ResolutionNo.02 Series of 2010 Amended DSOAR 1

5/27/2018 ResolutionNo.02 Series of 2010 Amended DSOAR 1

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Republic of the PhilippinesENERGY REGULATORY COMMlSSlSan Miguel Avenue, Pasig City

RESOLUTION NO.02 Series of 2 1 dA RESOLUTION ADOPTING THE AMENDMENTS TO THEDISTRIBUTION SERVICES AND OPEN ACCESS RULES DSOAR)

WHEREAS on January 18, 2006, the Commission promulgated theDistribution Services and Open Access Rules (DSOAR) which took effect onFebruary 17 2006 and aims to provide rules and terms and conditions pertainingto Distribution Connection Assets and Services, Service to the Captive Market,Supplier of Last Resort. Service to the Contestable Market, UnbundledDistribution Wheeling Service and Guidelines for Establishing Regulated ServiceRates;WHEREAS the Energy Regulatory Board's (ERB) Standard Rules andRegulations Governing the Operation of Electrical Power Services and ERBResolution 95-21 were superseded by the DSOAR;WHEREAS recognizing the need to amend the DSOAR in view of thenew regulatory regimes that were adopted for the Private Utilities (PUS) and the

Electric Cooperatives (ECs), such as the Performance-Based Regulation (PBR)and Rules for Setting Electric Cooperatives' Wheeling Rates (RSEC-WR),respectively, the Commission solicited commentslinputs from the industrystakeholders in October 2007;WHEREAS the Commission's Rules on Re-Distribution of Electricity ,which was incorporated in the DSOAR, aim to address and protect the interestsof individual tenants or unit owners of buildingslcondominiums, who are beingbilled by a re-distributor. A public consultation on the said Rules was conductedin 2006;WHEREAS on February 25, 2009, the Commission posted at its websitethe proposed amendments to the DSOAR and the Notice of Public Consultation;WHEREAS on March 13, 2009 and March 19, 2009, expositorypresentations on the proposed amendments to the DSOAR were conducted inthe Commission's Main Office for Luzon stakeholders and at the Eduardo AboitizDevelopment Studies Center in Cebu for the Visayas and Mindanaostakeholders, respectively. Subsequently, on April 7 2009, a public consultationthereon was held:WHEREAS after the April 7 2009 public consultation, no commentlinputon the Rules for Re-Distribution of Electricity was received by the Commission.

In view thereof, the Commission held meetings with identified contact persons ofcondominium and mall unit owner, such as Ayala Group, SM Group. Serendra,Jollibee and McDonalds as well as with the Organization of Socialized HousingDevelopers of the Philippines (OSHDP), a low cost housinglcondominiumdeveloper. Said stakeholders' commentslinputs on the DSOAR-were then


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Resolution No.a eries of 2010A Resolution Adopting the Amendments to the Distribution Services OpenAccess Rules (DSOAR)Page of 2

WHEREAS, the Commission posted at its website on November 16, 2009the proposed amendments to the DSOAR for final comments by the stakeholdersand the deadline for submission of comments was on December 7, 2009. Thecommentslinputs received were then considered in the final proposed version ofthe DSOAR;

NOW THEREFORE, the Commission, after thorough and duedeliberation, RESOLVED, as it hereby RESOLVES to ADOPT the amendmentsto the Distribution Services Open Access Rules (DSOAR) . The pertinentamended provisions thereof are hereto attached as Annex A .This Resolution shall take effect fifteen (15) days following its complete

publication in a newspaper of general circulation in the Philippines.Let copies of this Resolution be furnished the University of the PhilippinesLaw Center-Office of the National Administrative Register (UPLC-ONAR).

Pasig City, February 22 2010.

--J [\ h' .ENAlD G C UZ-DUCUTChairpersonCommissioner


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AM END ED DISTRIBUTION SERVICESAND OPEN ACCESS RULES

DSOAR)

February 2010


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[THIS P GE L FT BL NK INTENTION LLY]


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Republic of the PhilippinesEnergy Regulatory Commiss ion

Pacific Center, San Miguel Avenue, Pasig City

AMENDED DISTRIBUTION SERVICESA N D O P E N A C C E S S R U L E SDSOAR)

Pursuant to Republic Act No. 9136, otherwise known as the Electric PowerIndustry Reform Act EPIRA) of 2001, and the Implementing Rules andRegulations issued pursuant to that Act, the Energy Regulatory Commissionhereby promulgates the following rules, terms, and conditions for distributionservices and open access.


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AMENDED DISTRIBUTION SERVICES AND OPEN ACCESS RULESDSOAR)

TABLE O F CONTENTSA R T I C L EG E N E R A L P R O V I S I O N S

1.1. PURPOSE 91.2. DEFINITION OF TER M1.3. APPLlCA

.4 . ENERGY REGULATORY BOARD RESOLUTION NO. 95-21 SUPERSEDED 18l S N O N D l S C K l M l N A T l O 1 81 . 6 . GEN RAL. D E S C R I P T 81.5.1. D l S T R l B U l l O N C O N N E CT I O N A S SE T S A N D S E R V IC E S

.6.2. DU SERVICE TO THE CAPTIVE MARKET1.6.3. SUPPLIER OF LAST RESORT SERVICES16 .4. DISTRIBUTION WHEELING SERVICE (DW S)

1.7 . DU EQUIP MEN TAND ELECTRIC PLANT1.7.1. AL THORIZED EQUIPMEN T1.7.2 . F ICI~IT IOUS EGISTRATION OF EQUIPMENT1.7.3. CONSTRUC TION, OPERATION AND MAINTENANCE OF ELECTRIC PLANT17.4 . WATT-HO UR METER STANDAR 221.7.5 , PORTABLE INDICATING AND RECORDING VOLTMETE RS1 7 . 6 . N O M I N A L S E R V IC E V O L T AG1.7 .7 . S - lANDA RD FREQUENCY AN1.7.9. POLES. SAG OF WIRE1.7.10. IDENTIFICATION OF 231.7.1 I REGISTER OF ASSETS

1.8. L.IMITS ON 1.IAB ILIT1.8.1. LIABILITY BE1 . 8 2 . LIMITATION OF DUTY AN D LIABILITY OF RES.8.3. D L T Y T O A V O I D O R M I T I G AT E D A M A G E S1.8.4. LIMITATION OF 1,IABILITY DUE TO FORCE 418.5 . EMERGEN CIES AND NECESSARY INTERRUPTIOKS1.9. DESIGNATION OF DISTRIBIJTION UTILITY CONTACT PERSON

1.12. ACCOUhI . SLIBMlSS1.14 . COPY OFI i V I O L A T I1.16 . GOVERK1 . 1 7 S E P A R A B1 . 1 8 . A M E N D M E N T S T O T H E D SO .41.19. EFFECTIVITY

A R T I C L E I 1 7R U L E S P E R T A I N I N G TO D I S T R IB U T I O N C O N N E C T I O N A S S E T S A N D S E R V I C E S 7

1 1 G E N2.2 ENG2.3 STAND ARD CONNECT ION FACILITIES2 . 4 S T A N D A R D C O N N E C TI O N

2.4.1 TRANSITION T O UN2 . 4 2 S T A N D A R D C O NN E CT IO N C H


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.4 .3 METHODOI.OGY FOR COMPUTING STAND ARD CONNECTION CHAR GE 282.4.4 ALTERNATIVE METHODOLOGY FOR COMPUTING STANDARD CONNECTION

CHARGES2.5 NEW CONNECT12.5.1 GENERAL2.5.2 APPLICATION FOR CONNECTION

.5.3 COMP1.IANCE WITH PROCESS AND NON-DISCRIMINATION 32.5.4 LOCATION AN D MAINTEN ANCE O F DU'S EQI IPMENT2.5 .5 SERVICE DRO2.5.6 SERVIC E ENTRANCE2.5.7 UNDER GROU ND SER2.5.8 GROUNDING

................................... 6 MODIFICATIONS AN DN EW PHYSICAL CONNECTIONS: RESIDENTIAL 32.6.1 RIGHT TO EXTENSION OF LINES AND FACILITIES2.6.22.6.3 DEDICATED TRANSFOR2.6.4 ENGIKEERING AND DES2.6.5 MINIM UM FAClLlTIF.2.6.67 . 6 72.6.8 EASEMENTS2.6.9 MODIFICATION TO EXISTING FAClLlTlE2.6 .10 RIGHT TO PROCURE EQUIPM EN1 AND C

.7 MODIFICATIONS AND NEW PHYSICAL CONNECTIONS: NON-RESIDENTIAL 362.7.1 RIGHT TO EXTENSION OF LINES AND FACILI1. lES2.7 .2 NON-STANDARD CONNECTION2.7.3 ENGINEERING AND DESlG2.7.42 .7 .5 NEAREST SOURC7 7 6 A L l E R N A r l V E R O U TE S2.7.7 EASEMENTS2.7 .8 MODlF lCATl2 .7 .9 RIGHT TO PROCURE EQUIPMENT AND CONSTRUCTION2.7.10 PROPORTIONATE SHARING O F LINE EXTENSION COSTS 392.7.1 CONTRIBUTION IN AID OF CONSTRUCTION2.7.12 OWN ERSHIP OF CONNECT-ION ASSETS

2.8 CONNECTION O FA GENERATING FAClLl 02.8.1 IN1.ERCONNECTION A ND OPERATI3.8 .2 GENERATOR COMPLIANCE7.8 .3 DESIGN RE\' IEWS AND INSPECT3.8.4 PRLlDENT OPE RAI ION AND MA1

2.9 REQC'IREMENTS FOR A NE\V CONN ECI-ION OR CONNECTION MODIFICATION OF AGENERATING FAClL3.9.1 APPLICATION

2.9.2 CONNECTION ASSETS AKD FACILITIES2.9.3 GENERATING FACILITY DESIGN AND OPERATING REQU IREMENTS .................... 437.9.4 EVALUATION OF CONNECTION APPLICATIONS AND DISTRIBUTION IMPACT

