allthe tranSll1ission assets of theI\JPC~;

6

1'. "Philippine Electri.cal (~ode, Part II'') co\/ers the basic safi.:~tyrulesf~~r!'r;,'~~f'{,:>(JlI"j' "'~"l"(~iil]u '1,"'" e t."" "J' Y'\ S 'lr..••l'om ttl';:", 'h,:i'r~].(1~;;;; '::11"1" I,~]'n{r f:I'O"(')I]'1 ,t], '1f' 1"1'1"t'}.1-'. ''0L 0~.<I, "",bt ~.u. .• 'l:;:> J ,I. .;\ ,u.,. ,. ,t~ •. 'I.. ~ <'1d..,,':;~ .• L.~ La, ".j.,.c, _ ..1 ,"" ".~~.

lation, operation and maintenance of electric supply and commu-nication tllcilities.

\

s. "Philippine Stock Ex,change" or ~r.pSE')'ren::;rs to the corporate bodyduly organized and existing under .Phi1ippine law, licensed to oper ..ate as a securities exc.hange by the S.E(~;

T. '~.Power fJevelopnJcnt PrograIu" or "p[)p'n refers to theindicative plan :tbr rnanaging electricity denland throughenergy-etlicient progran1s ~H1dfbr the upgrading, expansion,rehal)ilitation~ repair ancllnaintenance ofpo'Vver generation andLranstnission .facilities, fonnulated and updated' ye:a..rJy by the.I)()B in cootdination \vith the generati.on, 'transl1]l.ssion. £inddistribution lltility eornpanies;

U. "Povvcr Sector lAssets and Liabilities ,lVlanageI11eJlt (:orporation"or "PSi\.LlvI Corp." or "PS1\L.fVl" refers to the corporation createdPII.rslxantto 8eetion49()f H.;j\';J:~o.9136;

v. HI(elated Group" .refers to a J)crsnn a.nd any 'business entity con-trolli~dbv that perSOlt alonf!\ivit.h the .Affiliates of such bUS1J1eSS

q,J ,. "'-'

entitv~ and the directors and otficers of the 1)usiness entity or its~~ ~i\ffi1.iates~ and relatives by cons3Ilgninity or affinity) legitirnate orconunon la\tv,withill the fiJurth civil degree, of the pe.rson or any ofthe forego:il1g di.rectors or officers.

'VI .• tSupplier~' refers tnany persOn or entity authorized by the EH{~to sell, broker,.Inarket or aggregate electricity 'to the end-users:;

K. ~'Supply" refers to the sale of e.l ectri city to an end.,-user by an In ...dustry Participant duly licensed l)y the El~tC!.

y. ';'Self'(Jeneration Facility'; refers to a pO-Vier CJeneration Facility /o\lV.ned an~J constructed by an, end,.'-user for such end ..user's CJv\/.Il

consulnption or internal use excluding ge,nerating sets f()f use byhouse,holds, clini.cs, hospitaJ.sa.n.d othe.r n1edical i~lciJjties.

'7

~,lJ., ".,~ 11"\~:l'l'it r..)f')V' .If' 'r' '('l-t;'l' 'L'..lt"I' f' ( ,r;'1"'''' ']'1'\""';' .l'Y~' ;;~(" rn l ••..:~+f' rs' te") ),r1le Ir~LjJ-l.,•.t; '....1}':: '1.. ~_ .. h ..... 1,... v •.d. ,,/ .1.... .....'-J \.,.) .\...3<, .. .1 .d. .') .• \...... .I.\.. 1..J._I. .J.1. ,~ j.. C ..1.\) .d.L

unit ofl\JPC: created to 'pursne Inissionar;/ elf~ctrificati{)Il ftlnetion.~

.A.RI'l(~lJ:E~II

Section 1. ()'NIlership L1.1illtati'ons

a. 'Trans111ission C~ross-O\;vnership Prohibition

f\ (Jeneration'Conlpany or its subsidiary or A.fEliate or other entityt" f'j':,.C'fP ~ .. O'~ .",.-::t'. 0'. .1~., lv'. n 3\ ~ ..•..t.' ",',,,.(~.:!l.~."~ •• ,:,,"1"'\"7 r:l'r{("'i ., .,'t'~ -"lr_..nl;:

f1c.,,..,(jtil bLn~ ..L.l 1no ano. "upp'J inc:,e.t.-c llC.l.y .~pCC1J.1L{. J)- ,:L..'l.,,- .•. 01 '-~OC.l~

holder or official or their relatives 'lvvithin the f~-:nlrthcivil degree of con-sanguinity or affmity, legitimate or common law, shall not hold any inter-est, directly or indirectly, in TRANSCO or its Concessionaire. Likewise,'t' '1 ',,"'r. 1") A N 'r;;;;C(') , .t.., ," ,.,.",(;",', ,'. , . ,'\- .' .4:"" .j..~, ,,'j\-'- ,.1;r}, I, J Ql' ."'" l."./~""...1t, .I\.I\.. •..1 .~'.. or 1 .~~C(Jn(.,L,),-~ll,.)ndlle OJ an) 0.1. h,~ ,:;.tOL.1•••...10. Gel S (.II 01.1..1-

cials or any 0ftheir relat Lves within the ft1LUihciv il degree of cons3nf,ruin-ity or affinity, legitin1ateor common law, shall not hold any interest,\vhether directly or indin~ctly, in any (]eneration (;onlpany or l)istribu-tion lJt.i1ity or Supplier. Except for ex qfTieio govern,rllent-a,ppointed rep-

.' 'P "1' f"'I'~ i' t""l l"R \'N' . S., (-)....p,,, ','. ~' .>(,.. • .. 'f.:'~'n --r"" ~., r . ~,' ('", .•.. ,., ...• -;. .,.......... I' , ' ... 0,l\J0enrdt1 vc.." no CI.:lo....., Vv .10 1..', d.110 l.....tJ 01 tLlt.ctOI 0 t.le .."o.J:'" h.C", or

("'1." ,..... 1 ll'b ' ,'f":r'. .1' .f"', (.'1.: ' ' (-~...oncess10narre S1a. "e an 0 ileer or (IHector o. any ;encratJ.on A)ID.-pany, Distribution Utility or Supplier. This provision shall not be appli-.~,b

1'" 4. 'OS'" ALi\. ,1 1...• " 0- tl. po , ,e' .:" ..l t'1, f, t. '.t - J~ '~.>,; t'., f i.;,~.~~tQ ,<.:> b:.'>' O'Cd lL to .r ,.. lV (Ulln

b11.,.p..JJOCA, 1~1 1. S L;,e,BeJ(110n a0,.~e, i:l ale, L.lno

privatized pursuant to Section 47 of FLi\.l~o.9136.

b. (Jeneration ~!lark.et H...estrictions

1.. Cfeneral Principle

'. l\f ~G:> . ,., to. (.'fe'. ' r.', "/ 1.:;' r""'\:+. 7 "." ',' ,., tl' '" -eo "' ," ..'\11~O ;ene.la lilt? _,ornp •..l.llj, .,L awLh) OJ an} 0 .1f...1 p ...JSOL nla)'

t::'''1~l;f'~iJ e .1' rl a.1"1'\1 "'1t"ltl" '''00''''''"\1'') e't 1-,'t l' -or" 1::> ,/", e'h I:l'\" l' C')'to 'l'~ll'-'l'IJ' (1)' n, t)" b.'let'! Y'! ", t l]'nll' .t.[:> ('1\,-.lbf!.b . . '.'; t..u. , -,c "l.LI,_ ~.;. l.. ~ e U •..3,a f " ,. J. ,.L .•....•I . ,I... . E:, ~ ,LJ.\.1 .. .•••. ...

I8

2..Lilnits on (!oncentration in ()\;vnership of Cie:nerating C~apacity

1\.10ccnrnanv f)el'lted Ciroun C'f IPP !~d::nini\~,tI'1tor sinoly'~ ••..... J,,"""'''''' ~,'\. .. (, ~'.~' ,,T, ,.' •. J .'_ ., •...1 d ..•.... ,. t;:;;.., :."~';r~~ll,;.'.l.'~;.,.'Y.'l~f,,'.,...•.• ~;.i,"'~Y' ( ;._'>' .;it' .ji.:.", ..,.,.:" •....'\: .."l:.; ...•. ,: ..:1 '.. '1 ".'S ..,t: .':j,.; l.'.. .:"':t;"1';;'1':1;i4:v:.''''01 III cen, ..3.Hdf un, L;~u1.0 v.fn, )ptr.a e u1 C<"I1.1]O., n ore 113. 1. .:l.l.,

n • fl'''''' ('10 0/-') 'yP '~1r :, '.,,;1- .}']. pr~ cr.'" """,.:,+.' < ')' '~'. .." '4., ""'r"'~; (~.' Jr,. -ifl.,elC..,UI. ~..J ... ;0 L1 ll.e JJ1.':II.3. ...• AM.benJ;",Iallng capaCli.y u. d JfUJ ,"tnt

ot twenty-fIve percent (25(~) of the national installed gex~eratingcapacity.; provided that such restrictions shall not apply to PSALl\JIor ]\lP(~ during the tirrlc that its assets are being privatized pursu-.

"'1: "~., ~7'" t"F" \'. '1' J c'' '1"'l,c' "-[1' '1" .• '.. ]' 11 "1J.,' "C ..••".". ...•' , Ii' "'"'l \ - 1 '''q) ' .., r.:' '.' ..•.. '1 ,< ';;;". '. J""a.J,t1.J •...•ect1on O. .......l. .0... .,._~}. ...' i1.." . 1Jnltdt~on ,;I .13 ..not aplJ jto a' Generation C:onlp~lnyIFacil.ity lo'(~ate(linthe l\JPC>SPtJCf ar-e,as or .in isolated grids thatal~e 'not connectet1 to the high ~voltagetransTIlission systenJ.E'.I?..C\ shall dete.nrrine the installed generating'~r "'.'~ 't,. '.~ ,; G..•.'"1 i ".};}.:>'. '" "j.:.. .,.":. "'t"l'l l' cr:.3 . _. "rl'~"a ". r ....••.t-Ldp,dCJ .I.HI d .JIlt. 3...1(11..1LllddOIldl ln~~,d"e( OCnel(tdnp CapdCl y.

The ..cap aeity OfSllCh -fhe:il.ity sllalllje ..credited tCrtheentity,', 'll' ry't1 ..".J •. ",. , '''I' • ',,"".:r.~'t""" ," "',Pi-}':>' ':'''f:>';'' ."."".r. t't','.;)C 'f"canna .. ln,b j]C l.etll1S (..tKlCOIhJL.lOU,)O.i "le pJIL ...~,01 quan lIe" o.

the output of such capacity sold in the n1arket in cases\vhere dif-fe.re.nt entities o\vn tJ.1e sanlC G'cneration Faci1ity,

In cases \Nhe.re different entities own, operate or control thesarne (lenerution Faci1ity~ the capacity of sueh facility shall be cred ..ited. to tl~t:entity control1ing the capaci.ty oft.he Generat.i.on Facil-ity. This qualification shaH be used for purposes of calculating\vhether a paliicular ge:neration entity is deelned to COll1ply \viththe Inarket share liinitations as provided. abnve ..

3. Lirnitson Bilateral Contracts

/.\. Creneration (\)nlpany shall not sell to an affiliate 1)1str1:-but10n LJtility throl1gh bilateral po-vver supply contr,acts h10re thanfifty percent (50(!/{,)of that I)istributit:.)n lJtility's total dClnand. ~rh.is111'111'1"::It'J".(")11 "'hall ":I1'J1J'1\1 rl':,>{yrlrrJl' ., ,.,l' 0.1.' "'. 11-1",..t1.IC'''I'dei"'lr~I"lrl' l' ,;,'ey 'j)]'f".t;,'. ~e(i... ' .•.:, .'\.. ;) (;:. at ,J .'Wp(l,'l..l. t';,h'J .', J o/"tJ:C.l' . J.l li:l.. l'\. ,). 1.'1.... "",-,.) ,.;

• n,' rr""'!' "1' . . 1 'il . . l'o • , • .:,IJ;'" • "" •.• '~~. •..., ,,~. .~ .• ~, : ' ....:l - ).1~o,'.f . . .,: '] 'j ~ 'I ..~. ,f"~ '.'. ;J,~ • '. .,~ ~ ~. M... ~ p1.n tCIJ110 01 C.dIJdCll.y 01 e.nC[t:~,Y. ., .lb ....D.11.t.athHlS.ld, .. not J.11EJ U( I c.",.-..•. t,.'0 "'t~'" f'> t.::.. ~ 'J' ~ 4. . ,o"" t' . t' 'h..:>; .",.t':{.:':':'I;vt.:.,., 't.,!. ." .J;' r~ ;\ N "'~ Q'1 36Lon f,de .. 21,,,,,11 t1eCL IHI.O pnOl .0 .. C L. JeciJ.d Y 0.1. ""I •• .L]).. . (1. j ~_ , ••

9

4. Penalties l\.gainst }\,nli~C:ornl)etitive or IJndulv I)iscri.rnina-~ w

tory }\ct or ~Behavior

E.Ft(~shall, rnotu plrJprio, n~10nitorand penalize any rnarketpovver abuse or anti -cornpetitive or unduLy discrirni.natory act orbehavior, or any unf~lir tracle practice that distOlis COll1petitiollor.ha.nns consurners, hyany industry partici pant. lJ pon a finding of aprirna,facie case that an industry participant has engaged in S11Ch

act or behavior, EH..C; shall, 'atler due notice and public hearing,stop and redress the sanle. Such re.medies s.hall:

1\vithout lirni.ta-

tion~ include theseparation oft.he business activit.ies of an industryIJarticipant into different Juridi.cal. entities, iInpositiol1 of bid or pricecontrols, issuance of injunctions in accordance with theR.ules of(;ourt, divestlnent or disgorgernent of excess profits, and imposi.-tio.n offinesa:nd penalties under .AJ.ticle III 'Section 7 of the "(juide-lines to Gover.n the I.mposition of.i\dlninistrative Sanctions jl1 theForrn of Fines and Penalties Pursuant to Section 46 of R.i\.. l\Jo.9136~'.

c. Public Listing R.equiren1ents

<lene.ration C~o.Inpanies, which are not publicly listed shall offerand sell to the public a portion hot less than :fifteen percent (15(~) of theirCOnl1110n shares of stocks, provided., however, that Generation COlnpa.-.n.ies, or their respective holding cOJrlpanies that are aJTeady listed in thePSE are cleerned 1.ncomplianc(~. For existing con:lpanies, such public-""\R (l ~t!er:n~. shall be m;p]ement~d.h>ot l,ater :1:~ ,t~ve .(5) y~ars fr0n:.t~l~,~ffec-

I~ tlVlty or R.A. No. ) 136. New companKs sfldll illlpkment theulespec-A tive public offerings not later than five (5) years from the issuance of their

'" S1A~~~11 \ Celiitlcate ofConlpl.iallce.!&/)/A ~W/D/.1~U'~

"'-- ~ 0~Onr /1 V)"'U--- f

Section 1. 1'\..11 Generation (=onlpar!iesLFacilities sh.al1apply fbr the issuance ofa Certificate of C~o.inpliance \vith ER.C~. Prbvided all the requiren1ents shallhave been con.1pJied with, E.R.C~shall 'notify the Cleneration C~onlpanjes of its

iO

I .

':: .~.t'l'01' \.vi.,;-l'11'1'"1 "1' 'yh" \}\"{'t>l.; L''tl G.' ('~ ~:p":;' ,{':c."C,I"] t't",,,,. rL:ltc' C f ~:4'.rJl.••'ij'l ""~)'t"l.O'!'l 'I'!q] .,\~~r;,' 'til:? c:dC ... I .V •. L..• ),>., ../ .VJLL .."c h.ty.)JJ.dJ ..L. ,3.\ •.- '1..1.(.1 .. LJ_ u} .)..,c~.• , _3.. L".L..e ..,.J I.:.J .'."-.'

",1.•. '111 'r,,, "~-;'''''''''''.,:1 .t'l"" ~~.,l- •• ,~.,'f.""'~' ..•..• "f ,rC1{--J'-i ..• , 1.: ...(.'.-." ,.t.' ~ ~"f'1.~ ,'f t'I,,',SlldJda y t It;:;(iUJI\-:-...U. nt, L~ Ut.Jlnl.~SlUn (I .:hl..JltlOna UhOl1na Ji..Jn, {)J 01 ".ltJ. tc. . H;:-1') .('j C' tp;". l1C'l'''') £.'1"}+ .{--"'f" ,PI' 11";1 :1c+ J' f) l'", {', tl '::\1"1 rj'n}')'] 'I'e 'T/-- -'l() [1 c,:.~"l 11:' q '"01"1a'l..q 'lp. f'r~'()TIY1'] ('1- ..•.."l ., dJ."".LI. ,""'--.l ). 1 .l. -eL •." L ,', 1 ,-It. (a .. ;;;'1-'" .'.. ","~1.. ..,-'... '.J.....J., .•.. ,Cl!-~',._.L (./, \,.. oJ. ,>L.L~. ,L.'"

;.~~e(."t.j.(}r~) rr'"I'Lle,f~c''11CjT1iIl' "1.0"(~[~lc"n'~'ir'le' ,}+r.' /1'T.lf.-)l'.lyl~,~d.l.{' ".. ~'l'i'P''r~f.-.•rl'I'll'J' ''li(.'l +•.~) .t,•.p ~"1l)n) I"'t-,,] u' • ,,_. 1 "~" _. . 1." .. vv .. t b ,h... uJ.1.. ".J ii" , .I,.. ~.l<.. 1.. ~.H, d.d .•.. "'-'. \"'\... "L .. C J. H U"" .)l. l •. iL.

't. {.~r~.'1''''''1 T ;<1"1 G.l::.l.1/~.I.;::l-1-1.()11 (.-';('))"]"lr';,':I'I"11' ~s Jr;'.~:1lCl'l;tJ''''':''''"....d .J} ul ~-, 'I,•.. (.Li. ., ... ',_ , ... ~! ..n.",U ..,,~n.I.!. •.1,--, .Ll.~ ..-~,

a) ()perational as of June 26, 2001

(aa) COlnpany P:roi.1.le;(hb) Certificate of D(}E/J\IPC: A.ccreditation, \vhen ap.-

plicahle:,fcc) Three (3) year ()perational11istcJry;(dd) S\VOnl StatenJcnt that each of the Facility conlplies

\vith and. \vill corrtinue to co.rnply '\ivith the .Philippine(lrid [tnd IHstr.il1ution (:ode (P(H)(~)for the dura-tion of the C()(~; and

(ee) S'Norn state.rnent that the conJpany and its generatingfacilities con:rply win1 and vv'ill contil1ue to cOluplyvvitJithe\Vllo1esa'.1e.Eleetr.ieity Spot l\la.rket{\VESrvl)1:)'llles f~";"r"f~lf'.('1.U1",qtl~Or' C ,Ptl1f~(:()(. -: '~Nller 'lprlic'lb'!n.'-•..~,...."...J ..2.. -' .l '-.t •..... 1. J 1 """.~ ..' '.. ., ~ 1 J ". !J.., ,., J •.•

b. ()perati.onal after June 26, 2001 Etud .R.ene'\val of (;()C

(1) (J'eneral H..equire.nlents(aa) (:cHllpany ProfiJc

{"') rJ". '." "'-1" "j' J' '} (')1" '::)1' +~~'U' t.' . ,,'":"'., .eC ..l.L.ICd. --<~.l>;. l.d.c.d. Ion

(bb)

(,,"'J, ., •. {:!.t,r ..I ... ~ p, ..,,~.tl. ..t '" ~.'l 'ft]~ '" r:;' ..•.•Ii.t., .. ". -., .'" 1i;::'I",.J NOIJ1 odl.e.m .•..Jh .tlo::1caCJ1 0 IC _.'aCl ~.y C{}nlp, _,...,~

\vith and will continue to cOJnply vvith. the Philippine(Jridand Ilistribution Code/I,)(4.r),r'r) t'" .. tl' . '" '1-- r t' " '.'f'" i-b. (::I (~1l")(-I..(. ...11 \~'... 01 . Ie (,.ur.:! JOn 0 l .t.. -/ •..... J,t;: ; ", •.• ~. <;1 t,..'t. ',Y. ~,t t1 . 4- t'l"""o .' .' "\1', '1.. 't.,: .cr "" ~ ~.,:.,1'... (J~i\VCH.n 1-,) ,.1enlcn .la t .le con)pan.; d.Ill: 1 ;3 t,.,cnc Id .lH

b.

filcilities cornplY'vvith and \vill continue to conlplyy'oj.'}. +1.. ':> -{"'VI .. ] ~c 1 .E:J].o,";J .••..• 't'\/ ~::I" . ,f \/1,.: ..• 1,. ,'..('VI~1(j,,1jf)vVJl.l uJe V .10c,)a ..c., x..cuJC1.,,I i.:,1tl.){} .L'VJ.dLt\.e!.Vl .....dJ.Vl

F:nlf'''; "i-~'(,~.tJ'l(:C~ri' HI, ....•.t'l' "'~l"'1[)ft:1'll'::l' c.c}r~117lL"'e'n '::.r"1"'\l'J'f.,-::~l')le.'~ •..t--l. ."" 'JI.1. .11 ,I>.. ,'I. U, (;~ -- \JJ. ".... . l~,I\., .. ~...\.._., 'tv.tl ... (,~.J t ..! . ,,", ul ".~~j

J~jI .. r-CJ:ll •... ~"".+(-"( .t.•~.{'t.. "l-F'n .":;,, ... 1..• ,. ..•. '" 1"".1.1"""LVland6t ...,Ul,...,nt ".,on Id_, S lL J.ufCC, \N~leHdpp..J.caJ.I.(,:,:

(}eneraJ Plant f)escription;Loc'ation J\!Iap;Connection ,L\ arePJnent hrt1ycen th.:' (Jrid f)yvner•.•• - '. "'., ' • ...L ~ •.:t:r' '1'r."I .• ,t... ... '" 'JV ~ ,/ .. , ... ~..... _, '~.' rf _ • ..,.~

11

(aa)

(bh). "

(cc)

(dd)

(ee)

(:lJ),/

(TJ{i\.l'~SC~())and the ~xisting C}eneration Facility orInterconnection lJ1ans/details 'f~viththe high vo.ltaQ:e

"- ••••• ,1 (_

'backbone transrnission systenllgrid or J)istr.ibutionSystenl (f()rEn1bedded (Jenerators) aJu1. or T~ra.ns~llJission/I)istribution TJ se of Systern i\grecrnent, ifavailable; and

(gg) P(JI)(~I<-equirelnents1. Electrical/!VlechanicaJ Pla.n~sand. Diagra.rns~2. Plant SpecifIcations including pIEHlt effIciency

.and heat Tate;3. Technical Description of the .Load to be

. served. (f{)f those in iso'.lated areas and thosesetving dedicated load.s);

4. Saff~ty Itules/(il1ideli.nes,~5. WESl\-1 n.1eulbership, ifappLicable; and6. l)et~:rns of .its (~onllnnnication a.nd SC:.AI)A

I:tequirernents, ifapplicable.

(3) Fi.lianciaJ C:apahi1i ty(a a) j-\udHed fInancial staternents for the 2 rnost recent 12-

rnonthperiods ,if avai1a b Ie;(bb) Schedule ofliabi1ities, to include the fz)1.1.ovv'i.ng i.nf()l'~.

n1atio.n: nan"1e of credi.tor, type ofcredi't, credit ternlS;(ee) 5".year finahcial plaJl; and '(dd) [)oGull1.cntation on fInancial trackreeordofthe Cren-

eration C~on1pany and of its principal stoc.kJ.101der; ifavailable.

(4) {)w':nership/Control

l'\rt.i(~lesofIncorporati(1)/Part.nership (f()f C~orpora-tion / Pal1nership) with Certificate of Itegistration;Business N~ll11eR.egistratioll Ce.rtificate (lbr SingleProprietorship).~l.Jpd.atcd listing of shareholders and correspondin.gequity shares;C~oljJ.plete "Listof its Board of l)il-ectors and Senior()fficials down to the level of Plant .i\llanageTs;Types of long te.nn debt and equit'j instrurnent, in-clurJing; LlITIOunt and propoliioh to total capitalization;S\\70.111 State.nlent that the cornpany cornplies "V/ith and

I

12

andand rnanag.e",

\ivil.1continue to eonlply \vith the on crossovvn.eJshipand Inar:ket share lJnder}JllbJic o. 91 IJ1J.pleJl1erlting 11uJes andE{,~,{''II! '] 1- l""q r, "IV~ "'1t't] ...nIl;{:I"l in ,0; .., Is snan ce of C e.r.... ..Lt.;,~JCLU~ ;~'7 , . .l.tl. ...i ,e \J, 1..1';;"'1,,;;)

i"\ f' (~'Io" i"r' n11 ~")y1 f" r-> Jj:'C"l'u.. ,.' .,._lr,J.J..d-'.J.\. ..\w.: J.

Facilities tbe duratJonC~ornpr{::hensive and cornpleleRelated GrOUI)8 ...

1 ,

(:\ertificate to e:fr~cct,\.V1 r.' '1-..1. 'P -'1')'<:"' "'-j '1' ["\ lJ Ii" (',1'.\ 1--.,'1" t:<,.. ~~,.. vv _.JI.'~•.•.•..i.! (.. r-.l _.1 "',,,,,~..L 1...7. ' •...•.

