WESM RULES Unofficial Copy October 2014 1

7/25/2019 WESM RULES Unofficial Copy October 2014 1

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R.A. 9136

Electric Power Industry Reform Act of 2001

WHOLESALE ELECTRICITY SPOT MARKET

RULES

(As Amended)

This document incorportes the mendments to the !E"# Rules s ppro$ed ndpu%lished %y the &eprtment of Ener'y in $rious &eprtment (irculrs. The fore'oin'is not n officil copy of the mended !E"# Rules nd is circulted )*R RE)ERE+(E*) T,E P,I-IPPI+E E-E(TRI(IT #AR/ET (*RP*RATI*+ *+-. As such PhilippineElectricity #ret (orportion ssumes no li%ility with respect to use of the sme.



FOREWORD

The !holesle Electricity "pot #ret !E"# Rules est%lishes the %sic rules

re4uirements nd procedures tht 'o$ern the opertion of the Philippine electricity

mret. The !E"# Rules identifies nd reco'ni5es nd sets the responsi%ilities of the

#ret *pertor "ystem *pertor !E"# Prticipnts nd the PE# ord. These

'roups shll comply with nd re %ound %y ll the pro$isions of the !E"# Rules. The

!E"# Rules re intended to %e complimentry with the 7rid (ode nd &istri%ution

(ode ll of which re ment to ensure the de$elopment of n pproprite e4uit%le

nd trnsprent electricity mret lon' with sfe reli%le nd efficient

opertion of the power system.

Repu%lic Act +o. 9136 lso nown s the 8Electric Power Industry Reform Act of 20018

Act mndtes the &eprtment of Ener'y &*E to est%lish the !E"# within one

1 yer from its effecti$ity. The Act lso mndtes the &*E ointly with the electric

power industry prticipnts to formulte the detiled rules for the !E"#.

The !E"# is the mret where trdin' of electricity will %e mde. It shll %e

'o$erned %y the Philippine Electricity #ret ord PE# ord. The PE# ord shll

pro$ide the policies nd 'uidelines of the !E"# contined in the Implementin' Rules

nd Re'ultions of the Act !E"# Rules nd such other rele$nt lws rules nd

re'ultions.

The #ret *pertor non:stoc non:profit or'ni5tion shll dminister the

opertion of the !E"# in ccordnce with the !E"# Rules. )or the first yer the

#ret *pertor;s functions shll %e pro$ided %y the Autonomous 7roup #ret*pertor A7#* under the dministrti$e super$ision of the +tionl Trnsmission

(orportion TRA+"(*. After the first yer the #ret *pertor shll %e n

independent entity. Therefter the dministrti$e super$ision of the TRA+"(* o$er

such entity shll cese.

The !E"# Rules is or'ni5ed into ele$en 11 (hpters. These re<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> i



(hpter 1. Introduction

(hpter 2. Re'istrtion

(hpter 3. The #ret

(hpter >. #eterin'

(hpter ?. #ret Informtion nd (onfidentility

(hpter 6. Inter$ention nd #ret "uspension

(hpter @. Enforcement nd &isputes

(hpter . Rules (hn'e Process

(hpter 9. Interprettion

(hpter 10. Trnsitory Pro$isions

(hpter 11. 7lossry

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> ii



WESM RULES

TABLE OF CONTENTS

Chape! Des"!#p#$n Pa%e

FOREWORD&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&'''iINTRODUCTION 1

' SCOPE OF CHAPTER 1' PURPOSE AND APPLICATION OF RULES 1

'' A*$+ he Ph#,#pp#nes Wh$,esa,e E,e"!#"#- Sp$ ma!.e R+,es 1'' P+!p$se $/ he WESM R+,es 1''0 The Re%+,a$!- F!ame1$!. 2''2 S"$pe $/ App,#"a#$n 3

''3 WESM O*4e"#5es 3'0 MARKET OPERATOR AND SYSTEM OPERATOR 3

'0' Resp$ns#*#,##es $/ he Ma!.e Ope!a$! 3'0' Ma!.e Ope!a$! Pe!/$!man"e ?'0'0 Resp$ns#*#,##es $/ he S-sem Ope!a$! 6

'2 6O7ERNANCE OF THE MARKET @'2' Ph#,#pp#ne E,e"!#"#- Ma!.e (PEM) B$a!d @'2' C$mp$s##$n $/ he PEM B$a!d @'2'0 App$#nmen $ he PEM B$a!d 11'2'2 7$#n% R#%hs 12'2'3 O*,#%a#$ns $/ he PEM B$a!d 13

'2'8 F$!ma#$n $/ C$mm#ees 1>'3 THE PHILIPPINES ELECTRICITY MARKET AUDITOR 1@

'3' App$#nmen $/ he PEM A+d#$! 1@'3' Resp$ns#*#,##es $/ he A+d#$! 1@(Amended as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99) 1@'3'0 Re5#e1 $/ WESM R+,es 1

'8 MARKET SUR7EILLANCE COMMITTEE 1'8' App$#nmen $ he Ma!.e S+!5e#,,an"e C$mm#ee 1'8' Resp$ns#*#,##es $/ he Ma!.e S+!5e#,,an"e C$mm#ee 1'8'0 Des#%n and P!$m+,%a#$n $/ Pena,#es 19

'; TECHNICAL COMMITTEE 20

';' App$#nmen $ he Te"hn#"a, C$mm#ee 20';' Resp$ns#*#,##es $/ he Te"hn#"a, C$mm#ee 20'< ENFORCEABILITY AND AMENDMENT OF THESE RULES 21

'<' En/$!"ea*#,#- 21'<' Chan%es $ he WESM R+,es 21

'= PUBLIC CONSULTATION PROCEDURES 21RE6ISTRATION 23

' SCOPE OF CHAPTER 23' 6ENERAL 23

'' S"$pe $/ App,#"a#$n 23'' Re%#s!a#$n 23

''0 Re%#s!a#$n #n M+,#p,e Cae%$!#es 2>''2 WESM mem*e!s 2>

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'0 CATE6ORIES OF WESM MEMBER 2>'0' 6ene!a#$n C$mpan- 2>'0' C+s$me! 26'0'0 T!ad#n% Pa!#"#pan 26'0'2 Ne1$!. Se!5#"e P!$5#de! 2

'0'3 An"#,,a!- Se!5#"es P!$5#de! 2'0'8 Mee!#n% Se!5#"es P!$5#de! 30'0'; S-sem $pe!a$! 30

'2 INDIRECT WESM MEMBERS 30'3 APPLICATIONS FOR RE6ISTRATION 30

'3' App,#"a#$n p!$"ess 30'3' P!e!e>+#s#es /$! app,#"ans 30'3'0 F+!he! #n/$!ma#$n $ assess app,#"a#$n 31'3'2 App!$5a, $/ app,#"a#$ns 31'3'3 N$#"e $/ app!$5a, $/ app,#"a#$n 32'3'8 N$#"e $/ n$n:app!$5a, $/ app,#"a#$n 32

'3'; Ma!.e Ope!a$! $ ma#na#n a ,#s 33'8 CEASIN6 TO BE A WESM MEMBER 33'8' N$#/-#n% he Ma!.e Ope!a$! 33'8' Dae $/ "essa#$n 33'8'0 N$#/-#n% a,, WESM mem*e!s33'8'2 Ma!.e Ope!a$! n$#/#"a#$n $/ "essa#$n 33

'; SUSPENSION 3>';' 6!$+nds /$! S+spens#$n 3>';' E//e" $/ a s+spens#$n n$#"e 3>

'< DERE6ISTRATION 3>'<' De!e%#s!a#$n $/ a T!ad#n% Pa!#"#pan 3>

'<' O*,#%a#$ns and ,#a*#,##es /$,,$1#n% de!e%#s!a#$n3>

'<'0 De!e%#s!a#$n p!$"ed+!e de5e,$pmen 3?'= INTENDIN6 WESM MEMBERS 3?

'=' Re%#s!a#$n as an Inend#n% WESM mem*e! 3?'=' App,#"a#$ns /$! !e%#s!a#$n 3?'='0 N$#"e $/ "essa#$n $/ !e%#s!a#$n 3?'='2 A"#5##es $/ Inend#n% WESM mem*e!s 3?'='3 R#%hs and $*,#%a#$ns $/ Inend#n% WESM mem*e!s 36

'9 MARKET FEES 36'9' Imp$s#n% Ma!.e Fees36'9' S!+"+!e and Le5e, $/ Ma!.e Fees 36'9'0 6+#d#n% P!#n"#p,es 36'9'2 C$mp$nens $/ Ma!.e Fees 3@'9'3 P+*,#"a#$n $/ Ma!.e Fees S!+"+!e 3@

' BUD6ET 3@'' S+*m#ss#$n $/ ann+a, saemens and $he! d$"+mens 3@

' FINANCIAL YEAR REPORT 3'' Ma!.e Ope!a$! $ p!epa!e !ep$! 3'' P!$5#d#n% "$p- $/ !ep$! 3

THE MARKET >00' SCOPE OF CHAPTER 0 >00' MARKET NETWORK MODEL? TRADIN6 NODES? AND PRICIN6@ONES >0

0'' Ma!.e Ne1$!. M$de, >1

0'' Ma!.e T!ad#n% N$des >20''0 C+s$me! P!#"#n% @$nes >3

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0'0 ANCILLARY SER7ICES >>0'0' In!$d+"#$n >>0'0' An"#,,a!- Se!5#"es C$n!a"#n% *- he S-sem $pe!a$! >?0'0'0 An"#,,a!- Se!5#"es A%!eemens >?0'0'2 Rese!5e Ma!.e A!!an%emens >@

0'0'3 An"#,,a!- Se!5#"es C$s Re"$5e!- >@0'0'8 P!$5#s#$n $/ An"#,,a!- Se!5#"es >90'0'; App!$5a,? Pe!#$d#" Re5#e1 and E5a,+a#$n $/ An"#,,a!- Se!5#"e

A!!an%emens >90'2 MARKET TRADIN6 INTER7AL AND TIMETABLE ?0

0'2' T!ad#n% Ine!5a,s ?00'2' T#mea*,e ?1

0'3 SUBMISSION OF OFFERS? BIDS? AND DATA ?10'3' C$mm+n#"a#$ns $/ O//e!s and B#ds?10'3' Ne1$!. Se!5#"e P!$5#de! Daa ?10'3'0 S-sem $pe!a$! Daa?2

0'3'2 L$ad F$!e"as#n% ?>0'3'3 6ene!a#$n O//e!s and Daa ??0'3'8 C+s$me! Demand B#ds ??0'3'; 6ene!a#$n C$mpan- Rese!5e O//e!s ?60'3'< C+s$me! Rese!5e O//e!s ?@0'3'= Re5#s#$n $/ Sand#n% O//e!sB#ds ?@0'3'9 In##a, se#n% $/ Ma!.e O//e!sB#ds?0'3' Re5#s#$n $/ Ma!.e O//e!sB#ds ?0'3' C$n/#!ma#$n $/ Re"e#p $/ 7a,#d O//e!s and B#ds 600'3'0 O5e!:!#d#n% C$ns!a#ns 60

0'8 MARKET DISPATCH OPTIMI@ATION MODEL 62

0'8' M$de, De/#n##$n62

0'8' C$ns!a#n 7#$,a#$n C$e//#"#ens 6?0'8'0 Ine!p!ea#$n $/ M$de, O+p+s 660'8'2 M$de,#n% App!$#ma#$ns 660'8'3 M$de, De5e,$pmen 6@0'8'8 Ma!.e Se,emen 6@

0'; MARKET PROECTIONS 6@0';' Wee. Ahead P!$4e"#$ns 60';' Da- Ahead P!$4e"#$ns 60';'0 P!epa!a#$n $/ Ma!.e P!$4e"#$ns 60';'2 P+*,#shed In/$!ma#$n @0

0'< SCHEDULIN6 AND DISPATCH IMPLEMENTATION @10'<' Resp$ns#*#,##es $/ he Ma!.e Ope!a$! @10'<' Resp$ns#*#,##es $/ he S-sem $pe!a$! @20'<'0 C$mm+n#"a#$n $/ a!%e ,$ad#n% ,e5e,s @30'<'2 D#spa"hed T!ad#n% Pa!#"#pans @30'<'3 Ramp Rae $/ T!ad#n% Pa!#"#pan @>0'<'8 De5#a#$ns /!$m he Ramp Rae @>0'<'; D#spa"h T$,e!an"es @>0'<'< San"#$ns $/ T!ad#n% Pa!#"#pans @?

0'= TREATMENT OF LOAD SHEDDIN6? ECESS 6ENERATION AND RESER7E 7IOLATION@?

0'=' D#!e"#$n $ C$nd+" L$ad Shedd#n% @?

0'=' Ma!.e Ope!a$! Ad5#"e $n L$ad Shedd#n% @?0'='0 S-sem $pe!a$! Resp$ns#*#,#- $ In##ae L$ad Shedd#n% @6

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0'='2 Ad5#s#n% $/ L$ad Shedd#n% @60'='3 Re5#s#n% F$!e"ass @60'='8 P!#"#n% E!!$! N$#"e @@0'='; Mana%emen $/ L$ad Shedd#n% @@0'='< Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n @@

0'='= Mana%emen P!$"ed+!es /$! Rese!5e 7#$,a#$n @0'9 DETERMINATION OF MARKET PRICES @9

0'9' Ca,"+,a#$n $/ P!#"es @90'9' Dee!m#na#$n $/ E:Ane N$da, Ene!%- P!#"e @90'9'0 Dee!m#na#$n $/ E:Ane @$na, Ene!%- P!#"es @90'9'2 P+*,#sh#n% E:Ane P!#"es A""$!d#n% $ T#mea*,e @90'9'3 P!#"#n% E!!$! N$#"e 00'9'8 Dee!m#na#$n $/ E:P$s N$da, Ene!%- P!#"e 00'9'; P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e 10'9'< Dee!m#na#$n $/ E:P$s @$na, Ene!%- P!#"es 20'9'= Dee!m#na#$n $/ E:Ane And E:P$s Ene!%- Se,emen P!#"es 2

0'9'9Dee!m#na#$n $/ @$na, Rese!5e P!#"e 30' MARKET INFORMATION 30'' Ma!.e In/$!ma#$n 30'' A""ess $ In/$!ma#$n >

0' FINANCIAL TRANSMISSION RI6HTS >0'' Ma!.e /$! T!ansm#ss#$n R#%hs >0'' P+*,#"a#$n $/ Rena, In/$!ma#$n >0''0 F+!he! T!ansm#ss#$n R#%hs ?0''2 Mae!s $ C$ns#de! #n Assessmen ?0''3 Iss+#n% T!ansm#ss#$n R#%hs ?0''8 A""$+n#n% /$! Ne In"$me 6

0'0 SETTLEMENT UANTITIES AND AMOUNTS6

0'0' S+*m#ss#$n $/ B#,ae!a, C$n!a" Daa 60'0' S+*m#ss#$n $/ T!ansm#ss#$n R#%h Daa @0'0'0 Daa /$! B#,ae!a, C$n!a"s and T!ansm#ss#$n R#%hs 0'0'2 @$na, Rese!5e Se,emen +an#-0'0'3 De/#n#n% he 6!$ss E:Ane Ene!%- Se,emen +an#- /$! Ma!.e T!ad#n%

N$des 0'0'8 De/#n#n% he 6!$ss E:P$s Ene!%- Se,emen +an#- /$! Ma!.e T!ad#n%

N$des 900'0'; Ene!%- Se,emen +an#- Ad4+smens /$! B#,ae!a, 910'0'< Dee!m#n#n% he E Ane Ene!%- T!ad#n% Am$+n910'0'= Dee!m#n#n% he E P$s Ene!%- T!ad#n% Am$+n 910'0'9 Dee!m#n#n% he Rese!5e T!ad#n% Am$+n 920'0' Dee!m#n#n% he Rese!5e C$s Re"$5e!- Cha!%e920'0' Ca,"+,a#$n $/ L#ne Rena, T!ad#n% Am$+ns 920'0'0

Dee!m#n#n% he T!ansm#ss#$n R#%hs T!ad#n% Am$+n 930'0'2 Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 930'0'8 T!eamen $/ Rema#n#n% Se,emen S+!p,+s 9?0'0'; Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 1#h B#,ae!a, C$n!a"s 9@

0'2 SETTLEMENT PROCESS 90'2' Se,emens Mana%emen *- Ma!.e Ope!a$! 90'2' E,e"!$n#" F+nds T!ans/e! 990'2'0 Pa-men $/ Se,emen Am$+n 99

0'2'2 P!e,#m#na!- Saemens 990'2'3 F#na, Saemens 100

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0'2'8 Pa-men *- T!ad#n% Pa!#"#pans 1010'2'; Pa-men $ T!ad#n% Pa!#"#pans 1010'2'< D#sp+es 1020'2'= Se,emen Re5#s#$ns 1030'2'9 Pa-men $/ Ad4+smens 10>

0'2' Pa-men De/a+, P!$"ed+!e 10?0'2' Ine!es $n O5e!d+e Am$+ns 10

0'3 PRUDENTIAL REUIREMENTS 100'3' P+!p$se100'3' P!$5#s#$n $/ Se"+!#-100'3'0 F$!m $/ Se"+!#- 1100'3'2 Am$+n $/ Se"+!#- 1110'3'3 Rep,a"emen Se"+!#- 1130'3'8 D!a1d$1n $/ Se"+!#- 11>0'3'; Re/+nd $/ Se"+!#- 11?0'3'< S+spens#$n $/ a WESM mem*e! 11?

0'3'= T!ad#n% L#m#s 11@0'3'9 M$n#$!#n% 110'3' Ma!%#n Ca,,s 1190'3' C$n/#den#a,#- 120

METERIN6 1212' SCOPE OF CHAPTER 2 1212' APPLICATION OF CHAPTER 1212'0 OBLI6ATIONS OF TRADIN6 PARTICIPANTS 121

2'0' O*,#%a#$ns 1212'0' E,e"#$n $/ a Mee!#n% Se!5#"es P!$5#de! *- a T!ad#n% Pa!#"#pan 1222'0'0 Mee!#n% Se!5#"es P!$5#de! O*,#%a#$ns 123

2'2 RE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS123

2'3 METERIN6 INSTALLATION 12>2'3' Mee!#n% Insa,,a#$n C$mp$nens 12>2'3' L$"a#$n $/ Mee!#n% P$#n 12?2'3'0 Mee! A""+!a"- 12?2'3'2 Use $/ Mee!s 12?2'3'3 Se"+!#- $/ Mee!#n% E>+#pmen 1262'3'8 Se"+!#- $/ Mee!#n% Daa He,d #n a Mee!#n% Insa,,a#$n 12@2'3'; Pe!/$!man"e $/ Mee!#n% Insa,,a#$ns 12@2'3'< Mee! T#me 12@

2'8 METERIN6 DATA 122'8' Chan%es $ Mee!#n% Daa 122'8' Daa T!ans/e! and C$,,e"#$n12

2'; DERE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS 1292';' Se,emen 1#h #na""+!ae mee!#n% #n/$!ma#$n 1292';' San"#$ns /$! #na""+!ae mee!#n% #n/$!ma#$n 1292';'0 N$#"e /$,,$1#n% mae!#a, *!ea"h $/ WESM R+,es 1292';'2 De!e%#s!a#$n /$,,$1#n% +neh#"a, a" 1292';'3 E//e" $/ de!e%#s!a#$n /$! +neh#"a, a" 130

2'< DATABASES 1302'<' Insa,,a#$n Daa*ases1302'<' Mee!#n% Daa*ase 1302'<'0 R#%hs $/ A""ess $ Mee!#n% Daa 131

2'<'2 C$n/#den#a,#-1312'<'3 Pa-men /$! A""ess $ Mee!#n% Daa 131

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2'= DATA 7ALIDATION AND SUBSTITUTION 1322'9 PROCESSES AND RE7IEW 1322' TRANSITORY PRO7ISION 132

MARKET INFORMATION AND CONFIDENTIALITY 1333' SCOPE OF CHAPTER 3 133

3' MARKET INFORMATION AND CONFIDENTIALITY 1333'' P!$5#s#$n $/ In/$!ma#$n 1333'' S-sems and P!$"ed+!es 13>3''0 Pa!#"#pan Daa 13?3''2 P,ann#n% and Des#%n Daa 13?3''3 In/$!ma#$n Re"$!ds 13?3''8 Ma!.e A+d# 13?

3'0 CONFIDENTIALITY 13@3'0' C$n/#den#a,#-13@3'0' E"ep#$ns 13@3'0'2 Indemn#- $ he Ma!.e Ope!a$! 1>0

3'0'3 S+!5#5a, 1>03'0'8 The Ma!.e Ope!a$! In/$!ma#$n 1>03'0'; T#mea*,e 1>1

INTER7ENTION AND MARKET SUSPENSION 1>28' SCOPE OF CHAPTER 8 1>28' O7ER7IEW 1>2

8'' P!epa!a#$n and Resp$nses 1>28'' Eemp#$n /!$m L#a*#,#- d+e $ Ma!.e S+spens#$n and Ine!5en#$n1>38''0 Adm#n#se!ed P!#"e Cap 1>>

8'0 EMER6ENCIES 1>>8'0' Eme!%en"- 1>>

8'0' Eme!%en"- P!$"ed+!es1>6

8'2 EMER6ENCY PLANNIN6 BY WESM PARTICIPANTS 1>8'2' WESM Pa!#"#pan Eme!%en"- C$na"s 1>8'2' WESM Pa!#"#pan P!$"ed+!es 1>8'2'0 Eme!%en"- P!$"ed+!es A1a!eness 1>

8'3 RESPONSE TO AN EMER6ENCY 1>98'3' De",a!a#$ns and D#!e"#$ns #n an Eme!%en"- 1>98'3' Ine!5en#$n D+e $ Eme!%en"- 1?1

8'8 SYSTEM SECURITY 1?18'8' S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes 1?18'8' N$#"e $/ Th!ea $ S-sem Se"+!#- 1?28'8'0 Resp$nse $ S-sem Se"+!#- Th!ea 1?38'8'2 Ma!.e Resp$nse $ Th!ea $ S-sem Se"+!#- 1?38'8'3 Ine!5en#$n D+e $ S-sem Se"+!#- Th!ea 1?>

8'; FORCE MAEURE 1??8';' F$!"e ma4e+!e e5en1??8';' F$!"e ma4e+!e e5en 1??8';'0 N$#/#"a#$n 1?68';'2 O*,#%a#$ns $/ WESM Pa!#"#pans 1?6

8'< BUSINESS CONTINUITY PLAN AND DISASTER RECO7ERY PROCEDURES OF THEMARKET OPERATOR 1?6

8'<' De5e,$pmen $/ B+s#ness C$n#n+#- and D#sase! Re"$5e!- P!$"ed+!es1?6

8'<' S#m+,a#$ns 1?@ 8'= MARKET SUSPENSION 1?

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8'=' C$nd##$ns /$! S+spens#$n $/ he Ma!.e 1?8'=' De",a!a#$n $/ Ma!.e S+spens#$n 1?8'='0 E//e" $/ Ma!.e S+spens#$n 1?8'='2 Ine!5en#$n Rep$! 1?98'='3 Ma!.e S+spens#$n Rep$! 160

ENFORCEMENT AND DISPUTES 161;' SCOPE OF CHAPTER ; 161;' ENFORCEMENT 161

;'' C$mp,#an"e 161;'' B!ea"hes $/ he WESM R+,es *- WESM mem*e!s' 162;''0 A,,e%ed B!ea"hes $/ he WESM R+,es *- he Ma!.e Ope!a$! $! S-sem

Ope!a$! 16>;''2 In5es#%a#$ns 16?;''3 San"#$ns 16@;''8 A"#$ns *- A%ens? Emp,$-ees $! O//#"e!s $/ Pa!#"#pans 16@;''; P+*,#"a#$n 16@

;''< App$#nmen $/ an En/$!"emen and C$mp,#an"e O//#"e! 16@;''= Des#%na#$n $/ a C$mp,#an"e O//#"e! /$! WESM Mem*e!? Ma!.e Ope!a$! andS-sem Ope!a$! 16@

;'0 DISPUTE RESOLUTION 169;'0' App,#"a#$n and 6+#d#n% P!#n"#p,es 169;'0' App$#nmen $/ D#sp+e Res$,+#$n Adm#n#s!a$! (DRA) 1@1;'0'0 D#sp+e Mana%emen P!$$"$, 1@2;'0'2 A""!ed#a#$n and Se,e"#$n $/ Med#a$!s and A!*#!a$!s 1@3;'0'3 D#sp+e Res$,+#$n P!$"ess 1@>;'0'8 D#sp+es A*$+ Pa-men 1@?;'0'; D#sp+es A//e"#n% F#na, Saemens 1@6

;'0'< Le%a, Rep!esena#$n1@6

;'0'= C$s $/ D#sp+e Res$,+#$n 1@6;'0'9 E//e" $/ Res$,+#$n 1@@;'0' Re"$!d#n% and P+*,#"a#$n 1@@;'0' L#m#a#$n $/ L#a*#,#-1@

RULE CHAN6E 1@9<' SCOPE OF CHAPTER < 1@9<' RULE CHAN6E COMMITTEE 1@9

<'' Esa*,#shmen $/ R+,e Chan%e C$mm#ee 1@9<'' C$mp$s##$n $/ R+,e Chan%e C$mm#ee 1@9<''0 Mem*e!sh#p !e>+#!emens : PEM B$a!d 1@9<''2 Te!m#na#$n 10<''3 App$#nmen e!m#na#$n 10<''8 Res#%na#$n 10<''; C$nd+" $/ mee#n%s 10<''< Ad5#"e and ass#san"e 10<''= R+,es Chan%e C,ass#/#"a#$n and P!$"ed+!es 11

<'0 REFERRAL OF MATTERS TO THE RULE CHAN6E COMMITTEE 11<'0' R+,e "han%e p!$p$sa,s 11<'0' F$!m $/ s+*m#ss#$n 11<'0'0 PEM B$a!d $*,#%a#$ns 12

<'2 CONSIDERATION OF PROPOSED RULES CHAN6E BY THE RULES CHAN6ECOMMITTEE 12

<'2' Assessmen $/ p!$p$sed R+,e "han%e 12<'2' D#s"!e#$ns 1hen assessmen p!$p$sed R+,e "han%e 12

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> iB



<'2'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a 13<'2'2 N$#/#"a#$n /$,,$1#n% sa#s/-#n% "!#e!#a 13<'2'3 S+*m#ss#$ns !e%a!d#n% p!$p$sed R+,e "han%e 13<'2'8 C$ns#de!a#$n $/ s+*m#ss#$ns 13<'2'; App!$5a, $/ p!$p$sed R+,e "han%e 1>

<'3 CONSIDERATION OF PROPOSED RULES CHAN6ES BY THE PEM BOARD 1><'3' PEM B$a!d assessmen $/ p!$p$sed R+,e "han%e 1><'3' PEM B$a!d d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e 1><'3'0 N$#/#"a#$n /$,,$1#n% +ns+""ess/+, p!$p$sa, 1><'3'2 App!$5#n% and s+*m##n% p!$p$sed R+,e "han%e /$! app!$5a, 1?

<'8 APPRO7AL OF PROPOSED RULE CHAN6ES BY THE DOE 1?<'8' DOE assessmen $/ p!$p$sed R+,e "han%e 1?<'8' DOE d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e 16<'8'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a 16<'8'2 App!$5a, $/ p!$p$sed R+,e "han%e 16<'8'3 Rep$! *- he R+,es Chan%e C$mm#ee 1@

<'; RULES CHAN6E COMMITTEE INDEMNITY 1INTERPRETATION 19=' 6ENERAL 19=' TIME AND DATES 190='0 ASSI6NMENT 191='2 WAI7ER 191='3 PAYMENT 191

='3' Meh$d $/ pa-men 191='3' Ine!es !aes 191

='8 NOTICES 192='8' P!$pe!,- %#5#n% n$#"es192

='8' N$#"es !eaed as *e#n% %#5en192

='8'0 F$!m $/ n$#"e193='8'2 Ca,"+,a#n% a spe"#/#ed pe!#$d /$! n$#"es 193='8'3 6ene!a, 19>

='; RETENTION OF RECORDS AND DOCUMENTS 19>='< SE7ERABILITY 19>

TRANSITORY PRO7ISIONS 19?9' PURPOSE AND SCOPE 19?

9'' P+!p$se19?9'' S"$pe $/ App,#"a#$n 19?

9' MARKET TRANSITION 19?9'' Esa*,#shmen $/ he Wh$,esa,e E,e"!#"#- Sp$ ma!.e19?9'' The Ma!.e Ope!a$! 19?9''0 The 6$5e!n#n% B$a!d 1969''2 Mem*e!sh#p $ he WESM 1969''3 P!#"e Dee!m#na#$n Meh$d$,$%- 19@

9'0 PRO7ISIONS FOR THE INTERIM WESM 19@9'0' Sp$ ma!.e T!ad#n% 19@9'0' An"#,,a!- Se!5#"es 199'0'0 Ma!.e D#spa"h Op#m#a#$n M$de, 199'0'2 Mee!#n% 19

9'2 ACTIONS TO BE TAKEN PRIOR TO SPOT MARKET COMMENCEMENT DATE 1999'2' S#%n#/#"an 7a!#a#$ns 199

9'2'Ma!.e Ope!a$! Pe!/$!man"e 1999'2'0F$!m+,a#$n $/ PEM B$a!d B-:,a1 200

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> B



9'2'2Dee!m#na#$n $/ Ma!.e Ne1$!. M$de, 2009'2'3Dee!m#na#$n $/ Ma!.e T!ad#n% N$des 2019'2'8 Dee!m#na#$n $/ C+s$me! P!#"#n% @$nes 2019'2';An"#,,a!- Se!5#"es 2029'2'<T#mea*,e 20>

9'2'= L$ad F$!e"as#n% 20>9'2'9Ma!.e D#spa"h Op#m#a#$n M$de, 20>9'2' C$ns!a#n 7#$,a#$n C$e//#"#ens 20?9'2'D#spa"h T$,e!an"es 20?9'2'0 Mana%emen P!$"ed+!es D+!#n% L$ad Shedd#n% 2069'2'2 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n2069'2'3 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n2069'2'8 P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e 2069'2'; Eme!%en"- P!$"ed+!es 20@9'2'<Ha!m$n#a#$n 20@9'2'= The Te"hn#"a, W$!.#n% 6!$+p (TW6) 20@

6LOSSARY 209 APPENDICES 231APPENDI A 231APPENDICES TO CHAPTER 0 231Append# A'In/$!ma#$n $ *e S+pp,#ed 1#h O//e!s $ S+pp,- and $ B+- E,e"!#"#-

231A' 6ene!a#$n O//e!231A' Rese!5e O//e!s 231A'0 Demand B#ds 232

Append# A' In/$!ma#$n $ *e S+pp,#ed *- Ne1$!. Se!5#"e P!$5#de! 233APPENDI B 23>

APPENDICES TO CHAPTER 223>

Append# B' Mee!#n% Re%#se! 23>B' 6ene!a, 23>B' Mee!#n% !e%#se! #n/$!ma#$n 23>

Append# B' Insa,,a#$n 23?APPENDI C 23@APPENDICES TO CHAPTER ; 23@

Append# C : C,ass#/#"a#$n $/ R+,es 23@

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> Bi



CHAPTER

INTRODUCTION

' SCOPE OF CHAPTER

Purpose of the WESM RulesC

% Prties %ound %y the WESM RulesC

c Responsi%ilities of the Market Operator

d Responsi%ilities of the System Operator

e (omposition nd functions of the PEM Board C

f Responsi%ilities of the PEM Auditor

' Responsi%ilities of the Market Surveillance CommitteeC

h Responsi%ilities of the Technicl (ommitteeC nd

i Pu%lic consulttion procedures.

' PURPOSE AND APPLICATION OF RULES

'' A*$+ he Ph#,#pp#nes Wh$,esa,e E,e"!#"#- Sp$ ma!.e R+,es

1.2.1.1 This document shll %e nown s the !holesle Electricity

Spot market Rules ("WESM Rules").

1.2.1.2 )ormulted ointly with electric power industry

prticipntsC

1.2.1.3 Promul'ted %y the OE C

1.2.1.> In the WESM Rules words nd phrses tht pper in

itlics re defined in the 'lossry in chpter 11.

1.2.1.? The WESM Rules shll %e interpreted in ccordnce with

the pro$isions of chpter 9 o%ecti$es of the Act ndother pro$isions of lw.

'' P+!p$se $/ he WESM R+,es

The WESM Rules re promul'ted to implement the pro$isions of the

Act its Implementin' Rules nd Re'ultions nd other relted lws s

well s to<

Promote competitionC

% Pro$ide n efficient competiti$e trnsprent nd reli%le spot

market!

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1



c Ensure efficient opertion of the WESM %y the Market Operator in

coordintion with the System Operators wy which<

1 #inimi5es d$erse impcts on system security C

2 Encour'es mret prticiptionC nd

3 En%les ccess to the spot market.

d Pro$ide cost:effecti$e frmewor for resolution of disputes

mon' WESM Participants nd %etween WESM Participants nd

the Market Operator

e Pro$ide for de4ute snctions in cses of %reches of the WESM

Rules

f Pro$ide efficient trnsprent nd fir processes for mendin' the

WESM Rules

' Pro$ide for the terms nd conditions to which entities my %e

uthori5ed to prticipte in the WESMC

h Pro$ide the uthority nd 'o$ernnce frmewor of the PEM Board C

nd

i Encour'e the use of en$ironment:friendly renew%le sources of

ener'y in ccordnce with the Act.

''0 The Re%+,a$!- F!ame1$!.

1.2.3.1 The Act mndtes the &eprtment of Ener'y OE to

promul'te the detiled rules for the WESM which it shll

formulte ointly with the Electric Power Industry

Prticipnts.

1.2.3.2 To ensure 'reter supply nd rtionl pricin' of

electricity the Act pro$ides the Ener'y Re'ultory

(ommission (ERC) the uthority to enforce the rules nd

re'ultions 'o$ernin' the opertions of the electricity spot

market nd the cti$ities of the spot Market Operator nd

other prticipnts in the spot market.

1.2.3.3 The WESM Rules form prt of the re'ultory frmewor

which is pplic%le to the owners opertors nd users of

the po#er system under the Act.

1.2.3.> *n mtters pertinin' to finncil nd technicl stndrds

set for $eneration Companies %RA&SCO! istri'utiontilities nd "uppliers inconsistencies %etween the




WESM Rules the $rid Code nd the istri'ution Code

my %e referred to the ERC for resolution only.

''2 S"$pe $/ App,#"a#$n

Pursunt to "ection 30 of the Act ll WESM Participants shll comply

with the WESM Rules nd pplic%le lws or re'ultions of the

Philippines.

''3 WESM O*4e"#5es

The o%ecti$es of the spot market re to est%lish competiti$e

efficient trnsprent nd reli%le mret for electricity where<

A le$el plyin' field eBists mon' WESM ParticipantsC

%Trdin' of electricity is fcilitted mon' !E"# Prticipnts within

the spot mretC

c Third prties re 'rnted ccess to the power system in

ccordnce with the Act

d Prices re 'o$erned s fr s prctic%le %y commercil nd

mret forcesC nd

e Efficiency is encour'ed.

'0 MARKET OPERATOR AND SYSTEM OPERATOR '0' Resp$ns#*#,##es $/ he Ma!.e Ope!a$!

1.3.1.1 The Market Operator shll 'enerlly nd non:restricti$ely

h$e the followin' functions nd responsi%ilities<

Administer the opertion of the WESM in

ccordnce with the WESM RulesC

% Allocte resources to en%le it to operte nd

dminister the WESM on non:profit %sisC

c &etermine the disptch schedule of ll

fcilities in ccordnce with the WESM Rules. "uch

schedule shll %e su%mitted to the System

Operator .

d #onitor dily trdin' cti$ities in the mret.

e *$ersee trnsction %illin' nd settlement

proceduresC nd

f #intin nd pu'lis re'ister of ll WESMParticipants nd updte nd pu%lish the re'ister




whene$er person or entity %ecomes or ceses to

%e WESM Participant.

1.3.1.2 In performin' cluse 1.3.1.1 d te Market Operator

shll<

&etermine whether or not such trdin' is performed

in ccordnce with the WESM RulesC

% Identify ny si'nificnt $ritions in nd %etween

tradin* intervalsC nd

c Identify ny pprent or suspected incidents of

anti+ competitive %eh$ior %y ny WESM Mem'er .

1.3.1.3 The Market Operator shll in consulttion with

WESM Participants! de$elop 'uidelines s to wht

constitutes si'nificnt $rition.

1.3.1.> If the Market Operator identifies ny si'nificnt $ritions

the Market Operator shll prepre nd pu'lis report

eBplinin' the identified si'nificnt $ritions within ten

'usiness days from the co'ni5nce thereof.

1.3.1.? The Market Operator shll pro$ide printed copy of the

completed report referred to in cluse 1.3.1.> to<

The OE nd the ERCC

% The PEM Board C nd

c WESM Mem'ers nd interested entities on re4uest.

1.3.1.6 !here the WESM Rules re4uire the Market Operator to

de$elop procedures processes or systems the Market

Operator shll do so fter tin' into considertion the

liely costs to WESM Participants of complyin' with those

procedures or processes nd of o%tinin' instllin' or

doptin' those systems s the cse my %e nd consistent

with the purpose set forth in cluse 1.2.2the Market

Operator my recommend chn'es to these

procedures in ccordnce with the Rule (hn'e process set

out in (hpter .

1.3.1.@ The Market Operator shll<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> >



(omply with ech of the re4uirements nd

o%li'tions imposed on it under the WESM Rules

$rid Code nd other pplic%le lws or re'ultionsC

% Implement the trnsitory pro$ision specified in

(hpter 10C

c Perform those ctions tht re re4uired to %e ten

prior to the spot market commencement date s

specified in the WESM Rules nd cluse 10.> hereofC

nd

d &e$elop pproprite cost reco$ery processes to

co$er its li%ilities in the e$ent of dm'e or inury

which my %e cused %y its cts or omissions in the

fithful performnce of its functions.

1.3.1. The Market Operator shll ensure tht the dispatc

scedules comply with ny constrints notified %y the

System Operator in ccordnce with cluse 6.6.1.

'0' Ma!.e Ope!a$! Pe!/$!man"e

1.3.2.1 In eBercisin' its discretions nd performin' its o%li'tions

under the WESM Rules the Market Operator shll<

Act in ccordnce with ny stndrd of

performnce pro$ided for %y ny sttute re'ultion

or autori,ation condition to which the Market

Operator is su%ectC

% Act in reson%le nd prudent mnnerC

c Act in 'ood fithC

d Te into considertion ct consistently with nd

use its reson%le ende$ors to contri%ute towrds

the chie$ement of the !E"# o%ecti$esC nd

e Ensure n udit tril of documenttion tht is fully

de4ute to su%stntite nd reconstruct ll

rele$nt ctions performed.

1.3.2.2 (luse 1.3.2.1 does not pre$ent the Market Operator

from performin' ny o%li'tion under the WESM Rules.

1.3.2.3 The PE# ord shll de$elop performnce stndrds whichmonitor nd pro$ide n indiction of the Market

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> ?



Operator-s performnce with respect to<(As amended *-

DOE DC N$' 99:90:9992 daed Ma!"h 99)

The Market Operator-s responsi%ilities under the

Act its Implementin' Rules nd Re'ultions IRR

the WESM Rules the Philippine 7rid (ode the 7rid

(ode nd ll other pplic%le lws rules nd

re'ultionsC(As amended *- DOE DC N$' 99:90:

9992 daed Ma!"h 99)

% The chie$ement of the o%ecti$es of the Act nd

the !E"#C nd (As amended *- DOE DC N$' 99:

90:9992 daed Ma!"h 99)

c The stndrds %y which the Market Operator hs

%een selected in ccordnce with terms of

reference ndDor the contrct of its selection s n

Independent #ret *pertor. (Added as pe! DOE

DC' N$' 99:90:9992 daed Ma!"h 99)

E$ery yer the PE# ord shll pu%lish #ret *pertor

Performnce Report in ccordnce with herein cluse.

(Added as pe! DOE DC' N$' 99:90:9992 daed

Ma!"h 99)

The #ret *pertors performnce stndrds shll %e

re$iewed nd ppro$ed %y the &*E. (Added as pe! DOE

DC' N$' 99:90:9992 daed Ma!"h 99)

'0'0 Resp$ns#*#,##es $/ he S-sem Ope!a$!

=nder these Rules the System Operator shll h$e the followin'

functions nd responsi%ilities<

e responsi%le for nd operte the po#er system in ccordnce

with the WESM Rules the $rid Code nd ny instruction issued %y

the Market Operator or the ERC.

% Pro$ide central dispatc to ll 'enertion fcilities nd lods

connected directly or indirectly to the trnsmission system in

ccordnce with the dispatc scedule su%mitted %y the Market

Operator.




c (ontri%ute towrds the de$elopment of procedures processes or

systems or to ssist with ny spect of the opertion of the spot

market! in coordintion with the Market Operator .

d Implement the trnsitory pro$isions specified in (hpter 10C nd

e Perform those ctions tht re re4uired to %e ten prior to the

spot market commencement date s specified in the WESM Rules

nd cluse 10.>.

'2 6O7ERNANCE OF THE MARKET

The WESM 'o$ernnce is the process %y which decisions re mde nd

implemented within the mret to ensure ttinment of the !E"# o%ecti$es

under cluse 1.2.?.

'2' Ph#,#pp#ne E,e"!#"#- Ma!.e (PEM) B$a!d

1.>.1.1 The WESM shll %e 'o$erned nd its powers nd

functions eBercised %y the PEM Board .

1.>.1.2 In ddition to the powers of corportion under the

(orportion (ode nd those stted herein the PEM Board

shll h$e ll powers necessry con$enient nd incidentl

to the performnce of its functions nd responsi%ilities inccordnce with the WESM Rules.

1.>.1.3 In performin' its functions the PEM Board shll ct in

reson%le ethicl nd prudent mnner which fcilittes

n efficient competiti$e trnsprent nd reli%le spot

market nd is consistent with the WESM o%ecti$es.

1.>.1.> The PEM Board my dele'te ny of its functions

o%li'tions nd powers to committee or other entity in

circumstnces when it is reson%le t its ud'ment to

do so.

1.>.1.? The PEM Board shll conduct its %usiness cti$ity in ccordnce

with its Articles nd y:lws nd other pplic%le

lws rules or re'ultions.

'2' C$mp$s##$n $/ he PEM B$a!d

1.>.2.1 (omposition of the PEM Board shll %e in ccordnce with

the followin' criteri<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> @



Ech sectors of the electric power industry shll

%e represented in the PEM Board C

% The num%er of representti$es of ech sector of the

Philippine electric power industry should %e such

tht no one sector of the industry cn dominte

proceedin's or decision:min' %y the PEM Board C

nd %e selected in such wy tht dedlocs in

decision:min' processes should %e $oidedC

c There should %e sufficient independent directors

ppointed to the PEM Board to %lnce the num%er

of directors representin' the Philippines electric

power industryC nd

d e set out in detil in cluse 1.>.2.> so s to reflect

nd %e consistent with the criteri stted herein.

1.>.2.2 If t ny time the structure or si5e of the Philippine

electric power industry or ny sector within it chn'es so

tht the detiled composition of the PEM Board s set out

in cluse 1.>.2.> is no lon'er reflecti$e of or consistent

with cluse 1.>.2.1 cluse 1.>.2.> shll %e mended in

ccordnce with the Rules chn'e process in chpter nd

conse4uentil chn'es to the PEM Board shll %e mde s

soon s prctic%le so tht the PEM Board reflects nd is

consistent with the principles set out in cluse 1.>.2.1.

1.>.2.3 )or the purposes of this cluse 1.>.2 the electric power

industry is comprised of the followin' sectors $i5.<

&istri%utionC

% 7enertionC

c TrnsmissionC

d "upply sle nd purchse %y entities other thn those

which underte cti$ities in the distri%ution

'enertion nd trnsmission sectors.

1.>.2.> The PEM Board shll consist of<

*ne 1 &irector representin' the Market Operator

% *ne 1 &irector representin' the +tionlTrnsmission (ompny(%RA&SCO)

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201>



c )our > irectors who re nominted %y WESM

mem'er s re'istered under cluse 2.3.> s

istri'ution tilities pro$ided tht<

1 Two 2 of those irectors re

representti$es of nd nominted %y Electric

CooperativesC nd

2 Two 2 of those irectors re

representti$es of nd nominted %y

istri'ution tilities which re not Electric

CooperativesC

d *ne 1 irector who is representti$e of nd

nominted %y Customers includin' %ut not limited

to "uppliersC

e )our > &irectors who re representti$es of nd

nominted %y 7enertion (ompnies re'istered

under cluse 2.3.1C

f )our > irectors who re<

1 Independent of the Philippines electric

power industry nd the 7o$ernmentC

2 +ot eli'i%le to %e ppointed s

representti$e under cluses1.>.2.3 %

c or dC nd

3 +ominted %y WESM mem'er sC

(*) A (hirperson who is one of the four independent

&irectors of the PEM Board nd who is elected %y

mority of ll mem%ers of the PEM Board . The

first (hirperson of the PEM Board howe$er shll

%e the OE "ecretry in ccordnce with the

Implementin' Rules nd Re'ultions of the Act.

All of the %o$e representti$es shll formlly %e

ppointed in ccordnce with cluse 1.>.3.

1.>.2.? A irector of the PEM Board my only ser$e on the PEM

Board t ny point in time s representti$e of one

cte'ory of representti$e under cluse 1.>.2.>.




1.>.2.6 A compny firm or %usiness which is represented on the

PEM Board Fn one cte'ory under cluse 1.>.2.> my not

%e represented %y n indi$idul in ny other cte'ory

under cluse 1.>.2.> re'rdless of whether the compny

firm or %usiness hs interests in more thn one sector of

the Philippines electricity industry.

1.>.2.@ )or the purposes of this cluse 1.>.2 person is deemed

to %e independent of the Philippine electric power

industry if tht person<

Is not director officer employee contrctor

'ent mn'er or shreholder of WESM mem'er

(As amended *- DOE DC N$' 998:9:999 daed

9 an+a!- 998)

% Is not relti$e of person within the fourth ci$il

de'ree of consn'uinity or ffinity of director

officer mn'er shreholder of WESM mem'er


9 an+a!- 998)

c Is not n officer mn'er director or shreholder

'ent employee or contrctor of or is not person

directly or indirectly throu'h one or more

intermediries controls is controlled %y compny

ffilite or ny other entity relted to or ssocited

with !E"# mem%er where<(As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

1 A relted compny or %ody is prent

holdin' compny su%sidiry or ffilite of the

!E"# mem%erC nd(As amended *- DOE DC

N$' 998:9:999 daed 9 an+a!- 998)

2 An ssocite is person who is director

officer mn'er or shreholder of tht

relted compny or entity or relti$e of

such person within the fourth ci$il de'ree

of ffinity or consn'uinityC(As amended *-


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DOE DC N$' 998:9:999 daed 9

an+a!- 998)

d ,s not %een employed s n officer or ny

super$isory or mn'eril cpcity %y ny

electric power industry prticipnt or

compny or %ody relted to or ssocited with

!E"# mem%er within one yer prior to the

nomintion dteC nd(As amended *- DOE DC N$'

993::99 daed N$5em*e! 993 and

/+!he! amended *- DOE DC N$' 998:9:999

daed 9 an+a!- 998)

e A'rees not to %e employed %y nd does not ccept

employment with ny electric power industry

prticipnt or compny or %ody relted to or

ssocited with WESM mem'er s defined in

cluse 1.>.2.@ c within one yer fter the person

ceses to %e &irector.

The term shreholder s used in this (luse 1.>.2.@ %

nd c shll %e understood to eBclude(Added as pe! DOE

DC N$' 998:9:99 daed 9 an+a!- 998)

A mem%er of n Electric (ooperti$e who is not

in$ol$ed in the opertion nd mn'ement of the

sme Electric (ooperti$eC nd

% n End:user who is re4uired to su%scri%e to or to

purchse shre in &istri%ution =tility s n

incident to the pro$ision of ser$ice %y the sme

&istri%ution =tilityC pro$ided tht the interest of

the End: user %e not more thn the minimum

re4uired to $il of the &istri%ution =tilitys

ser$ices.

'2'0 App$#nmen $ he PEM B$a!d

1.>.3.1 The directors of the PEM Board shll %e ppointed %y the

OE in ccordnce with the re4uired composition of the

PEM Board s set out in cluse 1.>.2 h$in' re'rd to theeBpertise necessry for the PEM Board to crry out its




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functions nd ny rele$nt pro$isions of the (orportion

(odes of the Philippines in reltion to the ppointment of

directors.

1.>.3.2 !ith effect from the dte on which the Independent

Market Operator ssumes the duties functions nd

responsi%ilities of the A$MO ll new ppointments or re:

ppointments of irectors nd the Cairperson of the PE#

Board re to %e mde in ccordnce with the re4uired

composition of the PEM Board s set out in cluse 1.>.2.

