energy regulatory commission erc case no...securities and exchange commission (sec) certificate...

IN THE MATTER OF THEAPPLICATION FOR APPROVALOF THE ELECTRICITY SUPPLYAGREEMENT (ESA) BETWEENORIENTAL 'MINDOROELECTRIC COOPERATIVE,INCORPORATED (ORMECO)AND DMCI POWERCORPORATION (DPC), WITHPRAYER FOR THE ISSUANCEOF PROVISIONAL AUTHORITY

ERC CASE NO. 2014-085 RC

ORIENTAL MINDOROELECTRIC COOPERATIVE,INCORPORATED (ORMECO)AND DMCI POWERCORPORATION (DPC),

Applicants.)(- - - - - - - - - - - - - - - - - - - - - - -)(

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIES:

Notice is hereby given that on June 11, 2014, Oriental MindoroElectric Cooperative, Incorporated (ORMECO) filed an application forapproval of its Electricity Supply Agreement (ESA) with OMCI PowerCorporation (OPC), with prayer for the issuance of provisionalauthority.

In the said application, ORMECO alleged, among others, that:

1. It is a non-stock, non-profit rural electric cooperative dulyorganized and existing under the Philippine laws, withprincipal office at Barangay Sta. Isabel, Calapan City,Oriental Mindoro;

ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7, 2014 of 20

2. It is authorized by the National ElectrificationAdministration (NEA) to operate the electric powerdistribution system in the Municipalities of Baco, Bansud,Bongabong, Bulalacao, Gloria, Mansalay, Naujan,Pinamalayan, Pola, Puerto Galera, Roxas, San leodoro,Socorro, and Victoria, and in the City of Calapan, all in theProvince of Oriental Mindoro (Franchise Area). Copies ofits Certificate of Franchise are attached to the applicationto form integral parts thereof. It operates in a NationalPower Corporation - Small Power Utilities Group (NPC-SPUG) area;

3. On November 11, 2013, it executed an ESA with OPC. Acopy of the said ESA is, likewise, attached to theapplication to form an integral part thereof;

4. OPC is a corporation duly organized and existing underthe Philippine laws, with principal office at the 3rd Floor,OMCI Plaza Building, 2281 Don Chino Roces Avenue,Makati City. Copies of relevant documents evidencing itsdue incorporation, registration, and permit to operate as ageneration company are attached to the application asfollows to form integral parts thereof:

Document AnnexArticles of Incor oration and B -Laws of OPC "C"Securities and Exchange Commission (SEC) Certificate "0"of Re istration

5. By and pursuant to Section 25, 43 (u), and 45 (b) ofRepublic Act No. 9136, otherwise known as the ElectricPower Industry Reform Act of 2001 or the EPIRA, itsImplementing Rules and Regulations (IRR), ResolutionNo. 21, Series of 2011 or the ERC Amended Guidelinesfor the Setting and Approval of Electricity GenerationRates and Subsidies for Missionary Electrification Areas,and other pertinent rules and regulations, it submits theinstant application to the Commission for dueconsideration and approval of the ESA it executed withOPC',

,, . ,


Statement of Facts

6. The Province of Oriental Mindoro depicts a tropicalparadise which attracts tourists for its natural beauty. Byreason of the economic and tourism development in theProvince, it wants to ensure the adequacy and reliabilityof energy supply within the Franchise Area;

7. It currently sources its energy requirementspredominantly from oil-based power plants, withadditional supply from mini-hydro power plants. A copy ofits existing power suppliers is attached to the applicationto form an integral part thereof;

8. Considering the impending planned full privatization andphase out of one of its suppliers, the NPC in July 2014, itdeemed it essential to procure additional power which canoperate at full service capacity, which mainly performs thefunctions of base load, peaking, regulation, load following,spinning reserve, and ancillary services;

9. In view of the aforementioned premises and consistentwith the Department of Energy (DOE) Circular No. 2004-01-0011 and ERC Resolution No. 11, Series of 20052

, itpassed Board Resolution No. 12-137, which approved theconduct of Competitive Selection Process (CSP) for the15 MW - 20 MW additional power supply in its FranchiseArea;