STI DlES (DIS) FOR GEN ERA TOR S2 . 9 4 1 D E T E R M2.9.4.2 COST O F D2.9.4.3 AGREEM2.9.4.4 REQUIREMEN TS OF AN OFFER OF SERVIC E FOR DIS. 432.9.4.5 EFFECT ON APPLlCAT lO 442.9.4.6 PAYM ENT FOR UNDERT ................................. 447.9.4.7 TIM E PERIOD FOR COMPLETION OF DIS 442 .9 .4 .8 RETEN rION OF DIS 442.9.4.9 RELIANCE ON EXIS 52.9.4.10 PROVISION O F DIS ISSUES AND RESULTS ....................................................................452.9.4.1 NOTIFICATION OF ADEQUACY O F DISTRIBUT 452.9.5 DISTRIBUTION ASSETS STUDY FOR GENER AT 45


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. 1 0 A R R A N G E M E N T S F O L L OW I N G E X E C UT I O N O F C O N N E C TI O N A G R E E M E N T 4 72 .10.1 COMPL ETION OF CONNECTION ARRAN GEMENTS 47.10.2 SECURITY FOR NE W FACILITIES OR FACILITY UPGRADES 472.10.3 DESIGN AND SPECIFICATION REQUIREM ENT 4 72 .10 .4 INSTALLATION OF NECESSARY EQUIPMENT 47.10.5 PROVISION OF REQUIRED INFORMATION AN D TESTS OF EQUIPMENT 472.10.6 C O S T S O F P R O C E SS I N G A N D M O D I F2 .10 .7 SAFETY. POWER QUALITY AN D REL 482.10.8 DATA REQUIREM ENTS2 . 1 0. 9 C O N F I D E N T I A L T R E A T M E N T O F D A T A2.10 .1 CONTINGE NCY PROCEDU RES2.10 .12 PROPERTY ACCESS2.1 METERING EQUIPMENT. .2 .1 11 MET ER 1NSTALL.ATIONS2.1 1 .2 GEN ERA L INFORM ATION ON METERING 72.1 1.4 T E S T O F C U S T O M E R S M E T E R B Y T H E D U2.11 .5 WATTH OUR METER ACCURACY REQUIREM ENTS2.1 1 .7 RECORD OF METER2.12 INTERCON NECTION BETWEEN DISTRIBUTION LlTlLlTlES2 .12 .2 INTERCONNECTION AND OPERATING AGREEMEN

A R T I C L E I11R U L ES P E R TA I N IN G T O S E RV I CE T O T H E C A P T I VE M A R K E T

3 . G E N E R A L D E S C RI P T IO N O F S E R V IC E3.2 THE MAGN A CAR TA FOR RESIDENTIALCO NSUM ER3.3 APPLICATION FOR CAPTIVE MAR KET SUPPLY3 . 4 E S T A B L I S H M E N T A N D R E E S T A B L IS H M E N T O F C R E D l3 .4.1 RESIDENTIAL ELECTRICITY CUST3.4.2 NON -RESI DEN TIAL ELE.CTRICITY3.4 .3 RE-ESTABI, ISHMENT OF CREDIT FOR ALL CAPTIVE CUST OM3.5 BILI.l3 .5 ,

3 . 5. 2 M t T E R E D S E R VI C E3 . 5. 3 C O N T E N T S O F B lL3 .5 .4 ESTIMATED BII.LS3 .5 .5 PRORATION OF BILL3 .5 .6 PAYM EN-l O F BILL3 .5 .7 ADJU STME NT FOR 0

j 6 BILLING DISPUTEj . 7 R E G U L A T E D R A T E S F O R T H F , C A P T lV E M A R K E

A R T I C L E IV 6R U L E S P E R T A I N IN G TO D I ST R IL IU T IO N W H E E L I N G S E R V I C E 6

1 1 G E N E R A 624.2 EL.IGIBI1. 634 .3 GRO UND S FOR REJECTING DWS AGREEMENT 64 .3 .1 REJECTION O F DWS AGREEMEN4 . 1 2 A C C E PT A N C E O F D W S A G RE E M4.4 RELATIONSHIP WITH RES END-USE CUSTOMER 644 .5 MEl -ERIN 644.5.1 TIM4.5 .2 OWN ERSHIP OF METERS4.5.3 METER READING AND DATA DISSEMINATION SERVICE4.5.4 REQUEST FOR ADVANCED METERING TECHNOLOGY4.5.5 RIGHT TO PROCURE AND INSTALL ADVA NCED METER EQUIPMEN T 65


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4.5.6 ACCESS AN D METER READING4.5.7 METER DATA EXCHAN G

4.6 SUBTRANSMISSION 654.6.1 DELIVERY SERVICE PROVIDED BY OWNER OF SUBTRANSMISSION 654.6.2 NON IMPAIRMENT OF GENERATION CONTRACTS WITH END USERS 654.6.3 SUBTRA NSMISSION COST S AND RATES 646 .4 END USER IN THE CAPTIVE MARKET WITHOUT SUFFICIENT GENERA TION 66

4 7 TRANSMISSION 664.7 .1 CONTRAC4.7.2 APPLICABLE TRANSMISSION RATES 664.7.3 ANCILLAR Y SERVICE4.7 .4 WESM REQUIREMEN

4.8 BILLING AND RELATED CUSTOM ER SERVICE 674.8.1J .8.2 DEPOSIT FOR DW4 . 8 34.8.44.8.5 CONTESTABLE END USER COMPLAINTS AND DISPUTES 94 .9 GEK ERA TOR WHEELING IN THE DISTRIBUTION SYSTEM 04.9.1 DIJ RESP ONSlB lLlTl 04.9.2 GENE RAT OR RESPO 04 . 1 0 WHEE LING FOR ANOTHE R DISTRIBUTION UTILITY 04.10.1 THE RESPONSIBILITIES OF DU AS CUST OME R 041 0.2 CUSTOMER RESPONSIBILITIES 0

A R T I C L E V 70G U I D E L I N E S F O R E S T A B L IS H I N G R E G U L A T E D S E R V I C E R A T E S 7 0

G E N E R A L5.2 UNIFORM5.3 DlSTRlB UT TILITIES OPERATING UNDER THE RDWR

5.3.5.3.2

5.3.5 MONITO RING BY E5.4 DlSTRlBUTlON SYSTEM LOSSES 7

85.6 TRANSMISSION COS 8A R T I C L E V I 78R E D I S T R IB U T I O N O F E L E C T R I C I T Y 7 8

6.1. GUIDING PRINCIPLES 86.1. C O V E R A G6.3. POLICIES 9

6.3.1. G E h OR REDISTRIBUTION6.3.2. ADDITIONAL CONDITIONS FOR REDISTRIBUTORS WITH SUBSTATIOXS. 816.4 . RIGHTS AND OBLIGATIONS OF UNIT USERS 826.4. OBI.IGATIONS OF UNIT USERS

6.5. COM PLIAN CE WITH LAWS. RULES AND REGULA TIONS 2A R T I C L E V II 8P R O F O R M A A G R E E M E N T S AN D F O R M S 8

7. CONNECTION AGREEMENT7.2 APPLICATION FOR INTERCONNECTION AND PARALLEL OPERATION OF GENERATIONW ITH TH E IITII .ITY SYSTEM 837.3 AGREEM ENT FOR INTERCONNECTION AND PARALLEL OPERATION OF GENERATION 83


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7.4 EASEM ENT AND RIGH TOF IVAY FORM7 5 AGREEMENT FOR METER OWNERSHIP AND/OR ACCESS FOR NON COMPANY OW NED

M E T E R S 8 37 6 DISTRIBUTION WHEELING SERVICE AGREEMENT 3


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ARTICLEGENERAL PROVISIONS

1 1 PURPOSEThe purpose of the DSOAR is to set forth the terms and conditions related tothe provision of Connection Assets and Services, service to the CaptiveMarket, Supplier of Last Resort ( SOLR) service to the Contestable Market,unbundled Distribution Wheeling Service ( DWS ) provided to the ContestableMarket, and redistributors' service to sub-meter users. Furthermore, theserules set forth the procedures for establishing regulated service rates forDistribution Utilities CDUs ).

1 2 DEFINITION OF TERMSIn the DSOAR, unless the contrary intention appears, the following words andphrases have the following meanings:

Anci llary Those services that are necessary to support theServices transmission of capacity and energy from resources to loadswhile maintaining the reliable operation of the Grid or aDistribution System or a Subtransmission System inaccordance with standard utility practice, the Grid Code andthe Distribution Code.ApplicantBAPA

An End-user or Generator, depending on context, that hassubmitted a Connection Application.Barangay Power Association. It is an organization of ElectricCooperative's (EC) member-consumers residing in abounded cluster of households as organized by the ECswithin a given barangay or locality with a set of officers forthe purpose of managing the distribution of power in theirown locality.

Billing Refer to the amount to be charged to the person concernedAdjustment for the unbilled electricity due to inaccurate meters and otherbilling errors that are not billing differential.Billing Refer to the amount to be charged to the person concernedDifferential for the unbilled electricity illegally consumed as determinedthrough the use of methodologies outlined in theImplementing Rules and Regulation (IRR) of Republic Act(R.A.) 7832Building A structure that stands alone or that is cut off from adjoiningstructures by fire walls and openings therein protected byapproved fire doors.Business Day A day other than a Saturday or a Sunday or an official ordeclared Philippine national or local public holiday.


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Bus inessSeparat ionGuide l ines

Bus inessSeparat ionP lanCapt ive Mark

Cent ra lReg is t ra t ionBody CRB) .

C o m m o nAreasConnec t i onAgreemen tConnec t i onApp l i can tConnec t i onApp l i ca t ionConnec t ionChargesConnec t i onCus tomersConnec t ionPo in t

Contes tab leCus tomer

The rules and principles for the clear separation of accountsbetween regulated and non-regulated business activities;and, the structural and functional unbundling requirementsthat must be implemented and observed by electric powerindustry participants.The plan submitted by a market participant pursuant to theBusiness Separation Guidelines.