'2'2 7$#n% R#%hs

1.>.>.1 =nless eBpressly stted otherwise herein pro$isions of

the (orportion (ode shll pply pro$ided tht<

A mority of the totl num%er of irectors ech

h$in' one $ote shll constitute 4uorum for the

trnsction of %usiness of the PEM Board .

% E$ery decision of t lest mority of $otes of

&irectors present in meetin' shll %e $lid s PEM

Board ct. If $otin' is e4ul the Cairperson hs

cstin' $oteC

c &irectors cnnot ttend or $ote %y proBy t %ord

meetin's.

1.>.>.2 A irector or the sector or compny tht he represents who<

,s direct or indirect mteril pecuniry interest

in mtter %ein' considered or is %out to %e

considered %y the PEM Board C nd

% The interest my or my reson%ly %e considered

to %e in conflict with the proper performnce of the

irector-s duties in reltion to the considertion of

the mtter shll s soon s prctic%le fter the

rele$nt fcts %ecome nown or ou'ht reson%ly

to h$e %een nown shll disclose the nture of

the interest t meetin' of the PEM Board .

1.>.>.3 A disclosure under cluse 1.>.>.2 shll %e recorded in the

minutes of the meetin' nd unless the PEM Board otherwise determines the &irector.




"hll not %e present durin' ny deli%ertion of the

PEM Board in reltion to tht mtterC nd

% "hll not te prt in ny decision of the PEM Board

in reltion to tht mtter.

1.>.>.> +otwithstndin' cluse 1.>.>.2 irector ppointed to

the PEM Board s representti$e of sector of the

Philippine electric power industry is permitted to te into

considertion mtters rele$nt to tht sector of the

industry when considerin' nd decidin' on mtters %efore

the PEM Board .

'2'3 O*,#%a#$ns $/ he PEM B$a!d

1.>.?.1 The PE# ord shll t ll times<

)ulfill its o%li'tions under the WESM RulesC

% Act in mnner tht is consistent with the WESM

RulesC

c Perform ll thin's reson%ly necessry to

contri%ute towrd the chie$ement of the WESM

nd the Act-s o%ecti$esC

d &uly consider nd te into ccount the pro$isions

of the WESM Rules! when decidin' whether or not

to ppro$e ny mtter for which the PEM Board ;s

ppro$l or 'reement is re4uired under the WESM

RulesC

e Promptly notify the ERC of ll rele$nt informtion

reltin' to potentil %rech with recommendtion

on ction to %e tenC nd

f Perform ll other thin's tht the PEM Board

considers reson%ly necessry to promote the

WESM o%ecti$es nd impro$e the opertion of the

WESM s well s the WESM Rules.

1.>.?.2 The followin' re the powers nd duties of the PEM Board <

*$ersee nd monitor the cti$ities of the Market

Operator nd the System operator to ensure tht

they fulfill their responsi%ilities under the WESM




Rules nd ctin' in mnner consistent with the

WESM RulesC

% )orm (ommittees in ccordnce with cluse 1.>.6C

c *$ersee nd monitor the cti$ities of the

worin' 'roups est%lished under cluse 1.>.6 to

ensure tht they fulfill their responsi%ilities under

nd in ccordnce with the WESM RulesC

d *$ersee nd monitor the cti$ities of WESM

mem'er s to scertin nd determine complince or

non:complince with the WESM RulesC nd

e *$ersee the process %y which chn'es to the WESM

Rules re proposed nd mde in ccordnce with

cluse .2 nd other cluses contined herein.

f Appro$e nd promul'te #ret #nuls includin'

mendments nd re$isions theretoC nd (Added as

pe! DOE DC N$'998::990 daed 9=N$5em*e!

998)

' Issue resolutions or d$isories on ny mtter relted

to the !E"#. (Added as pe! DOE DC N$'998::

990 daed 9=N$5em*e! 998)

'2'8 F$!ma#$n $/ C$mm#ees

The PEM Board shll form worin' 'roups nd ppoint 4ulified

personnel who shll ct s the followin'<

The PEM Auditor to conduct udits of the opertion of the spot

market nd of the Market Operator in ccordnce with cluse

1.?C

% A Market Surveillance Committee to monitor nd report on

cti$ities in the spot market in ccordnce with cluse 1.6C

c A %ecnical Committee to monitor nd re$iew technicl mtters

under nd in reltion to the WESM Rules the $rid Code nd

istri'ution Code in ccordnce with cluse 1.@C

d A Rules Can*e Committee to ssist the PEM Board nd the OE

in reltion to the re$ision nd mendment of the WESM Rules in

ccordnce with chpter nd the formultion re$ision ndmendment of mret mnuls procedures nd 'uidelinesC nd

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1>



pro$ide timely nd effecti$e support nd ssistnce to the

PE# (ommittees.(Added as pe! DOE DC' N$' 998:9:

999 daed 9 an+a!- 998)

1.>[email protected] The #ret Assessment 7roup shll %e unit under the

*ffice of the President of the PEMC.(Added as pe! DOE

DC' N$' 998:9:999 daed 9 an+a!- 998)

1.>. The PEM Board shll crete n En/orcement and Compliance O//icer to

in$esti'te lle'ed %reches of nd enforce snctions 'inst the System

operator Market Operator nd other WESM mem'er s.

To ssist the En/orcement and Compliance O//icer n Enforcement nd

(omplince *ffice shll %e creted to perform the followin' functions<

(Added as pe! DOE DC' N$' 998:9:999 daed 9 an+a!- 998)

"er$e s technicl nd in$esti'ti$e support unit of the

En/orcement and Compliance O//icer

% Est%lish mechnism to promote consulttion nd $oluntry

complince of industry prticipntsC nd

c (ontinuously de$elop systems nd procedures to deter %reches

of the WESM Rules nd further e$ol$e enforcement of penlties

consistent with the o%ecti$es of the !E"#.

1.>.9 The mem%ers of the PE# ord re not li%le for ny loss or dm'e

suffered or incurred %y Prticipnt or ny other person unless the PE#

ord or ny of its mem%ers s the cse my %e cted with mlice

mnifest prtility %d fith 'ross incompetence or 'ross ne'li'ence.

(Added as pe! DOE DC N$' 998:9;:999 daed 9 +,- 998)

1.>.10 +otwithstndin' cluse 1.>.9 eBcept for li%ility risin' out of conduct

in$ol$in' mlice mnifest prtility %d fith 'ross incompetence or

'ross ne'li'ence if the PE# ord is or the mem%ers thereof re mde

li%le to py ny mount for loss or dm'e suffered or incurred in the

eBercise of its functions under the !E"# Rules nd !E"# #nuls the

PE# ord or the mem%ers thereof shll %e indemnified for the full

mount dud'edC nd for costs or eBpenses incurred %y tht person

defendin' himself in the relted proceedin's.

(Added as pe! DOE DC N$' 998:9;:999 daed 9 +,- 998)

'3 THE PHILIPPINES ELECTRICITY MARKET AUDITOR




'3' App$#nmen $/ he PEM A+d#$!

1.?.1.1 The PE# ord shll ppoint PE# Auditor with such sills

nd eBpertise nd on such terms nd conditions s the

PE# ord reson%ly deems to %e pproprite tin' into

considertion the nture of the o%li'tions nd functions

of the PE# Auditor s set out in cluse 1.?.2 nd cluse

?.2.6. (Added as pe! DOE DC' N$' 99:90:9992 daed

Ma!"h 99)

1.?.1.2 The PE# Auditor shll not currently or hs not %een

employed within one yer prior to the nomintion dte %y

ny Philippine electric power industry prticipnts.(Added

as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)

1.?.1.3 The PE# Auditor must h$e sufficient rele$nt eBperience

in one or more of the followin' fields<(Added as pe! DOE

DC' N$' 99:90:9992 daed Ma!"h 99)

Power industryC

% EconomicsC

c Ris mn'ementC

d Informtion technolo'y nd informtion systemsC

ndDor

e In such other fields s my %e rele$nt to nd

re4uired in the performnce of udits.

'3' Resp$ns#*#,##es $/ he A+d#$!

(Amended as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)

The PEM Auditor shll<

(onduct nnul udits of the Market Operator nd the settlement

system nd ny other procedures persons systems or other

mtters rele$nt to the spot market

% Test nd chec ny new items or $ersions of softwre pro$ided %y

the Market Operator for use %y WESM mem'er sC

c Re$iew ny procedures nd prctices which re co$ered %y the

WESM Rules t the direction of the PEM Board C

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1@



d Recommend chn'es to the WESM Rules where the PEM Auditor

detects deficiencies s conse4uence of n udit re$iew test

chec or other form of re$iewC nd

e Pu%lish on the mret informtion we%site the results of ny

findin's nd recommendtions under this cluse 1.?.1.

'3'0 Re5#e1 $/ WESM R+,es

The PEM Auditor my ppoint 4ulified tem of uditors to crry out

re$iew of the schedulin' nd central dispatc processes under the WESM

Rules. (Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h

99)

'8 MARKET SUR7EILLANCE COMMITTEE

'8' App$#nmen $ he Ma!.e S+!5e#,,an"e C$mm#ee

1.6.1.1 The PEM Board shll ppoint persons to form Market

Surveillance Committee in such num%er nd with such

sills nd eBpertise nd on such terms nd conditions s

the PEM Board reson%ly deems to %e pproprite tin'

into considertion the nture of the o%li'tions nd

functions of the Market Surveillance Committee s setout in cluse 1.6.2.

1.6.1.2 The mem%ers of the Market Surveillance Committee shll

%e independent of the Philippine electric power industry

nd the 7o$ernment.

'8' Resp$ns#*#,##es $/ he Ma!.e S+!5e#,,an"e C$mm#ee

The #ret "ur$eillnce (ommittee shll from time to time s necessry

nd pproprite nd whene$er the PEM Board directs<

#onitor cti$ities conducted %y !E"# Prticipnts in the spot

marketC

% Prepre periodic reports which outline<

1 Acti$ities of !E"# Prticipnts in the spot marketC

2 Apprent or suspected incidents of nti:competiti$e

%eh$ior %y ny !E"# PrticipntC nd

3 #tters concernin' the opertion of the spot market

'enerlly which reports shll %e su%mitted to the PEMBoard the &*E nd ERC upon completionC




c &eleted nd intentionlly left %ln(As pe! DOE DC N$' 993::

99 daed N$5em*e! 993)

d Assist the PE# ord or the En/orcement and Compliance O//icer

to in$esti'te nd 'ther e$idence of<(As Amended *- DOE DC

N$' 998:9:99 daed 9 an+a!- 998)

1 =nusul or suspicious %eh$ior or cti$ities of WESM

mem'ers in the spot mretC

2 "uspected or lle'ed %reches of the WESM Rules %y WESM

Mem'ers nd

3 "uspected or lle'ed anti+competitive 'eavior!

e )rom time to time if the Market Surveillance Committee in its

discretion deems necessry or pproprite propose mendments

to the WESM Rules in ccordnce with chpter with $iew to<

1 Impro$in' the efficiency nd the effecti$eness of the

opertion of the WESMC nd

2 Impro$in' or enhncin' the prospects for the chie$ement

of the WESM o%ecti$esC

f Assist the Rules Can*e Committee in reltion to its ssessment

of proposls to mend the WESM Rules under chpter .

'8'0 Des#%n and P!$m+,%a#$n $/ Pena,#es

(Added as pe! DOE DC N$'998::990 daed 9=N$5em*e! 998)

The #ret "ur$eillnce (ommittee #"( will desi'n nd promul'te

the penlty le$els nd the pproprite rn'e of penlties for %reches

nd non:complince of !E"# Rules nti:competiti$e %eh$ior nd

%use of mret power.

The #"( will conduct consulttions with the Rules (hn'e (ommittee

nd the PE# ord in its formultion of the penlty le$els nd

pproprite rn'e of penlties.

The penlty scheme nd ny chn'es mde %y the #"( will %e pu%lished

in the #ret Informtion !e%site nd copy furnished to the PE#

ord nd the Rules of (hn'e (ommittee. The #"( shll specify the

dte when the penlties %ecome effecti$e which shll in no cse %e

erlier thn the dte of its pu%liction.

The penlty scheme will %e re$iewed %y the #"( nnully.


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2 =nintended or distortionry effects to the opertion of the

WESM

c Assist the PEM Board %y pro$idin' eBpertise in reltion to<

1 Informtion technolo'yC

2 Meterin* technolo'y nd meterin* dataC nd

3 Any other mtter of technicl nture reltin' to the spot

marketC

d )rom time to time if the Technicl (ommittee in its discretion

deems necessry or pproprite propose mendments to the

WESM Rules in reltion to technicl mtters in ccordnce with

chpter with $iew to<

1 Impro$in' the efficiency nd the effecti$eness of the

opertion of the spot marketC nd

2 Impro$in' or enhncin' the prospects for the chie$ement

of the WESM o%ecti$esC nd

e Assist the Rules Can*e Committee in reltion to its ssessment

of proposls of technicl nture to mend the WESM Rules

under chpter .

'< ENFORCEABILITY AND AMENDMENT OF THESE RULES

'<' En/$!"ea*#,#-

These Rules re enforce%le in ccordnce with chpter @.

'<' Chan%es $ he WESM R+,es

Amendments to the WESM Rules shll %e mde in ccordnce with

chpter .

'= PUBLIC CONSULTATION PROCEDURES

!here the WESM Rules identify mtters tht re su%ect to re$iew or

consulttion in ccordnce with the pu%lic consulttion procedures the PEM

Board shll ensure tht s minimum the followin' procedures re followed<

The PEM Board shll pu%lish in the mret informtion we%site

prticulrs of the mtter to WESM Participants nd other interested

persons in$itin' written su%missions concernin' the mtter to %e mde

%y specified dteC




(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993)

% !here in the reson%le opinion of the PEM Board there is di$ersity

of $iews eBpressed in the written su%missions recei$ed under cluse

1.9the PEM Board shll in$ite !E"# Prticipnts nd other interested

persons to meetin' or meetin's t which those $iews my %e presented

nd discussed. +on:mem%ers who my %e deemed interested persons

my %e in$ited to ttend su%ect to the discretion of the PEM Board C

c )ollowin' its considertion of the mtter under consulttion the PEM

Board shll prepre report settin' out<

1 The mtter under consulttionC

2 The PEM Board ;s decision in reltion to the mtterC

3 The resons for the PEM Board ;s decisionC

> The findin's on mteril 4uestions of fct referrin' to e$idence

or other mteril on which those findin's were %sedC nd

? The procedures followed in considerin' the mtter.

d The PEM Board shll pro$ide copy of the report referred to in cluse 1.9

c to<

1 The OE nd the ERC on completion of the reportC nd

2 WESM Participants nd interested persons on re4uest.


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2.3.1.1 A $eneration Company with fcilities connected

to transmission or distri'ution system shll re'ister

with the Market Operator s WESM mem'er .

2.3.1.2 To re'ister s WESM mem'er $eneration Company

shll<

(lssify ech of the *eneratin* units which form

prt of the *eneratin* system it owns opertes or

controls or from which it otherwise sources

electricity s either<

1 A sceduled *eneratin* unitC or

2 A non+sceduled *eneratin* unitC or

3 A new nd renew%le ener'y +RE

*eneratin* unit with intermittent ener*y

resource

% "tisfy the Market Operator tht those *eneratin*

units nd the connection points for those

*eneratin* units comply with the rele$nt technicl

re4uirements set out in the WESM Rules the $rid

Code and istri'ution CodeC nd

c "tisfy the mem%ership criteri specified in cluse

2.3.3.>.

2.3.1.3 A *eneratin* unit or 'roup of *eneratin* units connected

t common connection point with nmeplte rtin' or

com%ined nmeplte rtin' of 'reter thn or one tenth

of one percent G 0.1H of the pe lod in prticulr

reserve re*ion shll %e clssified s sceduled

*eneratin* unit.

2.3.1.> A *eneratin* unit or 'roup of *eneratin* units connected

t common connection point with nmeplte rtin'

nd com%ined nmeplte rtin' of less thn one tenth of

one percent 0.1H of the pe lod in prticulr

reserve re*ion or less thn ten percent 10H of the si5e

of interconnection fcilities whiche$er is lower shll %e

clssified s non+sceduled *eneratin* unit %ut my tits option %e clssified s sceduled *eneratin* unit.

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 2?



2.3.3.2 "u%ect to cluses 2.3.3.3 nd 2.3.3.> %radin*

Participant re'istered s irect WESM mem'er is

permitted to prticipte in the spot market for ech

cte'ory in which tht %radin* Participant is re'istered.

2.3.3.3 A person or n entity shll not underte cti$ities or

prticipte in or in reltion to the spot market unless the

person or entity is &irect WESM mem'er re'istered s

Customer or $eneration Company with the Market

Operator .

'0'0'2 Mem*e!sh#p C!#e!#a

A person or n entity is not eli'i%le to %e re'istered s

%radin* Participant unless tht person or entity<

Is resident in or is permnently est%lished in

the PhilippinesC

% Is not under eBternl dministrtion s

defined in the JPhilippines (ompnies ActD(odeK

or under similr form of dministrtion under ny

lws pplic%le to tht person or entity in ny

urisdictionC

c Is not immune from suit in respect of the

o%li'tions of WESM mem'er under the WESM

RulesC

d Is cp%le of %ein' sued in its own nme in court

of the PhilippinesC nd

e "tisfies the prudential re1uirements.

2.3.3.? Prior to re'istrtion of %radin* Participant in respect of

sceduled *eneration unit or sceduled load /acility n

Intendin' WESM mem'er my see rulin' from the

System operator with respect to the dispatc tolerances to

%e pplied.

2.3.3.6 If no prior rulin' is sou'ht under cluse 2.3.3.? the

System operator shll me rulin' with respect to

dispatc tolerances upon re'istrtion of tht %radin*

Participant.




2.3.3.@ The System operator my t ny time re$iew ny rulin'

mde under cluse 2.3.3.? or 2.3.3.6 in the li'ht of further

informtion or eBperience

2.3.3. A Sceduled $eneration Company my ppel to the PEM

Board in respect of rulin' pro$ided under this section

tht is rele$nt to tht person or entity.

2.3.3.9 If t ny time %radin* Participant ceses to %e eli'i%le to

%e re'istered s %radin* Participants ccordnce with

cluse 2.3.3.> tht %radin* Participant shll inform the

Market Operator ccordin'ly nd s soon s prctic%le

fter the Market Operator %ecomes wre tht %radin*

Participant is no lon'er eli'i%le to %e re'istered the

Market Operator shll issue suspension notice in respect

of tht %radin* Participant in ccordnce with cluse

3.1?.@.

'0'2 Ne1$!. Se!5#"e P!$5#de!

2.3.>.1 The %RA&SCO or the 7rid *wner s defined in the $rid

Code shll re'ister with the Market Operator s &et#ork

Service Provider.

2.3.>.2 A istri'ution tility shll re'ister with the Market

Operator s &et#ork Service Provider.

'0'3 An"#,,a!- Se!5#"es P!$5#de!

2.3.?.1 A %radin* Participant or &et#ork Service Provider

pro$idin' ancillary services in ccordnce with cluse 3.3<

"hll re'ister with the Market Operator s n

Ancillary Services Providers respect of<

1 Ech reserve /acility it opertesC

2 Ech reserve cate*ory it intends to pro$ide

from the reserve /acilities re'istered

under cluse 2.3.?.1 1 nd s

uthori5ed %y the System operator under

cluse 2.3.?.3C nd

3 The reserve /acility cate*ory pplic%le to

the reserves intended to %e pro$ided %yech of the reserve /acilities re'istered




under cluse 2.3.?.1 1 nd s

uthori5ed %y the System operator under

cluse 2.3.?.3.

% #y %e re'istered either s &irect WESM mem'er

or n Indirect WESM mem'er in respect of its

cti$ities reltin' to the pro$ision of ancillary

services su%ect to stisfyin' the rele$nt

prere4uisites set out in cluse 2.3.

2.3.?.2 *nly n Ancillary Services Provider re'istered s irect

WESM mem'er my enter into n ancillary services

'reement with the System operator under cluse 3.3.3.

2.3.?.3 Prior to the re'istrtion of %radin* Participant or

&et#ork Services Provider s n Ancillary Services

Provider eli'i%le to pro$ide reserves in ccordnce with

cluse 2.3.?.1 the System operator shll<

(ertify tht the rele$nt reserve /acility is cp%le

of pro$idin' the reserve cate*ory for which

re'istrtion is sou'ht in ccordnce with the

$rid Code nd istri'ution Code

% (lssify ech reserve /acility for which re'istrtion

is sou'ht into reserve /acility cate*ory in respect

of ech reserve cate*ory tht is intended to %e

pro$ided %y tht reserve /acility

c &etermine to which reserve re*ion ech reserve

/acility for which re'istrtion is sou'ht my %elon'

dependin' on the %ility of tht reserve /acility to

pply reserve to meet the correspondin'

loctionlly specific reserve re1uirementC nd

d Pro$ide written uthori5tion to the Market

Operator which sets out the rele$nt informtion

determined under cluses 2.3.?.3 % nd c.

2.3.?.> A %radin* Participant nd +etwor "er$ices Pro$ider shll

not %e pid or compensted for pro$idin' ncillry ser$ices

or reser$es unless<




Re'istered s n Ancillary Services Provider in

respect of the rele$nt fcility in ccordnce with

cluse 2.3.?.1C or

% Re'istered s n Ancillary Services Provider for

pro$ision of the rele$nt reserve cate*ory in tht

rele$nt reserve re*ion in ccordnce with cluse

2.3.?.1.

'0'8 Mee!#n% Se!5#"es P!$5#de!

2.3.6.1 A person or n entity intendin' to pro$ide meterin*

services in ccordnce with chpter > shll secure n

uthori5tion from the ERC.

2.3.6.2 A person or n entity uthori5ed %y the ERC to pro$ide

meterin* services shll re'ister with the Market Operator

s Meterin* Services Provider.

2.3.6.3 Initilly the %RA&SCO shll pro$ide the ser$ices re4uired

of the Meterin* Services Provider %ut this will not eBclude

other entities from doin' the sme pro$ided they meet

the re4uirements of chpter >.

'0'; S-sem $pe!a$!

The System operator of the %RA&SCO shll re'ister with the Market

Operator s System operator .

'2 INDIRECT WESM MEMBERS

A person or n entity who wishes to indirectly trde in the spot market shll

re'ister with the Market Operator s n 0ndirect WESM mem'er . ,owe$er n

0ndirect WESM mem'er my only trnsct throu'h direct WESM mem'er .

'3 APPLICATIONS FOR RE6ISTRATION

'3' App,#"a#$n p!$"ess

An ppliction for re'istrtion shll %e su%mitted to the Market

Operator in the form prescri%ed %y the Market Operator nd shll %e

ccompnied %y re'istrtion fee pu'lised %y the Market Operator .

'3' P!e!e>+#s#es /$! app,#"ans

If n pplicnt pplies for re'istrtion either s &irect WESM mem'er

or s n Indirect WESM mem'er tht pplicnt shll<




'3'3 N$#"e $/ app!$5a, $/ app,#"a#$n

2.?.?.1 If the Market Operator ppro$es n ppliction under

cluse 2.?.>the Market Operator shll send written notice

of ppro$l to the pplicnt within fifteen Workin* ays

from receipt of< (As amended *- DOE DC N$' 90:90:

9993 daed Ma!"h 90)

The ppliction under cluse 2.?.1C or

% The dditionl informtion or fees if further

informtion or fees re re4uired under cluse 2.?.3.

2.?.?.2 The re'istrtion of the pplicnt shll te effect on the

dte specified in the notice of ppro$l which shll %e

dte not more thn se$en Workin* ays fter the dte on

which the Market Operator sends the notice of ppro$l

under cluse 2.?.?.1. (As amended *- DOE DC N$' 90:

90:9993 daed Ma!"h 90)

'3'8 N$#"e $/ n$n:app!$5a, $/ app,#"a#$n

2.?.6.1 If the #ret Operator does not ppro$e n ppliction for

re'istrtion the Market Operator shll send within fifteen

1? Workin* ays written notice to the pplicnt d$isin'

the pplicnt tht the ppliction is not ppro$ed nd the

Market Operator shll 'i$e resons for its decision.(As

amended *- DOE DC N$' 9:9<:99< daed 0 A+%+s

9) (As /+!he! amended *- DOE DC N$' 90:90:9993

daed Ma!"h 90)

2.?.6.2 The OE nd the ERC shll in ll instnces %e pro$ided

copy of such written notice within fi$e ? Workin* ays

fter issunce to the pplicnt.(As amended *- DOE DC

N$' 9:9<:99< daed 0 A+%+s 9) (As /+!he!

amended *- DOE DC N$' 90:90:9993 daed Ma!"h

90)

2.?.6.3 If n ppliction for re'istrtion is reected %y the Market

Operator under cluse 2.?.6.1 n pplicnt my<

Rectify the shortcomin's in his pre$ious ppliction

s notified %y the Market Operator s %ein' the


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resons for the ppliction %ein' unsuccessful

nd re:su%mit n ppliction for re'istrtionC or

% Refer the mtter for resolution s dispute under

[email protected].

'3'; Ma!.e Ope!a$! $ ma#na#n a ,#s

The Market Operator shll pu'lis nd eep current list of re'istered

WESM mem'er s the cte'ories in which they re re'istered nd detils

of the current sttus of pplictions to %ecome WESM mem'er in

ccordnce with cluse ?.2.3.

'8 CEASIN6 TO BE A WESM MEMBER

'8' N$#/-#n% he Ma!.e Ope!a$!

If person or n entity wishes to cese to %e re'istered<

In ny one or more cte'ories of WESM mem'er set out in cluse

2.3C or

% As n Indirect WESM mem'er it shll notify the Market Operator

in writin'.

'8' Dae $/ "essa#$n

In notice 'i$en under cluse 2.6.1 WESM mem'er shll specify< A dte upon which it wishes to cese to %e re'istered which dte

should not %e less thn thirty 30 'usiness days fter the dte on

which the WESM mem'er sends the noticeC nd

% The cte'ory or cte'ories in which the !E"# mem%ers no lon'er

wishes to %e re'istered.

'8'0 N$#/-#n% a,, WESM mem*e!s

*n receipt of notice under cluse 2.6.1 the Market Operator shll

notify ll WESM mem'er s tht the person or entity who '$e the notice

shll cese to %e re'istered s WESM mem'er in the rele$nt cte'ory

nd the dte on which tht will occur.

'8'2 Ma!.e Ope!a$! n$#/#"a#$n $/ "essa#$n

If the Market Operator pro$ides notice under cluse 2.6.3 tht WESM

mem'er shll cese to %e re'istered in the rele$nt cte'ory on

specified dte tht WESM mem'er shll cese ll cti$ities rele$nt to

tht cte'ory tht it ws permitted to underte %efore it cesed to %ere'istered s WESM mem'er in tht rele$nt cte'ory includin' %ut




not limited to trdin' in the spot market if tht WESM mem'er ceses to

%e re'istered s %radin* Participant from tht dte.

'; SUSPENSION

';' 6!$+nds /$! S+spens#$n

The Market Operator my issue suspension notice to WESM

Participants %sed on the followin' 'rounds<

rech of the WESM Rules su%ect to cluse @.2.2C nd

% Pyment defult su%ect to 3.1>.11.

';' E//e" $/ a s+spens#$n n$#"e

If %radin* Participant who is either irect WESM mem'er or n

0ndirect WESM mem'er recei$es suspension notice from the Market

Operator in ccordnce with ny pro$ision of the WESM Rules tht

%radin* Participant is suspended from prticiption in the spot market

unless nd until the Market Operator declres the suspension notice to

%e re$oed in ccordnce with cluse 3.1?.@.

'< DERE6ISTRATION

'<' De!e%#s!a#$n $/ a T!ad#n% Pa!#"#pan2..1.1 If the Market Operator issues dere'istrtion notice to

ny %radin* Participant under the dere'istrtion process

the %radin* Participant is deemed to %e dere'istered s

%radin* Participant from the dte specified in the

dere'istrtion notice.

2..1.2 A %radin* Participant who is dere'istered shll not %e

llowed to re:re'ister within certin prescripti$e period

nd until it hs demonstrted tht such infrction will not

occur 'in.

'<' O*,#%a#$ns and ,#a*#,##es /$,,$1#n% de!e%#s!a#$n

+otwithstndin' tht person or n entity is no lon'er re'istered s

WESM mem'er for ny reson includin' cesin' to %e WESM mem'er or

%ein' suspended from the spot market tht person;s or entity;s

o%li'tions nd li%ilities which rose under the WESM Rules prior to the




dte on which tht person or entity ws dere'istered remin unffected

%y the dere'istrtion.

'<'0 De!e%#s!a#$n p!$"ed+!e de5e,$pmen

Prior to spot market commencement date the Market Operator shll

de$elop procedures for dere'istrtion includin' 'rounds for

dere'istrtion nd prescripti$e period referred to in cluse 2..1.2 to %e

ppro$ed %y the PEM Board .

'= INTENDIN6 WESM MEMBERS

'=' Re%#s!a#$n as an Inend#n% WESM mem*e!

Any person or entity who intends to re'ister s WESM mem'er my

re'ister with the Market Operator s n Intendin' WESM mem'er if tht

person or entity cn stisfy the Market Operator of its %on fide intent

to commence n cti$ity within reson%le timefrme which would

entitle or re4uire tht person or entity to %e re'istered s WESM

mem'er once tht cti$ity is commenced.

'=' App,#"a#$ns /$! !e%#s!a#$n

Applictions for re'istrtion s n 0ntendin* WESM mem'er shll %e

su%mitted to the Market Operator in the form prescri%ed %y the MarketOperator nd shll %e ccompnied %y the re'istrtion fee if ny

pu%lished %y the Market Operator horn time to time.

'='0 N$#"e $/ "essa#$n $/ !e%#s!a#$n

The Market Operator my from time to time re4uire n 0ntendin* WESM

mem'er to stisfy the Market Operator tht it continues to meet the

criteri for re'istrtion in cluse 2.9.1 nd if the 0ntendin* WESM

mem'er is un%le to stisfy the Market Operator tht it remins entitled

to %e re'istered s n intendin* WESM mem'er then the Market

Operator shll send written notice to the rele$nt Intendin' WESM

mem'er to d$ise the rele$nt Intendin' WESM mem'er tht it will

cese to %e re'istered s n 0ntendin* WESM mem'er on the dte

specified %y the Market Operator in tht notice.

'='2 A"#5##es $/ Inend#n% WESM mem*e!s

An 0ntendin* WESM mem'er is ten to %e n 0ntendin* WESM mem'er

only insofr s its cti$ities relte to its intention to commence n




cti$ity tht would entitle or re4uire tht person or entity to %e

re'istered s WESM mem'er .

'='3 R#%hs and $*,#%a#$ns $/ Inend#n% WESM mem*e!s

To the eBtent rele$nt nd pplic%le n 0ntendin* WESM mem'er

c4uires only the followin' ri'hts nd o%li'tions under the WESM Rules<

The ri'ht to o%tin informtion tht would %e mde ccessi%le to

WESM mem'er s in the cte'ory in which the Intendin' WESM

mem'er intends to %e re'isteredC

% The ri'ht to refer mtters for resolution ccordin' to the dispute

resolution process in cluse @.3C nd

c The o%li'tion to eep certin informtion confidentil

in ccordnce with cluse ?.3.

'9 MARKET FEES

'9'Imp$s#n% Ma!.e Fees

The cost of dministerin' nd opertin' the !E"# shll %e reco$ered %y

the Market Operator throu'h chr'e imposed on ll WESM mem'er s or

WESM trnsctions pro$ided such chr'e shll %e filed %y the Market

Operator with the ERC for ppro$l consistent with the Act.'9'S!+"+!e and Le5e, $/ Ma!.e Fees

2.10.2.1 Prior to the commencement of the spot market the

Market Operator shll de$elop the structure nd le$el of

mret fees in consulttion with WESM Participants.

2.10.2.2 In de$elopin' the structure nd le$el of market /ees the

Market Operator shll te into considertion the mnner

in which it intends to chr'e ech cte'ory of

WESM mem'er nd whether tht chr'in' proposl is

reson%le 'i$en the relti$e in$ol$ement of ech cte'ory

of WESM mem'er in the spot market.

2.10.2.3 =pon the ppro$l of the PEM Board the Market Operator

shll file the proposed structure nd le$el of market /ees

with the ERC for ppro$l.

'9'06+#d#n% P!#n"#p,es

The structure of market /ees should to the eBtent prctic%le %e

consistent with the followin' principles<




The structure of market /ees should %e trnsprentC

% #ret fees shll consider the %ud'eted re$enue re4uirements for

the #ret *pertor nd the PE# ord determined under cluse

2.11C nd

c The structure nd le$el of market /ees should not f$or or

discriminte 'inst cte'ory or cte'ories of WESM mem'er .

'9'2C$mp$nens $/ Ma!.e Fees

The components of the market /ees shll include %ut re not limited to<

Re'istrtion fees comprisin' n nnul fee py%le %y ech

WESM mem'er for the cte'ory or cte'ories in which they re

re'isteredC

% Meterin* /ees to reco$er the Market Operator ;s %ud'eted re$enue

re4uirements for the collection stor'e nd processin' of

meterin* data

c illin' nd settlement fees to reco$er the Market Operator ;s

%ud'eted re$enue re4uirements for pro$idin' the %illin' nd

settlements ser$ice s descri%ed in chpter 3C

d Administrtion fees to reco$er the reminder of the Market

Operator ;s %ud'eted re$enue re4uirements not co$ered %y

% c nd dC nd

e (osts reson%ly incurred %y the PEM Board nd the committees

nd worin' 'roups tht the PEM Board ppoints under the WESM

Rules.

'9'3 P+*,#"a#$n $/ Ma!.e Fees S!+"+!e

=pon the ppro$l of ERC! the Market Operator shll pu'lis the

structure nd le$el of market /ees nd the methods used in determinin'

the structure prior to commencement of the spot market.

' BUD6ET

'' S+*m#ss#$n $/ ann+a, saemens and $he! d$"+mens

2.11.1.1 +o lter thn four months prior to the strt of ech

finncil yer the Market Operator shll su%mit n nnul

sttement of eBpected income nd eBpenses to the PEM

Board for ppro$l settin' out mon' others the

followin'<




CHAPTER 0

THE MARKET

0' SCOPE OF CHAPTER 0

This chpter 3 sets out the rules which 'o$ern opertion of the spot market

nd relted mtters includin' %ut not limited to<

The definition of the market net#ork model pricin* ,ones reserve

cate*ories nd reserve re*ions tradin* interval nd timeta'leC

% The procedures to %e followed %y WESM mem'er s in su%mittin' offers

demand 'ids nd dt into the spot marketC

c The structure nd use of the market dispatc optimi,ation model

d The procedures for pro$ision of ancillary services nd for determinin'

pyment for those ser$icesC

e The procedures for preprin' #eek aead pro2ections nd day aead

pro2ections

f The procedures for scedulin* nd dispatc load seddin* nd e3cess

*eneration

' The determintion of market prices

h The re4uirement reltin' to the pu%liction of informtion in

ccordnce with the timeta'leC

i The procedures for determinin' settlements amounts nd for pyin' nd

recei$in' settlements

The determintion of prudential re1uirementsC nd

The procedures for supportin' transmission ri*ts.

0' MARKET NETWORK MODEL? TRADIN6 NODES? AND

PRICIN6@ONES

The price determination metodolo*y contined in this WESM Rules shll %e

su%ect to the ppro$l of ERC.

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> >0



0'' Ma!.e Ne1$!. M$de,

3.2.1.1 The Market Operator shll mintin nd pu'lis market

net#ork model! which will %e used for the purpose of

centrl schedulin' nd disptch pricin' nd settlement.

3.2.1.2 The market net#ork model shll represent firly nd in

mnner which will fcilitte consistent nd reli%le

opertion of the power system<

The transmission net#ork under the control of

the System Operator! nd

% "uch other spects of the po#er system which

when connected! my %e cp%le of mterilly

ffectin' dispatc of sceduled *eneratin* units or

pricin' within the spot market.

3.2.1.3 The market net#ork model my contin such

simplifictions pproBimtions e4ui$lencies or

dpttions s my fcilitte the dispatc pricin' or

settlement processes.

3.2.1.> !here pproprite the Market Operator in coordintion

with the System Operator shll me ltertions to the

Market &et#ork Model (As amended *- DOE DC N$' 92:

9<:998 daed A+%+s 92) so s to mintin<

The reltionship %etween the market net#ork

model nd the transmission net#ork nd

% (onsistency with market re4uirements

in ccordnce with cluses 3.2.1.2 nd 3.2.1.3.

3.2.1.? Any ltertion under (luse 3.2.1.> shll %e implemented

in ccordnce with the est%lished 0n/ormation and

Communications %ecnolo*y Can*e Mana*ement Process

(0CMP) of the Market Operator . The Market Operator shll

re'ulrly inform the PEM Board of ny chn'es mde to

the Market &et#ork Model (As amended *- DOE DC N$'

92:9<:998 daed A+%+s 92).

3.2.1.6 The Market Operator shll continuously dpt or

dust the representtion of the market net#ork modelto ccurtely reflect po#er system conditions within the












dustments tht will %e implemented %y the Market

Operator nd the System operator . (As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

3.2.2.3A +odl Prices t #ret Trdin' +odes shll %e used for the

settlement of ener'y for %oth 'enertors nd customers.

(Added as pe! DOE DC N$'992:9;:99< daed ; +,-992)

3.2.2.> The Market Operator shll mintin pu%lish nd

continuously updte re'ister of market tradin* nodes

defined in ccordnce with cluse 3.2.2.1 so s to

ccurtely reflect chn'es in the mret networ model

nd the WESM mem'er responsi%le for ech markettradin* node.

0''0 C+s$me! P!#"#n% @$nes

3.2.3.1 (ustomer nodes my %e 'rouped into customer pricin'

5ones in ccordnce with the procedures to %e de$eloped

%y the #ret *pertor nd su%ect to the ppro$l of the

PE# ord. The #ret *pertor shll mintin nd pu%lish

the customer pricin' 5ones to %e used for the settlement

of ener'y for customers.(As amended *- DOE DC N$'

992:9;:99< daed ; +,- 992)

3.2.3.2 All customers within customer pricin' 5one shll fce the

sme price for electricity consumed.(Asamended *- DOE

DC N$' 992:9;:99< daed ; +,- 992)

3.2.3.3 As lon' s customer:pricin' 5ones re employed the

Market Operator shll conduct periodic re$iew nd

e$lution of eBistin' customer pricin' 5ones nd shll< "u%mit re$ised customer pricin* ,ones to the PEM

Board for ppro$lC nd

% Pu'lis ny re$ised customer pricin* ,ones

ppro$ed %y the PEM Board .

3.2.3.> The Market Operator shll in consulttion with WESM

Participants! continuously re$iew the procedures for

determinin' the market net#ork model! market tradin*

nodes nd customer pricin* ,ones set out in this chpter 3


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ancillary services to %e pro$ided %y Ancillary

Services Providers

% y the System Operator purchsin' ancillary

services in ccordnce with cluse 3.3.3.

0'0' An"#,,a!- Se!5#"es C$n!a"#n% *- he S-sem $pe!a$!

3.3.2.1 The System operator shll use reson%le ende$ors to

ensure tht sufficient fcilities re $il%le nd oper%le

to pro$ide for<

The mintennce or restortion of po#er system

security under emer*ency conditionsC

% The restortion of ll or ny prt of the po#er

system to its stisfctory opertin' stte followin'

n emer*ency thret to system security or /orce

ma2eure e$entC nd

c The $il%ility t ll times of the num%er of

independent power sources %le to pro$ide %lc

strt:up fcilities determined in ccordnce with

the procedures de$eloped %y the Market

Operator to scertin the 4untities of ancillary

services which the System operator shll purchse.

3.3.2.2 The System operator shll use reson%le ende$ors to

enter into ancillary services 'reements to pro$ide

sufficient ancillary services to meet the re4uirements of

cluse 3.3.2.1 su%ect to cluse 3.3.3.

0'0'0 An"#,,a!- Se!5#"es A%!eemens

3.3.3.1 The System operator shll rrn'e for the pro$ision of

de4ute reserves for ech re'ion in ccordnce with

cluse 3.3.3.2.


de4ute ancillary services for ech re'ion either<

y competiti$e tenderin' process dministered %y

the Market Operator where%y num%er of

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> >?



System operator ccordin' to the stndrd test procedures

est%lished under the $rid Code nd istri'ution Code.

3.3.3.@ Any dispute %etween the System operator nd the

Ancillary Services Provider in reltion to the determintion

of pyment for spot mret ancillary services shll %e

determined %y the ispute Resolution Administrator in

ccordnce with cluse @.3 unless otherwise pro$ided in

the Ancillary Services Procurement A*reement (ASPA). (As

amended *- DOE DC N$' 9:9:999 daed 3

Fe*!+a!- 9)

0'0'2 Rese!5e Ma!.e A!!an%emens

3.3.>.1 !hen reson%ly fesi%le the Market Operator in

coordintion with the System operator shll est%lish nd

dminister spot market for the purchse of certin

reser$e cte'ories.

3.3.>.2 The reserve cte'ories to %e trded in the spot market

shll include<

Re*ulatin* reserve %ein' the %ility to respond

to smll fluctutions in system fre4uency includin'

%ut not limited to fluctutions cused %y lod

fluctutionsC

% Contin*ency reserve! %ein' the %ility to respond to

si'nificnt decrese in system fre4uency includin'

%ut not limited to decrese in system fre4uency in

n interconnected A( networ s result of

credi%le contin'ency ffectin' one or more

$eneration Companies within tht net#ork! or

transmission flows into tht net#ork nd

c "uch other reserve cte'ories s my from time to

time %e proposed %y the Market Operator in

consulttion with the System operator nd with

WESM mem'er s nd ppro$ed %y the PEM Board .

0'0'3 An"#,,a!- Se!5#"es C$s Re"$5e!-

3.3.?.1 The System operator shll mintin nd pu'lis reservecost recovery ,ones within which reserve cost recovery

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> >@



car*es my %e reco$ered to meet ech loctionlly

specific re4uirement.

3.3.?.2 The costs of ncillry services re to %e reco$ered throu'h

the settlement mounts clculted %y the Market

Operator under cluse 3.13.10<

In ccordnce with the cost reco$ery formul to %e

de$eloped %y the System operator for the

cte'ories of reser$e which re defined in cluse

3.3.>.2C nd

% )rom those WESM mem'er s or others on whose

%ehlf the System operator is deemed to purchse

ech ancillary service! in proportion to the %enefits

which re considered to %e deri$ed %y those WESM

mem'er s in respect of ancillary services not

included in cluse 3.3.?.2 .

3.3.?.3 The costs of pro$idin' ech loctionlly specific reser$e

re4uirement shll %e llocted %y the Market Operator to

those %radin* Participants in the rele$nt reserve cost

recovery ,one in the form of reserve cost recovery car*es

to %e determined in ccordnce with the principles set out

in cluse 3.3.?.>.

3.3.?.> !hen lloctin' reserve cost recovery car*es to %radin*

Participants in prticulr reserve cost recovery ,one s

pu'lised in cluse 3.3.?.1 the Market Operator my

reco$er<

The cost of re*ulatin* reserve in ech reserve cost

recovery ,one! from<

1 Customers with lod /acilities connected in

tht reserve cost recovery ,one! under

formul which shll ccount for %oth the

relti$e si5e of the customer loads nd the

de'ree to which they contri%ute to

de$itions from their schedule within the

tradin* intervalC nd




3.?.3.2 !here necessry the System operator shll in ccordnce

with the timeta'le promptly d$ise the Market Operator

to<

Lry the mret networ model representtion

employed for ny trdin' inter$l in the current

wee:hed mret hori5on to te ccount of

informtion recei$ed from &et#ork Service

Providers nd

% Apply or $ry ny system security constrints

o$er:ridin' constraints or reserve re1uirements

constraints to %e pplied in ny tradin* interval in

the current #eek+aead market ori,on to te

ccount of current or proected system

conditions.

3.?.3.3 In determinin' whether it is reson%ly necessry to d$ise

the Market Operator under cluse 3.?.3.2 the System

operator shll te into considertion its o%li'tions with

respect to mintinin' system security in ccordnce with

the WESM Rules the Act! the $rid Code nd istri'ution

Code or ny other rele$nt re'ultory instruments.

3.?.3.> In ctin' on such d$ice the Market Operator shll te

full ccount of its o%li'tions to WESM mem'er s with

respect to mintinin' the inte'rity of the mret nd the

market net#ork model s defined %y the WESM Rules

the Act! or ny other pplic%le re'ultory instruments.

3.?.3.? In ccordnce with the timeta'le ny re$ision under

cluse 3.?.3.2to the system representtion or constrints

to %e employed with respect to ny mret tradin*

interval shll te effect the neBt time mret disptch

optimi5tion model run is initited.

3.?.3.6 The System operator shll d$ise the Market Operator of

ny circumstnces which threten si'nificnt pro%%ility

of mteril d$erse chn'e in the stte of the net#ork! or

system! in ny tradin* interval of ny tradin* day in thecurrent #eek+aead market ori,on.

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> ?3



3.?.>.> If lod sheddin' is eBpected to occur in ny trdin'

inter$l restrined net load /orecast for tht tradin*

interval shll %e prepred on the sme %sis %ut

ccountin' for load seddin* to the eBtent tht it is

eBpected to occur.

0'3'3 6ene!a#$n O//e!s and Daa

3.?.?.1 Ech Sceduled $eneration Company includin' $eneration

Companies with 'ilateral contracts shll su%mit stndin'

*eneration o//er for ech of its sceduled *eneratin* units

for ech tradin* interval in ech tradin* day of the wee

in ccordnce with the timeta'le.

3.?.?.2 Ech *eneration o//er shll include the informtion

specified in AppendiB A1.1.

3.?.?.3 Ech 7enertin' (ompny shll in consulttion with

the "ystem opertor su%mit chec dt to %e used %y the

#ret *pertor in ccordnce with cluse 3.?.12 to

ssist in determinin' the $lidity of ny 'enertion offer

which my %e su%mitted %y the "cheduled 7enertor.

3.?.?.> Ech +on:"cheduled 7enertion (ompny shll su%mit

stndin' schedule of lodin' le$els for ech of its non:

scheduled 'enertin' units for ech trdin' inter$l in

ech trdin' dy of the wee in ccordnce with the

timet%le.

3.?.?.? Ech &RE $eneration Company with intermittent ener*y

resource shll su%mit its proected output for ech of its

*eneratin* units for ech tradin* interval in ech tradin*

day of the wee in ccordnce with the timeta'le.

0'3'8 C+s$me! Demand B#ds

3.?.6.1 Ech Customer my su%mit stndin' demand 'id in

respect of ech tradin* interval for ech of its re*istered

sceduled load /acilities for ech tradin* day of the wee


3.?.6.2 Ech demand 'id su%mitted under cluse 3.?.6.1 shll<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> ??



(orrespond to lod which hs %een certified s

disptch%le in ccordnce with the $rid Code nd

istri'ution CodeC nd

% Include the informtion specified in AppendiB A1.3.

3.?.6.3 Ech Customer shll in consulttion with the System

operator su%mit chec dt for ech of its re*istered

sceduled load /acilities to %e used %y the Market

Operator in ccordnce with cluse 3.?.12 to ssist in

determinin' the $lidity of ny demand 'id which it my

su%mit.

0'3'; 6ene!a#$n C$mpan- Rese!5e O//e!s

[email protected] This section shll pply only upon commencement of the

spot market for ancillary services est%lished under cluse

3.3.>.

[email protected] !hen pplic%le su%ect to cluse 3.3.>.2 ech

Sceduled $enerator re'istered s n Ancillary Services

Provider in respect of reserve /acility in prticulr

reserve re*ion shll su%mit stndin' reserve o//er for

ech of its rele$nt reserve /acilities in respect of tht

reserve re*ion for ech tradin* interval for ech dy of

the wee in ccordnce with the timeta'le.

[email protected] Ech reserve o//er su%mitted %y $eneration Company

under cluse [email protected] shll<

(orrespond to response cp%ility of the rele$nt

reserve /acility which hs %een certified s

meetin' the rele$nt reser$e response

stndrds for tht reserve /acility cate*ory!

in ccordnce with the $rid Code and istri'ution

Code nd

% Include the informtion specified in AppendiB A1.2.

3.?.@.> Ech $eneration Company re'istered s n Ancillary

Services Provider in respect of reserve /acility shll in

consulttion with the System operator su%mit chec dtto %e used %y the Market Operator in ccordnce with

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> ?6



'id for ny tradin* interval in ny dy of the wee my %e

re$ised %y the rele$nt $eneration Company or Customer


3.?.9.2 A stndin' *eneration o//er stndin' reserve o//er or

stndin' demand 'id which is re$ised under cluse 3.?.9.1<

"hll te effect the neBt time #eek aead

pro2ection is initited in ccordnce with the

timeta'leC nd

% "hll only ffect the offers employed in

market dispatc optimi,ation model runs used to

determine pro2ections! dispatc! or pricin* for

periods not lredy co$ered %y #eek+aead

pro2ections which h$e lredy %een pu'lised!

or whose preprtion hs lredy %een initited t

the time when the re$ised offer or %id is ccepted.