10. Upon approval of the authority to launch the aforesaidCSP by the DOE as evidenced by a letter attached to theapplication, the CSP was conducted as follows:

10.1 It published an "Invitation to Apply for Eligibility andto Bid" in the March 27, 2013 and April 3, 2013issues of The Philippine Daily Inquirer. Copies ofthe invitation to participate in the CSP are attachedto the application to form integral parts thereof;

1 Prescribing the Rules and Procedures for Private Sector Participation inExisting NPC-SPUG Areas pursuant to Rule 13 of the Implementing Rules andRegulations of the Electric Power Industry Reform Act of 2001 (EPIRA-IRR)

2 Adopting the Guidelines for the Setting and Approval of Electricity GenerationRates and Subsidies for Missionary Electrification Areas


10.2 In response to the said invitation, fourteen (14)power providers, including DPC, expressed theirinterests to participate in the CSP. DPC submittedits Letter of Interest on April 8, 2013, conveying itsintent to apply for eligibility and to bid. A copy of theletter is, likewise, attached to the application to forman integral part thereof;

10.3 From the fourteen (14) power providers, only eight(8) prospective power providers purchased the BidDocuments prepared by its Special Bids andAwards Committee (SBAC) and Technical WorkingGroup (TWG). However, only three (3) of the saidpower providers submitted their respective bids;

10.4 On August 28, 2013, the its SBAC and TWG, jointlyevaluated the Bid Documents submitted by theremaining three (3) interested power providers. Theevaluation resulted in DPC being declared to be thelone qualified bidder, which has submitted thelowest calculated and responsive commercial bid.A copy of the Joint Evaluation Report is attached tothe application to form an integral part thereof;

10.5 On even date, its Board of Directors passed BoardResolution No. 13-133, confirming and approvingthe Joint Evaluation Report of its SBAC and TWG;and

10.6 On September 27, 2013, the DOE issued aCertification to certify that a successful CSP wasconducted in the selection of additional powerprovider as prescribed by ERC Resolution No. 21,Series of 2011 in relation to DOE Circular No. 2004-01-001. A Notice of Award was accordingly issuedto DPC for the 15 MW Bunker C-Fired Diesel PowerPlant;

11. In view of the foregoing, on November 11, 2013, itexecuted with DPC the subject ESA, which provides forthe terms and conditions in the construction, operation,and maintenance of 15 MW Bunker C-Fired Diesel PowerPlant in Calapan City, Oriental Mindoro;

" ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7,2014 of 20 .~.,

. Abstract of the ESA and Other Related Information

12. The following are the salient features of the ESA:

12.1 Build-Own-Operate (BOO) Basis. DPC shallbuild, own, and operate a Bunker C-Fired DieselPower Plant with an installed capacity of 15 MWand shall be deployed and operated at CalapanCity, Oriental Mindoro. It shall own all thestructures, fixtures, fittings, machinery, installations,and equipment on the sites or used in connectionwith the Project;

12.2 Cooperation Period. The cooperation period shallbe twenty (20) years which shall take effect oncommercial operation of the project, subject to anextension, in accordance with the ESA;

12.3 Supply of Electricity. DPC shall supply it with aguaranteed dependable capacity of 15 MW BunkerC-Fired Diesel at any given time during thecooperation period;

12.3.1 Delivery Points. The point of deliveries ormetering systems shall be at the load endside of the 13.8 kV voltage line located atthe NPC Substation; and

12.3.2 Planned and Unplanned Downtime. hiorder to undertake the necessary overhaul',maintenance, inspection and repair, opeshall be entitled to a period of PlannedDowntime as provided in the Fourth (4th)

Schedule of the ESA. However, there shallbe no Planned Downtime during summer.Meanwhile, DPC shall notify ORMECO ofthe occurrence of any unplanned downtimeprovided that it shall give its best estimateof the probable duration thereof;

'\. ' ..'

ERC Case No. 2014-085 RCNOTICE OF PUBLIC tlEARING/July 7,2014 of 20 ';' . . .'