Let Refers to electricity end-users who do not have choice of asupplier of electricity, as may be determined by the ERC inaccordance with the EPIRA.The entity designated by the ERC to develop and managethe B2B system which facilitates Customer Switching andkeeps track of the movement of End-users in theContestable Market. The ER C, through Resolution NO 15Series of 2006 designated the Philippine Electricity M arketCorporation PEM C) as the Central Registration Body.The entire project or building excepting all units separatelygranted or h eld or reserved.Agreement between a Connection Customer and a D Ugoverning Distribution Con nection Assets and Services.An End-user, DU, or Generator seeking to connect to theDistribution System, including a RES applying on behalf ofan End-user in the Contestable Market.An application made by a Connection Applicant for aConnection Agreement or modification to a ConnectionAgreement.DU charges for Distribution Connection Assets andServices.End-users, D Us , and Ge nerators with a C onnec tion Point onthe Distribution System who purchase DistributionConnection Assets a nd/or Distribution Connection Services.The point of connection of the U ser System or Equ ipment tothe G rid for Users of the G rid) or to the D istribution Systemfor Users of the D istribution System ). For the purpo ses ofthis definition herein, User System or Equipment does notinclude the service entrance up to the m eter.An electricity End-user that belongs to the ContestableMarket. An aggregate of Contestable Customers organizedunder the second phase of retail competition and openaccess shall be considered as a single ContestableCustomer, unless otherwise provided by the ER C.


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Cus tomer

Cus tomerSegmen t

C on tes tab le The electricity end-users who have a choice of a supplier ofM ark et electricity, as may be determined by the ERC in accordancewith the EPIRA.Contr ibut ionin Amounts paid by a Connection Customer for theA id o f construction and/or extension of Distribution Con nectionC on str uc tio n Assets beyond the Standard Connection Facil it ies. The DU(C IAC ) maintains a separate account of these amo unts and theassets never appear in rate base nor in a DU assetappraisal.

It includes Amounts paid by a Connection Customer whorequested modifications, rearrangement, relocation, orremova l of any DU s existing facilities for any p urpose thatdoes not result in a net increase in demand or electricityusage,In respect of a Regulated Distribution System:(a) a person whose User System or Equipment is directlyconnected to the Regulated Distribution System andwho purchases or receives regulated distributionsewices in respect of that Regulated DistributionSystem; and(b) any other person who purchases or receives regulateddistribution services in respect of that RegulatedDistribution System.For the avoidance of doubt, this may include a person whooperates an Embedded Generator, a RES, an End-user,another DU, or Generator wheeling power through theReg ulated Distribution System.A category of End-use customers connected to theDistribution System established pursuant to the guidelinespromulgated by ERC. Customer Segments proposed by aU and approved by the ERC have similar consumptioncharacteristics for regulated distribution services in respectof that Regulated Distribution System, based on theirnetwork configuration and consumption profile, as mea suredby the num ber of connections, the energy input (k w h) , thenon-coincident peak load (kW), the co-incident peak load(kW), the time-of-day or any other physical measure as

approved from time to time by the ERC. A C ustomerSegment of a particular DU includes all of the Customerswho are charged the same tariff.Ded ica ted A transformer sew ing single end-user.Trans formerDeveloper A realtor or contractor in-charge in the development of asubdivision or condominium project who may apply forconnection with the DU either in its name or on b ehalf of thebuyers of the project who w ill ultimately b e the custome rs.


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Dis t r ibu t ionAsse ts S tudyDis t r ibu t ionCodeDCASDis t r ibu t ionConnec t i onAsse ts

Dis t r ibu t ionConnec t i onServ ices

Dis t r ibu t ionWheel ingServ ice DWS)Dis t r ibu t ionImpa c t StudyDIS)

Dis t r ibu t ionSys tem

Dis t r ibu t ionUt i l i ty DU)

A study to determine all distribution assets and costsnecessary to accommodate a proposed ConnectionAgreement.The Philippine Distribution Cod e adopted by the ER C ,Distribution Connection Assets and Services separatelydefined below).Those assets that are put primarily to connect a customerto the Distribution System for purposes of DistributionCon nection Services for the con veyance of electricity.Those are facilities which may be bypassed or removedfrom the network without affecting any customer exceptthose that are directly connected to it.In respect of a Regulated Distribution System:a) the provision o f capability at a Conn ection P oint inrespect of that Regulated Distribution System to deliverelectricity to or take electricity from that ConnectionPoint;b) the planning, installation, maintenance, augmentation,testing and operation of Distribution Connection Assetsin respect of that R egulated Distribution System; andc) the provision of services that support any of the servicesreferred to in paragraphs a) to b).

The conveyance of power throughout a Distribution Systemin a manner to meet the demand of End-users orGenerators.A study performed to assess the ability of the DistributionSystem to accommo date a proposed Connection Agreementand any upgrades that may be required.In respect of a Regulated Entity, a system of wires andassociated facilities extending between:a) the delivery points on the G rid and any S ubtransmissionSystem; andb) the points of connection of Embedded Generators, on

the one hand, and the points of connection of UserSystems and Equipment of End-users, on the otherhand.Refers to any electric cooperative, private corporation,government-owned utility or existing local government unitwhich has an exclusive franchise to operate a distributionsystem in accordance with the EPIRA, including DUsoperating in the economic zon es.


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DU B i l li ngMeterE lec t r ic P lan tHe ld fo r Fu tureUse

EPIRAEqu ipmen tERC orC o m m i s s i o nFor ce MajeureE v e n t

Franc hise AreaGeneratorG r i dConnec t i onPo in tI ndus t r ia l o rCommerc ia lComp lex

IRRL o c a lGove rnmen t

The billing m eter provided by the DU to th e redistributor thatregisters the sum of the energy m easured by the sub-m etersof the redistributor including the redistribution loss.An account that includes amounts of utility assets that were1) acquired bu t held for use in the future and 2 )previously

used but since retired from service and being held pendingreuse in the future under a definite plan.Refers to any person or entity requiring the supply anddelivery of electricity for its own use.Republic Act No. 9136, otherwise known as the ElectricPower Industry Reform Act of 2001Equipment as defined in the Distribution Code.The Energy Regulatory Comm ission created by virtue o f theprovisions under Section 38 of the EPIR A.An event, the occurrence of which could not be foreseen orwhich foreseen, where inevitable or beyond the control ofeither party such as:(a) typhoon, storm, tropical depression, flood or inundation,volcanic eruption, earthquake; or(b) war insurrection, riots, national emergencies, act ofpublic enem ies;(c) or changes in any law, order, regulation which m akes itunreasonable or impossible for a party to perform itsobligations.Geographical area designated within the legal franchise of aDU.A person or entity authorized by the ERC to operate afacility u sed in the generation of electricity.A Connection Point as that term is defined in the Ru les forSetting the Transmission Whee ling Rate.For the purpose of this Rules, shall mean any cluster ofbuildings which are used in the production of goods orintended for commercial use, including buildings or housesthat serve as residences of the buildings' workers, locatedwithin the vicinity or in a contiguous land a rea that is fencedoff from the surrounding properties; and such cluster ofbuildings, houses and the land where the said buildings arelocated, are ow ned or leased by a single pe rson or entity.The Implementing Rules and Re gulations issued pursuant tothe EPIRA.Local Government as defined in Executive Order No. 292,otherwise known as the Administrative Code o f 1987.


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Local RES

Magna Carta

MAPMeteringEquipmentMeteringServiceProvider

NationalGovernmentNominalServiceVoltageOne waySweep or PoleSweepPersonPhPQuarter

Redistribution

Redistributor

The non-regulated business segment of the DU catering tothe Contestable Market only within its franchise area. Assuch, a license is not required.Magna Carta for Residential Electricity Consumers includingthe Guidelines to Implement the Magna Carta issued by theERC.The Maximum Average Price or Maximum Annual Price asdefined in the RDWR.The electrical measurement devices including instrumenttransformers, wiring, communications, and other auxiliarydevices associated with metering.A person or entity authorized by the ERC to provideMetering Services. The DU shall be the sole meteringservice provider for the retail market until such time that theERC determines the provision of metering services at theretail level as competitive.The National Government as defined in Executive OrderNo. 292, otherwise known as the Administrative Code of1987.For the purpose of this DSOAR, it is the nominal valueassigned for the purpose of monitoring the voltage at thepoint where the electric system of the distribution utility andthe electric system of the user are connected.The measure of deviation from straightness along the lengthof the pole.Refers to a natural or juridical person, as the case may bePhilippine Peso.A period of three months from 1 January to 31 March (bothdates inclusive), 1 April to 30 June (both dates inclusive),1 July to 3 September (both dates inclusive) or 1 Octoberto 31 December (both dates inclusive).The act of redistributing electricity to other persons orentities by a person or entity which has an electric servicecontract with a distribution utility.A person or entity which has an electric service contract witha DU and who re-distributes electricity to other personls orentitylies. This may include a building owner, buildingadministrator or homeowners association charged with theresponsibility of redistributing electricity to the individual unit-users of the same building or the owner of the Load-EndPower Substation charged with the responsibility ofredistributing electricity to the individual building ownerswithin an Industrial or Commercial Complex.


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Redis t r ibu t ionL o s s

RegulatoryPer iodRegu la toryRese t P rocess

RenewableE n e r g y A c t o rR A 95 3Reta i lElectr ic i tySup pl ier (RES)Rules fo rSet t ingDis t r ibu t ionWheel ingRates (RDWR)Ru les fo rSet t ing Electr icCooperat ivesWheel ingRa tes (RSEC-WR)SideCons t ra i n t sStandardConnec t i onCharge

StandardConnec t i onFaci l i t iesS ub-Meter

Sub-

The difference between the total registered consumption inthe redistributor s DU billing meter and the accum ulatedenergy consumption registered by all of the sub-meters.Redistribution loss shall include technical and non -technicallossesThe First Regulatory Period, the Second Regulatory Periodor a Subsequent Regulatory Period (as the ca se ma y be) ofthe RDWR.Pertains to the actions prior to the start of any RegulatoryPeriod, through which the price control arrangements areestablished that will apply to a Regulated Entity with regardto the provision of Regulated Distribution Services in eachRegulated Distribution System for the next RegulatoryPeriod.The Act passed by the Philippines Congress promoting thedevelopment, utilization and comm ercialization o f renew ableenergy resources and for other purposes.Any person or entity authorized by the ERC to sell, broker,market or aggregate electricity to the End-users in theContestable M arket.Refers to the rules promulgated by the ERC to govern theentry of private distribution utilities into performance basedregulation and any am endments thereto.