~")':1.'\P{ytVf'r prp"('ha.l;;'e 1\ (Jrf."''':~nJ{:~~'t.''"t'~~"l ..... I, '~' .. ".. ~.l_ ... "', ,.J .. ~ l.b~!~" ....~..J.t..)~

l)h:) PO,\'17f'W SltP~)r)l,..7 (-;()j'ltl'J:.l(.tl;;".~ ~ /' . . YV %/":1. Jr. .•J 'i~ /... j _,...'_,' '.i.i. . ., _l>..1.~

(CC) f'v'1ernorandLllTl ofi\greenlcnt on the Estalll.isJunent ofrl"'~'l'!';;:'t. /\(-. -t...• , q1'll~1.t 'S' l""'\Jr tl.", p (-.\,"'1''\,(:''1' ~:l.t1'/"')1.'1 C'I ('I T":lp. ~l'.l \l ':i I"" r1 /r) ~._.J."J .J.1o. , •..••'-_.w 1. •. "')", .. ,t.;"" ,~:rt:l.'I.-'.I..,a •.. 'L .I. """J,--,.1.1.1J-'~. J".;"'" 1'l...•., "'.. 1.

t.l~eEnergyR.esonrce I)e\leloper and the I)epartn1ent"'f Enf'"<l"ov on F{enefits tt I-Iy~.t(10nrjl1ur~tipc He rr:>-(J., . /,.... '..1. ./:;:;"/_ .. .JI'~' ....• -' ...•.•.. ) ..... Cd .,j ~., .. .l .. _ .1.1." .•... ,.1 •. d ...••••

tjlliredunder R.llI e 29 of the IR.H.;(dd) EIIV1.rOnn1cntal C:onlp1iance C~ertLflcate (EC~(:)duly

approved by the I)epartIllent of EnviJ~on.n1entandJ\JaturalResources; and

i,ce,'.,), ~->.-.L 1"'Pf" 'f"" "f" '~'~"j"("1""'.~1. ttlrtr~\pC1 '7", I,)L1CB'.J JLJr 111 OJJI1d ion (ll CO.nlUJtJl " ld .. -'..\.j _11dYI"c. "'!II' ] 1.''i"/-""\-<\..1 ~ j.~ •••••

Provided) That Cleneratio.n C~onlpanies/Fi1ci.lities operational. as of June) ~. ") (')0 '1 ,.• 1. : " '1' :l". -4-~,. '" .~.tt"h .:-"f~' . r ~ .," '1'1 '.. : . J 4- C> "'0' ':".1 ,-:'t~.~~.,;,''.' .. :1(., .' ~~_. .". ~orl - j:'.;..U, •....., W. He. 1 ou nCh l11tf ...L .. .LildllCli:. a.ill.l u:.:::c....nlca ,'; .::dILd.!CI"n ..A...llllJ I....L () .

{""". 'Z".' . ' ... t '.'. C. -, "". 'f.,'. " :::>p I'l'~'r "j'Jj .t":~{;'1 . I +'/ .. OJ; Pi.... "]',~. "', ~~ .(''':l ..•• :d ' ..' ... '11'):' ~.,t. ".-.t" . tir (~' d ::;Ut;.nera Jon "AJhlpanlc;,l ,dC_..~ 1t".3 J) d1e .. llJppUle .JJ1 .d..He_L, Ll. JU.1.\.}n ..0 c.'..1~0111 eO'''., fit' .... t..-, , (.:> (1'\. . "'l ':j.1 • ,:,,1' -,.} 4,) -, ....) 'Iv "/4-h t1.

1- r;:",d t .. _~.J.u..l, J_ :(51v.-,,,,lup .0 011t, .. ) yeal \;V'1..l1.l!1 "\( llL 1. tC eOILp'J WIL .L.e .:Jd1. s~an

dards.

P.",:.". ,1' J.J IF ..'. "~'I. ,;r.' '1~'r' ':"~C'.'-" :,'r t' . F'" .~.,,"l.'."t .. , '1' . -.1.' I r:. c 'b' ..~;;,:'~' .0 '.'7' .. (,".'!., lJ 0\, leit(., Ul t UJ, _:nat u .renCld Ion dCl.J Y tV", lIe J .1iJ" CLJI pn.:..\ lOU"l)1.""''''rIPd' -:1c,(')r~"l"la ..lll'~c)t:l.Je' I'f';(nll'l~f.d. t() ~'e'C~lll'e a. C'I.()C: e"\1f':J11"f' r;)C('Pl}"I'f'(J JMJ'''.V ~ l')P\'Il.. d0 .•, •..- .(.. . "" ,) J.b .I. .• Lv •.I" ..•• ..,... '- .J _'. . _-'.. .~.•. ~. '1.I~._.,"-, J "./ (.1 .. >..I v.•

o\vner. Such transfer of o'.vnership shall ho~vever be :reported toEIt(~ "\;vithiIlthree (3) days. '.. ' ,.;

Prol:'ided ,F'urther'rtuJre, That if the nC\tv OW'IJcr does not rneet the finan ..c,'.-~1 .. r~t." '''1,' . 'oJ')'1 ,-i-.",. :1,"" .-,1". .. ". 1> ,J -.f'r ""-j ~ :> ~rt:r' ("'\ ,... '.''\ r t] !"-l ., -"Y\" .• ' .. ? ","....,1;;;",ana f;;C mICa SI.d.nc.d.H.l.S leqUllen () d lTtJ1e.Ll h.Hl .....OIUpany, .1(, IJt. dU\vnClsh'" 1}b 0" """. r,.A .).' .. :1. yt:' p. /1") '\lr •..• t.h.,'U .• "'" r' .'. Cf l'P, ).1:"t1.\ ". ~"-"I("'}I.t ... ,1; ..••1-.. ,. <:1_. e l:l\tcn ,.i,pCnO( C.O.DI.,' \ .' ;! edJ 01 . e lCl11d..1fllTIb he CJ. ..U{; \,_, ., '_", 'VV111C.Ll-

J3

Provi I,?:! F~inalll) tJrlt 'lnv hlrve1< <'f tr''lns'fer''''f.' of (Jener'1tion ccrn]')anies' .K"ct., .' )~ {; ''''''", ...• ' •..: "J. CI i L. ..•. ~,'..,. c.' ..~. J. / J ,._~,.

')1;" 4.1.' :'.:\c.,l' 11".t1' I'~;" ~'J'l' ('l'I'iJ'::!. c"'(')I'Yl' p.l, 7 V""71'th' "r' J"lp• '1"11'{~~Vl'f' l' 1"'''111..''' l')"1' ("1"(')'-' (' ••[~'plpel"I' 1-~l'r~'iJ.,{,j IY\ (1'1,1(1°' 'I""-. . a .....\...,;).).. ,,,._~j •.. t. ,.:f \ . . ,•.... ,. ,I .• ~. '-' ..• 3 .\.. J .. ', ... L.hl 'U' VV .•. J, •.•. ,':l.B. } '._ ..1. 1..J.J .•..U.h.",...". . ~sllare restrictions.,

;iI.. ~K~j)"'if"'lr('1\l'E.~~~"l.L, 1h..l. ~ .11. .il. ..,.I A ..J J:...

~,.~:l:">'.~.f '.t.. i[).~1 1. (~{')1')'1')"']; '-,1l~'11"'("-~~',v''']' 4.t1 rr.-'P"(' 1]~'ll'1" ':)1 (:!t ..~n d '-.r] ,rl'".. ~. ~, . .I.. ~ ...L:.I ... J ...tUJ. ".' .•~ 'If .. Lt . 'Iv t.t ..1. 'v(;t l...J' <'1..•. ~".{.l. .• ~;).

i\ (-~.., ....:'" '.'...t '., a ("i ..,. . ,,',.,., ":' " i. "'1'1 ,~~: ,.--" 1" n t " 1'1 ';j. r;;; ,1:> ...• :' '1':"1" r.. ~ ',.' ':'. """~. t ':!1 ,.J t,/~ . Je.nCld 1116 urnrJ311y ..).lld cIbU1e.1dd .. 11." laCl. .1.1\;,0 cUllueC t-,U .. 0't". ,., C:',' .:' . ::JI."t .t1 :.'t.",r,l j" 1 ,if'(\~{J,'" . ':1 ~ .•.. ffl .• '+. ~ . r'O ',. ,'.,t, •• 'r~ r,.J"t1-.~ (''''':.1 C'I. :1 ~nt, . InG. n1etl .lIe. t.,..-1.HHcd ll,;.,~;l.t::Jl ane UPe.I;;;ldOndJ Cl1I.Cll.:,~'!.Jf . lCJIHJ. . ,OCi.e~;t J I): I;',.t'....b.~.".t' " , ("C"l ..>.. • .. , .••.. 'la~.: .t'..., .J '1",' 't1 ,,;~-qI) (I oll".oJ '.,,,, . ~f3q]f,{~.t. :{'''::1 ('if .''''1 'd ..~J.(l 1d 11 U h.111 •.",Jot", pIOlnU .~'.:>,j I.A1. J'y 111[, I.-th ,.i 11 .1pPU1.., ..t" .~,,"",',IL_.d. ~.'\')'I.., e",:.. .Jtl rl""R 1\]\TC1("I() ' ....•..{., .' '. C";.';'-' .,".'P : - 1. :1' '}' ',', "fJ' +}. '::\"'; ~'t ~•....jlC'•..U1<,L Ie .... 1" . ~f:") ' .. 0111.::1 conCe,:Jl,.d~Jnal.l"" Inc lHJ.!.Ug, dnl01l./:;) Ot.lt,lS, " anCl;:'UCJ

for voltage fluctuation, frequency, haDl1onics, seeurity, reliability, unplanned.~.+ (T" "~, , .• ,1• ...,:..' ("("':""'"1]"''''' .fillo ... "',o:>,",r .-jelr'll.'. r.::"'r'.t':ll'" ",,,.,,,.od""o Lhabes ana pHJvlt,lOn .1.11 a.t1Ll .dry St..lVlCCb dl1\ .;:511d 0lJe.ld.L In deCOI .dnce

\vith such operational criteria.

S."!.::..,.•••ti.".2 .. C"' ... ...,'j". , .,. ... ~ 7't,1 l=;' ..... r, "'i.l~tn: oJ, •. J,j .. t l; •.on ... "orrlfj la.nee ~ 111 In dI1C1<.1.~_"dl1<'td1. CiS"

i\.Generation (~ornpany with f1:H~i1ities Ctinnected to the <Jrid. shaH con.,'t': • . tll.3 t"~< ' •. ' .. ,,' • 1 ('+r . ,.J ~1"~d., ." .. ','17 '.1 :0>"':1.... .•..yc~ (":'1.• ' fj' (l . '~E' f'h ,:~"'.."t", • "1 .,'.':. .':.... .e'~71.'"' o.nn to .Le ..1ndHClal I:,}hUH.h..L_.S P.lO "1.{Jt.dHltn,,, . ]11.. ..... Otl~.". CL1CUJd. Pd.ldll1.",LC1S

-- J" " l'. . <.1. PJ: '. ': ] 1 l"!{~, . '1.~"If" ., ., 1" .:. rl 'I.,- :C' r:)(l 'I. r ., Pi J ....1": t 1.' ',~ .... "..,. . ff." .t~l f~ (.'-:1 '0>;' t' , .JOJ ~\HIL.d .).1d. L"" (,et",J.IrL.iJ<:,H LJY L~ .\.._/ JdS •.....C 0 .•1 ..1e n'AlUIt: C .1,"" Jener~l IngF-'.".J.(:'il" l' ,j.,~7,el", tj.

14

Section 3, C:olllpliance\vithEnvironrnental Standards

A (ren.eration COIYlpany shall ensure that 1.tsCienerati.on F,'acilities conlply\vith applicable enV.lroJ)Jl1ental Javvs, rules and regulations.

Section 4. CJeneration .Facilities ()perating in Isolated Areas

A Generation COllJpany operating ~l (}eneration Fac.ility in isolated areas5h.a11nleet the technical and Hnancial standards to be i.ssued b.v ERC~ US.i.l1i~~V),..

4' ~ t''1". i i"" r.' i. "f .• t' LIp n..~'''i' ..••. .. "tl'; .t' '-. f')~. 'Y..'r f",' • <' .. ,,1 .~.tl' _....~ ""f"" .. ~ f',.'P lCaLJ.J.e .Inc plac lcao ..... cdl.ena \\11 .1Ln "Wu \,'_) yedL-J, or ;:,UCllU .lel p...,IIO{j, dB

nlay be specified by EI(C~,£I'oln the issuance of such technical and financialstandards. The generation rates to be charged by a (}eneration COl11pany oper-atinga facility in SPIJCr urea's and. isolated areas shaH be fixed and deternlined.•..... .by the El~C:.

Section 5. Structural and Fu.nctio.nall.Jnbund1ing ofa Cicneration (~on1pany.

)\ CJeneration COll1pany shall st.ructurally and functionally unbundle itsgeneration business activities and rates £:1'0.111 i.ts supply andJor related busi.nesses.

Section 6. Self-Generator's C:ontribution to the 'U'niversal C:harge

;\ Self.Generation Facility, \vhen applicable, shall rernit directly toT.FJ\j'JSC{) the corresponding lJniversal C1harge set by ER.C~.In relat.ion to this,TH ...l-\]>JSeX) shall be provided access to the custonler side of the rnetcr in orderto detennine the utilization of such Gene.ration Facility fb.r the purpose of as-sessingthe cO.lTespondi.ng lJ.niversal C~harge.

Section 7. Bene.fifs to l-iost COll1nlunities

I.he ob1igations of Generation (\on.lpanies and energy resource develop-'GfS to conlm.llnities hosting the energy (}enerati.on .Fac.iJities and/or energy re-source developers as defined under C~hapter II, Section 289 to 294 of the LocalGoVe111111ent Code and SectiQp 5 (i) of.Republic f\ct No.7638 and their irnple-n1enting rules and regulations shall continue, provided, that the obligations ll1an;.dated under C:hapter II, Section 291 of :Republie }\.ct l'Jo. 7160, shal1 ar)ply to

jj~

D1'1vatel v,-,o \iv,n.ed1 .,

{~r;:'lit.,,;vd ,~).

o.r

Section 8. {"]I:~]'"\Pl".ltl' ,(')0 (~>~j'rl11"v]''}'\J 'r,;' I)Qli'l'C:l' ]""3:' tJ'lYtl l''j'1't'hi'~ \J\.ll::-;"';: lt~'/l. '!.".b •... O. . .•..... \".1 .. C,n.i J •..~ .. ".!. .. '- ... ..1, ,\ ..• .1, .• 1 ... ,,,,,',\/ 1..),-1 .. '!I.

(\ r:!.," :'>\._'.t' , (: '1"'-': "'\. "T'-t1- (",:1~, ',-'.";y".'" l~"::l"':'l".'t'f";' CU(' 11 ~ ".t~ ...]"'c f ;,;.;l.L'1.. \JeUc,Id Ion .-.o~npdn'y V\1..!J ,.JLHeL"non r u.C1. .1L ..S .,.'un!~J...c ...Ci I.~J d gLn"]-.. l.t -f J{,~' f'~ -" .. t'."" ¥:'vr'l::l"l t' 1'1' .:11111.;1- "It'f't (-) 'JI.~ .. t.- .t., ~.,:'111::> tlA.p M' "k.~.t.)..la , nJdh.{, 1n OJnlJ lOUd, dLd J e () i]C lv_al........ ,J peld 0.10 tJldLC . L", ..dl t'

Orjerator to inlpleJl1ent the apJjrop.r.iate disrjatcJl st.hed:lliing and shall conlply'v'lith the said scheduling in accordance vvith the 'N'ESM R.ules_

j\ (}eneration (~o.rnpany shitll1i.k:e,vise nla.ke l11fo'nnation available t{) theGTid ()perator to facilitate (:entral .Dispatch by the grid operator. Su~ject toteclm.ical constraints:) the grid operator of the THJ\l\IS(~() or its concessionaireshall provide C~entralr)ispatch to a Cieneration Facility connected., directly orindirectly, to the transnl1.ssion systeln in. accordancevvith the dispatch schedulesllhn~litled by the .M:,ltket Operato.r?~whichschedtl.leshalltake ir]t{)HCC011ntout-standing 'bilateral. contracts,

Secti.on '9" [JOE R..epcuiorial R.eqtliren)cnts

l\ Cieneration. (~o.lnpal1Yshall subnlit to the I)()E any infortnation as 111aybe required by the I)C)E fen: the }.Jreparation oJ the Po\ver Eh~'i'eloplnent Pro.-cr'~ ,>< ~' 1'''1' "'t"t. , .•... ,' .~~ '~.,'n".' ,.,. ..,.', '.-"".' ":,.•. , .t.1., ....• " •.. , £"';..]""",tl0.1."I"' -t" ~' .. 't;.,.IdJl1, l~U--JeL () appIOp11.2he .rned.SUlt,S[O pJcStTVe Ie ••.AJl1 HJ.cn _.a 1..y 0 pIop.n-.etary or cOJTunercia11y sensitive ini'bnnation.Section 10. ER.C .R.eportorial.R:equirenlcnts

..,~;g, •• vVithin 30 days atler the end of each fiscal period, the Cieneration

C~onJpany shall. su1:)Jnit to EH.Cl a Jnanagernent report or discussionon operations and financial resu1tsvvhich sha11 include tIle f()l1o\v-.l.ng:

(i)-' .R.Cp011(Hl capacity utilization, electricity dispatch/salesvohune, nl.aintenance schedules, and unscheduled dnwn-, J" l' , ,. ',",(:' ',[ "l: "'. (]r ,..... ... ":':J.i1ol. , -~ ,-"tuneL1 \.L1U)i~)t Ie J.h.d . .lCiCl

•

J6

(ii) Report on bilateral agreements entered into during theper.iod, includ.il1g copies thereof

(iii) Report on energy revenues during the period, detailingvolunlcs, the ide.ntitylies of the bn.~yer/sand prices hro.kendO\Vl') ':'\.1;;; ..PC) 1"l' O.Yl 7{" l':;]l;:' 't (....0 s't. '1;['1v I~ ri /)}J" er r~ t 1'11°.' 'In('ll"~'..•.r-, l'11+e.'''_

' .. 0.; 1 . VYQ •. l ."'. ~ ,', 1 1/\.'" ,... \.. , •....~i. •...•. t;:\ <, J,l<.,t. t

,n.ance expenses~var.iable operatLnga.nd rnai..ntenance ex",penses, and. capital recovery charge

(iv) Any material information affecting the operations, own- .ersh.ip, .rnanagernent, and financial condition EU1d resultsoftlJe (fenerat.ion C~olnpany

b. Within 30 days from the filing of its Income Tax Return with theBureau ofIntemal Revenue, the Generation Company shaH sub-111it a compl ete set ofi ts audi te d financ ial statements (i. e., balancesheet, income statement, statement of cash flows, notes), includ.ing the audit opinion and the statement of management's responsi-bility on the financial statements. The income statement shouldinclude a detailed schedule of operating expenses for the period.

c. Within 3 days from the happening of an event which results in amaterial change concerning or potentially affecting the company'sownership, management, operations, financial condition and per ..fomance, the Generation Company shall submit a written discIo-

. sure to ERe ofsl1ch fact or event and its impact on the company.

''''1 .' '.' '11' A -'1. .' . • C . J . .(.''' ']. ..' 1. . ... 1 f' h . 1 '1'Sectl.on. . 1"\. (Jeneratlon ,,--,orn).):anvthat ILHS toco.rn)J ..v 'VVJt] any O'~t . ese 0 J 1.'l\f' , V 0\0<"

gations shall be subject to fines and penalties as may be imposed by ERe underAliic1e III ofthe "Guidelines to Govern the Imposition of Administrative S£UlC-t: Y'c • 1"1 "" F'~., f"'F"j '~' ''1' d IIp', .;'l.ti:>~ -p~..... , .... ,~.. t.~ o(-"'('t', l~[ "'f"B');..\ 1\.rrlLlb J1l ..1e. unn 0 . ...J1t0 <.J1 '. ~.1j ..ew .. U1suan, () ,:>~~ Ion .0 v. _",.. "' .).9136~'.

R.E""..rOC'" '''TJ.' .0' 'N. ()F 'IT![Jtfi' .(-iE"'r~r1J"li,;"lf.("1 .:!ar'lr'lC' (1 [j' ~""'()i\.JIOflld' 'f!. ~'('''''[;': ,jf, •....h , J, ..,1 . .lC.i.Jli., ,.' Xi .~'- jL~.JI~ Jj .....l~ .lI., j~ .J ,fJJ.' •••..• '.. .L 7Y.R.k 'o'iI.• , .AI,,(;\. >r.. ,'Jf~

17

of said.

'.r•...! ,~,."""".\'1"' ,.~., .., 'l: 7«.,JO'Ul1.!I:J£.IJ.l) .

"'1'" 1'll;,"', .t~ r'.t"~' ,..•. ('~;')' ~l')/' ",., !T'lp ("i()'(''''C/r:>''l::,>,l.t" '.' .'1\[''[..,., ...• (-1 .• '. ,.'t'l)~)JaL l1d/C dtlnJ or . .lVL._ .. ' ,),(,d1.:.'), ..•..11.:, _, __ ,' L::>~LtAJ ()c1"4t.,\A/ \,J'e.neld.lLf)

Facility, on the oiherhand, shall have a tenn equivalent to the rernaining life ofthe (~()C 0fthe (,.'eIleration (~0I111Janv.•...

Thereafter, a (]eneration (~olnpan.)/shaH alJpJy \vith ER{~ for a Tencvvalof said (~eIiificate of (~ornpliance_ l\pplication for a renevval ofC:erti:t1cate of(~tr . " """',' {":C' ';;'1 ,;, 1') '1..'" '''. ('"' .•. '" ': .. , : f".d. 1""~ ,;:~l."1 {f ..lO'f' '1''1' 1'" .{ :".f ,..":t'. 'J". "..:1" '. -,.., f ~'~.. :.".... ,~)n.llJJlan"'L ...t1d " ut. C)."COll1fJdnJ"" , JYd, eJCL..,Cu,JIJ.e{ l1LOllD.d JLll l.JlSL.l.J,)tUer. d' ..' .. f"'nf'''' ,.J.:'. rr' h' ( .t:l, .~)1. l' {:r ,+' [' " Q ',' "t -to' "t.j' ..,. 'l.i (' ''',":j' ,J ~;1" :"£In piOO. -.~ conJOc ...,Uh./ t,J jiC (,0 le,(lLhJlL.> •.,C.CH 1111fl,.,,) CrUltH::;11neS.

rI~'..., ("''\i)',(.'~ (.\-'~'(."=~'''''2k'' t"l" ',.,\.-", .:~.J ',LM, r .(.•.:i."' ..... , .•, ...t ... , ( , ..'/1 ... '.• r:.' ('hrI'l' .. ,.l'.d:.';'.ne '-" ..' ,,,ULbt,q Utn ,y L;,~)Ue(J t~c.J d .Jt,neL:1 Jon AJ.lHl.h:lUY ~ d. InC1L1 ',,'.,') 1] {,"f'" 't,., 'G:~J:>.. f' 'r ji-j' 0' Ij ., :1't,' .,ro' .' ..••. ,. 'f'r'-' 't" .... ,,of .tl" t", .. :" 'f': .,,,, ''''''.'1 ' .. ,.... ,~ '1->.J t1 ,....tbl, ,),1..'; ("n~ldLn:.;:\ f acJ. Jlf ...:) In (Jfh.:...d Ion d~ ,Ie. UJJL0.'. 1cnc'\)v a ,)Ph)\ll( fA...!. Jd

the said Facilities are in cOlnpliance '\;vith all the requirernents .herein set forth.

t~R.\" f'I',.,1(,'.11!f. /Jr. 'V"I3']Y['':ll. l&. _. ,/ ,i..••.L .ILlii.

J\t .'1" ....,', ti . f;'C""lo " .' .. ,•. 1 C'\()["i: 'r'''.",,:!.>(, .•. (;" ..•. h r, ',' ' •. ,.t'" '.. ; '. ,:," "t' '::t l.yt.".)" f,,:1,L .pp led ~on .LCS dlHJ .',.,'\,,.,.C\v0 111.:JUL..•. unOUllS as UldY k. ot. ,eltr ..l11"",{.l.

and. prescribed by ER.C~s,ha1Jbe irnposed on alI applicant.s upon the filing ofapplications and issuance of C()(:"

.•t. 'H) "''!f'1lll'C' 'f L 1I{'\ ''I,ll1fI' jfj :!l.,J!.'ft,. J1.1 J , £.I'.Ii!..Jl.

Th;l:f d)..~~[...'~'-r: ftll;JlIW N!'(' ,'i.IIVI!i\\" .~ . .I'd. . ~J.!L'L:L )11

ql7.C\~b',11 ~,''. :t '. tl ...~ ... ,... "'1'" '" •. ';:' -,t"'(~'l ...:;;,' , .,~.t"'1' CO., . ' .... '.~.,., T'/'.tl' t'J'.-:~,.LX •..~.,'S.. il ., 11J0111'(H J.1t COI1JjJ LdHCC 0. ,,,h,,/neld lcn ' "ODlp.aJUC" Vi,l ..1 .h: ..le . C ,.. I -.' r:

t-,t', .• r.; . £"t:I,::,.'oo "'~'i' £,'.'" t;" .., .t'''' ", ... , ':' ""1',. '. "..." r "-1 ".:1 .., ~~ ., ••... ~ ".' c" .-\" .. ""f't.]....('1.~.rnJ..) a.no. COn"Jlt10IL, o .. 11~",,1l \"\...1 lHc,a t u, cun1l..J JdULC d.1h, lilt.. ).110d.:dCil1 (J ,lb

Cruidelines_

18

/~ .;iI~l)"'lf'wC:L' .~f ))'7~ 'jLll.:\ ..l .1t . . 1_1 .~...I. \..

f11lrO ,,~j-) n...n' .1. 'l'''''~l~, l1.:..I..[.l.l.. :'\.A Jl.!UlJ ..l

If for any reason, any section of this (]'uide1i:nes is declared unconstitu-,tiona] or invalid, the other parts or sl':;ctipns hereof which are not affected therebyshall continue to be in ihlJ force and effect

.f\JlI] (~'JLEX

~E~~'FEC~rIVJ~ry

This Guidelines s.hall take effect 0[.1 the fifteenth (151h) day f()l1ovving .itspublication in a ne\vspaper of general circulation ..

P . (i.' J. .. ')1."" "){.)O''). aSlg ...l.ty" nne ~..o, .... """

1~~.~~.Ft .B. Bf\IUN

ChailTIlan

'VI£ll B~BU'li\lJIDC:o.mnliss:i.oner

1.9

, Republic of the PhilippinesEt,~E R(; Y !{EC; tJL[\ 'I' 0 -RY (: () TVIIvI.fSSI () (\J

SEll] j\;liguel I\Venucj

Pasig City

C;UUJELINES ,FOIl'I'JIE JSSLJAN(:E OFC.'ErrTIF1CAl'E OF COM_PLIANCEFOR

GENERA nON COMl'ANIES/F ACILITJES, AS AMENDED I

Pursuant to Section 6 of Republic Act No. 9136, its ImplementingRu.I.e~.~all~Y H~\llmi8n.s,...\I1yehU.ippine ...0rid. and Dj stri !JuHon COi:,!C;MldtheWhol~sale ElectriCity Spot Market (WESM) Rules, the Energy RegulatoryCommission (ERC) hereby adopts and promulgates the following Guide] inesjur the Issuance of a Certificate of Compliance to GenerationCOillpanies/Facili ties.

GENE:Jli-\.lJ PllOVISIONS

Section L' Objectives; = This set bfGuidelines is prescribed to attain thefollowing objectives:

(i) To promote free and fair competition and accountability ofIndustry Participants to achieve greater operational and economicetIiciency thereby rationalizing electricity prices and making themconlpetitivc and transparent;

(ij) To enhance the quality, reliability, security and affordability ofthe supply of electric pOvver;

(iii) To promote a policy of 11.111 disclosure of all transactionsinvolving public interest; .

