ERC seeks comments on the amendments of TWRG, OATS and ASPP

The Energy Regulatory Commission (ERC) approved on 26 January 2009 the posting of the proposed amendments to the (1) Transmission Wheeling Rates Guidelines (TWRG); (2) Open Access Transmission Service (OATS); and (3) Ancillary Service Procurement Plan (ASPP) in order to elicit comments thereon from the industry stakeholders. To harmonize the guidelines with other existing laws and rules, the ERC came up with the proposed amendments.

The TWRG was earlier adopted by the ERC to embody the alternative rate setting methodology for TRANSCO or its concessionaire. Under the proposed amendments, the TWRG will be renamed as Rules for Transmission Wheeling Rates (RTWR). The amendments will focus on these items: rate formulae, translation of revenue cap into rates, side constraints and reopening and adjustment of events.

The OATS outlines the responsibilities of transmission provider, including how the revenue cap in TWRG will be translated into rates. The OATS also defines the functions of the System Operator as specified in the Grid Code and the Wholesale Electricity Spot Market (WESM) Rules. Amendments to the OATS will focus on minimum charges, customer segments, and connection assets, among others.

The ASPP for TRANSCO was approved by the ERC on 29 Mach 2006. Ancillary Services are the necessary support services to the transmission capacity and energy towards maintaining power quality, reliability and security of the grid. The proposed amendments to the ASPP include, among others, (1) the renaming of the 5 ancillary services; (2) major addition of the ability of qualified interruptible loads to contribute to a reasonable proportion of contingency and dispatchable reserves; and (3) preference on using ancillary services which are connected to the SCADA/EMS control system of TRANSCO so they can be remotely controlled by the System Operator.

The proposed amendments will be subjected to Expository Hearings in Luzon on February 17 to 18, 2009 and on February 19 to 20, 2009 in Cebu for the Visayas and Mindanao stakeholders. The Public Consultations thereon will be conducted at the ERC Head Office on March 19 to 20, 2009.

“The ERC encourages active participation of the public to ensure that policies and guidelines it shall adopt are products of concerted efforts of concerned parties,” Chairperson Ducut said.


Amended TWRG

Amended OATS

Amended ASPP

February 10, 2009

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