0'3'9 In##a, se#n% $/ Ma!.e O//e!sB#ds

!hen the Market Operator updtes mret proection under cluse

3.@ the standin* o//ers nd standin* 'ids shll %e effecti$e in the

%sence of re$ised market o//ers nd market 'ids for the correspondin'

tradin* interval nd dy of the wee.

0'3' Re5#s#$n $/ Ma!.e O//e!sB#ds

3.?.11.1 Ech scheduled %radin* Participant which hs su%mitted

standin* o//ers or 'ids my re$ise ny of its market o//ers

or market 'ids for ny tradin* interval in ny tradin* day

of the current #eek+aead market ori,on in ccordnce

with the timeta'le nd su%ect to cluse 3.?.11.3 nd

ech re$ised market o//er or market 'id su%mitted shll

pro$ide the informtion set out in AppendiB A2.

3.?.11.2 Ech $eneration Company which hs su%mitted schedule

of loadin* levels for its non+sceduled *eneratin* units

shll re$ise its schedule of loadin* levels if it reson%ly

eBpects tht ny of its nticipted loadin* levels will

differ mterilly from those pre$iously su%mitted.

3.?.11.3 In ccordnce with the timeta'le re$ised market o//er or market 'id su%mitted under cluse 3.?.11.1 shll te




to %e or to cuse mteril d$erse chn'e in

circumstnces for the purposes of cluse 3.?.11.6.

3.?.11. Ech mret offer or market 'id for prticulr tradin*

interval is deemed to stnd with effect from the time it is

initited under cluse 3.?.10 or re$ised under cluse

3.?.11 nd will %e used in preprin' ll market /orecasts

dispatc tr'ets or prices for tht tradin* interval unless

nd until $lid re$ision to the market o//er is ccepted

%y the Market Operator .

0'3'C$n/#!ma#$n $/ Re"e#p $/ 7a,#d O//e!s and B#ds

3.?.12.1 To %e $lid *eneration o//ers reserve o//ers or demand

'ids shll %e su%mitted %y the rele$nt %radin*

Participant<

In ccordnce with cluse 3.?.1

% In ccordnce with the timeta'leC nd

c (onsistent with the chec dt su%mitted %y

the %radin* Participant under cluses 3.?.?.3

3.?.6.3 nd 3.?.@.> s pproprite.

3.?.12.2 The #ret *pertor shll send to ech Trdin' Prticipnt

horn whom it hs recei$ed $lid 'enertion offer reser$e

offer or $lid demnd %id n electronic confirmtion of

receipt nd cceptnce of tht 'enertion offer reser$e

offer or demnd %id in ccordnce with the timet%le.

3.?.12.3 If %radin* Participant does not recei$e confirmtion of

receipt under cluse 3.?.12.2 from the Market Operator

in ccordnce with the timeta'le the %radin* Participant

shll contct the Market Operator to determine whether

or not the *eneration o//er reserve o//er or demand 'id

ws recei$ed.

3.?.12.> If the offer or %id is in$lid the Market Operator shll

promptly inform the %radin* Participant to resu%mit

corrected *eneration o//er! reserve o//ered demand 'id in

ccordnce with cluse 3.?.11.0'3'0O5e!:!#d#n% C$ns!a#ns




3.?.13.1 "u%ect to cluse 3.?.13.3 the System Operator my

re4uire the Market Operator to impose constrints on the

power flow ener'y 'enertion of specific fcility in the

7rid to ddress system security thret to miti'te the

effects of system emer'ency or to ddress the need to

disptch 'enertin' units to comply with systems

re'ultory nd commercil tests re4uirements. The System

Operator my lso relB eBistin' constrints or system

re4uirements on power flows ener'y 'enertion nd

reser$es if the Market Operator is un%le to produce

fesi%le disptch schedule. As amended *- DOE DC

NO'92:9:99 daed 2 O"$*e! 92)

The System operator in consulttion with the Market

Operator nd the %radin* Participants shll de$elop the

criteri nd procedures for disptch of 'enertin' units

tht re re4uired to run s result of the imposition or

relBtion of constrints stted in the precedin'

pr'rph nd the mnner for compenstin' sid units.

(As amended *- DOE DC NO'998:9:999 and /+!he!

amended *- DOE DC N$' 998:93:9998 daed 3 Ma-

998)

3.?.13.2 In situtions where offers re structured in such wy tht

pro$ision of ny le$el of reser$e ser$ices prohi%its the

simultneous pro$ision of $ery low or hi'h le$els of

'enertion the System operator my lso recommend to

the Market Operator tht constrints should %e imposed or

relBed so s to llow *eneratin* systems to operte in

rn'e which llows increse of either reser$e lloction or

ener'y 'enertion s pproprite h$in' re'rd to<

(As amended *- DOE DC N$' 998:93:9998 daed 3 Ma-

998)

The commercil interests of %radin* ParticipantsC

nd














tradin* interval reserve lloctions for the tradin*

interval ssocited ener*y prices t ll tradin* nodes in

the po#er system nd when pplic%le reserve prices for

ll reserve re*ions.

3.6.1.2 The Market Operator shll mintin nd pu'lis the

formultion of the market dispatc optimi,ation model!

nd the performnce stndrds in ccordnce with the

WESM o%ecti$es.

3.6.1.3 The o%ecti$e of the market dispatc optimi,ation model

shll %e to mBimi5e the $lue of dispatced load %sed on

dispatc 'ids! minus<

The cost of dispatced *eneration %sed on

dispatced o//ers

% The cost of dispatced reserves %sed on

reserves contrcted for or when pplic%le reserve

o//ersC nd

c The cost of constraint violation %sed on the

constraint violation coe//icients.

3.6.1.> In formultin' the market dispatc optimi,ation model

the Market Operator nd System operator shll ensure

tht the dispatc for ech tradin* interval is mde su%ect

to<

(onstrints representin' limits on 'enertion offer

demnd %id nd when pplic%le reser$e 4untities

s specified %y Trdin' Prticipnts in ccordnce

with cluse 3.? eBcept to the eBtent tht s they

my %e relBed in ccordnce with cluse 3.?.13C

% (onstrints representin' the technicl

chrcteristics of reser$e fcility cte'ories

includin' when pplic%le reser$e effecti$eness

fctors initilly set t one 1C

c Ener'y %lnce e4utions for ech node in the

mret networ model ensurin' tht the net lod

forecst for the end of the trdin' interval t ech




market tradin* node s determined %y the Market

Operator is metC

d (onstrints representin' limittions on the rmp

rte from the plnt sttus deemed to

pply prior to the commencement of the

trdin' inter$lC

e (onstrints definin' power system reser$e

re4uirements s pro$ided %y the "ystem opertor

under cluse 3.?.3C

f +etwor constrints s implied %y the mret

networ model pro$ided %y the System operator

under cluse 3.?.3C

' -oss nd impednce chrcteristics of mret

networ lines s d$ised %y the "ystem opertor

under cluse3.?.3 nd defined in AppendiB A2C

h (onstrints on ,L&( lin opertions s d$ised %y

the "ystem opertor under cluse 3.?.3 nd

defined in AppendiB A2C

i Power flow e4utions s defined %y &(

pproBimtion to n A( power flow within A( su%:

systems or e4ui$lent mthemticl

representtionC(As amended *- DOE DC N$' 998:

9:999 daed 9 an+a!- 998)

Any o$erridin' constrints imposed on the

recommendtion of the "ystem opertor in

ccordnce with cluse 3.?.13C nd

Any dditionl constrints due to ncillry ser$ices

or system security re4uirements.

3.6.1.? The market dispatc optimi,ation model shll %e desi'ned

so tht su%ect to the pproBimtions nd dustments

pro$ided for %y cluse 3.6.><

It will produce n optimal dispatc 'i$en the

o%ecti$e defined %y cluse 3.6.1.3 nd the

constraint structure defined %y cluse 3.6.1.> ndspecifyin' dispatc tr'ets for ech sceduled


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*eneratin* unit sceduled load and reserve

/acility

% It will produce schedule of flows on ech

trnsmission line correspondin' to the optiml

disptch determined in ccordnce with cluse

3.6.1.? C

c It will produce ener'y prices for ech mret

trdin' node nd when pplic%le reser$e price for

ech reser$e re'ion so tht the recommended

disptch tr'ets for ech indi$idul Trdin'

Prticipnt would %e optiml for tht prticipnt t

those prices 'i$en their offers nd demnd %ids

nd fter ccountin' for other constrints which

my ffect tht Trdin' Prticipnt nd

d It will perform its functions in ccordnce with the

performnce stndrds ppro$ed %y the PEM Board .

0'8' C$ns!a#n 7#$,a#$n C$e//#"#ens

3.6.2.1 The constrint $ioltion coefficients shll<

e set so s to ensure tht the market dispatc

model will lwys find solution which stisfies ll

constraints! if such solution eBistsC

% e set so s to ensure tht %indin' constrints re

prioriti5ed such tht constrints resultin' in the

lowest reduction in the cp%ility of the networ

lod or 'enertin' units will occur firstC nd

c e set so s to ensure tht the prices produced %y

the mret optimi5tion l'orithm will %e

pproprite in ll the circumstnces tin'

into considertion the processes defined in section

3.10 to dust or o$erride those prices for

settlement purposes.

3.6.2.2 The constraint violation coe//icients my<

Lry ccordin' to the time of dy or on ny other

%sis s determined %y the #ret *pertor




% Increse pro'ressi$ely s the constrint %ecomes

more se$ereC nd

c Increse or decrese s function of the len'th of

time for which the constraint hs %een $iolted.

3.6.2.3 The constraint violation coe//icients for the nodl ener*y

'alance e1uations referred to in cluse 3.6.1.> c<

!ill %e nown s the nodl $lue of lost lod nodl

Lo--C nd

% #y $ry from node to node ndDor %e set so s to

reflect lod sheddin' priorities.

3.6.2.> The Market Operator in coordintion with the "ystem

*pertor nd in consulttion with the !E"# #em%ers shll

re'ulrly re$iew the ppropriteness nd pplic%ility of

constrint $ioltion coefficients le$els in ccordnce with

cluse 10.>.11.1C nd re$ise s my%e necessry to ensure

tht it reflects the ctul conditions of the networ. "uch

re$isions shll %e ppro$ed %y the PE# ord nd shll %e

pu%lished in ccordnce with the timet%le. (Added as pe!

DOE DC' N$' 99:90:9992 daed Ma!"h 99)

0'8'0 Ine!p!ea#$n $/ M$de, O+p+s

The output of the market dispatc optimi,ation model is to %e

interpreted s pro$idin' ener*y nd when pplic%le reserve dispatc

tr'ets for the end of ech tradin* interval to which the market

dispatc optimi,ation model is pplied.

0'8'2 M$de,#n% App!$#ma#$ns

3.6.>.1 If the Market Operator deems it to %e pproprite in ll

the circumstnces the market dispatc optimi,ation

model my incorporte reson%le pproBimtions so s to

render the optimi5tion pro%lem sol$%le usin' n

est%lished optimi,ation metodolo*y such s liner

pro'rmmin'.

3.6.>.2 Any pproBimtions introduced in ccordnce with cluse

3.6.>.1<

#y in$ol$e producin' piece:wise linerpproBimtion to non:liner functionC




% #y in$ol$e producin' con$eB pproBimtion to

non:con$eB functionC

c #y include utomted procedures to del with

situtions in which choice shll %e mde to

impose or relB certin constraints! s pro$ided for

in cluse 3.?.13C nd

d "hll preser$e under ll opertin' conditions n

ccurcy which is 'enerlly ccept%le to ll WESM

mem'er s nd prticulrly to ny %radin*

Participants directly ffected %y such

pproBimtions.

0'8'3 M$de, De5e,$pmen

)rom time to time the System operator nd the Market Operator shll

in$esti'te the scope for further de$elopment of the market dispatc

optimi,ation model %eyond the minimum re4uirements specified in

cluse 3.6.1 nd su%mit their recommendtions in report to the PEM

Board for consulttion with WESM mem'er s.

(As amended *- DOE DC N$'993::99 daed N$5em*e! 993)

0'8'8 Ma!.e Se,emen

The mret shll %e clered prices determined nd disptch

determined ccordin' to the model results for ech tradin* interval in

the form tht is written. The model results shll not %e chllen'ed eB:

post.

In the e$ent tht %radin* Participants identify solution inconsistencies

with the stted definition nd o%ecti$es of the model the Market

Operator will formulte pln to correct the model.

+otwithstndin' such model solution errors the spot market shll

continue to %e clered ccordin' to the model results until model

re$ision is put into ser$ice in ccordnce with cluse 3.6.?.

0'; MARKET PROECTIONS

The Market Operator shll prepre nd pu'lis #eek aead pro2ections nd

day aead pro2ections usin' the market dispatc optimi,ation model in

ccordnce with the timeta'le.

0';' Wee. Ahead P!$4e"#$ns


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[email protected] Week aead pro2ections shll %e prepred %y the Market

Operator nd pu'lised dily in ccordnce with the

timeta'le to ssist %radin* Participants to nticipte nd

respond to the rn'e of spot market conditions which

mi'ht reson%ly %e eBpected to occur o$er the

forthcomin' wee.

[email protected] Market pro2ections shll %e prepred for ll tradin*

intervals within the rele$nt market ori,on s defined in

the timeta'le.

0';' Da- Ahead P!$4e"#$ns

[email protected] ay aead pro2ections shll %e prepred usin' the

market dispatc optimi,ation model %y the Market

Operator nd pu'lised re'ulrly throu'h the dy in

ccordnce with the timeta'le to ssist %radin*

Participants to nticipte nd respond to the rn'e of spot

market conditions which mi'ht reson%ly %e eBpected to

occur o$er the forthcomin' dy.

[email protected] Market pro2ections shll %e prepred for ll tradin*

intervals within the rele$nt market ori,on s defined in

the timeta'le.

0';'0 P!epa!a#$n $/ Ma!.e P!$4e"#$ns

[email protected] Ech market pro2ection shll te into considertion<

The net#ork service provider data prepred in ccordnce

with cluse 3.?.2C

% Reserve re1uirements the nticipted market net#ork

model con/i*uration! constraints and system security

re4uirements for ech reserve re*ion! s d$ised %y the

System operator in ccordnce with cluse 3.?.3C

c The forecst demnd informtion prepred in ccordnce

with cluse 3.?.>C

d The *eneration o//er informtion su%mitted %y ech

rele$nt %radin* Participant in ccordnce with cluse

3.?.?C




e The loadin* levels for ech non:scheduled nd &RE

*eneratin* units with intermittent ener*y resource in

ccordnce with cluse3.?.?C nd

f !hen pplic%le the reserve o//er informtion su%mitted

%y ech rele$nt Trdin' Participant in ccordnce with

cluse3.?.@ nd 3.?..

[email protected] Prior to the preprtion of ech set of market pro2ections

te Market Operator shll in consulttion with the System

operator prepre n eBpected unrestrined net load

/orecast in ccordnce with the procedures de$eloped

under cluse 3.?.> nd such num%er of other lod

scenarios s my %e determined in consulttion with !E"#

Participants nd ppro$ed %y the PEM Board .

[email protected] The #ret *pertor shll prepre mret proection

correspondin' to ech lod scenrio de$eloped under

cluse [email protected].

[email protected].> !hen pro%%ility of si'nificnt filure in the power

system hs %een d$ised to the "ystem opertor the

#ret *pertor my in consulttion with the "ystem

*pertor lso prepre mret proections in which the

constrint structure is modified to represent sitution in

which such filures occur.

[email protected].? #ret proections shll %e prepred %y the #ret

*pertor throu'h the ppliction of the mret disptch

optimi5tion model to ll trdin' inter$ls within the

rele$nt mret hori5on s defined in the timet%le.

[email protected] !hen preprin' market pro2ection the strtin'

conditions for ech successi$e tradin* interval shll %e

determined<

In respect of the first tradin* interval s the

ctul or eBpected po#er system conditions t the

time of the commencement of the market

pro2ectionC nd

% In respect of su%se4uent tradin* intervals s theproected po#er system conditions determined %y




the market dispatc optimi,ation model for the

end of the pre$ious tradin* interval in tht market

pro2ection.

[email protected].@ The #ret *pertor shll pu%lish dditionl updted

$ersions of mret proection in the e$ent of chn'es

which in the opinion of the #ret *pertor re mteril

nd which should %e communicted to Trdin'

Prticipnts.

[email protected]. The Market Operator shll document the eBct procedure

it uses for preprtion of market pro2ections nd me the

procedure $il%le to ll %radin* Participants.

0';'2 P+*,#shed In/$!ma#$n

3.@.>.1 sed on the informtion referred to in cluse [email protected] ech

market pro2ection pu'lised %y the Market Operator in

ccordnce with the timeta'le shll contin the followin'

informtion for ech tradin* interval in the period co$ered

%y the market pro2ection7

The ssumed net load /orecast t ech market

net#ork node! plus re4uired reserves for ech

reserve re*ion

% The re4uired le$el of reserve for ech reserve

re*ion

c Any modifictions to plant or net#ork $il%ility

which the Market Operator my h$e mde under

cluse 3.?.13 in formin' this proectionC

d Proected ''re'te dispatc of scheduled

*eneratin* units nd sceduled load t ech

market net#ork node

e Proected ''re'te clered reserve 1uantities for

reser$e re'ions nd reserve /acility cate*ories

f The proected market price for ech market

tradin* nodeC

' !hen pplic%le pro2ected reserve prices for ech

reserve re*ion ndh Identifiction nd 4untifiction of<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> @0



1 Proected load seddin* re4uirementC

2 Proected violations o/ system security

3 Proected filure to meet reserve

re4uirementsC

> %radin* intervals for which low or

inde4ute cpcity mr'ins re proected

to pplyC nd

? Proected con'estion on market net#ork

linesC nd

6 Constraint violation coe//icients.

0'< SCHEDULIN6 AND DISPATCH IMPLEMENTATION

0'<' Resp$ns#*#,##es $/ he Ma!.e Ope!a$!

Prior to commencement of ech trdin' inter$l the Market Operator

shll in consulttion with the 7rid *pertor nd in ccordnce with the

timeta'le7

(As amended *- DOE DC N$'990::99 daed N$5em*e! 993) &etermine or estimte the sttus of ll 'enertion fcility for

tht tradin* intervalC

% Prepre forecst of the unrestrained net load eBpected t ech

market tradin* node for the end of tht tradin* intervalC

(As amended *- DOE DC N$'993::99 daed N$5em*e! 993)

c Adust tht unrestrained net load /orecast to ccount for load

seddin*! if re4uired in ccordnce with cluse 3.9.?C

d &etermine the most pproprite networ confi'urtion nd stte

to %e ssumed for the end of tht tradin* intervalC

e =se the market dispatc optimi,ation model to determine the

tar*et loadin* level in MW for ech sceduled *eneratin* unit or

sceduled load nd for ech reserve /acility for the end of tht

tradin* interval usin' the ltest dt from the System operator

nd %radin* ParticipantsC nd



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f "u%mit to the System operator the dispatc scedule continin'

the tr'et loadin* levels to %e chie$ed t the end of tht

tradin* interval determined in ccordnce with cluse 3..1 e.

0'<' Resp$ns#*#,##es $/ he S-sem $pe!a$!

3..2.1 &urin' ech tradin* interval the System Operator shll

use its reson%le ende$ors to<

Implement the dispatc tr'ets determined %y the

Market Operator

% #intin system security consistent with the

re4uirements of the $rid Code

c Implement load seddin* if necessry s pro$ided

%y cluse 3.9C

d &isptch Constrain+on or Constrain+o// 'enertors

or Must+Run nits if ll $il%le fre4uency

re'ultion nd contin'ency reser$es re eBhusted

durin' trdin' inter$l. The System Operator my

lso disptch 'enertors s Must+Run nits in

specific 'rid res which h$e %ecome isolted from

the rest of the 'rid nd in which the #ret

*pertor cnnot determine the 'enertor

schedulesC

e In reltion to d %o$e the System Operator shll

incorporte to its Ancillry "er$ice Procurement

Pln #ust:Run =nits s n dditionl type of

Ancillry "er$ice. )or this purpose the criteri nd

procedures de$eloped under (luse 3.?.13 shll %e

re$ised ccordin'lyC nd

f Inter$ene where necessry s pro$ided %y (luses

6.3 nd 6.?.

As amended *- DOE DC N$'92:9:99 daed

2 O"$*e! 92)

3..2.2 After ech Tradin* 0nterval in ccordnce with the

%imeta'le the System Operator shll d$ise the MarketOperator of<




"itutions in which it %ecme necessry for disptch

instructions to de$ite from the disptch tr'ets

determined %y the Market Operator durin' the

tradin* intervalC

% 5oad Seddin* or other directions issued %y the

System operator durin' the %radin* 0ntervalC

(As amended *- DOE DC N$'993::99 daed

N$5em*e! 993)

c "i'nificnt incidents in which contin*ency reserve

ws clled upon durin' the tradin* intervalC

d &et#ork constraints which ffected dispatc durin'

the tradin* interval

e indin' security constrints which ffected disptch

durin' the trdin' inter$lC nd

f *pertionl irre'ulrities risin' durin' the

trdin' inter$l includin' %ut not limited to ny

circumstnces in which there ws prim fcie

e$idence of filure to follow disptch instructions.

The System Operator shll liewise pro$ide disptch

de$ition report to the Market Operator in ccordnce

with the %imeta'le! detilin' mon' others the

circumstnces nd disptch le$els of units tht were

Constrained+on or Constrained+o// or put on must:run

durin' %radin* 0nterval. As amended *- DOE DC

N$'92:9:99 daed 2 O"$*e! 92

0'<'0 C$mm+n#"a#$n $/ a!%e ,$ad#n% ,e5e,s

The System operator shll communicte the tr'et loadin* levels to

%radin* Participants for ech tradin* interval prior to the

commencement of tht tradin* interval in ccordnce with the

timeta'le nd consistent with the $rid Code.

0'<'2 D#spa"hed T!ad#n% Pa!#"#pans

%radin* Participants who re dispatced shll use reson%le ende$ors

to chie$e linear ramp rate o$er the tradin* interval rech the tr'et

loadin* level %y the end of tht tradin* interval nd within the dispatc








tolerances specified in cluse 3..@ nd those %radin* Participants will

not %e re4uired to operte in ny different fshion unless re4uired to<

Respond in ccordnce with reserve or ancillary service

contrctsC or

% Respond to direction in ccordnce with cluses 6.3 nd 6.?.

0'<'3 Ramp Rae $/ T!ad#n% Pa!#"#pan

!here pplic%le %radin* Participants will %e ssumed to h$e linear

ramp rate o$er tht tradin* interval to rech the tr'et loadin* levels

%y the end of tht tradin* interval.

0'<'8 De5#a#$ns /!$m he Ramp Rae

If %radin* Participants in some prt of the po#er system de$ite in

''re'te from the ssumed 5inear Ramp Rate for ny reson or s

result of ny cuse includin' the initition of 5oad Seddin* under

(luse 3.9.3 these de$itions shll %e delt with %y the System

Operator utili5in' the Reserves! or other Ancillary Services scheduled to

del with such circumstnces in ccordnce with (luse 3.3.

%radin* Participants re re4uired to comply with liner rmpin' in ny

trdin' inter$lC otherwise the Market Operator or the System

Operator shll report the 'enertor to the Market Surveillance

Committee.

As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)

0'<'; D#spa"h T$,e!an"es

[email protected] ispatc tolerances shll %e set to llow limits on the

eBtent to which %radin* Participants my de$ite from

dispatc tr'ets issued %y the System operator .

[email protected] The Market Operator shll mintin nd pu'lis dispatc

tolerances stndrds de$eloped %y the System operator for

ech type of plnt nd loction in ccordnce with the

$rid Code and istri'ution Code.

0'<'< San"#$ns $/ T!ad#n% Pa!#"#pans

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> @>



Any %radin* Participant who consistently fils to use its reson%le

ende$ors to ct in ccordnce with ispatc instructions issued under

(luse 3..3 or who %reches the ispatc %olerance stndrds

pu'lised under (luse [email protected] my %e li%le of snction imposed

under (luse @.2.

%radin* Participants tht re not complint to the ispatc Scedule or

liner rmpin' ssumptions tht h$e %een identified %y the System

Operator to cuse the constrinin':off of other 'enertin' units shll

compenste the isplaced $enerator or $enerators in ccordnce with

the mechnism to %e de$eloped %y the #ret *pertor under (luse

3.13.1>.3.


0'= TREATMENT OF LOAD SHEDDIN6? ECESS 6ENERATION AND RESER7E

7IOLATION

(As amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)

0'=' D#!e"#$n $ C$nd+" L$ad Shedd#n%The System Operator my direct WESM mem'er to conduct load

seddin* in response to<

(As amended *- DOE DC N$' 92:90:999; daed 8 Ma!"h 92)

An o$erll short'e of ener*y t node or in re'ion specified in

the market net#ork model or

% *ther net#ork conditions s determined %y the System operator s

ccordnce with the procedures est%lished under the $rid Code

and istri'ution Code.

0'=' Ma!.e Ope!a$! Ad5#"e $n L$ad Shedd#n%

In the e$ent tht<

ay aead pro2ections performed under cluse 3.@C or

% ispatc optimi,ation performed under cluse 3.indicte tht

nodl ener*y prices re eBpected to %e e4ul to or eBceed nodl

Lo-- t ny customer nodes in the market net#ork model then

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> @?

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the Market Operator shll immeditely inform the System

operator of the lielihood of inititin' load seddin* t those

nodes.

0'='0 S-sem $pe!a$! Resp$ns#*#,#- $ In##ae L$ad Shedd#n%

The System Operator .

"hll if d$ised %y the #ret Operator under cluse 3.9.2

consider the need to initite load seddin* t those nodes or t

other nodes fter tin' ccount of the load seddin* tr'ets

from the rele$nt dispatc optimi,ation nd ny other

considertions which the System operator considers rele$nt

under the $rid Code and istri'ution Code nd ny other

pplic%le re'ultory instrumentC nd

% #y initite load seddin* in response to ny other circumstnces

which it reson%ly considers necessittes such ction under the

$rid Code and istri'ution Code or ny other pplic%le

re'ultory instrument.

0'='2 Ad5#s#n% $/ L$ad Shedd#n%

If it is nticipted tht load seddin* will occur in tradin* interval the

System operator shll s soon s possi%le d$ise its lod sheddin' plns

to<

The Market Operator C nd

% WESM mem'ers who re liely to %e directly ffected %y such

load seddin*. (As amended *- DOE DC N$' 92:90:999;

daed 8 Ma!"h 92)

0'='3 Re5#s#n% F$!e"ass

If d$ised %y the System operator of the lielihood of load seddin* in

ny tradin* interval under cluse 3.9.> the Market Operator shll s

soon s possi%le<

If prcticl within the time frme reminin' %efore the strt of

tht tradin* interval re$ise the load /orecasts to %e used to

determine the dispatc scedule for tht tradin* interval in

ccordnce with cluse 3.?.>.> to ccount for those load

seddin* plansC nd


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As amended *- DOE DC N$'92:9:99 daed 2

O"$*e! 92)

3.9..3 &urin' %radin* 0nterval if E3cess

$eneration is imminent or is detected in the Po#er

System %y the System Operator in ccordnce with the

$rid Code nd it is est%lished tht the E3cess $eneration

is %ein' cused %y $eneratin* System tht is not

followin' its disptch schedule or o%ser$in' liner rmp

rte then the $eneration Company representin' the

$eneratin* System in the mret my %e li%le of

snction under (luse @.2. The 7enertion (ompny

representin' the 7enertin' "ystem tht is not followin'

its ispatc Scedule or o%ser$in' liner rmp rte

howe$er shll compenste other $eneration System tht

hs %een constrined:off %y the System Operator . "uch

conditions shll lso %e considered in the procedures to %e

de$eloped under (luse 3.9..2.


O"$*e! 92)

0'='= Mana%emen P!$"ed+!es /$! Rese!5e 7#$,a#$n

(Added as pe! DOE DC N$' 998:9:999 daed 9 an+a!- 998)

3.9.9.1 "hould either the disptch optimi5tion or ny mret

proection indicte $ioltion of reser$e re4uirement

the Market Operator shll< (Added as pe! DOE DC N$'

998:9:999 daed 9 an+a!- 998)

Promptly d$ise the System operator tht it my %e

necessry to reduce the le$el of the reser$e

re4uirement.

% Reduce the reserve re4uirement %y the minimum

mount to le$el tht pre$ents $ioltion of tht

re4uirement.




c "ol$e the market dispatc optimi,ation model with

the reduced reserve re4uirement.

3.9.9.2 The prices determined in cluses 3.10.2 3.10.6 nd

3.10.10 will %e deri$ed from the solution of the market

dispatc optimi,ation model pro$ided for in cluse 3.9.9.1

c (Added as pe! DOE DC N$' 998:9:999 daed 9

an+a!- 998)

0'9 DETERMINATION OF MARKET PRICES

0'9'Ca,"+,a#$n $/ P!#"es

)or ech tradin* interval the Market Operator shll clculte nd

pu%lish in ccordnce with the timeta'le<

E3+ante nodal ener*y prices in ccordnce with cluse 3.10.2C

% E3+ante ,onal ener*y prices in ccordnce with cluse 3.10.3C

c E3+post nodal ener*y prices in ccordnce with cluse 3.10.6C

d E3+post ,onal ener*y prices in ccordnce with cluse 3.10.C nd

e !hen pplic%le ,onal reserve prices in ccordnce with cluse

3.10.10.

0'9'Dee!m#na#$n $/ E:Ane N$da, Ene!%- P!#"eThe e3+ante nodal ener*y price for ech market tradin* node in ny

tradin* interval shll su%ect to cluse 3.10.? %e determined s the

sado# price on the ener*y 'alance e1uation or e4ui$lent

mthemticl formultion for tht market tradin* node formed in

ccordnce with cluse 3.6.1.> c in the dispatc optimi,ation

performed for tht tradin* interval in ccordnce with cluse 3..1. (As

amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)

0'9'0Dee!m#na#$n $/ E:Ane @$na, Ene!%- P!#"es

E3+ante ,onal ener*y prices shll %e determined for ech customer

pricin* ,one.

0'9'2P+*,#sh#n% E:Ane P!#"es A""$!d#n% $ T#mea*,e

The Market Operator shll pu'lis the e3+ante nodal ener*y prices nd

te e3+ante ,onal ener*y prices! prior to the commencement of the

tradin* interval to which they pply in ccordnce with the timeta'le.








0'9'3P!#"#n% E!!$! N$#"e

In the e$ent where no e3+ante prices cn %e determined or

communicted within the timefrme specified %y the timeta'le or the

clculted prices re %elie$ed to %e in error s result of load

seddin* occurrence of constraints violation coe//icients or for ny

other reson< (As amended *- DOE DC 993::99 daed

N$5em*e! 993)

The Market Operator my s soon s possi%le fter the end of

tradin* interval issue pricin* error notice in which cse the

e3+post 1uantities nd the e3 post prices determined ccordin' to

cluse 3.10.@ shll lso ser$e s eB:nte 4untities nd eB:nte

prices. If no eB:post prices cn %e determined or the clculted

prices re %elie$ed to %e in error s result of the imposition or

relBtion of constrints pursunt to cluse 3.?.13.1 the Market

Operator shll re:run the Market ispatc Optimi,ation Model.

(As amended *- DOE DC N$'993::99 daed N$5em*e!

993 and /+!he! amended *- DOE DC N$' 998:93:998 daed

3 Ma- 998)

The Market Operator shll de$elop nd pu%lish the procedures for

the determintion of the mret re:run prices. "uch procedures

shll pro$ide the criteri nd conditions for the mret re:run nd

the timet%le for implementtion. (As amended *- DOE DC

N$'99:90:9992 daed Ma!"h 99)

% If no pricin* error notice is issued within the time specified in the

fore'oin' pr'rph the e3+post prices nd 4untities shll ser$e

s eB:nte prices nd 4untities nd shll stnd irrespecti$e of

the outcome of ny su%se4uent in$esti'tions or resolutions of

ny dispute.

(As amended *- DOE DC N$' 993::99 N$5em*e! 993)

c "hould the pricin' error lso include reserves the reserve

4untity nd price determined in the e3+post run shll ser$e s

the reserve 4untity nd prices. (Added as pe! DOE DC N$'

993::99 N$5em*e! 993)

0'9'8 Dee!m#na#$n $/ E:P$s N$da, Ene!%- P!#"e


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The e3+post nodal ener*y price for ech market tradin* node shll %e

determined s the sado# price on the ener*y 'alance e1uation or

e4ui$lent mthemticl formultion for tht market tradin* node

formed in ccordnce with cluse 3.6.1.> c in e3+post dispatc

optimi,ation performed in ccordnce with the timeta'le to

determine tr'et dispatc le$els for the end of tht tradin* interval

ssumin'<(As amended *- DOE DC N$' 993::99 daed

N$5em*e! 993 and /+!he! amended *- DOE DC N$' 998:9:999

daed 9 an+a!- 998)

the plant sttus t the end of tht tradin* interval s determined

for the eB:post disptch optimi5tion or if lod sheddin' occurred

in tht tradin* interval the plant sttus which would h$e

pertined t the end of tht tradin* interval s indicted in the

tr'ets determined %y the eB:post disptch for tht tradin*

intervalC(As amended *- DOE DC N$' 993::99 N$5em*e!

? 993)

% The *eneration o//ers which pplied t the %e'innin' of tht

tradin* interval. (As amended *- DOE DC N$' 993::99

N$5em*e! ? 993)

c The unrestrained load determined from meterin* data or

estimted t the end of tht trdin' inter$l to pply t ech

market net#ork node for tht tradin* interval. (As amended *-

DOE DC N$' 993::99 N$5em*e! ? 993)

d A mret networ confi'urtion nd networ stte which the

#ret

*pertor in consulttion with the System operator in its

reson%le opinion determines to %est represent net#ork

conditions pertinin' for the durtion of the tradin* interval s

pro$ided for %y the procedures de$eloped under cluse 3.10.@C

nd

e Any rele$nt constrints recommended %y the System Operator

to represent system security conditions or ctul 'enertion

performnce o$er the tradin* interval s pro$ided for %y the

procedures de$eloped under cluse [email protected]'9';P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e






















The Market Operator in consulttion with WESM participants nd

su%ect to ppro$l %y the PEM Board shll de$elop nd pu%lish the

procedures to %e employed in cluses 3.10.6 d nd e in est%lishin'

the networ confi'urtion nd other constrints to %e ssumed for the

determintion of e3+post nodal ener*y prices for circumstnces in which

power system conditions mterilly chn'e durin' the tradin* interval

with $iew to ensurin' tht<(As amended *- DOE DC N$' 993::99

daed N$5em*e! 993)

(onsistency is mintined %etween the mret networ

confi'urtion nd stte determined in ccordnce with cluse

3.10.6 d ny constrints determined in ccordnce with cluse

3.10.6 e nd the unrestrined net lods mesured or estimted

for ech mret networ node in ccordnce with cluse 3.10.6

cC nd

% The eB:post prices produced in ccordnce with cluse

3.10.6properly nd firly represent conditions t the end of the

trdin' inter$l'

0'9'<Dee!m#na#$n $/ E:P$s @$na, Ene!%- P!#"es

The e3+post ,onal ener*y prices for ech tradin* interval shll %e lod

wei'hted $er'e of the e3+post nodal ener*y pr ices within customer

pricin* ,one.

0'9'=Dee!m#na#$n $/ E:Ane And E:P$s Ene!%- Se,emen P!#"es

"u%ect to cluse 3.10.? the e3+ante ener*y settlement prices and e3+

post ener*y settlement prices for ech market tradin* node in ech

tradin* interval shll %e<

The e3+ante ,onal ener*y price and te e3+post ,onal ener*y

price for tht tradin* interval determined for tht customer

pricin* ,one in ccordnce with cluses 3.10.3 nd 3.10.

respecti$ely if tht node is deemed to %e customer node nd to

lie in defined customer pricin* ,one nd

% The e3+ante nodal ener*y price and te e3+post nodal ener*y price for tht node in tht tradin* interval determined in








ccordnce with cluses 3.10.2 nd 3.10.6 respecti$ely for ll

other nodes.

0'9'9Dee!m#na#$n $/ @$na, Rese!5e P!#"e

!hen pplic%le the ,onal reserve price for ech market reserve ,one

in ech tradin* interval shll %e determined s the sado# price on the

rele$nt reserve re1uirement constraint defined in ccordnce with

cluse 3.6.1.> e in the dispatc optimi,ation for tht tradin* interval

nd pu'lised %y the Market Operator %efore the strt of tht tradin*

interval.

0' MARKET INFORMATION

0'' Ma!.e In/$!ma#$n

3.11.1.1 The Market Operator shll pu'lis the followin'<

&odal ener*y prices for ech market tradin* nodeC

% 8onal ener*y prices for ech customer ener*y

pricin* ,one

c !hen pplic%le reserve prices for ech reserve

re*ion nd

d indin' net#ork constraints! for ech tradin*interval in ccordnce with the timeta'le.

3.11.1.2 As prt of the informtion record under cluse ?.2.? the

Market Operator shll retin detils of<

)inl dispatc offers nd when pplic%le reserve

offersC


N$5em*e! 993)

% )inl dispatc %idsC nd

c Actul $il%ilities of 'enertin' units nd

scheduled lod

d Includin' for ech trdin' interval nd disptch

offer nd disptch %id<

e The identifiction of the %radin*

Participant su%mittin' the dispatc %id or dispatc

offer









N$5em*e! 993)

f The disptch %id or disptch offer prices nd

4untitiesC nd

' The time t which ny finl disptch offer or

disptch %id ws mde.

3.11.1.3 Ech tradin* day in ccordnce with the timeta'le the

Market Operator shll pu'lis7

The sceduled *eneration or sceduled load nd

sceduled reserves for ech sceduled *eneratin*

unit nd sceduled load respecti$ely in ech

tradin* interval for the pre$ious tradin* day C nd

% A summry of the informtion pro$ided to it with

respect to ech tradin* interval %y the System

operator in ccordnce with cluse 3..2.2.

0'' A""ess $ In/$!ma#$n

3.11.2.1 All informtion reltin' to the opertion of the spot

market tht the Market Operator is re4uired to pu'lis in

ccordnce with the WESM Rules shll %e mde $il%le

%y the Market Operator $i the electronic communications

system.

3.11.2.2 If the Market Operator mes informtion $il%le under

cluse 3.11.2.1 %y dditionl mens other thn the

electronic communications system! the Market Operator

my t its discretion chr'e fee for ccess to tht

informtion pro$ided tht such fee reflects the Market

Operator ;s costs of pro$idin' tht informtion.

0' FINANCIAL TRANSMISSION RI6HTS

0''Ma!.e /$! T!ansm#ss#$n R#%hs

!hen necessry or reson%ly fesi%le the Market Operator shll

est%lish mret for transmission ri*ts s ppro$ed %y the PEM

Board .

0''P+*,#"a#$n $/ Rena, In/$!ma#$n


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The Market Operator shll re'ulrly pu'lis in summry form the rentls

ssocited with ech market net#ork line s clculted under cluse

3.13.12.

0''0F+!he! T!ansm#ss#$n R#%hs

)rom time to time nd t lest nnully the Market Operator shll

ssess the potentil for the issunce of further transmission ri*ts of

the form pro$ided for in the settlements process defined %y cluse 3.13.

0''2Mae!s $ C$ns#de! #n Assessmen

The ssessment shll te ccount of the<

&emnd for transmission ri*ts %etween prticulr loctions s

e$idenced %y WESM mem'er su%missionsC

% =ncommitted physicl cpcity %etween those loctions s

indicted %y the difference %etween the physicl cpcity of the

lines in$ol$ed nd the transmission ri*ts lredy issuedC nd

c Economic fesi%ility of supportin' further transmission ri*ts s

indicted %y the difference %etween the line rentl trdin'

mounts clculted for prticulr lines in ccordnce with cluse

3.13.12 nd the cost of supportin' transmission ri*ts

lredy issued s e$idenced %y the transmission ri*ts trdin'

mounts clculted in ccordnce with cluse 3.13.13.

0''3Iss+#n% T!ansm#ss#$n R#%hs

3.12.?.1 %ransmission ri*ts my %e issued %y the Market Operator

nd my %e settled $i the settlements system in

ccordnce with cluse 3.13.1? pro$ided<

The issuer of the transmission ri*t enters

into commitment to support tht

transmission ri*t! in ccordnce with cluse

3.13.2 dC

% The issuer of the transmission ri*t complies with

such prudential re1uirements s my %e ppro$ed

%y the PEM Board under cluse 3.1> tin' into

ccount the implied potentil eBposure of the

issuer to settlement price differences %etween

the nodes in$ol$edC




c The transmission ri*t is defined %etween two

markets tradin* nodes nd

d The rele$nt detils of the transmission ri*ts re

notified to the Market Operator in ccordnce with

cluse 3.13.2.

3.12.?.2 A WESM mem'er my re4uest the Market Operator to

me $il%le transmission ri*t t n pproprite

price.

3.12.?.3 The issunce of transmission ri*t is not to %e

unreson%ly withheld.

0''8A""$+n#n% /$! Ne In"$me

The net income tht will %e deri$ed %y the Market Operator from the

trnsctions re4uired under cluse 3.13.16 or from the sle of

transmission ri*ts shll %e clerly ccounted for nd ten into

ccount when settin' the llow%le chr'es under ny re'ultory

instruments pplic%le to the Market Operator .

0'0 SETTLEMENT UANTITIES AND AMOUNTS

0'0' S+*m#ss#$n $/ B#,ae!a, C$n!a" Daa3.13.1.1 %radin* Participants who sell electricity pursunt to

'ilateral contracts nd wish those 'ilateral contracts to

%e ccounted for in settlements shll fter ech tradin*

day in ccordnce with the %illin' nd settlements

timet%le< (As amended *- DOE DC N$' 993::99

daed N$5em*e! 993)

"u%mit schedule to the Market Operator

specifyin' the

#!, 'ilateral sell 1uantities t ech relevant

market tradin* node in ech tradin* interval of

tht tradin* day

% Identify the counterprty to the %ilterl contrct

nd the prty tht will py the line rentl trdin'

mount ssocited with the %ilterl contrct

4untity su%mittedC pro$ided howe$er tht in cse

only one of the %ilterl counter prties is








re'istered s irect WESM Mem'er! tht WESM

Mem'er shll %e the prty tht will py the line

rentl to the Market Operator C nd(As amended *-

DOE DC N$' 992:9;:99< daed ; +,- 992 and

/+!he! amended *- DOE DC N$' 998::990

daed 9= N$5em*e! 998)

c Pro$ide e$idence tht the counterprty to the

'ilateral contract 'rees with the su%mission mde

under this cluse 3.13.1.1. "uch e$idence shll %e

ttched to the su%mission of schedule in

3.13.1.1. (As amended *- DOE DC N$' 99:90:

9992 daed Ma!"h 99)

3.13.1.2 Bilateral sell 1uantities su%mitted in ccordnce with

cluse3.13.1.1 re to %e deemed to %e 'ilateral 'uy

1uantities for the prty identified in cluse 3.13.1.1 %

t the sme market tradin* node.

0'0'S+*m#ss#$n $/ T!ansm#ss#$n R#%h Daa

3.13.2.1 This section shll pply only upon commencement of the

transmission ri*ts mret est%lished under cluse

3.12.1.

3.13.2.2 %radin* Participants who hold transmission ri*ts nd wish

to h$e those transmission ri*ts ccounted for in

settlements shll fter ech tradin* day! in ccordnce

with the timeta'le su%mit to the Market Operator

schedule specifyin'<

The sendin* node nd receivin* node %etween

which ech transmission ri*t ppliesC

% The #!, 4untities of ech transmission ri*t in

eac tradin* interval of tht tradin* day s they

pply t the sendin* node

c The 'reed loss differentil ssocited with ech

transmission ri*t if ny s proportion of the

4untity specified in cluse3.13.2 %C nd

d Tht the System operator is in 'reement with thesu%mission mde under cluse 3.13.2 nd


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pro$idin' e$idence of tht 'reement nd will

co$er ny deficit in tht System operator ;s

settlements position with the spot market under

cluse 3.13.1?.1% risin' s result of honorin'

this transmission ri*t.

0'0'0Daa /$! B#,ae!a, C$n!a"s and T!ansm#ss#$n R#%hs

The Market Operator shll<

Inform the %radin* Participants which su%mitted dt under

cluse3.13 if ny of the dt pro$ided is in$lid or incompleteC

nd

% If the dt pro$ided under cluse 3.13 is $lid or complete

employ tht dt for settlements purposes in ccordnce with

cluses3.13.@ nd 3.13.13.

0'0'2 @$na, Rese!5e Se,emen +an#-

The ,onal reserve settlement 1uantity for ech %radin* Participant in

ech tradin* interval shll %e clculted s<

The ''re'te cross ll of the %radin* Participant;s fcilities in

the rele$nt reserve re*ion of the reserve tar*et determined %y

the dispatc optimi,ation performed prior to the %e'innin' of

tht tradin* interval in ccordnce with cluse 3..1C multiplied

%y

% The reserve e//ectiveness /actor for tht reserve /acility

cate*ory to %e determined %y the System operator .

0'0'3De/#n#n% he 6!$ss E:Ane Ene!%- Se,emen +an#- /$! Ma!.e

T!ad#n% N$des

3.13.?.1 )or ech tradin* interval the 'ross e3+ante ener*y

settlement 1uantity %efore %ein' dusted for %ilterl

contrcts for ech market tradin* node shll %e

determined %y the Market Operator s follows< (As


90)

If the market tradin* node is defined under cluse

3.2.2.1 s lyin' on the %oundry of the po#er

system operted %y the System operator the 'rosse3+ante ener*y settlement 1uantity for tht market

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201>



tradin* node is the $er'e of the net eBpected

flows into the po#er system operted %y the

System operator throu'h the ssocited meter!

s estimted %y the initil conditions ssumed

for the %e'innin' of the tradin* interval nd %y the

/orecast! or tr'et for the end of tht tradin*

interval for tht market tradin* node ssumed in

or estimted %y the dispatc optimi,ation

performed prior to the %e'innin' of tht tradin*

intervalC (As amended *- DOE DC N$' 90:90:

9993 daed Ma!"h 90)

% If the market tradin* node is defined under cluse

3.2.2.2 s *enerator node lyin' on the

interfce %etween net#orks! pprtus or

e4uipment operted %y prties other thn the

System operator the 'ross e3+ante ener*y

settlement 1uantity for the market tradin* node is

the $er'e of the net eBpected flows throu'h

the ssocited meter from the $eneratin*

Company to the Customer side of the meter! s

estimted %y the initil conditions ssumed for

the %e'innin' of tht tradin* interval nd %y the

tr'et 'enertion for the end of tht tradin*

interval for tht *enerator nodeC (As amended *-

DOE DC N$' 90:90:9993 daed Ma!"h 90)

nd

c If the market tradin* node is defined under cluse

3.2.2.2 s customer node lyin' on the

interfce %etween net#orks! pprtus or

e4uipment operted %y prties other thn the

System operator the 'ross e3+ante ener*y

settlement 1uantity for tht market tradin* node is

the ne'ti$e of the mount determined for the

correspondin' 'enertor node in cluse3.13.?.1 %.




