2010 annual report - energy regulatory commission ar.pdf · 7 energy regulatory commission/annual...

2010 Annual Report

Energy Regulatory Commission/Annual Report 2010

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Table of Contents Page

The Chairperson’s Message 3The ERC Organizational Structure 5The Commission Officials 6List of 28 Resolutions, Rules, Regulations and Policies

Promulgated in 20107

Enforcement of Rules 9Consumer Affairs 40Other Accomplishments 41Challenges Ahead 47Financial Highlights 50Directory of ERC Officials 54Annexes 57Annex 1 - Summary of the 28 Rules, Regulations, Guidelines

and Policies Promulgated in 201059

Annex 2 - Summary of the 178 Cases Decided in 2010 73Annex 3 - Status Report of 620 Cases Filed in 2010 123

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MESSAGE FROM THE CHAIR

ERC: A Strong and Independent Regulator

The year 2010 was a defining year for the En-ergy Regulatory Commission (ERC) when it fully evolved from being a challenged and struggling regulator born in 2001 with the enactment of the Electric Power Industry Reform Act (EPIRA or Act) to become a strong and independent regulator of the electricity industry. Year 2010 was a rewarding year for the ERC as it achieved remarkable maturity as seen from the installation of a strong framework of policies, effective and timely discharge of func-tions, and successful execution of the plans, poli-cies, and strategies.

The theme for the year 2010 was “Vibrant Competition” with the objective of providing a stable environment for competition where there are no barriers to entry and there is vigilant surveillance. Thus, in 2010 the ERC strived to align its work programs to ensure that the necessary rules and regulations are promulgated and enforced, and fines and penalties for any non-compliance with or breach of the EPIRA are imposed. Likewise, the ERC prepared all the necessary rules, regulations, and procedures in time for the commencement of the open access and retail competition.

Among the most notable achievements in 2010 was the promulgation of the Rules Imple-menting the Senior Citizens Discount and Subsidy on Electricity Consumption under Sections 4 and 5 of Republic Act No. 9994. Under the said Rules, senior citizens, who are persons 60 years old and above, can enjoy the five percent (5%) discount on their monthly electricity bill granted under R.A. 9994, An Act Granting Additional Benefits and Privileges to Senior Citizens, Further Amending the Republic Act No. 7432, As Amended, Otherwise Known as “An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes.” The discount extends to nursing homes for senior citizens that are operated by a government institu-tion or non-stock, non-profit domestic organizations. Such organizations are entitled to 50% discount on their monthly electricity bill.

We also issued the Rules for the Power Supply Option Program (PSOP) to provide the regulatory framework to ensure the effective implementation of the PSOP in providing an additional choice of supply to qualified customers. The PSOP is the latest addition to the existing supply programs ERC promulgated such as the Customer Choice Program of MERALCO and the One Day Power Sale (ODPS) of the NPC. It made available to Luzon grid electricity consumers with a monthly average peak demand of 1 MW for the past 12 months preceding the implementation of the said program.

Likewise, it was in 2010 that the ERC approved the Feed-In Tariff (FIT) Rules pursuant to Section 7 of Republic Act No. 9153, An Act Promoting the Development, Utilization and Commercialization of the Renewable Energy Resources and for Other Purposes,


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and Section 5 of its Implementing Rules and Regulations (IRR). The Rules establish the FIT System which is one of the incentive mechanisms in the Renewable Energy Act of 2008 intended to accelerate the exploration and development of renewable energy resources.

It was also in the year 2010 that the ERC entered into a Memorandum of Understand-ing (MOU) with the University of Asia and the Pacific (UA&P) in pursuit of achieving national competitiveness. The MOU seeks the institutional strengthening of the ERC through staff capacity building. The ERC, given a limited budget for the training of its staff, adopted a strategy involving alliances with key academic institutions to fulfill the objectives of the EPIRA. Alliances with the key academic institutions enhance ERC’s capabilities in terms of governance, management, technical and legal skills in the name of better public service. The partnership with the UA&P focuses on economic and market supply and demand dynamics. This added to the ERC’s allies with the academe. The ERC forged partnership agreements with the University of the Philippines in 2002 with a focus on engineering research and development; Mindanao Polytechnic State Col-lege (MPSC) in 2004 for energy projects and extension services; and Asian Institute of Management (AIM)-Policy Center in 2008 for strategic planning and managerial skills enhancement.

In line with our mandate to promulgate, approve and enforce rules, regulations, resolu-tions and policies, including issuances of permits and licenses, the ERC issued twenty eight (28) Resolutions, rendered two hundred seventy-nine (279) Decisions, issued one thousand five hundred fifty-three (1,553) Orders, and conducted two thousand one hundred sixty-six (2,166) Hearings in various provinces and localities all over the country. In terms of the issuance of licenses, the ERC issued two hundred sixty-one (261) Certificates of Compliance (COCs) to Generation Companies and two (2) Retail Electricity Supplier’s (RES) Licenses.

Likewise, in furtherance of the ERC’s objective of promoting consumer interest, the ERC resolved one thousand two hundred twenty-two (1,222) consumer complaints, rendered six thousand nine hundred five (6,905) frontline services, conducted three hundred eighty-five (385) consumer education/information dissemination activities, and tested and calibrated two million, one hundred twenty seven thousand, four hundred six (2,127,406) watt-hour meters, including reference standards.

The figures are truly overwhelming. The tasks are gigantic. Armed with its vision to become Asia’s benchmark of excellence in power regulation, the ERC shall continu-ally brave all the challenges thrown its way and will position itself well for the future by crafting strategies and executing tactical initiatives aimed at the continuous protection and welfare of the electricity consumers. ZENAIDA G. CRUZ-DUCUT Chairperson and CEO

30 April 2011

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Chairperson Zenaida G. Cruz-Ducut, (center) with Commissioners Maria Teresa A.R. Castañeda and Alejandro Z. Barin (left side) and Commissioners Rauf A. Tan and Jose C. Reyes (right side) sitting en banc in one of the public hearings conducted by the Commission.

The ERC Organizational Structure


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The Commission Officials

Jose C. ReyesCommissioner

Rauf A. TanCommissioner

Alejandro Z. BarinCommissioner

Francis Saturnino C. JuanExecutive Director III

Zenaida G. Cruz-DucutChairperson/CEO

Maria Teresa A. R. Castañeda Commissioner

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THE TWENTY EIGHT (28) RESOLUTIONS, RULES, REGULATIONS, AND POLICIES PROMULGATED IN 2010

Resolution No. 1: A Resolution Adopting the Rules for the Power Supply Option Pro-gram (PSOP) (January 25, 2010)

Resolution No. 2: A Resolution Adopting the Amendments to the Distribution Services and Open Access Rules (DSOAR) (February 22, 2010)

Resolution No. 3: Rules for the Registration of the Wholesale Aggregators, as Amend-ed (February 15, 2010)

Resolution No. 4: A Resolution Setting the Installed Generating Capacity per Grid, National Grid and the Market Share Limitations per Grid and the National Grid for 2010 (March 10, 2010)

Resolution No. 5: A Resolution Adopting the Distribution Management Committee (DMC) Significant Incident Reporting Procedures (February 22, 2010)

Resolution No. 6: A Resolution Directing All Distribution Utilities to Remit their Re-spective Proportionate Shares to the Distribution Management Committee’s 2010 Budget (March 10, 2010)

Resolution No. 07: Amending the Rules for the Default Wholesale Supply (DWS) Ar-rangements for the Wholesale Electricity Spot Market (WESM) in the Luzon Grid, as Amended (March 10, 2010)

Resolution No. 08: Adopting the Rules to Govern the Interruptible Load Program (ILP) of Distribution Utilities (DUs) (March 10, 2010)

Resolution No. 09: Adopting the Revised Rules for the Issuance of Certificates of Compliance (COCs) for Generation Companies/ Facilities (March 10, 2010)

Resolution No. 10: A Resolution Adopting A New Timeline for Privately Owned Distri-bution Utilities (DUs) Entering Performance Based Regulation under the Fourth Entry Point (April 6, 2010)

Resolution No. 11: A Resolution Clarifying the Policy on the Treatment of kWh Com-pany Use by Distribution Utilities (May 6, 2010)

Resolution No. 12: A Resolution Adopting the Rules and Procedures in the Revision of the Philippine Distribution Code (PDC) and the Philippine Grid Code (PGC) (May 5, 2010)

Resolution No. 13: A Resolution Adopting the Grid Management Committee’s (GMC) Rules and Procedures of Significant Incident Reporting (May 5, 2010)

Resolution No. 15: A Resolution Resetting the Start of Acceptance Testing to January 2011 (June 15, 2010)

Resolution No. 16: A Resolution Adopting the Feed-In Tariff Rules (July 12, 2010)


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Resolution No. 17: A Resolution Adopting the Valuation Handbook for the Optimized Depreciated Replacement Cost (ODRC) Valuation of System Fixed Assets of Privately Owned Distribution Utilities Operating Under Performance-Based Regulation (PBR) (July 19, 2010)

Resolution No. 18: A Resolution Adopting the Rules to Govern the Submission, Eval-uation and Approval of Lease of Property by Distribution Utilities (July 19, 2010)

Resolution No. 20: A Resolution Setting the Installed Generating Capacity per Grid, National Grid and the Market Share Limitations per Grid and the National Grid for 2010 (October 4, 2010) Resolution No. 21: A Resolution Amending Section 4 of Article 4 and Section 1 of Arti-cle 5 of the Rules Governing the Automatic Cost Adjustment and True-Up Mechanisms and Corresponding Confirmation Process for Distribution Utilities (October 18, 2010) Resolution No. 22: A Resolution Adopting the Rules Governing the Type Approval of Meter Products to be Used in Revenue Metering by Distribution Utilities and Redis-tributors (September 27, 2010) Resolution No. 23: A Resolution Adopting the Rules Implementing the Discounts to Qualified Senior Citizen End-Users and Subsidy from the Subsidizing End-Users on Electricity Consumption Under Sections 4 and 5 of Republic Act No. 9994 (December 15, 2010) Resolution No. 24: A Resolution Suspending the Timelines for the Filing of the Multi-Year Capital Expenditure (CAPEX) Applications of Electric Cooperatives (ECs) Pre-scribed in Section 6.2 (Transitory Provision) of the Amended Rules for the Approval of Regulated Entities’ Capital Expenditure Projects (December 6, 2010) Resolution No. 25: A Resolution Clarifying Article III (Transitory Provision) of the Rules to Govern the Submission, Evaluation and Approval of Lease of Property by Distribution Utilities (December 6, 2010) Resolution No. 26: A Resolution Amending Section 5, Article V of Resolution Nos. 1 and 18, Series of 2009 Adopting the Amendments to the “Guidelines to the Sale and Transfer of Transco’s Subtransmission Assets and the Franchising of Qualified Con-sortiums” (December 15, 2010) Resolution No. 27: A Resolution Amending the Pertinent Provisions of Resolution No. 48, Series of 2006 (A Resolution Summarizing the Applicable Legal Principles and Policies of the Energy Regulatory Commission on End-User Connections) (December 15, 2010) Resolution No. 28: A Resolution Adopting the Amendments to the Magna Carta for Residential Electricity Consumers (November 15, 2010)

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ENFORCEMENT OF RULES

AMENDMENT TO ERC RULES

On October 18, 2010, the ERC denied the petition filed by Manila Electric Com-pany (MERALCO) for the amendment of ERC Resolution No. 16, Series of 2009, specifically formula 9 which is the calculation of the over or under recoveries of the DUs’ system loss rate to account for the true cost of annual system loss based on the monthly system loss figures and the actual monthly per unit cost of purchased power. The ERC did not agree with the formula proposed by MERALCO because it does not provide a gross-up factor. The ERC, however, resolved to issue a Reso-lution adopting a new formula that will address the issue raised by MERALCO.

ANCILLARY SERVICES PROCUREMENT AGREEMENT (ASPA)

1. The ERC approved on March 2, 2010 the ASPA between National Grid Corpo-ration of the Philippines (NGCP) and National Power Corporation (NPC). The approved NPC Ancillary Service rates are as follows:

Grid Luzon Visayas Mindanao*RR, CR and DR (PhP/kW per hour) 1.1805 1.7368 1.3044Reactive Power Support (PhP/mVar/hour) 0.0533 0.0241 0.0295

*RR-Regulating Reserve, CR-Contingency Reserve, and DR-Dispatchable Reserve

The ERC ruled that the rate to be paid by NGCP as ancillary service cost should be passed on to its customers in accordance with the approved Ancillary Services-Cost Recovery Mechanism (AS-CRM).