12.4 Electricity Fees. ORMECO and OPC agree on thefollowing fees for the duration of the cooperationperiod:

True Cost Generation Rate (TCGRl

TCG

Where:

TCG

TCGs

VAT

=

=

=

=

*(TCGs + TCGR) (1 + VAT)

Total True Cost of Generation

True Cost of Generation for theBase Load

True Cost of Generation forRegulation

Applicable Value-Added Tax

True Cost of Generation for Base Load (TCGsl

TCGs = CRFs + FOMs + VOMs + LOCs +FCs

Where:

CRFs = Capital Recovery Fee for the BaseLoad

FOMs = Fixed Operations andMaintenance Fee

VOMs

LOCs

=

=

Variable OperationsMaintenance Fee

Monthly Total Cost of Lube

and

~.ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7, 2014 of 20 _,_ .

FCB = Total Cost of Heavy and Light FuelOil

Capital Recovery Fee for Base Load (CRFgl

GRFB

Where:

CFB

=

=

=

OPC Bid Rate for the CapacityFee for Base Load ofPhP3.1404/kWh

Actual Energy delivered for theBase Load and for the BillingMonth measured at the agreedpoint of delivery or the minimummonthly Energy Off-Take for BaseLoad of 1,800,000 kWh, whicheveris higher

Fixed Operations and Maintenance Fee for BaseLoad (FOMB}

FOMB

Where:

= FOMRB + ES1

FOMRB = Monthly Rate for Fixed Operationsand Maintenance

Actual Energy delivered for BaseLoad and for the Billing Monthmeasured at the agreed point ofdelivery or the minimum monthlyEnergy Off-Take for Base Load of1,800,000 kWh, whichever ishigher

. "...~~- -


Fixed Operations and Maintenance for BaseLoad (FOM~

FOMRs =

Where:

BFOMRs =

BFOMRs x (CPlc + CPls)

Base/Bid Monthly Rate for FixedOperations and Maintenance ofPhPO.5190/kWh

CPlc

CPls

=

=

Consumer Price Index (CPI) for allIncome Households in thePhilippines by Commodity Groupof the National Statistics Office(NSO) for the month preceding thecurrent billing month

Base CPI for all IncomeHouseholds in the Philippines byCommodity Group of the NSO forthe month of May 2013, equivalentto 132.9

Variable Operations and Maintenance Fee forBase Load (VOM~

VOMs

Where:

= VOMRs + ES2

VOMRs =

ES2 =

Monthly Rate for VariableOperations and Maintenance forBase Load

Actual Energy (kWh) delivered forBase Load and for the BillingMonth measured at the agreedpoint of delivery

.. ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARtNG/July7, 2014 of 20

Variable Operations and Maintenance for BaseLoad (VOMR~

VOMRB =

Where:

BVOMRs =

BVOMRB x (CPlc I CPIB)

Base/Bid Monthly Rate forVariable Operations andMaintenance, equivalent toPhPO.6880/kWh

Monthly Total Cost of Lube for Base Load{LOCBl

LOCB

Where:

GLOCs

ALP

=

=

=

=

GLOCB + ALP X EB2

Guaranteed Lube OilConsumption for Base Load of0.0006 Ii/kWh

Actual Weighted Average cost ofLube expressed in PhP per literincluding the cost of freight,insurance, hauling charges, andtaxes (exclusive of VAT)supported by fuelsuppliers'/haulers' invoices

Actual Energy (kWh) delivered forBase Load and for the Billingmonth measured at the agreedpoint of delivery

Total Cost of Heavy and Light Fuel Oil for BaseLoad (FC~

FCB = HFOB + LFOB

, -

" ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7, 2014 of 20 "__., ...., ..~~

Where:

HFOB

LFOB

=

=

Total Cost of Heavy Fuel Oil forBase Load and for the BillingMonth

Total Cost of Light Fuel Oil forBase Load and for the BillingMonth

Total Cost of Heavy Oil for Base Load (HFOBl

HFOB

Where:

= GHFOCB x FR x BP x EB2

GHFOCB = Guaranteed Heavy Fuel OilConsumption for Base Load of0.2393 Ii/kWh

FR

BP

= Fuel Ratio for Bunker of ninety-seven percent (970/0)

Actual weighted average cost ofHeavy Fuel Oil expressed in PhPper liter including the cost offreight, insurance, haulingcharges, and taxes (exclusive ofVAT) supported by fuelsuppliers'/haulers' invoices

Total Cost of Light Fuel Oil for Base Load (LFOBl

LFOB

Where:

GLFOCs =

GLFOCB x FR x DP x EB2

Guaranteed Light Fuel OilConsumption for Base Load of0.2393 Ii/kWh

, .