-----.-~-~--I Promulgated by the Commission on March 7.2003 and was published at the Philippine Star on March 13,2003,

(iv) To ensure and accelerate the total electrification of the coumry;

(v) To enhance the inflow of private capital, participation in theattendant risks, and broaden the ownership base in the powergeneration sector of the industry.

(vi) To providQ an environment conducive to wholesome andc? nstr~ucti~e ~9Qmj)<tn~j9D thercnyp romotingeffi ojeney _iht1lernaniigeniellt and 0peratio n 0fl ndustry ParU c jpan ts.

Section 2. Guiding Principle

For purposes ofthis Guidelines, there shall be two kinds of COC:

a cac issued to a Generation Companyb. cae issued to a New Generating Facility

Provided, That the cae issued to a Generation Company shallinclude all of its Generating Facilities in operation <fUhetime ofapplicatiofl.An -expansion, .COnversion, or repowering of any of the GenerationCompany's Facilities, or an acquisition of a new Generating Facility shallrequire a separate COC for that particular facility.

No Person may engage in the Generation of Electricity as aGeneration Company unless such person has secured a Certificate ofCompliance (COC) from ERC to operate facilities used in the Generation ofElectdcity.

A cae shall be secured from ERC befi)re operation of a newGeneration Facility. The cae shall stipulate all the obligations of aGeneration Company consistent with the standards and operating guidelinesestablished herein and which ERCmay require frOI11time to time, and suchother laws, rules, and regulations pertinelit thereto. A cae shall be issuedupon compliance with such standards and requirements.

A Generation Company existing before the effectivity of R.A. No.9136 shall be Covered by Article III of this Guidelines.

2

Sectioll 3. (=c;rtificat~:~s ofC'n Ul pliance

ERC shall issue a Certificate of Compliance to a Generation Companythat confbmls to the ubligations, cross-ownership and market restrictionsstipulated herein.

The ERC shall issue a Certificate of Compliance to a GenerationFacility that conforms to the obligations pertinonl to Generation Facilities asstipulated herein.

No Generating Facility shall be allowed to generate electricity withouta valid Certificate of Compliance. No Generating Company shall 1x~allowedto ;,eIL eJ~ctri9 ify .tOfl Pi~.tri IJIJtiq 11.Uti.! itv, ..SunDI ier.end"user Of .th e.WESMwithout a valid (::ertific;ie of C~)mplianc~: · • ,

Section 4. Scope.

This Guidelines shall app.ly to all facilities used or to be used for theGeneration of Electricity, including but not limited to the following:

a. Existing (]enerationCoJnpaniesIFaci lities

Existillg Ceneration Companies or Generating Facilities shallinclude:

(i) Spin-off Facilities ofNPC or their Transferees, including(;enerating !?acilities or Generation Companies owned byNPC transferred to PSALI\If and subsequently privatizedpursuant to the Act;

(ii) Agus and Pulangui COfnplexes;(iii) Facilities o\vned and operated by NPC-SPlJG;(iv) l\ccredited faci Iities under BOT arrangenlcnt and other

variants \vith l'IPC, l'~PC-SPUG, NIA, PNOC-EDC andother govcrnnlcnt agencies;

(v) /\ccredited JaciUties under BeyT arrangement and othervariant with IJistribution Utilities;

(vi) Facilities ()vvncd or C)perated by a Distribution LJtility;(vii) CicnerationCornpanies/Facilities under Contract with a

Distribution Utility;.,I •

J

(viii) Self~(Jeneration I='acilities2;

(ix) Facilities operating in ECOnOlTIIC Zones; and(x) Facility operating in isolated areas.

(b) N'ew Generating Facilities:

(1) Any, newly ..constructed facility connected to the Gridwith appropriate. health, safety~d(;nvirQnrnentaI......clea:ra.hces; .

(ii) Any facility currently under BOT an-angement and othervariants \-\lith N'pe, NPC-SPUG~ PNOC-EDC and othergovernment agencies and govenunent"o\\'ned andcontrolled corporations; and

(iii) Any facility that shall operate in an isolated area.

(c) Generating Facilities U'nder Construction:

0)

Oi)

(iii)

(iv)(v)

DOE-Accredited facility under .BC)T arrangeme~l.te+-h.""'\other variants with NPC, NPC-SPUG, PNOC-ED NIVand other government agencies; . ,/"

'DOE~Acctedited faCility underBOr arrangelnent anci'other variants with I)istribution Utilities;Non-DOB ..Accredited Facility under contract \vithDistri bution 'Uti1iti es;Self-Generation Facility3; andFacility locating in Economic Zones and Facilityoperating in isolated areas.

(d) New Generating Companies - New entities ownmg oroperating one or rnore Generating I~aci1ities

(e) PSALM-appointed IPP Adn1inistrators

(f) Expansion of existing Generating Facilities

Section 5. Definition of Terms - As used in this Guidelines:

-----------2 As ~mended on March 7, 2003:1 As amended on March 7.2003

4

a. "A fliljatc~' rncansanyperson \vhicl'l, alone or together 'vvith any()ther person, directly or indirectly, through one or 1110rc

internlediaries~ controls, is controlled by, or is under cornnloncontrol with another person. Affiliates shall inclucitz a subsidiarycOlnpany ~lnd parent cornpany and subsidiaries, directly orindirectly, of a COH11110nparent;

b. "Contestable rvrarket" refers to the end-user~ who have a choiceof a Supplier of electricity, as may be detern1ined by the ER.C inaccordance with the provisions ofR.A .. No. 9136 and itsInlplernenting Rules and .Regulations;

c. "Control" shall 111can the Dower to direct or cause the directionJ

- ...--Of t!Te'ri1a:nagerTIehtpdJicies~6fa-'-P6J;Sdlrby-:coritract,'byage-tidy; .or otherwise' ,

d. "D.istributionUti1ity~' refers to any electric cooperative, privatecorporation, governrnent'~owned utility or existing Joea.!government unit which has an exclusive fl~anchise to operate adistribution systcln in aC90rdallce with its franchise and R.A..No. 9136; .

e. "Industry Participant',~ refers to any person or entity engaged inthe generation, tranSH1ission, distribution or supply ofelectricity;

f: ('Econolllic Zones" or "EZs" refer to selected areas \:vhich'arehighly developed or have the potential to be developed into.agro ...industrial, industrial, tourist, recreational~ cOlnrnercial,hanking, invcstrncnt and financial centers, including but not:lifni.ted La the Jc)l1owing: llldustrial Estates (IEs), .ExportProcessing Zones CEPZs), J~ree Trade Zones, InformationT'echnology Parks and Tourist/R_ecreational Centers, the "Bases,Conversion DevelopnlentAuthority" or '"BCDA", "CagayanEconornic Zone Authority" or "CEZA", j;'Clark DeveloprnentCorporatiol1" or "C:DC", "Philippine Econonl1c ZoneAuthority" or "PEZA'" "Phividec Industrial Authority" or"PIA", and \'Zanlboanga City Economic Zone Authority" or"ZCEZA.;

5

. --'- -- ~- -.--..-----..--..-------------.------.--.-.---..------- -----..-..-- - -----..-... '..---------- -- ..----.--.- ..--.--f ....•-..-------..------- •...-.- ..---.--.--- .•--------.--.- ..__ . .__. . ._ _ _.__ . ._. . __ _.. .

g. "Enlbedded (lenerators'~ refer to generating units tha.t arcindirectly connected to the. grid through t.he I)istributionLJtilities' lines or industrial generating facilities that. aresynchronizedvvith the grid;

h. "Energy Regulatory Comrrlission" or ERe refers to theregulatory agency created under R,lL No. 9136;

!

i."9o~~sr~:ti9DCon1p~p:(If ...r.~f~o~s~?anXP~~'so~..?r entitY ...~l~th?riz~dby "ERC to opel-ate' facilities' used in' the geii'eratiof1 ofelectriqity;

j. ,,"Generation Facility" refers to a facility for the production ofelectricity .

k. "Generation of Electricity" refers to the production ofelectricity by a generation cornpany or co-generation facilitypursuant to the provisions ofH ..p~.No. 9136;

1. "Grid Code" refers to the set of rules and regulations governing.the safe and reliable operation:. lTlaintenance and developnlcntof the high voltage backbone transn1.ission sysfem and itsrelated facilities; ,

In. "IPP Administrators" refers to qualified independent entitleSappointed by PSALM \vho shall adn1inister, conserve andmanage the contracted energy output of NPC IPP contracts,including sell ing the contracted energy output of these contractsand offering ancillary services, "vhere applicable,

n. "Market Operator" refers to the "Autonornous Ciroup 1v1.arket,« . .

Operator'~ or "AGlvIO" constituted by the DOE under Section30 of ItA. No. 9136~ \vith equitable representation fronlElectric Power Industry Participants, initially under theadministrative supervision of the TRANSCO, which shallundertake the preparatory work and initial operation of theWESM until the creation of an Independent Market Operatorwhich shall assume the functions, assets and liabilities of theAGMO.

6

o. "Natiomil Electrification Administration" or "NEA" refers totIle goverrunent agency created under Presidential :~)ecree' No.269, as arnended, \vith additional rnandate set :({H'th inthe Act;

p. "National Power Corporation" or "NPC" refd's to thegovernnlcnt corporation created under Republic Act. No, 6395,as arnended; ;; ..

q. "National Translnission Corporation" or "TRANSCC),~ refers tothe corporati()n organized pursuant to R.A. No. 9136 to acquireall the transrnission assets of the NPC;

"~'''''I 'I' , r.' 1.., " 1.. (." ., 1,' ..•... ".' IT.'.'. I" t .• , ("t" '11 Jon1nt"" oj l,,( tt'lca o'-;e A'art . ,co\.te'~g.•.,....1';" n~;}'-!I.i:"':..{..'.'~:l::f'Ar'\.f... :: : ,:..:.:.:r:.,I;(.~y,~;;,.;: ..,,;,t ..,Yv.',( ..,.,': .;..,'''-J.~1'-''5.:''.'~,., .• ",;,.,.:".: ~ v _l.~ htoQ <:~.~•.u~ 'V. i;.,H.'lJ '-'~J

rules for safeguarding persons from the hazards arisingfi~oIn theinstallation, operation and maintenance of electric' supply andcornrnunication facilities.

s. "Philippine Stock Exchange" or "PSE" refers to the corporatebody duly organized and existing under Philippine lavv, 1icclisedto operate as a securities exchange by the SEC;'

t. "Power L)evelopn1ent Prograrll" or ."PDP" refers to theindicative plan for managing electricity demand throughcncrgy~cnicient progranls and for the upgrading, expansion,reh?J?jJjt~ltiQn, repair ...andrnaintenance. of' pow ergenerati on andtranslnission JllciIities, fornlulated and updated yearly by the.[)OE in coordination with the generation, t.ransn1ission anddistribution utility con1panies;

( .

u. "Povver Sector Assets and Liabilities Managen1ent Corporation~"or "PSA.LJ\!f Corp." or "PSAI-IMH refers to the corporationcreated pursuant to Section 49 orR.A. No. 9136; .

v. "Related Group" refers to a person and any business entitycontrolled by that person, along with the Affiliates of suchbusiness entity, and the directors and officers o( the businessen tity 0r . its A ffj Iiates, and re lativ es by con sanguini ty oraffinity, Jegitirnate or. cornman law, \vithin the fourth civildegree, of the person or any of the foregoing directors orofficers.

7

I

users~

w" '''Suppl.ier'~ refers to any person or entity authorized by theERe to sell, broker, nlarket or aggregate electdcity to the end-

x. "Supply" refers to the sale of electricity to an end-user by anIndustI)" Participant duly licensed by the EH.C. '

/;6~>rM-:'t

( y;\ "8elf-Generatio nFirci Iit)t" refets-to apowet'CenetiltionFadm),\......"';'owned and constructed by an end-user for such end-user's own

cOf1surnption or intenutl use excluding generating sets for useby hQuseholds, clinjcs~ hospitals and other InedicaI facilities.

z. "Small Power tJtiIities (lroup" or "SPUG" refers to thefunctional unit of NPC created to pursue missionaryelectrification function;

aa. "V~!holesale Electricity Spot Market" or "WESM" refers to the\vhoIesale electricity spot rnarket created in accordance with1{ A' ], ~ .9 I 36'.......• \Jo, ..~ '~',

Ql.JALIFICArrIONS OF GENERATION COMPANIESAND GENERAl'ION FACILITIES

Section 1. (}vlrwfship Lirnitations

a. Transnlission Cross ...Ownership Prohibition

p.~- Generation Company or its subsidiary or Affiliate or otherentity engaged in generating and supplying electricity specified byERe or stocld1older or official or their relatives 'within the fourth civildegree of consanguinity or affinity, Iegitil11ate or COlnmon law, shaIInot hold any interest, directly. or indirectly, in TRANSCO or itsConcessionaire. Likewise, the TRANSCO or its concessionaire or anyof its stockholders or officials or any of their relatives within thefourth civil degree of consanguinity or affinity, legitinlate or COl1unon

8

law, shall not hold any interest, whether directly or indirectly, in anyGeneration Company or Distribution Utility or Supplier. Except lor exofficio govern1Tlent:~.appointed representatives, no Person who is anofficer or director of the TItA.NSCO or Concessionaire shall be anofflcer or director of any Generation Company, Distribution Utility orSupplier. This provision shall not be applicable to PSALM during theperiz)d that its generation assets are being privatized pursuant toSection 47 of H..A. No. 9136.

b. Generation IVlarket .Rcstri ctions

1. General Principle

No C;cnerating Conlpnny~ Facility or any other personlllay engage in any anti-cOfllpetitive behavior including, but notlimited to, cross-subsidization, price or market manipulation,J11lse or deceptive marketing, or other unfair trade practicesdetrinlent.al to the encouragclnent and protection O.r Contestablervfarkets or the WESM.

2. Limits on Concentration 111 Ownership of GeneratingCapacity

No company, Related Group or rpp Administrator, singlyor in QQmbination, can ,own, operate or control more than'thirty percent (30 %) of the' installed generating capacity of aGrid and/or twenty-five percent (25%) of the national installedgenerating capacit.y; provided that such restrictions shall notapply to PS.ALIV1 or NPC during the tiIne that its assets arebeing privatized pursuant to Section 47 ofR.A. No. 9136. Thislimitation shall not apply to a Generation Company/Facilitylocated in the 'NPC-SPUC, areas or in isolated grids that' are notconnected to the high voltage translnission systen1. ERe shalldeten11ine the installed generating cap,lcity in a Grid and thenational instal1ed generating capacity.

The capacity of such facility shall be credited to theentity controlling the tenns and conditions of the prices orquantities of the output of such capacity sold in.the nlarket incases where different entities...o\vn the saIne Generation Faci1.ity.

9

1t-- ..-.,.••- ...•..._... . -.~.•..." "_•..._"'"..•.•.-- _- ..-.. "- ".." - -.-- ..- ..---.--"--'--.------- ..-.-, --.-~.-.-.-- --.-.--- ..-..-.~.-~. ."_._._~ __ .L.

In cases where different entities own~. operate or controlthe same Generation Facility, the capacity of such facility shallbe credited to the entity controlling the capacity of theGeneration Facility. 1'hi8 qualification shall be used forpurposes of calcul~ting whether a particular generation entity isdeerned t~lcomply with the market share linlitations as providedabove.

3. Lirrlits on Bilateral Contracts

A Generation Con1pany shall not sell to an a:mliateDistribution Utility through bilateral povver supply contractsmore than fifty percent (50%) of that I)istributlon Utility's totaldemand. This lilnitation shall apply regaTdless of \vhether

.demand is expressed in tenns of capacity or energy. This'limitation shall not prejudice contracts entered into prior to theeffectivity ofR.A. No. 9136.

4. Penalties Against Anti-COll1petitive or UndulyDiscrhr!inatory Actor 13eh,~vjor

ERe shall, Inotu jJroprio, rnonitor and penalize anymarket power abuse or anti ...competitive or undulydiscriminatory act or behavior) or any unfair trade practice thatdistorts COIn petition or harms COnSUI11CrS, by any industryparticipant. Upon a finding of a priJna facie case that anindustry participant has engaged in such act or behavior, EReshall, after due notice and public hearing, stop and redress thesame. Such rernedies shall, \vithout limitation, include theseparation of the business activities of an industry participantinto' different juridica.l entities, iInposition of bid or pricecontrols, issuance of injunctions in accordance with the ,Rulesof Court,divestnlent or disgorgernent of excess profits~ andinlposition of fines and penalties under Article III Section 7 ofthe "Guidelines to Govern the Irnposition of Adn1inistrativeSanctions in the Form of Fines and Penalties Pursuant toSection 46 ofR.A. No. 9136".,

10

c. Public l.,Jist:ingRequirernents

Cicnenition COlnpanies, \vhich are not: publicly listed shall offerand sell to the public a portion not less than fIfteen percent (15<XI) oftheir COnl1TIOn shares of stocks, provided~ ho\vever, that GenerationConlpa.nies, or their respective holding cornpanies that. are alreadyListed in the PSE are deelned in c0Y11pliance. For, existing conlpanies,such public offering shall be inlplernented not later than five (5) yearsfronl the effectivity of R.A. l\Jo. 9136. .New cornpanies shallimplement their respective public offerings not later than five (5)years iI'olD the issu<:Ulce of their (:ertificate of Coolpliance.

l\H.I'ICLE III

REQlflREMENTS l\ND.PROCEDURES

Section .1. /\11 (ieneration Conlpan.ies{F~cilities shall apply for the issuanceof a (~ertincate of Cornpliance with ER.C. Provided all the requirenlentsshall have been cornplied with, ER(~ shall notify the (]eneration Cornpaniesof its action within sixty (60) working days fi'orn the date of application.:LnJ.css ERe shall have required the submission of additional inforrnation, orordered the postponClncnt of final action on an application on reasonable.gf'outids.'-

Section 2. The fol1ovV'.ing docurnents/inforrnation are required to besubnlitted by all (Jcncration Cornpanies/Facilities:

a) ()perational as of June 26, 2001

(aa) Cornpany Profile;(bb) Certificate of DOE/l'IPC Accreditation, when

;Jpplicable;(cc) Three (3) year Operational I-listory;(del) Sworn Stateo1ent that each of the Facility cOlnplics

\vith and will continu{~ to comply with theP1Jiiippine Grid and Distribution Code (PODe)for the duration of the C()C~;and

It

•• ~ _._-~ •• ~.~-" ••••• ~-.'~~" ',' "'--.- •• ~ ,., •••• _- ••• ¥ •• ,.,.-., ••••• -~ •• " •• -', "'"- • '"' '- ••••• ~- ••••••• , ••••••• ' •• -~ •••• _ •• ,,'-"-. -,',' •• ~~' •• _-- •• _ •• "._~.- •• _ ••••• ,_' •• .- " •• _ •••••• __ , •• ~--o••._•.,.~.'. __ ._ •••.,_ -,._._-..- .'- ••...••.•_ ••.. < ••• _,'._ .~ •••• __ .,~ •••• "_ ••• _. __ • __ .-., .,_ •••••• _ ••••••• _"" •• " •••• ._

,I' •. ,

(ee) Sworn statement that the cOIllpany and its.' generating facilities conlply \vit:h and will continueto cori1pJy 'with the Wholesale Electricity SpotMarket (WESl\Jf) Rules for the duration of thecac, \Vherl applicable.

b. Operation~l after June 26, 2001 and Renewal of cae(1) denei.afReqllir~~n~~~t~

, (aa) Company Profile

(2) Technical Qualification(aa) , Sworn Staten1cnt that each of the Facility cOlnplies

.; with and, \<\'i11 continue. to' c0!11ply with the, Philippine Grid and Distribution Code' '. (PGI)C) for the duration of the C()C;f

(bb) , Sworn 'Statement that the co trlP any , and itsgenerating facilities con1ply vlith and vvill continueto cOluply \¥ith the Wholesale Electricity Spot.Mar.ket (WESIvf) Rules .for the durati()D of the,'COC;"wEen' apprIcahle; -, '",

(cc) Management Contracts in force, when applicable;(dd) General Plant Description;(ee) Location Map;(ff) 'Connection Agreernent between the (}rid Owner

(TRANSCO) and the Existing Generation ,Facilityor Interconnection plans/details \-vith the highvoltage backbone transIDission systen1/grid or

, Distribution Systern (for Ernbedded Generators)and or TranSI11ission/Distribution' Use of"Systern,Agreell1ent, if available; and

'(gg) PGDC IZequirernents1. Electrical/Mechanical Plans and DjagrarTIs;2. Plant Specifications including' plant

efficiency and heat rate;3. '"fechoical Description of the Load to be

served (for those in isolated areas and thoseserving dedicated loads);

'// 4. Safety H.ules/Guidelines; ,/r"' 5. WESM rnembership, if applicable; and,

6. Details of its Conullunication and SeAJ))\rZcquirenlents, if applicable.

(3) r;'inancial Capabil ity(an) /\ udi ted Jlnanc ial statclnents for the 2 rnost recent

12-n10ntb periods, if available;(bb) Schedule of liabilities, to include the fbltowing

\ .inforrnation: name of creditor, type of credit, credittenT1S;

(cc) 5~year financial plan; and(del) Docurnentation on financial track record of the

Generation Con1pany and of its principal,sto(~kh()ldef',.ifava>j lable.

(4 ) Own ersh ipiCa ntro I(aa) Articles of Incorporation/Partnership (for

Corporation / Partnership) with Certificate ofRegistration;

(bh) Business(cc) NarneRegistration Certificate (for Single

Proprietorshi p);(del) lJpdated listing of shareholders and corresponding

equity Sh8l'CS;

(ce) COlTlplete list of its Board of Directors and Senior(}ff1cialsdo\vntothe.level of Plant Managers;

(ff) 'Types. of long terrn debt and equity instrunlent,including Hlnount and proportion to totalcapitalization;

(gg) Svvorn Statenlent that t.he company complies withandwiil continue to corn ply with the provisions oncross ovvnership and rnarket share restrictionsunder Republ ic Act 1'10. 9136, its IrnplernentingRulcsandR.egulations, and the Guidelines forIssuance of Certificates of COl11pliance forGeneration Companies/Facilities for the durationof the CO(~;

(hh) Con1prehensive and complete listing of.:Aff1liatesand J{elated Groups, including ownership atldrnanagenlent structure; and

13

(Ii) PSE Certificate to the effect that they are listedwith PSI~, when applicable.

(5) Other l~equiretnents(aa)(bb)(tc) ,

(dd)

(ee)

(ft) ,

Power Purchase Agreernents;Power Supply Contracts;Memoranduln of Agreernent on the Establishmentof Trust !L\c~ounts by the <3Cl)eration, C9t11pany,aiid76r'The'''En ergy'J{es'{)urceJ5eveI6per'anc! the"Department of Energy on Benefits to: FlostComnlunities- as required under [{uIe 29 of theIRR;Environmental Compliance Certificate (Eee) dulyapproved by the rJepartnlent of Environn1ent andNatural Resources; andDepart.ment of Energy (DOE) EndorseInentindicating that the power plant project is consistentwith the Power Development Program of theGovernment4; and

Such other inforniation or doCument that ERe rnavrequires. ' "'

Provided, That Generation Companies/Facilities operational as ofJune 26, 200 1 which do not meet the financial ~u1d technical standardsrequired of Generation Companies/Facilities by the Philippine Grid andDistribution Code shall be given up to one (l) year within which to complywith the said standards.

Provided Further, That a Generation Facility which has beenpreviously issued a, cae shall not be required to secure a C()C even ifacquired by a new owner. Such transfer of ownership shall hovvever bereported to ERe within three (3) days.

Provided Further/note, rrhat if the new owner does not meet thefinancial and technical standards required of a Generation Company, thenew o\vner shall be given a period of one (1) year or the rernaining life of

4 As amended on March 7,2003S RenulJlbered from (ee) to (ft) on March 7, 2003

J4

the COC, whichever is shorter, within which to comply with therequ ire~Tlents of the C()C.

Provided Fina!~v, that any buyer or transferee of generationcompanies or facilities should comply with the provisions on cross-o\vnership and rnarket share restrictions.

Section 3. Requirements for Spin-01T Facilities ofNPC or their Transferees

A Person acquiring a Generation Company/Facility transferred toPSALM by NPC shall not be required to secure a COC to operate suchQSflSOL'!tiQIL emnPiJJly/Eac iiity. .Prior. totran sfel'of such (leneratl 011Company/Facility, such Person shall however report the same to ERC asspeci.t1ed above,

AJt'I'ICI.JE IV

OBLIGATIONS OF' AGENERATION COMPANY/FACILITY

Section 1. Compliance with Technical St;;mdards.

A Generating Company shall ensure that all its facilities connected tothe Grid meet the technical design and operational criteria of the Grid Codeand Distribution Code promulgated by the ERC, Philippine Electrical Code,and the TRANSCO or its concessionaire, including, among others, standardsfor voltage t1uciuation, fj'equency, harmonics, security, reliability, unplannedoutages and provision of ancillary services and shaJI operate in acc()rdancewith such operational criteria.

Section 2. Con1p1iance \vith Financial Standards.

A Generation Company with facilitiesconneeted to the Grid shallconform to the financial standards provided in the Grid Code, the actualparameters of which shall be determined by ERC based on the nature of theGenerating Facility.

15

• 0"', __ • '~' __ •••• ,_,. •••• _." ••••••• _ •.••••••••• _, •• -. •••••••• ~"",.,

I'

Section 3. Compliance with Environmental Standards

A Generation Company shall ensure that its Generation Facilitiescomply with applicable environmental laws, rules and regulatiollS.

"""1 • y..... ".," C' ,'. Y ,1, ', .. 1 , 't. "'f',~;"',f.t~,,,1-,i{)"',J,":,-,j.,"",r"~,,,,"'l,"", ,'" J"I,1,'"f, .1,',,',',",',:,,<::',,', )l~el'j;;1'1ncr,' ",'1't"i,,; Pd"" I n 'r.p 0' l~\ '1"'/''10''""""t "'! 1,,~ .. u. "", \,' ", '~, ~ ',::,1;~'~ '!"':':'''', ",' , ..' ,,,', .1 ~,'~' -",C",4" b' ,U 1 ,1u~.J 1 ClL..." ,\" , v(.l.0

: J

Section 4.