Refers to the rules promulgated by the ERC that embodythe new regulatory framework for the on-grid ElectricCooperatives.

Limitation in the amount of annual change in the MAP asdescribed in section 6.4 of the R DWR .An unbundled connection charge on End-users that isuniform within a particular Customer S egment of a DU . TheStandard Connection is based on the Standard ConnectionFacilities used to connect a typical End-user within theCustomer Segm ent and is subject to ER C approval.The Connection Assets identified for a particular CustomerSegment for the purpose o calculating a StandardConnection Charge.The billing meter provided by the redistributor to each unit-user which registers only the energy consum ption of the unitor end-user.The facilities classified as such based on functional


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t r ansm iss i onAsse ts

S u p p li er o fL a s t R e s o r t(SOLR)Sys temOpera torTax

TransCoTransmiss ionWh eel ing RateGuide l inesUn i fo rm RateF i l i ngRequ i remen tsU n i t

Use rU s e rDeve lopmen t

User Sys tem

standards established in Article ll of the Guidelines to theSale and Transfer of Transc o s Sub-transmission Asse tsand the Franchising of Qualified Consortiums. Theseinclude Transco assets linking the transmission system andthe distribution system, which are neither classified asgene ration nor transmission.A regulated entity with the obligation of serving End -users inthe Contestable Market pursuant to the provisions set forthin the DSO AR and other guidelines promulgated by ERC .System Operator as defined in the WE SM RulesAny tax, levy, impost, deduction, charge, rate, duty orwithholding which is levied or imposed by the NationalGovernment or a Local Government or any agency.department, instrumentality or other authority of the Nationa lGovernme nt or a Local Governm ent.The National Transmission Corporation or its successorThe Guidelines on the Methodology for SettingTransmission Wheeling Rates promulgated by the ERCwhich was later amended as Rules for Setting theTransmission Wheeling Rate.The Uniform Rate Filing Requirements promulgated by ERCon October 31 2001.A p art of a building or condominium project intended for anytype of independent use of ownership, including one or mo rerooms or spaces located in one or more floors (or part orparts of floors) in a building or buildings and suchaccessories as m ay be appended thereto.For purposes of this Rule, it will also refer to the dw elling ofa BAPA memberA person or entity owning or leasing a unit inside the samebuilding being served by the redistributor, whose electricconsumption is measured through sub-me ter.For purposes of this Rule, a BAPA member shall beconsidered as a unit-user.A person or entity that uses the Distribution System andrelated Distribution facilities.The System or Equipment to be connected to theDistribution System or to be mod ified, including the relevantproposed new connections andlor modification within theUser System that requires a C onnection Agreement.Refers to a system owned or operated by the User of theDistribution System.


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W SM The Wholesale Electricity Spot Market established pursuantto the EPIRA.Weighted An average cost of all sources of financing or financialAverage Cost capital where each is weighted by the reasonableo Capital percentage of each in the financing of utility investment.WACC) The WACC shall be that value determined pursuant to theRDWR.In addition, words and phrases used in these Guidelines which are defined inthe EPIRA or the Implementing Rules and Regulations (IRR) have themeaning given to them in the EPIRA or the IRR (as the case may be).

1.3. APPLICABILITYThe DSOAR apply to:(a) Distribution Utilities ( DUs ), including DUs in the economic zones;

(b) End-users;(c) Qualified DUs and franchised consortiums of qualified DUscontrolling and operating Subtransmission Assets;(d) Retail Electricity Suppliers ( RES );(e) The Transmission Provider;f) The System Operator;

(g) Generators;(h) The Captive Market;(i) The Contestable Marketj) Supplier of Last Resort (SOLR);

(k) Local Retail Electricity Supplier (Local RES); and(I) Redistributors.(Together, the above-mentioned parties are collectively referred heretoas the Participants ).

In interpreting and complying with the DSOAR, the participants shall take intoaccount that:(a) the Distribution System conveys electricity through its contractual

relations with the End-use customers, RESs, Generators, and theSupplier of Last Resort;(b) RES that have been licensed by the ERC and the Local RESoperating within the DU's franchise area will be free to market orbroker their services to potential contestable customers, and at suchtime that the ERC declares open access and retail competition,licensed RES and local RES will be free to conduct business withinthe Contestable Market. Further, End-use customers will fall into oneof two categories: the Captive Market and the Contestable Market;and


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(c) the physical characteristics of electricity necessitate a significantdegree of coordination between the Participants to ensure qualityand reliability.1 4 ENERGY REGULATORY BOARD RESOLUTION NO. 95 21 SUPERSEDED

The Energy Regulatory Board's (ERB's) Standard Rules and RegulationsGoverning the Operation of Electrical Power Services, Resolution No. 95-21,as amended by ERB Order, Case No. 95-368, dated April 10 2000 arehereby superseded in their entirety by the DSOAR.1.5. NONDISCRIMINATION

All DUs shall make available upon reasonable request all regulated servicesat rates, terms and conditions that are duly approved by the ERC and shallnot unjustly or unreasonably discriminate in the rates, terms, and conditionsof service to similarly situated customers.A DU shall provide regulated services to non-affiliated persons at rates,terms, and conditions that are in no way different from the provision of suchservices for its own purposes.A DU shall comply with the rules on nondiscrimination under this Section andSection 2.5.3 hereof.

1.6. GENERAL DESCRIPTION OF SERVICESWith unbundling and open access, the distribution utilities faceunprecedented change with respect to service and the customers they serve.The DSOAR is designed to cover the various service combinations in the newDU environment created by the EPIRA. The regulated DU shall be preparedto provide a variety of services to the Captive Market and the ContestableMarket. DU service to the Captive Market will be similar to service providedbefore EPIRA but now with unbundled rates, removal of cross-subsidies,separate connections policy for End-users, and possible regulation under theRules for Setting Distribution Wheeling Rate (RDWR). DU services in theContestable Market shall include the possible provision of unbundledDistribution Wheeling Service ( DWS ) to Contestable Customers, RetailElectricity Suppliers ( RES ), the Supplier of Last Resort ( SOLR ), other DUs,and Generators, as well as Distribution Connection Assets and Services( DCAS ) to customers and SOLR services to Contestable End-users..Every DU under the supervision, control, and jurisdiction of the ERC shalloperate, maintain, and provide safe, reliable, adequate, efficient andcontinuous electric service. Every DU shall, upon request, give its customersas identified above, copy furnished ERC, all information and assistancepertaining to its service in order to provide said customers reliable, efficientand economical service.1.6.1. DISTRIBUTION CONNECTION ASSETS AND SERVICES

DCAS relates to those facilities and related services dedicated tocompleting the Connection Point of an End-user or Generator. DCAS is


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the responsibility of the DU for End-users in both the Captive Market andthe Contestable Market. Article II provides the rules pertaining to DCAS.1 6 2 DU SERVICE TO THE CA PTIVE MARKET

The DU continues to provide all aspects of service to the CaptiveMarket. Article Ill provides the rules pertaining to service to the CaptiveMarket.

1 6 3 SUPPLIER OF LA ST RESO RT SERVICESUnless otherwise determined by law or the ERC, all Distribution Utilitiesshall perform the duties and obligations as Suppliers of Last Resort( SOLR ) for the Contestable Market within their respective franchisearea as more fully set forth in The Rules for the Supplier of Last Resortand other separate guidelines related to SOLR service to be adopted bythe ERG. SOLR service is regulated by ERC as back-up supply to theContestable Market for the contingency that an End-user in theContestable Market does not have supply from a competitive RES.SOLR service is not service to the Captive Market and is not RESservice by the DU.The Contestable Customer shall be served by the SOLR in the eventsuch customer:(a) Fails to exercise its option to choose its supplier of electricity uponthe implementation of retail competition and open access; or(b) Fails to find a willing RES.At least thirty 30) days prior to the commencement of open access andretail competition (OARC), contestable customers shall settle allobligations with the DU which provided service before OARC and enterinto a contract with a RES, a Local RES, or SOLR. Otherwise, the DUshall have the right to physically disconnect such customer.A Contestable Customer that has ceased to receive service from its RESor Local RES, arising from the occurrence of any last resort supplyevent, and who has not selected a new RES or Local RES yet shall besewed by the SOLR upon compliance with the approved SOLR termsand conditions of service. A last resort supply event shall be triggeredby any of the following conditions:

a) The RES or Local RES has ceased to operate;b) The RES' license has been revoked by ERC;c) The arrangements for DWS between the RES and the DU havebeen terminated;d) The RES or Local RES is no longer permitted to trade electricenergy through the WESM;e) The RES or Local RES has given notice to the ERC that it willno longer provide supply services; orAny other analogous event which the ERC may deem as a lastresort supply event.