, .ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7,2014 of 20

FR

DP

=

=

Fuel Ratio for Diesel for BaseLoad, equivalent to three percent(3%)

Actual weighted average cost ofLight Fuel Oil expressed in PhPper. liter including the cost offreight, insurance, haulingcharges, and taxes (exclusive ofVAT) supported by fuelsuppliers'/haulers' invoices

True Cost of Generation for Regulation (TCGRl

TCGR

Where:

=

=

=

=

=

=

CRFR + FOMR + VOMR + LOCR +FCR

Capital Recovery Fee for theRegulation

Fixed Operations andMaintenance Fee for Regulation

Variable Operations andMaintenance Fee for Regulation

Total Cost of Lube for Regulation

Total Cost of Heavy and Light FuelOil for Regulation

Capital. Recovery Fee for Regulation (CRFBl

, .

" .

ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7,2014 of 20_", '. ..,'_ ...',

Where:

CFR = Bid Rate for the Capacity Fee forRegulation, equivalent toPhP3.1404/kWh

ER1 = Actual energy delivered by DPCfor Regulation and for the Billingmonth measured at the agreedpoint of delivery or the minimummonthly Energy Off-Take for

, regulation, equivalent to1,800,OOOkWh except for themonths of April and May, where itis increased to 5,500,OOOkWh,whichever is higher

Fixed Operations and Maintenance Fee forRegulation (FOMBl

Where:

=

FOMRR = Monthly Rate for Fixed Operationsand Maintenance for Regulation

Monthly Rate for Fixed Operations andMaintenance for Regulation (FOMRBl

Where:

BFOMRR =

BFOMRR x (CPlc / CPls)

Base/Bid Monthly rate for FixedOperations and Maintenanceequivalent to PhPO.5190/kWh

, '

. ' .... -, ..

ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7,2014 of 20

Variable Operations and Maintenance Fee forReg ulation(VOMBl

Where:

=

VOMRR = Monthly Rate for VariableOperations and Maintenance forRegulation

Actual energy (kWh) delivered forRegulation and for the BillingMonth measured at the agreedpoint of delivery

Monthly Rate for Variable Operations andMaintenance for Regulation(VOMRBl

VOMRR =

Where:

BVOMRR =

BVOMRR x (CPlc / CPls)

Base/Bid Monthly Rate forVariable Operations andMaintenance of PhPO.6880/kWh

Total Cost of Lube for Regulation (LOCB>.

Where:

=

=

GLOCRx ALP X ER2

Guaranteed Lube OilConsumption of 0.0006 Ii/kWh

Total Cost of Heavy and Light Fuel Oil ForRegulation <.E.Q.B1

=

, .ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July7, 2014 of 20

Where:

=

=

Total Cost of Heavy Fuel Oil forRegulation

Total Cost of Light Fuel Oil forRegulation

Total Cost of Heavy Fuel Oil for RegulationJHFOBl

Where:

=

GHFOCR = Guaranteed Heavy Fuel OilConsumption for Regulationequivalent to 0.2393 Ii/kWh

Total Cost of Light Fuel Oil for RegulationlLFORl

= GLFOCRx FR x DP x ER2

Where:

GLFOCR = Guaranteed Light Fuel OilConsumption for Regulation,equivalent to 0.2393Li/kWh

12.4.1 Recovery of the New Power Producer -True Cost of Generation Rate (NPP-TCGR). If the TCGR is higher than theSubsidized Approved Generation Gate(SAGR), OPC shall be allowed to recoverthe difference between the TCGR and theSAGR from it, or from the MissionaryElectrification Subsidy (ME Subsidy) whichrefers to the subsidy funded from the