0'0'8De/#n#n% he 6!$ss E:P$s Ene!%- Se,emen +an#- /$! Ma!.e

T!ad#n% N$des

)or ech tradin* interval the 'ross e3+post ener*y settlement 1uantity

%efore %ein' dusted for %ilterl contrcts for ech market tradin*

node shll %e determined %y the Market Operator s follows<

If the market tradin* node is defined under cluse 3.2.2.1 s

lyin' on the %oundry of the po#er system operted %y the

System Operator the 'ross e3+post ener*y settlement 1uantity

for the market tradin* node is the net metered flow into the

po#er system operted %y the System operator throu'h the

ssocited meter pro$ided howe$er tht if the market tradin*

node is customer node! nd there is no ER(:re'istered

em%edded 'enertion fcility ssocited with tht node or the

source of inection cnnot %e trced ny inection shll not %e

ccounted for in determinin' the 'ross e3+post ener*y settlement

1uantity for tht nodeG (As amended *- DOE DC N$' 993::

99 daed N$5em*e! 993 and /+!he! amended *- DOE

C#!"+,a! N$' DC 90:9;:99; daed 8 +,- 90)

% If the market tradin* node is defined under cluse 3.2.2.2 s

*enerator node lyin' on the interfce %etween net#orks!

pprtus or e4uipment operted %y prties other thn the

System Operator the 'ross e3+post ener*y settlement 1uantity for

the market tradin* node is the net metered flows throu'h the

ssocited meter from the $eneration Company to the

Customer side of the meter C nd (As amended *- DOE DC N$'

993::99 daed N$5em*e! 993)

c If the market tradin* node is defined under cluse 3.2.2.2 s

customer node lyin' on the interfce %etween networs

pprtus or e4uipment operted %y prties other thn the

System operator the 'ross e3+post ener*y settlement 1uantity for

the market tradin* node is the ne'ti$e of the mount

determined for the correspondin' *enerator node in cluse

3.13.6.1%.












d If the net metered flows re'istered throu'h meter is

inconsistent with the eBpected power flows t the market tradin*

node to which tht meter is ssocited the Meterin* Services

Provider shll determine nd shll notify the Market Operator

nd the rele$nt %radin* Participant the pproprite mnner of

determinin' the 'ross e3+post settlement 1uantity for tht

market tradin* node. (Added pe! DOE C#!"+,a! N$' DC 90:9;:

99; daed 8 +,- 90)

0'0'; Ene!%- Se,emen +an#- Ad4+smens /$! B#,ae!a,

)or settlement purposes the eB:nte ener'y settlement 4untity for ny

market tradin* node in ny tradin* interval shll %e determined %y the

Market Operator %y dustin' the 'ross :eB:nte ener'y settlement

4untity for tht market tradin* node nd ny tradin* interval s

mesured in ccordnce with cluse 3.13.? for %ilterl contrct

4untities notified to the Market Operator under cluse 3.13.1.1 or

inferred %y the Market Operator under cluse 3.13.1.1 nd ccepted s

$lid under cluse 3.13.1.2 %y< (As amended *- DOE DC N$' 993::

99 daed N$5em*e! 993) (As amended *- DOE DC N$' 90:90:

9993 daed Ma!"h 90)

"u%trctin' ll 'ilateral sell 1uantities notified for tht node in

tht tradin* interval from the mesured or estimted

'ross ener*y settlement 1uantity for tht node in tht tradin*

intervalC nd

% Addin' ll 'ilateral 'uy 1uantities inferred for tht node in tht

tradin* interval to the mesured or estimted 'ross ener*y

settlement 1uantity for tht node in tht tradin* interval.

0'0'<Dee!m#n#n% he E Ane Ene!%- T!ad#n% Am$+n

)or settlement purposes the e3+ante ener*y tradin* amount for ech

market tradin* node nd tradin* interval will %e determined s the e3+

ante ener*y settlement price for tht node in tht tradin* interval

multiplied %y the e3+ante ener*y settlement 1uantity in #!h for tht

node in tht tradin* interval.

0'0'=Dee!m#n#n% he E P$s Ene!%- T!ad#n% Am$+n








)or settlement purposes the e3 post ener*y tradin* amount for ech

market tradin* node nd tradin* interval will %e determined s<

The e3+post ener*y settlement price for tht node in tht tradin*

interval multiplied %y the 'ross e3+post ener*y settlement

1uantity for tht node in tht tradin* interval in #!h s

dusted in ccordnce with cluse >.?.2.2C (As amended *- DOE

DC N$' 90:90:9993 daed Ma!"h 90) minus

% The e3+post ener*y settlement price for tht node in tht tradin*

interval multiplied %y the 'ross e3+ante ener*y settlement

1uantity for tht node in tht tradin* interval in #!h. (As

amended *- DOE DC N$' 90:90:9993 daed Ma!"h 90)

0'0'9 Dee!m#n#n% he Rese!5e T!ad#n% Am$+n

3.13.10.1 )or settlement purposes the reserve+tradin* mount for

ech %radin* Participant who supplies reserve to

prticulr reserve re*ion in tradin* interval will %e

determined s the ,onal reserve price for tht reserve

re*ion in tht tradin* interval multiplied %y the ,onal

reserve settlement 1uantity for tht %radin* Participant in

tht reserve re*ion for tht tradin* interval.

3.13.10.2 &urin' the initil opertion of the interim WESM the

reserve tradin* mount shll %e clculted %sed on the

cost of reserves contrcted for %y the System operator .

0'0' Dee!m#n#n% he Rese!5e C$s Re"$5e!- Cha!%e

The reserve cost recovery car*e for settlement purposes will %e

determined for ech %radin* Participant in ech tradin* interval in

ccordnce with the procedures de$eloped under cluse 3.3.?.

0'0' Ca,"+,a#$n $/ L#ne Rena, T!ad#n% Am$+ns

The Market Operator shll clculte the line rentl trdin' mounts for

ech %ilterl contrct ssocited with the deli$ery of the %ilterl

contrct 4untities (M throu'h the transmission line in the market

net#ork model s< (As amended *- DOE DC N$' 90:90:9993 daed

Ma!"h 90)

The eBpected flow of ener'y out of the receivin* node o/ te

market net #ork line s determined %y the market dispatcoptimi,ation model multiplied %y the e3+ante nodal ener*y




settlement price t tht nodeC less (As amended *- DOE DC N$'

993::99 daed N$5em*e! 993)

% The eBpected flow of ener'y into the sendin' node multiplied %y

the e3+ante nodal ener*y settlement price t tht node of the

market net#ork line s determined %y the market dispatc

optimi,ation model.

0'0'0 Dee!m#n#n% he T!ansm#ss#$n R#%hs T!ad#n% Am$+n

)or settlement purposes the transmission ri*t tradin* amount for

ech transmission ri*t in ech tradin* interval is to %e determined s<

The #!h cpcity of tht transmission ri*t in tht tradin*

interval s notified under cluse 3.13.2 multiplied %y the e3

ante ener*y settlement price for the receivin* node in tht

tradin* intervalC minus the sum of

% The #!h cpcity of tht transmission ri*t in tht tradin*

interval s notified under cluse 3.13.2 multiplied %y the e3

ante ener*y settlement price t the sendin* node in tht tradin*

intervalC plus

c The #!h cpcity of tht transmission ri*t in tht tradin*

interval s notified under cluse 3.13.2 multiplied %y the

'reed loss differentil for tht transmission ri*t s notified

under cluse 3.13.2 multiplied %y the e3 ante ener*y settlement

price t the receivin* node in tht tradin* interval.

0'0'2 Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans

3.13.1>.1 )or ech 'illin* period the Market Operator shll

determine the settlement amount for ech %radin*

Participant s the sum of the ''re'te trdin' mounts

for the tradin* intervals in tht 'illin* period determined

in ccordnce with cluse 3.13.1>.2< plus (As amended *-

DOE DC N$' 993::99 daed N$5em*e! 993)

Any mount py%le %y the Market Operator to tht

%radin* Participant in respect of tht %illin' period

nd not ccounted for in cluse 3.13.1>.2

includin' pyment for ny ancillary services












purchsed on %ehlf of the System operator less

the sum of

% Any market /ees which tht %radin* Participant is

re4uired to py in respect of tht %illin' period s

determined in ccordnce with cluse 2.10C plus

c Any other mounts py%le %y tht %radin*

Participant to the Market Operator in respect of

tht %illin' period includin' ny ancillary services

cost recovery car*es.

3.13.1>.2 The ''re'te trdin' mount for %radin* Participant for

tradin* interval e4uls the sum of<

The e3+ante ener*y tradin* mounts for ech

market tradin* node for which tht Trdin'

Participant is responsi%le clculted in ccordnce

with cluse 3.13. which will typiclly %e positi$e

for $eneration Company nd ne'ti$e for

Customer)C plus

% The e3+post ener*y tradin* amounts for ech

market tradin* node for which tht %radin*

Participant is responsi%le clculted in ccordnce

with cluse 3.13.9 which my %e positi$e or

ne'ti$e for ny %radin* ParticipantC plus

c The reserve tradin* amounts for ech reserve

re*ion into which tht %radin* Participant

contri%utes reserve clculted in ccordnce

with cluse 3.13.10 which will lwys %e positi$e

for %oth $eneration Companies nd Customers)C

plus

d The transmission ri*t tradin* amounts for ech

transmission ri*t held %y the WESM Participant

clculted in ccordnce with cluse3.13.13 which

will typiclly %e positi$e for ny %radin*

ParticipantCless the sum of

e The reserve cost recovery car*e determined fortht %radin* Participant with respect to ny reserve




nd support the mret for )inncil Trnsmission

Ri'hts su%ect to the ppro$l of the PE# ordC

nd

(As amended *- DOE DC N$' 992:9;:99< daed ;

+,- 992)

% "hll %e clerly ccounted for nd ten into

ccount when settin' the llow%le chr'es under

ny re'ultory instruments pplyin' to the Market

Operator nd the System operator .

3.13.16.3 The #ret *pertor shll< (Amended *- DOE DC N$'

992:9;:99< daed ; +,- 992)

Pu%lish re'ulr summry reports on the mount of

ny net settlement surplus %ein' 'enertedC

% within one yer from spot mret commencement

dte nd e$ery yer therefter pu%lish re$iew of

the underlyin' fctors 'i$in' rise to ny net

settlement surplus nd ttempt to identify ny

%indin' constrints which my h$e cused or

contri%uted to such net settlement surplusC

c &etermine in consulttion with Trdin' Prticipnts

nd +etwor "er$ice Pro$iders nd su%ect to

ppro$l %y the PE# ord whether the net

settlement surplus 'enerted %y ny prticulr set

of constrints is of such m'nitude s to ustify

de$elopment of re'ime similr to tht

implemented in the !E"# Rules with respect to

trnsmission line rentls nd trnsmission ri'hts.

d &e$elop procedures on the possi%le uses of net

settlement surplus su%ect to ppro$l %y the PE#

ordC nd

e (ontinuously re$iew the procedures on possi%le uses

of net settlement surplus to the eBtent the #ret

*pertor considers it to %e reson%ly necessry to

promote !E"# o%ecti$es. Any chn'es mde on












the procedures shll h$e ppro$l from the PE#

ord.

0'0';Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 1#h B#,ae!a, C$n!a"s

(Added as pe! DOE DC N$' 992:9;:99< daed ; +,- 992)

[email protected] )or ech %illin' period the #ret *pertor shll

determine the settlement mount for ech trdin'

prticipnt with %ilterl contrct s the sum of the

''re'te trdin' mounts for the trdin' inter$ls in tht

%illin' period determined in ccordnce with cluse

[email protected] plus (As amended *- DOE DC N$' 90:90:

9993 daed Ma!"h 90)

Any mount py%le %y the #ret *pertor to tht

Trdin' Prticipnt in respect of tht %illin' period

nd not ccounted for in cluse [email protected] includin'

pyment for ny ncillry ser$ices purchsed on

%ehlf of the "ystem opertor less the sum of

% Any mret fees which tht Trdin' Prticipnt is

re4uired to py in respect of tht %illin' period s

determined in ccordnce with cluse 2.10C plus

c Any other mounts py%le %y tht Trdin'

Prticipnt to the #ret *pertor in respect of

tht %illin' period includin' ny ncillry ser$ices

reco$ery chr'es.

[email protected] The ''re'te trdin' mount for Trdin' Prticipnt for

trdin' inter$l e4uls the sum of<

The eB:nte ener'y trdin' mounts for ech

mret trdin' node for which the Trdin'

Prticipnts is responsi%le clculted in ccordnce

with cluses 3.13.@nd 3.13. which will typiclly

%e positi$e for 7enertion (ompny nd ne'ti$e

for (ustomerC plus

% The eB:post ener'y trdin' mounts for ech

mret trdin' node for which the Trdin'

Prticipnt is responsi%le clculted in ccordncewith cluses 3.13.@ nd 3.13.9 which will typiclly




%e positi$e or ne'ti$e for ny Trdin' PrticipntC

plus

c The line rentl trdin' mount correspondin' to the

4untity of %ilterl contrct of tht Trdin'

Prticipnt clculted in ccordnce with cluse

3.13.12C plus

d The reser$e trdin' mounts for ech reser$e

re'ion into which tht Trdin' Prticipnt

contri%utes reser$e clculted in ccordnce with

cluse 3.13.10 which will lwys %e positi$e for

%oth 7enertion (ompnies nd (ustomersC plus

e The trnsmission ri'ht trdin' mounts for ech

trnsmission ri'ht held %y the !E"# Prticipnt

clculted in ccordnce with cluse 3.13.13 which

will lwys %e positi$e for %oth 7enertion

(ompnies nd (ustomers plus

f The reser$e cost reco$ery chr'e determined for

tht Trdin' Prticipnt with respect to ny reser$e

cost reco$ery 5one within which it hs ny fcility

connected clculted in ccordnce with the

procedures de$eloped under cluse 3.3.> which

will %e positi$e for ny Trdin' PrticipntC nd

' Any other ncillry ser$ice cost reco$ery chr'es

determined for tht Trdin' Prticipnt in

ccordnce with the procedures de$eloped under

cluse 3.3.>.

0'2 SETTLEMENT PROCESS

0'2'Se,emens Mana%emen *- Ma!.e Ope!a$!

The Market Operator shll determine the settlement mount py%le %y

WESM mem'er s nd fcilitte the %illin' nd settlement of trnsctions

%etween itself nd the WESM mem'er s under the WESM Rules in

ccordnce with this cluse 3.1>.




0'2'E,e"!$n#" F+nds T!ans/e!

3.1>.2.1 The Market Operator shll ensure tht n E)T fcility is

pro$ided nd mde $il%le for ll WESM mem'er s for the

purposes of fcilittin' settlements nd the collection nd

pyment of ll market /ees.

3.1>.2.2 =nless otherwise uthori5ed %y the Market Operator ll

WESM Mem'ers shll use the E)T fcility pro$ided %y

the Market Operator under cluse 3.1>.2.1 for the

settlement of trnsctions nd the pyment of market

/ees.

0'2'0Pa-men $/ Se,emen Am$+n

3.1>.3.1 !here the settlement mount for WESM mem'er is

ne'ti$e mount the !E"# mem'er shll py tht mount

to Market Operators ccordnce with cluse

3.1>.6.3.1>.3.2 !here the settlement mount for

WESM mem'er is positi$e mount Market Operator shll

py tht mount to te WESM Mem'er in ccordnce with

cluse 3.1>.@.

0'2'2P!e,#m#na!- Saemens

3.1>.>.1 !ithin @ days fter the end of ech %illin' period the

Market Operator shll 'i$e ech WESM mem'er who hs

en''ed in market transactions in tht %illin' period

preliminry sttement which sets out the market

transactions of tht WESM mem'er in tht %illin' period

nd the settlement mount py%le %y or to tht WESM

mem'er . (As amended *- DOE DC N$' 90:90:9993

daed Ma!"h 90)

If the se$enth dy flls on &on+Workin* ay the issunce

of the preliminry sttements shll %e mde durin' the

neBt immedite Workin* ay . (Added pe! DOE DC N$'

90:90:9993 daed Ma!"h 90)

3.1>.>.2 The sttements issued under this cluse 3.1>.> shll

include supportin' dt for ll mounts py%le sufficient

to en%le ech WESM mem'er to udit the clcultion of the mount py%le %y or to tht WESM mem'er .




3.1>.>.3 If the WESM mem'er reson%ly %elie$es there ws n

error or discrepncy in the preliminry sttement 'i$en to

the !E"# #em%er %y the Market Operator under this

cluse 3.1>.> the WESM mem'er shll notify the Market

Operator s soon s prctic%le of tht error or

discrepncy nd the Market Operator s hll re$iew the

preliminry sttement.

3.1>.>.> If the Market Operator considers tht preliminry

sttement contins n error or discrepncy fter re$iewin'

the preliminry sttement s notified %y WESM mem'er

pursunt to cluse 3.1>.>.3 or s independently identified

%y the Market Operator the Market Operator shll ensure

tht correction of ny error or discrepncy is reflected in

the rele$nt finl sttements pro$ided tht corrections

re4uirin' the input of n eBternl prty re recei$ed %y

the Market Operator t lest two Workin* ays %efore the

dedline of the issunce of the finl sttements. If the

Market Operator recei$es notice of n error discrepncy

or correction of n erlier identified error fter their

rele$nt dedlines cluse 3.1>.9.2 shll pply. (As


90)

0'2'3F#na, Saemens

3.1>.?.1 +o lter thn ei'hteen days fter the end of ech %illin'

period the Market Operator shll 'i$e to ech WESM

mem'er who hs en''ed in market transactions in tht

%illin' period finl sttement sttin' the mounts

py%le %y the WESM mem'er to the Market Operator or

py%le %y the Market Operator to the WESM mem'er in

respect of the rele$nt %illin' period. (As amended *-

DOE DC N$' 90:90:9993 daed Ma!"h 90)

If the ei'hteenth dy flls on &on+Workin* ay! theissunce of the finl sttements shll %e mde durin' the




neBt immedite Workin* ay . (Added pe! DOE DC N$'

90:90:9993 daed Ma!"h 90)

3.1>.?.2 The sttements issued under this cluse 3.1>.? shll

include supportin' dt for ll mounts py%le which

shll %e sufficient to en%le ech WESM mem'er to udit

the clcultion of the mount py%le %y or to tht WESM

mem'er .

0'2'8Pa-men *- T!ad#n% Pa!#"#pans

+o lter thn 3.00 pm on the twenty:fifth dy of the clendr month

followin' the %illin' period ech WESM mem'er shll py to the MarketOperator in clered funds the settlement amount if ny stted to %e

py%le to the Market Operator %y tht WESM mem'er in tht WESM

mem'er ;s finl sttement whether or not the WESM mem'er disputes

or continues to dispute the mount py%le. (As amended *- DOE DC

N$' 90:90:9993 daed Ma!"h 90)

If the twenty:fifth dy of the clendr month followin' the %illin' period

flls on +on+Workin* ay the pyment due dte shll %e mo$ed to the

neBt immedite Workin* ay . (Added pe! DOE DC N$' 90:90:9993

daed Ma!"h 90)

0'2';Pa-men $ T!ad#n% Pa!#"#pans

*n the followin' Workin* ay fter the Market Operator is to %e pid

under cluse 3.1>.6 nd in ccordnce with the schedule set in the%illin' nd settlements timet%le the Market Operator shll py to ech

WESM mem'er in clered funds the settlement mount if ny stted to

%e py%le in tht WESM mem'er ;s finl sttement. (As amended *-

DOE DC N$' 993::99 daed N$5em*e! 90 and /+!he!

amended *- DOE DC N$' 90:90:9993 daed Ma!"h 90)

The mBimum totl pyment which the Market Operator is re4uired to

py in respect of ny %illin' period is e4ul to the ''re'te of:




a) the totl pyments ctully recei$ed from WESM Mem'ers in

ccordnce with cluse 3.1>.6C plus

') the totl mount tht the Market Operator is %le to ctully

drw from the prudentil security of the defultin' WESM

Mem'ers in ccordnce with cluse 3.1? if one or more WESM

Mem'er is in defultC plus

c) other sources of funds which the PE# ord my ppro$e to %e

the pid to the !E"# #em%ers if the totl mount drwn from

the prudentil security deposit of the defultin' !E"# #em%ers

is insufficient to co$er the defulted mounts.

If it %ecomes necessry for the Market Operator to drw upon the

prudentil security of defultin' WESM Mem'er in ccordnce with

cluse 3.1? the correspondin' pyments to the WESM Mem'ers entitled

to %e pid shll %e mde only fter the Market Operator is ctully %le

to drw on the prudentil security %ut not lter thn the dte specified

in the %illin' nd settlement time t%le.

If the totl pyments ctully recei$ed or drwn from the prudentil

security %y the Market Operator for prticulr %illin' period is

insufficient to py for the totl mounts py%le to the WESM Mem'ers

the totl pyments recei$ed nd drwn shll %e distri%uted nd pid to

the rele$nt WESM Mem'ers in proportion to the mount py%le to

them for tht %illin' period.

The shortfll shll %e pid upon collection from the defultin' WESM

Mem'er %ut not lter thn the dte specified in the %illin' nd

settlement time t%le.

(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993

and /+!he! amended *- DOE DC N$' 998::990 daed 9=

N$5em*e! 998)

0'2'<D#sp+es

3.1>..1 If dispute rises %etween WESM mem'er nd the

Market Operator concernin' either<


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The settlement mount stted in ny preliminry

sttement pro$ided under cluse 3.1>.> to %e

py%le %y or to itC or

% The supportin' dt they shll ech use reson%le

ende$ors to resol$e the dispute within fifteen

'usiness days fter the end of the rele$nt %illin'

period.

3.1>..2 &isputes in respect of /inal statements or the supportin'

dt pro$ided with them in ccordnce with cluse 3.1>.?

shll %e rised within twel$e months of the rele$nt %illin'

period.

3.1>..3 &isputes rised under this cluse 3.1>. shll %e resol$ed

%y 'reement or pursunt to the dispute resolution

procedures set out in cluse @.3.

0'2'= Se,emen Re5#s#$ns

3.1>.9.1 If n mount in /inal statement issued under cluse 3.1>.?<

,s %een the su%ect of dispute nd the dispute

hs %een resol$edC or

% !s su%ect of pendin' cse %efore (ourt of

competent urisdiction nd tht sid (ourt hs

lredy rendered finl nd eBecutory &ecisionC

If ny of the %o$ementioned cses hs cused different

mount py%le s set out in the /inal statement the

Market Operator shll issue to ech WESM Mem'er

ffected n dustment to the /inal statement for the

rele$nt %illin' period settin' out<

The mount py%le %y the WESM Mem'er to the

Market Operator or the mount py%le %y the

Market Operator to the WESM Mem'er nd

% Interest clculted on dily %sis t the interest

rte for the /inal statement to which the

dustment reltes to the pyment dte pplic%le

to the re$ised sttement issued under this cluse

3.1>.9.1.




The Market Operator shll issue the dustment to the

/inal statement not lter thn twel$e 12 clendr

months fter the resolution of the dispute or receipt of the

rele$nt finl nd eBecutory *rder unless prties to %e

%illed 'rees tht the issunce of the prticulr !E"# %ill

dustment shll %e t lter time.

(As amended *- DOE DC N$' 9::99 daed

De"em*e! 9)

3.1>.9.2 If the Market Operator %ecomes wre of n error in n

mount stted in /inal statement issued under cluse

3.1>.? nd in the Market Operator ;s reson%le opinion

WESM Mem'er would %e mterilly ffected if re$ision

to the /inal statement ws not mde to correct the error

then the Market Operator shll issue the Re$ised

"ttement not lter thn siB 6 clendr months from

receipt of the Market Operator of written notice of error

from the prticipnt or from the Market Operator4s

disco$ery of the sme.


De"em*e! 9)

0'2'9 Pa-men $/ Ad4+smens

3.1>.10.1 The Market Operator shll specify the time nd dte on

which pyment of n dustment under re$ised

sttement issued under cluse 3.1>.9 is due which dte

shll %e not less thn ten 'usiness days nd not more thn

fifteen 'usiness days fter the issue of tht re$ised

sttement.

3.1>.10.2 y no lter thn the time nd dte specified %y te Market

Operator pursunt to cluse 3.1>.10.1 ech WESM

mem'er shll py to the Market Operator in clered funds

the net mount if nystted to %e py%le %y tht

WESM mem'er in the re$ised sttement issued to it under

cluse 3.1>.9.

3.1>.10.3 *n the followin' Workin* ay on which the MarketOperator is to %e pid under cluse 3.1>.10.2 the Market




Operator shll py to ech !E"# #em%er in clered funds

the net mount if ny stted to %e py%le to tht WESM

mem'er in the re$ised sttement issued to it under cluse

3.1>.9. (As amended *- DOE DC N$' 90:90:9993 daed

Ma!"h 90)

0'2' Pa-men De/a+, P!$"ed+!e

3.1>.11.1 Ech of the followin' e$ents is defult e$ent in reltion

to WESM mem'er .

The WESM mem'er does not py ny money due for

pyment %y it under the WESM Rules %y the

ppointed time on the due dteC

% The Market Operator does not recei$e pyment in

full of ny mount climed %y the Market Operator

under ny credit support in respect of WESM

mem'er within ninety minutes fter the due time

for pyment of tht climC

c The WESM mem'er fils to pro$ide credit support

re4uired to %e supplied under the WESM Rules %y

the ppointed time on the due dteC

d It is or %ecomes unlwful for the WESM mem'er to

comply with ny of its o%li'tions under the WESM

Rules or ny other o%li'tion owed to the Market

Operator or it is climed to %e so %y the WESM

mem'er

e It is or %ecomes unlwful for ny Credit Support

Provider in reltion to the WESM mem'er to comply

with ny of its o%li'tions under the WESM Rules or

ny other o%li'tion owed to the Market Operator

or it is climed to %e so %y tht Credit Support

Provider!

f An uthori5tion from 'o$ernment uthority

necessry to en%le the !E"# mem%er or (redit

"upport Pro$ider which hs pro$ided credit support

for tht !E"# mem%er to crry on their respecti$e




principl %usinesses or cti$ities ceses to h$e full

force nd effectC

' The !E"# mem%er or (redit "upport Pro$ider

which hs pro$ided credit support for tht !E"#

mem%er ceses or is liely to cese to crry on its

%usiness or su%stntil prt of its %usinessC

h The !E"# mem%er or (redit "upport Pro$ider

which hs pro$ided rrn'ement includin'

scheme of rrn'ement composition or

compromise with or ssi'nment for the %enefit of

ll or ny clss of their respecti$e creditors or

mem%ers or mortorium in$ol$in' ny of themC

i The !E"# mem%er or (redit "upport Pro$ider


mem%er sttes tht it is un%le to py from its own

money its de%ts s nd when they fll due for

pymentC

A recei$er or recei$er nd mn'er is ppointed in

respect of ny property of the !E"# mem'er or

Credit Support Provider which hs pro$ided credit

support for tht WESM mem'er

An dministrtor pro$isionl li4uidtor li4uidtor

trustee in %nruptcy or person h$in' similr or

nlo'ous function is ppointed in respect of the

!E"# mem%er or (redit "upport Pro$ider which

hs pro$ided credit support for tht !E"# mem%er

or ny ction is ten to ppoint ny such personC

I An ppliction or order is mde for the windin' up

or dissolution or resolution is pssed or ny steps

re ten to pss resolution for the windin' up or

dissolution of the !E"# mem%er or (redit "upport

Pro$ider which hs pro$ided credit support for tht

!E"# mem%er

m The !E"# mem%er or (redit "upport Pro$iderwhich hs pro$ided credit support for tht !E"#




mem%er dies or is dissol$ed unless such notice of

dissolution is dischr'edC nd

n The !E"# mem%er or (redit "upport Pro$ider


mem%er is ten to %e insol$ent or un%le to py its

de%ts under ny pplic%le le'isltion.

3.1>.11.2 !here defult e$ent hs occurred in reltion to WESM

mem'er the Market Operator my<

Issue defult notice which specifies<

1 The nture of the lle'ed defultC nd

2 If the Market Operator considers tht the

defult is cp%le of remedy tht the WESM

mem'er shll remedy the defult within 2>

hours of the issue of the defult noticeC

ndDor

% Immeditely issue suspension notice in

ccordnce with cluse 3.1?. if the Market

Operator considers tht the defult is not cp%le

of remedy nd tht filure to issue suspension

notice would %e liely to eBpose other WESM

mem'er s to 'reter ris nd to notify in writin'

the pproprite re'ultory nd dministrti$e

%odies concerned of such suspensionC ndDor (As

amended *- DOE DC N$' 92:90:999< daed 8

Ma!"h 92)

c If it hs not lredy done so me clim upon ny

credit support held in respect of the WESM mem'er

for such mount s the Market Operator determines

represents the mount of ny money ctully or

contin'ently owin' %y the WESM mem'er to the

Market Operator pursunt to the WESM Rules.

3.1>.11.3If<

The Market Operator considers tht defult e$ent

is not cp%le of remedyC or










% A defult e$ent is not remedied within 2> hours of

the issue of the defult notice or ny lter dedline

'reed to in writin' %y the Market Operator or

c The Market Operator recei$es notice from the

defultin' WESM mem'er tht it is not liely to

remedy the defult specified in the defult notice

then the Market Operator my issue suspension

notice in ccordnce with cluse 3.1?.@ under

which the Market Operator notifies the defultin'

WESM mem'er tht it is prohi%ited from

prticiptin' in the spot market.

0'2' Ine!es $n O5e!d+e Am$+ns

If %radin* Participant fils to py ny mount due nd py%le %y it

under the WESM Rules such o$erdue mount shll %er the defult

interest rte reconed from the first dy such mount is due nd

py%le up to nd includin' the dte on which pyment is mde with

interest computed %sed on 360:dy yer.

0'3 PRUDENTIAL REUIREMENTS0'3' P+!p$se

The purpose of the prudential re1uirements is to ensure the effecti$e

opertion of the spot market %y pro$idin' le$el of comfort tht WESM

mem'er s will meet their o%li'tions to me pyments s re4uired

under the WESM Rules.

0'3' P!$5#s#$n $/ Se"+!#-

3.1?.2.1 "u%ect to cluse 3.1?.2.2 WESM mem'er wishin' to

prticipte in Market %ransactions shll pro$ide

nd mintin security complyin' with the re4uirements

of (luse 3.1?.2. (As amended *- DOE DC N$' 92:90:

999< daed 8 Ma!"h 92)

3.1?.2.2 The Market Operator my eBempt WESM mem'er s from

the re4uirement to pro$ide security under cluse

3.1?.2.1if<








the Market Operator %elie$es it is liely tht the

mount py%le %y the Market Operator to tht

WESM Mem'er under the !E"# Rules will

consistently eBceed the mount py%le to the

Market Operator %y tht WESM mem'er under the

WESM Rules in respect of tht periodC or

% the Market Operator %elie$es it is unliely tht the

WESM mem'er will %e re4uired to py ny mounts

to the Market Operator C or

c &eleted (As pe! DOE DC N$' 992:9;:99< daed ;

+,- 992)

3.1?.2.3 The Market Operator my $ry or cncel the eBemption

'i$en pursunt to cluse 3.1?.2.2 %o$e in reference to

(luse 3.1?.2.1 t ny time %y 'i$in' written notice of

the $rition or cncelltion of the eBemption to the

WESM mem'er . (As amended *- DOE DC N$' 92:90:

999< daed 8 Ma!"h 92)

3.1?.2.> A WESM mem'er who is eBempt from pro$idin' security

deposit under (luse 3.1?.2.2 shll %e re4uired to py the

totl ne'ti$e settlement mount due if ny within three

3 #orkin* days %efore the due dte s pro$ided under

(luse 3.1>.6. (Added pe! DOE DC N$' 92:90:999<

daed 8 Ma!"h 92)

3.1?.2.? )ilure to comply with (luse 3.1?.2.> shll %e 'round

for the cncelltion of eBemption nd sid filure shll

cuse the WESM mem'er to %e ssessed nd %e re4uired to

put up Prudential Re1uirements. =pon written re4uest of

the WESM mem'er the Market Operator my lift the

cncelltion of eBemption from Prudential Re1uirements

pro$ided tht the !E"# mem%er<

hs settled ll its outstndin' o%li'tions includin'

interest if nyC nd

% hs no record of defult in pyment or non:complincewith the Prudential Re1uirements for the immeditely
















precedin' siB 6 %illin' periods from the cncelltion of

eBemption. (Added pe! DOE DC N$' 92:90:999< daed

8 Ma!"h 92)

0'3'0 F$!m $/ Se"+!#-

(As amended *- DOE DC N$' 92:90:999< daed 8 Ma!"h 92)

The security pro$ided %y the WESM Mem'er under this cluse 3.1? shll

%e in ccordnce with the followin' hierrchy of preferred forms of

security <

(shC or

% Another immedite irre$oc%le nd unconditionl commitment in

form nd from %n or other institution ccept%le to the

Market Operator C or

c "urety %ond issued %y surety or insurnce compny duly

ccredited %y the *ffice of the Insurnce (ommissioner of the

PhilippinesC or

d "uch other forms of security or 'urntee s my %e

ccept%le nd llowed %y the Market Operator.(Added as pe!DOE DC N$'998:9;:999 daed 9 +,- 998)

Pro$ided howe$er tht in ll cses where the security deposit pro$ided is

other thn in the form of (sh the followin' conditions shll pply in

determinin' whether or not the Market Operator will llow such lternti$e

form of security<

*nly in the e$ent tht the #ret *pertor determined tht the

mount of defult cn %e immeditely drwn on due dte from

such form of securityC nd

% SaidWESM member proposing to post a security deposit in a form

other than Cash has no record of default in payment or non-

compliance with the Prudential Requirements for the immediately

preceding six (6) billing periods.










0'3'2 Am$+n $/ Se"+!#-

=sin' $il%le historicl dt the Market Operator shll determine the

initil Prudential Re1uirements of new WESM mem'er correspondin'

to the portion of its demnd tht is not co$ered %y 'ilateral contracts

or ten percent 10H of its totl demnd if fully co$ered %y 'ilateral

contracts multiplied %y the $er'e ctul mret price of the pre$ious

twel$e 12 %illin' periods. (Added pe! DOE DC N$' 92:90:999<

daed 8 Ma!"h 92)

3.1?.>.1 "u%ect to cluse 3.1?.2.2 prior to the end of ech

6inancial 9ear! the Market Operator shll determine nd

pro$ide written confirmtion to ech WESM mem'er of its

Ma3imum E3posure to the Market Operator in respect of

%illin' period in the followin' 6inancial 9ear. The mount

of security to %e pro$ided %y ech WESM mem'er pursunt

to (luse 3.1?.2.1 nd 3.1?.2.2 shll %e e4ui$lent to the

Ma3imum E3posure.

=pon the re4uest of WESM mem'er the Market

Operator my consider replcement month in the

computtion of Ma3imum E3posure within the 26th #rch

to 2?th "eptem%er %illin' periods h$in' the sme num%er

of clendr dys if<

There is dis'reement %etween the Market Operator

nd the WESM Participant on the 6inal Statement durin'

the months co$ered in the computtion of the Ma3imum

E3posureC or

% There is positi$e settlement mount in ny %illin'

period in the computtion of the Ma3imum E3posure.

If there is chn'e in the 'ilateral contract of WESM

mem'er the Ma3imum E3posure shll %e computed %sed

on the settlement mounts estimted %y the MarketOperator usin' the $er'e ctul mret price %sed on








the %illin' period of 26th #rch to 2?th "eptem%er. In no

cse shll the Ma3imum E3posure %e less thn ten percent

10H of the totl demnd. A$er'e ctul mret price

shll refer to the rtio of the totl spot market pyment of

WESM mem'er which my include Spot Market ener'y

nd reser$e trnsctions nd 5ine Rental mount for

contrcted 4untities to the totl metered 4untities net

of 'ilateral contract 4untities for ech %illin' month.

If WESM mem'er tht is eBempt from the Prudential

Re1uirements under (luse 3.1?.2.2 %ecomes net %uyer

nd fils to py its o%li'tions the prudentil security tht

shll %e imposed pursunt to (luse 3.1?.2.? shll %e

computed %sed on<

the $er'e of the pre$ious siB 6 ne'ti$e settlement

mounts for the pst twel$e 12 consecuti$e %illin'

periodsC or

% in the %sence of the pre$ious siB 6 ne'ti$e

settlement mounts the $er'e of the $il%le ne'ti$e

settlement mounts for the pst twel$e 12 consecuti$e

%illin' periods.

If the Market Operator determines tht the security

pro$ided %y WESM mem'er is %elow the ssessed

Ma3imum E3posure the Market Operator shll re4uire

such WESM mem'er to increse its security deposit up to

the le$el of its Ma3imum E3posure within three 3

#orkin* days fter the receipt of the written notifiction

of the nnul ssessment. If the WESM mem'er fils to

comply within the prescri%ed dte or ny lter dte 'reed

to in writin' with the Market Operator then the Market

Operator shll issue defult notice under (luse

3.1>.11.1.c.




(As amended *- DOE DC N$' 92:90:999< daed 8

Ma!"h 92)

3.1?.>.2 The #ret *pertor my re$iew its method of

determintion of WESM mem'er-s Ma3imum E3posure t

ny time pro$ided tht ny chn'e to WESM mem'er-s

Ma3imum E3posure will pply no erlier thn thirty 30

dys followin' receipt of written notifiction from the

Market Operator %y WESM mem'er of tht chn'e or

such erlier period 'reed to in writin' %y the PEM Board .


Ma!"h 92)

3.1?.>.3 Ech !E"# mem%er shll ensure tht t ll times the

''re'te undrwn nd unclimed mounts of current nd

$lid security held %y the Market Operator in respect of

tht WESM mem'er is not less thn tht WESM mem'er-s

Ma3imum E3posure.

3.1?.>.> To diminish the possi%ility of incurrin' Mar*in Call under

(luse 3.1?.10 WESM mem'er my pro$ide security or

securities in ccordnce with cluse 3.1?.3 for n

''re'te mount tht eBceeds its Ma3imum E3posure.

If sid dditionl security or securities is not in the form of

(sh the WESM mem'er shll secure the prior written

determintion nd ppro$l of the Market Operator.

0'3'3 Rep,a"emen Se"+!#-

3.1?.?.1 If<

An eBistin' security pro$ided %y WESM mem'er

under this cluse 3.1? is due to eBpire or terminteC

nd

% After tht security eBpires or termintes the

mBimum mount which the Market Operator will%e entitled to %e pid in ''re'te under ny












reminin' security or securities pro$ided %y the

WESM mem'er under this cluse 3.1? will %e less

thn WESM mem'er ;s Ma3imum E3posure!

then the WESM mem'er shll deli$er to the Market

Operator t lest ten 10 #orkin* days prior to

the time t which tht eBistin' security is due to

eBpire or terminte replcement security which<

1 Is of sufficient $lue to en%le the WESM

mem'er to comply with cluse 3.1?.>.3C

2 (omplies with the re4uirements of this

cluse 3.1?C nd

3 "hll te effect no lter thn the dte on

which the eBistin' security is due to eBpire

or terminte.

(As amended *- DOE DC N$' 92:90:999< daed

8 Ma!"h 92)

3.1?.?.2 If<

A WESM mem'er fils to comply with cluse

3.1?.?.1C nd

% Tht WESM mem'er does not remedy tht filure

within three 3 #orkin* days fter %ein' notified

%y the Market Operator of the filure

then the WESM mem'er is deemed to %e in defult nd the

Market Operator shll 'i$e the WESM mem'er

Suspension &otice in ccordnce with cluse 3.1?.@.


Ma!"h 92)

0'3'8 D!a1d$1n $/ Se"+!#-

3.1?.6.1 The Market *pertor shll notify WESM mem%er in

writin' once the Market Operator eBercises its ri'hts in

ccordnce with (luse 3.1? under security pro$ided %y


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sid WESM mem'er . (As amended *- DOE DC N$' 92:

90:999< daed 8 Ma!"h 92)

3.1?.6.2 If s result of the Market Operator eBercisin' its ri'hts

under security pro$ided %y WESM mem'er under this

(luse 3.1? the mBimum mount which the Market

Operator is entitled to %e pid under the security or

securities pro$ided %y the WESM mem'er under this (luse

3.1? is less thn the WESM mem'er ;s Ma3imum E3posure

then within three 3 #orkin* days from receipt of the

written notice under (luse 3.1?.6.1 the WESM mem'er

shll pro$ide n dditionl security to ensure tht t ll

times it complies with the re4uirements of this (luse

3.1?. (As amended *- DOE DC N$' 92:90:999< daed

8 Ma!"h 92)

3.1?.6.3 If WESM mem'er fils to comply with cluse 3.1?.6.2

within the time period referred to in tht cluse then the

Market Operator shll 'i$e the WESM mem'er suspension

notice in ccordnce with cluse 3.1?.@.

0'3'; Re/+nd $/ Se"+!#-

=pon written re4uest from the WESM mem'er the Market Operator

shll refund the prudentil security under the followin' conditions<

if the Market Operator hs lifted the cncelltion of eBemption fter

the WESM mem'er complied with its o%li'tions under (luse

3.1?.2.?C or

% if the security deposit of WESM mem'er consistently eBceeds the

Ma3imum E3posure in pre$ious siB 6 consecuti$e %illin' period.

The refund of security deposit shll %e llowed %y the Market Operator

fter the ssessment of the mount of refund pro$ided tht the WESM

mem'er hs no record of defult nd non:complince with the

Prudential Re1uirements in pre$ious siB 6 consecuti$e %illin' periods.

(As pe! DOE DC N$' 92:90:999< daed 8 Ma!"h 92)















0'3'< S+spens#$n $/ a WESM mem*e!

3.1?..1 As soon s prctic%le fter Suspension &otice is issued

%y the Market Operator under the WESM Rules the

Market Operator shll<

Pu'lis the suspension noticeC nd


N$5em*e! 993)

% Plce notice in newspper of 'enerl circultion

tht the WESM mem'er hs %een suspended.

c +otify in writin' the ERC the OE nd &ational

Electri/ication Administration of such suspension.

(As pe! DOE DC N$' 92:90:999< daed 8 Ma!"h

92)

3.1?..2 The Market Operator shll re$oe Suspension &otice if<

In the cse of defult e$ent the defult e$ent is

remediedC or

% In the cse of filure to mintin complince with

prudentil re4uirements under this cluse 3.1?

tht filure hs %een remediedC nd

c There re no other circumstnces in eBistence

which would entitle the Market Operator to issue

Suspension &otice.

The Market Operator shll not re$oe Suspension &otice

more thn one month fter it ws issued. (As amended *-

DOE DC N$' 92:90:999< daed 8 Ma!"h 92)

3.1?..3 If suspension notice is re$oed the #ret *pertor

shll pu%lici5e tht fct in the sme mnner in which the

suspension notice ws pu%lici5ed in ccordnce with cluse

[email protected].

3.1?..> )rom the time tht the Market Operator issues written

Suspension &otice to WESM mem'er under the WESM

Rules the WESM mem'er is ineli'i%le to prticipte in thespot market until such time s the Market Operator
















notifies the WESM mem'er nd ll other rele$nt WESM

mem'ers! in writin' tht the Suspension &otice hs %een

re$oed. (As amended *- DOE DC N$' 92:90:999<

daed 8 Ma!"h 92)

3.1?..? A WESM mem'er shll comply with suspension notice

issued to it under the WESM Rules.

3.1?..6 If<

The Market Operator hs issued Suspension

&otice to WESM mem'er due to defult e$ent

nd in the #ret *pertor;s reson%le

determintion the WESM mem'er is incp%le of

rectifyin' the defult e$ent for ny resonC or

% The Market Operator hs issued suspension notice

to WESM mem'er due to filure %y the WESM

mem'er to continue to stisfy the Prudential

Re1uirements nd in the Market Operator-s

reson%le determintion the WESM mem'er is

incp%le of rectifyin' tht filure for ny reson

The Market Operator! in either cse shll dere'ister tht

WESM mem'er s soon s prctic%le nd promptly

pu'lis notice of tht fct.


N$5em*e! 993 and /+!he! amended *- DOE DC N$'

92:90:999< daed 8 Ma!"h 92)

0'3'= T!ad#n% L#m#s

3.1?.9.1 "u%ect to cluse 3.1?..2 the #ret *pertor shll set

trdin' limit for ech !E"# mem%er who prticiptes in

mret trnsctions.

3.1?.9.2 If under cluse 3.1?.2.2 the #ret *pertor hs

eBempted Trdin' Prticipnt from the re4uirement to

pro$ide security under cluse 3.1?.2.1 for period then

the #ret *pertor shll not set trdin' limit for tht
















!E"# #em%er for the period durin' which tht eBemption

pplies.

3.1?.9.3 The trdin' limit for WESM mem'er! t ny time shll

%e e4ul to the totl $lue of the security includin'

0nterest Rate! if ny pro$ided %y the WESM mem'er to the

Market Operator under (luses 3.1?.3 to c.

(As amended *- DOE DC N$'998:9;:999 daed 9

+,- 998 and /+!he! amended *- DOE DC N$' 92:

90:999< daed 8 Ma!"h 92)

0'3'9 M$n#$!#n%

3.1?.10.1 The #ret *pertor shll re$iew on monthly %sis its

ctul eBposure to ech WESM mem'er in respect of

pre$ious %illin' periods in ccordnce with the WESM

Rules. (As amended *- DOE DC N$' 92:90:999< daed

8 Ma!"h 92)

3.1?.10.2 In clcultin' the Market Operator-s ctul eBposure to

WESM mem'er under (luse 3.1?.9.1 the Market

Operator shll te into ccount<

*utstndin' settlement mounts for the WESM mem%er

in respect of pre$ious %illin' periodsC nd

% "ettlement mounts for the WESM mem%er for the

%illin' period tht will %e due on the period in which the

re$iew occurs %sed on the $il%le settlement

sttement.


Ma!"h 92)

3.1?.10.3 If the Market Operator clcultes tht its ctul eBposure

eBceeds the WESM mem'er ;s trdin' limit then te

Market Operator shll notify the WESM mem'er in writin'.


Ma!"h 92)

3.1?.10.> If the #ret *pertor clcultes tht its ctul eBposure

to !E"# #em%er eBceeds the !E"# #em%er;s trdin'

























limit then the #ret *pertor shll notify the !E"#

#em%er ccordin'ly.

0'3' Ma!%#n Ca,,s

3.1?.11.1 If the Market Operator clcultes tht its eBposure to

WESM mem'er eBceeds the WESM mem'er ;s tradin* limit

then the Market Operator shll me #r'in (ll on tht

WESM mem'er %y notice to the WESM mem'er in writin'

#r'in (ll +otice. (As amended *- DOE DC N$' 92:

90:999< daed 8 Ma!"h 92)

3.1?.11.2 If the Market Operator mes Mar*in Call on WESM

mem'er under cluse 3.1?.11.1 then the WESM mem'er

must stisfy the Mar*in Call %y pro$idin' the mount of

shortfll within three 3 #orkin* days from receipt of the

#r'in (ll +otice %y either<

Pro$idin' to the Market Operator n dditionl

security or securities complyin' with the

re4uirements of this (luse 3.1? or

% Prepyin' the mount py%le or which will %ecome

py%le.

(As amended *- DOE DC N$' 92:90:999< daed 8 Ma!"h

92)

3.1?.11.3 If WESM mem%er fils to stisfy mr'in cll %y

pro$idin' dditionl security or min' prepyment

under cluse 3.1?.11.2 then the Market Operator shll

issue the WESM mem'er Suspension &otice in writin'.


Ma!"h 92)

In the e$ent of suspension ll the settlement sttements

issued to such WESM mem'er includin' n estimte of the

ccrued trdin' mounts shll %ecome immeditely duend demnd%le.

















Ma!"h 92 and /+he! amended *- DOE DC N$' 92:

90:999< daed 8 Ma!"h 92)

0'3' C$n/#den#a,#-

All informtion pro$ided %y WESM mem'er in reltion to its finncil

circumstnces shll %e treted %y the Market Operator s confidentil

informtion in ccordnce with cluse ?.2.











CHAPTER 2

METERIN6


This chpter > sets out the<

*%li'tions of %radin* ParticipantsC

% Re4uirements in reltion to the instlltion use nd security of meters

c #nner in which meterin* data is to %e used nd mn'edC

d #ethod of dere'istrtion of Meterin* Services ProvidersC

e #nner in which meterin* data'ases re to %e mn'edC nd

f #nner in which new technolo'ies re to %e dopted.

2' APPLICATION OF CHAPTER

This chpter > pplies to<

A Customer in respect of ny market tradin* node tht is ssi'ned to it

throu'h which it purchses electricity from the spot market (As

amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)

% A $eneration Company in respect of market tradin* node tht is

ssi'ned to it throu'h which it sells electricity to the spot mret nd


c #eterin' "er$ices Pro$iders in respect of meterin' instlltions for which

they re responsi%leC nd

d All WESM mem'er s s fr s pplic%le.

2'0 OBLI6ATIONS OF TRADIN6 PARTICIPANTS

2'0' O*,#%a#$ns

>.3.1.1 efore %radin* Participant who is irect WESM Mem'er

will %e permitted %y the Market Operator to prticipte in

the spot market in respect of market tradin* node the

%radin* Participant shll ensure tht< (As amended *-

DOE DC N$' 998:9:999 daed 9 an+a!- 998)


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Ech of its ssi'ned market tradin* node hs

meterin' instlltionC (As amended *- DOE DC N$'

998:9:999 daed 9 an+a!- 998)

% Ech meterin* installation hs %een instlled in

ccordnce with this chpter> nd in ccordnce

with the $rid Code and istri'ution CodeC nd

c Ech meterin* installation is re'istered with the

Market Operator .

>.3.1.2 The Market Operator my refuse to permit %radin*

Participant who is irect WESM mem'er to prticipte in

the spot market in respect of ny ssi'ned market tradin*

node if the meterin* installation ssocited with tht

market tradin* node does not comply with the pro$isions

of this chpter > the $rid Code nd istri'ution Code.(As


an+a!- 998)

>.3.1.3 The Market Operator shll promptly d$ise the ERC of ny

refusl mde under cluse >.3.1.2.

2'0' E,e"#$n $/ a Mee!#n% Se!5#"es P!$5#de! *- a T!ad#n% Pa!#"#pan

>.3.2.1 A %radin* Participant who is &irect WESM mem'er shll<

Elect Meterin* Services Provider who will h$e

responsi%ility for rrn'in' for the pro$ision

instlltion testin' cli%rtion nd mintennce of

ech meterin' instlltion for which tht %radin*

Participant is finncilly responsi%leC

% Enter into n 'reement with the Meterin* Services

Provider s which includes the terms nd

conditions for the pro$ision instlltion nd

mintennce of the rele$nt meterin* installation

%y the Meterin* Services Provider! nd

c Pro$ide the Market Operator with the rele$nt

detils of the meterin* installation in ccordnce

with AppendiB 2 within 10 'usiness days of

enterin' into n 'reement with the Meterin*Services Provider(s) under cluse >.3.>%.