2. On October 4, 2010, the ASPA between NGCP and Therma Marine, Inc. (TMI) was approved by the ERC. The following are the Ancillary Rates:

Rate Component

Rates(PhP/kW/hour)

Capacity Fee 0.43192Fixed O&M Fee 0.32524Energy Fee 0.14891Total 0.90607Fuel Cost Pass thru cost


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The ERC denied the proposed rates for the capacity (MW) dispatch beyond the contracted capacity. It found that allowing TMI to recover such a rate would consti-tute double compensation over its allowed recovery of capital cost and the corre-sponding return. Instead, the charge should be equal to the rates applicable within the contracted capacity. Also, NGCP’s proposed Collection Deficiency Mecha-nism was denied, thus ERC reminded that NGCP should not invoke said denial as ground for not implementing the ancillary service for being inconsistent with the approved AS-CRM.

AUTHORITY TO RECOVER TRANSMISSION COST UNDER-RECOVERIES

The ERC, in its Decision dated February 15, 2010, approved with modification, the application filed by Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) to recover under-recovery in the implementation of transmission cost for the pe-riod July 2004 to April 2006. Accordingly, ZAMCELCO was authorized to recover the amount of PhP29,738,770.53 equivalent to an average rate adjustment of PhP0.0446/kWh, for a period of 22 months or until such time that the full amount has been fully recovered.

AUTOMATIC RECOVERY OF FUEL & LUBRICANT COSTS

The ERC, in its Decision dated July 19, 2010, approved with modification the ap-plication filed by Cotabato Light and Power Company, Inc. (CLPC) for the recov-ery of the actual fuel and lubricant costs incurred for the period 2004-2010, and for automatic recovery of fuel and lubricant costs. The ERC made permanent the provisional authority granted to the CLPC, authorizing it to recover the amount of PhP22,181,728.02 equivalent to PhP0.0298/kWh until its full recovery. The proposed recovery of carrying charges amounting to PhP4,403,856.41 was de-nied for being filed after the lapse of unreasonable period. Also, the ERC denied CLPC’s proposed formula for the automatic recovery of future fuel and lubricant costs to avoid confusion with the Automatic Generation Rate Adjustment (AGRA) confirmation.

BUSINESS SEPARATION AND UNBUNDLING PLAN (BSUP)

The ERC approved ten (10) applications for Business Separation and Unbundling Plan (BSUP) and Accounting and Cost Allocation Manual (ACAM) from the follow-ing companies:

a) Team (Philippines) Energy Corporation (TPEC);b) Masinloc Power Partners Co., Ltd. (MPPCL);c) First Cabanatuan Ventures Corporation (FCVC);d) Angeles Electric Corporation (AEC);e) La Union Electric Company, Inc. (LUECO);f) Dagupan Electric Corporation (DECORP);g) Visayan Electric Company, Inc. (VECO);h) Bohol Light Company, Inc. (BLCI);i) Panay Electric Company, Inc. (PECO); andj) Tarlac Electric Incorporated (TEI).

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The Decisions approving the applications were made in accordance with the provi-sions of Section 36 of R.A. 9136 and Rule 10 of its Implementing Rules and Regu-lations (IRR), and made subject to their full compliance with the requirements of the Business Separation Guidelines (BSG), as amended.

CAPITAL EXPENDITURE PROJECTS (CAPEX)

With the intention of providing for continued sustainable operations with compli-ance to quality technical standards of electric service, the ERC approved the applications filed by the following Distribution Utilities (DUs) for electrical projects within their respective franchise areas:

NO DATE DISTRIBUTION UTILITY CAPEX PROJECTS TOTAL PROJECT COST (PhP)

1 February 8, 2010

Pangasinan I Electric Coop-erative, Inc. (PANELCO I)

Rehabilitate and restore its distribu-tion facilities damaged by typhoon Emong.

51,319,684.78

2 February 8. 2010

Tarlac Electric Incorporated (TEI)

1. Rehabilitation and extension of 69 kV line;

2. Installation of two 69 kV feeder breakers; and

3. Construction of a new 13.8 kV primary line feeder.

15,441,823.79

3 February 15, 2010

Romblon Electric Cooperative, Inc. (ROMELCO)

1. Expansion and extension of primary lines;

2. Rehabilitation and upgrading of distribution lines;

3. Installation of service drop wires and kilowatthour (kWh) meters;

4. Procurement of logistical sup-port equipment; and

5. Construction of main and sub-offices.

74,010,000.00

4 February 15, 2010

Romblon Electric Cooperative, Inc. (ROMELCO)

Rehabilitation and restoration of damaged distribution lines.

6,656,726.77

5 March 8, 2010

Aklan Electric Cooperative, Inc. (AKELCO)

1. Construction of a 30 MVA Sub-station;

2. Line and Tapping Point Switch-yard;

3. Construction of the new 13.2 kV Distribution Line; and

4. Acquisition of a 69 kV Subma-rine Cable.

190,744,762.00

6 March 8, 2010

Cabanatuan Electric Corpo-ration (CELCOR)

Rehabilitation and extension of primary and secondary lines and installation of one (1) recloser.

18,455,153.91


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7 April 19, 2010

Cagayan I Electric Cooperative, Inc. (CAGELCO I)

Force Majeure Project involving repair and restoration of damaged distribution facilities due to typhoon Pepeng.

11,558,386.00

8 April 19, 2010

Manila Electric Company (MERALCO)

1. Replacement of Power Trans-former Bank No. 1 at Sta. Mesa Substation;

2. Replacement of Power Trans-former Bank No. 5 at Balintawak Substation;

3. Uprating of Power Transformer Bank No. 1 at Sta. Rosa Sub-station;

4. Expansion of the First Philippine Industrial Park (FPIP) 115 kV - 34.5 kV Substation; and

5. Construction of Laguna Inter-national Industrial Park-ROHM Electronics Philippines, Inc. (LIIP-ROHM) 115 kV Line

465,630,000.00

9 May 24, 2010

Angeles Electric Corporation (AEC)

Design and construction of Electric Power Distribution System (EPDS).

20,341,706.75

10 June 21, 2010

Isabela II Electric Cooperative, Inc. (ISELCO II)

Replacement and installation of 10 MVA power transformer.

20,400,000.00

11 August 9, 2010

Bohol I Electric Cooperative, Inc. (BOHECO I)

1. Construction and installation of 10 MVA substation;

2. Construction of 69 kV Trans-mission Line and installation of receiving steel structure;

3. Procurement of #336.4 Alu-minum Conductor Steel Rein-forced (ACSR) cable;

4. Procurement and installation of concrete poles;

5. Procurement and installation of Three 13.2/7.62 kV Distribution Line Feeders;

6. Procurement of 4/0 Aluminum Conductor Steel Reinforced (ACSR) cable;

7. Acquisition of lot with right-of-way; and

8. Contingency-handling.

54,773,484.09

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12 August 31, 2010

Agusan del Sur Electric Cooperative, Inc. (ASELCO)

1. Installation of a new 10 MVA substation and construction of 27 km 69 kV line;

2. Upgrading of Trento substation from 5 MVA to 10 MVA;

3. Conversion of V-phase line to 3 phase line and construction of additional 7 km single phase line including the installation of capacitor banks;

4. Rehabilitation and replacement of wooden to concrete poles;

5. Installation of feeder meters;6. Procurement of logistics equip-

ment and engineering software;7. Installation and replacement of

kilowatt-hour (kWhr) meters and service drop wires; and

8. Procurement, upgrading and replacement of overloaded dis-tribution transformers.

149,330,348.00

13 October 18, 2010

South Cotabato I Electric Cooperative, Inc. (SOCOTECO I)

Various capital expenditure projects for the years 2009 to 2013.

422,014,101.00

14 November 15, 2010

Cagayan I Electric Cooperative, Inc. (CAGELCO I)

Construction of the 10 MVA substa-tion at Carig, Tuguegarao City.

41,500,000.00

15 November 15, 2010

Misamis Occidental II Electric Cooperative, Inc. (MOELCI II)

1. Acquisition and installation of 1 unit of Primary Circuit Breaker (CB), 3 units of Secondary CBs and upgrading of monitoring equipment;

2. Construction of Civil Works (Banadero Substation);

3. Acquisition and installation of 1 unit of Primary CB, 4 units of Secondary CBs and upgrading of monitoring equipment; and

4. Construction of Civil Works (Dimalooc Substation).

18,743,678.54

CAPITAL STOCK

Tarlac Electric, Inc.’s (TEI) application to increase its capital stock from PhP50,000,000.00 to PhP200,000,000.00 was approved by the ERC on June 21, 2010. The increase in the capitalization was meant to finance future expansion, upgrading, system loss reduction of its distribution system due to increasing en-ergy demand and compliance with the requirements of the Philippine Grid Code


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(PGC) and the Philippine Distribution Code (PDC). Accordingly, TEI was also au-thorized to issue the corresponding stock certificates representing the increase in its capital stocks.

CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY (CPCN)

The ERC issued a total of three (3) CPCNs in 2010. Below is a summary list:

NAME DATE OF DECISION CPCN ISSUED1. Mansons Corporation

(now San Fernando Electric Power and Light Company, Inc.)

June 7, 2010 To operate in the munici-pality of Floridablanca (excluding Barangays Basa I and II Resettle-ment) and Barangays Talang and Ligaya, Municipality of Guagua, Pampanga from Decem-ber 6, 2005 to Decem-ber 6, 2030

2. San Fernando Electric Power and Light Com-pany, Inc. (SFELAPCO)

August 31, 2010 March 24, 2010 to March 23, 2035

3. Cebu I Electric Coopera-tive, Inc. (CEBECO I) and Visayan Electric Com-pany, Inc. (VECO)

September 6, 2010 25 years from the date of approval

CONNECTION ASSETS

The ERC approved the joint application for the approval of the construction of con-nection assets associated with the 2 x 300 MW Coal Fired Power Plant of National Grid Corporation of the Philippines (NGCP) and GNPower Mariveles Coal Plant Limited (GNPOWER) in its Decision dated April 12, 2010. The ERC’s approval, however, was subject to the following conditions:

a) The proposed Connection Charges that NGCP shall impose to GNPOWER will be subject to verification and confirmation by the ERC on the annual appli-cation of NGCP’s Connection Assets and Residual Subtransmission Charges; and

b) The proposed projects will be further optimized based on the actual use dur-ing the reset process for the next regulatory period following the procedures stated in the Rules for Setting Transmission Wheeling Rates (RTWR) and other relevant issuances of the ERC.

NGCP was also directed to pay a permit fee in the amount of PhP6,890,618.89.

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CONSUMER COMPLAINTS

Section 41 of Republic Act No. 9136 or EPIRA mandated the ERC to handle consumer complaints and promote consumer interests. The ERC receives more than one thou-sand complaints every year, which it aims to resolve through the conduct of mediation conferences. If the complaints are not resolved at this stage, the complainant may then opt to initiate a formal complaint, which the ERC will resolve after due proceed-ings.

1. In 2010, the ERC, in the exercise of its quasi-judicial function, issued four (4) Decisions resolving complaints which were not resolved through the media-tion process against Manila Electric Company (MERALCO) on pilferage al-legations, differential billings and right to electric service filed by the following customers:

a) Walfredo Camba;b) Regalado Torres, Jr.;c) Joaquin P. Bulacan; andd) Maria Lourdes Paloyo.

2. On August 23, 2010, the ERC denied, for lack of merit, the petition filed by Mr. Genaro C. Lualhati to order MERALCO to refund to residential consumers the amount of PhP39 Billion which according to him represents overcharges for the period 2004-2007 and to replace the current discriminatory residential monthly billings with rates that do not exceed PhP0.9077/kWh, or at most, PhP1.0830/kWh as approved by the ERC in the Final Determination of ERC Case No. 2006-045 RC. Similarly, the ERC denied Mr. Lualhati’s prayer for the audit by Commission on Audit (COA) of MERALCO’s financial books.

3. In a Decision dated June 28, 2010, the ERC ruled that Saint Joseph Institute of Technology (SJIT) should not be held liable for the payment of the under bill-ings claimed by Agusan del Norte Electric Cooperative, Inc. (ANECO). While billing errors were present in the monthly bills of SJIT due to the use of a wrong multiplier, the ERC decided that, in accordance with its existing regulations on the matter, SJIT should only be liable to pay the undercharged billing equiva-lent to a period of three (3) months prior to the date of discovery, amounting to PhP479,816.90, and not the initial computation of ANECO amounting to PhP8,156,887.36, which covers the period from November 2004 to February 2009.