, 'ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7, 2014 of 20

Missionary ElectrificationCharge (UCME); and

Universal

12.4.2 Prompt Payment Discount (PPD). It shallbe entitled to a discount at the rate of threepercent (3%) of the total Capacity Fee andO&M Fee paid within ten (10) calendardays from receipt of OPC's invoice,provided that it does not have any overduepayment;

Commercial Advantage of the Generation Rate andImpact on ORMECO's Overall Rates

13. With the increasing growth of commercial establishmentsin the Province and the continuous expansion ofresidential areas, the additional power supply of 15 MWBunker-C Fuel-Fed Fadlity will guarantee stable andefficient supply of electricity that will cater the increasingdemand of power by the member-consumers;

14. With its expected availability and supply of power fromwind and additional run-of-river hydropower plants, whereenergy to be produced is dependent on the availability ofwind and water, there is a need for an equivalentcontrollable plant to provide base load and spinningreserve to assure the continuous supply of qualityelectricity to the system;

15. The ESA it executed with OPC is a long-term solution tothe power deficiency crisis within the Province. Thesupply of additional power will guarantee uninterruptedpower service even during the summer season wherethere is less generation for wind and hydropower plantstherein;

16. The TCGR of OPC is fair and reasonable, having beendeclared as the lowest calculated and responsivecommercial bid among the power suppliers whichparticipated in the CSP. Thus, the award of the ESA toOPC will contribute to the stabilization of the power supplyin the Province of Oriental Mindoro in the least costmanner;

'~ ..


17. More importantly, the electricity fees under the ESA willnot adversely affect the existing rates which it bills to itsmember-consumers considering that it remains to be theapproved SAGR which will be passed on to its member-consumers. The operation of OPC as a new powersupplier will result in efficiency and improvement in thepower supply in the Province of Oriental Mindoro. Therewill also be a reduction in the government's missionarysubsidy representing the savings between SPUG'scurrent costs of generation and OPC's lower true cost ofgeneration rate;

18. Meanwhile, a sample computation of the Power Billing isattached to the application to form an integral part thereof;

19. To further support the instant application for approval ofthe ESA, it attached the following documents to formintegral parts thereof, to wit:

AnnexCreation of Power ul"

"M"uN""0"

20. It is reserving the right to submit other documents insupport of the approval of the application, either in thecourse of the hearing or as may be required by theCommission;

Compliance with the Pre-Filing Requirements

21. It manifests compliance with the pre-filing requirementsmandated under the IRR of the EPIRA and Rule 6 of theERC Rules of Practice and Procedure, as established bythe following:

21.1 Copies of the Certificate acknowledging receipt ofthe instant application with annexes issued by thelegislative Bodies of Calapan City and the Provinceof Oriental Mindoro;

..ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July 7, 2014 of 20

21.2 Notarized Affidavit of Publication stating that theinstant application had been published in anewspaper of general circulation within itsFranchise Area; and

21.3 A copy of the complete newspaper issue where theapplication was published and appeared;

Issuance of Provisional Authority

22. All the foregoing allegations are re-pleaded by referencein support of herein prayer for the issuance of provisionalauthority;

23. Based on its Ten (10)-Year Forecast Data, the maximumdemand of energy in year 2014 shall increase to 37.92MW. A copy of the said Ten (10)-Year Forecast Data isattached to the application to form an integral part thereof;

24. Due to the impending phase out of the NPC in July 2014,the procurement of additional power supply from a NPPwhich is capable of operating at full service capacity is ofthe essence, to avoid looming power interruptions in theProvince of Oriental Mindoro;

25. Further, the continuous load growth in the demand ofenergy by its member-consumers, is one of the pressingreasons for the immediate approval of herein applicationto accommodate any such increase;

26. The urgent need of additional supply of power is socompelling since the delivery of electric services affects abroad spectrum of intertwined economic, social,governmental, and public service activities. Significantly,the business and operations of a public utility is highlyimbued with public interest;

27. The core basis by which it prays for the issuance ofprovisional authority or interim relief prior to final Decisionis Rule 15 of the ERC Rules of Practice and Procedure, towit:

,< '..