2'0'0 Mee!#n% Se!5#"es P!$5#de! O*,#%a#$ns

The Meterin* Services Pro$ider shll<

Ensure tht its meterin* installations re pro$ided instlled

tested cli%rted nd mintined in ccordnce with this

chpter > the $rid Code and istri'ution Code nd ll pplic%le

lws rules nd re'ultionsC

% Ensure tht the ccurcy of ech of its meterin* installations

complies with the re4uirements of chpter > nd the $rid Code

and istri'ution CodeC nd

c If the Market Operator re4uires rrn'e for the pro$ision of

remote monitorin' fcilities to lert the Market Operator of ny

filure of ny components of the meterin* installation which

mi'ht ffect the ccurcy of the meterin* data deri$ed

from tht meterin* installation.

2'2 RE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS

>.>.1 *ther thn the %RA&SCO Meterin* Services Provider is person or n

entity who<

Is uthori5ed %y the ERC to pro$ide meterin* servicesC% Is re'istered with the Market Operator s Meterin* Services

Provider nd

c Is re4uired to h$e the 4ulifictions nd dhere to ny

performnce stndrds specified %y the Market Operator in

reltion to Meterin* Services Providers.

>.>.2 A $eneration Company or Customer which is in$ol$ed in the trdin' of

ener*y shll not %e re'istered s Meterin* Services Provider for ny

market tradin* node ssi'ned to it. (As amended *- DOE DC N$' 993:

:99 daed N$5em*e! 993 and /+!he! amended *- DOE DC N$'

998:9:999 daed 9 an+a!- 998)

>.>.3 If %radin* Participant is Customer nd lso &et#ork Service

Provided! the %radin* Participant my re'ister s Meterin* Services

Provider only for connection points tht it does not own.

Pro$ided howe$er tht if such %radin* Participant is lso Meterin*

Services Provider nd there is only one Meterin* Services Provider










re'istered with the Market Operator in the Trnsmission -e$el then it

shll %e llowed to pro$ide meterin* services on n interim %sis for

market tradin* node ssi'ned to it or connection point tht it owns

until nother Meterin* Services Provider %ecomes uthori5ed %y the

ERC and is re'istered with the Market Operator upon which the

meterin* services shll %e trnsferred to nother Meterin* Services

Provider followin' the pplic%le procedures. (As amended +nde! DOE

C#!"+,a! N$' DC 90:9;:998 daed 8 +,- 90)

2'3 METERIN6 INSTALLATION

2'3' Mee!#n% Insa,,a#$n C$mp$nens

A meterin* installation shll<

e ccurte in ccordnce with this chpter > nd the $rid Code

and istri'ution Code

% ,$e fcilities to en%le meterin* data to %e trnsmitted from

the meterin* installation to the meterin* data'ase nd %e

cp%le of communiction with the meterin* data'aseC This

re4uirement my %e relBed durin' the opertion of the interim

WESM.c (ontin de$ice which hs $isi%le or n e4ui$lently ccessi%le

disply of meterin* data or which llows the meterin* data to %e

ccessed nd red t the sme time %y port%le computer or

other e4uipment of type or specifiction reson%ly ccept%le

to ll entities who re entitled to h$e ccess to tht meterin*

data

d e secureC

e ,$e electronic dt recordin' fcilities such tht ll meterin'

dt cn %e mesured nd recorded in tradin* intervalsC

f e cp%le of seprtely re'isterin' nd recordin' flows in ech

direction where %i:directionl active ener*y flows occurC

' ,$e meter h$in' n internl or eBternl data lo**er cp%le

of storin' the meterin* data for t lest 60 dys nd h$e %c

up stor'e fcility en%lin' meterin* data to %e stored for >

hours in the e$ent of eBternl power filureC nd




h ,$e n cti$e ener*y meter nd if re4uired in ccordnce with

the $rid Code and istri'ution Code recti$e ener*y meter

h$in' %oth n internl or eBternl data lo**er.

2'3' L$"a#$n $/ Mee!#n% P$#n

>.?.2.1 The Meterin* Services Provider shll ensure tht the

meterin* point is locted s close s prctic%le to the

market tradin* node. (As amended *- DOE DC N$' 998:

9:999 daed 9 an+a!- 998)

>.?.2.2 The %radin* Participant the &et#ork Service Provider nd

the Market Operator shll use their %est ende$ors to

'ree to dust the meterin* data to llow for physicl

losses %etween the ctul meterin* point nd the

rele$nt market tradin* node. (As amended *- DOE DC

N$' 998:9:999 daed 9 an+a!-998)'

>.?.2.3 The meterin* installation shll %e ccessi%le to the

Meterin* Service Provider t ll times.

2'3'0 Mee! A""+!a"-

The clss of meterin* installation nd the ccurcy re4uirements for

meterin' point re to %e determined %y the PEM Board in ccordnce

with the $rid Code and istri'ution Code nd ccordin' to the nnul

mount of active ener*y tht psses throu'h the meterin* point of tht

%radin* Participant.

2'3'2 Use $/ Mee!s

>.?.>.1 The re'istered meterin' instlltion shll %e used %y the

#ret *pertor s the primry source of meterin' dt

for %illin' purposes.

>.?.>.2 +otwithstndin' ny other pro$ision of this cluse >.> the

Market Operator will not %e li%le to ny person or entity

in respect of ny inccurcies discrepncies or other

defects in meterin* data includin' meterin* data

which is stored in the meterin* data'ase pro$ided tht

these do not rise from the 'ross ne'li'ence or willful

misconduct of the Market Operator .












>.?.>.3 !here meterin* installation is used for purposes in

ddition to the pro$ision of meterin* data to the Market

Operator then<

Tht use shll not %e inconsistent with or cuse

ny WESM mem'er to %rech ny re4uirements of

the WESM Rules the $rid Code nd istri'ution

Code or ny pplic%le lwsC nd

% The Meterin* Services Provider shll coordinte

with the entities tht use the meterin* installation

for such other purposes to ensure tht cluse

>.>.>.3 is complied with.

2'3'3 Se"+!#- $/ Mee!#n% E>+#pmen

>.?.?.1 The #eterin' "er$ices Pro$ider shll use reson%le

ende$ors to protect the meterin' instlltion from

unuthori5ed interference %oth intentionl nd

ind$ertent %y pro$idin' secure housin' for meterin'

e4uipment or otherwise ensurin' tht security t the

meterin' point is de4ute to protect 'inst such

interference.

>.?.?.2 If !E"# mem%er hs reson to %elie$e tht the meterin'

instlltion hs %een interfered with or the ccurcy

thereof mi'ht h$e %een ffected %y ny tmperin' he

shll inform the Meterin* Services Provider who shll test

the meterin* installation to ensure tht the meterin*

e1uipment opertes within the pplic%le ccurcy

prmeters descri%ed in the $rid Code and istri'ution

Code.

>.?.?.3 If e$idence of tmperin' with meterin* installation

is found or disco$ered %y WESM mem'er ll ffected

Prticipnts shll %e notified of tht fct %y tht WESM

mem'er nd the PEM Board s soon s reson%ly possi%le.

>.?.?.> The PEM Auditor in consulttion with the Market

Operator nd Meterin* Services Providers shll re$iew

the security rrn'ements nd re4uirement of meterin* installations nnully.




2'3'8 Se"+!#- $/ Mee!#n% Daa He,d #n a Mee!#n% Insa,,a#$n

The Meterin* Services Provider shll ensure tht meterin* data held in

meterin* installation is protected from locl or remote electronic ccess

or mnipultion of dt %y the instlltion of suit%le security electronic

ccess controls includin' if re4uired %y the Market Operator

psswords.

2'3'; Pe!/$!man"e $/ Mee!#n% Insa,,a#$ns

>[email protected] The Meterin* Services Provider shll use ll reson%le

ende$ors to ensure tht meterin* data is cp%le of %ein'

trnsmitted to the meterin* data'ase from its meterin*

installations<

!ithin the pplic%le ccurcy prmeters

descri%ed in the $rid Code and istri'ution Code

nd

% !ithin the time re4uired for settlement t le$el

of $il%ility of t lest 99H per nnum or s

otherwise 'reed %etween the Market Operator nd

the Meterin* Services Provider.

>[email protected] If meterin' instlltion mlfunction or defect occurs the

#eterin' "er$ices Pro$ider shll ensure tht repirs shll

%e mde s soon s prctic%le nd in ny e$ent within

two %usiness dys unless eBtended %y the #ret

*pertor.

>[email protected] A !E"# Participant who %ecomes wre of meterin*

installation mlfunction or other defect shll d$ise the

Market Operator within 3 hours from the time it ws

detected.

2'3'< Mee! T#me

>.?..1 The Meterin* Services Provider shll ensure tht ll

meterin* installation nd data lo**er clocs re

referenced to Philippines "tndrd Time.

>.?..2 The meterin* data'ase time shll %e set within n

ccurcy of plus or minus fi$e ? seconds of Philippines

"tndrd Time.




2'8 METERIN6 DATA

2'8' Chan%es $ Mee!#n% Daa

The Meterin* Services Provider shll not me cuse or llow ny

ltertion to the ori'inl stored dt in meterin* installation. It shll

lso use reson%le ende$ors to ensure tht no other person or entity

does the sme.

2'8' Daa T!ans/e! and C$,,e"#$n

>.6.2.1 The #"P tht is contrcted %y the #TP for prticulr

meterin' point shll retrie$e the meterin' dt from the

meter nd trnsmit the dt to the #ret *pertor for

%illin' nd settlement.

,owe$er the #"P shll not me cuse or llow ny

ltertion to the ori'inl stored meter dt s retrie$ed in

the meterin' instlltion.

At its option the #ret *pertor my lso directly

retrie$e the meter dt.

The #"P with (ertificte of Authority from ER( nd

re'istered with #* must %e cp%le of sendin' meter dt

in the re4uired formt of #*. An #"P must h$e its own#eter &t Retrie$l "ystem nd compti%le with the #*

#eter &t (ollection "ystem.

(As amended *- DOE DC N$'998:9;:999 daed 9 +,-

998)

>.6.2.2 Ech WESM mem'er shll use its reson%le ende$ors to

ensure tht the Market Operator is 'i$en ccess to or is

pro$ided with the meterin* data.

>.6.2.3 The Meterin* Services Provider shll t its own cost

ensure tht meterin* data deri$ed from meterin*

installation for which it is responsi%le shows the time nd

dte t which it is recorded nd is cp%le of %ein'

trnsmitted from the meterin* installation to the

meterin* data'ase in ccordnce with the Market

Operator ;s reson%le re4uirements.

>.6.2.> The Market Operator my use dt collection systems totrnsfer meterin* data to the meterin* data'ases.








>.6.2.? !ithout preudice to the 'enerlity of this cluse >.? the

Meterin* Services Provider shll ensure tht ech of

its meterin* installations h$e de4ute communiction

fcility tht will en%le the Market Operator to o%tin

remote ccess to the meterin* data from the meterin*

data'ase. This re4uirement howe$er my %e relBed

durin' the initil opertion of the !E"#.

>.6.2.6 In cses where the meterin* installation hs no cp%ility

to trnsmit the meterin* data electroniclly to the

meterin* data'ase! the WESM Participant must use its

reson%le ende$ors to ensure tht the Market Operator

is 'i$en lternti$e ccess to or is pro$ided with the

meterin* data in ccordnce with the procedures

est%lished under the $rid Code and istri'ution Code.

2'; DERE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS

2';' Se,emen 1#h #na""+!ae mee!#n% #n/$!ma#$n

The Market Operator shll de$elop detiled process for settlin'

ccounts retrocti$ely to correct incorrect meterin' informtion ndmarket settlements tht results from meter tmperin' meter %ypss

meter filure dt loss unethicl conduct eBcessi$e inccurcy or

other cuses.

2';' San"#$ns /$! #na""+!ae mee!#n% #n/$!ma#$n

The Market Operator shll de$elop process of penlties nd snctions

for Meter Services Providers nd WESM Participants whose meter dt is

incorrect %eyond reson%le limits for whte$er reson.

2';'0 N$#"e /$,,$1#n% mae!#a, *!ea"h $/ WESM R+,es

If Meterin* Services Provider mterilly %reches the WESM Rules the

Market Operator shll send to tht Meterin* Services Provider notice in

writin' settin' out the nture of the %rech nd if the Meterin* Services

Provider remins in %rech for period of more thn @ 'usiness days

fter notice from the Market Operator the Market Operator my

dere'ister the Meterin* Services Provider.

2';'2 De!e%#s!a#$n /$,,$1#n% +neh#"a, a"




The Market Operator my dere'ister Meterin* Services Provider for

unethicl ct or %eh$ior.

2';'3 E//e" $/ de!e%#s!a#$n /$! +neh#"a, a"

If the Market Operator dere'isters Meterin* Services Provider in

ccordnce with cluse 2.6.2 nd su%ect to cluse 2.@ the Market

Operator shll<

+otify the ERC nd the WESM Participants of this ction nd %sis

for decisionC nd

% Pu'lis detils of the dere'istrtion.

2'< DATABASES

2'<' Insa,,a#$n Daa*ases

>..1.1 The Meterin* Services Provider shll crete mintin

nd dminister n installation data'ase in reltion to ll

its meterin* installations.

>..1.2 The Meterin* Services Provider shll ensure tht ech

ffected Prticipnt nd the Market Operator is 'i$en

ccess to the informtion in its installation data'ase t ll

reson%le times nd<

In the cse of dt siBteen months old or lesswithin se$en 'usiness days of recei$in' written

notice from the person or entity seein' ccessC

nd

% In the cse of dt more thn siBteen months old

within thirty dys of recei$in' written notice from

the person or entity seein' ccess.

>..1.3 The Meterin* Services Provider shll ensure tht its

installation data'ase contins the informtion specified in

AppendiB 2.

2'<' Mee!#n% Daa*ase

>..2.1 The #ret *pertor shll crete mintin nd dminister

meterin' dt%se which shll include meterin'

re'ister continin' informtion for ech meterin'

instlltion re'istered with the #ret *pertor.




>..2.2 The meterin' dt%se shll include meterin' dt ener'y

dt dt su%stituted in ccordnce with this cluse >.@

nd ll clcultions mde for settlement purposes.

>..2.3 &t shll %e stored in the meterin* data'ase7

)or 16 months in ccessi%le formtC nd

% )or 10 yers in rchi$e.

2'<'0 R#%hs $/ A""ess $ Mee!#n% Daa

The only entities entitled to h$e either direct or remote ccess to

meterin* data on red only %sis from the meterin* data'ase or the

meterin* re*ister in reltion to meterin* point re<

Ech %radin* Participant whose settlement mounts re

determined %y reference to 4untities of ener*y flowin' throu'h

tht meterin* point!

% The Meterin* Services Provider who is responsi%le for the

meterin* installation t tht meterin* point!

c A &et#ork Service Provider ssocited with the meterin* point!

d The Market Operator nd its uthori5ed 'entsC nd

e Any (ustomer with respect to the meterin* data in reltion to the

meterin* point re'istered to itC (As amended *- DOE DC N$'

998:9:999 daed 9 an+a!- 998)

f The Market Surveillance CommitteeC nd

' The ERC.

2'<'2 C$n/#den#a,#-

"u%ect to cluse >[email protected] meterin' dt is confidentil nd ech WESM

mem'er nd Meterin* Services Provider shll ensure tht such dt is

treted s confidentil informtion in ccordnce with the WESM Rules.

2'<'3 Pa-men /$! A""ess $ Mee!#n% Daa

All reson%le costs includin' without limittion telecommunictions

chr'es incurred %y the Meterin* Services Provider in pro$idin' ccess

to meterin* data t meterin* installation or %y the Market Operator in

pro$idin' ccess to informtion in the meterin* data'ase shll %e pid

%y the WESM mem'er whom the meterin* data or informtion wspro$ided.


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2'= DATA 7ALIDATION AND SUBSTITUTION

The Market Operator is responsi%le for the $lidtion nd su%stitution of

meterin* data fter %ein' furnished settlement:redy meterin* data %y theMeterin* Services Provider nd shll de$elop dt $lidtion procedures in

consulttion with WESM Participants nd in ccordnce with AppendiB (1.2 d.

2'9 PROCESSES AND RE7IEW

The Market Operator shll underte periodic re$iew of the pro$isions of this

chpter > in ccordnce with the pu%lic consulttion procedures includin' %ut

not limited to<

+ew technolo'ies nd the impct of new technolo'ies on nd in reltion

to technicl stndrds for meterin' in the WESM Rules the $rid Code


% (ontest%ility in the pro$ision nd types of meters usedC nd

c !hether the pro$isions of this chpter > h$e the effect of elimintin'

the use of lternti$e types of meters.

2' TRANSITORY PRO7ISION&urin' the initil opertion of the !E"# the TRA+"(* shll pro$ide the

ser$ices re4uired of the #eterin' "er$ices Pro$ider %ut this shll not eBclude

other entities from doin' the sme pro$ided they meet the re4uirements

pro$ided herein.




CHAPTER 3

MARKET INFORMATION AND CONFIDENTIALITY


This chpter ? sets out<

Procedures for delin' with spot market informtion includin'<

1 "ystems nd procedures for the pro$ision nd stor'e of spot

market informtionC nd

2 A re4uirement to udit spot market informtionC nd

% Procedures for delin' with confidentil informtion includin'1 EBceptions to the 'enerl rule tht confidentil informtion shll

not %e disclosedC nd

2 (onditions of disclosure of confidentil informtion.

3' MARKET INFORMATION AND CONFIDENTIALITY

3'' P!$5#s#$n $/ In/$!ma#$n

?.2.1.1 The pro$isions of this chpter re lwys su%ect to the

ri'hts nd o%li'tions of the Market Operator nd WESM

mem'er s in reltion to confidentil informtion s set out

in cluse ?.3.

?.2.1.2 In ddition to ny specific o%li'tion of the Market

Operator under the WESM Rules to pro$ide informtion

the Market Operator .

"hll upon written re4uest me $il%le to

%radin* Participants ny informtion concernin' the

opertion of the spot market pro$ided tht

sid informtion is not confidentil or

commercilly:sensiti$eC nd

% #y chr'e fee reflectin' the cost of pro$idin'

such informtion.

?.2.1.3 The Market Operator shll me pu%lic nd electroniclly

post informtion on the market price s well s resons for

ny si'nificnt mo$ement thereon nd pro$ide hrd copies




of such informtionl mterils upon re4uest nd

reim%ursement of cost to produce the sme.

?.2.1.> The Market Operator shll me $il%le to the ERC ll

pertinent informtion which would help the ltter

effecti$ely perform its re'ultory nd o$ersi'ht functions.

?.2.1.? The Market Operator shll me $il%le to the OE ll

pertinent informtion which would help the ltter

effecti$ely perform its ener'y policy:min' function.

3'' S-sems and P!$"ed+!es

?.2.2.1 Informtion re4uired co$ered or otherwise contemplted

%y the !E"# Rules such s those pro$ided %y !E"#

mem%ers to the #ret *pertor or those pro$ided %y the

#ret *pertor to !E"# mem%ers shll %e pro$ided %y

mens of n electronic communiction system unless the

!E"# Rules specify otherwise or chn'ed or modified %y

the #ret *pertor.

?.2.2.2 Informtion pro$ided %y mens of n electronic

communiction system shll %e in ccordnce with the

templtes included in the sid electronic communication

system unless otherwise chn'ed or modified %y the

Market Operator s ppro$ed %y the PEM Board .

?.2.2.3 As fr s prctic%le the #ret *pertor shll

incorporte %indin' cnowled'ement receipt in its

electronic communiction system which would est%lish

the time the pertinent informtion is ctully recei$ed.

?.2.2.> Informtion is deemed to %e pu%lished %y the #ret

*pertor when the informtion is posted on the mret

informtion we%site.

?.2.2.? The #ret *pertor shll mintin nd pu%lish

electronic communiction procedures under which<

Informtion shll %e pro$ided %y WESM mem'er s to

the Market Operator

% Informtion shll %e pro$ided %y the Market

Operator to WESM mem'er sC nd




c Informtion pu'lised on the mret in/ormation

#e'site my %e ccessed %y %radin* Participants.

?.2.2.6 )rom time to time the Market Operator in consulttion

with WESM Mem'ers! my re$iew nd lter<

The re4uirements for electronic communiction

systemsC nd

% Electronic communication procedures.

?.2.2.@ The Market Operator shll pro$ide the ERC nd OE ll

necessry fcilities to effecti$ely monitor the opertion of

the WESM on rel:time nd for re$iew purposes.

3''0 Pa!#"#pan Daa

The Market Operator shll mintin periodiclly updte s it considers

reson%ly necessry from time to time nd pu%lish<

A list of ll WESM mem'er s identifyin' those of them tht re

tradin* Participants

% A list of ll mem%ership pplicnts to the WESM nd identifyin'

those pplyin' to %ecome %radin* Participant

c A list of ll former WESM mem'er s nd the time tht ech cesed

to %e WESM mem'er sC nd

d A list of ll suspended %radin* Participants nd the time t which

ech ws suspended.

3''2 P,ann#n% and Des#%n Daa

?.2.>.1 (onsistent with the $rid Code the System operator is to

mintin re'ister of dt pro$ided %y %radin* Participants

and &et#ork Service Providers for plnnin' nd desi'n

purposes.

?.2.>.2 The System operator shll pro$ide on re'ulr %sis copy

of the re'ister of dt prepred under cluse ?.2.>.1 to the

Market Operator in form specified %y the Market

Operator .

3''3 In/$!ma#$n Re"$!ds

The Market Operator shll retin ll informtion pro$ided to it under the

WESM Rules for t lest ten yers in form it deems pproprite for

reson%le ccess s my %e re4uired %y the ERC or the OE.3''8 Ma!.e A+d#




?.2.6.1 The PE# Auditor shll rrn'e for spot mret udit to %e

performed once ech 4urter or such other period s

determined %y the PE# Auditor.(As amended *- DOE DC

N$' 99:90:9992 daed Ma!"h 99)

?.2.6.2 The spot market udit shll co$er nd re$iew complince %y

the Market Operator with its procedures nd the

effecti$eness nd ppropriteness of systems utili5ed in the

opertion of the spot market! includin' %ut not limited to<

Llid udit certifictes for the current re$isions of

ll numeric softwreC

% The clcultions nd lloctions performed %y the

meterin* nd settlements systemsC

c illin' nd informtion systemsC

d The schedulin' nd dispatc processesC

e The processes for softwre mn'ement includin'

the Informtion nd (ommunictions Technolo'y

(hn'e #n'ement Process or NI(#PO instituted %y

the Market Operator su%ect to the conduct of

re'ulr udits s my %e determined under the

WESM RulesC

f The Market Operator ;s complince with the WESM

Rules.

The sid mret udit shll lso co$er ll new softwre nd

modifictions to the eBistin' softwre implemented throu'h

the I(#P.


De"em*e! 9)

?.2.6.3 The PE# Auditor my en''e su%ect to the PEM Board

ppro$l the ser$ices of 4ulified third prty Auditor s

outlined in cluse 1.?.2 nd cluse ?.2.6.2. The selection of

third prty Auditors shll %e ppro$ed %y the PEM Board .

(Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h

99)

?.2.6.> The PE# Auditor shll prepre report on the results of thespot market udit. The sid report shll %e mde $il%le




to the OE the ERC the PEM Board nd WESM mem'ers.


Ma!"h 99)

3'0 CONFIDENTIALITY

3'0' C$n/#den#a,#-

?.3.1.1 Ech WESM mem'er nd the Market Operator shll eep

confidentil ny confidentil informtion which comes

into their control possession or otherwise %e wre of.

?.3.1.2 A WESM mem'er nd the Market Operator <

"hll not disclose confidentil informtion to ny

person or entity eBcept s permitted %y the WESM

RulesC

% "hll only use or reproduce confidentil informtion

for the purpose for which it ws disclosed or for

purpose contemplted %y the WESM RulesC nd

c "hll not permit unuthori5ed persons to h$e

ccess to confidentil informtion.

?.3.1.3 Ech WESM mem'er nd the Market Operator shll use llreson%le ende$ors to<

Pre$ent unuthori5ed ccess to confidentil

informtion which is in its possession or controlC

nd

% Ensure tht ny person to whom it discloses

confidentil informtion o%ser$es the pro$isions of

this cluse ?.3 in reltion to tht informtion.

3'0' E"ep#$ns

"u%ect to cluse ?.3.3.1 this cluse ?.3 does not pre$ent<

The disclosure of informtion confidentil or otherwise %etween

nyone or more of the followin'<

1 The ERC nd the OE

2 The System operator

3 The Market Surveillance CommitteeC nd




> Any other person or entity includin' %ut not limited to

committee ppointed %y the PEM Board in ccordnce with

the WESM Rules for the purposes of<

? The opertion security nd plnnin' of the power system

in ccordnce with the 7rid (odeC

6 (omplyin' with ny other instrument includin'

ny contrctul instrument or understndin' 'o$ernin'

the reltionship %etween the prties detiled in cluses

?.3.2 1 to ?C nd

@ Any other circumstnce which in the reson%le opinion

of the #ret *pertor is necessry to ssist the #ret

*pertor in est%lishin' nd opertin' the !E"# in

ccordnce with the WESM o%ecti$esC

% The disclosure use or reproduction of informtion if the rele$nt

informtion is t tht time 'enerlly nd pu%licly $il%le other

thn s result of %rech of this cluse ?.3C

c The disclosure of informtion %y WESM mem'er or the Market

Operator or %y persons to whom the WESM mem'er or the

#ret *pertor s the cse my %e hs disclosed tht

informtion to such s<

1 An employee or officer of the !E"# mem%er or

2 A le'l or other professionl d$iser uditor or other

consultnt of the !E"# mem%er or the #ret *pertors

the cse my %eC or

3 "imilr persons or entities

for purposes of complyin' with the WESM Rules or d$isin' the

WESM mem'er or the Market Operator in reltion to the WESM

Rules pro$ed tht the person recei$in' the informtion

undertes in writin' not to further disclose tht informtion to

ny other personC

d The disclosure use or reproduction of informtion with the

written consent of the person or persons who pro$ided the

rele$nt informtion under the WESM RulesC

e The disclosure use or reproduction of informtion to the eBtentre4uired %y lw or %y lwful re4uirement of<




1 The ERC nd the OE C or

2 Any 'o$ernment uthority h$in' urisdiction o$er WESM

mem'er or the Market Operator

f The disclosure use or reproduction of informtion if necessry in

ccordnce with the lwful re4uirements of or in connection with

le'l proceedin's r%itrtion eBpert determintion or

other dispute resolution mechnisms reltin' to the WESM Rules

or for the purpose of d$isin' person in reltion thereto

pro$ided tht those to whom the informtion is disclosed

undertes in writin' not to further disclose tht informtion to

ny other personC

' The disclosure of informtion to the eBtent re4uired to protect

the sfety of personnel or e4uipmentC

h The disclosure use or reproduction of informtion %y or on %ehlf

of WESM mem'er or the Market Operator to the eBtent

reson%ly re4uired in connection with the WESM mem'er ;s or

the Market Operator ;s finncin' rrn'ements s the cse my

%e in$estment in WESM mem'er or disposl of WESM

mem'er ;s ssets pro$ided tht those to whom the informtion is

disclosed si'ns written undertin' not to further disclose tht

informtion to ny other personC

i The disclosure of informtion to the ERC nd OE nd ny other

'o$ernment uthority h$in' urisdiction o$er WESM mem'er

pursunt to the WESM Rules or otherwise.

The disclosure of i settlement mounts unpid %y the end of the

month nd ii the specific WESM mem'er tht filed to py the

settlement mounts. (As amended *- DOE C#!"+,a! N$' DC 90:

9;:99< daed 8 +,- 90)

3'0'0 C$nd##$ns

?.3.3.1 Any entity who recei$es informtion disclosed in

ccordnce with cluse ?.3.2 <

"hll not disclose the informtion to ny person

eBcept s pro$ided %y the !E"# RulesC nd




% "hll only use the informtion for the purposes for

which it ws disclosed under cluse ?.3.2.

?.3.3.2 In the cse of disclosure under cluse ?.3.2c ?.3.2f

or ?.3.2i the WESM mem'er or the Market Operator s

the cse my %e who wishes to me the disclosure shll

prior to min' the disclosure inform the proposed

recipient of the informtion tht it is confidentil

informtion nd shll te pproprite precutions

includin' t the $ery lest securin' written undertin'

from the recipient tht such recipient will eep the

informtion confidentil to ensure tht the recipient eeps

the informtion confidentil in ccordnce with the

pro$isions of this cluse ?.3 nd does not use the

informtion for ny purpose other thn tht permitted

under cluse ?.3.2.

3'0'2 Indemn#- $ he Ma!.e Ope!a$!

Ech WESM mem'er indemnifies the Market Operator 'inst ny clim

ction dm'e loss li%ility eBpense or out'oin' which the Market

Operator pys suffers incurs or is li%le for in respect of ny %rech of

this cluse ?.3 %y tht WESM mem'er or ny officer 'ent or employee

of tht WESM mem'er . Pro$ided tht no !E"# Prticipnt shll %e li%le

for ny of the fore'oin' to the eBtent they rise from the 'ross

ne'li'ence or willful misconduct of the Market Operator .

3'0'3 S+!5#5a,

+otwithstndin' ny other pro$ision of the WESM Rules person shll

continue to comply with this cluse ?.3 fter tht person hs cesed to

%e WESM mem'er .

3'0'8 The Ma!.e Ope!a$! In/$!ma#$n

The Market Operator shll de$elop nd to the eBtent prctic%le

implement procedure ppro$ed %y the PEM Board to<

Protect informtion which it c4uires pursunt to the Market

Operator functions from use or ccess which is contrry to the

pro$isions of the WESM RulesC

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1>0



% Protect informtion which is commercilly sensiti$e from use or

ccess %y mem%ers of the PEM Board who re officers directors

or employees of WESM mem'er C nd

c &isseminte such informtion in ccordnce with its ri'hts

powers nd o%li'tions in mnner which promotes ese of entry

into nd the orderly opertion of the spot market.

3'0'; T#mea*,e

The #ret *pertor shll de$elop the timet%le for the pu%liction of

mret informtion in ccordnce with (hpter ? of the !E"# Rules.

(Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)




CHAPTER 8

INTER7ENTION AND MARKET SUSPENSION


This chpter 6 sets out<

The procedures which shll %e est%lished %y the Market Operator

System operator nd WESM Participants to ensure tht they re %le to

te ll necessry ctions in n emer*ency

% The procedures to %e followed %y the Market Operator System operator

nd WESM Participants in n emer*ency

c The procedures which re to te effect in the e$ent of thret to

system security (As amended *- DOE DC N$' 90::99< daed 8

De"em*e! 90)

d The circumstnces nd mnner in which the ERC throu'h the Market

Operator my intervene or suspend the spot marketC nd (As amended

*- DOE DC N$' 90::99< daed 8 De"em*e! 90)

e The responsi%ilities of the Market Operator to de$elop simulte nd

implement 'usiness continuity pln nd disaster recovery procedures.

(Added pe! DOE DC N$' 90::99< daed 8 De"em*e! 90)

8' O7ER7IEW

8'' P!epa!a#$n and Resp$nses

6.2.1.1 The System operator is responsi%le for 'i$in' directions

nd coordintin' the ctions which re to %e ten %y

WESM Participants and Market Operator whenthere is market suspension or intervention.

6.2.1.2 !here 0ntervention is wrrnted when the 'rid or

portion of the 'rid is in eBtreme stte condition s

est%lished in the $rid Code risin' from<

An emer*ency

% A thret to system security or

c An e$ent of /orce ma2eure.


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O"$*e! 92)

6.2.1.3 Inter$ention my %e wrrnted if there re interruptions in

the opertions of mret softwre used %y the Market

Operator to support $rious processes in the !E"# durin'

the simultion of the 'usiness continuity pln nd

disaster recovery procedures of the Market Operator

de$eloped under (luse 6...1. (Added pe! DOE DC N$'

90::99< daed 8 De"em*e! 90)

6.2.1.> &urin' intervention or market suspension the System

Operator nd Market Operator shll coordinte their

ctions to restore norml opertion of the po#er system

nd the mret.(Ren+m*e!ed pe! DOE DC N$' 90::

99< daed 8 De"em*e! 90)

6.2.1.? WESM Participants cnowled'e tht<

The opertion of the po#er system in$ol$es riss to

pu%lic sfety nd property nd therefore ccepts

tht the pro$isions of this chpter 6 re pproprite

nd reson%leC

% Their %usiness interests will %e su%ordinte to the

need for the Market Operator nd System operator

to implement emer*ency procedures in ccordnce

with the $rid Code nd cluse 6.3.2 nd to me

declrtions nd issue emer*ency directions under

cluse 6.? in n emer*ency

c "u%ect to cluse 6.2.1.1 the System operator shll

issue emer*ency directions in ccordnce with the

$rid Code! nd shll report such ction to the

Market Operator .

(Ren+m*e!ed pe! DOE DC N$' 90::99< daed 8

De"em*e! 90)

8'' Eemp#$n /!$m L#a*#,#- d+e $ Ma!.e S+spens#$n and Ine!5en#$n
















6.2.2.1 In the e$ents of market suspension or intervention ny

ction of the ERC! Market Operator! System operator or

WESM Participant in complince with the emer'ency

procedures pro$ided in this (hpter shll not constitute

%rech of the WESM Rules eBcept in the cse of n ct

committed in %d fith or 'ross ne'li'ence shll not %e

li%le for ny loss incurred %y WESM Participant s

result of ny ction ten %y the System operator or

Market Operator under this chpter 6.

6.2.2.2 +othin' in this chpter 6 is to %e ten to limit the %ility

of the System operator or Market Operator to te ny

ction or procedure under this chpter 6 which either the

System operator or Market Operator considers in their

%solute discretion to %e necessry to protect the pu%lic

or property.

8''0 Adm#n#se!ed P!#"e Cap

&urin' market suspension nd intervention the Market Operator shll

impose n administered price to %e used s %sis for settlements.

Prior to the spot market commencement date the Market Operator

shll de$elop nd pu%lish the methodolo'y for determinin' the

administered price to %e used durin' market suspension or intervention

of the spot market. "id administered price is to %e endorsed %y the

PEM Board for ERC approval. (As amended *- DOE DC N$' 993::99

daed N$5em*e! 993)'

8'0 EMER6ENCIES

8'0' Eme!%en"-

6.3.1.1 The System operator shll declre n emer*ency when it

determines the eBistence of sitution which hs n

d$erse mteril effect on electricity supply or which

poses s si'nificnt thret to system security. The

System operator shll report n emer*ency to the ERC.

6.3.1.2 An emer*ency my include<

A si'nificnt electricity supply cpcity shortfll

%ein' condition where there is insufficient

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1>>







*eneration or supply options $il%le to securely

supply in one or more re'ions of the po#er system

liely to %e ffected %y the e$entC

% A po#er system distur%nce due to n out'e

in the transmission net#ork or *eneratin* system

for which mret processes re inde4ute for

reco$eryC

c A si'nificnt en$ironmentl phenomenon

includin' wether storms or fires which re liely

to or re si'nificntly ffectin' the po#er system

for which market processes re inde4ute for

reco$eryC

d A system %lcout or si'nificnt po#er system

under $olt'e conditionC

e #teril dm'e to distri'ution system which hs

or is liely to d$ersely ffect the opertion of the

transmission system or to render the spot market

ineffecti$eC nd

f A sitution which the 7o$ernment proclims or

declres n emer'ency.

6.3.1.3 A WESM Participant shll notify the System operator s

soon s prctic%le of<

Any e$ent or sitution of which the WESM

Participant %ecomes wre where in the

reson%le opinion of the WESM Participant

tht e$ent or sitution is of ind descri%ed in

cluse6.3.1.2C nd

% Any ction ten %y the WESM Participant under its

sfety procedures or otherwise in response to tht

e$ent or sitution in ccordnce with the $rid

Code and istri'ution Code.

6.3.1.> The "ystem opertor my from time to time specify

procedures for communictin' the eBistence of n

emer'ency nd ll rele$nt informtion reltin' to theemer'ency to the !E"# Prticipnts.

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1>?



6.3.1.? +otwithstndin' ny other pro$ision contined in these

Rules the ER(&*E or the PE# ord my in$esti'te or

re4uire eBplntions re'rdin' n emer'ency direction

'i$en %y the "ystem opertor.

6.3.1.6 Ech !E"# Prticipnt shll use its %est ende$ors to

ensure tht its sfety pln permits it to comply with

emer'ency directions.

6.3.1.@ !hen the "ystem opertor hs determined tht n

emer'ency or the effect thereof hs ended the "ystem

opertor shll notify the #ret *pertor who in turn shll

notify ll !E"# Prticipnts nd the &*E tht the

emer'ency or the effect of such emer'ency hs ended.

8'0' Eme!%en"- P!$"ed+!es

6.3.2.1 &urin' the period when the po#er system my %e or is

ffected %y n emer*ency the System operator shll crry

out ctions in ccordnce with the system security nd

relia'ility *uidelines nd its o%li'tions if ny concernin'

sensiti$e lods to<

Identify the impct of the emer*ency on system

security in terms of the cp%ility of *eneratin*

units transmission systems or distri'ution systems

nd

% Identify nd implement the ctions re4uired to

restore the po#er system to its stisfctory

opertin' stte.

6.3.2.2 Emer*ency procedures re the procedures to %e ten %y

or t the direction of the System operator to<

#intin system security

% A$ert or reduce the effect of n emer*ency

c Issue notifictions nd wrnin's to Market

Operator te PEM Board! the OE nd ERC where

ppropriteC nd

d Restore the po#er system to stisfctory

opertin' stte immeditely fter n emer*ency.




6.3.2.3 Emer'ency procedures my re4uire !E"# Prticipnt to

te ction or not to te ction in ccordnce with

emer'ency directions 'i$en %y the "ystem opertor.

6.3.2.> Prior to spot market commencement date the System

operator in consulttion with the Market Operator shll<

&e$elop pproprite emer'ency procedures in

ccordnce with the 7rid (ode nd &istri%ution

(ode. "uch procedures shll %e su%ect to ppro$l

of the PE# ordC nd

% Pu%lish detils of the ppro$ed emer'ency

procedures.

6.3.2.? The "ystem opertor shll in consulttion with the #ret

*pertor re$iew the emer'ency procedures from time to

time.

6.3.2.6 Ech WESM mem'er shll promptly<

(omply with ny emer'ency direction 'i$en %y the

"ystem opertor includin' emer'ency

directions re4uirin' the disconnection of

e4uipment from trnsmission system or

distri%ution system for reli%ility purposes unless

the !E"# Prticipnt reson%ly %elie$es tht n

emer'ency direction 'i$en %y the "ystem opertor

poses rel nd su%stntil ris of dm'e to its

e4uipment to the sfety of its employees or the

pu%lic or of undue inury to the en$ironmentC

% +otify the "ystem opertor if it intends not to

follow the emer'ency direction for ny of the

resons descri%ed in cluse6.3.2.6 C nd

c (omply with the "ystem opertor;s direction to the

fullest eBtent possi%le without cusin' the hrms

descri%ed in cluse 6.3.2.6 .

6.3.2.@ The System operator shll me $il%le copy of the

emer'ency procedures to ll WESM Participants within

se$en @ dys fter ech occsion on which theemer'ency procedures h$e %een updted.

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1>@



8'2 EMER6ENCY PLANNIN6 BY WESM PARTICIPANTS

8'2' WESM Pa!#"#pan Eme!%en"- C$na"s

6.>.1.1 Ech WESM Participant shll pro$ide the Market Operator nd System operator with<

An effecti$e mens of communiction %y which

representti$e of the WESM Participant my %e

contcted %y the Market Operator 2> hours dyC

nd

% The nme nd title of the WESM Participants

representti$e who cn %e contcted %y usin' tht

mens of communiction.

6.>.1.2 The representti$e of ech WESM Participant nominted

under cluse 6.>.1.1 shll %e person h$in' pproprite

uthority nd responsi%ility within the WESM Participant-s

or'ni5tion to act s the primry contct for the System

operator in the e$ent of n emer*ency.

6.>.1.3 Ech WESM Participant shll immeditely notify the

Market Operator nd System operator of chn'e to thedetils pro$ided under cluse 6.>.1.1.

8'2' WESM Pa!#"#pan P!$"ed+!es

6.>.2.1 Ech %radin* Participant nd &et#ork Service Provider

shll est%lish nd mintin its own internl sfety

procedures necessry to en%le it nd its Customers to

comply with emer*ency directions under this chpter.

6.>.2.2 Ech %radin* Participant nd &et#ork Service Provider

shll ensure tht the sfety procedures it est%lishes under

cluse 6.>.2.1 re consistent with the emer'ency

procedures est%lished under cluse 6.3.2.> nd the $rid

Code.

8'2'0 Eme!%en"- P!$"ed+!es A1a!eness

6.>.3.1 Ech %radin* Participant shll t ll times ensure tht ll

of its responsi%le officers nd stff nd their Customers

re fmilir with %oth the sfety nd the emer'ency

procedures.




6.>.3.2 )or the purposes of cluses 6.>.3.1 nd 6.?.1 responsi%le

officers nd stff re those whose functions or res of

responsi%ility re such tht they re liely to %e re4uired

to me decisions or te ction in n emer*ency.

8'3 RESPONSE TO AN EMER6ENCY

8'3' De",a!a#$ns and D#!e"#$ns #n an Eme!%en"-

6.?.1.1 &urin' n emer*ency7

The System operator shll in coordintion with the

Market Operator issue emer*ency directions s it

reson%ly considers necessry which my include

%ut need not %e limited to directions to<

1 "witch off or re:route ener'y deli$ery from

$eneration Company

2 (ll e4uipment into ser$iceC

3 Te e4uipment out of ser$iceC

> (ommence opertion or mintin increse

or reduce cti$e or recti$e power outputC

? (urtil shut down or otherwise $ryopertion or outputC

6 "hed or restore lodC nd

@ "u%ect to cluse 6. do ny other ct or

thin' necessry to %e done for resons of

pu%lic sfety or the security of the power

system or of undue inury to the

en$ironment.

% The System operator shll lso<


N$5em*e! 993)

1 Implement ny load seddin* in mnner

consistent with the system security nd

relia'ility *uidelines nd

2 To the eBtent possi%le determine rottin'

outa*e pln nd rotte ny load seddin* re4uirements.


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6.?.1.2 !hen n emer'ency rises the System operator shll<

Immeditely notify the #ret *pertor

% +otify the ER( nd the &*E s soon s reson%ly

prctic%leC

c +otify !E"# Prticipnts s soon s reson%ly

prctic%le of the commencement nture eBtent

nd eBpected durtion of the emer'ency nd the

wy in which the "ystem *pertor reson%ly

nticiptes it will ct in response to the emer'encyC

nd

d +otify the ERC! the OE! nd WESM Participants of

ny mteril chn'es in the nture eBtent nd

eBpected durtion of n emer*ency.

6.?.1.3 =pon %ein' notified of n emer'ency ech WESM

Participant shll d$ise ll responsi%le officers nd stff

s defined in cluse 6.>.3.2 nd their Customers! of the

eBistence nd nture of the emer*ency.

6.?.1.> Ech WESM Participant shll su%ect to cluse 6.?.1.?<

(omply with sfety procedures the emer'ency

procedures pplic%le to the !E"# Prticipnt in

the circumstnces this chpter nd ll emer'ency

directions 'i$en %y the "ystem *pertor nd

% (ooperte with the #ret *pertor nd the "ystem

opertor to en%le the "ystem *pertor to

implement the emer'ency procedures.

6.?.1.? !here there is conflict %etween these Rules nd<

The re4uirements of !E"# Prticipnt;s sfety

proceduresC

% The emer'ency procedures pplic%le to the !E"#

Prticipnt in the rele$nt circumstncesC

c This chpterC

d Any procedures de$eloped %y the "ystem opertor

or

e An emer'ency direction 'i$en %y the "ystemopertor the "ystem opertor shll decide which of

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1?0



those re4uirements or prt of those re4uirements is

to pre$il nd d$ise the rele$nt !E"#

Prticipnts ccordin'ly.

8'3' Ine!5en#$n D+e $ Eme!%en"-

6.?.2.1 If in the %est ud'ment of the System operator

insufficient time eBists for the spot market to ddress n

emer'ency the System operator shll te ny mesures it

considers to %e reson%le nd necessry to o$ercome the

emer*ency! includin' without limittion<

Increse the 'enertion or supply cp%ility such s

re4uestin' $il%le %ut not committed 'enertin'

units to strt:up or recll trnsmission e4uipment

out'esC

% &isconnect one or more connection points s

considered %y the "ystem opertor to %e necessryC

c &irect in ccordnce with cluse 6.?.1

(ustomer te such steps s re reson%le to

immeditely reduce its lodC

d (onstrin:on or constrin:off 7enertion

(ompnyC nd

e Re4uire !E"# Prticipnts to do ny reson%le ct

or thin' which the "ystem Operator %elie$es

necessry in the circumstnces.

Therefter the System operator shll report in detil to

the PEM Board in detil re'rdin' the ctions nd

circumstnces under which the inter$ention ws mde.

8'8 SYSTEM SECURITY

8'8' S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes

6.6.1.1 In consulttion with WESM Participants nd the Market

Operator the System operator shll de$elop nd

periodiclly updte system security nd relia'ility

*uidelines su%ect to ppro$l of the PEM Board .

6.6.1.2 The system security nd relia'ility *uidelines de$elopedunder cluse 6.6.1.1 shll %e pro$ided to<




The ERC nd the OE on completion nd fter ny

updte thereonC

% WESM ParticipantsC nd

c Interested persons upon re4uest.

6.6.1.3 If the System operator proposes chn'e to the system

security nd relia'ility *uidelines which in the System

operator ;s reson%le opinion is mteril chn'e then

prior to its implementtion tht proposed chn'e shll %e

re$iewed in ccordnce with the $rid Code and

istri'ution Code.

8'8' N$#"e $/ Th!ea $ S-sem Se"+!#-

6.6.2.1 =pon determintion of the eBistence or the liely

possi%ility of thret to system security the System

operator shll without dely notify the WESM Participants

nd the Market Operator of such thret. "id notice shll

include the detils of tht thret s well s<

The nture nd 'enerl m'nitude of the thret to

system security includin' n estimte of the liely

durtion thereof nd the liely shortfll in supply

liely to occur durin' tht periodC

% The timefrme in which the "ystem opertor will

need to inter$ene in the spot mret if the thret

to system security does not su%side without

inter$ention %y the "ystem opertor nd

c The re'ions of the power system in which the thret

to system security is liely to %e locted.

6.6.2.2 If the System operator pro$ides the notice with detils of

thret to system security to WESM Participants in

ccordnce with cluse 6.6.2.1 the System operator my

issue instructions re4uirin' ech WESM Participant to

pro$ide %est estimtes of the followin'<

A "cheduled 7enertion (ompny;s plnt $il%ility

to either increse or decrese 'enertionC nd

% A (ustomer;s %ility to either increse or decresemarket load.




6.6.2.3 &espite cluse ?.3 !E"# Prticipnt shll not withhold

informtion re4uired %y the "ystem opertor in ccordnce

with cluse 6.6.2.2. The !E"# Prticipnt shll comply

with the instructions nd pro$ide the informtion re4uired

s soon s prctic%le.

6.6.2.> The "ystem opertor shll tret ll informtion pro$ided to

it %y !E"# Prticipnt under cluse 6.6.2.2 s

confidentil informtion nd my only use tht informtion

for the followin' purposes<

#intinin' or re:est%lishin' system

security %y issuin' emer'ency directions under

cluses 6.6.> nd 6.6.?C

% #in' decision under cluse 6.6.3C nd

c Re'ultory reportin'.

6.6.2.? The "ystem opertor shll inform !E"# Prticipnts nd

the #ret Operator immeditely when it reson%ly

considers thret to system security to %e t n end.

8'8'0 Resp$nse $ S-sem Se"+!#- Th!ea

6.6.3.1 If the "ystem opertor hs identified thret to system

security nd reson%ly considers tht sufficient time

eBists for the thret to su%side without inter$ention the

"ystem opertor shll in ccordnce with the procedures

set out in cluse 6.6.> fcilitte spot mret response

to o$ercome the thret to system security.

6.6.3.2 If the "ystem opertor hs identified thret to system

security nd it does not %elie$e tht sufficient time eBists

for the thret to su%side without intervention then the

System operator shll<

Te ny mesures it %elie$es to %e reson%le nd

necessry to mintin or restore system security

includin' those set out in cluse 6.6.?C nd

% Act t ll times in ccordnce with the system

security nd relia'ility *uidelines.

