f 20141105 012255 resa mbc 100114

RESA Discussion Points

� Interruptible Load Program (ILP)

� ILP Preparatory Activities

� ILP Feedback from Contestable Customers Contracted

� ILP Implementation Activities

INTERRUPTIBLE LOAD PROGRAM

ILP Implementation

4October 3, 2014

Process being finalized is to utilize stand-by generation of

contracted Contestable Customers to relieve system demand

duringYellow and Red Alert Situations

ILP Implementation

5October 3, 2014

ILP Implementation

6October 3, 2014

Customer participation is voluntary and done via coordination

by the DU direct to the customers for confirmation

ILP Implementation

7October 3, 2014

ILP Implementation

8October 3, 2014

Contracted volumes by the RES customer will be re-declared to

MERALCO/DU and settled at the ERC approved ILP rate

ILP Implementation

9October 3, 2014

ILP Implementation

10October 3, 2014

Date with

ILP

De-

loading

Hour

Baseline

kW

(A)

Metered kW

during ILP

(B)

De-loaded

kW

(A – B)

April 1,

2014

2:00pm-

3:00pm

2,305 474 1,831

SAMPLE COMPUTATION:

De-Loaded kWh

De-loaded kWh=Hourly Baseline kWh-Metered kWh during ILP

ILP Implementation

11October 3, 2014

₱18,365

De-loading Compensation=

(₱9.71/kWh x 1,831 kWh)

Incremental De-loading Rate x De-loaded

kWh

+₱585.92

Maintenance Cost

Where:

₱9.71/kWh

Incremental De-loading Rate=

(₱43.26/L x 0.34 L/kWh)

Generation Cost of Fuel x Fuel Consumption

Rate

Generation Cost of Fuel

Generation Cost of Fuel is the average price of

diesel from Caltex, Petron & Shell the city or

municipality where the ILP CC is located as of

the end of the previous calendar month

Fuel Consumption Rate is 0.34 L/kWh

-

₱5/kWh

Average Generation

Charge of ILP CC

1,831 kWh

De-loaded kWh=

(2,305 kW – 474 kW) x 1 hour

Baseline kW – Metered kW

₱585.92

Maintenance Cost=

1,831 kWh x ₱0.32/kWh or ₱23,548 per month,

whichever is lower

De-loading Compensation

De-loading Compensation=Incremental De-loading Rate × De-loaded kWh + Maintenance

Cost

ILP Implementation

12October 3, 2014

₱27,517

ILP Amount=

1,831 kWh x ₱14.71/kWh

Redeclared BCQ x ILP Rate x

₱585.92

Maintenance Cost

Where:

₱14.71/kWh

ILP Rate =

₱43.26/L x 0.34 L/kWh

Generation Cost of Fuel x Fuel Consumption

Rate

Generation Cost of Fuel is the average price

of diesel from Caltex, Petron & Shell the city

or municipality where the ILP CC is located as

of the end of the previous calendar month

Fuel Consumption Rate is 0.34 L/kWh

1,831 kWh

Redeclared BCQs= Generator Redeclared BCQs to Meralco

₱585.92

Maintenance Cost=

1,831 kWh x ₱0.32/kWh or ₱23,548 per

month, whichever is lower

Meralco Payment to ILP RES (ILP Amount)

ILP Amount = [Redeclared BCQ x ILP Rate] + Maintenance Cost

Sample ILP Participation

13October 3, 2014

0

500

1,000

1,500

2,000

2,500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

kW

h U

tili

zed

pe

r In

terv

al

Hour Interval

Complete Deloading from 10am to 1pm (Tuesday

load profile)

Normal Operations Deloaded interval: 10am-1pm

Note: Customer X has ample provision for diesel generator that could address energy needs during deloading.

Sample ILP Participation

Status Quo: No ILP participation

Scenarios:

1- ILP @ Tuesdays, 10am-1pm

2- ILP @ Tuesdays, 12nn-3pm

3- ILP @ Tuesdays, 10am-3pm

4- ILP @ Tues and Thurs, 10am-3pm

5- ILP @ Tues, Thurs, and Sats, 10am-3pm

1,322,809

1,293,658 1,293,216

1,273,802

1,228,646

1,185,538

Status Quo Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5

kWh utilized from the grid of Customer X

(Feb 26-Mar 25, 2014)

October 3, 2014

ACTIVITIES TO BE UNDERTAKEN

ILP Preparatory Activities

16October 3, 2014

� Confirm compensation rate approved by the ERC against embedded

generation costs

� Identify preferred operating hours and sustainable operating period

� Identify personnel to be contact point upon enrolment to ILP

Why Participate?

17October 3, 2014

� Shortage in 2015 will result to Automatic Load Drop (ALD) / Manual Load

Drop (MLD) Scenarios for all those connected to the grid

� Enrolment to ILP will ensure prior notification for any ALD/MLD scenario

during Yellow and Red Alert grid situations

� Operation of stand-by generation capacity will be compensated via ILP

approved rate

FEEDBACK ON ILP

Contestable Segment Feedback

Number of Contracted

RES

Number of Committed

Customers

Committed

Contracted Load for

ILP, MW

12 75 245

IMPLEMENTATION ACTIVITIES

Implementation Activities

� RESA, MERALCO and ERC discussions on-going for the implementation

of ILP on the retail supply segment via re-declaration process of RES

volume to MERALCO

� DOE support being provided to allow for re-declaration of RES volume in

the WESM

� Review of tax applications on-going to determine possible assistance to

be requested involving impact of ILP transactions to both the RES and

participating ILP

Thank You