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DIRECT CONNECTION

The ERC approved, with modification, the applications filed by North Luzon Trion Mall, Inc. (NLTMI) and Wan Chiong Steel Corporation, Inc. (WCSC) on Novem-ber 15, 2010 and December 15, 2010, respectively, for direct connection with the National Power Corporation (NPC) and the National Transmission Corporation (TRANSCO).

The ERC found that the existing 13.5 kV distribution line of Isabela II Electric Co-operative, Inc. (ISELCO II) is not sufficient to address the power requirements of NLTMI, which requires a minimum energy of not lower than 5MW per month on a 24-hrs/day, seven (7) days a week operation. Similarly, the ERC established that Pampanga III Electric Cooperative, Inc. (PELCO III) has no 69 kV sub-transmis-sion facilities sufficient to address the power requirement of WCSC.

Accordingly, ISELCO II and PELCO III were directed to negotiate with its existing power supplier or other Independent Power Producers (IPP), if necessary, for the power requirements of NLTMI and WCSC.

DISPUTE RESOLUTION

1. The ERC, on February 8, 2010, dismissed the case filed by Misamis Oriental I Rural Electric Service Cooperative, Inc. (MORESCO I) against Cagayan Elec-tric Power and Light Company, Inc. (CEPALCO) involving an alleged infringe-ment of electric franchise boundary. The dismissal was based on the National Electrification Commission (NEC) Decision dated January 27, 2000 in NEC Case No. 97-15, Republic Act No. 9284 and the Ocular Inspection Report marked as “Annex 1” where the Decision stated that the disputed area is be-yond the boundary of Barangay Canito-an and is actually located in Barangay Carmen which is not part of MORESCO I’s franchise area. In this regard, MO-RESCO I and CEPALCO were advised to strictly comply with the terms and conditions set forth in the NEC Decision and R.A. No. 9284.

2. On March 10, 2010, the ERC in its Decision rendered moot the prayers of Ma-nila Electric Company (MERALCO) for the adoption of the National Power Cor-poration-Time of Use (NPC-TOU) Rate and segregation of line rental amounts associated with bilateral contracts from the Wholesale Electricity Spot Market (WESM) energy trading amount. The ERC, likewise, found double charging in transmission line cost for Transitions Supply Contract (TSC) quantities for the preceding months up to the start of the WESM Luzon commercial operation on June 26, 2006.

3. On August 16, 2010, the ERC resolved the dispute resolution filed by North-wind Power Development Corporation (NORTHWIND) against Ilocos Norte Electric Cooperative, Inc. (INEC). The ERC granted the following prayers of NORTHWIND: (1) Obligate INEC to pay the disputed amounts from the time the dispute arose until receipt hereof; (2) Entitle INEC to Prompt Payment Dis-count (PPD) only whenever there are no overdue accounts; and (3) Include the connection charge in the computation of its effective rate to INEC. Moreover, the ERC granted, with modification, the following prayers of NORTHWIND: (1) Determination, on a monthly basis, of the excess energy, but reckoning from

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the period of dispute. Henceforth, the excess energy shall be computed on a per hour basis to conform with the TOU rates and WESM pricing scheme; and (2) Approval of joint manifestation with INEC on whether or not Transco billings for the Burgos Substation should be paid in full by INEC, except item 2. Finally, the ERC denied the following prayers: (1) Exclusion of the Power Act Reduction (PAR) from the computation of the effective rate of NORTHWIND to INEC; and (2) Issuance of Order to INEC to indicate in its monthly bills to consumers the economic benefit being enjoyed from the delivery of electricity from NORTHWIND.

INCREMENTAL CURRENCY EXCHANGE RATE ADJUSTMENT MECHANISM (ICERA)

On November 15, 2010, the ERC approved the 9th to 14th applications of National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation (PSALM) for the recovery of ICERA for Luzon, Visayas and Mindanao Grids effective November 26, 2010 to December 25, 2010 billing period until such time that the full amount shall have been refunded and recovered or until the next applications for the recovery of Incremental Fuel Costs are approved by the ERC, whichever comes first.

The total Deferred Accounting Adjustments (DAA) using the test period January 2007 to June 2008 for the Luzon, Visayas and Mindanao Grids are shown in the table below:

GRIDS DAA (PhP)June 2009

DAA(PhP/kWh)

Recovery Period(Months)

Luzon (6,579,049,134.76) (0.3444) 9Visayas 800,513,196.51 0.0865 20Mindanao (1,709,708,310.28) (0.2557) 9

The ERC used the Base Exchange FOREX Rates of US Dollar to Peso rate at PhP51.6236/US$1 while the Yen to Peso Rate was at PhP0.4128/JPY1 for DAA for OPEX, and the Base Exchange FOREX Rates at January 2007 to June 2009 levels where the US Dollar to Peso Rate was at PhP44.0494/US$1 while the Yen to Peso rate was at PhP0.4096/JPY1 for the DAA for Debt Service.

MARKET TRANSACTION FEE

The ERC, in its Decision dated July 19, 2010, denied the petition of the Philippine Electricity Market Corporation (PEMC) for the issuance of Market Fees Setting Rules for the Philippine Wholesale Electricity Spot Market (WESM). PEMC failed to justify the use of the Weighted Average Cost of Capital (WACC) and the adop-tion of the output-based methodology proposed in setting its budgetary require-ment and corresponding Market Fees. PEMC was instead directed to initiate a study to determine an appropriate mechanism which is applicable to its nature as a non-stock non-profit entity.


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PERFORMANCE-BASED RATE SETTING (PBR) CASES

1. Cabanatuan Electric Corporation (CELCOR)

The ERC, in its Decision dated June 15, 2010, approved with modification, the application filed by CELCOR for the approval of the translation into distribution rates of its different customer classes for the Maximum Average price (MAP) for the 1st Year of the 2nd Regulatory Period of the ERC-Approved Annual Revenue Requirement (ARR) for the Regulatory Period 2011-2014. CELCOR was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:

DISTRIBUTION CHARGE SUPPLY CHARGE METERING CHARGECustomer Class PhP/kW PhP/kWh PhP/Mo/Cust PhP/kWh PhP/Mo/Meter PhP/kWhResidential - 0.9815 - 0.3808 5.00 0.3116Commercial Small Commercial - 0.9393 46.55 - 58.95 -

Large Commercial - 0.8617 1,014.36 - 1,065.68 -

Very Large Commercial 189.45 0.4531 312.92 - 2,061.83 -

Industrial Semi- Industrial 117.30 0.2806 722.08 - 879.78 -

Small- Industrial 307.96 0.7368 1,658.91 - 2,021.20 -

Large Industrial 208.74 0.4991 329.58 - 2,171.67 -

Streetlights SL-Metered - 1.1653 8.01 - 7.48 - SL- Unmetered - 0.8332 33.39 - - -

Hospital 145.41 0.3476 886.38 - 931.22 -

CELCOR was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-75 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0889/kWh.

2. Cagayan Electric Power & Light Co. (CEPALCO)

The ERC, in a Decision dated March 24, 2010, made permanent the provi-sional authority granted to CEPALCO on June 1, 2009. The ERC approved the application of CEPALCO for the approval of its a) Revised X-Factor; b) Smoothened Maximum Average Price for the 2nd Regulatory Period (SMAP 2008); and c) MAP for the 3rd Regulatory Year of the 2nd Regulatory Period (MAP 2010) and its Translation into a Distribution Charges for each Customer

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Class. CEPALCO was directed to implement the approved Distribution, Sup-ply and Metering Charges and Lifeline Rate Subsidy detailed below effective July 1, 2009:

Rate Schedule

Distribution Supply Metering

PhP/kWh PhP/kWh

PhP/Cust.

PhP/kWh

PhP/Cust.

1st Block All Excess PhP/kW 1P/ Secondary

3P/ Primary

Streetlight 1.2351 - - 0.0082 - - - -Residential 1.6752 - - 0.4587 - 0.6335 5.00 1,248.55Commercial 1.4939 - - 0.1208 - - 168.87 - Industrial (High Load Factor) 0.1057 - 364.14 - 1,602.39 - 1,319.88 19,854.51

Industrial (Low Load Factor) 0.9641 - - - 1,600.90 - 1,318.65 19,836.06

(57-57W) Bulk Power (bundled and wheeling)

0.0866 0.0433 261.99 - 3,037.00 - - 25,164.16


0.0576 0.0288 38.35 - 3,602.37 - - 26,682.54

The ERC directed CEPALCO to adopt a revised X-factor of -2.38% and adopt a SMAP for the 2nd Regulatory Period as follows:

Particulars Final Determination Guidelines DifferenceSMAP 2008 1.111 1.084 (0.027)SMAP 2009 1.161 1.146 (0.015)SMAP 2010 1.213 1.212 (0.001)SMAP 2011 1.268 1.282 0.014

Moreover, CEPALCO was directed to adopt the MAP2010 of PhP1.4482/kWh, limited by the Side Constraints and S Factor of PhP0.0295/kWh and imple-ment the revised lifeline levels and corresponding discounts and subsidy, with subsidy rate to non-lifeline customers of PhP0.0981/kWh.

On the other hand, on June 7, 2010, the ERC approved, with modification, the application of CEPALCO for the approval of a MAP for the 4th Regulatory Year of the 2nd Regulatory Period (MAP 2011). The ERC directed CEPALCO to adopt a revised X-factor of -4.75% and a SMAP for the 2nd Regulatory Period as provided in the Decision. CEPALCO was directed to adopt the MAP2011 of PhP1.5705/kWh, limited by the Side Constraints and S Factor of PhP0.1223/


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kWh, and implement its approved Distribution, Supply and Metering Charges effective July 1, 2010, detailed as follows:

3. Cotabato Light & Power Company, Inc. (CLPC) The ERC approved, with modification, the application of CLPC for the approval

of the revised X-factor, SMAP, and Performance Incentive System (PIS) for the 2nd regulatory period, the recalculated MAP for the regulatory year 2011, and the translation into distribution related rates of different customer classes for the 2nd regulatory year of the 2009-2013 regulatory period, in its Decision dated February 22, 2010. The ERC directed CLPC to adopt a SMAP for the 2nd Regulatory Period as provided in the Decision. CLPC was directed to adopt the MAP2011 of PhP1.5056/kWh, limited by the Side Constraints and S Factor of PhP0.0325/kWh, and implement its approved Distribution, Supply and Metering Charges effective April 2010, detailed as follows:

Customer ClassDistribution Supply Metering

PhP/kW PhP/kWh

PhP/ month PhP/kW PhP/kWh 1P/

Secondary3P/

PrimaryResidential/ General Retail 1

- 1.2122 - - 0.2785 5.00 0.5611

General Retail 2 178.66 0.4799 93.25 - - 576.57 -General Retail 3 147.47 0.4219 164.43 - - 707.83 -General Retail 4 103.96 0.3269 1,022.05 - - 4,837.48 -Flat Lighting - 1.2720 43.28 - - 0.00 -

Rate Schedule


PhP/kWh PhP/kWh

PhP/Cust.

PhP/kWh

PhP/Cust.

1st Block All Excess PhP/kW 1P/ Secondary

3P/ Primary

Streetlight 1.3488 - - 0.0090 - - - -Residential 1.8294 - - 0.5009 - 0.6939 5.00 - Commercial 1.6314 - - 0.1319 - - 178.80 1,307.36 Industrial (High Load Factor) 0.1154 - 395.81 - 1,700.19 - 1,406.55 20,806.98

Industrial (Low Load Factor) 1.0528 - 0 - 1,700.19 - 1,406.55 20,806.98


0.0946 0.0473 271.25 - 3,085.61 - - 25,566.96


0.0698 0.0349 51.06 - 4,514.37 - - 33,437.69

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4. Dagupan Electric Corporation (DECORP) The ERC, on March 24, 2010, made permanent the provisional authority grant-

ed to DECORP on June 1, 2009 with reference to its application for approval of the a) revised X-factor for the 2nd Regulatory Period; b) revised SMAP for the 2nd Regulatory Period; and c) translation into distribution rates of different customer classes for the 3rd Regulatory Year of the ERC-approved ARR for the Regulatory Period 2007-2011. The ERC’s approval, however, is subject to the following modifications:

a) Revised X-factor of -8.33%; b) SMAP for the second regulatory period as provided in the Decision;c) MAP2010 of PhP1.5460 limited by the Side Constraints, including S-factor

of PhP0.0330/kWh; d) Revised distribution rate structure for the Regulatory Year 2010 effective

July 1, 2009 as provided in the Decision; and e) Revised lifeline levels and corresponding discounts and subsidy as pro-

vided in the Decision.

