Alternative Rate-Setting Methodology for TRANSCO

Pursuant to Section 43(f) of Republic Act No. 9136, otherwise known as the Electric Industry Reform Act of 2001, the Energy Regulatory Commission (ERC) is authorized to adopt alternative forms of internationally-accepted rate-setting methodology as it may deem appropriate. The rate-setting methodology so adopted and applied must ensure a reasonable price of electricity on non-discriminatory rates.

The ERC hereby gives notice of its intent to adopt an alternative form of rate-setting methodology for TRANSCO and any future concessionaire of TRANSCO. The ERC will be issuing its proposed rules establishing the form of rate-setting methodology in the near future. The ERC will mail copies of the proposed rules to all parties of record and post the proposed rules on its website at www.erc.gov.ph.

Any person with an interest to become a party of record shall formally make such written request to the ERC, Attention of Atty. Marina C. Bugayong or Ms. Maurisa Moncada of the Regulatory Operations Services, stating therein his reason/s for his interest, within 20 days from the date of this notice. Only parties of record are allowed to submit written comments to the forthcoming case. Likewise, only parties of record who have filed written comments will be allowed to participate in a public consultation which ERC will schedule on a future date.

October 23, 2002