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TRANSCO's response to comments on the proposed OATS

Notice is hereby given that the proposed Rules, Terms And Conditions For Open Access Transmission Service (OATS) and Proposed Rates, Terms and Conditions Of Ancillary Services drafted by applicant National Transmission Company (TRANSCO) is scheduled for a series of public consultation on May 12 to 14, 2003 to start at nine o’clock in (9:00 A.M.) in the morning of each day at the ERC Hearing Room, 15th Floor, Pacific Center Building, San Miguel Avenue, Ortigas Center, Pasig City.

All interested parties may submit their comments (both hard and soft copies) on the proposed guidelines on or before April 21, 2003. Only parties who have filed their written comments on or before the prescribed period would be allowed to participate in the above scheduled public consultation. The proposed guidelines may be photocopied, at cost, during the regular office hours at the ERC Main Office at the above-mentioned address or may be downloaded from the ERC Website at www.erc.gov.ph.

II. PROCEDURE FOR PUBLIC CONSULTATION

WHEREAS, pursuant to Section 8 of Republic Act No. 9136, the National Transmission Corporation, hereinafter referred to as TRANSCO, was created to assume the electrical transmission function of the National Power Corporation (NPC). The TRANSCO shall assume the authority and responsibility of NPC for the planning, construction and centralized operation and maintenance of its high voltage transmission facilities, including grid interconnections and ancillary services procurement.

WHEREAS, the Energy Regulatory Commission (ERC) was mandated to ensure that TRANSCO shall provide open and non-discriminatory access to its transmission system to all electric power industry participants. Pursuant to said mandate, the ERC, in its Decision on the Approval of the Revised Unbundled Power Rates dated June 26, 2002 in ERC Case No. 2001-901, directed TRANSCO to file the Rules, Terms and Conditions for Open Access Transmission Service including pro-forma Agreements and the Unbundled Rates, Terms and Conditions of Ancillary Services, hereinafter referred to as the OATS Rules, for brevity.

WHEREAS, on August 16, 2002 and February 14, 2003, TRANSCO filed its proposed OATS Rules and Revised OATS Rules respectively, in compliance with the ERC’s Decision dated June 26, 2002.

WHEREAS, the Department of Energy (DOE) endorsed the proposed OATS Rules considering that it is consistent with its mandate to provide a mechanism for the integration, rationalization and coordination of the various energy programs of the Government. TRANSCO’s submission of the revised OATS Rules has satisfactorily complied with the requirements of the ERC. Hence, ERC recommended that the usual Public Consultation Process be undertaken.

WHEREFORE, the Commission has resolved to adopt the following procedure for the orderly and expeditious conduct of said Public Consultation:

Procedure:

The ERC posted on March 18, 2003 the proposed OATS Rules, Terms and Conditions on its website at www.erc.gov.ph. Electronic copies (in CD Rom) are available, at cost, for distribution to interested parties thru ERC’s Market Operations Service (MOS) Group or TRANSCO’s Corporate Planning Group.

All comments and questions shall be sent in accordance with the following order of priority:
1. E-mail at spotmarket@erc.gov.ph attention to Mr. Oliver O. Cruz and/or Ms. Judith L. Mangosing;
2. Mail (in soft and hard copies) addressed to Mr. Edgar F. Samonte, Officer-in-Charge, Market Operations Service, Energy Regulatory Commission, 12/F, Pacific Center Bldg., San Miguel Avenue, Pasig City.

Only those who submit their valid comments or questions by April 21, 2003 shall be considered as parties of record. All comments or questions will be E-mailed to TRANSCO for its comments and will be published on the website upon receipt.

Parties of record are requested to submit all their valid comments or questions as early as possible in order for: (1) the TRANSCO to have adequate time in providing answers to all the submitted comments; and (2) the ERC to have sufficient time for consolidating all the submitted comments.

All written comments and questions provided shall be considered read and need not be reiterated further during the public consultation.

The public consultation shall be conducted for three (3) days from May 12 to 14, 2003 and shall start at exactly 9:00 A.M until 4:00 P.M. (break will be from 12 PM to 2 PM). No requests for adjournment or delay of the verbal consultation shall be entertained unless justified. All parties of record should have read the material posted on the ERC website prior to the public consultation.

The parties of record should limit their participation in the verbal consultation to new matters or questions. The ERC shall reserve its right to disregard comments or questions which have been previously raised and answered. However, additional discussion of detailed points is encouraged.

Following the public consultation period, the MOS shall submit to the ERC its final evaluation within May 15 to 23, 2003 in consideration of all the comments provided by the parties of record. The Commission is then expected to give its decision on or before June 15, 2003.

III. PROPOSED RULES, TERMS AND CONDITIONS

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Proposed Rules, Terms and Conditions for the provision of Open Access Transmission Service (OATS)

System Impact Study: PNOC-EDC’S 42-MWE Wind Power Generation Project in Ilocos Norte

Appendices to the OATS Rules: Sample Billing Computations

IV. COMMENTS ON THE PROPOSED RULES, TERMS AND CONDITIONS

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TRANSCO's response to comments on:
a. Module A: General Terms and Conditions
b. Module B: Connections
c. Module C: Power Delivery Service
d. Module D: System Operator Functions
e. Module E: Metering
f. Module F: Rates, Methodology, Billing and Settlement
g. Other Issues
h. Annex II: Ancillary Services Purchase Agreement