DECORP was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-50 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0890/kWh.

On the other hand, on June 15, 2010, the ERC approved, with modification, the application filed by DECORP for approval of the translation into distribution rates of its different customer classes for the 4th regulatory year of the ERC-approved ARR for the Regulatory Period 2007-2011. DECORP was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, de-tailed as follows:

Customer TypesDistribution Supply Metering

PhP/kWh PhP/kWh PhP/kWh PhP/Cust/Mo PhP/kWh PhP/Cust/MoResidential 1.5646 - 0.3033 - 0.4562 5.0000Street Lighting 2.6344 - - 34.3258 - -Small Commercial (<=40KW)

1.0917 - - 34.3258 - 89.6651

Large Commercial (>40KW)

0.3654 219.7721 - 34.3258 - 829.8925

Bulk Power (13.8KV) 0.1767 132.1375 - 34.3258 - 4,045.8929

5. Davao Light and Power Company, Inc. (DLPC)The ERC approved, with modification, the application filed by DLPC for approval of the translation into distribution rates of its different customer classes for the 1st regulatory year of the ERC-approved ARR for the Regulatory Period 2010-2014, in its Decision dated June 15, 2010. DLPC was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:


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CUSTOMERS UNITS Approved Rates for the Regulatory Year 2011

(PhP)DISTRIBUTIONResidential (1.1) PhP/kWh 1.5720Secondary Retail (2.1) PhP/kWh 1.5720Secondary Retail (3.1) PhP/kWh 0.2135

PhP/kW 220.37Primary Retail PhP/kWh 0.0974

PhP/kW 121.59General Retail 4.1 PhP/kWh 0.0974

PhP/kW 121.5969 kV-A PhP/kW 93.5069 kV-B PhP/kW 43.53Flat Lighting 5.1 PhP/kW 1.1722SUPPLYResidential (1.1) PhP/kWh 0.2043Secondary Retail (2.1) PhP/kWh 0.2043Secondary Retail (3.1) PhP/Cust./Mo. 332.59Primary Retail 4.1 PhP/Cust./Mo. 2,481.3269 kV-A PhP/Cust./Mo. 333.8469 kV-B PhP/Cust./Mo. 4,789.23Flat Lighting 5.1 PhP/Cust./Mo. 53.61METERINGResidential (1.1) PhP/kWh 0.1569

PhP/Cust./Mo. 5.00Secondary Retail (2.1) PhP/kWh 0.1569

PhP/Cust./Mo. 5.00Secondary Retail (3.1) PhP/Cust./Mo. 1,060.73Primary Retail 4.1 PhP/Cust./Mo. 1,112.7269 kV-A PhP/Cust./Mo. 21,368.7169 kV-B PhP/Cust./Mo. 27,786.29AVERAGE TOTAL RATE PhP/kWh 1.1633

DLPC was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-100 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0752/kWh.

6. Ibaan Electric and Engineering Corporation (IEEC)The ERC approved, with modification, the application for approval of the transla-tion into distribution rates of different customer classes for the 1st Regulatory Year of the ERC-Approved ARR for the Regulatory Period 2010-2014, in its Decision dated June 28, 2010. IEEC was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:

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UNITS Approved Rates for the Regulatory Year 2011

(PhP)DISTRIBUTIONResidential PhP/kWh 1.3504Commercial PhP/kWh 0.5158Industrial PhP/kWh 0.3004

PhP/kW 6.3500Street Lights PhP/kW 0.8978SUPPLYResidential PhP/Cust./Mo. 19.52Commercial PhP/Cust./Mo. 19.95Industrial PhP/Cust./Mo. 26.07Street Lights PhP/Cust./Mo. 21.18METERINGResidential PhP/kWh 0.3949Commercial PhP/kWh 5.00Industrial PhP/kWh 41.70Street Lights PhP/kW 818.49AVERAGE TOTAL RATE PhP/kWh 1.4614

IEEC was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-50 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.1396/kWh.

7. Iligan Light and Power, Inc. (ILPI)The ERC approved, with modification, the application filed by ILPI for approval of the translation into distribution rates of its different customer classes for the 1st regulatory year of the ERC-approved ARR for the regulatory period 2009-2013, in its Decision dated March 8, 2010. The approved MAP 2011 is PhP1.1256. ILPI was directed to implement, starting April 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:

Customer Class


PhP/kW PhP/ kWhPhP/Cust/

Mo. PhP/kW

PhP/Cust/Mo.PhP/ kWh

Non-CT Rated/Sec.

Metered

CT Rated/Prim.

Metered

Flat Rate - 1.0426 13.95 - - - -

Residential - 0.9142 - 0.2269 5.00 - 0.3383

Commercial - 0.9560 40.17 - 73.12 971.10 -

General Power 173.57 0.41.05 43.39 - 2,043.64 4,941.08 -

Bulk Power 24.27 0.0385 42.10 - - 5,805.02 -


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8. La Union Electric Company (LUECO)The ERC approved, with modification, the application filed by LUECO for approval of the translation into distribution rates of its different customer classes for the MAP for the 1st Year of the 2nd Regulatory Period of the ERC-approved ARR for the Regulatory Period 2011-2014, in its Decision dated June 15, 2010. LUECO was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:

Customer Class Units Approved Rates (RY 2011)DISTRIBUTIONResidential PhP/kWh 1.0019Commercial 1 PhP/kWh 0.9695Commercial 2 PhP/kWh 0.9219

Hospital PhP/kWh 0.6964General Power PhP/kWh 0.4869

PhP/kW 210.3301Streetlights PhP/kWh 0.9447SUPPLYResidential PhP/kWh 0.1834Commercial 1 PhP/kWh 0.1160Commercial 2 PhP/Cust./Mo. 241.2761Hospital PhP/Cust./Mo. 248.9793General Power PhP/Cust./Mo. 251.1445Streetlights PhP/Cust./Mo. 127.9426METERINGResidential PhP/kWh 0.1929

PhP/Cust./Mo. 5.0000

Commercial 1 PhP/kWh 0.2856Commercial 2 PhP/Cust./Mo. 622.4268Hospital PhP/Cust./Mo. 642.2988General Power PhP/Cust./Mo. 1,215.1442AVERAGE TOTAL RATE PhP/kWh 1.2326

LUECO was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-70 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0654/kWh.

9. Mactan Electric Company, Inc. (MECO) The ERC, in its Decision dated February 15, 2010, approved the application filed by MECO for the translation into distribution rates of its different customer classes for the 1st regulatory year of the ERC-approved ARR for the regulatory period 2009-2013. MECO was directed to implement, starting April 2010 its approved Distribution, Supply and Metering Charges, detailed as follows:

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Customer Class

Distribution Supply MeteringAverage

Rate (PhPkWh)

PhP/kW PhP/ kWh

PhP/ month PhP/kW PhP/kWh

Residential 1.2662 - 0.7288 - - 0.2410 5.00 0.2621Residential230 V customer

1.0479 - 0.7289 175.98 - - 45.05 -

13.8 kV customer with less than 1 MW demand

0.8272 145.58 0.2200 - 114.79 - 195.04 -

13.8 kV customer with more than 1 MW demand

0.7018 119.66 0.2000 - 98.35 - 2,750.58 -

MAP 2011 1.0149 - - - - - - -

10. Tarlac Electric, Inc. (TEI)The ERC approved, with modification, the application filed by TEI for approval of the translation into distribution rates of its different customer classes for the 1st regulatory year of the ERC-approved ARR for the Regulatory Period 2010-2014, in a Decision dated June 15, 2010. TEI was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as fol-lows:

Customer Classes Units Approved Rates for Regulatory Year 2011

DISTRIBUTIONResidential PhP/kWh 1.1559Small Commercial PhP/kWh 1.1559Commercial/Industrial (Secondary)

PhP/kWh -

PhP/kW 296.54Commercial/Industrial (Primary)

PhP/kW 224.30

69 kV PhP/kW 133.43Flat/Streetlights PhP/kWh 0.8754SUPPLYResidential PhP/kWh 0.2826

PhP/Cust./Mo. 5.00Small Commercial PhP/kWh 0.2826 PhP/Cust./Mo. 5.00Commercial/Industrial (Secondary)

PhP/Cust./Mo. 51.41

Commercial/Industrial (Primary)

PhP/Cust./Mo. 51.41

69 kV PhP/Cust./Mo. 51.41


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Flat/Streetlights -METERINGResidential PhP/kWh 0.2230

PhP/Cust./Mo. 5.00Small Commercial PhP/kWh 0.2230

PhP/Cust./Mo. 5.00Commercial/Industrial (Secondary)

PhP/Cust./Mo. 1,250.27

Commercial/Industrial (Primary)


69 kV PhP/Cust./Mo. 16,449.74AVERAGE TOTAL RATE PhP/kWh 1.2492

TEI was further directed to implement the new lifeline discount of 30% to 100% for residential consumers consuming 0-45 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0780/kWh.

11. Visayan Electric Company (VECO)The ERC approved, with modification, the application filed by VECO for approval of the translation into distribution rates of its different customer classes for the 1st regulatory year of the ERC-approved ARR for the Regulatory Period July 1, 2010-June 30, 2014, in its Decision dated June 28, 2010. VECO was directed to implement, starting July 1, 2010, its approved Distribution, Supply and Metering Charges, detailed as follows:


DISTRIBUTIONSched I-Streetlight PhP/kWh 0.8913Sched II-R & III-S-Residential and General Service

PhP/kWh 1.2360

Sched IV-P-General Power PhP/kWh 0.9178Sched V-P-Bulk Power PhP/kW 102.07

PhP/kWh 0.3118Sched VI-P-Wholesale Power PhP/kW 65.36

PhP/kWh 0.1806

Sched VII-P-Special Wholesale Power

PhP/kW 163.63

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Sched VIII-P-Large Wholesale Power

PhP/kW 129.76

SUPPLYSched I-Streetlight PhP/Cust./Mo. 728.93Sched II-R & III-S-Residential and General Service

PhP/kWh 0.2753

Sched IV-P-General Power PhP/Cust./Mo. 309.84Sched V-P-Bulk Power PhP/Cust./Mo. 736.02

PhP/kWh 0.0286Sched VI-P-Wholesale Power PhP/Cust./Mo. 4,400.94Sched VII-P-Special Wholesale Power

PhP/Cust./Mo. 12,685.10

PhP/kWh 0.0040Sched VIII-P-Large Wholesale Power

PhP/Cust./Mo. 22,331.61

PhP/kWh 0.0029METERINGSched I-Streetlight PhP/Cust./Mo. -Sched II-R & III-S-Residential and General Service

PhP/kWh 0.4713

PhP/Cust./Mo. 5.00Sched IV-P-General Power PhP/Cust./Mo. 340.36Sched V-P-Bulk Power PhP/Cust./Mo. 397.67

PhP/kWh 0.0154Sched VI-P-Wholesale Power PhP/Cust./Mo. 3,074.49

PhP/kWh 0.0196Sched VII-P-Special Wholesale Power


PhP/kWh 0.0020Sched VIII-P-Large Wholesale Power

PhP/Cust./Mo. 11,026.85

PhP/kWh 0.0015AVERAGE TOTAL RATE PhP/kWh 1.1717

VECO was further directed to implement the new lifeline discount of 5% to 100% for residential consumers consuming 0-100 kWh per month. Subsidy rate to non-lifeline customers was set by ERC at PhP0.0886/kWh.


