Comments on the Price Determination Methodology for the WESM
Notice is hereby given that the Application for the Approval of the Price Determination Methodology (PDM) for the Philippine Wholesale Electricity Spot Market (WESM) filed by the Department of Energy (DOE) on June 26, 2003 is scheduled for a series of public consultation on February 12 and 13, 2004 to start at nine o’clock (9:00 AM) 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 the proposed Guidelines on or before January 19, 2004. 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.
ERC CASE NO. 2003-356
IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF THE PRICE DETERMINATION METHODOLOGY (PDM) FOR THE PHILIPPINE WESM
WHEREAS, pursuant to Section 30 of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (“EPIRA”) of 2001, within one (1) year from the effectivity of the Act, the Department of Energy (“DOE”) shall establish a wholesale electricity spot market composed of the wholesale electricity spot market participants;
WHEREAS, jointly with the electric power industry participants, the DOE shall formulate the detailed rules for the wholesale electricity spot market (“WESM”) wherein the Price Determination Methodology (“PDM”) contained in the said rules shall be subject to the approval of the Energy Regulatory Commission (“the Commission”);
WHEREAS, the WESM Rules was promulgated by the DOE on 28 June 2002 with the joint endorsement by the electric power industry participants;
WHEREAS, immediately after the promulgation of the Rules, the WESM Technical Working Group (“TWG”), chaired by the DOE and composed of the Government and industry participants, was created for the purpose of ensuring a smooth transition from promulgation of the Rules to actual commercial operation of the spot market;
WHEREAS, the development of the PDM commenced on October 2002 and since then, various meetings have been held by the TWG to discuss and solicit comments, views, suggestions on the proposed PDM;
WHEREAS, on 26 June 2003, the DOE, through Counsel of the Market Operations (MO)-TRANSCO, filed its application for the approval of the PDM with the endorsement of the TWG;
WHEREAS, the Commission issued an ORDER on 23 July 2003 directing the applicant to submit within one (1) month, additional documents of which applicant moved for extension of time for the submission of the required documents;
WHEREAS, on 22 October 2003, the applicant DOE, through Counsel of the MO-TRANSCO finally complied with the aforesaid ORDER;
NOW THEREFORE, IN VIEW OF THE FOREGOING, the Commission has resolved to adopt the following:
RESOLVED, that the Commission finds said Compliance by applicant sufficient in form and substance;
RESOLVED FURTHER, that the PDM is to be posted in the Commission website, www.erc.gov.ph for the purpose of soliciting comments from the industry participants;
RESOLVED FINALLY, that below are the procedures for the orderly and expeditious conduct of Public Consultation for the PDM.
PROCEDURES FOR PUBLIC CONSULTATION:
• The Commission shall post the proposed Price Determination
Methodology for the Philippine WESM on its website at
www.erc.gov.ph.
• All comments and questions shall be sent in the following order of priority:
1. E-mail at spotmarket@erc.gov.ph attention to Mr. Patrick G. Fontanilla and/or Ms. Judith L. Mangosing; and
2. Mail addressed to Director Edgar F. Samonte, Attention: Atty. Debora Anastacia T. Layugan, Market Operations Service, Energy Regulatory Commission, 12/F, Pacific Center Bldg., San Miguel Avenue, Pasig City (in soft and hard copies).
• Any party who submits its valid comments or questions until 19 January 2004 shall be considered a Party of Record. All comments or questions will simultaneously be sent via electronic mail to DOE/Market Operator and shall correspondingly be published on the Commission website upon receipt.
• All Parties of Record are requested to submit their valid comments or questions as early as possible in order for (1) DOE/MO to have adequate time in providing its reply to all the submitted comments; and (2) the Commission to have sufficient time to reply, if necessary, to said comments and to consolidate all the submitted comments.
• Any written comments and questions provided shall be considered read and need not be reiterated during the Public Consultation except for clarificatory purposes.
• The Public Consultation is scheduled on 12 and 13 February 2004 for two (2) consecutive days and shall start at exactly 9:00 A.M until 4:00 P.M. (break will be from 12 NN to 1:30 PM). No irrelevant requests for adjournment or delay of the verbal consultation shall be entertained. All Parties of Record are presumed to have read and have examined the issues contained in the materials posted on the Commission website prior to the Public Consultation.
• During the Public Consultation, any Party of Record shall limit its participation in the verbal consultation to new issues raised which shall necessitate further comments. The Commission reserves its right to limit comments or questions previously raised and answered. Additional discussion of detailed points is however encouraged.
• Following the public consultation period, the Market Operations Service shall submit its final evaluation to the Commission for its approval.
Draft PDM Toolkit for the WESM, Annex A
Draft PDM Toolkit for the WESM, Annex B
Draft PDM Toolkit for the WESM, Annex C
Draft PDM Toolkit for the WESM, Annex D
COMMENTS ON THE PRICE DETERMINATION METHODOLOGY FOR THE
WESM
1. CEPALCO
2. MERALCO
3. First Gas
5. PSALM
MARKET OPERATOR'S POSITION TO THE COMMENTS ON THE PDM
January 12, 2004