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The Contestable Customer will immediately be served by SOLR aftermeeting certain requirements as established or approved by the ERC.SOLR customers shall not be served as if it were part of the CaptiveMarket.Because SOLR service is part of the Contestable Market but is not aRES function of the DU, the method of regulating energy prices forSOLR service shall not be based on approved purchased poweragreement costs, but instead the SOLR shall charge the rates approvedby the ERC based on the filing of its SOLR Rate application. The SOLRshall also bill SOLR customers the last approved unbundled monthlySupply charge for the relevant Customer Segment and pass through allapproved Distribution Wheeling Service, system loss charges, andmetering costs charged by the U and transmission service costscharged by the transmission provider. System loss charges shall becomputed using the same methodology used for the Captive Market andbased on the energy costs of the SOLR customer. All costs of SOLRservice shall be transparently disclosed in an unbundled fashion in thebilling to End-users taking SOLR service in the same manner as billingsto the Captive Market. The DU may file an application with ERC at anytime for approval of reasonable unbundled Supply charges and systemloss charges applicable to SOLR sewice.In the event of a power shortage, the Participants Shall follow WESMprocedures for such a contingency. The Supplier of Last Resort is notintended to be a generator of last resort during such a contingency.An End-user taking SOLR service shall make a deposit equivalent to twomonths total estimated billing based on the average of previous six 6)months demand and energy usage. Said deposit may be applied to pastdue bills of the SOLR, except when such amounts are restrained underlegal contest. Such deposit shall be fully refundable upon termination ofSOLR service, with interest paid on the deposit equivalent to the PesoSavings Account Interest Rate of Land Bank of the Philippines on thefirst working day of the year, (or other government banks subject to theapproval of the ERC) less any arrears that have accrued in thecustomer s account, except when such arrears are restrained underlegal contest. (SOLR Art. IV, Sec. 1.5)An end-user under contract with a competitive RES cannot receiveSOLR service without first satisfying all terms and conditions related totheir RES contract including any contract termination fees.An end-user disconnected for non-payment of bills and/or pilferagecannot avail SOLR service unless such customer pays in full any and allamounts, including any applicable charges due to the RESl Local RESor DU.Any DU costs related to SOLR service shall be completely borne by theSOLR customers and shall not be borne by the Captive Market. Anycosts related to generation capacity and energy not reasonablynecessary to ensure continuous and reliable service to the CaptiveMarket, shall not be borne by the Captive Market.


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SOLR service is only designed to be a safety net for instances whenEnd-users in the Contestable Market temporarily do not have a contractwith a RES. The power costs paid by an End-user using SOLR serviceare expected to exceed those possible from a RES with a balancedpurchased power strategy. With this in mind, Contestable Customersshall enter into a contract with a RES or Local RES at least thirty 30)days prior to the commencement of retail competition and open access(SOLR Art. II, Sec.1)

1.6.4. DISTRIBUTION WHEELING SERVICE DWS)DWS is the wheeling and conveyance of electricity over a DU sdistribution system. Unbundled DWS shall be made available in a non-discriminatory fashion to licensed RESs, End-users in the ContestableMarket, the SOLR, other DUs, and Generators. To be clear, the DUshall provide DWS to its SOLR function under the non-discriminatoryterms and conditions of Article IV and subject to the Business SeparationGuidelines. Article IV provides the rules pertaining to DWS.

1.7. DU EQUIPMENT AND ELECTRIC PLANT1.7.1. AUTHORIZED EQUIPMENT

Every DU shall install in its plant only the generating or producing unit(s)and/or distribution equipment authorized in its Certificate of PublicConvenience Necessity (CPCN) or those that may be subsequentlyauthorized by the ERC.The DU may increase, substitute or withdraw from service its authorizedequipment and machinery in accordance with the Rules for Approval ofRegulated Entities Capital Expenditure Projects, RDWR, and other ERCRules. If such undertaking is not covered by the RDWR or other rules,authorization shall be secured from the ERC in accordance with thepertinent provision of the Rules for Approval of Regulated EntitiesCapital Expenditure Projects.

1.7.2. FICTITIOUS REGISTRATION OF EQUIPMENTIt shall be unlawful for any DU to cause, allow or in any other mannerhelp or consent to the registration in its name, fictitiously, surreptitiouslyor otherwise of any equipment belonging to another person andlor tocause, allow or in any other manner, help or consent to the operation ofsaid equipment under its CPCN.

1.7.3. CONSTRUCTION, OPERATION AND MAINTENANCE OFELECTRIC PLANTThe electric plant which includes:(a) Power Plant(b) Distribution Lines(c) Substations(d) Overhead system, poles, lines, transformers, etc.


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(e) Underground systems, including power and communication cablemanholes, conduits, etc.9 Street Lighting System

(g) Service wires and attachments(h) Meters and instruments; and(i) Control and communication facilities (Supervisory Control and DataAcquisition or SCADA),shall be constructed, installed, operated and maintained in accordancewith the provisions of the Philippine Electrical Code and the rules andregulations that may be issued by the ERC in relation thereto. In theabsence of applicable provisions in the Philippine Electrical Code, theprovisions of other internationally-accepted standards shall apply.

1 7 4 WATT-HOUR METER STANDARDEvery DU furnishing metered electric service shall maintain, to checkcustomer's watt-hour meter, at least one watt-hour meter standard whichshall be calibrated by the ERC at least once a year.

1 7 5 PORTABLE INDICATING AND RECORDING VOLTMETERSEvery DU shall provide itself with at least one portable indicatingvoltmeter. Utilities are further required to have at least one recordingvoltmeter which shall be placed in continuous service at its power plantor office.

1 7 6 NOMINAL SERVICE VOLTAGEFor monitoring purposes, every DU shall adopt 230 volts as its nominalservice voltage which is usually measured across the meter socket ormain service entrance switch installed for each customer or group ofcustomers. The voltage variation shall be maintained in accordance withthe Philippine Distribution Code. It is an under-voltage if the RMS valueof the voltage is less than or equal to 90 percent of the nominal value(207 volts at 230v nominal). It is an overvoltage if the RMS value of thevoltage is greater than or equal to 110 percent of the nominal value (253volts at 230v nominal).Standard voltage other than the abovementioned as nominal shall beshall be reported with the ERC within 60 days from the effectivity of thisamended DSOAR.

1 7 7 STANDARD FREQUENCY AND ALLOWABLE VARIATIONThe nominal fundamental frequency shall be 6 Hz The DU shall designand operate its system to assist the System Operator in maintaining thefundamental Frequency in accordance with the Philippine DistributionCode.


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1.7.8. RECORDSEvery DU shall keep a log book or any recording system that wouldserve as basis in generating reports that the ERC may prescribe.

1.7.9. POLES SAG OF WIRESNo pole located on or near a public place shall have a one-way sweepexceeding three percent (3 ) of its total length and all horizontal wiresattached to it shall be pulled up so that their sag shall not be greater thanthree percent (3 ) of the distance between poles.

1.7.10. IDENTIFICATION OF POLES TOWER ETC.Poles, towers, structures, and transformers shall be marked andnumbered by the DU to facilitate identification by the public.

1.7.11. REGISTER OF ASSETSEvery DU shall keep a comprehensive register of assets, indicatinginstallation date, condition and refurbishment.

1.8. LIMITS ON LIABILITY1.8.1. LIABILITY BETWEEN THE DU AND END-USERS

These rules are not intended to limit the liability of a DU or ConnectionCustomer for damages except as expressly provided in these rules.The DU shall make reasonable provisions to provide steady andcontinuous DWS, but does not guarantee the DWS against fluctuationsor interruptions. The DU will not be liable for any damages, whetherdirect or consequential, including, without limitation, loss of profits, lossof revenue, or loss of production capacity, occasioned by fluctuations orinterruptions unless it be shown that the DU has not made reasonableprovision to supply steady and continuous DWS, consistent with theConnection Customer s class of service. In the event of a failure to makesuch reasonable provisions, the DU s liability shall be limited to the costof necessary repairs of physical damage proximately caused by theservice failure to those electrical delivery facilities of the ConnectionCustomer which were then equipped with the protective safeguardsrecommended or required by the Distribution Code.The preceding notwithstanding, the DU or the Connection Customer maybe held liable for failure to conform to the rules and standards set forth inthe Distribution Code and other applicable electrical codes adopted inthe Philippines. Furthermore, if damages result from fluctuations orinterruptions in DWS that are caused by the DU s or ConnectionCustomer s gross negligence or intentional misconduct, this section shallnot preclude recovery of appropriate damages when legally due.

1.8.2. LIMITATION OF DUTY AND LIABILITY OF RESA R S has no ownership, right of control, or duty to the DU, ConnectionCustomer or other third party, regarding the design, construction or


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operation of the DU s DCAS facilities and distribution system. A RESshall not be liable to any person or entity for any damages, direct,indirect or consequential, including, but without limitation, loss ofbusiness, loss of profits or revenue, or loss of production capacity,occasioned by any fluctuations or interruptions of DCAS or DWScaused, in whole or in part, by the design, construction or operation ofthe DU s distribution system. The foregoing notwithstanding, a RES maybe held liable for non-technical system losses when found to condone,collude, conspire, or engage in the pilferage of electricity or tamperingwith any meters or DU facilities. Condonation, collusion, and conspiracyshall include, but not be limited to, the following instances:(a) When a RES has knowledge of pilferage of electricity committed orbeing committed by the End-User and refuses or fails to report suchfact to the DU; and(b) When a RES or any of its employees or representatives assists orparticipates in the commission of pilferage of electricity by any End-

User.1 8 3 DUTY TO AVOID OR MITIGATE DAMAGES

The DU and Connection Customer shall use extraordinary diligence toavoid or mitigate its damages or losses suffered as a result of the other sculpable behavior under subsection 1 8 11 8 4 LIMITATION OF LIABILITY DUE TO FORCE MAJEURE

Neither the DU nor the Connection Customer shall be liable for damagesor losses resulting or arising from any Force Majeure Event.1 8 5 EMERGENCIES AND NECESSARY INTERRUPTIONS

The DU may curtail or interrupt a Connection andlor DWS in the event ofan emergency arising anywhere on the distribution system or theinterconnected systems of which it is a part, which emergency poses athreat to the integrity of its system or the systems to which it is directly orindirectly connected if, in its judgment, such action may prevent oralleviate the emergency condition. The DU may interrupt service whennecessary, in DU s prudent judgment, for inspection, test, repair, orchanges in DU s Distribution System, or when such interruption willlessen or remove possible danger to life or property, or will aid in therestoration of DCAS and/or DWS.The DU shall provide advance notice to the Connection Customer, ifreasonably possible. Such notice shall be made at least two 2) daysprior to said curtailment, reduction, or interruption and may be made byelectronic notice (such as facsimile, text messages, or e-mail) to allaffected Connection Customers or through radio broadcast, televisionbroadcast, or local newspaper with specific identification of location, timeand expected duration of outage. Such information shall also be postedon the Customer Bulletin Board. In cases where such notice is notreasonably possible, the DU shall submit a report to the ERC containingthe information and an explanation why such advance notice was not