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POWER PURCHASE AGREEMENTS

1. The ERC approved with modification the Power Supply Agreement (PSA) between Cagayan Electric Power and Light Co., Inc. (CEPALCO) & FG Bukidnon and Power Corporation (FGBPC), V-M-C Rural Electric Services Cooperative, Inc. (VRESCO) & San Carlos Bioenergy, Inc. (SCBI), and CEPALCO & Mindanao Energy Systems, Inc. (MINERGY) on November 16 & 23, 2009 and May 17, 2010, respectively. Below were the rates approved:

COST COMPONENT

CEPALCO & FGBPC(PhP/kWh)

VRESCO & SCBI(PhP/kWh)

CEPALCO & MINERGYDiesel Power Plants Cabulig Hydro-electric Plant

Base Rate(PhP/kW

Rate as of March 2010(PhP/kW)

Base Rate(PhP/kWh)

Rate as of March 2010(PhP/kWh)

Capital/Capacity Recovery Fee

1.2697 1.3232 577.559(per

month)

608.151(per month)

3.5706 3.7030

Operations & Maintenance (O&M) Fee

1.7010 1.5396 0.5125 05315 0.5994 0.6175

Total 2.9707 2.8628 - - 4.1700 4.3205

2. The ERC approved the Electric Power Purchase Agreement (EPPA) of Visayan Electric Company, Inc. (VECO) and Cebu Energy Development Corporation (CEDC) on February 8, 2010. The base rates are as follows:

Rate ComponentAt 100% Load

Factor(PhP/kWh)

At 95% up to less than 100%

Load Factor(PhP/kWh)

At 90% up to less than 95% Load

Factor(PhP/kWh)

Capacity Recovery Fee

2.2546 2.3732 2.5051

Peso O&M Fee 0.3434 0.3526 0.3628

Dollar O&M Fee 0.3688 0.3882 0.4098

Fuel Cost 2.2642 2.2642 2.2642

Total 5.2310 5.3782 5.5419

3. On February 8, 2010, the Electricity Sales Agreement (ESA) and composite rate structure between Iloilo I Electric Cooperative, Inc. (ILECO I) and Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) was approved by the ERC. The ESA between ILECO I and PNOC-EDC is for the supply of electricity by EDC to ILECO I from the Northern Negros Geothermal Power Plant (NNGP) located in Bago City, Negros Occidental. The approved Base Electricity Price was set at PhP4.88/kWh, subject to a monthly escalation formula.

4. On April 19, 2010, the ERC approved the application filed by Panay Electric Com-pany (PECO) and Panay Power Corporation (PPC) for the suspension of the imple-

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mentation of Table “B” Base Rates in its Order dated July 5, 2006 in ERC Case No. 2005-043 RC. PECO and PPC were authorized to reinstate the approved amended PPA base rates effective January 16, 2009 of PhP1.3937/kWh or US$0.0206/kWh (up to Minimum Guaranteed Electrical Quantity [MGEQ]) and PhP0.2000/kWh or US$0.0142/kWh (in excess of MGEQ). PECO and PPC were also directed to submit the amount of the under-recoveries and the proposed billing/collection scheme for the recovery of the said under-recoveries, in order to mitigate the impact of retroactive adjustment in PECO’s rates.

QUALIFIED THIRD PARTY (QTP)

On April 19, 2010, the ERC made permanent the provisional authority granted to Powersource Philippines, Incorporated (PSPI) on March 2, 2009 for the au-thority to operate as QTP. The ERC set the Full Cost Recovery Rate (FCRR) at PhP24.4449/kWh, of which PhP3.3657/kWh is fixed and PhP21.0792/kWh is subject to indexation, and the Subsidized and Approved Retail Rate (SARR) at PhP8.50/kWh, which was the approved retail rate of Palawan Electric Coopera-tive, Inc. (PALECO). Under existing regulations on QTPs, the difference between the FCRR and the SARR shall be collected from the Universal Charge-Missionary Electrification (UCME), and any over/under recoveries incurred from the imple-mentation of the QTP Service Contract (QSC) shall be subject to refund/ collec-tion, as the case may be.

RATE ADJUSTMENT

1. The ERC resolved four (4) applications for an Over-All Tariff Adjustment (OATA), to wit:

UTILITY DATE OF DECISION

TOTAL REVENUE

REQUIREMENT in PhP

OVERALL TARIFF ADJUSTMENT

(OATA) in PhP/kWh

Bantayan Island Electric Cooperative, Inc. (BANELCO)

February 1, 2010 25,719,547.00 0.6685

Marinduque Elec-tric Cooperative, Inc. (MARELCO)

March 29, 2010 45,723,913.00 0.1795

Camotes Island Electric Cooperative, Inc. (CELCO)

April 12, 2010 13,827,960.00 0.6583

Clark Electric Distribution Corporation (CEDC)

May 24, 2010 135,967,843.00 (0.1787)

2. The ERC approved an application for sound value appraisal of assets and revision of rates of San Fernando Electric Light and Power Company, Inc.


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(SFELAPCO) on March 29, 2010, with particulars as follows:

Total Revenue Requirement (PhP)

OATAPhP/kWh

Appraisal of Property w/ Reproduction Cost

New (PhP)

Adjusted Sound Value (PhP)

468,641,426.00 0.2297 2,288,799,500.00 1,080,970,100.00

3. On April 12, 2010, the ERC approved with modification the application filed by Panay Electric Company (PECO) for approval of the Depreciated Replace-ment Cost of its properties as of December 31, 2008, and revised rate sched-ules to achieve the proposed revenue requirement. Below are the details:

Total Revenue Requirement (PhP)

OATAPhP/kWh

Appraisal of Property w/ Reproduction Cost

New (PhP)

Adjusted Sound Value (PhP)

318,329,256.00 0.0241 1,513,198,900.00 892,279,560.00

RETIREMENT OF ASSETS

The ERC, on March 8, 2010, approved the application filed by Manila Electric Company (MERALCO) for authority to retire the Balagtas and Marilao Substations located at the Municipalities of Balagtas and Marilao, Bulacan and the withdrawal from the service of the equipment and machineries installed therein. The ERC’s approval was made subject to the condition that the total cost of the retired assets amounting to PhP1,019,303.51 shall be subject to adjustment and optimization during reset process for the 3rd Regulatory Period in accordance with the Rules for Setting Distribution Wheeling Rates (RDWR) and other pertinent issuances of the ERC.

RULES FOR SETTING DISTRIBUTION WHEELING RATES (RDWR)

The ERC approved on March 8, 2010 applications for the approval of the Annual Revenue Requirement (ARR) and Performance Incentive Scheme (PIS) for the 2nd Regulatory Period commencing on July 1, 2010 and terminating on June 30, 2014 in accordance with the provisions of the RDWR of the following utilities:

a) Visayan Electric and Engineering Corp. (VECO);b) Davao Light and Power Company, Inc. (DLPC);c) Tarlac Electric, Inc. (TEI);d) Cabanatuan Electric Corporation (CELCOR);e) La Union Electric Company, Inc. (LUECO); andf) Ibaan Electric and Engineering Corporation (IEEC).

The ARRs of the five (5) DUs are as follows:

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a) VECO (with an X-factor of -3.93%) (PhP Million, Nominal)

BUILDING BLOCK 2011 2012 2013 2014Return on Capital 1,094.70 1,154.50 1,175.60 1,182.40OPEX 987.90 1,052.60 1,114.10 1,178.00Regulatory Depreciation 333.10 353.60 367.60 387.30Corporate Income Tax 0.00 0.00 0.00 0.00Other Taxes 29.50 5.10 5.30 5.60TOTAL 2,445.20 2,565.80 2,662.60 2,753.30

b) DLPC (with an X-factor of -3.36%) (PhP Million, Nominal)BUILDING BLOCK 2011 2012 2013 2014

Return on Capital 1,026.30 1,059.60 1,087.40 1,114.80OPEX 736.80 7.80 825.40 873.90Regulatory Depreciation 328.70 336.70 347.30 375.10Corporate Income Tax 0.00 0.00 0.00 0.00Other Taxes 21.60 4.60 4.80 5.00TOTAL 2,113.40 2,180.90 2,264.90 2,368.80

c) TEI (with an X-factor of 13.63%) (PhP Nominal)PARTICULARS 2011 2012 2013 2014

ARR as calculated 385,050,066.00 407,853,503.00 434,892,950.00 441,147,692.00GSL allowance 1,925,250.00 2,039,268.00 2,174,465.00 2,205,738.00Resulting ARR before Intervention

386,975,316.00 409,892,771.00 437,067,414.00 443,353,430.00

Regulatory Intervention

(40,000,000. 00) (45,000,000.00) (50,000,000.00) (55,000,000.00)

Resulting ARR after Intervention

346,975,316. 00 364,892,771.00 387,067,414.00 388,353,430.00

d) CELCOR (with an X-factor of -7.95%) (PhP Nominal)PARTICULARS 2011 2012 2013 2014

ARR as calculated 294,608,180.00 305,466,242.00 319,535,968.00 332,887,584.00GSL allowance 1,473.041.00 1,527,331.00 1,597,680.00 1,664,438.00Resulting ARR before Intervention

296,081,221.00 306,993,573.00 321,133,648.00 334,552,022.00

Regulatory Intervention

-40,000,000.00 -45,000,000.00 -50,000,000.00 -55,000,000.00

Resulting ARR after Intervention

256,081,221.00 261,993,573.00 271,133,648.00 279,552,022.00


32

e) LUECO (with an X-factor of -10.80%) (PhP Million, Nominal)BUILDING BLOCK 2011 2012 2013 2014

Return on Capital 63.50 66.70 70.00 70.50OPEX 90.80 96.40 102.30 108.20

Regulatory Depreciation 21.20 23.20 24.20 24.20Corporate Income Tax 0.00 0.00 0.00 0.00Other Taxes 1.90 0.80 0.80 0.90TOTAL 177.40 187.10 197.40 203.90

f) IEEC (with an X-factor of -12.37%) (PhP Million, Nominal)BUILDING BLOCK 2011 2012 2013 2014

Return on Capital 13.569 13.243 12.915 12.547OPEX 12.689 13.287 13.926 14.615Regulatory Depreciation 4.443 4.583 4.752 4.708Corporate Income Tax 0.000 0.000 0.000 0.000Other Taxes 0.402 0.299 0.325 0.347TOTAL 31.104 31.411 31.918 32.218

The PIS was also approved with corresponding rewards and penalties for each of the following performance indices:

a) System Average Interruption Frequency Index (SAIFI);b) Customer Average Interruption Duration Index (CAIDI);c) Planned System Average Interruption Duration Index (planned SAIDI);d) Probability of voltage levels falling within prescribed limits;e) System losses;f) Average time to process application for regulated distribution services;

andg) Average time to connect premises to the regulated distribution system.

Moreover, the ERC approved the Guaranteed Service Level (GSL) Scheme of each DU, with corresponding threshold level and a penalty level once the thresh-old is not met. The PIS and GSL schemes are detailed in the Decisions of the ERC.

RULES IN SETTING TRANSMISSION WHEELING RATES (RTWR)

The ERC approved in its Decision dated November 22, 2010, the application filed by the National Grid Corporation of the Philippines (NGCP) for the approval of its Maximum Annual Revenue (MAR) for the 3rd regulatory period (2011-2015) dur-ing the regulatory reset process in accordance with the alternative form of rate setting methodology under the RTWR.

33


The ERC approved NGCP’s ARR for 2011-2015, including the 2nd regulatory pe-riod carry-over, a smoothed MAR for the same period, and NGCP’s capital ex-penditure forecasts for 2011 to 2015.

The following are the approved ARR for 2011-2015 (in nominal, including 2nd Regulatory Period Carry-Over):

2011 - PhP40,472.85 million2012 - PhP41,649.51 million2013 - PhP43,366.92 million2014 - PhP44,392.92 million2015 - PhP44,126.75 million

Moreover, the ERC approved the Performance Incentive Scheme (PIS) using the same performance measures that were used for the second regulatory period (2006-2010) as indicated in the Final Determination and with inclusion of:

a) Congestion availability indicator;b) Ancillary services availability indicator; and c) Customer satisfaction indicator.

SALE OF SUBTRANSMISSION ASSETS

1. The ERC approved the sale of various subtransmission lines/assets of Na-tional Transmission Corporation (TRANSCO) located within different franchise areas. Below is the list of the applications with corresponding details:

Date of Decision

ERC Case No. Franchise Area Subtransmission

Lines/Assets

Agreed Purchase Price

(in PhP)

February 8, 2010

2009-006 MC

Cebu II Electric Cooperative, Inc. (CEBECO II)

a) Compostela – Danao 69 kV Line;b) Danao – Lugo 69 kV Line; andc) Lugo – Medellin 69 kV Line.

