ERC directs DUs to update system loss data

The Energy Regulatory Commission (ERC) directed the distribution utilities (DUs) to update their system loss data and deferred the consideration of the DUs’ applications for the establishment of new system loss caps. The directive is contained in Resolution No. 19, Series of 2007 issued by the ERC on 26 June 2007 entitled “A Resolution Embodying the Energy Regulatory Commission’s Policy for Replacing Existing System Loss Caps of Distribution Utilities”.

“Preliminary evaluation on the petitions for approval of system loss caps filed before the ERC disclosed insufficient data to enable the ERC to make a reasonable determination of the new system loss caps for the DUs,” ERC Chairman and CEO Rodolfo B. Albano, Jr. said. “Thus, the ERC sees the need for the DUs to update their data for the next three (3) years starting from the effectivity of the said Resolution,” Chairman Albano added.

As provided in the said Resolution, private DUs’ treatment of system loss and the setting of new caps will in the meantime be incorporated in the ERC’s evaluation of their respective applications as entrants to the Performance-Based Regulation (PBR). For the ECs (electric cooperatives), however, the ERC will consider incorporating its policies on the treatment of system loss and the setting of new system loss caps in the new rate-making methodology to be adopted for them.

“The DUs have to build up the pertinent data bases during the three-year deferment period in preparation for the filing of their petitions wherein the treatment of system loss and setting of any caps will be incorporated,” Chairman Albano concluded.

 

July 10, 2007