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reasonably possible. It shall likewise take other necessary actions tominimize the effect of such curtailment, reduction, or interruption to theConnection Customer.A notice shall also be provided to those End-users for whom a RES hasprovided notice to the DU that interruptions or suspensions of servicewill create a dangerous or life-threatening condition on the End-user spremises. The End-user should notify their RES or the DU if a conditionexists on the End-user s premises such that a suspension or interruptionof service will create a life-threatening or dangerous condition.The DU shall comply with all reporting requirements of the DistributionCode, and in addition to those requirements, shall either issue a writtenpublic notice published in a newspaper of general circulation in the DU sservice territory and file with ERC stating the precise reasons causingthe curtailment or interruption within seven (7) days, or deliver a reportthrough electronic media or any other means to all affected customers,any respective RES, and the ERC within seven 7) days. The publicnotice or report may cover more than one curtailment or interruption ifthere were multiple occurrences prior to the seven-day deadline for thefirst occurrence.Nothing herein shall prevent the DU from being liable if found to begrossly negligent or to have committed intentional misconduct withrespect to its exercise of its authority in this rule.All the Participants shall cooperate with each other, the ERC and anyother affected entities in the event of an emergency situation affectingthe delivery of electric power and energy or the safety and security ofpersons and property. The Participants shall comply with theinstructions of the DU and provide all necessary information prior to,during, and following an emergency declared by the DU in accordancewith the Distribution Code.

1 9 DESIGNATION OF DISTRIBUTION UTILITY CONTACT PERSONFor the purpose of establishing immediate and direct contact with the DUs,the DU shall submit the name(s), contact number(s) and address(es) ofresponsible officialls. The said contact personis must have the authority todecide on matters concerning all the activities mandated by the DSOAR. TheDUs must notify the ERC in writing should there be any change in theirsubmitted information.

1 l o DISPUTE RESOLUTIONEvery consumer has the right to file a complaint before the ERC for violationof ERC laws, rules, regulations, guidelines and policies, including but notlimited to RA 9136 and its Implementing Rules and Regulations, RA 7832 andits Implementing Rules and Regulations and ERB Resolution No. 95-21, asamended; Provided, that the complainant has previously discussedlconsultedthe issue with the Consumer Welfare Desk (CWD) Officer or representative ofthe concerned distribution utility and no settlement has been reached.


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The disposition and resolution of consumer complaints filed herein shall begoverned by the ERC Rules of Practice and Procedure the Magna Carta forResidential Electricity Consumers the Implementing Rules and Regulationsof R 7832 and all other relevant laws rules regulations guidelines andpolicies of the Commission.While these are pending with ERC the status quo of cases involving violationof contract shall be maintained The maintenance of the status quo shall onlybe applicable to the subject matter of the case and will not extend to anyother righffs and obligationis between the parties.The provisions of the Rules of Court on Summary Procedure shall apply in ananalogous and suppletory character whenever practicable and convenient.

1 11 INVESTIGATION INSPECTION EXAMINATION AND TESTThe ERC or its authorized representative may at any time conduct aninspection and investigation of the operation of any DU or an examination andtest of any equipment operated for electric service. The refusal obstructionor hindrance by the DU or any of its employees to the investigation orinspection of its service or examination or test of any of its equipment shallconstitute a violation hereof.

1 12 ACCOUNTSEvery DU operator shall keep such accounts books and other records asnecessary to afford an intelligent understanding of its business. If a uniformsystem of accounting is prescribed by the ERC for the electric industry thesaid system shall be observed. Every DU shall keep its books of accounts bythe double entry method.

1 1 3 SUBMISSION OF STATISTICS AND ANNUAL REPORTEvery U shall as prescribed by the ERC submit the statistics on electricpower operations together with the supporting documents in accordance withthe prescribed form. This is in addition to the annual report to be submitted onor before May 31st of every year containing detailed report of its finances andoperations corresponding to the previous year in accordance with the form asmay be prescribed by the ERC.

1 1 4 COPY OF DSOAREvery DU under the jurisdiction and control of the ERC must keep on file in itsoffices a copy of the DSOAR.

1 I S VIOLATIONViolation of any provision of the DSOAR shall be subject to the penalty whichthe ERC after giving the concerned parties opportunity to be heard mayimpose in accordance with law.


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1 16 GOVERNING LAWS AND REGULATIONSThe DSOAR is governed by the laws and pertinent regulations of thePhilippines and any dispute or proceeding arising out of the DSOAR shall fallunde r the original and exclusive jurisdiction of the E RC .

1 17 SEPARABILITYIf, for any reason, any provision or part of a provision of the DSOAR isdeclared unconstitutional or invalid, those provisions which are not therebyaffected will continue to be in full force a nd effect.1 18 AMENDMENTS TO THE DSOAR

Nothing in the D SOAR is to be construed as precluding the ER C from issuingother rules andlor guidelines pursuant to the EPlRA and the ImplementingRules and Regulations for the purpose of regulating the provision of servicesin respe ct of Distribution Systems.1 19 EFFECTIVITY

The DSOA R as amen ded shall take effect 15 days following its pu blication ina new spap er of general circulation.

ARTICLERULES PERTAINING TO DISTRIBUTION CONNECTION ASSETS AND

SERVICES2 1 GENERAL

This Article governs the terms of access and provision of DistributionCon nection Assets and Services (collectively referred to hereafter as, DCAS )by a DU to En d-users, Ge nerators, and other DU s, collectively ConnectionCustomers . This Article also applies to En d-users receiving a Con nectionunlawfully or pursuan t to unauthorized use. A D U shall provide DCAS pursuantto the terms a nd conditions herein to any poten tial Connection Cu stomer withinthe D U's franchise service area requiring such service. A R ES is not aConnection Customer but may assist its RES customers in matters pertainingto DCAS.2 2 ENGINEERING STANDARDS FOR EQUIPMENT AND CONSTRUCTION

The standards for Distribution Connection Assets and the construction ofconn ections shall be consistent with the Distribution Code. Howeve r, interestedpersons may petition the ERC for the approval of standards related to DCASthat m ay exce ed those set forth in the Distribution Code. Standards exceedingthose in the Distribution Code sha ll not be enforced by the DU on others unlessspecifically appro ved by ERC . In the event the DU believes it is nece ssary in aparticular case to m ake investments that exceed m inimum standards, the DU isallowed to do so but may only recover any additional costs after approval fromERG.


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The minimum standard for distribution facilities shall be the over-head type,unless prescribed by law or ordinances.2 3 STANDARD CONNECTION FACILITIES

Standard Connection Facilities SCF) shall be the minimum facilities necessaryto establish a connection for a typical customer within the Customer Segment.The U shall include its Standard Connection Facilities as part of its applicationfor approval of Standard Connection Charges.The SCF for residential customers shall be the service drop. The SCF for nonresidential customers shall be the service drop, and distributionlpowertransformer if any).

2 4 STANDARD CONNECTION CHARGES2 4 1 TRANSITION TO UNBUNDLED CONNECTION CHARGES

The application for approval of unbundled Standard Connection ChargesSCCs) for each Customer Segment shall be included in the resetapplication of DUs under PBR and in the benchmarking for ECs. Anyfuture general application to adjust rates made shall likewise includeproposed unbundled Standard Connection Charges. A DU shall notimplement or adjust SCCs without ERC approval to do so.The unbundling of Standard Connection Charges is intended to berevenue neutral in the sense that the costs or revenues related to SCCsshall be removed from the unbundled distribution rates or revenuerequirement.

2 4 2 STANDARD CONNECTION CHARGE FOR EACH CUSTOMERSEGMENTEach Customer Segment shall have a Standard Connection Chargebased on the Standard Connection Facilities for that Customer Segment.A Standard Connection Charge shall be uniform across all End-userswithin the Customer Segment of the same load and voltage level. TheDU shall bill for the Standard Connection Charge to the same person orentity responsible for payment of unbundled distribution service or DWS.Applications for the approval of Standard Connection Charges shallinclude all relevant studies and data necessary to support a StandardConnection Charge for each Customer Segment.

2 4 3 METHODOLOGY FOR COMPUTING STANDARD CONNECTIONCHARGEThe methodology used to compute the Standard Connection ChargeSCC) for each Customer Segment of a private DU shall be inaccordance with the RDWR and its amendments.The methodology used to compute the Standard Connection ChargeSSC) for each Customer Segment of an EC shall use the followingformula:


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OPEX CAPEX Ri12Where:

OPEX Payroll + O M

CAPEX Cos t of the facilities

OPEX CAPEX = expenses a ssociated with connections asattributed to that customer segment

is the shortfall, or surplus, in the ConnectionCharge collected for that Connection Assetin the previous year, increased by anamount to reflect the time value of moneycalculated using the CPI or WPI. If i is asurplus, it shall be expresse d as a negative.

2 4 4 ALTERNATIVE METHODOLOGY FOR COMPUTING STANDARDCONNECTION CHARGES

Upo n full implementation of a DU 's Business Separation Plan (BSP) andaccounting separation between DCAS costs and other DistributionSystem costs, the DU may modify the m ethodology specified in 2.4.3 asfollows.Step 1: Compute a total DCAS revenue requirement based on theseparated DCAS accounting costs.Step : Use the INVEST values for each C ustomer Segm ent calculatedin Step 2 of the methodology specified in 2.4.3, weighted by the num berof customers in each Customer Segment, to develop C ustomer Segmentallocation factors (or ratios).Step 3: Multiply the allocation factors from th e p revious step by the totalDCAS revenue requirement to arrive at Customer Segment specificDC AS revenue requirements.Step 4: Compute the SCC for each Customer Segment by dividingDCAS revenue requirement by the approved annual billing determinantfor the Customer S egment.