8'8'2 Ma!.e Resp$nse $ Th!ea $ S-sem Se"+!#-




6.6.>.1 If the System operator %elie$es tht sufficient time eBists

for thret to system security to su%side without

intervention the System operator shll<

If it hs not lredy done so pro$ide WESM

Participants with the informtion set out under

cluse 6.6.2.1C nd

% Ad$ise the Market Operator nd those WESM

Participants who the System operator considers

would %e re4uired to te ction or cese tin'

ction if the thret to system security is not

resol$ed without inter$ention of the followin'

informtion<

1 The eBistence of the thret to system

security C nd

2 The liely nture of ny re4uirement of the

7rid *pertor if the System operator

determines tht it should intervene.

6.6.>.2 The ction or cesstion of ction re4uired under cluse

6.6.>.1% my include %ut is not limited to chn'es %y

the #ret *pertor to the pre:disptch schedule

ffectin' scheduled 'enertin' units schedule networ

ser$ices ndDor scheduled lod.

6.6.>.3 The #ret *pertor my<

In$ite %radin* Participants to re$ise or re:%id

their physicl cp%ilities su%mitted %y such

%radin* Participants in ccordnce with cluse

3.> in respect of the rele$nt tradin* intervalC nd

% +otify ll %radin* Participants of si'nificnt

chn'es to the informtion pro$ided under this

cluse 6.6.>.

6.6.>.> WESM Participants shll comply with ll re4uests nd

directions issued %y the Market Operator under this cluse

6.6.>.

8'8'3 Ine!5en#$n D+e $ S-sem Se"+!#- Th!ea

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1?>



6.6.?.1 If in the %est ud'ment of the System operator

insufficient time eBists for the spot market to ddress

thret to system security the System operator shll te

ny mesures it considers to %e reson%le nd necessry

to o$ercome the thret to system security includin'

without limittion<

Increse the *eneration or supply cp%ility such s

re4uestin' $il%le %ut not committed *eneratin*

units to strt:up or recll transmission e4uipment

outa*es

% &isconnect one or more connection points s

considered %y the System operator to %e necessryC

c &irect in ccordnce with cluse 6.?.1 Customer

to te such steps s is reson%le to immeditely

reduce its lodC

d (onstrin:on or constrin:off $eneration

Company C nd

e Re4uire WESM Participants to do ny reson%le ct

or thin' which the System Operator %elie$es

necessry in the circumstnces.

6.6.?.2 Therefter the System operator shll report in detil to

the PEM Board in detil re'rdin' the ctions nd

circumstnces under which the inter$ention ws mde.

8'; FORCE MAEURE

8';' F$!"e ma4e+!e e5en

A /orce ma2eure is the occurrence in tradin* interval of n e$ent or

e$ents not within the reson%le control directly or indirectly of the

Market Operator nd WESM mem'er to the eBtent tht such e$ent

despite the eBercise of the reson%le dili'ence cnnot %e or %e cused

to %e pre$ented or remo$ed nd hs resulted in reduction in the

norml cpcity of prt or ll of the power transmission system durin'

tht tradin* interval nd such reduction is liely to mterilly ffect the

opertion of the spot market or mterilly threten system security.

8';' F$!"e ma4e+!e e5enE$ents of /orce ma2eure shll include<

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1??



1 #or networ trou%le tht cused prtil or system:wide

%lcoutC

2 #ret system hrdwre or softwre filure tht mes it

impossi%le to recei$e or process mret offerD%id informtion or

produce mret schedules due to erroneous rel:time sttus input

dt or disptch the system in ccordnce with the WESM RulesC

nd

3 Any other e$ent circumstnce or occurrence in nture of or

similr in effect to ny of the fore'oin'.


8';'0 N$#/#"a#$n

[email protected] The !E"# Prticipnt shll notify the #ret *pertor s

soon s reson%ly possi%le of the occurrence of ny force

meure e$ent.

[email protected] The Market Operator shll notify ll %radin* Participants

s soon s reson%ly possi%le of the nture of the /orce

ma2eure nd the eBtent to which the /orce ma2eure

ffects the opertion of the spot market.

8';'2 O*,#%a#$ns $/ WESM Pa!#"#pans

WESM Participants shll use ll reson%le ende$ors to<

Ensure tht they do not cuse or eBcer%te /orce ma2eure

e$entC nd

% #iti'te the occurrence nd effects of /orce ma2eure e$ent.

8'< BUSINESS CONTINUITY PLAN AND DISASTER RECO7ERY PROCEDURES OF

THE MARKET OPERATOR (Added pe! DOE DC N$' 90::99< daed 8

De"em*e! 90)

8'<' De5e,$pmen $/ B+s#ness C$n#n+#- and D#sase! Re"$5e!- P!$"ed+!es

6..1.1 In consulttion with the System Operator! the Market

Operator shll de$elop nd implement usiness (ontinuity

Pln nd &isster Reco$ery Procedures to ensure

opertionl continuity of the !E"# in cses of

emer'encies nd force meure e$ents. Pro$ided tht the








sid pln nd procedures shll %e ppro$ed %y the PEM

Board.

6..1.2 The Market Operator shll re$iew nd updte the usiness

(ontinuity Pln nd &isster Reco$ery Procedures s my

%e necessry pro$ided tht ny chn'es thereto shll %e

ppro$ed %y the PEM Board.

8'<' S#m+,a#$ns

6..2.1 The Market Operator shll re'ulrly simulte the

procedures set forth in the usiness (ontinuity Pln s well

s the &isster Reco$ery Procedures to ensure the

prepredness of the Market Operator! System Operator

nd %radin* Participants in the e$ent of emer'encies

ffectin' mret opertions. The Market Operator shll

e$lute the results of the simultion eBercise nd shll

identify deficiencies in the procedures if ny. In cses of

deficiencies in the procedures the Market Operator shll

recommend correcti$e mesures for ppro$l of the PEM

Board. Therefter the Market Operator shll pro$ide

report to the PEM Board! OE! nd ERC on the result of

the simultion nd the implementtion of the usiness

(ontinuity Pln nd &isster Reco$ery Procedures.

6..2.2 The Market Operator shll inform the %radin* Participants

nd the System Operator of the simultions t lest thirty

30 dys prior to the conduct of the sme.

6..2.3 The Market Operator shll lso notify ll %radin*

Participants nd the System Operator s soon s

reson%ly possi%le if the simultion or implementtion of

its usiness (ontinuity Pln nd &isster Reco$ery

Procedures my interrupt the opertions of mret

softwre used %y the Market Operator to support $rious

processes in the !E"#. The Market Operator shll use ll

efforts to minimi5e ny possi%le mret interruption in

the conduct of the simultion or implementtion of the

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1?@



usiness (ontinuity Pln nd &isster Reco$ery

Procedures.

8'= MARKET SUSPENSION

(Ren+m*e!ed pe! DOE DC N$' 90::99< daed 8 De"em*e! 90)

8'=' C$nd##$ns /$! S+spens#$n $/ he Ma!.e

6.9.1.1 Pursunt to "ection 30 of the Act! the ERC shll suspend

the opertion of the spot market or declre temporry

wholesle electricity spot market filure in cses of<

+turl clmitiesC or

% )ollowin' officil declrtion of ntionl nd

interntionl security emer'ency %y the President

of the Repu%lic.

8'=' De",a!a#$n $/ Ma!.e S+spens#$n

6.9.2.1 The spot market cn only %e suspended %y declrtion

%y the ERC under cluse 6..1.1 nd if the spot market is

suspended<

The ERC shll notify the Market Operator nd

% The Market Operator shll notify ll WESMParticipants! s soon s possi%le.

6.9.2.2 The spot market is deemed suspended t the strt of the

tradin* interval in which the ERC d$ises the Market

Operator tht the spot market is suspended.

6.9.2.3 )ollowin' declrtion %y the ERC under cluse 6.9.1.1

the spot market is to remin suspended until the ERC

notifies the Market Operator tht spot market opertion is

to resume.

6.9.2.> The Market Operator shll promptly notify ll WESM

Participants tht spot market opertion is to resume nd

the time t which spot market opertion is to resume.

6.9.2.? +otwithstndin' suspension of the spot market the

Market Operator my issue emer'ency directions to WESM

Participants in ccordnce with cluse 6.?.1.

8'='0 E//e" $/ Ma!.e S+spens#$n






6.9.3.1 The market price durin' tradin* interval in which the

ERC hs declred the spot market to %e suspended nd up

to the time tht the mret resumes in ccordnce with

6..2.> is to %e determined %y the Market Operator in

ccordnce with cluse 6.2.3.

6.9.3.2 &urin' tradin* interval in which the spot market is

suspended the WESM Rules will continue to pply with

such modifictions s the Market Operator reson%ly

determines to %e necessry tin' into considertion the

circumstnces nd conditions 'i$in' rise to the

decision %y the ERC to suspend the spot market.

8'='2 Ine!5en#$n Rep$!

6.9.>.1 =pon the concurrence of one or more of the followin'

e$ents<

An intervention

% An e$ent which in the System operator ;s

reson%le opinion is or my %e thret to system

security

c A force meure e$entC or

d An emer'ency

the PE# ord shll within ten dys thereof direct the

#ret "ur$eillnce (ommittee to in$esti'te the

circumstnces of tht e$ent nd prepre report to

ssess<

The de4ucy of the rele$nt pro$isions of the

!E"# Rules in reltion to the e$ent or e$ents which

occurredC

% The ppropriteness of ctions ten %y the "ystem

opertor nd the #ret *pertor in reltion to the

e$ent or e$ents which occurredC

c The costs incurred %y !E"# mem%ers s

conse4uence of respondin' to the e$ent or e$entsC

nd




d Any findin' of potentil fult of ny !E"#

Prticipnt includin' preliminry recommendtion

for further e$lution %y the PE# Auditor.

6.9.>.2 A copy of the report prepred under cluse 6.9.>.1 shll %e

pro$ided to<

The PE# ordC

% The ER( nd the &*EC nd

c !E"# Prticipnts nd interested persons on

re4uest.

8'='3 Ma!.e S+spens#$n Rep$!

6.9.?.1 !ithin ten 'usiness days followin' declrtion %y the

ERC under cluse 6.9.1.1 the Market Surveillance

Committee shll in$esti'te the circumstnces of tht

e$ent nd prepre report to ssess<

The de4ucy of the pro$isions of the !E"# Rules

rele$nt to the e$ent or e$ents which occurredC

% The ppropriteness of ctions ten %y the #ret

*pertor in reltion to the e$ent or e$ents which

occurredC nd

c The costs incurred %y the !E"# mem%ers s

conse4uence of respondin' to the e$ent or e$ents.

6.9.?.2 A copy of the report prepred under cluse 6.9.?.1 shll %e

pro$ided to<

The PE# ordC

% The ER( nd the &*E on completion of the reportC

nd

c !E"# Prticipnts nd interested persons on

re4uest.




CHAPTER ;

ENFORCEMENT AND DISPUTES

;' SCOPE OF CHAPTER ;

In line with the principles of self:'o$ernnce eBpeditious ust nd lest

eBpensi$e disposition of disputes nd considerin' the continuous nture of the

trnsctions nd opertions of the WESM this chpter sets out<

The responsi%ilities for ensurin' tht ll WESM mem'er s comply with the

WESM RulesC

% The procedures on how the lle'ed %reches will %e delt with

includin'<

1 The correct prty to whom notice of n lle'ed %rech of the

WESM Rules %y WESM mem'er shll %e 'i$enC

2 The mnner in which n lle'ed %rech is to %e in$esti'tedC

3 The mnner in which %rech is to %e snctionedC

c *ther pro$isions on how disputes re to %e resol$edC nd

d The ppointment of n En/orcement and Compliance O//icer ispute

Resolution Administrator nd selection of meditors nd r%itrtors tht

shll form prt of the r%itrtion pnel. (As amended *- DOE DC N$'

998:9:999 daed 9 an+a!- 998 and /+!he! amended *- DOE DC

N$' 9:9:999 daed 3 Fe*!+a!- 9)

;' ENFORCEMENT

;'' C$mp,#an"e




The PEM Board in consulttion with the Market Operator nd the

System operator shll do ll thin's reson%ly necessry to ensure tht

ll WESM mem'er s comply with the WESM Rules.

;'' B!ea"hes $/ he WESM R+,es *- WESM mem*e!s'


@.2.2.1 If WESM mem'er or the Market Operator hs reson%le

'rounds to %elie$e tht nother WESM mem'er my h$e

committed or my %e committin' %rech of the WESM

Rules the WESM mem'er or the Market Operator shll

notify the PEM Board of the lle'ed %rech in writin' s

soon s possi%le.

@.2.2.2 The PE# ord shll direct the En/orcement and

Compliance O//icer to in$esti'te the lle'ed %rech s

soon s possi%le when< (As amended *- DOE DC N$'

998:9:999 daed 9 an+a!- 998)

A WESM mem'er or the #ret *pertor notifies

the PEM Board of n lle'ed %rech of the WESM

Rules in ccordnce with cluse @.2.2.1C or

% The PEM Board hs reson%le 'round to %elie$e

tht the WESM mem'er hs committed or is

committin' n ct pro%%ly in $ioltion of te

WESM RulesC or

c The #ret "ur$eillnce (ommittee su%mits

report showin' suspected %reches of the !E"#

Rules %y !E"# mem%ers.(Added as pe! DOE DC N$'

998:9:999 daed 9 an+a!- 998

@.2.2.3 The En/orcement and Compliance O//icer shll issue

written notice to the WESM mem'er who is lle'ed to %e

in %rech of the WESM Rules within fi$e clendr dys

upon receipt of notice from the PEM Board '(As amended

*- DOE DC N$' 998:9:999 daed 9 an+a!- 998)

@.2.2.> The sid notice issued %y the En/orcement and Compliance

O//icer shll< (As amended *- DOE DC N$' 998:9:999

daed 9 an+a!- 998)


















"pecify the nture of the %rech nd the snctions

tht my %e imposed if the %rech is not remediedC

% Re4uire the WESM mem'er to eBplin in writin' the

lle'ed %rech within ten 10 clendr dys from

receipt thereofC nd

c *rder the !E"# #em%er who is in lle'ed

%rech to immeditely remedy the ct or omission

comprisin' the lle'ed %rech or some other

remedil mesure if in the opinion of the

En/orcement and Compliance O//icer! eBercisin'

due nd necessry dili'ence %elie$es tht some

remedil or pre$enti$e mesure should %e ten to

%te the effects of the ct or omission complined

ofC Pro$ided tht i complyin' with the order shll

not %e deemed s n dmission of 'uilt of the ct or

omission complined of nd ii shll %e reco'ni5ed

s miti'tin' fctor if the complyin' prty is lter

determined to %e in %rech.(As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

@.2.2.? The notice shll %e copy furnished to<

The PEM Board C JndK

% The ERC!

% the mret opertor(Added as pe! DOE DC N$'

998:9:999 daed 9 an+a!- 998)

within fi$e 'usiness days from issunce of notice.

@.2.2.6 The En/orcement and Compliance O//icer fter ccordin'

the prties due process shll determine whether the WESM

mem'er in 4uestion is in %rech of the WESM Rules. (As


an+a!- 998)

@.2.2.@ If the En/orcement and Compliance O//icer determines

tht WESM mem'er hs indeed %reched WESM Rule

the En/orcement and Compliance O//icer shll re4uire in

writin' the WESM mem'er to remedy the %rech within reson%le period of timeC Provided tat the period to














remedy s determined %y the En/orcement and

Compliance O//icer shll te in considertion ll the

ttendnt circumstnces surroundin' the %rech includin'

the nture nd eBtent of dm'es or inuries cused s

well s the 4uicest possi%le time re4uired to correct the

%rech. (As amended *- DOE DC N$' 998:9:999 daed

9 an+a!- 998)

@.2.2. The En/orcement and Compliance O//icer my further

recommend to the PE# ord tht the !E"# mem%er

determined to %e in %rech %e suspended in ccordnce

with cluse 3.1?.@ if the sid #em%er hs< As amended

*- DOE DC N$' 998:9:999 daed 9 an+a!- 998)

(ommitted such %rech of the WESM Rules nd

tht the %rech cnnot %e rectifiedC

% (ontinued to %rech the WESM Rules o$er period

of timeC or

c )iled to remedy %rech fter it hs %een

re4uired to do so.

The En/orcement and Compliance O//icer my recommend

to the PE# ord for ppro$l the suspension of the prty

in %rech in ccordnce with cluse 3.1?.@.

@.2.2.9 If the %rech is of such nture tht pyment of

compenstion to ffected prties is re4uired the Market

Operator on %ehlf of the ffected prty my me

demnd for pyment under the WESM Rules without

preudice to the fines nd penlties tht the ERC my

impose.

;''0 A,,e%ed B!ea"hes $/ he WESM R+,es *- he Ma!.e Ope!a$! $! S-sem

Ope!a$!

@.2.3.1 If WESM mem'er hs reson%le 'rounds to %elie$e tht

te Market Operator or System operator is in %rech of

the WESM Rules the WESM mem'er shll notify in writin'

the PEM Board of the %rech.

@.2.3.2 If the PEM Board considers tht the Market Operator orSystem Operator hs committed %rech of the WESM













Rules the PEM Board shll direct the En/orcement and

Compliance O//icer to in$esti'te the lle'ed %rech s

soon s possi%le. (As amended *- DOE DC N$' 998:9:

999 daed 9 an+a!- 998)

@.2.3.3 The Enforcement nd (omplince *fficer shll issue

written notice to the #ret *pertor or the "ystem

opertor within fi$e %usiness dys upon receipt of notice

from the PE# ord. (As amended *- DOE DC N$' 998:

9:999 daed 9 an+a!- 998)

@.2.3.> The notice which the Enforcement nd (omplince *fficer

is re4uired to issue under cluse @.2.3.3 shll< (As


an+a!- 998)

"pecify the nture of the %rech nd the snctions

which my %e imposed if the %rech is not

remediedC nd

% Re4uire the Market Operator or the System

operator to eBplin in writin' the lle'ed %rech

within reson%le period of time.

@.2.3.? The notice issued under cluse @.2.3.3 shll %e copy

furnished to<

The PE# ordC nd

% The ER(.

@.2.3.6 If the %rech is of such nture tht pyment of

compenstion to ffected prties is re4uired the PE#

ord on %ehlf of the ffected prty my me demnd

for pyment from the #ret *pertor or the "ystem

opertor under the !E"# Rules without preudice to the

fines nd penlties tht the ER( my impose.

@.2.3.@ If %rech %y the Market Operator is not rectified within

reson%le time from the notice issued under cluse

@.2.3.3 or is incp%le of rectifiction the PEM Board my

file forml complint to the ERC.

;''2 In5es#%a#$ns


















@.2.>.1 The En/orcement and Compliance O//icer my re4uest

from the WESM mem'er who is lle'ed to %e in %rech of

the WESM Rules ll informtion reltin' to the %rech. (As


an+a!- 998)

@.2.>.2 If the En/orcement and Compliance O//icer mes

re4uest for informtion under cluse @.2.>.1 it shll

pro$ide to the WESM mem'er to whom the re4uest is

mde the resons for the re4uest. (As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

@.2.>.3 If WESM mem'er fils to comply with directi$e or

re4uest %y the Enforcement nd (omplince *fficer for

informtion under cluse @.2.>.1 the Enforcement nd

(omplince *fficer my re4uest the #ret

"ur$eillnce (ommittee to in$esti'te the mtter nd to

prepre report or such other documenttion s the

Enforcement nd (omplince *fficer my determine. (As


an+a!- 998)

@.2.>.> A !E"# #em%er shll cooperte with the #ret

"ur$eillnce (ommittee to underte the in$esti'tion nd

to prepre the report or other documenttion under cluse

@.2.>.3 nd shll t the re4uest of the #ret "ur$eillnce

(ommittee use its %est ende$ors to ensure tht third

prties me $il%le such informtion s the person my

reson%ly %e re4uired for the purpose of the

in$esti'tion.

@.2.>.? In the e$ent tht n lle'ed %rech eBists the prticipnt

in %rech shll %er the cost of the in$esti'tion nd

preprtion of the report or other documenttion under

cluse @.2.>.3.

@.2.>.6 Any report or other documenttion referred to in this

cluse @.2.> my%e used in ny proceedin' under or in

reltion to the WESM Rules or for the purpose of commencin' ny such proceedin'.




















@.2.>.@ All informtion pro$ided under this cluse @.2.> shll %e

treted in ccordnce with cluse ?.3.

;''3 San"#$ns

@.2.?.1 The ERC shll h$e the ori'inl nd eBclusi$e urisdiction

o$er ll cses contestin' rtes fees fines nd penlties

imposed %y the ERC in the eBercise of its powers functions

nd responsi%ilities nd o$er ll cses in$ol$in' disputes

%etween nd mon' prticipnts or plyers in the ener*y

sector.

@.2.?.2 In line with the principles stted in cluse @.1 the PEM

Board my impose snctions on ny prticipnt of the

WESM for %rech of ny pro$ision of the WESM RulesC

Pro$ided tht this is without preudice to the uthority of

ERC to impose fines nd penlties pursunt to "ection>6 of

the Act.

;''8 A"#$ns *- A%ens? Emp,$-ees $! O//#"e!s $/ Pa!#"#pans

The ct of omission of ny prtner 'ent officer employee or ny

person ctin' for or in %ehlf of WESM mem'er or the Market

Operator constitutin' %rech of the WESM Rules shll %e considered

the ct or omission of the WESM mem'er .

;''; P+*,#"a#$n

"u%ect to cluse ?.3 the En/orcement and Compliance O//icer shll

pu'lis monthly report settin' out summry for the period co$ered

%y the report of ll ctions nd rulin's mde durin' tht period in

reltion to the enforcement of the WESM Rules. (As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

;''< App$#nmen $/ an En/$!"emen and C$mp,#an"e O//#"e!

(Added as pe! DOE DC N$' 998:9:999 daed 9 an+a!- 998)

@.2..1 The President of PE#( shll ppoint person to ct s

Enforcement nd (omplince *fficer with the concurrence

of the PEM Board . (Added as pe! DOE DC N$' 998:9:

999 daed 9 an+a!- 998)

;''= Des#%na#$n $/ a C$mp,#an"e O//#"e! /$! WESM Mem*e!? Ma!.e

Ope!a$! and S-sem Ope!a$!(Added as pe! DOE DC N$' 99:9;:999< daed 09 +ne 99)








@.2.9.1 Ech !E"# #em%er the Market Operator the System

Operator #eterin' "er$ice Pro$ider nd ny other !E"#

"er$ice Pro$iders shll desi'nte (omplince *fficer in

their respecti$e or'ni5tions. (Added as pe! DOE DC N$'

99:9;:999< daed 09 +ne 99)

@.2.9.2 The (omplince *fficer shll< (Added as pe! DOE DC N$'

99:9;:999< daed 09 +ne 99)

#onitor nd underte necessry cti$ities to

ensure the full complince of their respecti$e

or'ni5tion to the EPIRA the EPIRA Implementin'

Rules nd Re'ultions WESM Rules nd the !E"#

#ret #nulsC nd de$elop necessry procedures

nd 'uidelines for this purpose. (Added as pe! DOE

DC N$' 99:9;:999< daed 09 +ne 99)

% )rom time to time if the (omplince *fficer deems

it necessry or pproprite propose policies or

mendments to the WESM Rules ndDor !E"#

#ret #nuls to enhnce or de$elop the !E"#

enforcement nd complince with the o%ecti$e of

promotin' 'ood commercil nd technicl

prctices. (Added as pe! DOE DC N$' 99:9;:

999< daed 09 +ne 99)

c e responsi%le in fcilittin' nd coordintin' with

the !E"# Enforcement (omplince *ffice E(* ll

mtters reltin' to the enforcement nd

complince of their respecti$e or'ni5tion

includin' the pro$ision of the necessry informtion

nd dt s my %e re4uired %y ny of the !E"#

7o$ernnce (ommittees nd %y the E(*. (Added as

pe! DOE DC N$' 99:9;:999< daed 09 +ne

99)

d "u%mit report to the E(* concernin' their

respecti$e or'ni5tions complince with WESM

Rules nd !E"# #ret #nuls on n nnul %sisor s my %e determined %y the E(* or ny of the




!E"# 7o$ernnce (ommittees. (Added as pe! DOE

DC N$' 99:9;:999< daed 09 +ne 99)

;'0 DISPUTE RESOLUTION

;'0' App,#"a#$n and 6+#d#n% P!#n"#p,es

@.3.1.1 The dispute resolution procedures set out in this cluse @.3

pply to ll disputes reltin' to or in connection with

trnsctions in the WESM which my rise %etween or

mon' ny of the followin'<

The Market Operator C

% The System Operator C

c The PEM Board nd its !orin' 7roups eBcept the

ispute Resolution Administrator

d WESM mem'er sC

e Intendin' WESM mem'er sC

f Persons who h$e %een notified %y the Market

Operator under cluse 2.?.6.1 on the followin'

'rounds<

1 n ppliction for re'istrtion s WESMmem'er hs %een unsuccessfulC

2 the ppliction or interprettion of the WESM

RulesC

3 the ppliction under or in reltion to

contrct %etween two or more persons or

entities referred to in cluses @.3.1.1 to f

where tht contrct pro$ides tht the dispute

resolution procedures under the WESM Rules

re to pply to ny dispute under or in reltion

to the contrct with respect to the ppliction

of the WESM RulesC

> dispute under or in reltion to the rules nd

re'ultions issued %y the ERC nd the OE

under the Act where such rules nd re'ultions

pro$ide tht the dispute resolution proceduresunder the WESM Rules re to pply to ny




dispute under or in reltion to tht industry

code or rules nd re'ultionsC (As amended *-

DOE N$' 993::99 daed N$5em*e!

993)

? the filure of n entity or entities referred to in

cluses @.3.1.1 to e to ct or %eh$e in

mnner consistent with the WESM RulesC

6 n o%li'tion to settle pyment under the

WESM RulesC

The forementioned prties shll %ind themsel$es with the

effect of su%mittin' ny dispute contro$ersy or clim

risin' out of or reltin' to WESM trnsction to which

they re or will %e prty for settlement %y r%itrtion in

ccordnce with the dispute resolution pro$isions pro$ided

herein.

(As amended *- DOE DC N$' 9:9:999 daed 3

Fe*!+a!- 9)

@.3.1.2 )or the $oidnce of dou%t the dispute resolution

procedures set out in this cluse @.3 pply to disputes

%etween two or more entities from nd within ech of the

cte'ories set out in cluses @.3.1.1 to e nd fs

pproprite.

@.3.1.3 !here dispute of ind set out in cluse @.3.1.1 rises

the prties concerned shll comply with the dispute

mn'ement protocol set out in this (hpter.(As amended

*- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

@.3.1.> !E"# #em%ers shll comply with the dispute resolution

process of the !E"# Rules %efore filin' forml complint

to the ER(.

@.3.1.? It is intended tht the dispute resolution re'ime set

out in or implemented in complince with the WESM

Rules nd descri%ed in detil in cluse @.3 should to the

eBtent possi%le<

e 'uided %y the o%ecti$es set out in cluse 1.2.2C% e simple 4uic nd ineBpensi$eC

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1@0









c Preser$e or enhnce the reltionship %etween the

prties to the disputeC

d Te ccount of the sills nd nowled'e tht re

re4uired for the rele$nt dispute or issueC

e *%ser$e the rules of lwC

f Plce emphsis on conflict $oidnceC nd

' Encour'e resolution of disputes without forml

le'l representtion or relince on le'l

procedures.

;'0' App$#nmen $/ D#sp+e Res$,+#$n Adm#n#s!a$! (DRA)

(As amended *- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

@.3.2.1 The PEM Board shll ppoint person to ct s the ispute

Resolution Administrator who shll h$e the followin'

responsi%ilities<

Administer nd ensure the effecti$e

implementtion nd opertion of the WESM dispute

resolution processC

% &etermine preliminry if the dispute flls under the

WESM dispute resolution processC

c &rft nd issue stndrd forms nd documents to

help eBpedite the resolution of disputesC

d )cilitte the ccredittion process of meditors

nd r%itrtorsC

e =pdte the list of ccredited meditors nd

r%itrtors pu%lished in the we%siteC

f Refer the cse to the meditor selected %y the

prties in dispute from the ccredited pool of

meditorsC nd

' Refer the cse to the r%itrtion pnel composed of

r%itrtors selected %y the prties in dispute from

the ccredited list of r%itrtors.

(As amended *- DOE DC N$' 998:9:999 daed 9

an+a!- 998 and /+!he! amended *- DOE DC N$' 9:

9:999 daed 3 Fe*!+a!- 9)




@.3.2.2 The ispute Resolution Administrator shll h$e the

followin' 4ulifictions<

At lest fi$e yers eBperience in lternti$e

dispute resolution prctice nd procedures which do

not in$ol$e liti'tionC

% At lest fi$e yers eBperience in the electricity

power industryC nd

c +ot %een employed %y ny electric power

industry prticipnt or compny or %ody relted

to or ssocited with WESM Participant t lest

one yer %efore ppointment.

The RA 'rees not to %e employed %y nd does not

ccept employment with ny electric power industry

prticipnt or compny or %ody relted to or ssocited

with WESM mem'er within one yer fter the person

ceses to %e ispute Resolution Administrator.


9an+a!- 998 and /+!he! amended *- DOE DC N$'

9:9:999 daed 3 Fe*!+a!- 9)

@.3.2.3 If the ispute Resolution Administrator does not in the

reson%le opinion of the PEM Board continue to meet the

re4uirements of [email protected] the PEM Board my

terminte the ppointment of the ispute Resolution

Administrator nd select replcement ispute

Resolution Administrator who meets the re4uirements set

out in cluse @.3.2.2.

;'0'0 D#sp+e Mana%emen P!$$"$,

(As amended *- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

@.3.3.1 Prior to the referrl of dispute to the RA dispute

mn'ement protocol &#P shll first %e implemented %y

ll prties co$ered %y the WESM dispute resolution

process.

The &#P is system to %e followed %y the disputin'

prties nd shll form prt of the ne'otition st'e of theWESM dispute resolution frmewor. The 'ol of the &#P




is to llow the prties to ne'otite throu'h desi'nted

&#P contct persons within period of forty fi$e >? dys

from the time forml notice is recei$ed %y the Market

Operator or WESM Mem'er .

)or this purpose the &#P of the Market Operator nd

ech WESM Mem'er shll pro$ide<

the &#P contct person who will %e the first point

of contct for the notifiction of disputesC

% the mode of ser$ice nd receipt of notice of dispute

nd other relted noticesC nd

c the mode of respondin' to re4uests for informtion

from other WESM Mem'er:s in reltion to

dispute.(As amended *- DOE DC N$' 9:9:

999 daed 3 Fe*!+a!- 9)

@.3.3.2 The Market Operator nd ll WESM Mem'ers shll su%mit

copy of its dispute mn'ement protocol to the RA which

shll %e posted %y the RA in the mret we%site.(As


Fe*!+a!- 9)

;'0'2 A""!ed#a#$n and Se,e"#$n $/ Med#a$!s and A!*#!a$!s

(Added as pe! DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

@.3.>.1 The ispute Resolution Administrator shll recommend to

the PEM Board the procedure for the ccredittion of the

meditors nd r%itrtors from certified lternti$e dispute

resolution A&R pro$iders.

The PEM Board shll ppro$e the process of ccredittion

nd shll therefter ccredit the RA:recommended

meditors nd r%itrtors %sed on the sid ccredittion

process.

The RA shll ensure tht n updted list of ccredited

meditors nd r%itrtors shll %e pu%lished in the WESM

we%site.(Added as pe! DOE DC N$' 9:9:999 daed

3 Fe*!+a!- 9)




@.3.>.2 In cse of filure of the ne'otition process nd upon

preliminry determintion %y the ispute Resolution

Administrator tht the dispute flls under the WESM

dispute resolution process the RA shll pro$ide the

prties with list of ccredited meditors to'ether with

their respecti$e eBpertise.(Added as pe! DOE DC N$' 9:

9:999 daed 3 Fe*!+a!- 9)

@.3.>.3 In the e$ent of filure of the medition process the RA

shll pro$ide the prties with list of ccredited r%itrtors

to'ether with their respecti$e eBpertise.(Added as pe! DOE

DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

;'0'3 D#sp+e Res$,+#$n P!$"ess

@.3.?.1 If dispute rises to which the dispute resolution

procedures under this cluse @.3 pply the prties to the

dispute shll ct in 'ood fith nd use ll reson%le

ende$ors to resol$e the dispute throu'h the procedures

nd lternti$e dispute mechnisms which re $il%le to

the prties throu'h their dispute mana*ement system.

@.3.?.2 If the prties to the dispute re un%le to resol$e the

dispute in ccordnce with cluse @.3.>.1 ny prty who

is in$ol$ed in the dispute cn refer the dispute to the

&ispute Resolution Administrtor in ccordnce with cluse

@.3.>.3.

@.3.?.3 If prty wishes to refer dispute to the &ispute

Resolution Administrtor under cluse @.3.>.2 tht prty

shll notify in writin' the &ispute Resolution Administrtor

nd ll of the other prties to the dispute of which the

prty is wre<

*f the eBistence of disputeC nd

% "ettin' out %rief history of the dispute includin'<

1 The nmes of the prties to the disputeC

2 The 'rounds of the disputeC nd

3 The results of ny pre$ious disputeresolution processes underten pursunt to

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1@>



the WESM Rules in respect of the disputeC

nd

> The listin' of ll unresol$ed issues nd

detil description thereof.

@.3.?.> If the ispute Resolution Administrator recei$es notice

of dispute under cluse @.3.>.3 the ispute Resolution

Administrator shll notify ll other rele$nt prties of the

dispute nd shll re4uest from those other prties their

own short written history of the dispute or ny rele$nt

ssocited written comments nd if the ispute Resolution

Administrator re4uests such informtion from prty to

the dispute tht informtion shll %e pro$ided %y tht

prty within ten %usiness dys.

@.3.?.? If mtter hs %een referred to the &ispute Resolution

Administrtor under cluse @.3.>.2 then %efore tin' ny

ction to resol$e the dispute the ispute Resolution

Administrator shll determine whether it is reson%le

tht the dispute is one to which this cluse @.3 pplies nd

shll d$ise the prties in writin' of its decision.

@.3.?.6 If the ispute Resolution Administrator is not reson%ly

stisfied tht the dispute is one to which cluse @.3.1.1

pplies the ispute Resolution Administrator shll issue

written order sttin' tht the clim is not dispute

co$ered under cluse @.3.1.1.(As amended *- DOE DC N$'

9:9:999 daed 3 Fe*!+a!- 9)

@.3.?.@ If the &ispute Resolution Administrtor is reson%ly

stisfied tht the dispute is one to which cluse @.3.1.1

pplies the &ispute Resolution Administrtor shll issue

written direction sttin' preliminrily tht the clim flls

under the WESM dispute resolution process.(As amended

*- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

;'0'8 D#sp+es A*$+ Pa-men

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1@?



If dispute rises %etween WESM mem'er nd the Market Operator in

respect of finl sttements or the supportin' dt pro$ided with them in

ccordnce with cluse 3.1>.? then

The dispute shll %e referred to the ispute Resolution

Administrator in ccordnce with cluse @.3.>.3 within twel$e

months of the dispute risin'C

% The ispute Resolution Administrator shll notify ll WESM

mem'er s who my %e ffected %y the resolution of the dispute

includin' %ut not limited to WESM mem'er s whose finl

sttement my %e mended s conse4uence of the resolution of

the disputeC nd

c Those pyments shll %e settled without preudice on the dte

specified for pyment in the rele$nt finl sttement

notwithstndin' dispute re'rdin' the mount.

;'0'; D#sp+es A//e"#n% F#na, Saemens

!here n mount stted to %e py%le in finl sttement is the

su%ect of dispute nd the resolution of the dispute ffects the mount

py%le then<

!hen the dispute is resol$ed in ccordnce with this cluse @.3

the #ret *pertor shll issue re$ised finl sttement to

replce ech finl sttement ffected %y the resolution of the

dispute in ccordnce with cluse 3.1>.?C nd

% The mount specified s py%le %y WESM mem'er in re$ised

/inal statement if ny shll %e pid %y the rele$nt WESM

mem'er whether or not tht WESM mem'er is prty to the

dispute on the dte specified in the re$ised /inal statement.

;'0'< Le%a, Rep!esena#$n

Relince on le'l representtion in dispute resolution proceedin's my

%e permitted whene$er the meditor ndDor r%itrtor pnel considers

it pproprite nd desir%le. (As amended *- DOE DC N$' 9:9:

999 daed 3 Fe*!+a!- 9)

;'0'= C$s $/ D#sp+e Res$,+#$n

=nless otherwise 'reed upon %y the prties the reson%le costs of the

proceedin's my %e llocted %y the meditor or r%itrtors forpyment %y one or more prties s prt of the 'reement or wrd s




my %e pplic%le. The followin' re considered costs of the

proceedin's<

Professionl fees of the meditor nd r%itrtorsC

% -e'l eBpensesC nd

c Administrti$e costs. (As amended *- DOE DC N$' 9:9:999

daed 3 Fe*!+a!- 9)

;'0'9E//e" $/ Res$,+#$n

@.3.10.1 A resolution of the dispute resolution panel is %indin' on

the prties to the dispute includin' without limittion

ny pro$ision of the resolution reltin' to the settlement

of pyment %y ny of the prties nd ny pro$ision s to

the performnce of ctions %y ny of the prties.

@.3.10.2 A re4uirement tht prty to the dispute settle pyment

under<

An 'reement reched %etween the prties to

dispute under cluse @.3.>.1C or

% A resolution of the dispute resolution pnel is n

o%li'tion under the WESM Rules to settle

pyments.

@.3.10.3 All persons referred to in cluses @.3.1.1 to e

ffected %y n 'reement reched durin' the medition

st'e or n wrd of the r%itrtion pnel shll comply

with the 'reement or wrd to the eBtent such

'reement or wrd pplies to them notwithstndin' tht

they were not prties to the dispute.

The RA shll prior to the medition or r%itrtion

process notify in writin' nd throu'h postin' in the

mret we%site ll persons who my %e ffected s

conse4uence of the resolution of the dispute. (As


Fe*!+a!- 9)

@.3.10.> If prty to dispute is not stisfied with the resolution of

the dispute resolution panel! the prty my file forml

complint to the ERC.;'0'Re"$!d#n% and P+*,#"a#$n

!holesle Electricity "pot #ret Rules s mended =nofficil (opy *cto%er 201> 1@@



@.3.11.1 !hene$er dispute is resol$ed the meditor or the

r%itrtion tri%unl s my %e pplic%le shll send

written detils of the resolution of the dispute to the

ispute Resolution Administrator the PEM Board the

&*E the ERC nd the Market Operator s soon s

prctic%le.(As amended *- DOE DC N$' 9:9:999

daed 3 Fe*!+a!- 9)

@.3.11.2 "u%ect to cluse ?.3 the detils nd results of ech

dispute which the meditor ndDor r%itrtion pnel

resol$es s the cse my %e eBcept confidentil

informtion shll %e pu'lised nd mde $il%le to

WESM Mem'er s s soon s prctic%le.(As amended *-

DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)

@.3.11.3 (lims for confidentility of informtion disclosed in the

dispute resolution process shll %e delt with in

ccordnce with the pro$isions reltin' to use of

informtion in cluse ?.3.

;'0'L#m#a#$n $/ L#a*#,#-

The ispute Resolution Administrator is not li%le for ny loss or dm'e

suffered or incurred %y Participant or ny other person s

conse4uence of ny ct or omission of those persons unless the ispute

Resolution Administrator cted with mlice mnifest imprtility %d

fith 'ross incompetence or 'ross ne'li'ence.(As amended *- DOE DC

N$' 9:9:999 daed 3 Fe*!+a!- 9)




CHAPTER <

RULE CHAN6E

<' SCOPE OF CHAPTER <

=pon the ctul commercil opertion of the spot market chn'es

mendments nd modifictions of the WESM Rules shll %e underten in

ccordnce with the pro$isions of this chpter.

This chpter sets out<

The composition nd mnner of ppointment of the Rule Can*eCommitteeC

% The procedure for effectin' chn'e to the WESM RulesC nd

c The procedure for ppro$l of chn'e to the WESM Rules.

<' RULE CHAN6E COMMITTEE

<'' Esa*,#shmen $/ R+,e Chan%e C$mm#ee

The PEM Board shll est%lish Rule Can*e Committee in consulttion

with industry prticipnts.

<'' C$mp$s##$n $/ R+,e Chan%e C$mm#ee

.2.2.1 The Rule Can*e Committee shll %e comprised in

mnner tht is consistent with the composition of the PEM

Board eBcept tht the persons representin' ech of the

sectors nd other 'roups on the Rule Can*e Committee

shll not %e the sme persons s those who re irectors

on the PEM Board .

.2.2.2 The principles pplic%le to the composition nd opertion

of the PEM Board s set out in cluse 1.>.2 pply lso to

the composition of the Rule Can*e Committee. (As

amended *- DOE DC N$' 993::99 daed

N$5em*e! 993)

<''0 Mem*e!sh#p !e>+#!emens : PEM B$a!d

Ech mem%er of the Rule Can*e Committee shll<










e ppointed %y the PEM Board in consulttion with industry

prticipntsC nd

% )or the sectorl mem%er or other 'roups not %e mem%er of the

PEM Board .

(As amended *- DOE DC N$' 998::990 daed 9= N$5em*e!

998)

<''2 Te!m#na#$n

The PEM Board my terminte the ppointment of ny person ppointed

to the Rule Can*e Committee t ny time if<

The person %ecomes insol$ent or under dministrtionC

% The person %ecomes of unsound mind or person whose person or

estte is li%le to %e delt with in ny wy under lw reltin' to

mentl helthC

c The person ceses to represent the sectorl 'roup or other

'roups or the compny to which he hs %een ppointedC or

(As amended *- DOE DC N$' 998::990 daed 9= N$5em*e!

998)

d The person fils to dischr'e the o%li'tions of their office.

<''3 App$#nmen e!m#na#$n

If the PEM Board decides to terminte person;s ppointment in

ccordnce with cluse .2.> the PEM Board shll ppoint nother

representti$e from the sme mem%ership cte'ory to fill tht person;s

plce on the Rule Can*e Committee within 20 %usiness dys.

<''8 Res#%na#$n

A person my resi'n from the Rule Can*e Committee %y 'i$in' notice in

writin' to the PEM Board .

<''; C$nd+" $/ mee#n%s

The Rule Can*e Committee shll meet nd re'ulte its meetin's nd

conduct its %usiness in mnner which does not conflict with the WESM

Rules.

<''< Ad5#"e and ass#san"e

The Rule Can*e Committee my o%tin such d$ice or other ssistnce

s it thins pproprite includin' without limittion d$ice or

ssistnce from persons with eBperience rele$nt to ny chn'e to the












WESM Rules which the Rule Can*e Committee is considerin' nd from

WESM mem'er s who re liely to %e ffected %y ny chn'e.

<''= R+,es Chan%e C,ass#/#"a#$n and P!$"ed+!es

(Added as pe! DOE DC N$' 993::99 daed N$5em*e! 993)

"u%ect to cluse .6.>.2 the Rule Can*e Committee will

recommend for ppro$l of the PEM Board system of

clssifiction of chn'es to the WESM Rules.

% "u%ect to ppro$l %y the PEM Board the Rule Can*e

Committee will de$elop nd pu'lis detiled 'uidelines nd

procedures to %e employed in the considertion ppro$l

pu%liction nd effecti$ity of ny proposed chn'e to the WESM

Rules. These 'uidelines nd procedures will s fr s prctic%le

%e consistent with the pro$isions of this chpter pro$ided

howe$er tht the (ommittee my est%lish procedures time

periods nd mnner of pu%liction nd effecti$ity other thn s

stted in this chpter dependin' on the clssifiction of the

proposed chn'e.

<'0 REFERRAL OF MATTERS TO THE RULE CHAN6E COMMITTEE<'0' R+,e "han%e p!$p$sa,s

The Market Operator the 7o$ernment or ny WESM mem'er nd other

interested prties my su%mit proposls for chn'es to the WESM Rules

to the PEM Board .

<'0' F$!m $/ s+*m#ss#$n

Proposls for chn'e or chn'es to the WESM Rules shll<

e in writin' nd ddressed to the PEM Board C

% Include the nme nd ddress of the pplicntC

c &emonstrte tht the chn'e to the WESM Rules is<

1 (onsistent with the WESM o%ecti$esC

2 )esi%leC

3 +ot unreson%ly costly to implementC nd

> A more pproprite or %etter mens of chie$in' the

criteri set out in cluses .3.2 c 1 to c 3 where the

effect of the chn'e to the WESM Rules will %e to replce

n eBistin' pro$ision of the WESM RulesC




d Include %rief sttement of the resons why chn'e to the

WESM Rules is necessry or desir%leC nd

e (ontin sufficient informtion to permit proper considertion

%y the Rule Can*e Committee of those resons includin' the

pu%lic %enefit if ny of min' the chn'e to the WESM Rules.

<'0'0 PEM B$a!d $*,#%a#$ns

The PEM Board shll<

/eep re'ister of ll proposls for chn'e in the WESM Rules

su%mitted to itC nd

% 7i$e due course to the proposl within ? %usiness dys from

receipt thereof.

<'2 CONSIDERATION OF PROPOSED RULES CHAN6E BY THE RULES CHAN6E

COMMITTEE

<'2' Assessmen $/ p!$p$sed R+,e "han%e

!ithin 10 'usiness days from the referrl from the PEM Board the Rules

Can*e Committee shll ssess whether the proposed chn'e to the

WESM Rules is<

(onsistent with the WESM o%ecti$esC

% )esi%leC

c +ot unreson%ly costly to implementC nd

d A more pproprite or %etter mens of chie$in' the criteri set

out in cluses .>.1 to c where the effect of the chn'e to

the WESM Rules will %e to replce n eBistin' rule.

<'2' D#s"!e#$ns 1hen assessmen p!$p$sed R+,e "han%e

In considerin' whether proposed rule chn'e stisfies the criteri

which re set out in cluse .>.1 the Rules Can*e Committee my<

Te into ccount ny informtion nd documents which the

Rules Can*e Committee reson%ly considers to %e rele$nt to

its considertion of the proposed chn'e to the WESM RulesC

% (onsult with such persons s the Rules Can*e Committee

reson%ly considers will %e liely to %e ffected %y the proposed

chn'e to the WESM Rules




c "ee such informtion nd $iews from ny person in reltion to

the proposed chn'e to the WESM Rules s my %e prctic%le

under the circumstncesC nd

d Refer the proposed chn'e to the WESM Rules to worin'

'roup comprisin' of persons h$in' such eBpertise s the

Rules Can*e Committee in its %solute discretion considers to

%e reson%le in ll the circumstnces for the purpose of

dele'tin' to tht worin' 'roup ny o%li'tion or ts of the

Rules Can*e Committee set out in cluses .>.2.>.> nd .>.6

other thn this cluse .>.2 d.

<'2'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a

If the Rules Can*e Committee concludes tht proposed chn'e to the

WESM Rules does not stisfy the criteri set out in cluse .>.1 the

Rules Can*e Committee shll notify the proponent nd the PEM Board

within 10 %usiness dys fter receipt of proposl of its non:doption of

the proposl includin' the reson for its decision.

<'2'2 N$#/#"a#$n /$,,$1#n% sa#s/-#n% "!#e!#a

If the Rules Can*e Committee concludes tht proposed chn'e to the

WESM Rules stisfies the criteri which re set out in cluse .>.1 the

Rules Can*e Committee shll<

+otify the PEM Board ll WESM mem'er s nd ll other interested

prties of the proposed chn'e to the WESM RulesC nd

% In$ite such prties to me written su%missions re'rdin' the

proposed chn'e to the WESM Rules within the neBt 30 'usiness

days fter receipt of proposed rule chn'e.

<'2'3 S+*m#ss#$ns !e%a!d#n% p!$p$sed R+,e "han%e

To %e $lidly considered written su%mission mde in response to

proposed chn'e to the WESM Rules in$ited under cluse .>.> % must

%e recei$ed %y the Rules Can*e Committee no lter thn 30 'usiness

days fter the notice referred to in cluse .>.> is 'i$en.

<'2'8 C$ns#de!a#$n $/ s+*m#ss#$ns

The Rules Can*e Committee shll consider ll $lid su%missions which it

recei$es within 60 'usiness days from the dte the notifiction is 'i$enunder cluse .>.>.




c The OE nd the ERC!

within 10 'usiness days of rechin' tht conclusion nd

shll pro$ide resons for its decision.

.?.3.2 If the PEM Board determines tht the processes nd

procedures set out in cluse .> h$e not %een duly

followed the PEM Board shll<

Refer the proposed chn'e to the !E"# Rules %c

to the Rules (hn'e (ommittee so tht the

procedurl error cn %e rectified within the erliest

possi%le time in ccordnce with cluse .>C nd

% Te such steps s it considers reson%ly necessry

nd pproprite in ll the circumstnces to ensure

tht the Rules (hn'e (ommittee dheres to the

processes nd procedures set out in cluse .> in

the future.