ERC Case No. 2014-085 RCNOTICE-OF PUBLIC HEARING/July7,2014 of 20

"Section 3. Action on the Motion. -Motions for provisional authority or interimrelief may be acted upon with or withouthearing. The Commission shall act on themotion on the basis of the allegations ofthe application or petition and supportingdocuments and other evidences thatapplicant or petitioner has submitted and thecomments '. or opposition filed by anyinterested person, if there be any. JJ [Emphasis

... ours];

28. To further support the grant of provisional authority, ajudicial affidavit emphasizing the necessity thereof isattached to the application to form an integral part thereof;

29. In light of the foregoing and in recognition of the fact thata substantial amount of time is customarily needed toevaluate the documents submitted to support theapproval of herein application, it beseeches the kindindulgence of the Commission to approve the instantapplication, immediately, albeit, provisionally, at thesoonest opportune time;

Prayer

30. Thus, its prays that:

30.1 Pending hearing on the merits, a provisionalauthority be duly issued for the immediateimplementation of its ESA with OPC, and that afterdue notice and hearing, the said ESA including theelectricity fees and rate structure therein, be dulyapproved, to retroact from the date of OPC's actualdelivery of power to it; and

30.2 In the event that the TCGR is higher than theSAGR, OPC be allowed to recover the differencebetween the TCGR and the SAGR from the MESubsidy.

I'

.. ..,..

--ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEA~ING/July:l, 2014 of 20 . . - ...._-

On July 4, 2014, DPC filed a "Motion to Join as Applicant withEntry of Appearance" praying, among others, for its inclusion as jointapplicant in the instant proceeding.

In the said motion, OPC alleged, among others, that:

1. It entered into an ESA with ORMECO, whereby it is toconstruct, operate, and maintain a 15 MW Bunker C-FiredDiesel Power Plant for the supply of energy to ORMECOfor a period of twenty (20) years, subject to payment to itof relevant el~ctricity fees;

2. On June 11, 2014, ORMECO filed with the Commissionthe instant application;

3. As a party to the ESA which is, likewise, primarilyinterested in the approval by the Commission, it herebymoves that it be allowed to join as a co-applicant in theinstant case; and

.4. The instant motion is filed solely for the foregoing reason

and shall not delay the conduct of the proceeding.

The Commission has set the application for jurisdictionalhearing, pre-trial conference, expository presentation and evidentiaryhearing on July 30, 2014 (Wednesday) at nine o'clock in themorning (9:00A.M.) at the Solidarity Hall, ORMECO Compound,Calapan City, Oriental Mindoro.

All persons who have an interest in the subject matter of theproceeding may become a party by filing, at least five (5) days prior tothe initial hearing and subject to the requirements in the ERC's Rulesof Practice and Procedure, a verified petition with the Commissiongiving the docket number and title of the proceeding and stating: (1)the petitioner's name and address; (2) the nature of petitioner'sinterest in the subject matter of the proceeding, and the way andmanner in which such interest is affected by the issues involved in theproceeding; and (3) a statement of the relief desired.

..•.

ERC Case No. 2014-085 RCNOTICE OF PUBLIC HEARING/July?, ..2014 of 20

All other persons who may want their views known to theCommission with respect to the subject matter of the proceeding mayfile their opposition to the application or comment thereon at anystage of the proceeding before the applicants conclude thepresentation of their evidence. No particular form of opposition orcomment is required, but the document, letter or writing shouldcontain the name and address of such person and a concisestatement of the opposition or comment and the grounds relied upon.

All such persons who may wish to have a copy of theapplication may request the applicants, prior to the date of the initialhearing, that they be furnished with a copy of the application. Theapplicants are hereby directed to furnish all those making suchrequest with copies of the application and its attachments, subject toreimbursement of reasonable photocopying costs. Likewise, anysuch person may examine the application and other pertinent recordsfiled with the Commission during the usual office hours.

WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable Commissioners, ALFREDO J. NON,GLORIA VICTORIA C. YAP-TARUC, and JOSEFINA PATRICIA A.MAGPALE-ASIRIT, Energy Regulatory C mmission, this yth day ofJuly, 2014 at Pasig City.

.~

ATTY. NdMLJ.SALVANERADirector III, L al Service

rvm/ORMECO and DPC ESA/2014-085 RC/nph