A Generation. Company operating a Generation Facility in isolatedareas shall meet the technical and financial standards to be issued by .ERe .using applicable and practicable criteria within two (2) years, or :suCh otherperiod as may be specified by ERe, hom the issuance such technical andfinancial stal1dards, ' The generation rates to 'chargt;d by a' GeneratiOl]COmpany operating a 'litY'in SPUG areas and isolated areas spall be fixa.nddetermincd by the ERe. ';;.,

Functional Un bundling of a Generation Company ~Section 5. Structural

I

A Generation ;Company shall structurally and functionally unbundleits generation business activities and rates from its supply and/or relatedbusinesses,'

Section 6, Selt~Gen~rator's Contribution to the Universal Charge:,:' ,I.', i

Subject the; provisions Section 7, Rule 18 of ImplernentingRules fllJd RegulatioilS R.A. 913 6, a Self-Generation lity shan remi(directly to TRANSCO corres:ponding Universal Charge set 'by ERe. hirelation to this, TRANSCO shall be provided access to the customer side ofthe meter in order td 'determine the;utilization of such Generation FaciHty fatIf' '0 Ij' 1 Ch 6t le purpose 0; assess1l1g COueSPODomg , nlversa arge.

i

The term "register" provided in the aforementioned rule shall beequivalent tathe issuances of a cac to the concerned facility. 7. • , .' • '. I' , ,. •. , , !; " ,! ..".,.

! '

6 As'amended on MaTch 7, 20037 As amended on March 7, 2003

I ,

Section 7. Ben ts to f-l()st C~On1rrHInities

'j"/;')':'/"'- " 'Ie ("-"",. ".,."..•.(,., (-""- ,... -d -.,.,. ..:(," "'.OJ J1_:,d .10n,) (II ..lene! d. JOn \, .()IJlpan dfl Cl!,cl gy I C,)OlH CC

deveJopcr:s 10 conH1Hlllitic:~; hosting the energy Generation liUes anel/orenergy resource developers as defined under Chapter II, SecticHl 289 to 294of the lA)ci:11 Clovcrnnlcnt Code and Section 5 (i) oC IZcpub!ic Act NO.763Kand thei r implerncnting n.des and regulations shall continue, provided, thatthe obligations rnandated under Chapter II, Section.291 of Republic Act No.7160, shall apply to privately-owned corporationsbr entities utilizing thenational \vcalth of the !oc(J!iLy.

l.Jpon the establishment of the WESM by the DOEj

jointly \vithIndustry Participants, a CJencration Corrrpany shall cornply with therncI11bership criteria c1s pn:~scrjbed under the \VESMRules.

f\ C3cnerat.ion COIT11Jany vlith (jenerrrtionFacilities. connected to a. gridshaIl 111ake inJ()nnrltion available to the IV-rarket (Jr'Jenltor iJ) enable thervrarket ()r)crator to inlpIernc;nt the appropriate dispatch sched111 ing and ,shallcornply vvith the said schedul.ing in accordance with theWESIV[ Rules,

i\ (3cncrution Cornp<)ny shall 1ike\visc~ nlake in!.{)nnation availai)le 10fheGrid (JiJcraLor to E1Cil itate Ccnt.raTDIspatch by the grid operator. .Sui)j ectto techni constraints, the grid OperalJJf' of TRAJ'\!SC() or itsconceSSlO ire shall provi Central Dispatch to a (Jencr;Jtion Faci.JitycOf1ncctcdj directly or indirectly, to the tnulsrnlssion system in accorc\;:)Jlce\vith the clispatch schedule subrnitted by ille NIrLrket Opc:ra.tor, vvhichschedule shD.ll take into account outstanding l)iJateral corl,tracts.

Section 9 .. DO£ Reportorial Requirernents

f\ CJcr:tcration Co-rnpany shall subrnit theD()[i: any inf()nnation as111ay be required by the [)()E for the preparation of the Power I)evelopn1entPrograrn, slJbject to appropriate nleasures to preserve the confidentiality ofproprietary or COlTIlllercially sensi tive infor111ation.

17

______ .".~ ..__ t.. '. __ . ._~_~_'. - __ .'~'.- .. - .._-~. '--- ..- ---"."'-"'_ .. - -- "-' .. _.~--_ ~ .~. ._._-, .. -.- -, .. ------._~ .__ .~_ ~M.._ _ --.M--_ ..__ ._. ._ •. ~__ M._. __ ..__ ~_. __ .__ .__ .. _M__ . .__ .' .•..•..M.__ .__ . ,.__ . _, .. _~, ..

Section 10. ERe ReDortoriaI IZC(lUiren1ents~ 1l .

a. .VVithin 30 days after the end. of each n perioel, theGeneration Cornpa.ny shall subnljt to ER.C a managenlentreport or discussion on operations and financial results \vhichshall inclupe the foUovling:

fi\VI

(it)

(iii)

(1\1)

Report en GCtP<l~jtX tJtiliz;ltion,.. el(;ctriciJ:>'."0 lsi)[iIcE/s~ll(i's ,/61 u Inc)" 111ai 1:1tenan ce sch ed u 1es, an d .unscheduled dovvntirDcs during the periodR~epoli on bilateral agreen1cnts entered into during theperic)(l, inchJding copies thereofH.erx)rt on' (CkY"lf'rgY1 I"('\/('o'nucc' (,1] 1l"'J'11g the: neI'loal

( ..IC"~lI.l it)CT,I J. ..•• -, . -,.Ii •..J.) .~,' .....J ~.1 ... ...., _ '..' ~,.,. , _ , ._~,.." ~...~. . J,. t::..,"J

volurnes, tb.e identity/ies of the' buycr/s and pricesbroken dovvn as [()l1crws: £lIel cost~ fix,c:d operating andDlairlte,nance expcnses\ variable operating andulaintenancc:; expenses, and capital recovery cha.rgeAny n1aterb.:d inforrnation affecting the opcrations

5

OvvT1c:rship, rnanagernent: and financi condition andre:S11]ts of the:; (JeneraL.ion Cornpany

b. Within 30 trorn the filing of its Incorne 'C~3.X Return vviththe Bureau Interna.1 ,ReVentle, the Generation Cornpany shallsubrrdt a conlplete of its audited financial statements (i.e.~balance sheet~ incorne stat(~lnent, statenlent cash ilOWi}~

notes), inelu(ling audit opinion and the staten'l of11lanagemenf~) i"esponsibility on the fjrJancial statements. Theincon'le staternent should irlclude a detai scheelule ofoperating expc':nses the period.

\V' 1. 3 ~ "" 1 • f " . L "c. ItrUD .. (lays Jromlapperung 0 an event \Vl11el1results Hl amaterial change concerning. or potend ally affecting theCOD'lpany's o'v/nersbip, rnanag'clllent, operations., financialcondition anc1 perforrnancc:, the Genc:ration Company shallsubnlit a written disclosure to ER.C of such f~lct or evc:nt andits in1pact on the cOl).1pany.

Section 11. A Generation Company that fails to conlply vvith any of theseobligations shall be subject to fines and penalties as rnay be in1posed byERe under Article III of the "Guidelines to Govern the lr1Jpos~tion of

.J8

l\cllT\inis I.VC San OIlS 111 theSet~tion LlISR,.}\. 913

of r;'ines and l)cnalties PUl'SU

A.IrTICLI!.~ V8

[0

11EHJVl TillE ;CER'I'lFI C,~ 1'1E'O F 'c()1\1P L lA, l'JC'E

'Upon conlpliance \vith the requirernents under Article III., theCorn 1nission shall issue a Ccrti ficate of COHlpliance to the (Jeneration,c:0.'.'..' '''''.'.'..'.11.1 ,a ,.n., '. 'II' J ,,1('; 11:tl' 1.'>-.'.',.' <: 1, I.., ')("'ct..f. r..) C.".'.). [1 ..1 1,',.-.)11' .c'.'l.v.--.l (.,." e.- \H l•...1,'l.r 1:..--"' ,l I.C..'.'l.1 1,2.., ,1'..1.1'.1 ..<::1 :l I.1 (,l (.'.'..(.--.'.'.'.1.'.1 ('.1.1. t.'l'.(j.t} c,; lit'-' ~All __ '_ -j U-',., \"'~)~ '~uu.~.; u__ ,~(,: J. <'".1. ,""','Y '_'~,.,L)-, ~,__:.~,.,,:'~,_, ••: :!.,:;':~ ..u,~~, .,,",.1,, __.,~ __/,,0.,' theERC ll1c1-Y requil~e. "-- ,,', ','.,' --

I'he CCTtit1cate of Cornplia.nc(~ issued byEIzC to a (fenerationCOlTlpany shall have a terril of Eve (5) years, The l~()C issued to a 'NewGenerating Facility, ()n the other hand, shall have a tcrrn equivEt1ent to therernflining liJ~.::~of the COC of the CieneraJ:ion Cornpany,

ThercaLlcr, a CJcncration (~orJ1pany shall apply with ERCf()f' arenc\va.l of srlid Certificate of C01l1pliance. f\pplication -j()r a renew(1! ofCertificate of COnlfJliance shall be accorn nied by all the required

' infc)JTnation clisclosurc flnci pro()fofconfbnnity the ohligations set forth inthis (iuidelinc.s.

'rhe C()(_~subscclucntIy lSSIJcd to a Gcncn:1Lion Cornpany shnlI includeall of its Generating J:;'iJcilities . operation at time of renewal, provideclthat the said F'<l.cilitics DTe in cornpliance\vith all the requirements herein setforth.

REV{)',CA'TI()C\T {)F C. ...,~'r;v:r'rF'I('1\ !]'E O..l~ ((:.0, l\1--P. IY /~~N, C Eir.:..,.1! %.• ,l 1 ,/ Ii\. J( .1[.__ 1,.. _J .d,' /

ERe rnay revoke, a-ner due notice and hearing, a CertifIcate ofComl')] iEl.nce if such (JcncrationC:on1pany fails to con1ply with any of tIle

------_ ..~_._-_._._-_._--------,-R Renurn bcn~d from ;\Tticle \/1 to Article V on tvlarch 7, 20039 RenUlnbered from Alticle V to Article VI on (vlarch 7, 2003

19

.. '-'-'~-7-"P---••.••.••-~.••_.•_.~_•.....• _...._.• _..•• ' '._.'_.__,..'" .••.'.,.. "_"_""_' ",. ._.•'_."'__. "._ ...__'~••..••_._. ..•,_.__,.__.,•..~._.~_._,_. .._._.__. .,_,_•..•..._•. .,.,._.."..•._ .__,..• ...,_.._,

requirements of this Guidelines or any of the conditions contained in theCerti ficate of Compliance.

Notice of said revocation shall be gi ven to all interested parties.

ARTICLE VII

PA Y'I\1EN'f 0 Ii' FEES

Application fees and cae fees in such amounts as may be detenninedand prescribed by E.Re shall be iInposed on all applicants upon the filing ofapplications and issuance of COCo

ARrrICLE VIII

IVIONITOltING

ERe shall monitor the compliance of C,eneration Cornpanies \vit:h theterms and conditions of their certificate of COIHpliance and the provisIon ofthis (]uidelines.

SEP A.l{ABILrry

If for any reason, any section of this Guidelines is declaredunconstitutional or invalid, the other parts or sections hereof which are notaffected thereby shall continue to be in full force and effect.

A.R'TICLEX

EFFECTIVITY

This Guidelines shall take effect on the fifteenth (15th) day follo\vingits publication in a nevvspaper of general circulation.

20

( I;;;; !t'. ,,.:r)' j-f lIT J3' B f\~{ ff ,f\ 1.1-._ 6'-~. "I ..J ,i~. JO. Jl "''', I ''4

ell'lBlflnan

(Sgd.) I\!l/\R /\NNE (~()l,J~,,'CiCO--C:OI'l'!J1I issio n e r

(~' J" ("'1 -\ T) 'L:'--", C' 'lj'') ~""., T'D" ,\. ;:)gCJ , .!-Ji'-'d'", '(Jl)~ 1"-. I,,, L !II", I •h.Co T11 fni,':';.'3i0 ncr

(Q Ij \ f)~' l' 't 1"'[--' ~-'\ ,,.., :Ii'}\ l:Jg{il.) "-,,'L>I 'tt 1.1.)~,'~B, ;0

Com r1'1r~;5 ioner

(~ fW ,d ')' ':f If 'ir' ~q'-' 'If ~ " lu (;,J, '!..J 1,'--' ~, j,,~ ,j l'\ Y,

C~omrnissioncr

\/1'\

*Ul1!J II' 'T11 'IIV '~ } 0: 0' '-) "~l'I' 't 1'}, p1\..;fn 111'l~:l1"'1tYj' p~I It -.J ,A'.j -,....-" -..d ./.-.4 'c...... . ~ .1": A",,,.~l ". )i.tA ,"""0

* FiTcctivitv . JLJ lv ')0 ~)O(l')J ..J \,. 'j""" ,~. ..f •• f' ~ ...t-" j .•,..•••

C3:jsj\Guidelines:COC Guidelines (.-4ml;~~/(led),doc

l

1.1.3 (Jenera1 Principles

I. J ,J..I These Guidelines viiH set the n:d.nirnurn -financial capability standan:lsiin' GENCOs as required by Chapter 4 of' the Philippine C}rid Code.IIowever, ERe IYUly require other/additional ~;tandards f{)rcornpliancein connection ltV ith otb,er applications :fiJed/to b(~fUed beJbre it by the(112N(:0,

Ln.finf;inGi~~l.rH:~rJ()nnancein the sector, ERC trlay revise/update, the Jlnancialcapability standards ,asdee.med necessary.

J.2DefinHion of Ter:rns

a, DelJt .. any indebt(~dness of the bOlTO\Ver rnatu.ring b:y its terrns lT10re than oney'ear after fhe date 011 which ifis originally incurred (including that portion ofany SlJd1 delrt payable within onf~ year frmTI the date of any deIJt-.,service ratioGalcu.lation)~ pnrvider.J that debt shaH be counted only to the extent that it liSdrawn down and outstanding

I). Debt Service.-- aggregate annua.1 arnount of debt f'2q.1a.yInents (including leaseU'~:b.'lj'I()"'t'l'()1"'<;1 t".1l'lr$i'''~' li(".'}:/A....'II.ty'J"vi.I"Ql r::"()'i'{:,'e::'",,,),::"l;';'W .,~11(1" '''''1:1' '"ll.tt""'l,rr "I,.t':!'" !l'\"lP.f,~.t"'fl '1>"1'~._l.L~.,t ..i. ,.~.1\.,1 4.J. lI....5.I\.-J.l ." .1'V~l ~~1 ,," .,)1."".••.J..a.tf.-.•.""jI\. ..•• L,rJ.t?.i \/.<o<.'! •••• l.l ~,.•...Ii.l..""l1 (,!.Ji ... ~. ;:;, .£.7>., a. t~) .."..Ll} J \,,',S,1 ..•. },. ,

I~I'~'\/')' I).,,\A l't)'j:;;:: •• ,(.::><;, .•. ,.<'1'1(,1 [)t'l,)t">~' ,.;I'!0Jt'r.),pl,,'on cj'(,!)t- ;1.",("l.,rtll'Jl,{J l'(l~)l~'j':ll';"N",f'1 ll"-!"',{~l'<"l;'''''I ... x v. lL1..Ll'l,.l, 1. ,i. ..•..,i ••..•~)t ~,...I..tt3. J..\. . ..J,'ll \ ••• 1.t..1.t..d. t~)~.....) - ,ilj. ...., t .':' .I), .t\.-.' All.lI.'(,..! .• t..? '1.•.•..(, ,~. 1,\l~ ,l K:•. r'\", i", ' .:i.l;~,JI.. C •..~ ¥.

during construction on, loans Jhr capital ex..penditures

C. Debt Service Capability Ratio (I)SCR) or Interest Cover Ratio "-'the rlJ.eaSUJC

nEthe GE):\lCO's ability to ti.d.fiJ its debt obligations; cornputed ifl 2 vvays: (1)ratio of Cash Ii'lov/Frorn Operations after 'Tax.es to Debt ice, and. (2) ratioof Earnings bethre Interest and 'Taxes (EBrr) plus deprec.iation to debtservlceFor ofcornputing th.is ratio~ ('ash .Jl'1ovv fioIn Operationsi\Jter 'I'axes ghaH be derived frorn .the audited financial staternc.nts and shaHexclude interest received, and interest paicL /\Jnoli:ization expenses shaH a.lsobe treated slroHady to depreciation.

d. Earnings Before Interestan,d Taxes .._-eqtJ.al to revenues less expenses fl:oIXl theGENC{Y's principal business activities~ is identical to incom,e fiorn operationsas deterrnined Lmder Philippine Ge.nerally l\ccepted Accounting T'Jirinciples

e. Generation COrnl)HJ1)'! or GEJ.,rCC) - refers to any 'person or entity authorized byERe to operatet1:'Jcililies used :in the gt:.neration of electricity;

f Generation :Facility"' ret~:~.rsto a :fkicility :for the production of electricity;

')

Repul)lic of' the :Phi1ippinesE:r~.J'En_('~y T()RY C()l\;IIVUSSI()r";lPacific_ C:enterBldg" San l\,1.igueJ l~,.venue~

Pasig ('ity

(;lJlrJl~~I",IN:J~S"'l(())I~~rIII{:]Tll'll~¥t~I\~(~11f\l.J~~rrAlJ'fJ))\J{I)S(;]I:NIC A]rl(lN (~I()IV.IJ~l\NIES

.I, 1,1 Philosophy I Rationale

1.1.2 Objectives

1.1.2.1 Financial capability standards an~ required by the Philippine GridC()df: to be CO.1Jlr:died with by Generation. Cornpanies (CfEl\[C:Os) inorder to:

a, ProrrlOte the overaU financial viability of the genera.tion sector;b, Ensure the a,FfordabiEtv of electricl)ower sunnly vl/hile Inaintainin!~

,,1 t t!l ..,,_••..

the required quality and relial)ility.; andc, Protect the public .interest

1.1.2,2 Tll.is set of Guid,e1ines .i.sprornulg.ated to:

a. Identij~1 theminirnUlIl financial capability standards f(}r (}-ENCOs;b. :Prescribe the frequency and f()nn of GENCO su.hrnjssio.ns~ a.nde, Prescribe the actions fbr non-.-cornpl.iance with t11em.inimuJDfinancial standards .for GENCOs

g. ---anp.ayrr.;lent ortinle';

\;vhereby the lessor C01JVeys to lessee in return for apaY'l1Jents the nght to use an asset lin' an agreed period o~f

g.l Capital or I~'inancial Lease --a lease that transfers substantially all theri::;ks ancl rev/ards incidental to OWHt;rship of an asset T'it1e rnay or rnal'not be tnulsJi:;Jred.

9ther than lease

It National ]?ov,;er Corporation or 'hNJyC'!~ refers to the gove,rn:rnent corporationcreated under RepubHcAct 'No, 6395" as amended;

1.3.1 These Guidelines shall apply to all generation crn:npanies, iilCluding but notlilnited_ to:

d.

a. Entitiesvvhich o"ilin and operate a generation fhcility;b. E~ntities \vhid.l OW'll a generation f2lcility that is

under any .rnanagernent contract;hold aC,a.pital,b.f)lcl ftn OperatiJlg

ano1J1cr entit.y

Lrequired.

2.1.1 is required to J.ncet nthroughout period

:~fcorn International

:3

":.,.;...:..'1

2,1.2(jrid Code to evaluate tIle

be o-ption.aJ on the part of the ERe',

of theshall

and

3.1.1 Cornparati\ie audited finm:lcial stateJJlcntsif

.JTlOstrec(~rtt 12 ..rnorrHl period,., /

3.1.2 of Ha.bHities! to include the f;)Ho\ving i!lf()rnJation: narne of creditor,(y'pe of credit terlns;

.3.J J :Five (5) financial plan (i,e" fhrecast Jinan.ciaJ staterrl.ents, indudingassu.rnptions/bases used for revenue and cost projections); and

3.l/l. I)ocurn.entation on financial track records1'ock.hold.t:t\ if avaLI,able.

the H.lJ.d of Its l)nrlClpal

3 VVithin I. fh)ln the cuel its fiscal ; the shall suh:mit acornplete set of' its audited fhlanciaJ stateJJlents bah.nee sheet, incolnestate:rnent state.lIlent of cash flo'ws~ statelflent of changes in (}vvners3 equity,notes)~ including the audit opin.ion and stateJJlent of rnanagenH~ne sresponsibility on the iin.ancial sta.telDents. The incorne staterne.nt sh.ouldilldude a detailed. si.:heduleor)(~rating; expenses fc)r the period, T11e5ubxnitted financial state.lnents should clearly slJ.ovl the financial position,results of operations, and cash flows pertaining to the g(,:ueration business.

3.2.2 'fogetherwith its audite,d financial staternents) a Sh:::1U also subn1itfe/recast 1:1nandal stal:(~Ine.nts £()l' t.h.e subsequent t'NO (2) Hscai ye?,ifS, TheSUbT'Dission shaH clearly identify the 1Jwjor i(}recast assulT!.ptions used by theC}'EN'CO including, but not Hnlited to, tb.e assurnrrtions and bases f{)l' its,volulne, price, fuel, and other operating cost

3.2.3 \Vjthirl three (3) dnys :Jio.m the happening of an event wh.kh .results in anlaterial change concerning or potentiaHy affecting the cornpa11Y' so\vnership, Inanagcnlent, O'perations, flnallciaJ COfl,ditioll and perfC)flnal.lce, the

shaH subnlit a \vritten d.iscJosttre t.o of such Jhct or event

4

. "J' '.t' ,., ' ., ", , ... ,t- : ..) +1. '":. ,..•. , '.- ," .,' "'," If'" t~ 'C•• :.. ,"',. "I"" .., ,j.t.n '.~ ' . .{''1'C.''''T r' r .. ,.,..t .. " .••.' . Hanc 1 ..> unrJdC OJ •. ulc dJtllpahY. _. ,11t, \;,1/(:,$.1. h"stu. .;:}HI a ur.:..1.'J\./\.) nu .meetlH6

,., . t,"' .... '.' '. 1{. . -J. ""'.-:...:.••.:i . 0' '..1,p. i':~. (' .. ".; r ! "".'....,"".~..' t . " ""I .,... \, .{i.. '.~ 1":-' J~ (" tl ."101 POt\"lllhLLY IH.Jt ttll;,t;;Jl,Hb I,d,,,. HldJ1U,d.i ph::',..d"Jllk:". J} \..tlt: 1..: :\.... :, 11t,Ct1C~},.Tcn . ,., ";" , .....'.1 .t ,.) ,', .t-. 't I ..I) •.• , n',' ~ .4...• ""', .... _, ..,j ,\ .. ,.: i.I. .'. .....,.4.. .('<0') ..1':..•.1,' [' f,JL,..L"'C:_~ b .itA.jJUd.,t. ~}UJrnl .d.IiU;;:;.ldnl iJ..J ~.A)l.ul ..;jy .v.lIUn':'3,lA1Y tJ, td)S ...L

the happening of said event.

" 1. g1q gir~~dt{)h) COJuply vvithin si.xt,Y' (60) days of receipt of an ERe directive. The.Progn:un to Comply shaH identify the specific acti vities to be uJJ.dertake.n 1))1t11e (TENCO in ()rder to Dleet the benchluark.

Infbnnation on dIe :Progranl to COJnp 1y include the f()11o\ving:

.2.1 Concrete acti\/itif,:.shneasures to tx::undertaken to upgra(ie pcrn,)nna.nceand tlleir estiroatedfinancia.l effects:;

3,3.2,3 Cl.ear aw:.ide:linite tirnetable ffJf the Eind the tan;~ets.'-,.J

3.3.3 The EIlC shaH infonnth.e f3:E::J\TC() aetion on. the (}E:t.<rCo's Prograrn. toC(}lnply-' within sixty (60) days receipt thereof

3.3,4/, 'l"'.lj.,(, t'~'F,--;'l\TCO ,~i'li..l'll):;(fi\i\:.4j"l (",'lflt')' ('I) \'''~'''l;' ("/' .j.h,;;, j ••<>l.•(I').; •....•';l ..'(JI;l.:~~ ...,.t~II),:J> ["1.()'{ ...• II''''

... 1._. \.., ..,1.'1 -'.H.I .. H..t, i~':Y.i.,., .•.... .,I:; .. , ....• .'!i;..,(...I•. ~ h U..I.l •• J.\,; ...•...4..I.H.UJ.t:<1.l{., \', 1. '"' •...•., u.l

thel:ase of a ne\v owner of a (rENCO previou.siy issued a COC:, vv'hic,hever isshorter, vl/ithin which to cornply vvith the ERC"prc~scribed bench.nlar1c

3,4.1 i\t any tilne alter its subrnission of £fProgralJl to COlnply, the GENC() shaHinfonn the ERe in writing of anYj~~vent or cOJJdiHon whid.l shaH prevent itH'orn nleeting the ERC ...prescribed financial standard, 'The n,crtice shaH begiven to the ERe v/ithin seven (7) days 0:1:' th.ehappening of such event or .cond.itiol1, The ERe rnay require the G.ENCO to subrnit a revised Prograrn to('onlply to consider the ne"v infbrnJatiol1 IJfought to its attention l)y theGENCO.

1.:+.2 Unless the GENCO :ihrrnal1y advises the ERe: a.ny condition affecting therneeting of targets in .its Progra111. to CODJ.pJYl the .EF:.Cshall expect theG.Ei\rCO to COJJ1P.ly \:v ith. the t1nanc.iai stand.arcl within. the prescr.ibed perlc;d.

}7 •.. 'J .. :::>. '~" -,i .". "J. t'.I:;'J~I('" 1.t .. ,.~ .,,,, • ",:> .. c•..•.. , t."" •.• ,"' .., .•.• 1 ,).n ' .. 't.t. ""(,'':> .[':' •. ].:>.1 .... "r' ' .. _' .. d.lUf1i:"to SUtltnh 01 ..•1\.. , tilt: leCjl.U1tdrnclhS <.1....plc'J\.,H.kO HI Jlc;:)e u'UlcC.Jne.) nm;

1.1""' (}"OI'll(l"" 'Pin' th'~ '"I" l'~lq'\f il.ynv"";)f',-1 b":::~'!=11<."!.j<,,, .:.1.;,:' C' •. , •..• ,...e F."? ....,'l:I:~j .l;1::"'l:,r: ~".,!~~~::~ .~!:j

under .Article III of the '"(]uidelilles to Govern the Irnposition of /\.tll11.illistrativeSanctions in the l-';'onn of ~Fines a:fJ.cl Penalties Pursuant to Section 46 of ItA .. ]\i-o.9136."

.4.2.1. .1',Joll,~corrlpHaXlee \,vith Hie J1.nancial standards by a GE]\ICO m.ay result .in adisclosure by H}eEH{~.: 'of such nlct~ together with any 111itigating oraggravating cirCtl111stances related. thereto~, via perio(lic public bulletins. Thepublic bu.lletin nl~!yalso include the GEl\fCOls prograrn to comply and otherdis-closures nlade by the (]EI"'1CO to the ERe regard.Lng its financiai conditionand pert1)flnance.