42,490,653.00

February 15, 2010

2007-493 MC

Davao Oriental Electric Cooperative, Inc. (DORECO)

a) Aplaya S/S Equipment 54AP4 (Switch bay 69 kV, single CB bay with 1 breaker, feeder);

b) Tagoloan S/S Equipment 51TG4 (Switch bay 69 kV, single CB bay with breaker, feeder); and

c) Aplaya – Philippine Sinter Corporation 138 kV line.

53,410,672.30

February 15, 2010

2009-062 MC

Bohol Light Company, Inc. (BLCI)

a) Bohol Diesel Power Plant – Pro-vincial Public Utilities

Department (BDPP – PPUD) 13.8 kV Single Circuit Line.

1,168,399.00


34

Date of Decision

ERC Case No. Franchise Area Subtransmission

Lines/Assets

Agreed Purchase Price

(in PhP)

February 22, 2010

2009-016 MC

Cagayan Electric Power and Light Company, Inc. (CEPALCO)

a) Aplaya S/S Equipment 54AP4 (Switch bay 69 kV, single CB bay with 1 breaker, feeder);

b) Tagoloan S/S Equipment 51TG4 (Switch bay 69 kV, single CB bay with breaker, feeder); and

c) Aplaya – Philippine Sinter Corporation 138 kV line.

30,245,971.94

March 2, 2010

2009-051 MC

Aklan Electric Cooperative, Inc. (AKELCO)

a) Submarine cable link from Caticlan CTS to Boracay CTS

and its components of existing connection facilities.

163,113,490.04

June 28, 2010

2008-103 MC

Batangas I Electric Cooperative, Inc. (BATELEC I)

a) Calaca – Taal 69 kV Line;b) Calaca – Nasugbu – Calatagan

69 kV Line; andc) Taal 5 MVA Substation.

51,708,711.06

September 6, 2010

2009-011 MC

Sorsogon I Electric Cooperative, Inc. (SORECO I)

a) Abuyog – Irosin 69 kV Line. 23,788,208.68

September 6, 2010

2007-492 MC

Visayan Electric Company, Inc. (VECO) and Cebu I Electric Cooperative, Inc. (CEBECO I)

a) Naga – Sibonga – Dumanjug 69 kV Line; and

b) Sibonga – Alcoy 69 kV Line.

50,446,849.58

October 18, 2010

2009-095 MC

V-M-C Rural Electric Cooperative, Inc. (VRESCO)

a) Cadiz – San Carlos 69 kV Line. 53,331,725.98

SECURING LOANS

1. The ERC, in its Decision dated June 15, 2010, approved the application filed by Visayan Electric Company, Inc. (VECO) for authority to secure a Two Bil-lion Peso (PhP2,000,000,000.00) loan with SB Capital Investment Corporation and/or First Metro Investment Corporation (FMIC) to finance the implementa-tion of VECO’s major capital expenditure projects for the years 2009 to 2011.

2. The ERC, in its Decision dated August 16, 2010, approved the application filed by Siargao Island Electric Cooperative, Inc. (SIARELCO) for authority to secure PhP24,244,033.30 loan with the National Electrification Administration (NEA) to finance the implementation of its major capital projects for the years 2009 to 2011.

35


STATEMENT OF COMPLIANCE (SoC) AND COMPLIANCE PLAN (CP)

The ERC, on November 15, 2010, approved the petition of Nueva Ecija II - Area 1 Electric Cooperative, Inc. (NEECO II - AREA 1) for its SoC and CP.

The ERC found that six (6) out of twenty-one (21) standards of the Philippine Grid Code (PGC) and sixteen (16) out of thirty-six (36) standards of the Philippine Distribution Code (PDC) were fully complied with by NEECO II - Area 1. All other standards which NEECO II - Area 1 failed to comply with were provided with CPs which were in accordance with the prescribed standards of the PGC and PDC, and were therefore, approved. CPs requiring Capital Expenditure estimated at PhP38,047,964.60 were approved by the ERC.

NEECO II - Area 1 was directed to observe transparency in contracting and pro-curing its requirements, assets and services in accordance with the Guidelines to Govern the Submission, Evaluation, and Approval of Electric Capital Projects (ECPs) promulgated by the ERC on March 8, 2006.

TIME-OF-USE (TOU) RETAIL RATES

The ERC mandated all Distribution Utilities (DUs) to file for approval their TOU Retail Rates, by virtue of ERC’s Decision dated April 13, 2005 in ERC Case No. 2004-178 (In the Matter of the Application for Approval of the Proposed Generation Rates for Luzon, Visayas and Mindanao Grids, with Prayer for Provisional Author-ity, National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation (PSALM) – Applicants).

Accordingly, the ERC approved, with modification, on December 14, 2009 MER-ALCO’s TOU Retail Rates to end-users, to wit:

Particulars January to June(PhP/kWh)

July to December(PhP/kWh)

TOU Customers Weekdays (Monday to Saturday) Peak Rate* Off-Peak Rate* Weekend (Sunday) Peak Rate* Off-Peak Rate*

6.48523.0925

6.48523.0925

6.10533.0925

6.10533.0925

*Peak period refers to 8:01 AM to 9:00 PM (13 hours) during weekdays from Monday to Satur-day and from 6:01 PM to 8:00 PM (2 hours) during Sundays while the Off-Peak period refers to the remaining hours.


36

UNIVERSAL CHARGE (UC)

The ERC, on August 16, 2010, made permanent the provisional authority granted to the National Power Corporation - Small Power Utilities Group (NPC-SPUG) on August 17, 2009 for the availment from the UC of the share for Missionary Electri-fication (ME) for the period 2009-2013, with modification.

The ERC authorized PSALM to release the amount of PhP2,763,016,662.00 per year to fund NPC-SPUG’s operation for CYs 2010 to 2013, subject to the True-up Mechanism Adjustment.

Consequently, the National Grid Corporation of the Philippines (NGCP) and all Distribution Utilities (DUs) were authorized to collect UC-ME charge from consum-ers in the amount of PhP0.0454/kWh starting August 2010 billing.

However, the ERC denied NPC-SPUG’s prayer for flexibility in the utilization of the UCME funds and recovery of debt services. In line with this, NPC-SPUG was di-rected to implement its proposed missionary electrification projects in accordance with the DOE’s MEDP.

VIOLATIONS OF ERC RULES AND REGULATIONS

1. In 2010, the ERC resolved seventy-two (72) cases pertaining to violations of ERC’s Rules and Regulations. Violation cases decided included the imple-mentation of a different Power Supply Contract Cost in its retail rates without approval from the ERC, failure to implement the ERC’s order on Purchased Power Adjustment (PPA), operating an electricity distribution system without a Certificate of Public Convenience and Necessity (CPCN), late remittance of universal charge collections, failure to implement on time the unbundled rates, implementing capital projects without approval from the ERC, and failure to implement the approved rate reduction due to loan condonation. Below is the list of the 72 cases decided:

NO. DISTRIBUTION UTILITY ERC CASE NUMBER DECISION1 Panay Electric Company, Inc. (PECO) 2009-108 MC Penalized

2 Iligan Light and Power, Inc. (ILPI) 2009-014 MC Accepted settlement

3 Benguet Electric Cooperative, Inc. (BENECO) 2007-249 MC Reprimanded4 Tarlac Electric Incorporated (TEI) 2009-107 MC Exonerated5 National Grid Corporation of the Philippines

(NGCP)2010-015 MC Accepted settlement

6 Samar II Electric Cooperative, Inc. (SAMELCO II) 2007-523 MC2007-525 MC

Reprimanded

7 Isabela I Electric Cooperative, Inc. (ISELCO I) 2007-254 MC Reprimanded8 Public Utilities Department - Olongapo

(PUD - Olongapo)2007-465 MC Reprimanded

9 Ifugao Electric Cooperative, Inc. (IFELCO) 2010-007 MC Reprimanded

37


NO. DISTRIBUTION UTILITY ERC CASE NUMBER DECISION10 Isabela I Electric Cooperative, Inc. (ISELCO I) 2007-338 MC

2007-311 MCAccepted settlement

11 Misamis Oriental Rural Electric Service II Cooperative, Inc. (MORESCO II)

2006-020 MC Reprimanded

12 Eastern Samar Electric Cooperative, Inc. (ESAMELCO)

2007-381 MC Accepted settlement

13 Public Utilities Department - City of Olongapo (PUD - Olongapo)


14 Quezon II Electric Cooperative, Inc. (QUEZELCO II)


15 Mountain Province Electric Cooperative, Inc. (MOPRECO)


16 Davao Del Norte Electric Cooperative, Inc. (DANECO)


17 Negros Oriental I Electric Cooperative, Inc. (NORECO I)


18 South Cotabato II Electric Cooperative, Inc. (SOCOTECO II)


19 South Cotabato I Electric Cooperative, Inc. (SOCOTECO I)


20 Iligan Light and Power, Inc. (ILPI) 2008-030 MC Accepted settlement21 Misamis Oriental Rural Electric Service I

Cooperative, Inc. (MORESCO I)2007-328 MC2007-397 MC2007-289 MC

Accepted settlement

22 VMC-Rural Electric Service Cooperative, Inc. (VRESCO)


23 Central Negros Electric Cooperative, Inc. (CENECO)


24 Siargao Electric Cooperative, Inc. (SIARELCO) 2007-399 MC Accepted settlement25 VMC-Rural Electric Service Cooperative, Inc.

(VRESCO)2009-075 MC Accepted settlement

26 Zamboanga City Electric Cooperative, Inc. (ZAMCELCO)


27 Batangas II Electric Cooperative, Inc. (BATELEC II)


28 Marinduque Electric Cooperative, Inc. (MARELCO)


29 Pampanga Rural Electric Service Cooperative, Inc. (PRESCO)


30 Dinagat Island Electric Cooperative, Inc. (DIELCO)


31 Aklan Electric Cooperative, Inc. (AKELCO) 2007-367 MC2007-272 MC

Accepted settlement


38

NO. DISTRIBUTION UTILITY ERC CASE NUMBER DECISION32 Cagayan Electric Power and Light Company, Inc.

(CEPALCO)2009-114 MC Accepted settlement

33 First Bukidnon Electric Cooperative, Inc. (FIBECO)


34 Basilan Electric Cooperative, Inc. (BASELCO) 2007-441 MC Reprimanded35 Cagayan II Electric Cooperative, Inc.

(CAGELCO II)2008-004 MC Accepted settlement

36 La Union Electric Cooperative, Inc. (LUELCO) 2007-251 MC Reprimanded37 Don Orestes Electric Cooperative, Inc.

(DORELCO)2007-444 MC Reprimanded

38 Central Pangasinan Electric Cooperative, Inc. (CENPELCO)


39 Crystal Sugar Milling Company, Inc. 2009-079 MC Accepted settlement40 Nueva Ecija II - Area 1 Electric Cooperative, Inc.

(NEECO II - AREA 1)2009-102 MC Accepted settlement

41 La Union Electric Company, Inc. (LUECO) 2007-005 MC Reprimanded42 Zamboanga City Electric Cooperative, Inc.

(ZAMCELCO)2008-018 MC Reprimanded

43 Eastern Samar Electric Cooperative, Inc. (ESAMELCO)


44 Basilan Electric Cooperative, Inc. (BASELCO) 2007-286 MC Reprimanded45 Ilocos Norte Electric Cooperative, Inc. (INEC) 2009-021 MC Penalized46 Samar I Electric Cooperative, Inc. (SAMELCO I) 2007-466 MC Reprimanded47 Samar I Electric Cooperative, Inc. (SAMELCO I) 2007-470 MC Reprimanded

39


NO. DISTRIBUTION UTILITY ERC CASE NUMBER DECISION48 Kalinga - Apayao Electric Cooperative, Inc.

(KAELCO)2007-447 MC Reprimanded

49 Leyte I Electric Cooperative, Inc. (LEYECO I) 2007-463 MC Reprimanded50 Pangasinan III Electric Cooperative, Inc.

(PANELCO III)2006-112 MC2006-115 MC2007-252 MC2007-296 MC

Accepted settlement

51 Peninsula Electric Cooperative, Inc. (PENELCO) 2007-349 MC Accepted settlement52 Camarines Norte Electric Cooperative, Inc.

(CANORECO)2007-267 MC Accepted settlement

53 Isabela I Electric Cooperative, Inc. (ISELCO I) 2009-082 MC Reprimanded54 Misamis Occidental I Electric Cooperative, Inc.

(MOELCI I)2007-432 MC Reprimanded

55 Benguet Electric Cooperative, Inc. (BENECO) 2009-081 MC Accepted settlement56 Negros Oriental I Electric Cooperative, Inc.