<'3'2 App!$5#n% and s+*m##n% p!$p$sed R+,e "han%e /$! app!$5a,


If the PEM Board concludes tht the proposed chn'e to the WESM Rules

stisfies the criteri which re set out in cluse .>.1 nd tht the

processes nd procedures set out in cluse .> h$e %een duly followed

the PEM Board

shll su%mit the proposed chn'e to the WESM Rules to the &*E

for ppro$l if the proposed chn'e re4uires ppro$l %y the OE

under the clssifiction system ppro$ed pursunt to cluse

.6.>.2C or

% shll cuse pu%liction of the ppro$ed rule chn'e if the

proposed rule chn'e re4uires ppro$l of the PEM Board only.

The ppro$ed rule chn'e will %ecome effecti$e fter its

pu%liction on such dte nd for such period s the PEM Board

determines.

<'8 APPRO7AL OF PROPOSED RULE CHAN6ES BY THE DOE


<'8' DOE assessmen $/ p!$p$sed R+,e "han%e








If the PEM Board su%mits proposed chn'e to the WESM Rules to the

OE! for ppro$l in ccordnce with cluse .>.> the OE shll ssess

whether the proposed chn'e to the WESM Rules stisfies the criteri

which re set out in cluse .>.1.

<'8' DOE d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e

In considerin' whether proposed chn'e to the WESM Rules stisfies

the criteri which re set out in cluse .>.1 the OE my<

Te into ccount ny informtion nd documents which

the &*E reson%ly considers to %e rele$nt to its considertion

of the proposed chn'e to the WESM RulesC

% (onsult with such persons s the OE reson%ly considers will

%e liely to %e ffected %y the proposed chn'e to the WESM

RulesC nd

c "ee such informtion nd $iews from ny person in reltion to

the proposed chn'e to the WESM Rules s my %e prctic%le in

the circumstnces.

<'8'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a

If the OE concludes tht proposed chn'e to the WESM Rules does not

stisfy the criteri which re set out in cluse .>.1 the OE shll

notify<

The PEM Board C

% The person who proposed the chn'e to the WESM RulesC nd

% Any prty who mde written su%missions to the Rules Can*e

Committee under cluse .>.>

within 10 'usiness days of rechin' tht conclusion nd shll pro$ide

resons for its decision.

<'8'2 App!$5a, $/ p!$p$sed R+,e "han%e

.6.>.1 If the &*E concludes tht proposed chn'e to the WESM

Rules is consistent with the Act nd the pu%lic interest nd

stisfies the criteri which re set out in cluse .>.1 it

shll ppro$e the mendment nd cuse its pu%liction.

The chn'e to the WESM Rules ppro$ed %y the &*E will

te effect within fifteen dys from its pu%liction or on




such lter dte s the &*E determines. (As amended *-

DOE DC N$' 993::99 daed N$5em*e! 993)

.6.>.2 =pon recommendtion of the Rules (hn'e (ommittee

the PE# ord shll rtify the clssifiction system of rule

chn'e proposls de$eloped %y the (ommittee pursunt to

cluse .2.9 tht will delinete proposls tht cn %e

implemented upon PE# ords ppro$l nd proposls

tht will re4uire &*Es ppro$l prior to implementtion.


N$5em*e! 993 and /+!he! amended *- DOE DC N$'

99:90:9992 daed Ma!"h 99)

All !E"# Rules chn'es implemented prior to &*Es

ppro$l shll %e processed nd su%mitted to the &*E for

ppro$lC otherwise the effecti$ity of such !E"# Rules

chn'es shll %e no more thn siB 6 months. (Added as

pe! DOE DC N$' 99:90:9992 daed Ma!"h 99)

E$ery yer such clssifictions shll %e re$iewed nd

mended if necessry.(Added as pe! DOE DC N$' 99:

90:9992 daed Ma!"h 99)

This clssifiction shll %e ppro$ed %y the &*E.

<'8'3 Rep$! *- he R+,es Chan%e C$mm#ee

The Rules Can*e Committee nd the PEM Board shll de$elop nd me

$il%le to WESM mem'er s periodic report which sets out<

All WESM Rule chn'e proposls which h$e %een mde in the

pre$ious siB:month periodC

% The pro'ress of those WESM Rule chn'e proposls in ccordnce

with the procedures prescri%ed in this chpter C

c The reson for ny delys in reltion to the pro'ress of those

WESM Rule chn'e proposls nd ny ction the Rules Can*e

Committee the PEM Board or the OE hs ten to o$ercome

those delysC nd

d Any other mtter which the Rules Can*e Committee the PEM

Board or the OE reson%ly considers to %e rele$nt to the

pro'ress of WESM Rule chn'e proposls includin' %ut not














limited to ny policies de$eloped %y the Rules Can*e

Committee the PEM Board or the OE in reltion to<

1 The wy in which it intends to del with ny procedure

specified in this chpter C nd

2 The fcts mtters or circumstnces which the Rule

Can*e Committee the PEM Board or the OE my te

into ccount in min' decision nd otherwise

dischr'in' its functions nd o%li'tions under this chpter

Pro$ided tht nothin' in this cluse .6.? is to %e ten

to limit the eBercise %y the Rules Can*e Committee the

PEM Board or the OE s the cse my %e of its

discretion under this chpter .

<'; RULES CHAN6E COMMITTEE INDEMNITY

The Rules Can*e Committee nd its mem%ers nd ny worin' 'roup to whom

ny ts or o%li'tion is dele'ted under cluse .> re not to %e personlly

li%le in ny wy for ny chn'e which is mde to the WESM Rules.




CHAPTER =

INTERPRETATION

=' 6ENERAL

In the WESM Rules unless the conteBt otherwise re4uires<

,edin's re for con$enience only nd do not ffect the interprettion

of the WESM RulesC

% !ords importin' the sin'ulr include the plurl nd $ice $ersC

c !ords importin' 'ender include ny 'enderCd !here itlici5ed word or phrse hs the definition 'i$en to tht word

or phrse in chpter 10C

e *ther prts of speech nd 'rmmticl forms of word or phrse

defined in the WESM Rules h$e correspondin' menin'C

f An eBpression importin' nturl person includes ny le'l entity

compny prtnership oint $enture ssocition corportion or other

%ody corporte nd ny 'o$ernment uthorityC

' A reference to ny thin' includin' %ut not limited to ny ri'ht

includes prt of tht thin'C

h A reference to cluse pr'rph prt nneBure eBhi%it or schedule

is reference to cluse nd pr'rph nd prt of nd n nneBure

eBhi%it nd schedule to the WESM Rules nd reference to the WESM

Rules includes ny nneBure eBhi%it nd scheduleC

i A reference to sttute re'ultion proclmtion order in council

ordinnce or %y:lw includes ll sttutes re'ultions proclmtions

orders in council ordinnces or %y:lws mendin' consolidtin' or

replcin' it nd reference to sttute includes ll re'ultions

proclmtions orders in council ordinnces nd %y:lws issued under

tht sttuteC

A reference to the WESM Rules or to document or pro$ision of

document includes n mendment or supplement to or replcement or

no$tion of the WESM Rules or tht document or tht pro$ision of tht

documentC




A reference to person includes tht person;s eBecutors dministrtors

successors su%stitutes includin' without limittion persons tin' %y

no$tion nd permitted ssi'neesC

I A reference to %ody other thn WESM mem'er or the Market

Operator includin' without limittion n institute ssocition or

uthority whether sttutory or not<

1 !hich ceses to eBistC or

2 !hose powers or functions re trnsferred to nother %odyis

reference to the %ody which replces it or which su%stntilly

succeeds to its powers or functionsC nd

m A reference in the conteBt of ny pro$ision of the WESM Rules to

8representti$e8 of ny person is reference to ny director officer or

employee of tht person or ny 'ent consultnt or contrctor

ppointed or en''ed %y tht person for purposes connected with the

su%ect mtter of the rele$nt pro$ision of the WESM Rules.

=' TIME AND DATES

9.2.1.1 =nless the conteBt otherwise re4uires reference in the WESM

Rules< To clendr dy such s 1 Qnury or dy of the wee

such s "undy is to the dy which %e'ins t 00<00 hours

on tht dyC

% To wee is to the period from 00<00 hours on dy until

00<00 hours on the se$enth dy followin'C

c To month or num%er of months or clendr month is

to the period from 00<00 hours on dy in one month until

00<00 hours on the sme dy of the month which follows

or follows %y the rele$nt num%er of months or if there

is no such dy in tht month 00<00 hours on the first dy

of the neBt followin' monthC

d To yer is to the period from 00<00 hours on dy in one

yer until 00<00 hours on the sme dy or where the dy

in the first yer ws 29 )e%rury on 1 #rch in the

followin' yer nd reference to clendr yer such s199@ is to %e construed ccordin'lyC nd




e To times of the dy re to Philippines stndrd time.

9.2.1.2 =nless the conteBt otherwise re4uires period of time<

!hich dtes from 'i$en dy or the dy of n ct or e$ent

is to %e clculted eBclusi$e of tht dyC or

% !hich commences on 'i$en dy or the dy of n ct or

e$ent is to %e clculted inclusi$e of tht dy.

9.2.1.3 !here under ny pro$ision of the WESM Rules person is re4uired

to pro$ide ny informtion %y certin dte or time the rele$nt

pro$ision is to %e ten to include re4uirement tht tht the

rele$nt informtion shll %e 'i$en s soon s possi%le nd no

lter thn the dte or time 'i$en.

='0 ASSI6NMENT

=nless otherwise eBpressly permitted %y the WESM Rules WESM mem'er shll

not ssi'n or trnsfer nd shll not purport to ssi'n or trnsfer ny of its ri'hts

or o%li'tions under the WESM Rules.

='2 WAI7ER

A person does not wi$e its ri'hts powers nd discretions under the WESMRules %y<

)ilin' to eBercise its ri'htsC

% *nly eBercisin' prt of its ri'htsC or

c &elyin' the eBercise of its ri'hts.

='3 PAYMENT

='3' Meh$d $/ pa-men

=nless otherwise pro$ided in the WESM Rules ny pyment to %e mde

under the WESM Rules shll %e mde either %y the E)T fcility or in csh

or %y drft or chec drwn %y %n s defined in le'isltion

pplic%le to the conduct of %nin' cti$ities in the Philippines.

='3' Ine!es !aes

=nless the conteBt otherwise re4uires reference in the WESM Rules to

n interest rte pu%lished in respect of specified dy shll if tht

interest rte is not pu'lised! uthori5ed or otherwise $il%le in




respect of tht dy %e ten to %e the rele$nt interest rte pu'lised

immeditely prior to tht dyC nd if tht interest rte is suspended

modified discontinued or its method of clcultion su%stntilly lters

or if the rele$nt pu%liction ceses to pu%lish tht interest rte for

more thn se$en consecuti$e dys the Market Operator shll pro$ide

su%stitute rte of interest tht in the Market Operator ;s reson%le

opinion is the nerest e4ui$lent to the interest rte nd tht su%stitute

rte of interest shll %e ten to %e the pplic%le interest rte.

='8 NOTICES

='8' P!$pe!,- %#5#n% n$#"es

A notice is properly 'i$en under the WESM Rules to person if<

It is personlly ser$edC

% A letter continin' the notice is sent %y re'istered mil to the

person t n ddress if ny supplied %y the person to the sender

for ser$ice of notices or where the person is WESM mem'er n

ddress shown for tht person in the re'ister of WESM mem'er s

mintined %y the Market Operator or where the ddressee is

the Market Operator the re'istered office of the MarketOperator

c It is sent to the person %y fcsimile or electronic mil to

num%er or reference which corresponds with the ddress referred

to in cluse 9.6.1% or which is supplied %y the person to the

Market Operator for ser$ice of notices nd if sent %y electronic

mil the person sendin' the notice lso sends copy of the

notice %y letter or fcsimile to the person on the sme dyC or

d The person ctully recei$es the notice %y ny other mens.

='8' N$#"es !eaed as *e#n% %#5en

A notice is treted s %ein' 'i$en to person %y the sender<

!here sent %y re'istered mil to n ddress in the centrl

%usiness district of re'ion in the Philippines on the second

'usiness day fter the dy on which it is postedC

% !here sent %y post in ccordnce with cluse 9.6.1% to ny

other ddress on the third 'usiness day fter the dy on which itis postedC




c !here sent %y fcsimile in ccordnce with cluse 9.6.1c nd

complete nd correct trnsmission report is recei$ed<

1 !here the notice is of the type in reltion to which the

ddressee is o%li'ed under the WESM Rules to monitor the

receipt %y fcsimile outside of s well s durin' %usiness

hours on the dy of trnsmissionC nd

2 In ll other cses on the dy of trnsmission if 'usiness

day or if the trnsmission is on dy which is not

'usiness day or is fter >.00 pm ddressee;s time t 9.00

m on the followin' 'usiness day

d !here sent %y electronic mil in ccordnce with cluse 9.6.1

c<

1 !here the notice is of type in reltion to which the

ddressee is o%li'ed under the WESM Rules to monitor

receipt %y electronic mil outside of s well s durin'

%usiness hours on the dy when the notice is recorded

s h$in' %een first recei$ed t the electronic mil

destintionC nd

2 In ll other cses on the dy when the notice is recorded

s h$in' %een first recei$ed t the electronic mil

destintion if

Business day or if tht time is fter >.00 pm ddressee;s

time or the dy is not 'usiness day! t 9.00 m on the

followin' 'usiness day or

e In ny other cse when the person ctully recei$es the notice.

='8'0 F$!m $/ n$#"e

Any notice to or %y person under the WESM Rules<

"hll %e in le'i%le writin' nd in En'lishC nd

% !here the sender is compny shll %e si'ned %y responsi%le

employee or officer thereof or under the corporte or officil sel

of the sender eBcept where the notice is sent %y electronic

mil.

='8'2 Ca,"+,a#n% a spe"#/#ed pe!#$d /$! n$#"es

!here specified period includin' without limittion prticulrnum%er of dys is pro$ided for purposes of clcultin' the num%er of




dys indicted in the period the first dy shll %e eBcluded while the

lst dy is included in sid computtion.

='8'3 6ene!a,

In this cluse 9.6 reference to<

An ddressee includes reference to n ddressee;s officers

'ents or employees or ny person reson%ly %elie$ed %y the

sender to %e n officer 'ent or employee of the ddresseeC nd

% A notice includes ny re4uest demnd consent or ppro$l or

other communiction to or %y person under the WESM Rules.

='; RETENTION OF RECORDS AND DOCUMENTS

=nless otherwise specified in the WESM Rules ll records nd documents

prepred for or in connection with the WESM Rules shll %e retined for

period of t lest se$en yers.

='< SE7ERABILITY

Ech prt or ll of pro$ision of the WESM Rules<

!ill %e construed so s to %e $lid nd enforce%le to the

'retest eBtent possi%leC nd

% #y %e so construed or deleted if necessry re'rdless of the

effect which tht my h$e on the pro$ision in 4uestion or ny

other pro$ision or the WESM Rules s whole.




CHAPTER 9

TRANSITORY PRO7ISIONS

9' PURPOSE AND SCOPE

9''P+!p$se

To pro$ide 'uidelines for the trnsition of the electric power industry

from the eBistin' structure to the new structure s specified in the ActC

9''S"$pe $/ App,#"a#$n

This (hpter pplies to the followin'<

Market Operator % System operator

c $eneration Companies

d Ancillary Services Provider!

e istri'ution tilities

f Suppliers

' Meterin* Services Providers

h ul =sersDEnd:usersC nd

i *ther similr entities uthori5ed %y the ERC to %ecome mem%ers

of the WESM.

9' MARKET TRANSITION

9''Esa*,#shmen $/ he Wh$,esa,e E,e"!#"#- Sp$ ma!.e

10.2.1.1 !ithin one 1 yer from the effecti$ity of the Act the

&*E shll est%lish WESM composed of the WESM

participants. The mret shll pro$ide the mechnism for

identifyin' nd settin' the price of ctul $ritions from

the 4untities trnscted under contrcts %etween sellers

nd purchsers of electricity.

10.2.1.2 The OE shll constitute the Autonomous $roup Market

Operator("A$MO; initilly under the dministrti$e

super$ision of the %RA&SCO.

9''The Ma!.e Ope!a$!




10.2.2.1 The !E"# shll %e primrily operted %y #ret

*pertor su%ect to the o$erll super$ision of the PE#

ord nd in ccordnce with the !E"# Rules.

10.2.2.2 The A7#* shll underte the preprtory wor nd

initil opertion of the !E"# for period of twel$e

months from the spot mret commencement dte nd

for the $oidnce of dou%t durin' tht initil twel$e:

month period ll references in the WESM Rules to 8Market

Operator 8 shll %e construed to men "A$MO;.

10.2.2.3 +ot lter thn one 1 yer fter the implementtion of

the WESM n Independent Market Operator("0MO;) shll

%e formed nd the functions ssets nd li%ilities of the

A$MO shll %e trnsferred to such entity with the oint

endorsement of the OE nd the electric power industry

prticipnts. Therefter the dministrti$e super$ision of

the %RA&SCO o$er such entity shll cese.

9''0The 6$5e!n#n% B$a!d

10.2.3.1 The !E"# shll %e 'o$erned nd its powers nd functions

eBercised %y 'o$ernin' %ody with e4uit%le

representtion from electric power industry prticipnts.

The representti$es of the A7#* 'o$ernin' %ody shll %e

selected in ccordnce with the !E"# Rules. The &*E

"ecretry shll chir the A7#* 'o$ernin' %ord.

10.2.3.2 The A7#* 'o$ernin' %ord shll 'o$ern the opertion of

the A7#* until the formtion or selection of n 0MO. =ntil

such time ll references in the WESM Rules to 8PEM Board ;

shll %e construed to men 8 A$MO 'o$ernin' %ordO.

9''2Mem*e!sh#p $ he WESM

10.2.>.1 "u%ect to complince with the mem%ership criteri ll

7enertin' (ompnies &istri%ution =tilities "uppliers

ul consumersDEnd:users nd *ther "imilr Entities

uthori5ed %y the ER( shll %e eli'i%le to %ecome

mem%ers of the !E"#. The ER( my uthori5e other

similr entities to %ecome eli'i%le s mem%ers eitherdirectly or indirectly of the !E"#.




10.2.>.2 A $eneration Company shll comply with the mem%ership

criteri s prescri%ed under the WESM Rules s set forth in

Rule 9 of the IRR of the Act on WESM.

10.2.>.3 Pursunt to "ection 9 e of the Act $eneration

Company with fcilities connected to 7rid shll me

informtion $il%le to the Market Operator to en%le

the Market Operator to implement the pproprite

dispatc schedulin' nd shll comply with the sid

schedulin' in ccordnce with the WESM Rules. A

$eneration Company shll liewise me informtion

$il%le to the System operator to fcilitte centrl

disptch %y the System operator .

10.2.>.> )or the first fi$e ? yers from the est%lishment of the

WESM! istri'ution tilities shll source t lest ten

percent 10H of its totl demnd from the spot market.

)or this purpose ech istri'ution tility my su%mit

demand 'id correspondin' to lod which hs %een

certified s disptch%le in ccordnce with the $rid

Code nd istri'ution Code.

10.2.>.? &EA my in eBchn'e for de4ute security nd

'urntee fee ct s 'urntor for purchses of

electricity in the WESM %y ny Electric Cooperative or

smll istri'ution tility to support their credit stndin'

consistent with the pro$ision hereof.

9''3 P!#"e Dee!m#na#$n Meh$d$,$%-

The price determination metodolo*y contined in the WESM Rules shll

%e su%ect to the ppro$l of ERC.

9'0 PRO7ISIONS FOR THE INTERIM WESM

The followin' pro$isions shll %e pplic%le durin' the opertion of the interim

WESM.

9'0' Sp$ ma!.e T!ad#n%

10.3.1.1 Initilly only ener*y shll %e trded upon commencement

of the interim WESM.




10.3.1.2 The composition of the market net#ork model my %e

limited in scope durin' the opertion of the interim WESM.

9'0'An"#,,a!- Se!5#"es


de4ute ncillry ser$ices for ech re'ion either<

y competiti$e tenderin' process dministered %y

the Market Operator where%y num%er of

Ancillary Services Pro$iders cn pro$ide prticulr

cte'ory of ancillary services or

% y ne'otitin' contrcts directly with n Ancillary

Services Provider who is irect WESM mem'er

where only one Ancillary Services Provider cn

pro$ide the re4uired ancillary servicesC or

c !here pplic%le %y competiti$e spot

market trdin' in ccordnce with cluse 3.3.>.

10.3.2.2 The reserve+tradin* amount shll %e %sed on the cost of

reserves contrcted for %y the System operator .

10.3.2.3 !hen pplic%le nd reson%ly fesi%le the Market

Operator shll est%lish spot market mechnism for

competiti$e spot market trdin' in the purchse of certin

reserve cate*ories. The OE shll declre the

commencement of the spot market ancillary services.

9'0'0Ma!.e D#spa"h Op#m#a#$n M$de,

The interim market dispatc model is of lesser scope thn the finl

market optimi,ation model nd determines dispatc tr'ets for the end

of tradin* interval reserve lloctions for the tradin* interval

ssocited ener*y prices t ll tradin* nodes in the po#er system nd

reserve prices for ll reserve re*ions.

9'0'2 Mee!#n%

10.3.>.1 The instlltion nd mintennce of meterin* installations

shll initilly %e crried out %y the %RA&SCO.

10.3.>.2 A %radin* Participant who is direct WESM mem'er shll<

Arrn'e with the %RA&SCO for the pro$ision

instlltion nd mintennce of ech meterin*




installation for which tht %radin* Participant;s

finncilly responsi%leC

% Enter into n 'reement with the %RA&SCO for the

pro$ision instlltion nd mintennce of the

rele$nt meterin* installation %y the %RA&SCO nd

c Pro$ide the Market Operator with the rele$nt

detils of the meterin' instlltion in ccordnce

with AppendiB 2 within ten 10 'usiness days of

enterin' into n 'reement with the %RA&SCO

under cluse >.3.> %.

10.3.>.3#eterin' Instlltion (omponents

The followin' re4uirements my %e relBed durin' the

opertion of the interim !E"#<

)cilities to en%le meterin* data to %e trnsmitted

from the meterin* installation to the meterin*

data'ase nd %e cp%le of communiction with

the meterin* data'aseC nd

% Ade4ute communiction fcility tht will en%le

the Market Operator to o%tin remote ccess to the

meterin* data from the meterin* data'ase.

9'2 ACTIONS TO BE TAKEN PRIOR TO SPOT MARKET COMMENCEMENT DATE

9'2' S#%n#/#"an 7a!#a#$ns

The Market Operator shll in consulttion with WESM Participants

de$elop 'uidelines s to wht constitutes si'nificnt $rition in nd

%etween tradin* intervals su%ect to the ppro$l of the PEM Board .

9'2'Ma!.e Ope!a$! Pe!/$!man"e

10.>.2.1. Prior to the spot market commencement date! the

Market Operator shll de$elop performnce indictors

which pro$ide n indiction of nd monitor the Market

Operator ;s performnce under the WESM Rules in respect

of<

The Market Operator ;s responsi%ilities under the

WESM RulesC nd




% The chie$ement of the WESM o%ecti$es s defined

in cluse 1.2.?.

10.>.2.2. The performnce indictors de$eloped under cluse

10.>.2.1 shll %e ppro$ed %y the PEM Board .

9'2'0F$!m+,a#$n $/ PEM B$a!d B-:,a1

Prior to the spot market commencement date nd if pplic%le su%ect

lwys to ny rele$nt lw or re'ultion of the Philippines in reltion to

processes nd procedures of corporte entities or the formultion of

corporte constitutions the OE shll formulte the %y:lw of the PEM

Board which shll set out mon' others the followin'<

(onduct of meetin's includin' %ut not limited to the fre4uency

of meetin's the 4uorum re4uired to conduct meetin' the

mnner in which meetin' my %e conducted nd the loction of

meetin'sC

% Appointments on the PEM Board C

c Tenure of irectors ppointed to the PEM Board C

d Allownce if ny to %e mde to irectors ppointed to the PEM

Board C

e &isclosure of informtion %y nd %etween irectors ppointed to

the PEM Board C

f &etiled procedures for $otin'C

' )ormultion of %ud'et for the PEM Board C

h Appointment of (hief EBecuti$e *fficer or 7enerl #n'er to

conduct the dily %usiness of the PEM Board if necessry nd

ppropriteC

i Procedure to %e followed %y the PEM Board for mendin' its own

%y:lwC nd

Any other mtter considered rele$nt %y the OE.

9'2'2Dee!m#na#$n $/ Ma!.e Ne1$!. M$de,

10.>.>.1. Prior to the spot market commencement dte the Market

Operator in consulttion with WESM Participants nd the

System operator shll<

In ccordnce with cluses 3.2.1.2 nd 3.2.1.3

recommend the composition of the market net#orkmodelC




% "ee ppro$l of the market net#ork model from

the PEM Board C nd Pu'lis detils of the market

net#ork model once ppro$ed.

9'2'3Dee!m#na#$n $/ Ma!.e T!ad#n% N$des

10.>.?.1. Prior to the spot market commencement d te! the

Market Operator shll in ccordnce with cluses

3.2.2.1 3.2.2.2 nd 3.2.2.3 determine the identity of

ech market tradin* node for trdin' nd settlement

purposes.

10.>.?.2. Prior to the spot market commencement date the

Market Operator shll pu'lis re'ister of market tradin*

nodes nd of the %radin* Participant responsi%le for ech.

9'2'8 Dee!m#na#$n $/ C+s$me! P!#"#n% @$nes

10.>.6.1. !hen (ustomer Pricin' ones re dopted nd prior to

the spot mret commencement dte the #ret

*pertor shll< (As amended *- DOE DC N$' 992:9;:99<

daed ; +,- 992)

Prtition the set of customer nodes into

pricin* ,ones for Customers! to %e clled

customer pricin* ,onesC

% &etermine formul to clculte e3 ante ,onal

ener*y prices nd e3 post ,onal ener*y prices s the

pproprite tod:wei'hted $er'es of nodal

ener*y prices for nodes within ech customer

pricin* ,one

c &etermine the nture of informtion to %e

pu'lised for ech customer pricin* ,one

d "u%mit to the PEM Board for ppro$l rele$nt

detils of ll customer pricin* ,ones lloction of

market tradin* nodes to ech customer pricin*

,one nd price clcultion formulC nd

e After o%tinin' the ppro$l of the PEM Board

under cluse 10.>.6.1d pu'lis the followin'<

1 Customer pricin* ,onesC nd2 Alloction of market tradin* nodes.









10.>.6.2. The PEM Board shll de$elop nd therefter shll

pu'lis *uidelines re'rdin'<

The lloction of mret trdin' nodes to customer

pricin' 5onesC nd

% Any other mtter rele$nt to pricin* ,ones.

9'2';An"#,,a!- Se!5#"es

9'2';'' An"#,,a!- Se!5#"es A%!eemens

10.>[email protected] The System operator shll prior to the spot

market commencement date nd in

consulttion with the Market Operator

de$elop nd pu'lis procedures in reltion

to ny competiti$e tenderin' process for

ancillary services or ny other procedure

which the System operator plns to de$elop

for the pro$ision of ancillary services.

10.>[email protected]. Prior to the spot market commencement

dte the System operator shll<

In consulttion with the Market

Operator nd WESM Participants

de$elop<

1 Ancillary service

rrn'ements nd interim

market contrct re4uirementsC

2 Ancillary service cate*ories

includin' reserve cate*ories

3 Reserve /acility cate*ories

> Reserve e//ectiveness /actors

? Reserve re*ions

6 Reserve cost recovery ,onesC

nd

@ Ancillary service cost recovery

/ormula to %e de$eloped in

ccordnce with the principles

set out in cluse 3.3.?.>C




% "u%mit to the PE# ord to endorse

to the ER( for ppro$l rele$nt

detils of ech of the mtters set out

in cluse 10.>[email protected] C nd

c After o%tinin' the ppro$l of the

ERC under cluse 10.>[email protected] %

pu'lis the followin'<

1 Ancillary service rrn'ements

nd ancillary service

cate*ories includin' reserve

cate*ories!

2 Reserve cost recovery ,ones

3 Alloction of market tradin*

nodes to reserve cost

recovery ,ones nd

> Reserve cost recovery /ormula.

10.>[email protected]. Reser$e #ret Arrn'ements

10.>[email protected]. !hen reson%ly fesi%le the

Market Operator in consulttion with

the System operator shll est%lish

market for the purchse of certin reserve

cate*ories.

10.>[email protected]. The System operator shll define<

Reserve cate*ories

% 7enerl re4uirements reltin' to ech

reserve cate*ory C nd

c The criteri to %e stisfied %y $rious

reserve /acility cate*ories o//erin*

reserve to meet those re4uirements

in ccordnce with the $rid Code and

istri'ution Code.

10.>[email protected]. The System operator in consulttion with the Market

Operator shll<

Est%lish loctionlly specific re4uirements for echreserve cate*ory




% "pecify reserve e//ectiveness /actors for

ech reserve /acility cate*ory

c Est%lish reserve re*ions within which reserve

o//ers my %e ccepted to meet ech such

loctionlly specific re4uirementC

d &etermine correspondin' set of loctionlly

specific reserve re1uirements constraints to

%e incorported into the dispatc

optimi,ationC nd

e Est%lish reserve cost recovery ,ones within which

reserve cost recovery car*es my %e reco$ered to

meet ech loctionlly specific re4uirement.

10.>.@.>. The Market Operator shll<

&eclre the form in which reserve o//ers for ech

reserve cate*ory will %e ccepted from $rious

reserve /acility cate*ories nd

% &etermine the fre4uency with which nd process

%y which reserve o//ers my %e updted.

9'2'<T#mea*,e

10.>..1. Prior to the spot market commencement date the

Market Operator in consulttion with the System

Operator and WESM Participants! shll de$elop

timeta'le for opertion of the spot market.

10.>..2. The Market Operator shll pu'lis the timeta'le su%ect

to the ppro$l of the PEM Board .

9'2'= L$ad F$!e"as#n%

Prior to the spot market commencement date the Market Operator

shll in consulttion with the System operator nd with the ppro$l of

the PEM Board de$elop procedures for preprtion of net lod forecsts

s re4uired %y cluse 3.?.>.

9'2'9Ma!.e D#spa"h Op#m#a#$n M$de,

10.>.10.1. Prior to te spot market commencement date the

Market Operator shll de$elop the formultion of the

market dispatc optimi,ation model to %e used for the




purposes of centrl schedulin' nd dispatc! nd pricin* in

ccordnce with cluses 3. nd 3.10.

10.>.10.2. Prior to the spot market commencement dte the

Market Operator shll de$elop performnce stndrds

includin' stndrds for reli%ility nd processin' time

which shll %e met %y the market dispatc optimi,ation

model! once implemented.

10.>.10.3. The formultion of the market dispatc

optimi,ation model de$eloped under cluse 10.>.10.1

nd the performnce stndrds de$eloped under cluse

10.>.10.2 re to %e ppro$ed %y the PEM Board h$in'

%een certified s complint with the WESM Rules %y n

independent re$iewer ppointed %y the PEM Board .

10.>.10.>. The Market Operator shll pu%lish detils of the market

dispatc optimi,ation model once ppro$ed %y the PEM

Board under cluse 10.>.10.>.

9'2' C$ns!a#n 7#$,a#$n C$e//#"#ens

10.>.11.1. Prior to the spot market commencement date the

Market Operator shll de$elop nd pu'lis constraint

violation coe//icients or procedures for clcultin'

constraint violation coe//icients for ech constraint

detiled in cluse 3.6.1.> to %e used in the market

dispatc optimi,ation model.

10.>.11.2. The constraint violation coe//icients shll %e<

&e$eloped in consulttion with WESM ParticipantsC

% Approprite for nd commensurte with the

prticulr constraint to which it is to %e ppliedC

nd

c Appro$ed %y the PEM Board .

9'2'D#spa"h T$,e!an"es

Prior to the spot market commencement date! the Market Operator

shll su%ect to PEM Board ppro$l de$elop 'uidelines on dispatc

tolerances for ech type of plant! nd loction tin' into ccount

plant chrcteristics locl net#ork conditions nd ny other mtter




considered rele$nt for purposes of schedulin' nd disptch nd in

ccordnce with the $rid Code and istri'ution Code

9'2'0 Mana%emen P!$"ed+!es D+!#n% L$ad Shedd#n%

Prior to the spot market commencement date! the System operator nd

the Market Operator in consulttion with WESM Participants nd

su%ect to ppro$l %y the PEM Board shll de$elop nd pu'lis detiled

procedures for the mn'ement of ll spects of dispatc nd pricin*

durin' periods when load seddin* is re4uired under cluse 3.9.@.

9'2'2 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n

Prior to the spot market commencement dte the System operator nd


su%ect to ppro$l %y the PEM Board shll ech de$elop nd pu%lish

the procedures which they pln to dopt with respect to the

mn'ement of ll spects of dispatc and pricin* should it %e necessry

to shut down *eneratin* systems under cluse 3.9..1.

9'2'3 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n

Prior to the spot market commencement date the System operator nd


su%ect to ppro$l %y the PEM Board shll ech de$elop nd pu'lis

the procedures which they pln to dopt with respect to the

mn'ement of ll spects of dispatc and pricin* should it %e necessry

to shut down *eneratin* systems in the e$ent the dispatc optimi,ation

or ny market pro2ection indicte e3cess *eneration t ny node.

9'2'8 P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e

Prior to the spot market commencement date the Market Operator in

consulttion with WESM Participants nd su%ect to ppro$l %y the

PEM Board shll de$elop nd pu%lish the procedures to %e employed in

cluses 3.10.6 d nd e in est%lishin' the net#ork con/i*uration nd

other constraints to %e ssumed for the determintion of e3+post nodal

ener*y prices for circumstnces in which po#er system conditions

mterilly chn'e durin' the tradin* interval with $iew to ensurin'

tht<

(onsistency is mintined %etween the market net#ork

confi'urtion nd stte determined in ccordnce with cluse3.10.6 d ny constraints determined in ccordnce with




cluse 3.10.6 e nd the unrestrained net loads mesured or

estimted for ech market net#ork node in ccordnce with

cluse 3.10.6 cC nd

% The e3+post prices produced in ccordnce with cluse 3.10.6

properly nd firly represent $er'e conditions o$er the tradin*

interval.

9'2'; Eme!%en"- P!$"ed+!es

The System operator in consulttion with the Market Operator shll

de$elop pproprite emer*ency procedures in ccordnce with the $rid

Code and istri'ution Code. "uch procedures shll %e su%ect to

ppro$l of the PEM Board .

9'2'<Ha!m$n#a#$n

,rmoni5tion of WESM Rules with the $rid Code istri'ution Code nd

other rules nd re'ultions issued %y the OE nd ERC shll %e

underten upon promul'tion of these Rules.

9'2'= The Te"hn#"a, W$!.#n% 6!$+p (TW6)

9'2'='' C!ea#$n $/ he TW6

The OE shll crete nd chir Technicl !orin' 7roup 8T!78 to %e

composed of the $overnment nd industry prticipnts immeditely

fter the promul'tion of these Rules.

Industry Prticipnts for purposes of this cluse shll %e composed of

indi$idul representti$es comin' from<

1 Philippine Independent Power Producers; Assocition PIPPAC

2 Pri$te Electric Plnt *wners Assocition PEP*AC

3 Philippine Rurl Electric (ooperti$e Assocition P,I-RE(AC

> #nil Electric (ompny #ERA-(*C

? +tionl Power (orportion +P(C

6 +tionl Trnsmission (ompny TRA+"(*C

@ Power "ector Assets nd -i%ilities #n'ement (orp. P"A-#C

9'2'=''Resp$ns#*#,##es

To ensure smooth trnsition from promul'tion of these Rules to ctul

commercil opertion of the spot market the T!7 shll recommend to

the OE for its pproprite ction supplementl modifictoryclrifictory nd other mendments or dditionl pro$isions to the




WESM Rules which the T!7 finds necessry nd reson%le includin'

%ut not limited to<

Refinements in the dispute resolution processC

% 7o$ernnce issuesC

c )inncil trnsmission ri'htsC

d Market net#ork modelC nd

e Market dispatc optimi,ation modelC

9'2'='0' App,#"a*#,#-

(onsistent with cluse .1 tht specified Rules chn'e procedure will

pply when the WESM is in ctul opertion the proposed mendments

of the T!7 nd the correspondin' officil issunces %y the OE shll

not %e co$ered %y the pro$isions of the Rules chn'e process contined

in (hpter .

9'2'='2' Ten+!e

The T!7 shll %e constituted s soon s possi%le meet s often s

prctic%le nd shll continue to underte its functions until the ctul

opertion of the spot market.




CHAPTER

6LOSSARY

AC' Alterntin' current.

A"' Refers to Repu%lic Act +o. 9136 lso nown s the 8Electric Power Industry Reform

Act of 20018.

A"#5e Ene!%-' A mesure of electricl ener*y flow %ein' the time inte'rl of the

product of $olt'e nd the in:phse component of current flow cross connection

point eBpressed in !tt hours !h nd multiples thereof.

A"+a, Ep$s+!e' The totl mount of o%li'tion tht WESM mem'er is re4uired to

py on due dte. (Added pe! DOE DC N$' 92:0:999< daed 8 Ma!"h 92)

Adm#n#se!ed P!#"e' A price imposed %y the #ret *pertor to the Trdin'

Prticipnts durin' market suspension nd intervention to %e used for settlements

which price is determined in ccordnce with the methodolo'y de$eloped nd

pu%lished %y the #ret *pertor nd ppro$ed %y the ERC. (As amended *- DOE DC

N$' 993::99 daed N$5em*e! 993)

A//e"ed Pa!#"#pans. A WESM mem'er who is ffected %y decision or hs

pecuniry interest in decision.

A6C' Automtic 7enertion (ontrol.

An"#,,a!- Se!5#"es. Those ser$ices tht re necessry to support the trnsmission of

cpcity nd ener*y from resources to lods while mintinin' reli%le opertion of

the transmission system in ccordnce with 'ood utility prctice the $rid Code and

istri'ution Code.

An"#,,a!- Se!5#"es A%!eemen. An 'reement under which WESM mem'er

re'istered s n Ancillary Service Provider 'rees to pro$ide ancillary services.An"#,,a!- se!5#"es "$s !e"$5e!- "ha!%e. The chr'e py%le %y WESM mem'er s for

reco$ery of the cost incurred %y the Market Operator for the pro$ision of Ancillary

Services.

An"#,,a!- Se!5#"es P!$5#de!' A person or n entity pro$idin' ancillary services nd

re'istered with the Market Operator .

An#:C$mpe##5e Beha5#$!' This refers to nti:competiti$e %eh$ior s defined in the

Act! IRR nd other rules nd re'ultions tht ERC my promul'te.


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A+h$!#a#$n' A permit consent ppro$l license or other form of uthority issued

under the Act which my %e re4uired s prere4uisite for undertin' certin

cti$ities in the Philippines electric power industry.

A+$n$m$+s 6!$+p Ma!.e Ope!a$! $! A6MO' The Autonomous 7roup Market

Operator constituted %y the OE under "ection 30 of the Act! which shll underte

the preprtory wor nd initil opertion of the WESM for period of twel$e months

from the spot market commencement date initilly under the dministrti$e

super$ision of the %RA&SCO. )or the $oidnce of dou%t durin' tht initil twel$e

month period ll references in the WESM Rules to 8Market Operator 8 shll %e

construed to men "A$MO-.

B#,ae!a, "$n!a". A contrct %etween prties the net effect of which is tht

defined 4untity of electricity hs %een sold %y one prty to nother t prticulr

node.

B#,,#n% Pe!#$d. The period of one month commencin' t 00<00 hours of the twenty

siBth 26th dy of ech clendr month to 2><00 hours of the Twenty:fifth 2? th

dy of the neBt clendr month' (As amended *- DOE DC N$'998:9;:999 daed

9+,- 998)

B,a". Sa! Capa*#,#-' In reltion to *eneratin* unit the %ility to strt nd

synchroni5e without usin' supply horn the po#er system.B,a". Sa!:+p Fa"#,##es' )cilities which pro$ide %lc strt cp%ility.

B+s#ness Da-' Any dy on which the spot mret is open for %usiness. (As amended *-

DOE DC N$' 993::99 daed N$5em*e! 993)

B+s#ness C$n#n+#-' Refers to the cti$ity performed %y the Market Operator to

ensure tht criticl %usiness functions will %e $il%le to the %radin* Participants!

System Operator! Meterin* Services Provides! ERC! OE! nd other entities tht must

h$e ccess to those functions. (Added pe! DOE DC N$' 90::99< daed 8

De"em*e! 90)

Cen!a, D#spa"h' The process of schedulin' %y the Market Operator nd issuin' direct

instructions to electric power industry prticipnts %y the System operator chie$e

the economic opertion of the transmission system while mintinin' its 4ulity

st%ility reli%ility nd security.

Cha#!pe!s$n' The person ppointed %y the OE to chir meetin's of the PEM Board .

Che". daa' &t supplied to the Market Operator %y %radin* Participant in

ccordnce with cluse 3.?.?.3 for the purpose of checin' the $lidity of ny future

offer or demnd %id in ccordnce with cluse 3.?.12.


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C$n/#den#a, In/$!ma#$n' Informtion which is or hs %een pro$ided to or %y

Prticipnt or the Market Operator under or in connection with the WESM Rules nd

is stted under the WESM Rules to %e or is clssified %y the Market Operator s

confidentil informtion or is otherwise confidentil or commercilly sensiti$e

informtion or is informtion which is deri$ed from ny such informtion.

C$nne"? C$nne"ed? C$nne"#$n. To form physicl lin to or throu'h the

transmission net#ork or distri'ution net#ork in such wy s to llow trnsmission

of electricity in ccordnce with the stndrds set out in the $rid Code.

C$nne"#$n Asses' Any component of transmission system or distri'ution system

which in the reson%le opinion of the Market Operator is ssocited with

connection point includin' meterin* installations.

C$nne"#$n P$#n. The 'reed point of supply est%lished %etween &et#ork Service

Provider nd %radin* Participant.

C$ns!a#n:$// . In respect of 'enertin' unit the output of tht *eneratin* unit is re:

disptched 'y te System Operator 'elo# its Real+%ime ispatc scedule in

accordance #it te WESM Merit Order %a'le. As amended *- DOE DC N$'92:9:

99 daed 2 O"$*e! 92)

C$ns!a#n:$n' In respect of *eneratin* unit the output of tht *eneratin* unit is re:

disptched %y the "ystem *pertor %elow its Real+%ime ispatc scedule in

accordance #it te WESM Merit Order %a'le. As amended *- DOE DC N$'92:9:

99 daed 2 O"$*e! 92)

C$ns!a#n' A limittion on the cp%ility of ny com%intion of net#ork elements

loads! *eneratin* units or Ancillary Service Providers such tht it is or is deemed %y

the System operator to %e unccept%le to dopt the pttern of trnsfer

consumption 'enertion or production of electricl power or other ser$ices tht

would %e most desir%le if the limittion were remo$ed.

C$ns!a#n 5#$,a#$n. A constrint is $iolted when the lodin's of net#ork elements

lods *eneratin* units or Ancillary Service Providers in$ol$ed in tht constraint

com%ine in such wy s to eBceed the limit specified %y tht constraint.

C$ns!a#n 7#$,a#$n C$e//#"#ens. (oefficients set %y the Market Operator in

ccordnce with cluse 3.6.2. The Market Operator is to ensure tht if constrints

shll %e $iolted such $ioltion will occur in pproprite priority order.

C$nesa*,e Ma!.e. Refers to the electricity End:users who h$e choice of

"upplier of electricity s my %e determined %y the ERCin ccordnce with the Act.




C$n#n%en"- Rese!5e. The %ility to respond so s to rrest si'nificnt drop in

system fre4uency such s would rise s result of credi%le contin'ency ffectin'

one or more *eneratin* units within re'ion or trnsmission flows into re'ion.

C!ed# S+pp$!. An o%li'tion owed to the Market Operator %y third prty

supportin' the o%li'tions of %radin* Participant under cluse 3.1>.11.

C!ed# S+pp$! P!$5#de!. The prty which ssumes credit support o%li'tions to the

Market Operator under cluse 3.1>.11.

C+s$me!' A person who<

en''es in the cti$ity of purchsin' electricity supplied

throu'h trnsmission or distri%ution system other thn where ll

tht person;s electricity re4uirements re purchsed from "upplier

nd

% re'isters with the Market Operator in tht cpcity under cluse 2.3.2.

C+s$me! N$de' A market tradin* node t which electricity will normlly %e

purchsed from the spot market nd which is clssified s customer node in

ccordnce with cluse 3.2.2.2.

C+s$me! P!#"#n% @$ne. A 5one within which ll customers will fce the sme price for

electricity consumed s pu%lished %y the Market Operator in ccordnce with cluse

3.2.3.1.

Daa C$,,e"#$n S-sem. All e4uipment nd rrn'ements tht lie %etween the

meterin* data'ase nd the point where the meterin* data enters the pu%lic

telecommunications net#ork.

Daa L$%%e!' A de$ice tht collects ener*y data nd is cp%le of %ein' ccessed

electroniclly %y the Market Operator $i the dt collection system.

Da- Ahead P!$4e"#$ns. Proections of market conditions for the dy hed

determined nd pu'lised %y the Market Operator in ccordnce with cluse [email protected].

DC' &irect (urrent.

De/a+, E5en' Any one or more of the e$ents listed in cluse 3.1>.11.1.

De/a+, Ine!es Rae' An interest rte of three percent 3H per nnum or the

ppro$ed defult interest %y the PEM Board in ddition to the 0nterest Rate to %e

pplied to the reminin' defult mount. (As amended *- DOE DC N$' 92:0:999<

daed 8 Ma!"h 92)

De/a+, N$#"e' A notice issued %y the Market Operator under cluse 3.1>.11.2.








Demand B#d. A standin* 'id! or market 'id to %uy electricity su%mitted or re$ised %y

Customer in ccordnce with cluse 3.?.6 3.?.9 3.?.12 or 3.?.13 nd continin'

the informtion specified in AppendiB A1.

Depa!men $/ Ene!%- $! DOE' The 'o$ernment 'ency creted pursunt to

Repu%lic Act +o. @63 whose eBpnded functions re pro$ided in the Act.

De!e%#se!ed WESM mem*e!' A person who is re'istered s WESM mem'er until

dere'istered under cluses 2.? nd 2.6.

D#!e" WESM mem*e!. A person or n entity who is re'istered with the Market

Operator under cluse 2.3.

D#!e"$!' A mem%er of the PEM Board ppointed %y the OE under cluse 1.>.3 h$in'

duty to mon' other mtters perform the duties of mn'ement of the PEM Board

in ccordnce with cluse 1.>.?.

D#sase!' Refers to nturl or mn:mde e$ent tht results in physicl dm'e

destruction of property or loss of life. &issters shll include %ut re not limited to

erth4ues typhoons floods storms fires %om% threts cts of terrorism or

s%ot'e power system %lcouts or ci$il distur%nces. (Added pe! DOE DC N$'

90::99< daed 8 De"em*e! 90)

D#sase! Re"$5e!-' Refers to su%set of %usiness continuity. This is the process

policies nd procedures tht re relted to preprin' for reco$ery or continution of

technolo'y infrstructure which re $itl to the Market Operator fter nturl or

humn:induced disster. (Added pe! DOE DC N$' 90::99< daed 8 De"em*e!

90)

D#s"$nne"' The opertion of switchin' e4uipment or other ction so s to pre$ent the

flow of electricity t connection point.

D#spa"h' The ct %y which the System operator initites ll or prt of the response

offered or %id %y scheduled *eneratin* unit or sceduled load in ccordnce with

cluse 3..2.

D#spa"h S"hed+,e' The tr'et loadin* levels in #! for ech scheduled *eneratin*

unit or sceduled load nd for ech reserve /acility for the end of tht tradin*

interval determined %y the Market Operator throu'h the use of marketdispatc

optimi,ation model in ccordnce with cluse 3..1.

D#spa"h T$,e!an"es' -imits on the eBtent to which %radin* Participants my de$ite

from dispatc tr'ets determined %y the System operator in ccordnce with cluse

3..@.












D#spa"ha*,e L$ad' A lod which is %le to respond to disptch instructions nd so my

%e treted s scheduled lod; in the disptch process.

D#spa"ha*,e Rese!5e' The %ility to respond to re:disptch performed %y the

System operator durin' tradin* interval on either re'ulr or n d hoc %sis.

D#sp,a"ed 6ene!a$!. A 'enertin' unit identified nd instructed %y the System

Operator in n Out o/ Merit ispatc to reduce the pro$ision of ener'y specified in its

Real %ime ispatc instruction eBclusi$ely cused %y eBcess 'enertion due to non:

complince of 'enertors to disptch instructions nd use of recti$e support reser$e.


D#sp+e Mana%emen P!$$"$, $! DMP' The &#P is system to %e followed %y the

disputin' prties nd shll form prt of the ne'otition st'e of the !E"# dispute

resolution frmewor. (As amended *- DOE DC N$' 9:9:999 daed 3

Fe*!+a!- 9)

D#sp+e Res$,+#$n Adm#n#s!a$!. A person ppointed %y the PEM Board under cluse

@.3.2.1.