4.2.2 Tn the detenninixtion ofvvhether or not a pu.bHc bulletin is necessary to bernad.e, the GEI'J{X)'s operating perfonnance :and other Jfictors th.at rnaynlitigate its poor debt service ability as .lJleasured by the IJSC:R shaH he takeninto consideration.

.An.TICl.,E 'lfl

5.1 Infonna.tion fHed \vith the EH.C in eOlupliance \vith the requirelYlCnts of tht~seGuidelines~ except as set fhlth below, shaH be n1ade available to n.ny rD.e1nber of thegeneral pul:d.ic,upon request) in the prernises and durhlg regular offi.ce hours of theERe. ~

5.2 Int~)rn1ation. that is not historical in nature (e,g'l forecastL1na.ncial stateJ:Jl.cnts and 5-)'ear i:1nancial plans), in:for.m.ation not othenvise required. to be disclosed in the(].E]\TCO's financial staternents by PhiLippine Generally .Accepted l\.ccountingPrinciples, or inf()fJ:l:lation labelled as "CO:NIi'IDEJ:rrri-\.Ll! as set f{)lih in Article5.3j shall not bed.isclosed or used ibr persona.! benefIt by' any JIle.rnbe.r, officer, oremployee of the ERC~ under pain of adrnini strati ve sanctions.

5.3 A GENCO submitting infofJl1 a ti on in cOlnpliance \viHl ArticJ(~ 3.2.3 (disclosure ofrnm:erial events), A.Hide 3.3 (Progra1n to Cornpl.y) or A.rticle 3.4 (Notice of EventsAJIecting Prograrn to COH:rply) llU1Y subn1.it \vritten objection to the publicdisclosure of infonTlation contained. the.rein and pro1Jlinently label such docurne.otas '"CON:FJIJENTIAI/'; otherwise such in1:orn1£1.tion is cleelned to be available fiJl'public disclosure. The E1<.C shaH:maintain the cortfidentiali.ty of the inihrrnationcontail1ed in such docuJ.nent, pending a c1.etennination by the ER..C to the vrd.idity ofthe request for confidential treatrnent If it is detE.~nrlined that confidential treatJnenth;Jlot ,Vv'[lfi'[lrne9~yitll F~~sP~~J~q"all qrp~wtof'g).einf(u ..nHrtion or thatdisclosure such irifonnatio'IJ i's requ.ixed in tllt~ public interest~ the personrequesting cOIuleiential trea1J11ent o:f the inforn1ation shaH be notified of thisdecision by written notification sent by registered 111aiL Such notice will alsoadvise such person'that he has the right~ vvhich shall be exercised no later than\vithin 10 ca..I.e-ndar days of the receipt of SUd1 notification~, to request and justify invv'rit.ing that the EH.C reconsi.der such dete:nnination.

'TheERC 1!lHy reeon~~ider such deter.rninatio:n only once.

If the ERe rnakes a detennination that any or aU of the infbnnation in thedOCtnrlcnt is not entitled to confidential treatrnent, the person who subrnitted therequest gJ1.aH pro Inp tly ulHke an an1ended. fllin,g" rernoving the label"CONFI[)E]'.rTIAL'~ in the revised suhlnission.

A.IlTIC'LE VI

6.1 The NPC shaH bt.: require,d to .meet a IJ11nin:UJll1 aJlnual I)SCR cd~1.0x or themininlu.m DSCR required by its u1ajor lenders until such tilne as it has cornpletedthe privatization of its generation assets. Non~.compHance with this be.n.chnlarkrequires N'PC to COJJlplyvvith the provisions of Articles 3.3 and 3.4 of theseGuidelines,

6.2 T'ransferees/ne'vl owners of l'rpC gen.eration assets shaH be required to lneet HDSCR of .1,5x~ as set forth in A.xtide II of these Guidel.i.nes.

6, j 'T'ransfere'es/ne w owners of l'TPC generation assets in :rnissionary electrificationareas ajJd other entities authorized to operate generation illcilities in .rnissio.naryelectriJlcatioll areas shaH be exe.rnpt f1.-CHTl Co.tYlpUanCe v.lith the financial standardsprescribed herein .insonlf as generation activity in the rniss.ionary electrification areais concerned. The exernption is et~joyed only for the duration of the period in\vhich they are provided a subsidy for undertaking the 1111ssionary electrificationJ:tH1d:ion, Beyond this period, the financial standard prescribed in .AJticJe II applies.

'7

Republic of the PhiliP!JinesENERGY REGUL/~T()R'Y COf\lHVUSS~ON

San Miguel Avenue, !:;asi[1 City

RESOLUTION NO.

IMPLEMENTING SECTION 43(t)OF REPUBLIC ACT NO. 9136 ANDRULE 3, SECTION 4(m) OF THE IMPLEMENTING RULES AND

REGULATIONS (lRR) OF THE SAiD ACT

,VJMEREAS,pursuanttoSection2(d) otF\epublic l\ct No. 9136 (the ElectricPower Industry Reform Act of 2001 or E~JIR!\), it !~ tne policy of the state to enhancetile' inflow of private. capital and txoadell rne ownership base of the power'generation, transmission and distributiol'l sector"~::

WHEREAS, Section 43(t) of the said Act !")t"Qvides that:

"S~ction 43: Functions or tlie ERe .-..xxx )(Xy xx;::

(t) Perfonn such other repulatot) Ii /rtctions as are appropriate andnecessary in order to ensure tilt;;! su(;ce,';,~)i; restructuring ijncl rnoc/ernizalionat" the electric povver industry, such as.tJut /lot /i(llitec! {u, tile rules anelguidelines under which generi~tjon cO/npci/Jies

1dislri6ution utilities which

are not pubiic/y listed shall ol/er ilndsell lo the public a portion of notless than fifteerJ percent (J'5%) cd :ii/Edr (;0 nun on shares of"stQcJes:;Provided, lwwever, That genelaUon CU!! ij)dnios, c/isuiLJution utilities (ll" theirrespective holding cornpanies that are ail ~)acf.\/ lis/bel in the FJ/lilippinu StockfxcJ JdflUe (F.)SE)are c!eeflU:-;c/ ill C;UIJll.liki'! I":,.'. hJI U Ki::;;tiIJU (.()Jl JJ..>Cililu.~)', SUGh

public offering shall be irnpfefllt;!l1ltnI/I()/ lult-;/' t/ian five (5) years liurn theeffectivity of this Act, New Cornpanies SiJii// irnph)ment their respeclivo publicof/erings not laler tlian liv& (5) )/odrs !rU/li {jIU fS'::';W:/nCG uf tlle!r certificaLe ot"cornpliance,'(uncJerscoring supplied)"

,WHEREAS, Rule 3, Section 4 (r1"'l) of the Irnplernenting nules and F\8Qulatior"ls(IHR) of the said Act provides that:

"Rule 3, Section 4 - Resrv:-nsibilities of the E:=<C,

(m) The ERG shalf p.erforrn such other regulatory functions as areappropriate and necessary in oreler to ensare the successful restructuring andIrJodernization of the electric power industry, such as but not lirnited to, therules and guidelines under which Generation COlnpanies, DistributionUtilities, which are not publicly listed, shalJ offer and sell to the public aportion of not less than fifteen percent (15%) of their cO/nrnon shares ofstocks: Providedy however, That Generation Companies, Distribution Utilitiesortheir respective holding cornpanies that are already listed in the PSE aredeemed in co rnp lia nee. For existing cornpanies, such public offering shall beimplemented not later than five (5) years frorn the effectivity of this Act. NewConlpanies shall implement their respecfjve public offerings not later than five(5)' years from the issuance of their certificate of c0l77pliance; (underscoringsupplied)"

WHEREAS, the said Act took effect on June 26,2001.

NOW, THEREFORE, be it resolved, AS THIS COMMfSSION HEREBYRESOLVES, to require. all Generation Companies (GCs) and Distributlon Utilities(DUs) which are not publicly listed in the PSE, to offer and sell to the public a portionof not less than fifteen percent (15~~) of their common shares of stocks.

FURTHER, for GCs, DUs or their respective holding comPElniE;$ exi$tingatthe time of the pn:Wr1l.llgatioll6fR ..A.f\Jo.9::136,tHe'peri6d6f public6ffering"shanbeimplemented not later than five (5) years from June 26, 2001. For new GCs or theirrespective holding companies, the period of otfering shall be implemented not laterthan fiv~ (5) years from the issuance of their Certificate of Compliance (COC). Forboth catElgories, the public offering process and requirements shall be governed bythe applicable provisions of the Omnibus Investment Code of 1987, as amended, itsImplementing Rules and Regulations (lRR), the Securities Regulation Code (R.A.8799), PSE's rules and regulations; and al1 other applicable laws, rules andregulations.

FINALLY, .GCs and DUs covered by this Resolution, shal1 within thirty (30)days from public offering, submit reports to the Commission on the extent of their'compliance herewith togetherwith Certifications from the PSE showing the numberof shares listed, names of the shareholders presently owning the said shares andother relevant information for monitoring and veri"fication purposes.

This ResoJutkjn shall take effect irnrnediately.

Pasig City, August 17, 2005.

,,/"/'OL ER B. BUT ALID// ~orYlmissjoner1",,,>'

,..-,.'

(On Official 'Travel)RAUF A. TANComrnissioner

NjsIF?(~sS ec4:J(t)9opublic 1

Commissioner

----i:;:i:{tpL~~I--"' ;}-;,,- , . - C __\'-AtEJANDRO Z. BAI~rN-""-'-'

COin III iss ion e r

Republic of the PhilippinesENE~GY REGULATORY COMMISSiON

San Miguel Avenue, Pasfg City

GUIDELINES FOR THE DETERMINATION OF INSTALLED GENERATINGCAPACITY IN A GRID AND THE NATIONAllNSTAl..l.ED GENERATING

CAPACITY AND ENFORCEMENT OF THE I..IMITS ON CONCENTRATION orOWNERSHIP, OPERA liON OR CONTROL OF INSTAllED GENERA liNG

CAPACITY UNDER SECTION 45 OF REPUBLIC ACT NO, 9136

ERe CASE NO. 2005~11RM

Pursuant to Section 45 of Republic Act No. 9136 and Part II. Rule 11, Section.4of the Implementing Rules and Regulations (IRR) of the Act, the EnergyRegulatory Commission (ERe) hereby adopts and promulgates the following "Guidelines fOf the determination of installed generating capacity in a grid and lhenational generating capacity and enforcement of the limits on concentralion ofownership, operation Of control of jns~lIed generating capacity:

ARTICLE I

GENERAL PROVISIONS

Section 1" Purpose/Objectives

The follOwingafe the objectiVesof these Guidel/nes:

f.l. To promote free and fair competition in lhe generation and supplyof electricity to achleve grealer operational and economiceffiCiency; and .

b. To ensure consumer protect/on and enhance the Competitiveoperetlon of the markets for generation and supply of electricity.

Page I of12

f~/~4V!I

,,. II

\.

/./'

(

Act

Affiliate

Control

"'/I

refers to Republic Act No. 9136, otherwiseknown as uEJectricPower industry ReformAct of 2001";

refers to any person Which, atone ortogether with any other person, directly orindirectly, through one or moreintermediaries, controls, is controlled by, oris under common control with anotherperson. Affiliates shall include a subsidiarycompany and parent company. andsubsidiaries. directly or indirectly~ of a.common parent;

generally refers ..to the exercise of adirecting, operating, managing.superintending, restricting, feQuiating

y

governing, administering, or overseeinginfluence over an affair,. business, oractivity; when useij in 'the context of .thedefinition of "AffiUate" and .MRefatedGroupw, refers to the power to direct orcause the direct~n of the management

Page 2 of12

Eiectric Power industryParticipant

Energy RegulatoryCommission orERC

Generation Company

Generation FacUlty

Generation of Electricity

Grid

Installed GeneratingCapacity in a Grid

policies cia Person by contract, byagency, or otherwise;

refers to any person or entity engaged inthe generation, transmission, distribution orsuppJy of electricity;

refers to the regulatory agency createdunder the Act;

refers to any person or entity authorized byERC to operate facilities used in thegeneration of e,lectricity;

refers to a facUity for the production ofelectricity;

refers to the production of e~ctricity by ageneration company or cO"'generationfacility pursuant to the provisions of theAct; .

refers to the high voltage backbone systemof interconnected transmission lines,substations and related facilities, located ineach of LuzooT Visayas and Mindanao

tor

as may otherwise be detennined by theERe;

refers to the sum of the maximum capacityof the generation faciHties which araconnected to a transmission system ordistribution system that forms part of aparticular Grid;

Selfileneration facUiUes (SGFs) shan beexcluded in the capacity computation untilsuch time that the ERe shall haveapproved an appropriate program for their

Page 3 of12

tPp Administrators

Maximum Capacity

National PClwerCorporation or NPC

participation intne market.

refers to qualified independent entitiesappointed by the Power Sector Assets andLiabilities Management Corporation whoshan admjnistert conserve and manage thecontracted energy output of the NationalPower Corporation...independent PowerProducer (NPC ...JPP)' contracts, includingseJUng the contracted energy output ofthese contracts and offering ancillaryservicesj where applicable;

refers to the gross capacity that a unit cansustain over a specified period of time as'established during formal demonstrationthrough testing based on manufacturerstapprOVed procedures or anyintemationaUYhsccepted .testing such as,but not limited tOj the American Society. ofMechanics i Engineers (ASME) andAmerican National Standards Institute(ANSI): Provjded~ That for generation

. faciUties that have not conduct~ suchtesting during. the 12 months immediatelyprior to its initial submission of itsmaximum capacity f the initial submissionthereof shall be the highest nominated'capacity over the period of twelve (12)months as provided in the capacitynomination submission for dispatchscheduling.

refers to the goven'1ment. corporationcreated under Republic Act No. 6395

1as

amended;

Page 4 .of 12

....•.

f )

~ .....•.'.;,~

j. '\,:

I..1i

Ownership

Person

Power Sector Assetsand LiabilitiesManagementCorporation or PSALMCorpa Of PSALM

Related Group

refers to that. relation in law by virtue ofwhich a thing pertaining to one person iscompletely subjected to his win ineverything not prohjbited by law or theconcurrence with the rights of another;covers both equitable or legal ownership;

refers to a natura! or juridical person;

refers to the corporation created pursuantto Section 49 of the Act;

refers to a person and any business entitycontroifed by that person; along with theAffiliates of such business entftyt and thedirectors and officers of the business entityor its AffiUates, and relatives byconsanguinity or affinity, fegitimateorcommon law, within the fourth civil degree,of the peISon or any of the foregoingdirectors or offiCers. .

ARTICLE U

l.imitations and Determination of Ownership,l Operation or Control ofInstaUed Generating Capacity

Section 1" lJmits on Concentration of OwnershipJ Operation or Control ofInstalled GGnerating Capacity.

No Person, Company, Related Group Of IPP Administratorr singly or incombination, can own, operate or control more than thirty percent (30%) ofthe installed generating capacity of a Grid and/or twenty-five percent(25%) of the national installed generating capacity.

Page 5 of12

, 1

S,actiOIn 2..Determ3h nition of the Installed Generating Capacity

To determine the installed generating capacity of a Grid, for the purpose ofapplying the Limits on Concentration of Ownership, Operation or Controlof Installed Generating Capacity:

B. the instaHedgenarating capacity of a generation facility is the sum ofthe maximum capacity of the generating units that comprise thegeneration facUity~

b. the generating capacity of a generatirtg unit is the maximumtapacityof that generating unit, except that ...

L the generating capacity of a generating unit will be deemed tobe reduced to the extent of any permanent reduction in itsmaximum capacity;

it the generating capacity of a generating unit win be deemed tobe zero when it was temporarily shut down and was notenergized for connection to the Grid during the 12 months; orfrom January to Decembert preceding the determination of itsgenerating capacity for the current year;

C. a generating unit even if it, has not generated electricity at itsmaximum capacitY1 wUl be deemed to be instaUed only jf it has beenphysicaUyand electricaJJyconnected ,to the transmission system ordistribution system that forms part of the Grid and has injected energyinto that system; and

d. when'the maximum ,capacity of generating plant cannot be ,transmittedby reason of inadequate transmission capacrty and it is "estabtishedthat such inadequa.te capacity wm persist in the next 12 months fromthe determination of the national installed generating capacity andinstalled generating capacity per Grid; and that the inabmtyto transmitthe generating plant's maximum capacity wiU continue' even if othergenerating plants similarly constrained will not operate at maximumcapacity) the generating capacity of the said generating unit shall bedecreased by' a proportionate amount corresponding to thetransmission constraint.

Page6 oft2

(I

F•i- ~ ., ..,.;;;;;;;;m:~~t~;'~~~\:~':~t

Section 3. Fixing, . the Installed Capacity per Gridi ItJonai Grid and theMarket Share Ljmt~tionper Grid and the National Gr~Q

In accordance with the .foregoing Sections, the initial setting of theinstalied gsneratingcapacity per Grld. national Grid and the market sharelimitations per Glid and the national Grid shan be contained in a separateand appropriate document to be issued by the ERe to that effect

The foregoing instaiJed generating capacity per Grid and national instaUed 'generating capacity, and market share limitations wilt be adjusted BY theERe on or before the 15th day of March of the succeeding years and/or asoften as may be necessary based on the maximum capacity of the powerplants as submitted by the Generation Companies and other entities thatare required to submit reports under oath with the ERC pursuant to theseGuidelines on their compliance with the market share limitations set in theAct and the Guide!ines on the Issuance of Certificates of Comp!iance.

Section 4\1 Crediting ~f Generating Capacity

In crediting generating ("~pacity of a generation facUity in favor of one ormore persons .or entities, which own, operate, or control such generationfacility, the following rules shaH be observed:

a. If' different entities own the same generation facmtYt the capacity ofsuch facUity shaU be credited to the entity controfUng the terms and.conditions of the prices or quantities of the output sold in the market.

b. If an entity owns the generation facility and some other entity. or entitiesoperate or exercise control over such faciiitY1 pursuant to amaintenance or operating contract lease, assjgninent

fjoint venture

agreement, or any other simiiar ..arrangement, the capacity of suchfacility shan be credited to the entity or entities controlling suchcapacft)f\ to the extent subject of its or thek control, and not to theentity owning the generation facilrty.

C. Consistent with the foregoing, in the case of NPC and its independentPower Producers (IPPs), it is the contfo I and not the ownership of thepower plants which determines who should be credited with the totalcapacity under contract as it isNPC that actually controls the quantity

PagJll! 1of12

(dispatt ~~ve1)generated from the subject.pt. ~trplants and the priceof etectricityoffered to the market. Thus. NPC win be Credited thecontracted capacity while the remaining capacity not under contract wmbe credited to the owner of the pfant or the entity exercising controlover such remaining capacity, in accordance with the preceding ruJes.

In the case of Distribution Utilities (DUs), however. they shan not beconsidered in controf of the capacityj which they have contracted und~rbilaterat supply contracts executed with generation companies for thepurpose of serving their customers, provided that such contractedcapacity is not1 in the determination of the ERe taking into account aUrelevant considerations such as the DUJs forecasted demand,unreasonably excessive. In such cases, the OU shaU, after dueproceedings, be credited with the capacity in excess of \\that the ERedeems to be reasonable for such DU. .

d. The preceding rules notwithstandingt if, in ERe's determination, theowners have resorted to a partk:ular maintaining or operating contract,lease, assignment, joint venture agreement, or any other similararrangement~ that would have the effect of defeating the rule on theUmits on concentration of ownershipt operation or control of instaifedgenerating capacity or circumventing the provisions of the CompetitionRules, the ERe, after due notice and hearings may deem any or aUtheparties to such contracts or arrangement to be in control of thecapacity of the generation facmty and thus in their favor wUl beindividuaUy credited the capacity of such facility to the extent coveredby their contracts.

Section 5. Exemption from the Market Share Limitations

Section 1 hereof shan not apply to PSALM or NPC during the time that itsassets are being .privatized and isolated Grids that are not connected tothe high volage transmission system. _ .

Section G" Breach of the Market Share Limitations

In the event that a Person or entities covered by the Market ShareLimjtations should exceed the limits as periodically determined and set bythe ERe in accordance ~Niththese Guidelines

1there shouid be a duty on

Page 8 of 12

, r, ..: ;/;j '\i .~:

!. I

I

their part to port this fact and the reason therlO..,.Jf to the ERe withinfrrteen (15) days from s"tai1of occurrence.

Upon determination by the ERe that a Person or entities covered byMarket Share Limitations have breached the prescribed limits, the EReshaH issue an order for the imposition of pr.ce controls, issuance ofinjunctions, requirement of ,divestment or disgorgernent of excess profitsor other market power mitigating measures whk;hare reasonably knownand generally accepted within the electric power industry that the ERemay implement. Such person or entities shan comply with such limitswithin a reasonab1e period, without prejudice to the imposition of the finesand penalties as provided under Article HI of the ~GuideUnes to Govern theImposition of Administrative Sanctions in the Farm of Fines and PenaltiesPursuant to Section 46 of the Act" and institution of administrative casesagainst the erring parties for violation of the Competition Rules and theimposition oltha pen:affies thereunder.

If the reason for exceeding the limits is the increase or improvement in thetechnical capacity of the existing "generation 'faciJities of such Person orentities due to plant rehabilitation and other improvements or for any otherfactors bey()nd the. control of such Person' or entities and there is no unfaircompetition that is created thereby; the ERe may excus.e the same untilits next determination of the installed generating capacity in'8} grid and thenational instaUed generating capacity and only after, then will the EReissue ,an order for appropriate market power mitigating measures ordivestment, if sun warranted, to such extent as would make such Personor entities compliant with the market share limitations based on theupdated installed generating capacity in a grid and the national installed

" generating capacity. If such breach constitutes a benefit to the pubUc, the.ERe may likewise grant authorization under the Competition Rules, afterdue notice and hearing, and subject to such conditions it may impose. forthe breach of the martet share Umitations. '

Page90f12

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Reportorhd Requirements

Section '1..Information

1~ To enable the ERe to monitor compliance with the mafket sharelimitations, each generation company must file with the ERe

fon or

before 30 January of each year, a statement under oath containing the. following information:

a. a list current as of the preceding 31 December, of alJ of the. generating units of the generation company which arecommissioned and connected, and their mandmurn capacity, fue~type, and location; . ,

b. a list, current as of the preceding 31 December, of aU of thegenerating units of the generation company. which win becommissioned and connected during the flUng year, and the1fproposed maximum capacity, fuel type, and location;

c. for each of the generating units referred to in paragraph (a) Of (b), ifownership and control is vested in or shared with another or someother entities other than the generationcornpany, the persons orentities which have equitable orfegal title thereto and those which.exercise control over the capacity thereof, pursuant to whateverarrangement entered into by and. between them;

d. for each of the entities referred to in paragraph (0):

L the names and addresses of the stockholders and theirrespective sharehoidingsr the current directors and officers;

ii. the name and registered offiCe of any ho!ding company, and thename and registered, or principai o'ffice of any parentundertaking; and .

m. a list of aUthe affiliates and their addresses and of the namesand addresses of their current directors and officers.

Page 10 of12

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2. The sta~';;i{nentunder oath referred to in the preceding paragraph sha~be jointly filed by the entities owning the generation facility and thoseexercising controi over the capacity thereof. The latest AuditedFinancial Statements and General Jnformation Sheets shan tikewisebe submitted to validate the information referred to in paragraph 1(d)above.

3. To enable the ERe to monitor the actual generating capacity in thesystem. it shan be the obligation of aU generation companies and/Qfentities which exercise control over the capacity of such generationcompanies to jnform the ERe through e~ctroJ1jc mail of any changesin their maximum capacity on a per unit basis~ within five (5) days from'the occurrence thereof.

. Section 2~ .Power of ERe to Require ~nformation"

The ERe may, upon written notice, .require any Person covered by theseGuidelines including the Market Operator, to. provide it with anyinformation or documents under oath relating to the enforcement andmonitoring of compliance with these Guidelines.

ARTICLE rvSANCTIONS

Any Person covered by these Guidelines that faas to comply with any of theabove Sections. after due not~e and hearing, shan be liable for such appropriatefines and penalties as provided under ArticJe ~iI of the G4Guideiines to Govern theimposition of Administrative Sanctions in the Form of Fines and PenaltiesPursuant to Section 46 of the Act-It Failure to comply with any of the aboveSections or to any order issued by the ERe pursuant thereto shall also be aground for revoca~ion of Certificate of Compliance ISSUedto the erring generationcompany.

Page 11 of12

ARTiCLE V

SEPARABiliTY

if for any reason any provision of these GuideHnes is declared unconstitutional orinvalid by final judgment of a competent court, the other parts or provisionshereof which were not affected thereby shan continue to be in fun force andeffect .

ARTiCLE VI

EFFECTiVITY

These Guideiines shaU take effect onihe fffteenth (15~ day following' itspubl~ation in a newspaper of general circu!~dion.

Pasig City. December 14,2

. 'fi~ ..RA A.TAN-'Commissioner

EFSiFSAJIMACB/A:\Guidetines template.rtf

Page 12 of12

F<.epubUc o"f the Philipp ines~c(EGULt\TOF\.Y

San fv'ligueJ !\v2ftUe, Pasig City

WHEREAS, the Guidelines for the Issuance of Certifi~ate of Compliance(COe), as arnendecJ was approved on 1.} une 26, 200~2;

WHERE,4S, on. th.e basis of the aforesaid Guidelines, the terms andconditions of the Certificate of Compliance (COC) to be issued entities owningseif-generation facliities (SGFs) were formulated and approved by theCornmjssion in its llleetinf] held on /\pril 23,2003;

WHERE).\S, Item No. 5 of the terms and conditions of COC issued toentities owning SGFs provides as fo))ows:

"Within "10days cdtertfle end of each month, the Generation Companyshall submit to ERC an electronic copy of the kWh generated, Companyuse, loss or unaccounted energy,', volume and arnount of fuel utilized togenerate power;"

.WHEREAS, there is a necessity to amend said Item NO.5 on the monthlysubmission of required reports by entities with SGFs to align with the annualreportorial requirements for generation companies/Independent Power Producers(IPPs) 'to be less burc1ensorne to entities o'yvning SC3Fs;

NOV\}, THEREFORE, pursuant to its mandate, to promota a policy of fulldisclosure of all transactions involving public interest and provide an environment. conducive to wholesome and constructive cornpetition thereby promotingefficiency in the management and operation of Industry Participants, the ERChereby amends Item 1\10. 5 of the terms and conditions of the COC issued toentities owning SGFs, existing and newly constructed. facilities, to read asfollows:

"Within 30 days after the end of each year, the Generation Company shallsubmit to ERe an eiectronic copy of the rnonthly sJ.u1'"Jmary of its k\Nhf]enerated, Company use, loss or unaccounted enerfJY~ volurne andamount of fuel utilized to generate power;"

This Resolution shall take effect immediately foHowing its publication in anewspaper of genera! circulation in the Philippines.