2 5 NEW CONNECTION POINTS OR MODIFICATION TO EXISTINGCONNECTION POINTS

2 5 1 GENERALSubject to securing the app roval of the D U in the m anner outlined in theDSOAR and in accordance with the process set out in the DistributionCod e, a Connection Applicant may seek:


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(a) A new Connection Agreement for a first Connection Point; or(b) A modification to an existing Connection Agreement for a change inan existing Connection Point or addition of a Connection Point, ineither case by submitting a Connection Application to the DU.

2 5 2 APPLICATION FOR CONNECTIONThe Connection Applicant shall complete a Connection Applicationprovided by the DU in accordance with the DSOAR and DistributionCode involving a new Connection Point or modification to an existingConnection Point, containing all necessary information for the provisionof the required services.

2 5 3 COMPLIANCE WITH PROCESS AND NON-DISCRIMINATIONThe DU and each Connection Applicant shall comply with the processesset out in the DSOAR, Distribution Code and other applicable laws, rulesand regulations for processing of new or modified connectionarrangements. The DU shall process all requests involving connectionsin a timely manner and shall not give preference or discriminate betweendifferent Connection Customers or Connection Applicants, subject to anyreasonable or justifiable exceptions as may be approved by ERC.Likewise the DU shall not give preference or discriminate betweenConnection Customers or Connection Applicants based on aContestable Market End-user s choice of supply.A DU shall not refuse or discontinue service to an applicant or customer,who is not in arrears to the DU, even though there are unpaid bills orcharges due from the premises occupied by the applicant, or customer,on account of an unpaid bill of a prior tenant, unless there is evidence ofconspiracy to defraud the DUIf the said consumer is not the owner of the premises sought to beenergized, he shall be required to submit an undertaking from the ownerof the premises that the said owner shall be jointly and severally liablewith the applicant for any unpaid regular monthly bills incurred by theapplicant, but not to exceed two 2) months. This is in the absence of orinsufficiency of the bill deposit. This provision shall not apply however incase the owner of the premises sought to be energized is a masshousing developer and the subject housing unit is part of the inventory ofthe said developer whereby the consumer-buyer is still amortizing thesame and covered by a pertinent contract to sell.

2 5 4 LOCATION AND MAINTENANCE OF DU S EQUIPMENTThe DU shall have the right, if necessary to construct its poles, lines andcircuits and to place its transformers and other apparatus on the propertyor within the buildings of the customer, at a point or points convenientfor such purpose, and the customer shall further grant the right to theuse of suitable space for the installation of necessary meteringequipment in order that such equipment will be protected from damageby the elements, or through the negligence or deliberate acts of anyperson(s). When the delivery of energy for separate buildings or


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premises is desiredlnecessary, a separate contract between customersand utility shall be required for each point of delivery.In case the distribution utility, pursuant to this section, erects poles andlines on the property of a customer in order to be able to service him, itshall, upon payment of just compensation to the latter, also have theright to connect to said poles and lines any neighbour or neighbours ofsaid customer, who may thereafter also apply for service connectionsand who cannot otherwise be connected or reached.

2 5 5 SERVICE DROPAn electric service drop is defined as the wires with the necessarysupporting structure between the distribution lines of the DU and theservice entrance.All connections and disconnections of service shall be made by the DU.Only one service drop shall be installed for each individual building,except as allowed in the Philippine Electrical Code, duly certified by agovernment authority.Service conductors supplying a building or other structure shall not passthrough the interior of another building or other structure.Service Drops shall meet the requirements of the Philippine ElectricalCode (PEC), local and national government ordinances.For elevated metering centers (EMCs), it includes wires between theEMC installation and the customer's old metering point or to the pointwhere the metering location would have been placed had the customernot been an EMC area.

2 5 6 SERVICE ENTRANCEService entrance is defined as that portion of the customer's wiringincluding all necessary conduits, cable and accessories which extendsfrom the customer's main entrance switch andlor DU's meteringequipment to and including the point of attachment to the DU's servicedrop on the outside of the building property line visible and accessible toauthorized personnel of the utility. The outside terminal of thecustomer's service entrance must be located so as to enable connectionto the service drop at a point nearest to the DU's existing or proposedelectric service facilities.All conduits or pipes, including fittings, which contain wires in the serviceentrance in the portion before electric meter must be surface mountedand clearly visible and not embedded, or free from any holes or cracks,to prevent any bypass connection or other acts of electricity pilferage. Inthe event the conduits, pipes or fittings do not comply with this rule, theelectric utility shall be entitled to require correction of said serviceentrance portion. All cost shall be borne by the utility if 1) the serviceconnection was before the effectivity of this amended DSOAR and noimprovement done on the customer's premises; while 2) all cost shall beborne by customer if the service connection was after the effectivity , or


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non-compliance is a result of improvement done on the customer spremises , otherwise failure on the part of the customer shall entitle theelectric utility to disconnect electric service connection after a thirty (30)day notice.Service entrance shall meet the requirements of the Philippine ElectricalCode (PEC).

2 5 7 UNDERGROUND SERVICEInstallation of any underground facilities shall be subject to the prioragreement between the customer and the DU in accordance with 2.2,2.6.5 and 2 7 4; and shall be installed and maintained in accordance withthe specification(s) prescribed by the PEC.

2 5 8 GROUNDINGThe method of grounding at the User system shall comply with theGrounding Standards and specifications of the Philippine ElectricalCode.

2 6 MODIFICATIONS AND NEW PHYSICAL CONNECTIONS: RESIDENTIAL2 6 1 RIGHT TO EXTENSION OF LINES AND FACILITIES

In accordance with the Magna Carta, a residential End-user locatedwithin thirty (30) meters from the distribution utilities existing secondarylow voltage lines has the right to an extension of lines or installation ofadditional facilities, other than a standard connection facilities, at theexpense of the utility. However, if a prospective customer is beyond thesaid distance and the said project is not included in the forecastedCAPEX of the DU, the customer or developer may advance the amountsnecessary to cover the expenditures on the connection assets beyondthe standard connection facilities.

2 6 2 REFUNDTo recover the aforementioned advanced payment, the customer mayeither demand the issuance from the DU of any financial instrumentsmutually acceptable to the parties or a refund at the rate of seventy-five(75) percent of the gross distribution revenue derived from all customersconnected to the line extension for the calendar year until such amountsare fully refunded or, if the DU is a private corporation, the purchase ofpreferred shares, if available, subject to the approval of Securities andExchange Commission (SEC) on the issuance of such share or, otherfinancial instruments mutually acceptable to the parties. The preferredshares shall be redeemable by the DU within a period of fifteen 15)years. Revenue derived from additional customers tapped directly to thepoles and facilities so extended shall be considered in determining therevenues derived from the extension of facilities.The parties may agree to accelerate the refund of the cash advanceunder mutually acceptable terms provided it will not result in any form of


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cross-subsidies. Only refunded amount shall form part of the DU'sRegulatory Asset Base or plant in service.If replacement becomes necessary at any time for any DistributionConnection Assets paid for by residential End-users or developer, theDU shall be solely responsible for the cost of such replacement whichshall become plant in service in the accounts of the DU, and shall notrequire another advanced payment from the connected residential End-users unless the replacement is due to End-user fault.If the cost of the extension of lines or installation of additional facilitieswas funded by the developer for any project other than socializedhousing, the said cost shall be subject to refund in accordance with thefirst paragraph, provided that said developer shall submit to the DU thefollowing:

1 A sworn statement from the developer or a certification from theHousing and Land Use Regulatory Board (HLURB) that the costthereof was not incorporated in the purchase price of the soldproperties; and

2. An affidavit of publication executed by the editor-in-chief or otherresponsible officer of the newspaper of general circulationwherein an announcement that the cost thereof was notincorporated in the cost of the sold properties was published,together with a copy of the newspaper issue containing thepublished announcement. The affidavit of publication shall alsocontain information on the area or areas where the newspaper isbeing circulated.For socialized housing projects, the developers must submit to the DU acertification issued by the Housing and Land Use Regulatory Board thatthe site of the said project has been identified for socialized housing inaccordance with Republic Act No. 7279, otherwise known as the UrbanDevelopment and Housing Act of 1992 .If the cost of the extension of lines or installation of additional facilitieswas funded gratuitously by other persons for the benefit of the customer,the said assets shall be treated as CIAC.Starting from the effectivity of the foregoing amendment, all existingrefunds for cost of extension of lines and facilities advanced bydeveloperslconsumers shall conform herewith.

2 6 3 DEDICATED TRANSFORMERIf it is necessary to dedicate a transformer to the service of a singleresidential End-user due to the non-standard, large load of thatcustomer, the End-user shall purchase the transformer includingreplacements and shall not be subject to refund. If replacement becomesnecessary the end-user shall be solely responsible for the cost of suchreplacement. This provision does not apply if a dedicated transformer ispart of the Standard Connection Facilities for the End-user's CustomerSegment or in the case of transformers which are dedicated to a singleresidential customer because of the customer is in a geographic location


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where the transformer capacity cannot be shared with other customers.In cases where the transformer dedicated because of the isolated natureof the customer shall be subject to the refund process in section 2.6.2.2 6 4 ENGINEERING AND DESIGN

The DU shall be responsible for the engineering, design, and inspectionof all line extensions required to provide electric service to a residentialEnd-user. The DU shall prepare the design and cost estimateattributable to a line extension within thirty 30) business days followingthe request of a residential End-user or prospective residential End-userand submission of all necessary load data by the End-user. In makingthe request, the End-user shall provide all information pertaining to loadcharacteristics required to develop the design or cost estimate. Thisservice shall be provided by the DU at no charge to the End-user butinstead will become part of the DU s operation and maintenanceexpense accounts for DCAS.2 6 5 MINIMUM FACILITIES

In designing a connection, the DU shall only require the minimumfacilities that are commercially available and consistent with currentERC-approved standards, which are necessary to provide service to theEnd-user. This provision applies to both Standard Connection Facilitiesas described in section 2.3, and connections requiring facilities in excessof the Standard Connection Facilities. If the End-user, or another partyrequests facilities in excess of that which is necessary to meet the End-user s power requirements, then all costs attributable to such excessshall be at the requesting party s sole cost and expense which shall betreated as a CIAC. If the DU installs facilities in excess of that which isnecessary to meet the End-user s power requirements and suchinstallations are necessary to accommodate anticipated growth ofadditional customers, then all costs attributable to such excess shall bepaid for by the DU and shall be subject to the RDWR for DUs under PBRor treated as Electric Plant Held for Future Use for ECs and other DUs.In requesting for facilities in excess of what is necessary to meet powerrequirements, said request of the end-user should be subject to aDistribution Impact Study in accordance with the Philippine DistributionCode. The Distribution Impact Study of the DU should be the basis forthe approvalldisapproval of the customer s request for facilities in excessof what is required.

