Comments on the proposed Open Access Transmission Service (OATS)

Notice is hereby given that Module F of the proposed Rules, Terms and Conditions for Open Access Transmission Service (OATS) and the proposed Rates, Terms and Conditions of Ancillary Services drafted by applicant National Transmission Corporation (TRANSCO) is scheduled for public consultation on September 24 and 25, 2003 starting at nine o’clock (9:00 A.M.) in the morning 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 Module F of the proposed guidelines on or before September 11, 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.

IN THE MATTER OF THE ADOPTION OF THE PROCEDURES FOR CONSULTATION ON THE PROPOSED RULES, TERMS and CONDITIONS for the PROVISION OF OPEN ACCESS TRANSMISSION SERVICE and PROPOSED RATES, TERMS AND CONDITIONS FOR ANCILLARY SERVICES

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.

WHEREAS, from May 12 to May 14, 2003, public consultations were held at the ERC Hearing Room, as a result of which changes were made on Modules A to E of the OATS Rules were made while Module F thereof was completely revised.

WHEREAS, as a result of the complete revision of Module F of the OATS Rules the Commission deems it necessary to submit said Module F to Public Consultation.

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


Procedure:

The ERC shall post the revised Module F of 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 Regulatory Operations Service (ROS) 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 tariffsrates@erc.gov.ph attention to Dir. Anthony Alden S. Aguilar and/or Ms. Alma Clemente;

2. Mail (in soft and hard copies) addressed to Mr. Anthony Alden S. Aguilar, Director, Regulations Operations Service, Energy Regulatory Commission, 17/F, Pacific Center Bldg., San Miguel Avenue, Pasig City.


Only those who submit their valid comments or questions by September 11, 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 on September 24 and 25, 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 ROS shall submit to the ERC its final evaluation of the Revised OATS Rules.

Pasig City, 28 August 2003.

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

Discussions on Ancillary Services


Comments as of September 16, 2003

Cagayan Electric Power & Light Company, Inc.

Dagupan Electric Corporation

Manila Electric Company

Davao Light & Power Company

Iligan Light & Power Company

September 09, 2003