Pasif] City, March H, 2006.

(On Official Leave)FV\UF A. TAf'JCommisioilS'f

"J /&/1!--- Ml\C8tOA 1l


SanMiguel Avenue, Pasig City

RESOLUTION NO. 21..,..., Series of 2006

A RESOLUTION SUSPENDING THE EFFECTIVITY ANDIMPLEMENTATION OF CERTAIN RULES ISSUED BY

THE ENERGY REGULATORY COMMISSION

WHEREAS, Section 43 (~) Republic Act. No. 9136, otherwise known asthe Electric Power Industry Hefonn Act of 2UO"1O:::FJIF\A), duUlol"izes the EnergyRegulatory Commission (EF~C) to perform sud; "regul.c=rtory functions as areappropriate and necessary in' order to enStJl'Ej tile sLlcc0::ssful restructuring andrnodernization of the electril; power industry.,,;11

'WIIEfH:AS1 ill tilt: bxerCibt;; ul' suell Clull}()lllV-, 111\:; 1.1«; bsuesadlninistrative rules to irnplelnent H'le provisior'ls or ErJlI\f\) 811d Cliliung sud'i rlllesit has issued are lhe Amendment to HH:: GuideHllt:~ for tllt': necovery of Cost.sfor the Generation Component of the Disl.ribuUon lJtiliUes~ Hales dated 22Decernber 2004 and Resolution No. 18, Series of 2005, IrnplernentingSection 43 (t) of Republic Act No, 9"136 and Hule ~5, Section 4(rn) of theImplenlE,:ntirlg Hulas of the Said Act dated 'J7 I\u~]w~l 2005:

VVHEREAS, the ERe Issued the af(jte-sr~lrecl nilE;s without conductingpublic hearings or consultations thereon upor{ its in!eq':netation )llat therequirelYlent in Section 9 (i), Chapter 2, Book VII of the /-;drninistl'ati\/l:':: Code of1987, which provides:

Sec. 9. Public Participation -- (1) If not otherwise requJred by law) anagency shall, as far as practicable, pub"lish or circulate nofices of proposedrules and afford interested parties the opportunity to submit their viewsprior to the adoption of any rule.

is not mandatory;

WHEREAS, the ERe has received several requests for clarification of theafore-stated rules and it has recently corne to its attention that the SupremeCourt has laid down a doctrine on the matter of issuance of administrative rules,to wit: "

x x x The doctrine enunciaiedin Fortune Tobacco, andreiterated in CIR v. Michel J. Lhui//ier Pawnshop, Inc" is that whenan administrative rule goes beyond merely providing for the meansthat can facilitate or render less cumbersolTle the implementation o,fthe law and substantially increases the burden of thosegovernedt it behooves Jhe ag~.o.QY,_to a_ccord ~Jeast t2-~"lOsedirectly affected a chance to be heard and, thereafter~_be d.Qb{informed, before the iss~Janc~~given the force_~,l~L~ffect Q1Ja\!'{,(BPI Leasing Corporation vs. Court of Appeals} et al., G.H. No.127624, 18 November 2005).

WHEREAS, the ERC"in order to obviate a possible legal challenge to thevalidity of the afore-stated rules and to afford all affected parties the opportunityto submit their views and comments thereon, has agreed to subject said rules topublic hearings.

NOW, THEREFORE; the ERC hereby F~ESOLVESJ as it is herebyRESOLVED, to SUSPEND the effectivity and implementation of its Amendmentto the Guidelines for the Recovery of Costs for the Generation Componentof the Distribution Utilities' Rates dated 22 Decernber 2004 and R~solutionNo. 18, Series of 2005 Implementing Section 43 (t) of Republic Act No. 9136~n~...r:<ui~.3'~~f~j9~ ...7(T) ?f~h~liIl pl~~~p~in@.~~lle~. of~f}~~~i~ ...A~t~~ted 17. August 2005; pendirig the conduct and termination of public hearings thereon.

This Resolutidn shall take effect immediately.

Pasig City, 10 May 2006

(On OffiGialBusiness)RAUF .A_ TAI\!Cornrliissiul ier

FC,Jlresoluli{Jn __pubic hearing


INOW, HiEREFORE, the ERG hereby RESOLVE:S, as it is hereby

RESOLVED, to PROMULGATE the RULES FOR THE REGULATION OFQUALIFIED THIRD PARTIES PERFORMING MISSIONARY ELECTRIFICATIONIN AREAS DECLARED UNVIABLE BY THE DEPARTMENT OF ENERGY, Whichis hereto attached. I

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/~UTAUb/ r;;;~sslOner

~~2fl"~' '-RA~F A. TANcommiSSioner.

FCJ/QTP _resolution

j

~~e. commisr~

2

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Republic of the PhilippinesENERGY REGULATORY COMMiSSION

San Miguel Avenue! Pasig City

RULES FOR THE REGULATION OF QUALIFIED THIRD PARTIESPERFORMING MISSIONARY ELECTRIFICATION IN AREAS DECLARED

UNVJABlE BY THE DEPARTMENT OF ENERGY

Pursuant to Section 59 (Alternative Electric Service for Isolated Villages)in relation to Section 70 (Missionary Electrification) and Section 34 (UniversalCharge) of Republic Act No. 9136, otherwise known as the UElectricPowerIndustry Reform Act of 2001" CEPIRA"), and its Implementing Rules andf~egulations ("EPIRA-IRR"), and cognizant of the policies of the Department ofEnergy (DOE) as expressed in DOE Department Circular DC2004-06-006entitled "Prescribing the Qualification Criteria for the Qualified Third P8Ity" andDOE.O'epartment Circular NO. DC2005-12-011 entitled "Prescribing theGuidelines for Participation of Qualified Third Parties (QTPs) for the provisionof Electric Service in Rernote a17(tUnvia/)h-) Areas, Pursuant to Sections 59 and70 of the Electric Power IndustlY "Refoqn) Act and its Implementing Rules andRegulations" for the promotion of rural electrification, the Energy RegulatoryCommission (ERG) hereby adopts and promulgates these Rules for theregulation of Qualified Trurd Parties (QTPs) operating in DeclaredUnviableAreas by the DOE.

ARTICLE I

General Provisions

Section 1. PurpQse. ~ These Rules shall establish the framework andprocedure for:

(a) Determining how ERe will qualify and authorize electric serviceproviders in unviable areas, consistent wi til Rule 14 (ProvisiOn ofElectriCi(y by Qualified Third Parties) of the EPIRA-IRR, and in

' pursuance of the State's policies to ensure and accelerate the totalelectrification of the country and enhance the inflow of private capital

, and participation of private st;ctor in attendant risks, in the energizationof remote and unviable areas of the country through Qualified ThirdParties;

(b)' The issuance of the necessary permits required by the EPIRA forQualified Third Parties to provide electricity service in Declared UnviableAreas; and

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I Republic of the PhilippinesENERGY REGULATORY COMMISSION


RESOLUTION NO. 22 , Series of 2006

IA RESOLUTION PROMULGATING TI1ERULES FOR THE REGULATION OF

QUALilFIED THIRD PARTIES PERFORMING MiSSIONARY ELECTRIFICATIONI . . .

IN AREAS DECLARED UNVIABlE BY THE DEPARTMENT OF ENERGY

Wt-fEREAS, Section 43 (t) Republic Act. No. 9136, otherwise known as theElectric Power Industry Reform Act of 2001 (EPIRA), lauthorizes the EnergyRegulatory Commission (ERe) to perform such llregulatory functions as areappropriate. and necessary in order to ensure the successful restructuring andrnodernization of the electric power industry .. ,;"

WHEREAS, on 16 December 2005, the ERG posted the "ProposedGuidelines for the Regulation .of Qualified Third Parties Performing MissiohfjryElectrification in Areas DeciaredUnviable by the Department of Energy"(Proposed G~idelines) on its official website (.'t.[WW:QLQAQv.ph) for comments;

I

WHEREAS, on 16 January2b06, the ERG issued a Notice of PublicConsultations which indicpted the scheduled dates and venues for the publicconsultations on the Proposed Guidelines, as follows:

i~i~~}gg~6~--i:~~;santo~~~y ~_. ~.

V\/HEREAS, the ERC conducted. public consultations on the dates andvenues specified above;

. WHEREAS, in the interest of h~aring additional comments and opinions on-the Proposed Guidelines, the ERC issued a Notice dated 17 February 2006,

\. scheduling t~? (2) additional public consultation dates in the following venues:

Date9 March 200620 March 2006

WHEREAS, the ERG received two (2) written comments on the ProposedGuidelipes and oral comments given during the scheduled public consultationsand the same wer~ considered in its deliberations on the Proposed Guidelines andthe nece,ssary revisidns were made ihereto;

WHEREAS, in aC~Qrdance with its mandate under the EPIRA, after, consideration of the various views and comments submitted and manifested by

interested parties, and based on its own study and analysis, the ERC finds it -lappropriate to approve the Proposed Guidelines with the revisions adopted by theCornmission,in~luding the change in its title to the tlRules for the Regulation of .Qua.lified. Third parties Performing M!~sionary Elle...!, ctrification in Areas Declared... j)Unvlable by the D~partment of Energy;~<,. A'f'. / INI~.- ... \. w.

i'e I

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(c) Setting the rates, subsidies and service standards for Qualified ThirdParties.

Section 2. Definition of Terms, ~

'.". (a) HAuthority to Operate" or uATO" refers to the authorization issuedbyfhe ERG to the QTP which shall constitute as the latter's license toprovide, electricity and related services, including as necessary,generation of electricity-in fi' spec!fi~d QTP Service area; ,

(b) tlCertificate of Compliance" or "cae" refers to a certificate givento an Entity by the Energy Regulatory Commission to engage in theoperation of a power plant facility used to generate electricity pursuant toSection 6 of the EPIRA and Sections 4 and 5 of the EPIRA-IRR;

, (c) UDelegatedl NPCmSPUG Area" refers to an area not connected tothe national grrd transmission system where a New Power Provider(NPP) or NPPs, act, on behalf of NPC-SPUG ,in providing electricgeneration services and its associated power delivery systems;

I

(d) "Declared lJnviable Area~' refers to an Unviable Area which theDOE has declared to be open for participation by Qualified Third Parties,in accordance with Section 59 of EPIRA and Section 3 of Rule 14 of theEPIRA-IRR, after the waiver thereof by the concerned Distribution Utilityfor inclu,sion in the DOE's Qualified Third Party Program;

(e) "Department oJ Energy" or "DOE" refers to the government, agencycreaied pursuant to Republic Act No, "1638;

(f) "Distribution Code" or ~'pode" refers to the term defined in Section4(m) of the EPIRA and Rule 4(y) of the EPIRA-IRR;, ,

(g) "Distribution' Utmty" or "DU" refers to any electric cooperative,private corporation, government-owned utility or existing localgovernment unit which has an exclusive franchise to operate a

, distribution system in accordance with its franchi~e and the EPIRA asdefined in Section 4(q) of the EPIRA and Rule 4(cc) of the EPIRA,.IRR;

(h)" "Electric Cooperative" or "EC" refers to" a distribution utilityorganized pursuant to Presidential Decree No. 269, as amended, asdefined in Section 4(r) of the EPIRA and Rule 4(ee) of the EPIRA-IRR;

(i) "Eiectricity Service" refers to the service embodied in the OTPService Contract duly endorsed ~y the DOE;

!(j) "Energy Regulatory Commission" or "ERe" refers to theindependent, QU1si-judicial regulatory agency created under Section 38of EPIRA;

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(k) !£Entity'1 refers to any person or body corporate, and may include acooperative or a local government unit;

(I) uEPIRA~; refers to Hepublic Act 1\10.9136/ otherwise known as the, "Electric Power Industry Reform !\ct of 200-1";

(m) $iEP~Ri~..~f{R~;refers to the Implementing Rule? and Regulations ofthe EPIRl.\;

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(n) '~FuH Cost Recovery Rate;' or uFCRR;; refers to the rate,..expressed iii Peso per kilowatt-hour, that recovers the full efficient costsof providing Electricity Service sufficient to enable the Qualified ThirdParty to operate viably;

, (0) "Mil!;sionarYElectrification" refers to the provision of basic

electricity service in Unviable Areas with the ultimate aim of bringing the' operations in these areas td viability levels, including the provision of

power generation and its associated power delivery systems in areasthat are not connected to the /lational grid transmission system;

(p) "Missionary Electrification Subsidy;' or liME Subsidy~' refers, forpurposes of these Rules, to the fund duly approved by the ERe to coverthe difference between the FCRR and the Subsidized Approved RetailHate of a Qualified Third Party sourced from the Universal Charge forMissionary Electrification; !

(q) "National Power Corporation ~Small Power Utilities Group" or"NPC-SPUG" refers to the functional l,lI1it of NPC created to pursuemissionary electrification function as defined in Section 4(tt) of theEPIRA and Rule 4(bbbb) of the EPIRf\-II~R;

(r) HQualified Third Party" or "QTP" refers to an alternative electricservice provider that meets the standards in and is chosen inaccordance with DOE Cjrcul~r No. 2005-12-011, and is duly qualifiedand authorized by the ERG to serve Declared Unviable Areas pursuantto Section 59 of t7e EPIRA and Rule 14 ofthe EPIRA-IRR;

(s) HQTP Service Area91

refers to the geographic area corresponding tothe Unviable Area/s where orp shall be authorized to provide ElectriCityService as stipulated in the QSC;

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(t) "QTP Service Contract" or "QSC" refers to the contract enteredinto by NPC and the QTP, duly approved by th~ ERG, defining theQTP's responsibilities in undertaking missionary electrification inDeclared Unviable Areas. This contract shall set the terms andconditions by which the OTP shall provide the Electricity Service, andshall include the tariff levels, other electric service charges, and theapplicable performance and service standards to be met by such QTP;

(u) "Sillectioll Process" refers to the formal steps undertaken by theDOE to 'choose, in accordance with the criteria set forth in DOE CircularNo. 2005-12-0 '11, the prospective orp that can apply for authorization

' with the ERe for the provision of Electricity Service in a DeclaredUnviable Area;

I(v) "Subsidized Approved Retail Rate" or "SARR" refers to the rate,expressed in Peso per kilowatt-hour. that the ERe has determined to bethe maximum that,an end-user in a Declared Unviable Area shall.pay forthe Electricity Service provided by a orp in that Declared UnviableArea;

(w) "SUbsidy and Disbursement Agreement" or "SDA" refers to theagrsement entered into between the orp and NPC setting forth theterms and conditions governing the QTP's availtnent of the UC-MESUbsidyto allow it to viably serve the orp Service Area;

(x) "Retail Rate" refers to the total price paid by end-users consistingof the charges for generation, transmission, and related ancilljaryservices, distribution, suppiy and other related charges for electricityservices as defined in Rule 4(wuu.) of the EPJRA-JRR;

(y) "Universal 'iharge" or "UC" refers to the charge, if any, imposedfor the recovery of stranded cost and other purposes pursuant to Section34 of the EPIRA as defined in Section 4(ddd) and 34 of the EPIRA andRule 4(rrrr) and Rule '18 of the EPIRA-IRR;

(z) "Universal Charge for MiSSionary E/ectrificatioll" or "UC-ME"refers to the portion of the Universal Charge which is designated forMissionary Electrification;

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(aa) "Unviable Area" refers to a geographical area within the franchisearea of a DU Where the immediate extension of distribution line is notfeasibl!'!, as eefined by ~ule 4 (ssss) of the EPIHA-IHR. For purposes ofthese Hules, Unv/able Areas shall also include those areas which arecurrently served by the concerned DU but are deemed' unviable and are

. sYbsequently declared by.the DOE as open for participation by QualifiedThird Parties; and

(bb) "Waiver Contract'" r~fers t~ the contract entered into between theDU and the orp pursuant to Rule 14, Section 5(a) of the EPIRA IHHwherein the DU transfers the responsibility to service the area describedtherein to the OTP. For avoidance of doubt, the contract shall be with aperiod and during its existence, the DU's franchise shall not be deemedas transferred, abandoned and/or modified with respect to the areaincluded tberein, as oniy the right to service such area shall be deemedassumed by the. QTP.

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SeGtion 3. Scope. ~ These Rules shall apply to Efltities which seek toprovide Electricity Service as QTPs in Declared Unviable Areas pursuant toSection 59 of tile EPIRA and Rule 14 of the EPIRA-IHR.

AHTICLE i!

Qualification and Authorization of Entitk'!s to ProvideElectricity Service in peclared Unviable Areas

Section 1. \fVho may, become QlPs. " The following may be considered

as QlPs: I

(a) An Entity, except a DU whose franchise includes the DeclaredUnviable Area being applied for service by QTP, who was determined asa prospective OTP, in accordance with the Selection Process conductedby the DOE for Declared Unviable Areas; or

(b) An Entity, other than the concerned OU, its affiliate or subsidiary,who, prior to .thE? issuance of these Rules, without undergoing the DOE'sSelection Process, is already engaged in providing electricity service inan Unviable Area; provided that, the same or a portion thereof becomesa Declared UrwiableArea. .

An affiliate or subsidiary of a DU may participate in the SelectionProcess Gf~the DOE with respect to a Declared Unviable Area within such DU's

. n-ancllise area and become .a prospective QTP therein under Section 1 (a),provided that tllere is complete-buSiness; operational, and functional separationbetween such affiliate or subsidiary and the concerned DU.

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; Section 2. Qualification and Authorization of Entities under Section'1 (a) to Operate as QTPs. ~ An Entity who is pre-qualified by the DOE underDOE Department Circular 2004-06-006 and selected as a prospective QTPthrough the DOE's Selection Process for a specific Declared Unviable Area,shall file an application with the ERG for authorization to provide ElectricityServi~~e in a specific Declared Unviable Area as a QTP and for issuance of itscorresponding AlO and for approval of its QSC with NPC. Together with itsapplication, it shall submit the following:

/\).lP0t/\--I~~ .(a) QSC between the QTP and NPC;

(b) Waiver Contract signed by the concerned DU and the QTP;

/oWMk~~~~(c) SOl\. sign~d between t~ QTP and NPC, if any;

I(d) DOE Certification that the QTP was pre-qualified in accordance with

I DOE Circular 2004-06-006 anq DOE Circular 2005-'12 ..011;

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(e) DOE Certification that the QTP was determined based on the DOE'sSelection Process;

(f) Helevant technical details of engineering design of the proposedsystem, including the generation facilities and associated deliverysystems, if necessary;

(g) Relevant financial details of the project, if necessary;

(h) Other necessary permits to implement the project, includingenvironmental certificate 'from appropriate government agencies; and

, (i)- Other documents and information that the ERe may require., I

. Section 3. Qualification and Autf)orization of Entities uilder Section1 (b) to Operate as QTPs. - An Entity -failing. under Section 1 (b) who intendsto continue operating as 'a QTP shall file an application with the ERC, withinOne ;(1) Year from effectivity of tl185'e Hules, for authorization to provide, as aQTP, Electricity Service in a specific Declared Unviable Area whereit is alreadyoperating as an electricity service provider. Together with its application, it shallsubmi~ the following and submit the following:

, (a) QSC between the QTP and NPC;

(b) Waiver Contract signed by tile concerned DU and the QTP;

(c) SDA signed between the aTP and NPC, jf any;

(d) Data regarding the continuation of operations of the applicant in theDeclared Unviable Area;

(e) DOlE Certification Ulat the area already being served by applicant isa Declared Unviable Area;

, (f) Relevant technical detailsl of engineering design of the system usedby applicant, including the generation facilities and associated deliverysystems, if necessary; I

(g) Relevant financial details of applicant's operations, if necessary;

(h) OHler necessary permits, including environmental certificate fromappropriate government agencies, if applicable, E1ecured by applicant;and I

(i) -Other documents and information that the ERG ~ay require.

Section 4. ERe Action on the Application. ~ Upon the filing of theapplication, the ERe may, on its own or upon motion, grant a ProvisionalAuthority (PA) based on the allegations of the application and on such other

\ documents attached thereto or submitted by the parties. The ERG, ifnecessarY;; may schedule a hearing ;for the issuance of a PA not later than thirty(30) days from tile filing of .the ~pplica.tion. Thereafter, the Commission shall

.J) issue a ruling either granting- or denyif1gJ the PA stating clearly the reasonstherefor, within seventy five (75) days from the 'filing of the application.

The ERG shall decide the application within sixty (60) days from the timethe applicant formally offers its evidence; otherwise, the application shap bedeemed approved upon the lapse of said period. Its decision approving theapplication shall constitute as th~ applicant's license or ATO within theDecl1ared Unviable Area applied for as a QTP. . I;~~

Section ~j. NPC p(~rh}nning the Functions of th~ QlP. w In the eventthat no QTP qualifies to provide Electricity Service to a Declared UnviableArea, NPC-SPUG shall, act as the provider of last resort and perform thefunctions of the OTP. NPC shall include its ME Subsidy requirements in itsapplication to the EHC as provided in Section 3(a) of Article IV.

Section 6. Special Rules for Smali QTPs not Requiring Subsidies. ~An ~ntity proviping Electricity Service in a Declared Unviable Area which:

(a) has a generating capacity below 200 kW; orI

(b) has fewer than 100 connections;

and

(c) does not seek to avail of a Missionary Electrification Subsidybecause its retail rate is eqLla/to or lower than the ERe-approved SARRin the Declared Unviable Area where it operates, I L>(;l4

6i11l<r

shall be deemed qualified and authorized to act as (')TP upon issuance offttJJ 'coe in its favor, provided that such authorization shall be valid only during theeffectivity of the Coe, while the above conditions are satisfied, or uponrevocation by the ERG, whichever comes earlier. .

If the above conditions are no longer prevailing, said Entity shall complywith Article II, Section 2 or 3, as applicable, jf it intends to continue operating asa OTP.

Section 7. QTP Service Contracts (QSCs). m The QSC between a QTPand NPC shall include t~le following:

(a) A clear description of the scope of services to be offered by the QTP,including schedule for the target connections, and modalities of paymentcollections, among others;

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I (b) Tile Full Cost 'Recovery Rate (FCRR) and an adjustment mechanismprovision, if any, that promotes fair and reasonable' consumer tariffs inaccordance with the level of serVice provided by the OTP;

I

(c) Efficient allocation of risk;

. (d) The term of the QSC, which shall be commensurate to recover thenecessary investment of the QTPj but in no case to exceed twenty (20)

! years; I

In the event that the QSC's term exceeds the remaining franchise term'of the concerned DU, the QSC's term shall be shortened and the FCRRadjusted accordingly, unless Congress grants such DU an extensional'renewal of its franchise; . I

(e) The responsibility of the aTP to ensure, at all times, consumer safetyand protection; and .

(f) The applicable service and safety standards as prQ)Vided in Article III.I

Section 8'i9t.fl~gR~H;ttireciRetfnits. - J».QT;P.vvllQ~e.EIE;ctrjGitY$ervice,j(,jn8JV~~?,tq~g~.nerati().n,..ofE;l.eytri9ity.S,QclIJJi.K.evv.i$f~,'bereqLlir~gi&~.ft~~(~l1r~.•:?C~ C

c;eHIf(t;at"$':Qf"C0I77pl/alice tor ~Gehe(ml(jn Gompa/7 ieslF aCililies,.as .Amended .

ARTiCLE mI

Service Standards and Compliance with the Distribution Code

Section 1. Service Standards and Compliance with the DistributionCode ~Service and safety standards that the ERe shall require QTPs to meet,which may include applicable provisions of the Distribution Code, shall beincluded as specific terms and conditions of the QSC.

Section 2. Rules for the Setting of Service and other Standards. _Given the different technical configurations of the facilities that theOTP maypropose to construct, the ERC hereby adopts the following rules for setting theservice and other operating standards for OTP operation, on a case-to-casebasis:

(a) The ERG "shall have the fu'll authority to set the actual parameters tobe followed by any QTP during its review of tr18 technical design forapplicable generating facilities and associated delivery systems andInspection of tile actual construction of entire system. The service and

. other operating standard~ specified in the approved QSC shall be usedas the basis of ERG's evaluatiojl of the technical and operatingperformance of the QlP. .

(b) ERe shall allow spepial operating standards for low-costelectrification solutions to cater to the socio~economic conditions of thetarget custorners in the Declared Unviable Areas.

(c) As a general rule, the QSC must conform to the followingrequirements of the Philippine Distribution Gc?de for safety and

, acceptable service standards for the consumers, subject to the size ofQTP and the ability to pay of the target customers:

(i) Below One Cl) MW: those provisions of the PhilippineDistribution Code that represent the minimum for safetystandards; and

(ii) One (1) MW and above: those provisions of the PhilippineDistribution Code that represent the minimum for safety. andservice standards. !

ART~CLE IV

Process for Setting and Adjusting the Full Cost Recovery Rate (FCRR),the Subsidized Approved Retail Rate (SARR) and Missionary

E!ectrification Subsidy (ME Subsidy)

Section 1. Determination of the FeRR. - in theQ,TP's application withthe ERG for authorization to provide Electricity Service in a specific DeclaredUnviable Area as a QTp. and issuance of its corresponding ATO and forapproval of its QSC with NPC; it shall indicate its proposed FCRR. The ERGshall evaluatE? and set the appropriate FCRH, as follows:

(a) For areas where two or more qualified Entities participated in theDPE's Selection Process, the FCRR shall be that FCRR proposed bythe selected Entity.

,(b) For areas where there 'i~ only OJ-H~ Entity who participated or qualifiedin the Selection Process, the FCRR stlall be determined using the twelvepercent (12%) Return on Rate Base (RORB) methodology or some otherappropriate methodology as benchmark for deterrnining if the proposedFCRH of such Entity is reasonable.

(c) For applications filed pursuant to Section 3 of Article II, the ERG shallalso use the twelve percent (:12(%) Return on Rate Base (RORB)methodology or' some other appropriate metllodology as benchmark fordetermining if the proposed FCRR is reasonable.

Section 2. Rules for Setting the Subsidized Approved Retail Rate(SARR) ~ NPC-SPUG shall file an application with ERe for the setting of themaximum retail rate which customers should pay for electricity in QTP ServiceAreas. Based on this application, the ERe will establish the maximum

(

Subsidized Approved Ret~il Rate (SARR). This rate may be uniform throughoutthe Philippines, or may be established at different levels for different areas,according to the state ofclevelopmeni- of the areas.

Pending ERC approval of the NPC-SPUG Application, the SARR for aparticular QTP Service fl\rea shall be the ERG-approved and existing retail rateof the waiving DU.

Where the full cost of serving an area is higher than the SARR, an MESubsidy may be offered to the QTP operating in the area to allow it to viablyserve the same while charging no more than the SARR. In such cases,revenues from the SARR combined with the ME Subsidy should put the aTP inthe same financial position as if it was able to charge the FeRR.

