ERC Receives Application of TransCo for Revenue Reset

The Energy Regulatory Commission (ERC) conducts public consultations and hearings nationwide on the National Transmission Corporation’s (Transco’s) Proposed Revenue Cap after it received the application filed by Transco and the Power Assets and Liabilities Management Corporation (PSALM) on September 22, 2005.

These public consultations and hearings are part of the Regulatory Reset Process for the second regulatory period that covers the year 2006 to 2010 indicated in the Transmission Wheeling Rates Guidelines (TWRG), a Performance-based Rate-Setting Methodology promulgated by the ERC.

“The ERC will seek to determine the maximum Annual Revenue Cap for Power Transmission which is most reasonable and represents the true cost of service”, ERC Chairman Rodolfo B. Albano , Jr. said.

In this regard, the ERC enjoins the public and other interested parties’ participation in the public hearings.

The first set of hearings was for expository purposes and held on the following dates and venues:

  1. October 17, 2006 - Davao City
  2. October 18, 2005 - Main Office
  3. October 20, 2005 - Cebu City

Another set of public hearings for presentation of evidence and witnesses by the applicants, oppositors and intervenors will be held on the following schedules and venues:

  1. November 8, 2005 (9:00 A.M. – 12:00 P.M. and 1:00 P.M. -3:00 P.M.) at Waterfront Insular Hotel, Lanang, Davao City
  2. November 10, 2005 (9:00 A.M. – 12:00 P.M. and 1:00 P.M. – 4:00 P.M.) at Holiday Plaza Hotel, F. Ramos St., Cebu City; and.
  3. November 11, 2005 (10;00 A.M. – 12:00 P.M. and 1:00 P.M. -5:00 P.M.) at the ERC Hearing Room, 15th Floor, Pacific Center Bldg., San Miguel Avenue, Ortigas Center, Pasig City

“The application at bar has countrywide scope, thus, the ERC is conducting hearings in the main island of Luzon, Visayas, and Mindanao to give stakeholders in remote areas a chance to participate in the discussions that will help ERC in the revenue reset process,” the ERC chief explained.

The ERC advises all interested parties to submit their written comments/oppositions (soft copies may be sent to info@erc.gov.ph) on TransCo and PSALM’s application not later than November 18, 2005 to any of the offices of the ERC located at:

  1. Head Office: Pacific Center Bldg., San Miguel Avenue, Ortigas Center, 1600 Pasig City
    Phone: (632) 914-5000 local 114
    Fax: (632) 631-5818
  2. Visayas Field Office: Rm 303 Machay Building. Gorordo Ave, 6000 Cebu City
    Phone: (032) 234-4589
    Fax: (032) 234-4597
  3. Mindanao Field Office: Mintrade Bldg., Monteverde Ave. cor Sales St. , 8000 Davao City
    Phone: (082) 224-1575
    Fax: (082) 227-2035.

After these series of public consultation and hearings, the ERC will issue a Draft Determination of the Revenue Cap by December 16, 2005. This Draft Determination will also be subject to public consultations and hearings in the first quarter by 2006. ERC will make a final determination of the Revenue Cap by April 30, 2006.

October 25, 2005

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