(NORECO I)2009-045 MC Accepted settlement

57 Davao Light and Power Co., Inc. (DLPC) 2009-40 MC Reprimanded58 Iligan Light and Power, Inc. (ILPI) 2010-014 MC Exonerated59 National Grid Corporation of the Philippines

(NGCP)2010-004 MC Accepted settlement

60 Nueva Ecija II - Area 1 Electric Cooperative, Inc. (NEECO II - AREA 1)


61 Central Negros Electric Cooperative, Inc. (CENECO)


62 Pampanga I Electric Cooperative, Inc. (PELCO I) 2007-455 MC Reprimanded63 Batangas I Electric Cooperative, Inc.

(BATELEC I)2009-019 MC Reprimanded

64 Quezon I Electric Cooperative, Inc. (QUEZELCO I)


65 Panay Electric Company, Inc. (PECO) 2008-005 MC Accepted settlement66 Eastern Samar Electric Cooperative, Inc.

(ESAMELCO)2007-300 MC Accepted settlement

67 Misamis Oriental II Electric Service Cooperative, Inc. (MORESCO II)


68 Lanao del Norte Electric Cooperative, Inc. (LANECO)


69 Palawan Electric Cooperative, Inc. (PALECO) 2007-358 MC Accepted settlement70 Davao del Sur Electric Cooperative, Inc.

(DASURECO)2008-020 MC Reprimanded

71 Iloilo I Electric Cooperative, Inc. (ILECO I) 2009-086 MC Reprimanded72 Bauan Electric Light System (BELS) / First Bay

Power Corporation (FBPC)2007-439 MC Reprimanded


40

CONSUMER AFFAIRS

The ERC, in line with its mandate of protecting consumer welfare, resolved a total of 1,222 consumer complaints in 2010. Complaints filed before ERC reached 1,234 in 2010. In the course of resolving such complaints, the ERC issued 4,662 Letters and 3,102 Orders, and conducted 3,640 conferences.

Below is the summary of complaints filed versus resolved in 2010:

Summary of Complaints Filed and Resolved at Pre-Hearing Stage(As of December 2010)

Filed Resolved Letters OrdersOld (Prior to 2010) 6,206 3,676

January 2010 55 100 428 170February 2010 56 98 392 189March 2010 93 167 452 321April 2010 105 81 357 259May 2010 106 59 343 234June 2010 101 137 459 245July 2010 126 88 407 287August 2010 132 99 429 335September 2010 150 135 441 269October 2010 133 105 422 344November 2010 107 74 348 265December 2010 70 79 184 184

Subtotal for 2010 1,234 1,222 4,662 3,102TOTAL 7,440 4,898 4,662 3,102

Also in 2010, the ERC tested and calibrated 2,127,406 watt-hour meters and test equipments.

41


OTHER ACCOMPLISHMENTS

In view of the Commission’s desire to build capacity and strengthen its organization as a whole, several internal and external activities were conducted. This is in line with the ERC’s vision of becoming the Asia’s benchmark for excellence in power regulation.

Annual Performance Assessment and Strategic Planning Workshop

The ERC conducted, on December 9 and 10, 2010, its Annual Performance Assess-ment & Strategic Planning Workshop for all the employees. The workshop focused on communication, teamwork, interdependence, collaboration, and shared leadership within the organization.

The following were the learning goals during the workshop:

1. Cooperation;2. Communication;3. Effective strategy and game plan;4. Leadership perspective;5. Following instruction;6. Trust within the team;7. Foster focus and creativity;8. Emphasize the value of one’s contribution to the team goal;9. Encourage “thinking on your feet”;10. Emphasize the value of trust and support in doing a task; and11. Encourage the thinking process of “beginning with the end in mind”.

Continuing Regulatory Education for the Stakeholders (CREST)-EXTERNAL

The ERC conducted eight (8) Continuing Regulatory Education for the Staff/Stakehold-ers (CREST) Programs in 2010. CREST training is designed specifically for the discus-sions of highly technical ERC rules and regulations in layman’s terms.

Below is the summary:

1. January 21, 2010 - Forum with the Vietnam Delegates regarding the Power Industry Regulation in the Philippines, ERC Boardroom;

2. May 7, 2010 – Technical Presentation on the Philippine Electricity Sector and Structure with Bhutan Electricity Authority Delegates, ERC Boardroom;

3. June 25, 2010 – Technical Presentation on Philippine Electricity Sector and Structure with Kenya Electricity Authority Board of Directors and Delegates, ERC Boardroom;

4. July 30, 2010 – Technical Discussion on the Energy Regulatory Framework at the Philippine Power Industry Revisited: Broadening Perspective Towards Enhanced Media Practice, La Trinidad, Benguet;

5. August 24, 2010 – U.S. Energy Association (USEA) Delegates Visit to ERC – Renewable Energy Presentation by Executive Director Francis Saturnino C. Juan, ERC Boardroom;

6. October 13-14, 2010 – Knowledge and Capacity Enhancement Program for the Philippines Energy Media, Virata Hall, Development Academy of the Phil-ippines (DAP); and


42

7. December 14, 2010 – ERC-CREST for Media, Energy Regulatory Commis-sion (ERC).

Chairperson Zenida G. Cruz-Ducut addressing members of the media.

Continuing Regulatory Education for the Staff (CREST-INTERNAL)

1. April 20-21, 2010 - Trainor’s Training for the Rules Governing the Tariff Glide Path under the Article VII of the RSEC-WR, Energy Regulatory Commission (ERC);

2. May 19, 2010 - Seminar/Workshop on Long Run Marginal Cost and Genera-tor Contract Pricing for Brown Field Sites, Energy Regulatory Commission (ERC);

3. May 25-26, 2010 - On-Site Power Plant Operations and Orientation/Training on Legal on Commercial Aspects PSA Financial Modelling and Power Plant Economics, Energy Regulatory Commission (ERC);

4. June 1-3, 2010 - Orientation/Training on On-Site Power Plant Operations, Fi-nancial Modelling and Power Plant Economics, Legal and Commercial As-pects of PSA, Energy Regulatory Commission (ERC);

5. June 16-18, 2010 - Training on Energy Management and Cost Effective Plan-ning in Industrial and Commercial Facilities, University of the Philippines (UP) Diliman, Quezon City;

6. June 17-18, 2010 - Training on Economics Evaluation and Rate Impact Evalu-ation, Energy Regulatory Commission (ERC);

7. July 6, 2010 - Proposed Amendments to the Magna Carta for Residential Elec-tricity Consumers, Implementing Rules and Regulations of R.A. 7832 and the Distribution Services and Open Access Rules, Energy Regulatory Commis-sion (ERC);

8. August 18-20, 2010 - Property and Supply Management System (Appraisal and Disposal), Association of Government Internal Auditors, Inc. (AGIA);

9. August 20, 2010 - Training on the WESM Rules, Energy Regulatory Commis-sion (ERC);

43


10. August 24, 2010 - Technical Presentation on Renewable Energy, Energy Reg-ulatory Commission (ERC);

11. October 29-30, 2010 - Finalization of the Rules Governing the Tariff Glide Path Pursuant to Article 7 of the Rules for Setting the Cooperatives Wheeling Rates (RSEC-WR), USAID C-Energy;

12. November 12, 2010 - Computation of Reasonable Electricity Fee of PSA, Unit-ed States Agency for International Development (USAID);

13. December 7-8, 2010 - ERC-CREST for the Visayas and Mindanao Offices, ERC Hearing Room; and

14. December 14, 2010 - Continuing Regulatory Education for the Staff/Stake-holders (CREST) - Updates for the members of the media, Energy Regulatory Commission (ERC).

Trainings, Workshops, Seminars and Briefings

Trainings and workshops essential to capacity building, institutional strengthening and professional development were made accessible to the ERC employees. The following trainings were conducted/given to the staff:

Course Number of Participant/s

1 Orientation on the Creation of the ERC Billing Section 52 Career Executive Service Performance Evaluation

System (CESPES) Orientation7

3 Power Industry Regulation in the Philippines 144 Integrity Development Action Plan (IDAP) Seminar 275 Long Term Relationship Management in the Office 186 Mandatory Continuing Legal Education (MCLE) 67 How to Handle Meter Testing and Maintenance 28 ERC Physical Fitness All ERC Employees9 Writing Queries Using Microsoft SQL Server 2008 5

Staff of Visayas and Mind-anao Field Offices take pre-test before the semi-nar proper.


44


10 Orientation Briefing on the Procedure in Accounting and Settlement of Balances and Line Rentals (DSOAR)

21

11 Go Negosyo Women Entrepreneurship Summit Concerned ERC Employees

12 Mandatory Continuing Legal Education (MCLE) 113 Inventory System Orientation 1214 Orientation on Human Resource Information System

(HRIS)12

15 CRACKING CARTEL Seminar: Japanese Experience & Development

2

16 Mandatory Continuing Legal Education (MCLE) 1

17 Mandatory Continuing Legal Education (MCLE) 118 Mandatory Continuing Legal Education (MCLE) 119 COA Rules, 2009, Sworn Statements of Assets Liabili-

ties and Networth (SALN) Programs on Awards and Incentives Seminar

All ERC Employees

20 Voters Education and Election Forum 221 Moral Renewal Seminar All ERC Employees22 Developing a Strong Value of Self-Directed Learning All ERC employees23 Update of Human Resource Information System, Billing

and Revenue System, Inventory and Time Monitoring9

24 Technical Presentation on Phil. Electricity Sector and Structure

3

25 Records Disposition Administration 226 12th Regional Conference of the Institute of Integrated

Electrical Engineers of the Philippines (IIEE)1

27 ERC Physical Fitness All ERC Employees28 Meat Processing Seminar Concerned ERC

Employees29 Technical Evaluation of CAPEX 830 Generation and Contracts Reference Pricing Training 831 Initial Orientation on the Half Price Medicine Program

of the Government3

32 Philippine Quality Award Assessors Preparatory Course 133 PFRS/PAS Trends and Updates 134 Generation Pricing Training Exercise 635 Preparation of 2009 Notes to Financial Statements

Based on New GAAP (IFRS/PFRS)2

36 CP1 Power System Modelling and Analysis 337 Proper Presentation of Financial Statement 1

45



38 Moral Recovery Seminar 1539 Training on Maintaining a Microsoft SQL Server 2008

Database1

40 Comprehensive Corporate and Income VAT Taxation 241 Basic Regulatory Course 2342 Platts Oil and Coal Forum 343 Mandatory Continuing Legal Education (MCLE) 144 Organizational Culture Assessment All ERC Officers

and Employees45 Culmination Activities of the ERC Physical Fitness

ProgramAll ERC Officers and Employees

46 Configuring, Managing and Maintaining Windows Server 2008

1

47 C-Energy’s Basic Regulatory Course 7048 Developing Web Applications Using Visual Studio Net

20081

49 Philippines Association for Government Budget Admin-istration (PAGBA), Inc.

4

50 Workshop in line with the Monitoring and Evaluation Procedure for the Implementation of ERC@11

8

51 Mandatory Continuing Legal Education (MCLE) 152 Workshop in line with the Monitoring and Evaluation

Procedure for the Implementation of ERC @118


4

54 Course 6231 Maintaining MS SQL Server 2008 1


7

56 Energy Intermarket Surveillance Group Conference 557 Workshop in line with the Monitoring and Evaluation

Procedure for the Implementation of ERC@113

58 Trainings on Laws, Rules and Regulations on Govern-ment Expenditures

All Concerned FAS Personnel

59 Course 5051, Monitoring and Troubleshooting Ex-change Server 2007

1

60 Training on Republic Act No. 9184 and its Implementing Rules and Regulations (IRR-A)

30

61 Course 3938, Updating your Skills from MS Exchange 2003 to MS Exchange 2007

1

62 Course 2778, A Writing Queries Using MS SQL Server 2008

5


46


63 2010 Annual National Convention/ Seminar 164 Draft Determination Training Workshop 865 Briefing on Rules and Regulations on the Settlement of

Accounts (RRSA) and Revised Rules of Procedure of COA (RRPC)

2

66 2nd Philippine-Russian Business Forum and Exhibition (PRBFEX)

1

67 Course 50028, Installing and Configuring Systems Center Operations Manager 2007

2

68 Formal Launching of the Greenhouse Gas (GHGMI) On-Line Course Offering

3

69 9th CES Annual Conference 170 Updates on Republic Act No. 9184 Otherwise Known

as the Government Procurement Reform Act and its Implementing Rules and Regulations (IRR-A)

26

71 Seminar on Responding to the Call for Change 372 Seminar on Vertical Restraint: Unfair Trade Practices

and Private Monopolization 2

73 35th IIEE Annual National Convention and 3E Expo 2010

13

74 Microsoft Windows 7 and Office 2010 New Features Lectures and Demo

34

75 Course 2778, A Writing Queries Using MS Server 2008 276 Philippine Association for Government Budget Adminis-

tration (PAGBA)5

77 Renewable Energy Conference and Expo Manila 2010 278 Microsoft Windows 7 and Office 2010 New Features

Lectures and Demo43

79 Microsoft Courses “Microsoft Excel 2007 Levels 1 & 2” & “Microsoft Power Point Levels 1 & 2”

6

80 Sustaining Professional Excellence for Information & Communicating Technology Development

2

81 Lakbay Aral on Marine Life Conservation All ERC Officers and Employees

47


CHALLENGES AHEAD

OPEN ACCESS AND RETAIL COMPETITION

The ERC is actively preparing for the commencement of the open access and retail competition. There are remaining issues that need to be resolved and addressed in time for the operations of the open access and retail competition. These include, but are not limited to, the following:

1. Accounting, Billing, and Settlement of Retail Transactions, and other related issues–To address this, the ERC has created a Technical Working Group (TWG) and conducted regular meetings. The Rules on the Accounting, Billing, and Settlement of Retail Transactions shall be finalized thereafter.