\,

Section 3. Rules for Setting the ME Subsidy. - Consistent with theNPC-SPUG filing for UC-ME for Delegated NPC-SPUG Areas as provided forin ERG Resolution~No. 11, Series of 2005 entitled "Guidelines for the Settingamj Approval of Electricity Generation. Rates and Subsidies for MissionaryElectrification Areas," the following requirements and procedures shall befollowed--in the submission, evaluaition and approval of the UC-ME for OTPareas.

(a) Periodic Fiiino ..~~. or befJre September 30 of every calendaryear, NPC-SPUG shall file its, application with the ERC to set the UC-ME sufficient to cover the ME Subsidy estimated requirements for NPC-SPUG, inclUding the amount needed to .sufficiently cover tile MESubsidy requirements of QTPs.

In its decision, the ERC shall specifically indicate the amount, expressed, in Peso per ~<i1owatt-hour, allocated for QlPs.

(b) Quarterly' True ..Up ,Adjustments. NPC-SPUG shall file aquarterly application, if necessary, with the ERC to recover any shortfallin the ME Subsidy' caused byfactors such as:

(i) Collection shortfall;

(ij) Adjustments in the FCRR; andI

(iii) Other analogous cases.I

(c) Administration of ME Subsidy. NPC-SPUG shall establish aseparate trust account wherein all UC-ME transfers allocated to QTPSfrom the PSALM administered Special Trust Fund will be deposited. This .bank account will be governed by a set of predefined rules. Theadministrator of the account will make disbursements to the OTPsaccording to such rules. The transfer rules from the AccountAdministrator to tile QTPs will also be defined in the SDA signed by theQTP and NPC-SPUG. I

I

(d) Reconciliation of Actual UC"ME. On- or before the first quarterof the calendar year, NPC-SPUG shall reconcile all amounts receivedagainst all disbursements. made for the previous year. If thereconciliatiort results in NPC having surplus funds, the amount of the MESubsidy for the year shall be adjusted accordingly. Conversely, if thereconciliation results in the NPC-SPUG experiencing a deficiency, NPC-

.SPLJG .shall be entitled to file an application for an increase in the MESubsidy to coverthe shortfall~'

. "\

(e) Priority in the UCm~H:! The Missionary ElectrificationDevelopment Plan (MEDP) shall indicate the priority or allocation amongthe UC-ME supported activities. In any event, QTPs shall be pari passuor equal in priority with all NPPs in Delegated NPC-SPUG areas whichrequire ME Subsidies. However, small QTPs which are identified in the.MEDP shall enjoy higher priority on the provision of subsidy over largerQTPs and >NPPs.

(f) Automatic Adjust.rnent to UC-ME. If as a result of factorsoutside its control, NPC,.SPUG is unable to file an acceptable UC-MEapplication for Delegated NPC-SPUG Areas and/or QTPs beforeSeptember 30, or Ithe ERC is, unable to issue a UC-ME Decision beforethe end of the Calendar Year, the UC-ME approved by the ERG for theprevious calendar year will be automatically adjusted based on thefollowing formula and events: '

:=: Forthcqming year:::Current year:= UC-ME (PhP/kWh) approved for the current year

II

If NPC-SPUG fails to file an acceptable UC-MEapplication with the ERC before September 30 of thecurrent year:

:= 0.5 when t := 2006:= 0.6 whent :=: 2007 !::: 0.7 in all other subsequent ye1ars

If ERG is unable to issue a UC-ME Decision beforeDecember 3'1 of the Current Year: ,

:.::1.00. '

UC1I1E, :f= UC}v1EH x A~Where:

tt-1UCMEt-1AFt

"~

Nothing in this provision sllall be construed as allowing the reduction inthe subsidy allocation of small QTPs as identified in the MEDP.

Section 4. Rules for Adjustiij1g the FCRR and the SARR. - The FCRRand the SARR for a orp Area may be adjusted as follows:

•.... -- .J)

~:

}

(a) The FCRR may be adjusted automatically on a monthly basis by theaTP to reflect changes in the price of fuel, foreign exchange rates orother input costs, in accordance with tile Retail Rate adjustment rulesset out in tl-~eelSe fQr that Area.

I (b) J~fter a per,iod of time, the ERG may undertal~e a review of theS/\RR, to reset tllf, rate at a new level. Increases in the SARR may bemade to:

I

(i) Directly reflect increases in the FCRR; and

(ii) Reduce the amount of the subsidy required.

Article V

Misceilan~ous Provisions

Section 1. Nothing in 1:118seIRules shall be construed as to limit theautho.rity of the DOE to declare what Unviable Areas, regardless of whether ornot the concerned DUs waive such areas, shall be open for participation by(,)TPs under Section 3, Rule 14 of the EPIRA-IRR

Section 2. Consistent with Section 5 (a), Rule 14 qf the EPIRA-IRR, incase the DU fails to provide electricity to an Unviable Area, or if such servicemade available to the area is not comparable to the service provided to the restof the DU's franchise area, and such DU refuses to waive said Unviable Areafor inclusion in DOE's OTP Program, the ERe shall, upon petition by anyaffected party or on its own initiative, after due notice and hearing, endorse theUnviable Area to the DOE for inclusion in its OTP Program and require the DUto execute a Waiver Contract with the QTP chosen in accordance with theDOE's CSP to provide Electricity Service in such Unviable Area.

Section 3. The EHG may ekempt the QTPs from its requirementsimposed on generation companies and distribution utilities on the grid as itdeems appropriate. I

Article VI

Separability

If for any reason, any section of these Rules is declared unconstitutionalor invalid, the other parts or sections hereof which are not affected therebyshall continue to be in full force and effect.

)

\,

Effectivity

1 These Rules shall become e~ective fifteen (15) days after its publicationin a newspaper of general circulatibn or filing thereof with the Office of theNational Administrative Registrar at the University of the Philippines LawCenter, whichever comes earlier. I .


~~--/ RODOL¥~.~lBANO JR. I

.-/ C(airman , _~o4;:UTAUD ~~~Ei~~£o

/ f~~~,ss,oner Commissioner

o~~.~o ~-jJRAtfF A. TAN ~--"Commissioner Commissioner

FCJ/QTP HULES

}

'13



RESOLUTION NO••••.0_4__ , Series of 2008

A RESOLUTION SETTING THE INSTALLED GENERATING CAPACITY PERGRID, NATIONAL GRID AND THE MARKET SHARE LIMITATIONS PER GRIDAND THE NATIONAL GRID FOR 2008 PURSUANT TO THE "GUIDELINESFOR THE DETERMINATION OF INSTALLED GENERATING CAPACITY IN AGRID AND THE NATIONAL INSTALLED GENERATING CAPACITY ANDENFORCEMENT OF THE LIMITS OF CONCENTRATION OF OWNERSHIP,OPERATION OR CONTROL OF INSTALLED GENERATING CAPACITY

UNDER SECTION 45 OF REPUBLIC ACT NO. 9136"~J

WHEREAS, pursuant to Section 45(a) of Republic Act No. 9136 (EPIRA)and Rule 11, Section 4(a) of its Implementing Rules and Reguiations (IRR), theEnergy Regulatory Commission (ERC) formulated and adopted the Guidelinesfor the Determination of Installed Generating Capacity in a Grid and the NationalInstalled Generating Capacity and Enforcement of the Limits of Concentration ofOwnership, Operation or Control of Installed Gene~g Capa~;

WHEREAS, the subject Guidelines took effect on 22 February 2006;

WHEREAS, under Article II, Section 3 of the said Guid~lines, ERe set the2007 installed generating capacity per Grid, National Grid and the Market ShareLimitations per Grid and the National Grid as per Resolution No. 20, series of2007 dated July 11, 2007, as follows:

Grid Installed Generating "'0 Market Share Installed GeneratingCapaclty(kW) Limitation as per Capacity Limit (kW)

RA9136

Luzon 10,867.220.00 30% 3,260.166.00

Vlsayas 1,506.540.00 30% 451,962.00

Mindanao 1,867,250.00 30% 560.175.00

National 14.241.010.00 25% 3.560,252.50

WHEREAS, the foregoing installed generating capacity per Grid and.National Grid and market share limitations determination shall be adjusted by theERe on or before the 15th day of March of the succeeding years and/or as oftenas may be necessary.

. WHEREAS, there isa need to publish the adjusted installed generatingcapacity ~r Grid and National Grid and market share limitations per Grid andNational Grid set by the ERe for 2008;

/'

/WHEREAS, as part of its monitoring activities, the ERC finds that no

generation company nor any other entity has violated the market sharelimitations per Grid and National Grid for the year 2008;

NOW, THEREFORE, pursuant to its mandate to promote free and faircompetition in the generation and supply of electricity to achieve greateroperational and economic efficiency and to ensure consumer protection andenhance the competitive operation of the markets for generation and supply of .electricity, the ERe RESOLVED, as it hereby RESOLVES to set the 2008installed generating capacity per Grid and National Grid and Market Share.Limitations per Grid and National Grid. The same shall remain and shan bestrictly enforced and implemented until the next adjustment thereto which may beon Or before the 15th day of March of 2009 and every year thereafter and/or asthe need arises, as follows:

Grid Installed Generating 0/0 Market Share Installed GeneratingCapacity (kW) Limitation as,per Capacity Limit (kW)

RA9136

Luzon 10,060,904.00 30% 3.018.271.20

Visayas 1,637,270.40 30% 491,181.12

Mindanao 1,703,348,00 30% 511,004.40

National 13,401,522.40 25% . 3,350,380.60

. This ResOl~ion and the Appendix "A" hereto attached and made as anInte~ral . part of thiS Resolution shall take effect immediately following theirpublication in a newspapet of general circulation in the Philippines.

SO ORDERED.

Pasig City, March 12,2008.

(On Official Travel)JOSE C. REYES

Commissioner

(On Official Travel)RAUFA. TANCommissioner

2008 Appendix "A"

10.060.904.00 KW~\:~~;~!~W~:i~;~~.;:d+~ii~::::~{.}~::~~~:;H~~?~~~i~{~:~?~~}f:;'~""'}.

1,100,146TOTAL

:1'f?lif'Cti_1111l.\:llliii~1_1AngafHEPP 9 Norzagaray,Bulacan Hydro 246,000 246,000nWi GPP 5 TMi, Afbay Gedtlermat 330,000 140,250MaK-San GPP 10 91in,lAgu'Ia Geolhermal 410,000 308,750Bae-ManGPP 4 Bacon. Sarsogon G8ClII'IermaI 150,000 36,320

C"..afacaCoal I & 1\ 2 ca~, Oaransall Coal 600,000 282,056MarI&InIC1CCOiIII & II 2 MlI$lnfoc,Zambalss Coal 600,000 86,770Navotas' (onPl'e6ervatlon6falUS) :3 Navofas, Mllfl'O Manlla Diesel 210,000Navotas II (on oreserYlIflon $latus) 1 NavoIas, Metro Manila Diesel 100,000

AmtIl_o HEPP (malhballed) 75,000

2)21.000

1234

56789

-~f~::.1 KEPCO lIij8n Corpotation I"an, Ba1angasCI!Y, Batangas NatlKal Gas

1 1,271.000 1,200,0(102 Umay Combined Cyde Llmay, Blltaan Blended Fuelm

8' 655,535 614,$53 TeaM Pagbllao Corp, J$l.IIGrande, Ibclbang Pdo, ~

2 Pagbllso, Quezon 764,000 735.0004 TeaM Sual Corp P~n,Sual, Coal

2 Pangaslnan 1,294,000 1,218,0005 51.Power Corp. (fONml1y ENRON Power Sullie Say Freeport Zone, Bunker CJOieseI

Cotp.) t Ofonaapo City 120,000 116,0007 HEOCOR (Nc:JIthemMilJi.HYdro PP .• Sakul) TUbs, nogal, I.e Trinidad, Hydro

13 Bakun, all i!l8en1JJ8t 30,150 30,1508 CBKBolocan 3 Bakya, Majayjay,laQ!JI'l8 Hydro 23,000 22,2539 CBKCsllraya Bagong Silang, lLmban, Hydro

40,000 35,7712 L~lS

10 CSK Kalayaan San Juan. ~8n.l8guna Hydro739,240 734,6184

11 CE Casecnan Water and Ener9Y C~, Pelaway, A1tOl'lllOCastaneda. HydroInc. 2 NuevaEdja $65.000 150,000

12 San Roque Power COrporatIOn IAwer Agoo River. San Roque, Hydro

3san Manuel, Pangas;nan 411,000 4".00fl

13 KEPHIlCO (Malaya TPP) 2 Mataya, PK'IIia,Rial 8unket'OI 650,000 650,000

'~'; 14 Bauang Ptlvl.lte PDIWt'Cotp. Km. 255, Payocpoc Sur, BI.flkerC21 9auang, La Unioo 235.200 225,000...

"15 luzon Hydra CorporaIlOl'l (HEOCOR) ~plI,AmiIongan, ArJlem, Hydro

!. 2 IIot:cGSur 70,000 75,23&..; Binga 4 IIllgD1\ BerJgUet Hydro 100,000 99,590

ITOTAl 8,588,125 G,a17,156

::'';.\In/~:fiu'owned:lp.R$'r3hd':'Ofhei'Ip.p..#il}mMhi:tr.:?{:t'i;::f,:.'Hjr)}~:tY;:\<~%.}.1)':~)i~0'.

1 FGPC<lrP. 2 SIll. Rita, aalangas City Nal~a1Gas 549,100 504,3172 FIfSt Gall Power CorD. 4 SIs, Rfla, 8ataJl9llS City Natura/Gas 1,000,000 992,18'"15 ~e1e8 Power, Inc. Angeles Incluslmt Park (SEZ), Oiesel! 9mIWr C

80, CahtilJlblA, Bacolor,5 Pampanga 30,000 27500

6 Quezen PONer PhilS. Ltd, CaglIlay.1, Mauban. Queton coat Them1Q11 511,000 511,000

7 Taltal: Power Con:lcJnItlOn 3 sto. NitlO,Tal1se 9UtlkerC 18.900 18,6008 FlrlltC8banatuan VentureaColp. Mampulog, 9Ilas, Cabana!uan BunlIerOlJ

4 City 2!i,6OO 25,6009 Trans-ASla Power Gel'llllllllCll corp. Meticlle. l~garay, 8ulacan 8tIlker C!Di8set

1 52,000 50.000..', 10 NorthWInd Power Cor!loIafkln 15 9angut,lIocos NOrte Wind 24,750 24,750' ... ~.11 INEC-Agua Grandi: MlnI+tEPP 4,550 1,820

I 12 B1cclHyd~ Corporation 3 Panlcull(l()n, Mega ClIy Hydro 960 960r- 13 P.ngeIes Eledm: CoIparat'1OIl PulUngMalDguI, Angeles City Diesel! Bu1ker

5 9.260 6,90014 Cawayan f1EPP (SCREeO II) t Guinlajon, Sorsogan City HydlO 448 44815 Batll HEPP (People"s Energy Servicea, Inc.) BlIli, Camlllines Sur Hydro

1,800 1,80016 PNOC-EC san Antonio, Ed1ague, l~beIa NaluralGas

1 3,200 3,20017 ISElCO J (Magaf A 8.e MHpp) 7 Vllla 8eIIran, Ramon. lsabela Hydro 2,520 2,52018 Arm Gen HydrO PC'INerCotparlIlIan

3 Panlabangan. Nueva Eqa Hydro 112,000PartabanlJan and MaslWavHEPPJ 112,00019 SN AboiflZ Puwer Corp. (Magat HEPP) 4 ~.gulnlIIdo, RlIIJIQ), raabela Hyd/Q 360,000 360,000

TOTAL 2,708.088 2.643,802

fNSTALLEP CAPACITY (LUtON 6RJD) 10.068,904 KW

: .~.

Li:).NPC'e>w.",e.da.1,6~7,270.40 ...KW

1 Amlan 2 Amlan. Negros Oriental Hydro 8002 Palinpinon GPP P"laSan. Vatancia. Nt9'os GeGfhermal

3 onerllBl Sleam 112,5003 Palinplncn IIG?P Sitlo~$"', 'PdIagan. Geothermal

4 VaIOncla.NegItlS OJlental Steam 02,5004 LeyleGPl" lIm-ao.l<ananga, Leyte Geothermal

3 Sleam 112.5006 Sohal DIesel PP Oampas, TagbjIanJn CllY. Bunker & Diesel

4 8dloI 22.0007 PanayOPPI TInoc:uan.Dingle. lJojjo Blllker & Diesel

5 36.5008 PanayOPPIII lTinocuan. DlngIe. Iloilo Bunker & Diesel

4 108.0009 PIM'el" Barge 101 Muelle 08m8na, lapu.l3flU 1~IiaIFuel

'."'- . .. Clly Oil 32.000. . .J:~O Power Barae 102 4 Obrero. I/oio City 8Uhker 32.000)'-11 PONllTBarge 103 4 901ongan. Estaneill, Iloilo Hsavyluel 32.000:I TOTAL 600,800

400

106.440

79.940

103.850

18.500

19,640

45.150

30,400

24.00010,000

431.320

Colon, Naga. CeblJCofon, Naga. Cebu('.oIon, Naga. CobUMahan~. Toogomn.OrmocCllyUIJl.ao. Kananga, Leyfe

1 Nags Coal I and II (CTPP-SalCon)2 Naga DIesel I (COPP.Salcon)3 Land Base Gas Turtlirle (SaIcon)4 PNOe-Mahagn&gdong (JormetIY ce 1.1JZOn

GP Company. Inc.)5 PNOC-EDC q.Jpper Mahiao)

6 PNOC MlIIi1bog<fcnYlellY Vlsayas GPCOmpany. Inc.)

7 Ormal Leyte Co. LId. (OlCL)

262

4

4

3

Coaf. B.BJker-eBunkerCDiesel Oilr3e<1hermalSlea"" DIeselGeothermalSteam

Malitbog.TOll9Onao, I<ananga. GeolnermalL.,yfe SteamPNOC.£OC Geothermal Ge~hermalResetVl!lIon Area, Tongcnan, Steam.eyIe

109,300

37,80055.000

200.000

132.000

232.500

53.900

95.800

36.00054.000

182.000

129.860

233.9CO

53,900

TOTAL 820.500 785,460

VECO Compound. EmIilll,10 cetlu CIty &6IJ(erC 73.000 70.0004 lbo, MEPZ 1, lilflU"IapuCily Bunl<erC 50.000 49,600Sanl) and S~. loledo City.

8 Cebu Bunker CI Coal 134,150 112.4001 Janopol, Ballllhan. Soflol Hydro 5.000 5.000•• 9atTaJ, Calbayog City HydtO 1.080 1.0M.• Glm luna St., IloiloCity lSFO (8Jmkel') 18,580 18.580

UnidO$,Naball. Aldan; Mabilo.4 NewWashington. ~.kIan ieutj(erC 35.000 35.000

7 Barlli.Cebu; Bac:tial'l,CebU Hydro 1.720 1.720

3 GDlozon, l.aboc, Bdlol Hydro 1.200 1,200

2 CalmOll,51Bernard.SoulIterJlleyt&Hydro~O 540

llrgy. ""001, llago CI1y.~1lIBI Gedhermal 49,370 49.370

6 8rlJ)'./npe. La Padoto Oil 69.000 69.000

439,240 .'3.490

1,637.210 KW

TOTAL

INSTALLED CAPACITY {VISAYAS GRID)

SOlECO (Hena11lat1MHPP)

PNOC-EOC NNGP

Pe~ PaNer CO.

CEBECO I (Mantayupan. MatutlnaO. Basa)

lObOCHEPP (Sta. Ciafa PoNer Ccrpomticn)

Be» lEeo I - Janopol MInl.HEPPSAMELCO I - Ton-clkMIllI-HEPPPansy Electric ccrp. (PECO)Avon Rlvor Power HCkllngs Corp.

CebU Prtvafe PaN8r CorP.

I:ast ASIa UlUitieS corp .Toledo flower corp.

9

8

4567

10

11

... 12

/.

~'"

~;;':';;iil;:'buOWried iPPii.And:c.thedPP. •. ::,::- :: C:.~;:(:-:i\<:.«.~\~(;:.I'::"'~!:J"~ 1V"".. 23

-- -_._---------------------

1,703,348.00. KW. f~l@~t~%;

11 DieSe119urfter 62,700 54,t>OOPower 9argo 104

4 DIesel/Booker 32,000 24.!iOO

4 Ague 1 HEPP 2 HydrO 80.000 80,000

5 Agust 2HEPP3 ~ 180,000 180,000

.6 Agus4HEPP 3 Hydro 158,100 148,730

7 Agus5HEPF' 2 55,000 54,0008 Agus6HEPF'

5 200,000 160.320

9 Agus7HEPP2 54.000 47,750

10 PtnnguilV 3 255,000 190018

TOTAL 1,076,800 940,798

1 PowerBargs117 1 Nasipit, AglISllIl del Norte Heavy Fuel Oil 100,000 100,()I)(J

2 PowerBarge 118 Maca, Cbmposlela Valley. HeavyFUlllO~.- 1 Agusan det Norte 100.000 100,000

L :3 Westem Mlnda/lllO PONer Corp. B\I\Cker.c"': ~~"t 10 Sangall. Z8mbo8nga CilY DIeSel 113.000 100,000

t 4 Southern Phlllpplnes Power CCIP. 9lJ'lCker-e6 Baluntay, Alabel, S8rangani Dlosei 55,000 50,0110

() Mindanao I G8Uthe!ll\lli PortnelStllp MInd8Il11O(M!. Apo) GedhermalGeclhormal Reservallon, SteamKidaPilwaIl CllY,Nortt,

1 Cotab8lo 54,240 54.2406 Mindanao" Geolhermal Psrtnemnlp MIM8n8O (M!. Apo) Geolhennal

Qeothermal Reservetlon, SleamKillapawan ClIY,NOrIh

1 COfabalo 54,240 54,2407 Mindanao Coal (STEAU SialePowcr Inc.) Balacanas. Villanueva. Coal

2 MilIIIIlliSOJIeroI8I 232.000 210.000

TOTAL 70M80 668.480

J.$J.ij~~.~!fiHijJaf!p.llt!mli~fP_1¥rff~W'i¥~$.WJ.iwliW@~m~~.~~Je.~~1 Mindanao Energy Syletrni. Inc. ITal:Jlon,c.gayetl de Oro ClIY, e'lllkerC

1 MlSamis Ollental 18,900 18.900

2 Bubunawan Pewer COmpany (BPC), Inc. Hydro1 1mb8h~, Baungon, Blj(ldnon 7.000 7.000

... 3 CEPALCO (Solar PhofCl\lOllste) SOlar.~'

1 Indallag, <;:agayan de oro CIty 950 950

l' 4 DAUGHT • 9ajada PC7MlrPlant Bajada, Davao Ci1y DIeSel! Bunker12 blended (sr-o) . 53,470 53,300

~(; FG Bukidnon Power Cotporallon (AgUSllO OamJag. Manao Fortk:h, HydroMIni-HF-PP1 2 8ukidnon t.800 1,600

6 CotabaJo Ugttt anti Power Company 6 SillSIIlII Ave.•CaIbto Cit! DiesdI8unIter 9.1l6O 7,850HEOCOR (Talamo MHEPp) Tugbok Dist , Pequeno, Hydro

7 5 lean". Davao Cily .4.470 4,470TOTAl 91,980 94.070

INSTALLED CAPACrrv (MINDANAO GRID)

.If 11lJ1J.!IIl1lll II FUUI.IILIIU" II ..~1'!f11,703,348 KW

13,401,522.40 I<W

J1A It'I ;UVV



53RESOLUTION NO. .,Series of 2006

A RESOLUTION INITIALLY SETTING THE INSTALLED GENERATINGCAPACITY PER GRID, NATIONAL GRID AND THE MARKET SHARE

LIMITATIONS PER GRID AND THE NATIONAL GRID FOR 2006PURSUANT TO RESOlUTI9NtJO. 14, SERIES OF 2006 OF THE ENERGY

REGULATORY COMMiSSION

WHEREAS, pursuanf to Section 45(a) of Republic Act No. 9136(EPIRA) and Hule 11, Section 4(a) of its Implementing Rules and Regulations(IRR), tile Energy Regulatory Commission (ERC) formulated and adopted theGuidelines for the Determination of Installed Generating Capacity in a Gridand the National Installed Generating Capacity and Enforcement of the limitsof Conce.ntration of Ownership, Operation or Control of Installed GeneratingCapacity;

WHEREAS, the subject Guidelines took effect on 22 February 2006;

WHEREAS, Article II, Section 3 of the said Guidelines allowed theERC to initially set the installed generating capacity per Grid, national Gridand the market share limitations per Grid and the national Grid to be adjustedby the EHC on or before the 15th day of March of the succeeding years and/oras often as may be necessary.

WHEREAS, the determination is based on the maximum capacity of .the power plants as submitted by generation companies and other entitiesthat are required to submit reports under oath;

WHEREAS, under Article III, Section 1 of the Guidelines, the ERGissued Resolution No. 14, series of 2006, requiring generation companies andother entities to submit a statement under oath containing a list of informationrequired thereunder;

WHEREAS, there is a need to publish the installed generating capacityper Grid and national.Grid and market share limitations per Grid and nationalGrid set by the ERC for 2006;

WHEREAS, as part of its monitoring activities, the ERG finds that nogeneration company nor any other entity has violated the market sharelimitations per Grid and national Grid for the year 2006; .

NOW, THEREFORE, pursuant to its mandate to promote free and faircompetition in the' generation and supply of electricity to achieve greateroperational and economic efficiency and to ensure consumer protection and

~uy

f.:?

Resolution No. )) I series of 200629 November 2000--Page 2 of 2

enhance the competitive operation of the markets for generation and supply ofelectricity, the ERC RESOLVED, as it hereby RESOLVES to set the 2006installed generating capacity per Grid and national Grid and market sharelimitations per Grid and national Grid. The same shall remain and shall bestrictly enforced and implemented until the next adjustment thereto which maybe on or before the 15th 'day of March of 200l and every year thereafterand/or as the need arises, as follows:

)

J

~Grid-- Installed Generating Capacity % Market Installed(kV\t) Share . GeneratinglI limitation Capacity

as per RA Limit (kW)-_ ..._ ..._-----'--- - 9136

.__ ._---------.----_.- --_ .._~~--- -'---

Luzon 11,768,458.00 30% 3,530,537.41.

Visayas 1,579,006.00 30% 473,701.80

Mindanao 1,868,130.00 30% 560,439.00

National 15,216,594.00 25% 3,S03,89S.5f

This Resolution and the Appendix "A" her-etoattached and made as anintegral part of this Resolution shall take effect immediately following thepublication in a newspaper of general circulation in the Philippines.