D#s!#*+#$n C$de' The set of rules re4uirements procedures nd stndrds

'o$ernin' istri'ution tilities nd users in the opertion mintennce nd

de$elopment of their distri%ution systems. It lso defines nd est%lishes the

reltionship of the distri%ution systems with the fcilities or instlltions of the prties

connected thereto.

D#s!#*+#$n L#ne' A po#er line includin' under'round c%les tht is prt of

distri'ution net#ork.

D#s!#*+#$n Ne1$!.' A net#ork which is not transmission net#ork.

D#s!#*+#$n Se!5#"e' The ser$ices pro$ided %y istri'ution tility which re

ssocited with the con$eynce of electric power from transmission /acilities or

em%edded 'enertors to End:users %y istri'ution tility throu'h its distri%ution

system pursunt to the pro$isions of the Act nd the IRR.

D#s!#*+#$n S-sem' The system of wires nd ssocited fcilities %elon'in' to

frnchised istri'ution tility eBtendin' %etween the deli$ery points on the

transmission or su'+transmission system! or 'enertor connection nd the point of

connection to the premises of the End:=ser.

D#s!#*+#$n U#,#-' An Electric Cooperative pri$te corportion 'o$ernment:owned

utility or eBistin' locl 'o$ernment unit tht hs n eBclusi$e frnchise to operte

distri'ution system in ccordnce with its frnchise nd the Act nd re'istered withthe Market Operator s &et#ork Service Provider under cluse 2.3.>.




E"$n$m#" Rena,' #ens for constrint in the market dispatc optimi,ation model

where the constraint is in liner pro'rmmin' cnonicl form tht is for

ma3imi,in* optimi,ation model7 the sum of the $ri%le terms less thn or e4ul to

the constnt term the sado# price of the constraint multiplied %y the constnt

term of the constraint.

EFT Fa"#,#-' An electronic funds trnsfer fcility.

E,e"!#" C$$pe!a#5e. A cooperti$e or corportion uthori5ed to pro$ide electric

ser$ices pursunt to Presidentil &ecree +o. 269 s mended nd Repu%lic Act +o.

693 within the frmewor of the ntionl rurl electrifiction pln.

E,e"!$n#" C$mm+n#"a#$n P!$"ed+!es. The procedures est%lished %y the Market

Operator nd updted from time to time in ccordnce with cluse ?.2.2.?.

E,e"!$n#" C$mm+n#"a#$n S-sem. A system used %y %radin* Participants nd the

Market Operator for eBchn'e of informtion in ccordnce with cluse ?.2.2.1.

Em*edded 6ene!a$!s' $eneratin* units tht re indirectly connected to the 7rid

throu'h the istri'ution tilities- lines or industril *eneration /acilities tht re

synchroni5ed with the 7rid.

Eme!%en"-' An e$ent or sitution descri%ed in cluses 6.3.1.1 nd 6.3.1.2.

Eme!%en"- D#!e"#$ns' &irections issued %y the Market Operator in n emer*ency

under cluse 6.?.1.

End:+se!. Any person or entity re4uirin' the supply nd deli$ery of electricity for its

own use.

Ene!%-' 7enerlly active ener*y ndDor reactive ener*y %ut for the purposes for

chpter 3 mens cti$e ener'y only.

Ene!%- Ba,an"e E>+a#$n' An e4ution determined %y the Market Operator in

ccordnce with cluse 3.6.1.> c representin' the %lnce %etween 'enertion

lod and transmission /lo#s t prticulr node of the market net#ork model.

Ene!%- Daa' The dt tht results from the mesurement of the flow of electricity in

power conductor. The mesurement is crried out t meterin* point.

Ene!%- Re%+,a$!- C$mm#ss#$n $! ERC' The independent 4usi:udicil re'ultory

%ody creted under the Act.

En/$!"emen and C$mp,#an"e O//#"e!' A person tsed to perform complince nd

enforcement functions pursunt to cluse @.2 includin' the in$esti'tion of lle'ed

%rech of the WESM Rules nd imposition of pproprite snctions nd such other

functions s my from time to time %e ssi'ned to him %y PE#(. (Added as pe! DOEDC N$' 998:9:999 daed 9 an+a!- 998)




E:Ane' A mtter determined in reltion to tradin* interval %efore tht tradin*

interval commences.

E:Ane D#spa"h. The dispatc tar*ets set for the end of tradin* interval

immeditely precedin' the %e'innin' of tht tradin* interval.

E:Ane Ene!%- Se,emen P!#"e' The e3+ante nodal ener*y price or the e3+ante

,onal reserve price! s my %e pproprite determined in ccordnce with cluse

3.10.12.

E:Ane Ene!%- Se,emen +an#-. The 'ross mount determined %y the Market

Operator in ccordnce with cluse 3.13.? nd dusted for 'ilateral contracts in

ccordnce with cluse 3.13.@.

E:Ane N$da, Ene!%- P!#"e'The price determined %y the Market Operator for

prticulr market net#ork node nd tradin* interval immeditely prior to

commencement of tht tradin* interval directly from the disptch optimi5tion for

tht tradin* interval in ccordnce with cluse 3.10.2.

E:Ane @$na, Ene!%- P!#"e. The price determined %y $er'in' e3+ante nodal ener*y

prices in ccordnce with cluse 3.10.3.

E"ess 6ene!a#$n' 7enertions which my %e scheduled to occur in eBcess of lod

re4uirements e$en thou'h market ener*y prices h$e fllen to the market price floor

nd which shll then %e delt with in ccordnce with cluse 3.9..

E:p$s' A mtter determined in reltion to tradin* interval fter tht tradin*

interval concludes.

E:P$s Ene!%- Se,emen P!#"e' The e3+post nodal ener*y price or the e3+post ,onal

ener*y price! s pproprite determined in ccordnce with cluse 3.10.12.

E:P$s Ene!%- Se,emen +an#-. The mount determined %y the #ret

Operator in ccordnce with cluse 3. 13.6.. (As amended *- DOE DC N$' 90:90:

9993 daed Ma!"h 90)

E:P$s N$da, Ene!%- P!#"e' The price determined %y the Market Operator for

prticulr market node nd tradin* interval fter the end of tht tradin* interval in


E:P$s @$na, Ene!%- P!#"e' A price determined %y $er'in' e3+post nodal ener*y

prices in ccordnce with cluse 3.10.11.

Fa"#,#-' A 'eneric term ssocited with pprtus e4uipment %uildin's nd necessry

supportin' resources for the 'enertion trnsmission supply sle nd consumption of

electricity.F#na, Saemen. A sttement issued %y the Market Operator under cluse 3.1>.?.




F#na, WESM' The spot market operted %y n independent entity to which the

functions ssets nd li%ilities of the A$MO re trnsferred in ccordnce with

"ection 30 of the Act.

F#nan"#a, Yea!' A period referrin' to clendr yer tht commences on Qnury 1 nd

ends on &ecem%er 31 of the sme yer . (As amended *- DOE C#!"+,a! N$' DC90:

98:999 daed 0 Ma- 90)

F$!"e Ma4e+!e E5en' An e$ent risin' from mor networ trou%le tht cused prtil

or system:wide %lcout mret system softwre filure nd ny other e$ent

circumstnce or occurrence in nture of or similr in effect to ny of the fore'oin'.

F$!m+,a#$n' A mthemticl specifiction of n optimi5tion model.

F!an"h#se A!ea' A 'eo'rphicl re eBclusi$ely ssi'ned or 'rnted to istri'ution

tility for distri%ution of electricity.

F!e>+en"-' )or lterntin' current electricity the num%er of cycles occurrin' in ech

second. The term ,ert5 ,5 corresponds to cycles per second.

6ene!a#n% S-sem. A system comprisin' one or more *eneratin* units.

6ene!a#n% Un#. A sin'le mchine 'enertin' electricity nd ll the relted

e4uipment essentil to its functionin' s sin'le entity nd h$in' nmeplte rtin'

of 1 #lDID or more.

6ene!a#$n' The production of electricl power %y con$ertin' one form of ener*y to

nother in *eneratin* unit.

6ene!a#$n C$mpan-. A person or entity uthori5ed %y the ERC to operte fcilities

used in the 'enertion of electricity nd re'istered with the Market Operator in tht

cpcity in ccordnce with cluse 2.3.1.

6ene!a#$n O//e!. A standin* o//er or market o//er to supply electricity su%mitted or

re$ised %y $eneration Company in ccordnce with cluses 3.?.? 3.?.9 3.?.10 or

3.?.11.

6ene!a$! N$de. A market tradin* node t which electricity will normlly %e sold to

the spot market nd which is clssified s *enerator node in ccordnce with cluse

3.2.2.2.

6$5e!nmen' The 7o$ernment of the Philippines.

6$5e!nmen A+h$!#-. Any 'o$ernment or 'o$ernmentl semi:'o$ernmentl

dministrti$e or udicil %ody deprtment commission uthority tri%unl 'ency

or entity.




6!#d' The hi'h $olt'e %c%one system of interconnected transmission lines

su%sttions nd relted fcilities locted in ech of -u5on Lisys nd #indno or

s my otherwise %e determined %y the ERC in ccordnce with "ection >? of the Act.

6!#d C$de' The set of rules re4uirements procedures nd stndrds to ensure the

sfe reli%le secured nd efficient opertion mintennce nd de$elopment of the

hi'h $olt'e %c%one Trnsmission "ystems nd its relted fcilities.

6!$ss E:AneE:P$s Ene!%- Se,emen +an#-. The e3+ante:e3+post ener*y

settlement 1uantity determined in ccordnce with cluses 3.13.?D3.13.6 for

market tradin* node in tradin* interval %efore ny dustment for %ilterl

contrcts.

H7DC' ,i'h Lolt'e &irect (urrent.

ICT Chan%e Mana%emen P!$"ess $! JICMP' The process instituted %y the Market

Operator tht ensures proper nd timely re$iew ppro$l implementtion

monitorin' nd documenttion of ll I(T chn'es re4uirements of the Market

Operator .(Added as pe! DOE DC N$' 9::99 daed De"em*e! 9)

Ind#!e" WESM mem*e!. A person or n entity who wishes to indirectly trde in the

spot market. ,owe$er n Indirect WESM mem'er my only trnsct throu'h direct

WESM mem'er .

Insa,,a#$n Daa*ase' The dt%se which Market Operator is re4uired to eep in

respect of its meterin* installations pursunt to cluse >.@.

Ine!es Rae' In reltion to ny period for which n interest rte is to %e determined

hereunder rte per nnum e4ul to the lendin' rte pu%lished %y the n'o "entrl

n' Pilipins t the time of pyment. (As amended *- DOE DC N$' 92:0:999<

daed 8 Ma!"h 92)

Ine!#m WESM' The spot market operted %y A$MO for period of twel$e months

from the spot market commencement date or until such time tht A$MO ceses to

eBist.

Inend#n% WESM member ' A person who wishes to %ecome WESM mem'er nd who

re'isters with the Market Operator under cluse 2.9.

Ine!!+p#*,e L$ad' #ens lod tht Customer is %le to interrupt t $ery short

notice in response to<

A /re1uency de$itionC or

% A re4uest of the System operator

in order to meet contin'ency reserve re4uirements su%ect to the re4uirements of the $rid Code and istri'ution Code.








Ine!5en#$n' A mesure ten %y the System Operator when the 'rid is in eBtreme

stte condition s est%lished in the $rid Code risin' from thret to system

security /orce ma2eure event or emer*ency! or %y the Market Operator in reltion to

the simultion or implementtion of the 'usiness continuity or disaster recovery

procedures de$eloped in ccordnce with (luse 6..1. &urin' such e$ent the

administered price cap shll %e used for settlements (As amended *- DOE DC N$'

90::99< daed 8 De"em*e! 90)

L#ne Rena,' The economic rentl risin' from the use of transmission line

clculted s the difference in $lue %etween flows out of the receivin* node of tht

line nd flows into the sendin* node! in ccordnce with cluse 3.13.12.

L$ad' The mount of ener*y consumed in defined period $i node.

L$ad F$!e"as. ,s the sme menin' s net load /orecast.

L$ad Shedd#n%. Reducin' or disconnectin' lod horn the po#er system.

L$ad We#%hed A5e!a%e. An $er'e produced %y multiplyin' ech nodal ener*y price

%y the lod t tht node summin' the results nd then di$idin' %y the sum of the

lods in$ol$ed.

L$ad#n% Le5e,' The instntneous le$el of output or consumption in #! of

*eneratin* unit or load.

L$"a, S+pp,#e!. In reltion to locl re the Market Customer who is responsi%le for

the supply of electricity to frnchise customers in tht locl re.

L$"a#$na,,- Spe"#/#" Rese!5e Re>+#!emen. A re4uirement for prticulr reserve

cate*ory to %e met t prticulr loction %y reserve /acilities in prticulr

reserve re*ion in ccordnce with cluse 3.3.? nd with costs to %e reco$ered from

prticulr reserve cost recovery ,one in ccordnce with cluse 3.3.?.

L$ss D#//e!en#a,. ,s the sme menin' s 'reed loss differentil.

Ma!%#n Ca,,' An mount which the Market Operator clls to %e pid %y %radin*

Participant in ccordnce with cluse 3.1?.10.1 to me up ny nticipted shortfll

%etween tht %radin* Participant;s trdin' limit nd the Market Operator ;s eBposure in

respect of tht %radin* Participant.

Ma!.e B#d' A demand 'id for prticulr tradin* interval of prticulr tradin* day

in the current market ori,on! whether formed from stndin' %id in ccordnce with

cluse 3.?.10 or re$ised %y the rele$nt %radin* Participant in ccordnce with cluse

3.?.11.

Ma!.e D#spa"h Op#m#a#$n M$de,' The optimi,ation model which contins themthemticl l'orithm ppro$ed %y the PEM Board to %e used for the purposes of








determinin' disptch schedules nd ener*y prices nd preprin' market pro2ections

%sed on the price determintion methodolo'y ppro$ed %y ERC.

Ma!.e Fees. The chr'es imposed on ll WESM mem'er s %y the Market Operator to

co$er the cost of dministerin' nd opertin' the !E"# s ppro$ed %y the ER(.

Ma!.e H$!#$n. A period for which day+aead or #eek+aead pro2ections re

performed s defined in the timeta'le.

Ma!.e In/$!ma#$n We* S#e. A fcility to %e est%lished %y the Market Operator on

the electronic communication system on which it my pu%lish informtion which is

then $il%le to nd my %e ccessed %y WESM mem'er s.

Ma!.e L$ad' The electricity deli$ered to connection point nd purchsed %y

Customer horn the spot market.

Ma!.e Man+a,s' A mnul of specific procedures systems or protocols for the

implementtion of the !E"# Rules.(Added as pe! DOE DC N$'998::990 daed 9=

N$5em*e! 998)

Ma!.e Ne1$!. L#nes. Actul or notionl networ lines oinin' market net#ork nodes

within the market net#ork model.

Ma!.e Ne1$!. M$de,. A mthemticl representtion of the po#er system! which

will %e used for the purpose of determinin' dispatc scedules nd ener*y prices nd

preprin' market pro2ections.

Ma!.e O//e!' A *eneration o//er for prticulr tradin* interval of prticulr

tradin* day in the current market ori,on whether formed from standin* o//er in

ccordnce with cluse 3.?.10 or re$ised %y the rele$nt %radin* Participant in

ccordnce with cluse 3.?.11.

Ma!.e Ope!a$!' The entity responsi%le for the opertion of the spot market

'o$erned %y the PEM Board in ccordnce with cluse 1.> which for the $oidnce of

dou%t is the A$MO for period of twel$e months from the spot market

commencement date nd therefter the entity to which the functions ssets nd

li%ilities of the A$MO re trnsferred in ccordnce with section 30 of the Act.

Ma!.e P!#"e. A 'eneric term co$erin' prices for ener*y nd reserv e e3+ante or e3+

post! nodal or ,onal! s pproprite.

Ma!.e P!$4e"#$ns. Week aead or day aead pro2ections of spot market conditions

performed in ccordnce with cluse 3.@.

Ma!.e S+!5e#,,an"e C$mm#ee. The (ommittee ppointed under cluse 1.6.

Ma!.e S+spens#$n' An e$ent wherein the ERC declres the opertion of the spotmarket to %e suspended in cses of nturl clmities or ntionl nd interntionl




security emer'encies. &urin' such e$ent the administered price cap shll %e used for

settlements.

Ma!.e T!ad#n% N$des. Those nodes t which electricity will %e either %ou'ht or sold

from the spot market defined in ccordnce with cluse 3.2.2.

Ma!.e T!ansa"#$n. A sle or purchse of electricity or other ser$ices mde throu'h

the spot market.

Ma#m+m Ep$s+!e' The ma3imum e3posure o/ WESM mem'er shll men the

computed $er'e monthly settlement mount of the %illin' periods co$erin' 26 #rch

throu'h 2? "eptem%er prior to the end of the 6inancial 9ear multiplied %y the fctor

3?D30 nd shll set the le$el of security deposit tht WESM mem'er is re4uired to

mintin. (As pe! DOE DC N$' 92:0:999< daed 8 Ma!"h 92)

Mee!' A de$ice which mesures nd records the consumption or production of

electricity.

Mee!ed +an#-. The 4untity of electricity sold or purchsed from the spot market

s pplic%le determined %y the Market Operator horn meterin* data.

Mee!#n%' Recordin' the production or consumption of electrical ener*y.

Mee!#n% Daa' The dt o%tined or deri$ed from meterin* installation.

Mee!#n% Daa*ase. The dt%se ept %y the Market Operator pursunt to cluse >.@.

Mee!#n% Insa,,a#$n. The meter nd ssocited e4uipment nd instlltions instlled

or to %e instlled for the collection of meterin' dt re4uired for settlement

purposes.

Mee!#n% P$#n. The point of physicl connection of the de$ice mesurin' the current

in the power conductor.

Mee!#n% Se!5#"es P!$5#de!. A person or entity uthori5ed %y the ERC to pro$ide

meterin* services nd re'istered with the Market Operator in tht cpcity in


Mee!#n% Re%#se!. A re'ister of informtion reltin' to meterin* installations ept %y

the Market Operator nd formin' prt of the meterin* data'ase.

MW. #e' !tt.

M+s:R+n Un# (MRU)' A 'enertin' unit identified nd instructed %y the System

Operator to either come on:line or % pro$ide dditionl ener'y on prticulr

%radin* 0nterval %ut the disptch of which is sid to %e *ut of #erit to ddress

System Security re4uirements. )or clrity #R= shll %e utili5ed only fter the System

Operator hs eBhusted ll $il%le Ancillary Services. #R=s re clssified sfollows< . "cheduled #R= : #R= desi'nted %y the "ystem *pertor %efore the






trdin' inter$l nd included in the Rel Time &isptch schedule throu'h the

imposition of "ecurity -imit s defined in the !E"# &isptch Protocol #nul. % Rel:

Time #R= : #R= desi'nted %y the System Operator within tradin* interval. As

amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)

M+s: S$p Un# (MSU)' A 'enertin' unit identified nd instructed %y the System

Operator to reduce the pro$ision of ener'y due to its non complince of the ispatc

Scedule to ddress or pre$ent possi%le thret to the "ystem "ecurity re4uirements of

the 7rid. As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)

Namep,ae Ra#n%' The mBimum continuous output or consumption in #! of n item

of e4uipment s specified %y the mnufcturer.

Na#$na, P$1e! C$!p$!a#$n $! NPC' The 'o$ernment corportion creted under

Repu%lic Act +o. 639? s mended.

Na#$na, T!ansm#ss#$n C$!p$!a#$n $! TRANSCO' The corportion or'ni5ed

pursunt to the Act to c4uire ll the trnsmission ssets of the +P(.

Ne L$ad F$!e"as. A /orecast! prepred in ccordnce with the procedures to %e

de$eloped under cluse 3.?.> of the load! net of ny non:scheduled 'enertion to %e

mtched lon' with ny sceduled load %y 'enertion from scheduled *eneration

/acilities.

Ne Se,emen S+!p,+s. The settlement surplus reminin' fter ll mret

trnsctions h$e %een ccounted for includin' the ssi'nment of transmission line

rentals to &et#ork Service Providers. This reminder is ssumed to %e ttri%ut%le to

economic rentls risin' from other %indin' constraints! nd ccounted for in


Ne1$!.' The pprtus e4uipment nd plnt used to con$ey nd control the

con$eynce of electricity to customers whether wholesle or retil eBcludin' ny

connection e4uipment. In reltion to &et#ork Service Provider net#ork owned

operted or controlled %y the &et#ork Service Provider.

Ne1$!. C$ns!a#ns. Constraints representin' net#ork chrcteristics such s limits

on transmission line /lo#s to %e included in the market dispatc optimi,ation model

in ccordnce with cluse 3.6.1.> f.

Ne1$!. L#nes' The<

transmission lines

% distri'ution lines

c trans/ormer elementsC ndd other plnt ssocited with trnsmission lines nd distri%ution lines.




Ne1$!. Se!5#"e' %ransmission services or distri'ution services ssocited with the

con$eynce nd with controllin' the con$eynce of electricity throu'h the net#ork.

Ne1$!. Se!5#"e P!$5#de!. A person who en''es in the cti$ity of ownin'

controllin' or opertin' transmission or distri'ution system nd who is re'istered

with the Market Operator s tht cpcity under cluse 2.3.>.

N$da, Ene!%- P!#"e. The ener*y price t node determined e3 ante or e3+post.

N$da, 7a,+e $/ L$s L$ad (N$da, 7$LL)' #ens the constraint violation coe//icient of

the ener*y 'alance e1uations for ech node set %y the Market Operator in ccordnce

with cluse 3.6.2.3.

N$de. A connection point on net#ork or unction point within net#ork model

whether physicl or notionl.

N$n:S"hed+,ed 6ene!a#n% Un#' A *eneratin* unit or 'roup of *eneratin* units

connected t common point with nmeplte rtin' nd com%ined nameplate

rtin' of less thn one tenth of one percent 0.1H of the peak load in prticulr

reserve re*ion or less thn ten percent 10H of the si5e of the interconnection

/acilities whiche$er is lower.

N$n:W$!.#n% Da-' A dy which is not !orin' &y. (Added pe! DOE DC N$' 90:90:

9993 daed Ma!"h 90)

N$!ma,,- O//' A sitution in which lod does not eBist unless it is %id into the spot

market.

NRE 6ene!a#n% Un# 1#h Ine!m#en Ene!%- Res$+!"e' A new nd renew%le

ener'y *eneratin* unit or 'roup of units connected to common connection point

whose ener*y resource is loction specific nd hs nturl $ri%ility which renders

the output unpredict%le nd the $il%ility of the resource inherently

uncontroll%le which include plnts utili5in' wind or ocen ener*y.

Opp$!+n#- C$s' The economic loss suffered %y some prty s result of losin' n

opportunity such s the opportunity to sell ener'y to the spot market.

O+ $/ Me!# D#spa"h: &isptch instructions issued %y the "ystem *pertor tht is not

in ccordnce with the !E"# #erit *rder T%le to ddress "ystem "ecurity. As

amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)

O+a%e' Any full or prtil un$il%ility of e4uipment or fcility.

O5e!:R#d#n% C$ns!a#ns' Constraints imposed in the market dispatc optimi,ation

model %y the Market Operator t the recommendtion of the System operator with

the intention of o$er:ridin' the effect of %radin* Participant;s offers or demnd %idsin ccordnce with cluse 3.?.13.




Pa-men Dae' The rele$nt dte on which %radin* Participant shll py to the

Market Operator the settlement mount in ccordnce with cluse 3.1>.9.

PEM A+d#$!' The uditor ppointed %y the PEM Board under cluse 1.>.6 to underte

functions s set out in cluse 1.?.

PEM B$a!d' The 'roup of irectors ser$in' from time to time on the %ord tht is

responsi%le for 'o$ernin' the WESM.

Ph#,#pp#ne E,e"!#"#- Ma!.e C$!p$!a#$n $! PEMC' The corportion incorported

upon the inititi$e of the OE composed of ll WESM mem'er s nd whose ord of

&irectors will %e the PEM Board . (Added as pe! DOE DC N$' 998:9:999 daed 9

an+a!- 998)

P,an' Any e4uipment in$ol$ed in 'enertin' utili5in' or trnsmittin' electricl

ener*y.

P$1e! S-sem' The inte'rted system of transmission nd distri'ution net#orks for

the supply of electricity in the Philippines.

P!#"#n% e!!$! n$#"e. A notice issued in ccordnce with cluse 3.9.6 d$isin' the

market tht the e3 ante prices for prticulr tradin* interval re un$il%le or

in$lid.

P!$4e"#$n' A set of results deri$ed in ccordnce with cluse 3.@ from series of

mret dispatc optimi,ation model runs descri%in' proected market conditions o$er

day+aead or #eek+aead market ori,on for prticulr scenrio of net /orecast

load nd set of ssumptions with respect to $il%ility of ey system elements.

P!+den#a, Re>+#!emens. The re4uirements imposed on %radin* Participant to

pro$ide nd mintin security in ccordnce with cluse 3.1?.

P+*,#sh? P+*,#"a#$n' To me $il%le informtion.

Ramp Rae. The rte of chn'e in electricity production or consumption from

*eneratin* unit or sceduled load.

Rea"#5e Ene!%-. A mesure in $rhours $rh of the lterntin' eBchn'e of stored

ener*y in inductors nd cpcitors which is the time inte'rl product of $olt'e nd

the 4udrture component of current flow cross connection point.

Rea"#5e P$1e!' The rte t which recti$e ener*y is trnsferred produced or

purchsed %y Customer.

Rea"#5e S+pp$!. =nutili5ed sources of recti$e power rrn'ed %y the Market

Operator to %e $il%le to cter for the possi%ility of un$il%ility of nother source

of recti$e power or incresed re4uirements for recti$e power.




Re"e#5#n% n$de. )or trnsmission line the node from which there is net /lo# of

electricity out of tht line in prticulr tradin* interval to %e ccounted for in

determinin' the line rental! in ccordnce with cluse 3.13.12. )or transmission

ri*t the node to which the issuer of the transmission ri*t is deemed to 'urntee

trnsfer of electricity to %e d$ised to the Market Operator in ccordnce with cluse

3.13.2 nd ccounted for in ccordnce with cluse 3.13.1?.

Re%+,a#n% Rese!5e' The %ility to dust 'enertion continuously in response to smll

fre4uency chn'es so so s to co$er lod fluctutions or minor %redowns defined

s n ancillary service in cluse 3.3.>.2 .

Re,#a*#,#-' The pro%%ility of system de$ice plnt or e4uipment performin' its

function de4utely for the period of time intended under the opertin' conditions

encountered.

Rese!5e' Contin*ency reserve or re*ulatin* reserve.

Rese!5e Cae%$!-. A prticulr ind or clss o/ reserve s under cluse 3.3.>.2.

Rese!5e C$s Re"$5e!- Cha!%es. (hr'es to reco$er the costs incurred in purchsin'

reserve to %e determined %y formul ppro$ed %y the ERC.

Rese!5e C$s Re"$5e!- @$ne' A 5one within which reserve cost recovery chr'es my

%e reco$ered to meet ech loctionlly specific re4uirement.

Rese!5e E//e"#5eness Fa"$!. A fctor to define the effecti$eness of reserve from

prticulr type of reser$e pro$ider in meetin' re4uirements for prticulr reserve

cate*ories.

Rese!5e Fa"#,#-' A fcility cp%le of pro$idin' reserves.

Rese!5e Fa"#,#- Cae%$!-. A prticulr type of reserve /acility chrcteri5ed %y its

technolo'y e' interrupti%le lod synchroni5ed *eneration! non:synchroni5ed

*eneration) which is reflected in the type of offer it cn me nd the reserve

e//ectiveness /actor.

Rese!5e O//e!. A standin* o//er or market o//er to supply reserves! su%mitted or

re$ised %y Customer or $eneration Company in ccordnce with cluse 3.?.@ 3.?.

3.?.10 or 3.?.11.

Rese!5e Re%#$n' A 5one of the power system from which prticulr reser$e cte'ory

cn %e supplied to meet prticulr loctionlly specific re4uirement.

Rese!5e Re>+#!emen C$ns!a#n A mthemticl representtion of loctionlly

specific reser$e re4uirement nd included in the mret disptch optimi5tion model

in ccordnce with cluse 3.6.1.> e.




R+,es Chan%e C$mm#ee. The committee of tht nme est%lished in ccordnce

with cluse .2 nd which cts in ccordnce with chpter .

R+n' A prticulr instnce of the market dispatc optimi,ation model performed for

prticulr tradin* interval or set of such instnces model performed for ll the

tradin* intervals in market ori,on.

Sa/e- P,an. A pln which shll %e de$eloped %y certin WESM mem'er s in ccordnce

with the $rid Code and istri'ution Code nd pplic%le sfety le'isltion nd

re'ultions in the Philippines.

S"ena!#$. A net load /orecast co$erin' market ori,on.

S"hed+,ed 6ene!a#n% Un#. A *eneratin* unit so clssified in ccordnce with cluse

2.3.1.2 1. A *eneratin* unit or 'roup of *eneratin* units connected t

common connection point with nmeplte rtin' or com%ined nmeplte rtin' of

'reter thn or one tenth of one percent G0.1H of the pe lod in prticulr

reserve re*ion.

S"hed+,ed 6ene!a#$n C$mpan-. A $eneration Company tht is re4uired to ply n

cti$e role in the spot market %y su%mittin' *eneration o//ers! nd %ein' su%ect to

centrl disptch.

S"hed+,ed L$ad' A lod which is %le to respond to disptch instructions nd hs

%een %id into the spot market usin' demand 'id nd so my %e scheduled nd

disptched $i the schedulin' nd disptch procedures.

Send#n% n$de. )or transmission line the node into which there is net flow of

electricity out of tht line in prticulr tradin* interval to %e ccounted for in

determinin' the line rentl in ccordnce with cluse 3.13.12. )or transmission

ri*t the node from which the issuer of the transmission ri*t is deemed to

'urntee trnsfer of electricity to %e d$ised to the Market Operator in ccordnce

with cluse 3.13.2 nd ccounted for in ccordnce with cluse 3.13.1?.

Se,emen' The cti$ity of producin' %ills nd credit notes for WESM mem'er s in

ccordnce with cluse 3.13 nd with the processes defined in cluse 3.1>.

Se,emen Am$+n' The mount py%le %y or to %radin* Participant or &et#ork

Service Provider! in respect of %illin' period s determined %y the Market Operator

under cluse 3.13.1> or cluse 3.13.1?.

Se,emen P!#"e' An e3+ante or e3+post ener*y settlement price.

Se,emen +an#-' An e3+ante or e3+post ener*y settlement 1uantity! or a ,onal

reserve settlement 1uantity.




Se,emen S+!p,+s' The settlement surplus reminin' fter ll mret trnsctions

h$e %een ccounted for nd is ssumed to %e ttri%ut%le to economic rentls risin'

from other %indin' constrints. (As amended *- DOE DC N$' 992:9;:99< daed ;

+,- 992)

Se,emen S-sem' The system includin' the computeri5ed system for conductin'

settlements.

Shad$1 P!#"e' #ens the mr'inl net %enefit from unit relBtion of the cpcity

limittion of constrint in the market optimi,ation model.

Spot market. ,s the sme menin' s the WESM.

Spot market C$mmen"emen Dae. The dte on which the spot market commences

opertion s declred %y the OE.

Sand#n% ne1$!. daa' "tndin' dt descri%in' prticulr net#ork pro$ided %y

the rele$nt &et#ork Service Provider dt in ccordnce with cluse 3.?.2.

Sand#n% O//e!B#d. A stndin' offer to sell ener*y or reserve! or %id to %uy ener'y

su%mitted %y the rele$nt %radin* Participant in ccordnce with cluse 3.?.? 3.?.6

3.?.@ or 3.?. nd re$ised from time to time in ccordnce with cluse 3.?.9 nd

effecti$e until o$er:ridden %y su%mission of specific market o//er in ccordnce with

cluse 3.?.11.

Sa+s' The ctul opertin' condition of *eneration unit or /acility includin' its

current commitment stte 'enertion le$el nd A7( cti$tion sttus.

S+pp,#e!' Any person or entity licensed %y the ERC to sell %roer mret or ''re'te

electricity to End:users nd re'istered with the Market Operator s Customer under

cluse 2.3.2.

S+pp,-' The sle of electricity %y prty other thn $eneration Company or a

istri'ution tility in the frnchise re of istri'ution tility usin' the wires of

such istri'ution tility.

S+spens#$n N$#"e' A notice issued %y the Market Operator under cluse 3.1?.@.

S-sem B,a".$+. The %sence of $olt'e on ll or si'nificnt prt of the

transmission system or within re'ion followin' mor supply disruption fter one

or more *eneratin* systems nd si'nificnt num%er of customers.

S-sem $pe!a$!' The prty identified s the System operator pursunt to the $rid

Code which is the prty responsi%le for *eneration dispatc the pro$ision of ancillary

services nd opertion nd control to ensure sfety power 4ulity st%ility

reli%ility nd security of the 'rid.


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S-sem Se"+!#-' The sfe schedulin' opertion nd control of the po#er system on

continuous %sis in ccordnce with the system security nd reli%ility 'uidelines

est%lished under the $rid Code.

S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes. The stndrds 'o$ernin' system security

nd reli%ility of the po#er system which my include %ut re not limited to

stndrds for the fre4uency of the po#er system in opertion nd ancillary services

includin' 'uidelines for ssessin' re4uirements nd utili5tion de$eloped %y the

Market Operator nd System operator s ccordnce with the $rid Code.

Ta!%e L$ad#n% Le5e,. The loadin* level determined s n end:of:period tr'et for

scheduled 'enertor or lod %y the Market Operator s ccordnce with cluse 3..1e.

T#me Samp' The mens of identifyin' the time nd dte t which dt is trnsmitted

or recei$ed.

T#mea*,e' The timeta'le prepred %y the Market Operator for opertion of the spot

market in ccordnce with cluse 3.>.2.

T!ad#n% Am$+n. The mount to %e pid %y or pid to %radin* Participant or

&et#ork Service Provider in respect of ener*y! reserve line rentls or transmission

ri*ts clculted in ccordnce with cluses 3.13.@ 3.13. 3.13.9 3.13.10 or

3.13.1> respecti$ely.

T!ad#n% Da-' The 2>:hour period commencin' ccordin' to the %imeta'le. %radin*

interval. A 1:hour period commencin' on the hour.

T!ad#n% L#m#' In respect of %radin* Participant t ny time mens the lst trdin'

limit set %y the Market Operator for the %radin* Participant under cluse 3.1?..

T!ad#n% Pa!#"#pan. A Customer or $eneration Company.

T!ansm#ss#$n L#ne. #ens po#er line tht is prt of transmission net#ork.

T!ansm#ss#$n Ne1$!.. A net#ork operatin* t nominl $olt'es of 220 L nd %o$e

plus<

ny prt or networ opertin' t nominl $olt'es %etween 66L nd

220L tht opertes in prllel to nd pro$ides support to the hi'her

$olt'e transmission net#ork

% ny prt of networ opertin' t nominl $olt'es %etween 66 L nd

220L tht does not operte in prllel to nd pro$ide support to the

hi'her $olt'e transmission net#ork %ut is deemed %y the $overnment

to %e prt of the transmission net#ork.




T!ansm#ss#$n R#%h. The ri'ht to finncil compenstion %sed on differences %etween

nodal ener*y prices t different market tradin* nodes s notified under cluse 3.13.2

nd settled in ccordnce with cluse 3.13.1?.

T!ansm#ss#$n S-sem. The transmission net#ork to'ether with the connection ssets

ssocited with the transmission net#ork which is connected to nother transmission

or distri'ution system.

T-pe. ,s the sme menin' s reserve /acility cate*ory.

Un!es!a#ned L$ad' #ens the unscheduled lod which mi'ht h$e %een eBpected %y

the Market Operator t ny prticulr point in time with no load seddin* nd

ssumin' sceduled loads normlly off.

7#a, L$ads. -ods defined s sensiti$e %y the %radin* Participants.

7$LL' ,s the sme menin' s +odl Lo--.

7$,a%e' The electronic force or electric potentil %etween two points tht 'i$e rise to

the flow of electricity.

Wee. Ahead P!$4e"#$ns. The proections performed for the #eek+aead market

ori,on %y the Market Operator s ccordnce with cluse [email protected].

WESM mem*e!. A person who is re'istered with the Market Operator in ccordnce

with cluses 2.3 nd 2.>.

WESM Me!# O!de! Ta*,e (WMOT) : for purposes of disptch protocol under the !E"#

defined %sed on the 7rid (ode with n ddition of unscheduled 'enertin' units

rrn'ed %sed on price offersC the !#*T is %sed on sin'le mret. As amended *-

DOE DC N$'92:9:99 daed 2 O"$*e! 92)

W$!.#n% Da-' A dy eBcludin' "turdys nd "undys on which %ns nd finncil

institutions re open in the city or municiplity where the principl offices of the

#ret *pertor re locted. (Added pe! DOE DC N$' 90:90:9993 daed Ma!"h

90? and /+!he! amended pe! DOE DC N$' 90:9:993)

Wh$,esa,e E,e"!#"#- Spot market (WESM)' The electricity mret est%lished %y

the OE in ccordnce with the Act.

WESM Pa!#"#pans. All $eneration Companies! istri'ution tilities "uppliers

A''re'tors End:users the %RA&SCO or its uyer or (oncessionire IPP

Administrtors nd other entities uthori5ed %y the ERCto prticipte in the WESM in

ccordnce with the Act.

WESM R+,es' The detiled rules tht 'o$ern the dministrtion nd opertion of the

WESM.@$na, Ene!%- P!#"e. An e3+ante or e3+post ,onal ener*y price.




@$na, Rese!5e P!#"e. The price for reserve in prticulr supply 5one nd tradin*

interval determined in ccordnce with cluse 3.10.10.

@$na, Rese!5e Se,emen +an#-. The mount of reser$e deemed to h$e %een

supplied %y reser$e supplier in prticulr reser$e re'ion nd tradin* interval

determined in ccordnce with cluse 3.13.>.




APPENDICES

APPENDI A

APPENDICES TO CHAPTER 0

Append# A' In/$!ma#$n $ *e S+pp,#ed 1#h O//e!s $ S+pp,- and $

B+- E,e"!#"#-

A' 6ene!a#$n O//e!

7enertion offers<

"hll include the loction of the connection point nd rele$nt market net#ork

nodeC

% "hll include the pricin* ,one of the connection point!

c #y include up to ten 10 ener*y o//er %locs per ''re'te unit. The

mBimum com%ined cpcity of *eneration nd reserve o//ers must not %e less

thn the mBimum $il%le cpcity of the 'enertor. (As amended *- DOE

DC N$' 998:9:999 daed 9 an+a!- 998)

d "hll %e for minimum %loc si5e of one 1 #!C (As amended *- DOE DC N$'

90:90:9992 daed Ma!"h 90)

e "hll h$e monotoniclly incresin' prices strtin' from ,ero *eneration

f #y include ne'ti$e pricesC

' "hll include mBimum upDdown ramp rates

h "hll include $lidity period of offers e.'. $lid for specified period or $lid

until offer is re$ised.C nd

i "hll include n opertin' rn'e upper nd lower limit.

A' Rese!5e O//e!s

Re'ultion reser$e offers from 7enertors shll consist of<

A mBimum response le$el for the rele$nt reser$e cte'ory #!C

% A minimum nd mBimum ener*y dispatc le$el #! t which ny A7( reser$e

response will %e $il%leC

c =p to 3 reser$e offer %locs per ''re'te unit #!D%locCd A minimum %loc si5e of one 1 #!C


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e #onotoniclly incresin' prices strtin' from 5ero for the first offer %loc

which shll correspond to the mndtory reserve cp%ility re4uired from tht

$eneration Company under its connection 'reementC nd

f "hll include $lidity period of reserve o//ersC nd

(ontin'ency reserve o//ers from $eneration Companies shll consist of<

A mBimum response le$el for the rele$nt reserve cate*ory #!C

% A minimum ener*y dispatc le$el #! t which tht mBimum reserve

response will %e $il%leC

c =p to 3 reserve offer %locs per ''re'te unit #!D%locC

d A minimum %loc si5e of one 1 #!C(As amended *- DOE DC N$' 90:90:

9992 daed Ma!"h 90)

e #onotoniclly incresin' prices strtin' from 5ero to the first offer %loc which

shll correspond to the mndtory reserve cp%ility re4uired from tht

$eneration Company under its connection 'reement.

f "hll include $lidity period of reserve o//ers nd

' *pertin' rn'e upper nd lower limit

(ontin'ency reserve o//ers from (ustomers shll consist of< (As amended *- DOE DC

N$' 90:90:9992 daed Ma!"h 90)

h A mBimum response le$el for the rele$nt reserve cate*ory #!C

i A mBimum proportion of the forecstDsceduled load which my%e

interrupted

=p to 3 reserve o//er %locs #!D%loc

A minimum %loc si5e of one 1 #!C

l #onotoniclly incresin' pricesC nd

m "hll include $lidity period of reser$e offers.

A'0 Demand B#ds

&emnd %ids<

"hll h$e up to 10 %id %locs per te:off pointC

% "hll h$e minimum %loc si5e of one 1 #!C

c "hll h$e monotoniclly decresin' pricesC

d "hll strt from 5ero offteC












e #y h$e %id prices tht re ne'ti$eC nd

f "hll include $lidity period of %ids.

Append# A' In/$!ma#$n $ *e S+pp,#ed *- Ne1$!. Se!5#"e P!$5#de!

Ne1$!. Cha!a"e!#s#"s

#ost of these informtion will %e supplied s stndin' dt which will %e updted only

s re4uired for tradin* interval.

&et#ork Service Providers dt su%mitted re to consist of<

Topolo'y of the market net#ork model

% Impednces of lines nd other system componentsC

c -oss functions for ech line nd system component eBpressed s 4udrtic

functionC nd

d -imits on lines nd other system components includin'<

1 Therml limits for norml opertionsC

2 Therml o$erlod limits of specific durtionC nd

3 (ontin'ency limits.

e -imits on the opertion of ,L&( e4uipment




APPENDI B

APPENDICES TO CHAPTER 2

Append# B' Mee!#n% Re%#se!

B' 6ene!a,

The meterin* re*ister forms prt of the meterin* data'ase nd holds meterin*

informtion reltin' to meterin* installations.

The purpose of the meterin* re*ister is to fcilitte<1 The re'istrtion of connection points meterin* points nd ffected

PrticipntsC

2 The $erifiction of complince with the WESM RulesC nd

3 The udit flow of chn'es to the re'istered informtion.

B' Mee!#n% !e%#se! #n/$!ma#$n

#eterin' informtion to %e contined in the meterin* re*ister should include

such informtion s the Market Operator considers reson%ly necessry nd

%y wy of eBmple my include the followin'<

Meter identifiction<

1 Meterin* installation identifiction num%erC nd

2 Identifiction of e4uipment relted to nd ssocited with the

meterin* installation.

% -oction in spot market

1 Trnsmission or distri%ution connection point identifictionC nd

2 &etils of the site t which the meter is locted includin' the

owner of the site.

c Associted prties<

1 Meterin* data 'ency identifictionC

2 Meterin* Services Provider identifictionC

3 #ret %radin* Participant settlin' ccount identifictionC

> 5ocal Supplier identifictionC nd

? Rele$nt &et#ork Service Provider identifiction.




d &t $lidtion nd su%stitution processes 'reed %etween

ffected Prticipnts includin'<

2 Al'orithmsC

3 &t comprison techni4ues

> Processin' nd lrmsC nd

? Alternte dt sources.

Append# B' Insa,,a#$n

Ech installation data'ase shll contin the followin' instlltion informtion

nd such other instlltion informtion s specified %y the Market Operator .

Meterin* Point reference detils includin'

1 -oction nd reference detils e.'. drwin' num%ersC

2 "ite identifiction nmesC

3 "tndrd e4uipment identifiction num%erin' "EI+ in

ccordnce with the $rid Code and istri'ution Code.

> &etils of a//ected Participants ssocited with the #eterin'

pointC nd

? The Meterin* Services Provider

% The identify nd chrcteristics of meterin' e4uipments includin'<

2 "eril num%ersC

3 Meterin* installation identifiction nmeC

> Meterin* installation types nd modelsC

? (urrent test nd cli%rtion pro'rmme detils test results nd

references to test certifictes s re4uired under the $rid Code


6 (li%rtion t%les where pplied to chie$e meterin' instlltion

ccurcy re re4uired under the 7rid (ode nd &istri%ution (odeC

nd

@ &t re'ister codin' detils.

c &t communiction detils includin'C

Telephone num%ers or fre4uency detils in cse of telemetric

e4uipment for ccess to dt.

% (ommuniction e4uipment type nd seril num%ers.

c (ommuniction protocol detils or referencesC




d &t con$ersion detilsC

e =ser identifiction nd ccess ri'hts nd

f N!riteO pssword to %e contined in hidden or protected

fields.




APPENDI C

APPENDICES TO CHAPTER ;

Ba".%!$+nd N$e $

Append# C : C,ass#/#"a#$n $/ R+,es

The followin' c'round +ote is included for informtion purposes only : it

does not form prt of the WESM Rules. It is intended to pro$ide 'enerl

indiction of the %sis on which the clssifiction of the WESM Rules hs %een

mde nd 'uide only for the clssifiction of future new Rules.

The A"

The Act pro$ides for the ERC to h$e responsi%ility for<

The enforcement of the WESM Rules nd s conse4uenceC

% The imposition of fines nd penlties for %reches of the WESM Rules.

To fcilitte its responsi%ility in this re'rd the WESM Rules h$e %een

clssified into three cte'ories s follows<

Administrti$e penlty pro$isionsC

% (onduct pro$isionsC

c Re'ultory pro$isions.

Althou'h the initil clssifiction of the WESM Rules is included s prt of this

c'round +ote for informtion purposes only to pro$ide n indiction of the

nture of pro$isions which re liely to %e clssified into ech cte'ory it is

importnt to note tht re'ultions mde under the Act my %e mde which

lter this initil clssifiction. The clssifiction of the WESM Rules is $ery

much policy issue which my in$ol$e consider%le consulttion. ,owe$er

this clssifiction my ssist in tht process or %e dopted if tht process does

not proceed.

The t%le %elow summri5es the informtion contined in this c'round +ote.

C,ass#/#"a#$n $/ R+,es Wh$ "an *!#n% a"#$n Na+!e $/ san"#$n




(#mp$sed *- ERC)

Administrti$e Penlty

Pro$isions

ER( Penlties

Re'ultory Pro$isions ER( Inunction declrtion

(onduct Pro$isions Any person

&m'es inunction

declrtion

Provisions Requiring Classification

Those pro$isions of the WESM Rules which impose n o%li'tion on person h$e %een

clssified. !here pro$ision of the WESM Rules llows discretion on the rele$nt

person s to whether or not to do somethin' tht pro$ision hs not %een clssifieds it will not %e %rech of tht pro$ision if the person decides not to perform in

ccordnce with tht pro$ision.

Administrative Penalty Provisions

Administrti$e penlty pro$isions re pro$isions the %rech of which is re'rded s

most serious. 7enerlly they re pro$isions which shll %e complied with in order to

ensure tht the spot market nd the WESM Rules wor properly.

Administrti$e penlty pro$isions re enforce%le only %y the ERC who my %rin'

proceedin's for the le$y of dministrti$e penlty i.e. fine for n offence pro$%le

on the %lnce of pro%%ilities. Any person cn d$ise the ERC of n lle'ed %rech of

dministrti$e penlty pro$ision lthou'h it is up to the ERC to te the mtter

further. (luse @.2.2 of the WESM Rules lso pro$ides mechnism %y which the

Market Operator on its own ccount or on the d$ice of WESM mem'er cn decide

to %rin' n lle'ed %rech to the ttention of the ERC.

Conduct Provisions

A conduct pro$ision is pro$ision in$ol$in' n o%li'tion to %e performed %y person

where the conse4uences of %rech re less serious thn for dministrti$e penlty

pro$ision. #ost pro$isions of the WESM Rules tht re not of n dministrti$e nture

or re to %e performed %y the Market Operator will %e clssified s conduct

pro$isions. ,owe$er 'enerlly n o%li'tion to py money includin' one imposed on

the Market Operator will %e clssified s conduct pro$ision.




(onduct pro$isions re enforce%le %y ny person %y %rin'in' inunction proceedin's.

In ddition nyone who suffers loss or dm'e %y conduct in contr$ention of

conduct pro$ision will lso h$e sttutory ri'ht to reco$er the loss or dm'e in

ci$il ction 'inst the person whose %rech of the WESM Rules cused it. ,owe$er

this ri'ht is su%ect to the dispute resolution procedures in cluse @.3 which re4uire

Prticipnt to te ny ction reltin' to the WESM Rules in ccordnce with those

WESM RULES Unofficial Copy October 2014 1

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