ERC clarifies status of TransCo, PEMC and NPC's pending petitions

The Energy Regulatory Commission (ERC) will resolve the National Transmission Corporation’s (TransCo) application for a certificate of authority to be a metering service provider for the Wholesale Electricity Spot Market (WESM) by June of this year.

Said pronouncement was made in the light of the statements made by TransCo in some dailies published on May 23, 2006 that it has appealed to the ERC to approve its application “to install meters in both the generation and distribution sides to successfully operationalize retail competition”.

“TransCo must understand that the authorization to become a metering service provider lies on the promulgation of the Guidelines for the Issuance of Authority for WESM Metering Service Providers. The draft guidelines was subjected to comments from the electricity stakeholders through public consultations. This is part of the due process that the ERC must observe,” Chairman Rodolfo B. Albano, Jr. clarified. However, additional written comments have been continuously coming in until last month which the ERC needs to look into. Nonetheless, the ERC expects to finalize said guidelines the soonest possible time.

On the other hand, TransCo President Alan T. Ortiz need not worry about the final determination of the maximum allowable revenue (MAR) that will be issued by the ERC. The hearings were just completed last April and is still within the agreed timelines set for the approval of the MAR on June 16, 2006.

With regard to the application for the sale of TransCo’s sub-transmission assets, the ERC has only received thirteen (13) of such applications, contrary to Mr. Ortiz’ claim of twenty (20). Three (3) had already been resolved, four (4) are awaiting formal offers of evidence, and the others will be scheduled for hearing.

On the concern raised by President Cyril del Callar of the National Power Corporation (NPC) regarding the Ancillary Service Procurement Plan (ASPP), the ERC has already approved the same last March 29, 2006. However, on May 18, 2006, TransCo filed a “Motion for Reconsideration” (MR) which will entail a thorough evaluation prior to its resolution.

“The ERC remains on top of the situation and sees to it that applications brought before it are resolved expeditiously with due regard to the appropriate procedures,” Chairman Albano stressed.