SO ORDERED.

)J MACB~ k-,/

""m"c",!II~111'100,000

,246,000'100,000

12,000

:360,000

277,000357,800 .

1,10,000

fOOD, 000

600,000

~10,OOO

:100,000i

:(092,800

100,000

246,09.°100,000

12,000

360,000

330,000

.__ 410,000

150,000

600,000

600,000

210,000

100,000

75,000

3,293,000

Appendix "A"

TOTAL

1lBinoa.j'

4 logon, Benguet . Hy( ro

2 Angat HEPP 9 __ Norzagar:=.y, lJul?c~ __ ~:o3 Panlabangan HEPP ~_ Pantabangan, NF- Hydro

4 Masiway HEPP 1 Pcanlabangan, I\lE Hydro

~ M2m!t HEPP 4 iJ\guinaido, Ramon, Isabela Hydro

~ Tiwi GPP ._ 5. Tiwl, Albay _.L ~.eolherlT1a.17 Mak-Ban GPr 10 Bitin, Laguna : Geothermal

8 .'?-~c-ManS?~ ~ ..__ ~2 sorso~~__ Geothermal_~~~ca Coal I & It 2 C,ataca, Balangas Coal ,

10 Mansinloc Coal I & II 2 Masinlac, Zambales Coal

~ Navalas I 3 ~~avolas, Metro Manila Diesel-- ,.,

~. Navolas II ~', 1 Navolas, Melro Manila Diesel

X' 13 I\mbuldao HEP': (molhballed)

::::'.,.

.!~

'41'1,0.9.2-

..~~~

t165,OOO

;235,200

L_6~306,7J9

~~; 21,441,.

'~~

~7~~

~._--

.v~_r55,535

.~\~~;116,000120,000

235,000

70000

165,000

411,000

650,000

1,294,000

64,200

6,483,675

81,900

23,000

40,000 \

/"'73~,;40 ~,,/

Coal

Blended Fuel Oil

Coal

Bunker C/Diesel

Hydro

Bunker Oil

Bunl<erC

Hydro

Hydro

llijan, Balangas City, Balangas Natural Gas

Tuba, Itogon, LaTrillidad,13 Bakun, all in 8eriguet

3 Bakya, Majayjay; laguna

Bagong Silang, liumban,2 Laguna

San Juan, i<alaYilan, Laguna4

:

;

Pelaway, Alfonso Caslaneda, Hydro2 Nueva Ecija

----- lower Agno Rive'r, San Roque, Hydro3 San Manuel, Pa~gasinaf1

2 Malaya, Pililia, R!zal

I<m. 255, PayoC)Joc Sur,21 Bauang, la Union

Pilpil, Amilollgan; Alilem,2 1I0GOsSur

:.f,

''',

'.;

TOTAL

11 CE Casecnan W~L.9.o.Q..£nergy Com.R!W.Y..•...Inc, tc;\)

12 2£\nB.Q911£ Power CorporatiQD . ~\:l'

13 I<:EPHILCO (Malaya TPPl

14 [email protected] Plivate Power C2fJ.!,

15 !-uzon Hydro CO[Qoration (HI;PCOR) (!~)16 Edison (Bataan) Cogeneration (ceased

operalion)

Lirnay, Balean8

Isla Grande, Ibabang Polo,2 Pegbilao, Quezon

Pangascasan, S(j~I,~ __~ Paf:.-gasinan i

5 Subic Power Corp. (formerly ENRON Power Sublc Bay Freep\x\ Zone,Corp.) . I{-: 1 Olongapo City

6 Magellan Cogen Inc,(ceased operation on .June 30,2006)

----:; HE~OFUNorthe[n MinHJydro PP~.9.illJI!)

~ CSI'\ Bolocan

9 CBI'\C1ilifID'..e

i

San Antonio, Ecliague, Isabela Natural Gas1

:~~~f

:511,000

~ 18,600

"133,380

~'--,~,~,995,464:. --

H~f!.!~.f 24,750

L~~J~, 6,900

i 448-~i. 1,800

3,200

",2;~~1Jv/~ ~

1,800

25,600

9,260

448

30,000

52,000

24,750

4,550

960

511,000

18,900

109,000

133,380

500,000

1,000,000

3,2002,424,848

Bunker C

Diesel! Bunl<er C

Natural Gas

Natural Gas

Bunker C

Wind

Coal Thermal

Hydro

Diesel! Bunl<er

Hydro

Hydro

3 Panicuason, ~Iaga City

Pulung Maragui, Angeles Cily5 !1 Guinlajon, Sorsogon City

Buhl, Carnarines;Sur

2 Sla. Rita, Balangas City

4 Sla. Rila, Batangas City

G/F PFDA Bldg) NavotasFishport Cornple~, Navola:;;,

17 Metro Manila '

G!F PFDA Bldg) NavolesFishport Comple~, Navotes,

25 Metro Manila i

An~Jeles Industri~l Park (SEZ),Bo, Calibulbut, Sacolof',

5 ParnpangaCagsiay.l, Mauqan, Quezon

1 ,

3 S10. Nino, Tarlec! Bunker C

Marnpulog, Silas: Cabanaluan Bunker Oil4 Cily f

Malictlc, Norzag,~ray, BuJacan Sunker C([)iesel'1

15 Bangui, IIocos N.prte

TOTAL

7 Tarlae Power COlJ2Pration8 First Cabi\[ljlJuan Venlures CQ[Q.

1 FGP Corp,

2 Firs~ Gas Power Com,

3 Duracqm Mobile PoWS!Lll~.!IlQ.orarilY.ceag,gQJ2era!lQnson 13 J.!dlY...LOQID

9 Trans-Asia Power Generation Corp,

4 s.9~ia Diesel Power Cor[d!.~~ceased o.llilliillons on.J) ..J.!d!!t' 2006)

5 Angeles Power Inc.

6 Quezon Power PhUs. lid.

14 Cawayan HEPP (SORECO II)

15 Baril HEPP (People's Energy Services, Inc.)

10 Norlhwind Power Corporation

~2 INEC-Agua Grande Mini-HEPP12 Bicol Hydropower Corporation13 Angeles Electric Corporation

1,579,006

......

CE i::c::

1 Amlan-------_.,2 f.'.ilI1DPLnon G.f.'.E.

\. 5 Panay Modular opp (inoperational)

6 Elm.ol Oi~~LP.E.

7 n, ,,' nn<., I

8 t:..'ill.9Y..QPJ?.JJl

,A.mlan,Negros Oriental Hydro _._----- ----.---2 800 --_._-~-Pul',agan, Valentiil, Negros Geothermal3 Orienlal Slearn 112,500 ___ .J!)8,.9~

Silio f'.j~wuji,PutJagan, Geothermal4 Valencia, Negros Orienlat Steam , '112,500 __80,000

f. \..i'i'Jl-ao,I<ananga, Leyle Geothermal3 Steam 112,500 1:~~

Dampas, Tagbilaran Cily, Bunker & Diesel ----4 Bohol 22,000 •.....:12,000

Tinocuan, Dingle, lIoi16 Bunker & Diesel5 36,500 ~Tinocuan, Din~Jle,Iloilo Bunker ,', Diesel

108,000

600,800

53,900

.~.9,0~~

820,~2Q...L.....--~Ii, !~

--109,300 109,30037,800 3~,OOO55,000 :~

200,000_~2,900

132,000_S9,320

232,500232,500-----

Industrial Fu~

"-

2

6

2

~-_.Muelle Osrnena, Lapu ..lapu

City _--,-__ Oil 32,000 32~~obTero,.:~?~~_ity __ . ~~~ ~2,OOO __ ._ 3~~8otongan, Eslancla, 11011.0 Heavy fuel 32,000 .~

"-.5(J3,l~

C~lSJO, Naga, Cebu Coat,Bunker-c--

~~ Nagil, Cebu Bunk:~Colon, Naga, Cebu Diesel OilMahanagrlong, Tongo-;"an, GeothermalOrrnoe Cily Steaml DieselUm.ao; I<ananga, Leyla Geothermal

SleamMalilbog, Tongonan, Kananga, GeolhermalLey!e SteillllPf'./OC.EOC 8eolhermsl GeothermalReservation Area, Tong(man, Stearn

7 Leyte

•. TOT~ __ L '-- __

TOTAL

9 Power Barge 10"

--_.

- ----------10 Power Barrje 102'11 Power Barge 103

---1 1':199aCoal I and II (CTPP-Salconj_._-_._ .•2 ~a Diesel I (COPP.Salcon)

3 ~d ..Base G~~ Turbine t2~lc(?ll)4 CE Luzor&P COT.lliLiillY..J..of,.

-.--f------------- ..-.-._.-6 '{jg'Las GP CornpanyJD,"" l"..

/'

f--'- '--._------------_ ..VECO C6mpound~ErlTlita, ._--'j !&.12.tll'rival? Po\¥..erC.9ill

10 Cebu City 8unl<er C 73,000 70,0002 East Asia Utilities CorP. '1 lbo, MEPZ 1, L.apu.lapu Cily Bunker C

..-:--50,000 49,600

Sangl and SilJPil, Toledo Cily,_ .•...•~

3 Igledo P~~..Q.Qru,8 Cebu Bunl<er Cf Coal 134,750 '125,000

4 BOHECO I • .lanorol Mini.HEPP 1 .lanopol, Balilihan, Bohol Hydro 5,000 .5,.9~5 SAMELCO I • Ton-ok Mini-HEPP 4 Barral, Ca.lbay02City Hydro 1,080 -~~ Panay Eleciric Corp. (PECO) 4 Gen. Luna SI., 110iloCity LSFO (Bunker) 18,580 •___ . 8,609_7 f.l.von ~yer t:.ower I:l.9JdingsCorp"

Unidos, Nabas, Aklanj Mabllo,4 New Washington, Aldan Bunker C 17,500 17,500--'----_ ..

8 CEBECO I (r>..lantayupan, Malutlnao, Basa)7 Barili, Cebu; Sad ian, Cebu Hydro 1,720 1,720

9 Loboc HEPP (5ta. Clara Power Corporal Ion)3 Gol020n, Loboc,Hohol Hydro 1,200 1,200

- .-_. ----_._--TOTAL 302,830 279J~

180,000 ~?,OOO

158,100 158,100

55,000 55,000

3 &lI.!Ul:!EPP

46~2HEPP

5 Aqus 4 HEPP

6 Agus 5HEt:.E.

7 8Q!,ls 6 HEPE.

11 Mapalad, Dalipuga, IIlgan CityHolcim Wharf, liaiig, DavaoCity

Marawi CityPawak, Saguiaran, Lanao delSur.

Baloi, Lanao del Norle

Dituca.lan, lIigan CityFuenles:Maria Cristina, lliganCilyFuentes, Maria Cristina,lIigan

Diesel! Bunker

Diesel! Bunker

Hydro

Hydro

Hydro

Hydro

Hydro

62,700

32,000

80,000

200,000

~2,OOO

~O,OOO

200,000

9 Pulangui IV

TOTAL

Hydro 54,000

255,0001,076,800

~~,ooo?:?5,OOOro1'!l7:l,400- , 7----

1//, .. ' \.~)

;~10,OO<!..

_ __ ,,!!:,O,OOO

4,470

55,000

54,240

100,0~_

232,000

___ 113,000

Geoth~ -SIe8m

----_.Coal

1 PUNer 8arg0117

2 Power Barge 118

6 Mindanao I Geothermal Partnership

7 Mindanao II Geolher'mal Pilrtnershir

Nasipi!, Agusan deiM~ T{~WY Fuef"()jJMaca, Composteta Valley, Heavy Fuel Oil

1 Agustin del Norte 100,000 "100,0003 NQJJb.~J:nJillD.Q~~~---. 7 7 .' Illgan Ciiy--------- 8unl<-;;;r::c---- ---~,ooo .----J2,000_

--4 Yi~~l!lMjndanao Power COfp. 8uncker-C

.'J. 10 Sangali, Zamboanga City Diesel~ ..S-O-I-JtI-.le-rr-l-P-hi-lill-fL-lrL-e_-s_-E'.-9.":!.-.-e-r_.-~-,9..!I1-r-~-'-- ~-;--- ------------- i3LmcI<;r-C

8alunlay, Ala beI,.Sarangani Diesel

Mlndaliao (M!. Apo) GeothermalGeolllOrmal Reservation, Steaml<:icl13pawanCily, Narll!Colabalo

Mindanao (1vI1Apo)Geothermal Reservation,liidapavvan City, Norlh

1 Colabalo----. T1JgbokDis!., Pequeno, --.~iYd-;';-----'

5 Calinan, Davao CityBalacanas, Villanueva.,Misamis Orienlal

__ 8_10,950 i!9,950

950

...l~OOO

.,------950

7,000

18,900

Solar

15,215,594.00

Indal1ag, Cagayan de Oro City

Bajada, Davao ci\Y-- Diesell Bunker12 blended (SFO)

DarniJag, Manalo Fortich, -- Hydm8ukidnon .

TOTAL

1 Mindanao Energy Sylems, Inc. ---- ---- Tablon, Cagayande Oro cITY, Bunker C1 Misamis Olienlal------_._-------,--------

2 Bubunawan PovverCompany (8F'C), Inc.

5 EGJ;l_lJhkJD911£9.'!igrCorp.QLation(6g!!2[1_!J!Iini-HEPPl .

3 CEPALCO (Solar Pholovollaic)

fJi" action thereof of the Iincreased capital) Do____.0

NATUREINAME OF FEES lEGAl'BASIS FEESVI-A. For the issuance of Certificate, section 6. R~ A. 10.000 ; 00

I of Compliance (COC) to No~9136 ! ' {exclusive of:independent Power Produoers i actual cost for

I(for 5 years dur~tionl pursuant , technicalto the;standards ~et for, the I evaluation)generation. of electric pOWer. ;

VJ--B. For the issuance of certificate : Seelion 6~ R. A.of Compfiance (COC) to the No. 9136 I

owner of a self Generation,Facilities With the following I

aggregate ;instaJled ,capacity .(for 5 years duration) pursuant

i to Jhe standards :set -for file'generation of electric power~. , i

100 kWand below ! t,500- 00(exclusiVe 'ofiactual cost fortechnicalevalu3ttonl

I 101.•500kW 5,000: 00(exclusive of

I actual cost for

Itechnicalevaluation) .

I501 .•999kW 1.500, 00

(exclusIVe of I

! actual cost lorIteehnica1evaluation)

1 MWand abov,e 10.000 00(exclusive ofactual .cost for,

! ;technicalI

I, evaluation)!I

I I,

vn. FOR THE tSSUANCE OF section 6, 29 and Ii SUPPlIER'S UCENSE

J

I 43 (Pl, R. A. No.(for3 :years duration): 91.36 I

Ii

For each one hundred pesos , i 0 15of the capital stock subscribed :

I (or Php10,OOOand paid up. ' 00: I,.whiChever is

LIFELINE RATE consisting of the OPERATING EXPENSES component of thetesting fee will be applied to single phase meters brought into the ERe MeterLaboratory by waJk-inresidential consumers.

METERS brought Into the ERe Meter Laboratory by theWHOLESALERS/RET AllERS/DEALERS who are engaged in the business ofselling kilowatt-hour meters, will be charged the full cost of service rendered intesting and calibration of meters, namely: Salary Expense, Operating Expenseand Additional cost expense for the use of Special Testing Equipment (STE) inthe process.

7. TESTS OUTSIDE THEERC METER LABORATORY

a) SPOT "TEST OR FIELD TESTING SHALL REFER TO THETESTING, INSPECTfON OR CERTIFICATION CONOUCTEDANDMADE BY THE ERe OUTSIDE ITS METER LABORATORYlOCATED IN THE ERC'S HEAD AND FIELD OFFICES.

b) THE TOTAL CHARGES TO BE PAID FOR SPOT TEST OR FIELDTESTING SHALL BE THE RATE PER METER PLUS CHARGESEQUIVALENT TO ACTUAL EXPENSES (SUBJECT TOACCOUNTING & AUDITING RULES AND REGULAliONS)INCURRED BY THE ENGINEERING/PERSONNEL ASSIGNED.

XU. CERTIFtEO true copies of official documents :in the Php15.00/pagefiles of the Commission

~xm. OTHER relat~d documents (e.g. photocopies) Php2.,OO/page

I

./::i."" j •.

(;;"J~~ •.\'. -

The said fees ,shaD be paid' i higher)upon issuance of the'SuppIjer's Ucense.

VIII. FOR THE WESM METERING I SectiOn 2.2.2 and!SERVICES PROVJDER'S; 2.3.6 of 'the

iCERTIFICATE OF.' WESMRules

I AUTHORITY (CA) (for 3 years ::

duration):

For 'each one hundred pesos 0 75I

of the capital stoeksUbsaibedand paid up. (or Php10"OOO 00

whichever is!

higher)The said fees shall be paidupon application or renewed oftheCA.

IX. FOR THE WHOLESAtE, Section 30 of RA ;

AG'GREGATOR'S 9136 1JI

CERTIFICATE OF:REGISTRATION ,(fOr I

IPhP 10,000 00-4 yearsduration)

'x. FO,R THE RES 1M'ETiERING 'ERe :Case No.ISERVICES PROVIDER'S 2005-02 RM j

CERTJF'CATE OF: "-Guidelines for the •!,AUTHORITY (CA) (for 3 years :Issuance of' . ~...•.

duration): Ucenses to RetailI ElectricitySlU),p'fiers (RES),as;amended

For eaCh one hundred pesos 0 75of the .capital stodksubscn1ledandpaldup. (Qr Php10,OOO 00

whiChever isThe said fees shall be paid highe,~)u,pon~pplication or renewal of ;theCA. i i

I

XI. LABORATORY FEES, for the inspection and certification of watt-hour metersmade in the meter laboratory of the ERC are as follows: [Sec. 16 (f)and 40(h) C. A. No. 146 as amended and Sec. 43 (b) R. A No. 9136]

EQUIPMENT

ERe 'LABORATORY i FIELD TESTING ,RATES PER ONIT ADDmONAL RATE .PER. 'COST UNIT

Re.gulation ' Lifeline Rate for Programming of ' 'Utilities wi OT w/oFee1Wholesaler . Residernlalthe :Meter. If I Supervision and1Retaller1Deater. Consumers needed Regulationfeel

Fee wholesaler.fetailer:. dealer

//")1(

1. SfNGL'E PHASE I II

METER (e1ectrOl1ic"hybrid or Ferrari$)

a). 'Without demand 7(UJO 30.00 30.00I

lfedister I .

b) 'Wilhdemand lOO;OO iI 40.00\

reaisterc) WJfh .E;lectronic 130.00 150.:00 5O~OO

demand~alster,2- POLY-PHASE I I

METER IFerrarislPanelboard'f2 'Sta" i ,

I ;s) Without demand 180~OO 55.00mlllSter \

b) 'With demand :21'0.00 I .80.00_isler !

Ic) With .electronic 240.00 11,50-,00 "9S,OO

demand~ : I

iFenarisl Panel!BoanI.3Slaton

I a) Without :demand 230.00 90.00register I

Ib} WllhdemaAd I 260.100 I I1:00;00

.regiSter i "-I

~) With e'lec1ror1ic!

290.00 ; ~:50~90 115.00idemand register I j

3. B.EcmONIC :290.00I

350)00 I 11'5.00MET:ERIPP} i

I

4. !INTEGRAnNG 1,140-<00 350jOO .425.00PULSE METER

5. WATJHOURMETER i 290.00 350.00 115.00iSTANDARD ;

;

i 6. CURRENT 10,00 '30.00TRANSFORMERS "

14 OTHER II

M£T,ERlNG .290.;00 '350.00 US.OOII

I

I INSTRUMENT8. EVAlUAnONl '600;00 400.00

: Of HER TEST

METERS brought into the ERe Meter laboratory by the UnUTIES that arepaying Supervision Fees, will be charged only the OPERATING EXPENSEScomponent of fee in the testing and calibration of single phase meters, electronic

. meters (single phase and poly-phase) and other electronic standard orequipment If a Special Testing Equipment.(STE) will be used in the process, theADDITIONAL cost component of the fee wUllikewise be charged.

METERS brought into theERC Meter Laboratory by the UTIUTIESthat arenot paying Supervision Fees, will be charged with the full cost of the testingand calibration of single phase meters, electronic meters (single phase and poly-phase) and other electronic standard or equipment. -'

of electric utilities section 43 (b);

transmission companies (I) (k) and (s) R.and/or;n the regulatio.n ,or A No. 9136fixing of their rates.

For eaCh one hundredpesos or fraction thereof, of' 1 00 - -the capital stOCksubscnbed 'or paid. or

Sf ,no shares have beenissued, for each ,one I 0: 05 - -,

hundred pesos or fractionthereof of the capitalinvested, or of Ihe propertyand equipment whichever,

I I

is higher. I I

1

The said fees shan be paid: i

on or before September I I

30th of each year with ;a:penalty of fifty per centum ' , i

iin case of deUnquency; I ,~Provided, further, that if the i

fees or any balance thereof [

are not 'paid within sixty -,

days from the said date,Ithe penalty shall be !

increased one per ,centum;for each month ,ofdelinquency thereafter.

V. Permit Fee:

a) For the issuance or Section 4Q {f}. 0 '15 - -increase of capital stock ' 20 (e), C. A No.

!(for each one hundred 146pesos or fraction thereofof the increased ca,pitalstock) ;

b) For authorizing the Section 40 (g). 0 75 i0' 75

increase of equipment' C.A. No. 146 ,

the installation of ,new Section 43 ~p}.'units or authorizin,g 'the R. A. No. 9136 ,

increaSe ,of capacity orthe extension of means

Iof general extensions in j

the serVioe. (for each i1 one hundred !pesos ,or I

._--~._.. _--------- -_.-----

*The above sChedule of fees and charges is without p~udice to other fees andcharges that the Commission may impose pursuant to other rules anddirectives Issued.

the extension of means Iof general extensions inthe service

7. For authority to revise ! Section 19, 24, 700 00 10.000 00schedule of i 25, 36 and 43transmission charges. (u), R. A No.distribution wheeHng 9136.; Sectionrates/retail rate for 16 (cl, 20 (a),captive market and Public Serviceunbundling of rates and . Act {C. A No.functions : 146)

8. For authority to sell, : Section 20 (g). 700 00 5,000 00alienate, mortgage, C. A. No. 146 asencumber, or lea~ its amended;property, franchise, Section 43 (p),certificate, privileges or " R. A. No. 9136rights or any partthereof, merge orconsolidate its property.franchise, certificate.privileges or rights orany part thereof,

Itogether WithCPC/CPCN with anyother ublitv

9. Authority to issue or section 20 (e), 700 00 3,000 00increase capital stock 140 (f), C. A No.

1146II. APPUCATIONIMOTION section 8" E.O~ 700 00 I 700 00

for the Provisional Approval ' No. 112;of the above~entioned Section 44" R.App1fcationsIPetitions 1A. No. 9136;

j. Section 16 (el, 'i C.A. ,No. 146 as

amended. III. ANY APPLICATION other ' 700 00 3,000 00

than the above, Petition,' ,

and Complaint (other than i :.aconsumercompJaint) .• I

IV. Supervision and RegulationFee:

For annual reimbursement Section 40 (~) j

of the expenses incurred by: C. A No. 146 as :the ERC m the sUPervision: amended: .

)1\.k ·

li

REVISED SCHEDULE OF ERe-FEES AND CHARGES

FEENATURE/NAME OF FEES LEGAL BASIS With Without

Supervision SUpervisionFee Fee

1. APPLICATIONS fallingunder the provisions of thePublic Service Act (C.A. No.146) as amended, E.O. ~o.172 and R.A. No. 9136:

c} For approval or section 40 (a), 700 00 10,000 00modification of 16 (a) PublicCertificates of Public Service ActConvenience and/or (C.A. No. 146Necessity, licenses or as amended);permits of franchised Section 43 (p), ..electric utilities in R.A No. 9136accordance with law

2. For authority to recover Section 33,R.A .. 700. 00 10,000 00stranded costs by No. 9136distribution utility

3. For authority to recover Section 43 (q), 700 00- 10,000 00cost ,and return on ;R.A. No. 9136 - .

demand sidemanagement projects

4. For approval of any Section 43 (h), 700 00 3,000 00changes on the terms RANo.9136and conditions ofservice of the: "'(a) TRANSCO or

I ib) any distribution utilityI 5. For approval of Section 43f (i), 700 00 3,000 00

reappraisal of the R.A No. 9136;eligible assets of: Section 17 (e),(a) TRANSCO or _ Public Service '(b) any distribution utility Act. (C.A. No.

by an independent 146)8Doraisal comDanv

6. :For the authority to Section 40 (9). 700 00 5.000 00increase equipment, or Public Servicethe construction, Ad: .(C. A. No. I

operation and 146) ,installation of new units.increase of caoacitv or

TockNo Part

RAUFA. TANCommissioner

On Official TravelMARIA TERESA R. CASTANEDA

Commissioner

-~-----,..--_ ..-_._--_._--

Resolution No.21 Series of 2007Revised Schedule of Fees and ChargesPage 2 of2

and its attachment be furnished the Office of the' National .AdministrativeRegistrar (ONAR) and the NatiOnal Economic Development Authority.

Pasig Oty, July 17, 2007 .

.~tH~B.~~O.JRChairman

.~N ..~~ione-r--

J~SCommissioner

U(.. r;-fCCClrev fees.res.docp.'


San Miguel Avenue, Pasig Oty

Resolution No. ~ series of 2007

A RESOLUTION APPROvING THE REVISED SCHEDULE ..OF ERe F~ES AND CHARGES

WHEREAS, on August 22, 2002, the Energy Regulatory Commissionapproved the Schedule of ERCFees and Charges; ,

WHEREAS, recognizing the need to update the same, the Commissioncreated a Technical Working Group (1WG),under Office Order No. 35,.5eries of2005, to conduct the appropriate study and propose revisions to the saidSchedule of ERCFees and Charges, if warranted;

WHEREAS, after conducting its study, the lWG formulated andproposed certain revisions to the SCheduleof ERCFees and Charges;

WHEREAS, on November 24, 2006, the ERe conducted a publicconsultation on the proposed revisions;

WHEREAS, on June 12, 2007, the ERe conducted another publicconsultation on the second draft of the Revised SChedule of ERe Fees andCharges;

NOW, THEREFORE, the ERC hereby RESOLVES to APPROVE theattached Revised Schedule of ERCFees and Charges. .

Let copies of this Resolution, including its attachment be posted on theERe website and published in a newspaper of general drculation in thePhilippines. Rfteen (15) days after said pubUcation, the Revised Schedule of ERe

, . Fees and Charges shall become~k Rfthis Resolution

I

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