2 6 6 NEAREST SOURCEThe DU shall design the line extension from the nearest existing sourceof available capacity to the End-user s delivery point along the shortestpractical route provided such source is the standard voltage system ofthe DU and the proposed scheme shall not result in the degradation ofthe DU s Distribution System as provided for in Chapter 5.3.3 of thePhilippine Distribution Code (PDC).


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The DU may, however, design the line extension along an alternativeroute in anticipation of additional customers; and in such situations, alladditional costs attributed specifically to the alternative route shall be atthe DU s sole cost and expense, and shall be subject to the RDWR forDUs under PBR or treated as Electric Plant Held for Future Use for ECsand other DUs

2 6 7 ALTERNATIVE ROUTESSubject to the agreement of the DU, the End-user may request that theline extension be constructed along a route different from the routedesigned by the DU, but the End-user shall be responsible for all costsattributed to such route. Such incremental amounts paid by the End-user shall not be subject to refund, and shall be treated as a Contributionin Aid of Construction.

2 6 8 EASEMENTSThe DU shall design line extensions along existing rights of waywhenever such rights of way are available. With the exception ofresidential End-users located within thirty 30) meters of the existingDistribution System, the End-user shall provide to the DU at no cost anyrights of way for a line extension across property owned or controlled bythe End-user, or procure from other property owners, when such rightsof way are necessary and dedicated to connect the End-user. In theevent that the End-user cannot obtain the required rights of way, the DUmay, by powers of eminent domain or otherwise, obtain rights of way.With the exception of residential End-users located within thirty 30)meters of the existing Distribution System, all cash amounts required toprocure easements shall be advanced by the residential customersubject to the refund mechanism stated in section 2 6 2 The End-usershall submit to the DU all relevant invoices and proof of payment alongwith a sworn affidavit from the End-user that the documents are true andaccurate. The DU shall immediately inform the ERC if it has reason tobelieve that any invoices or proof of payment have been falsified and theERC shall investigate.

2 6 9 MODIFICATION TO EXISTING FACILITIESIf an End-user submits a request to have the DU modify, rearrange,relocate, or remove any of the DU s legally sited facilities for anypurpose that does not result in a net increase in demand or electricityusage, the End-user shall be responsible for all costs attributed to suchwork. Such amounts shall be treated as a ClAC not subject to refund.For modifications to existing facilities in response to a potential orimpending capacity, reliability or safety concerns and are within thedefined Standard Connection Facilities for the End-user s CustomerSegment, the associated cost of such modification shall be that of theDU.


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2 6 10 RIGHT TO PROCURE EQUIPMENT AND CONSTRUCTIONConnection Customers/Applicants shall have the right to select their owncontractor and/or equipment vendor for the equipment, construction andinstallation of Distribution Connection Assets provided that the sameadhere to all requirements of the Distribution Code, the DU s standardsand any other standards approved by ERC. A ConnectionCustomerIApplicant wanting to self-procure equipment and constructionshall only select from contractors that have been accredited by the DUand government authorities. Residential End-users located farther thanthirty 30) meters from the DU s existing secondary voltage lines whoprocure and pay for services and equipment to construct their ownconnection shall be eligible to receive a refund in accordance with 2 6 2The End-user shall submit to the DU all relevant invoices and proof ofpayment along with a sworn affidavit from the End-user that thedocuments are true and accurate. The DU shall immediately inform theERC if it has reason to believe that any invoices or proof of paymenthave been falsified and the ERC shall investigate. Said refund shall notexceed the DU s proposed estimate for constructing the ConnectionAssets or the actual cost incurred by the End-user, whichever amount islower. Because the amounts paid for the construction of a connectionfor a residential End-user are subject to refund, a residential customerutilizing the option to construct their own connection shall pay therelevant Standard Connection Charge approved by ERC.

2 7 MODIFICATIONS AND NEW PHYSICAL CONNECTIONS: NON-RESIDENTIAL2 7 1 RIGHT TO EXTENSION OF LINES AND FACILITIES

A non-residential End-user has the right to an extension of lines orinstallation of additional facilities at the expense of the utility insofar asthe equipment and facilities to be installed are within the levels found inthe Standard Connection Facilities definition used to compute theStandard Connection Charge for that End-user s Customer Segment.2 7 2 NONSTANDARD CONNECTION

A non-residential End-user has the right to an extension of lines orinstallation of additional facilities that exceed the Standard ConnectionFacilities provided that the End-user pays for any facilities in excess ofthe Standard Connection Facilities used to compute the StandardConnection Charge for that End-user s Customer Segment. Specifically,the amount to be paid by the End-user shall equal the cost of theconnection less the cost of the Standard Connection Facilities. Suchpayments for facilities in excess of the Standard Connection Facilitiesare not refundable and shall be treated as a CIAC. The End-user onlypaying CIAC on the amounts in excess of the Standard ConnectionFacilities shall still pay the ERC-approved Standard ConnectionCharges.In the alternative, a DU may provide the connection facilities beyond thestandard connection facilities but subject to connection charges mutually


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acceptable to the parties. The said facilities shall not form part of theDU s Regulatory Asset Base or plant in service.2 7 3 ENGINEERING AND DESIGN

The DU shall be responsible for the engineering, design, and inspectionof all line extensions required to provide electric sewice to a non-residential End-user at the voltage level so desired by the End-user.The DU shall prepare the design and cost estimate attributable to a lineextension within thirty (30) business days following the request of a non-residential End-user or prospective non-residential End-user andsubmission of all necessary load data by the End-user. In making therequest, the End-user shall provide all information pertaining to loadcharacteristics required to develop the design or cost estimate. Thisservice shall be provided by the DU at no charge to the End-user butinstead will become part of the DU s operation and maintenanceexpense accounts for DCAS.

2 7 4 MINIMUM F CILITIESIn designing a connection, the DU shall only require the minimumfacilities that are commercially available and consistent with currentERC-approved standards, which are necessary to provide service to theEnd-user. This provision applies to both Standard Connection Facilitiesas described in section 2.3 and connections requiring facilities in excessof the Standard Connection Facilities. If the End-user or another partyrequests facilities in excess of that which is necessary to meet the End-user s power requirements, then all costs attributable to such excessshall be at the requesting party s sole cost and expense which shall betreated as a CIAC. If the DU requests facilities in excess of that which isnecessary to meet the End-user s power requirements and such requestis necessary to accommodate anticipated growth of additionalcustomers, then all costs attributable to such excess shall be subject tothe RDWR for DUs under PER or treated as Electric Plant Held forFuture Use for ECs nd other DUsIn requesting for facilities in excess of what is necessary to meet powerrequirements, said request of the end-user should be subject to aDistribution Impact Study in accordance with the Philippine DistributionCode. The study will establish if the excess facilities have no negativeimpact on the operation of the system.

2 7 5 NEAREST SOURCEThe DU shall design the line extension from the nearest existing sourceof available capacity to the End-user s delivery point along the shortestpractical route provided such source is the standard voltage system ofthe DU and the proposed scheme shall not result in the degradation ofthe DU s Distribution System as provided for in Chapter 5.3.3 of thePhilippine Distribution Code (PDC).The DU may, however, design the line extension along an alternativeroute when such route best serves the interests of the DU; and in such


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situations, all additional costs attributed specifically to the alternativeroute shall be at the DU s sole cost and expense, and shall be subject tothe RDWR for DUs under PBR or treated as Electric Plant Held forFuture Use for ECs and other DUs.2 7 6 ALTERNATIVE ROUTESSubject to the agreement of the DU, the End-user may request that theline extension be constructed along a route different from the routedesigned by the DU, but the End-user shall be responsible for all costsattributed to such route. Such incremental amounts paid by the End-user shall not be subject to refund, and shall be treated as a Contributionin Aid of Construction.2 7 7 EASEMENTS

The DU shall design line extensions along existing rights of waywhenever such rights of way are available. The End-user shall, withoutreimbursement, procure for the DU any rights of way for a line extensionacross property owned or controlled by the End-user or others whensuch rights of way are necessary to connect the End-user. In the eventthat the End-user cannot obtain the required rights of way, the DU may,by powers of eminent domain or otherwise, obtain rights of way at thesole expense of the End-user.

2 7 8 MODIFICATION TO EXISTING FACILITIESIf an End-user submits a request to have the DU modify, rearrange,relocate, or remove any of the DU s existing facilities for any purposethat does not result in a net increase in demand or electricity usage, theEnd-user shall be responsible for all costs attributed to such work. Suchamounts shall be treated as a ClAC not subject to refund.For modifications to existing facilities n response to a potential orimpending capacity, reliability or safety concerns and are within thedefined Standard Connection Facilities for the End-user s CustomerSegment, the associated cost of such modification shall be that of theDU

2 7 9 RIGHT TO PROCURE EQUIPMENT AND CONSTRUCTIONConnection Customers shall have the right to select t

ResolutionNo.02 Series of 2010 Amended DSOAR 1

Documents

Transcript of ResolutionNo.02 Series of 2010 Amended DSOAR 1