2. B2B System –The ERC intends to engage the services of qualified third par-ties and develop the IT infrastructures necessary to set up the B2B System.

3. Information Dissemination Campaign – The ERC information dissemination shall be a 2-tiered campaign focusing on a) Customers only for one (1) month; and b) All stakeholders for two (2) months. Another round of Information Cam-paign shall be conducted depending on the Open Access date.

4. Administrative Matters – Prior to Open Access Date, the ERC shall accomplish the (a) Determination of the Supplier of Last Resort (SOLR) and the comple-tion of SOLR rate filing; (b) Confirmation of Local Retail Electricity Supplier (RES); (c) Resolution on Value-Added Tax (VAT) for the Supply Sector; and (d) Certification of Customers.

Chairperson Zenaida G.Cruz-Ducut. (center) presides over one of the Commission meetings. Also in picture are (from left to right) Dir. Isabelo Joseph P. Tomas II, Commissioners Jose C. Reyes, Rauf A. Tan, Alejandro Z. Barin, Maria Teresa A. R. Castañeda and Executive Director Francis Saturnino C. Juan.


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CONTINUOUS IMPLEMENTATION OF ERC @ 11

The ERC is on its last year in the implementation of the ERC @ 11 (ERC’s Medium-Term Plan for 2008 to 2011), with an over-all theme of “Effective Responsive Citizens by 2011” and with an over-all objective of “To sustain a strong regulatory body”. The period covered by the strategic plan will end on June 30, 2011.

The ERC’s themes, objectives, breakthroughs, and HR Development activities for 2011 are identified and discussed below:

2011

Theme: EFFICIENT UTILITIES MANAGEMENTThe ERC envisions that by 2011, the Distribution Utilities (DUs) will be able to provide a more efficient and quality service to the consumers. The ERC shall monitor and measure the performance of DUs using an effective refer-ence standard. Such measure shall encourage efficiency in the operations of the DUs.

Objectives1) To ensure the provision of efficient and quality service to consumers.2) To forward a culture of excellence in utilities.

Breakthroughs1) Utilities Performance Index (UPI) or2) Scorecard for Utilities’ Performance (SCUP)

Human Resource Development1) Continuous Capacity Building/Training of ERC Staff2) Evaluation and Monitoring (post mortem)

System and Procedure1) Total Quality Management (TQM)

PREPARING THE NEW STRATEGIC PLAN

Capitalizing on the gains of the ERC @ 11 strategic plan for 2008 to 2011, the new challenge for the ERC is how to craft new strategies to be factored into the plans and programs from 2012 to 2015 and identify the resources needed to achieve the set targets.

With the onset of retail competition and open access and the trend towards energy ef-ficiency and renewable energy promotion, the ERC’s plans will need to address these identified emerging challenges and the attendant issues in the electricity industry. The ERC’s medium-term plans for 2012 to 2015 must also be responsive and flexible to emerging trends within the dynamics of the electric power industry, the country and globally.

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RENEWABLE ENERGY (RE)

SETTING OF THE FEED-IN TARIFF (FIT) RATES

Section 7 of R.A. 9513, An Act Promoting the Development, Utilization and Commer-cialization of Renewable Energy Sources and for Other Purposes and Section 5 of its Implementing Rules and Regulations (IRR) mandated the ERC, in consultation with the National Renewable Energy Board (NREB) to formulate and promulgate Feed-In Tariff System Rules. The ERC already approved the Feed-In Tariff Rules (FIT Rules) on July 12, 2010 and it became effective on August 12, 2010.

This mechanism entails the setting up of a new charge to consumers, called the FIT-Allowance or FIT-All. The ERC is confronted with the challenge to be prepared to explain and make the public understand the FIT-All, which is a uniform charge for all the customers from Luzon, Visayas, and Mindanao. The FIT-All is similar in concept to the Universal Charge (UC) and is based on the premise that all will be benefitted from renewable energy sources in the long run.

Similarly, since the law pushes for renewable energy, the other main challenge for the ERC is to balance consumer welfare and interest with that of the objective of the RE Law to promote the development of RE sources in the country, given the high cost of producing renewable energy.

GREEN ENERGY OPTION

Green Energy Option is a mechanism to be used to empower end-users to choose renewable energy in meeting their energy requirements. Under this mechanism, end-users may directly contract electricity from RE facilities. The ERC’s role is to develop the necessary regulatory framework for this mechanism.

NET METERING FOR RE

Net Metering for renewable energy is a consumer-based renewable energy incentive scheme where a distribution grid user has a two-way connection to the grid and is only charged for his net electricity consumption and is credited for any overall contribution to the electricity grid. The main objective of the Net Metering Program is to encourage end-users to participate in renewable energy generation. Under this program, DUs may enter into Net-Metering agreements with qualified end-users who will be install-ing an RE System. Qualified end-user means those entities that generate power from eligible on-site RE facility (i.e. house or office building with photovoltaic system). The ERC, in consultation with the NREB, is mandated to develop the standards and pricing methodology for this program.


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FINANCIAL HIGHLIGHTS

Balance SheetDecember 31, 2010

ASSETS

Current AssetsCash

Cash on Hand 299,401.50 Cash in Bank 585,758.16 885,159.66

ReceivablesAccounts Receivables 55,975.89 Inter-Agency Receivables 1,185,730.14 Other Receivables 64,764.45 1,306,470.48

InventoriesOffice Supplies Inventory 1,965,464.09 Accountable Forms Inventory 136,496.20 2,101,960.29

PrepaymentsPrepaid Insurance 104,963.88 Other Prepaid Expenses 453,898.81 558,862.69

Other Current Assets - Guarantee Deposits 37,620.00Total Current Assets 4,890,073.12

Property, Plant and EquipmentLeasehold Improvements, Buildings 3,388,773.35 Office Equipment 1,601,316.92Furniture and Fixtures 8,324,052.78 IT Equipment and Software 44,756,384.27 Library Books 92,964.21 Communication Equipment 1,583,296.58 Technical and Scientific Equipment 36,590,319.04 Medical, Dental & Laboratory Equipment 11,500.00 Motor Vehicles 10,813,450.00 Other Property, Plant and Equipment 11,106,881.43 Total Property, Plant and Equipment 118,268,938.58 Less: Accumulated Depreciation 52,119,421.83 Property, Plant and Equipment, Net 66,149,516.75

Other Assets 514,723.97

TOTAL ASSETS 71,554,313.84

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LIABILITIESAccounts Payable 8,936,270.71 Due to Officers and Employees 1,241,825.46 Due to BIR 625,647.11 Due to GSIS 17,031.04 Due to Pag-Ibig 5,373.09 Due to Philhealth 1,437.50 Performance/Bidders/Bail BondsPayable 605,500.00 Other Payables 620,544.57

TOTAL LIABILITIES 12,053,629.48

EQUITYGovernment Equity, January 1 41,181,535.67Retained Operating Surplus

Current Operations 4,804,264.96

Prior Years' Adjustments (5,209,533.70)

Total Retained Operating Surplus (405,268.74)

TOTAL EQUITY 59,500,684.36

TOTAL LIABILITIES AND EQUITY 71,554,313.84

Source: 2010 ERC Audited Financial Statements

2010 REVENUE SOURCES

The ERC’s income in 2010 reached PhP995.194 million. This was 118% higher than the projected 2010 income of PhP456.320 million, and 112% higher than the actual 2009 income of PhP470.576 million.

There was a significant increase in the 2010 collection due to the payment of the National Grid Corporation of the Philippines (NGCP) amounting to PhP468.4 million which was, however, made under protest. The Court of Appeals recently issued a De-cision stating that the NGCP is exempted from paying government taxes and charges. However, since said Decision has not reached finality yet, the NGCP payment remains booked as ERC revenue.

If the NGCP payment is to be excluded, the total collection for 2010 will amount to PhP526.79 million, which is 15% higher than projected 2010 income and 12% higher than actual 2009 income.


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Below is the breakdown of the sources of ERC’s income

Particulars July to December(PhP/kWh)

Permits & Licenses 213,133,778.94 Permits & Licenses 213,133,778.94 Meter Testing Fees 63,245,062.00 Supervision & Regulation Fees 701,685,764.20 Fines & Penalties 16,719,981.82 Other General Income 409,470.90

TOTAL 995,194,057.86

The bulk of the income or 71% came from Supervision and Regulation Fees, 21% was from Permits and Licenses, and the rest from Meter Testing Fees and Fines and Penalties imposed by ERC.

2010 BUDGET APPROPRIATIONS

The ERC’s 2010 budget amounted to PhP190.642 Million, of which 63% or PhP121.005 million was for Personal Services (PS) and 37% or PhP69.637 million was for Mainte-nance & Other Operating Expenditures (MOOE). There was no budget allocated for the ERC’s Capital Outlay.

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In comparing the 2010 Budget with the 2009 Budget of Php177.6 Million, note that there was a 7.3% increase in the budget. Note also that the PhP190 Million 2010 Budget was only 20% of its actual income for that same year. This is a clear indication that the ERC is revenue-generating and contributes to the government coffers.


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DIRECTORY OF ERC OFFICIALS

Zenaida G. Cruz-DucutChairpersonRauf A. Tan

CommissionerAlejandro Z. Barin

Commissioner

Maria Teresa A. R. CastañedaCommissioner

Jose C. ReyesCommissioner

Francis Saturnino C. Juan Executive Director

Ellen C. EbcasOIC, Finance and

Administrative Service

Noel J. SalvaneraDirector, Legal Service

Francisco Jose S. Villa, Jr.Director, Planning and

Information Service

Ma. Corazon C. Gines Director, Consumer

Affairs Service

Floresinda B. DigalOIC, Regulatory

Operations Service

Debora Anastacia T. LayuganDirector, Market

Operations Service

Isabelo Joseph P. Tomas II OIC, General Counsel and Secretariat to the Commission

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Gregorio L. OfalsaAttorney V

Luzviminda N. CabalbagChief, Finance Division

Crispin C. CarlosAttorney V

Maria Floreselda S. Abalos-Sampaga

Attorney V

Delia B. CastaOIC, Administrative

Division

Sharon O. MontañerChief, Planning Division

Nimrod M. PañaresChief, Management

Information System Division

Josefina N. BuensucesoChief, Public Information

Division

Alvin Jones M. OrtegaOIC, Tariffs and Rates

Division

Wilbert S. BaliliaChief, Spot Market Division

Domingo G. Ramos, Jr.OIC, Licensing and Market

Monitoring Division

Edwin O. OcenarOIC, Meter Division

Legario L. Galang, Jr. OIC, Standards and Compliance

Monitoring Division

Alfredo A. MendozaOIC, Contestable Market Division

Nelson G. CanlasChief, Investigation and Enforcement Division

Alfredo P. Vergara, Jr.Chief, Consumer Service

Division

Joel Y. BontuyanOIC, Visayas Office

Cirilo N. CasauayOIC, Mindanao Office

Teresita A. CabriuleHead, Internal Audit Unit


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