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(NAR) VOL. 21 NO.3 JULY - SEPTEMBER 2010
[ ERC RESOLUTION NO. 12, S. 2010, May 05, 2010 ]
RESOLUTION ADOPTING THE RULES AND PROCEDURES IN THE REVISION OF THE PHILIPPINE DISTRIBUTION CODE AND THE PHILIPPINE GRID CODE
WHEREAS, Section 43(t) of the same Act further mandates the ERC to perform such other regulatory functions that are appropriate and necessary in order to ensure the successful restructuring and modernization of the electric power industry;
WHEREAS, Section 2.2.5.1 of the Philippine Distribution Code (PDC) provides that the Distribution Management Committee (DMC) shall establish and publish its own rules and procedures relating to the conduct of its business, which include, among others, the revision of distribution code provisions;
WHEREAS, Section 2.2.5.1 of the Philippine Grid Code (PGC) provides that the Grid Management Committee (GMC) shall establish and publish its own rules and procedures relating to the conduct of its business, which include, among others, the revision of grid code provisions;
WHEREAS, the DMC and GMC separately issued their proposed “Rules and Procedures in the Revision of the Philippine Distribution Code” and “Rules and Procedures in the Revision of the Philippine Grid Code”, respectively, to establish a systematic and organized methodology of reviewing, evaluating and processing proposals submitted by any party who proposes to revise any provisions of the PDC or PGC, as the case may be;
WHEREAS, on May 25 and 28, 2009, the DMC and GMC conducted a series of expository presentations in Visayas and Luzon, respectively, and on June 18, 2009, they conducted a public consultation in Luzon, all intended for the various stakeholders to present their comments/inputs on the said proposed procedures which were considered in preparation for the issuance of the “Rules and Procedures in the Revision of the Philippine Distribution Code” and “Rules and Procedures in the Revision of the Philippine Grid Code”;
WHEREAS, Section 2.2.5.2 of the PDC provides that the rules and procedures of the DMC shall be approved by the ERC;
WHEREAS, Section 2.2.5.2 of the PGC provides that the rules and procedures of the GMC shall be approved by the ERC;
NOW, THEREFORE, be it RESOLVED, as the ERC hereby RESOLVES to APPROVE and ADOPT, the Distribution Management Committee’s (DMC) “Rules and Procedures in the Revision of the Philippine Distribution Code” and the Grid Management Committee’s (GMC) “Rules and Procedures in the Revision of the Philippine Grid Code” hereto attached and made an integral part of this Resolution as Annexes “A” and “B”, respectively.
This Resolution shall take effect immediately upon its publication in a newspaper of nationwide circulation.
Let copies of this Resolution be furnished the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR), the National Transmission Corporation (TRANSCO), the National Grid Corporation of the Philippines (NGCP) and all Distribution Utilities (DUs).
(SGD.) ZENAIDA G. CRUZ-DUCUT
Chairperson
(SGD.) RAUF A. TAN Commissioner | (SGD.) ALEJANDRO Z. BARIN Commissioner |
MARIA TERESA A.R. CASTAÑEDA (On Leave) Commissioner | (SGD.) JOSE . REYES Commissioner |
Annex A
RULES AND PROCEDURES IN THE REVISION OF THE DISTRIBUTION CODE
1.0 PURPOSE
The purpose of this Rules and Procedures is to guide the Distribution Management Committee and the Rules Revision Subcommittee in reviewing, evaluating, and processing proposals submitted by any party to revise any provision of the Distribution Code pursuant to Sections 2.2.5 and 2.5.4 of the Distribution Code.
This shall also guide stakeholders in proposing revisions to the Distribution Code.
2.0 DEFINITION OF TERMS
2.1 Distribution Code – The set of rules, requirements, procedures, and standards governing Distribution Utilities and Users in the operation, maintenance, and development of their Distribution Systems. It also defines and establishes the relationship of the Distribution Systems with the facilities or installations of the parties connected thereto.
2.2 Distribution Management Committee (DMC) – The committee established by the ERC to perform the functions mentioned in Section 2.2.1 of the Distribution Code and Article II of the Guidelines to Govern the Formation of the Distribution Management Committee.
2.3 Energy Regulatory Commission (ERC) – The independent, quasijudicial regulatory body created pursuant to Republic Act No. 9136, which is mandated to promote competition, market development, ensure customer choice, and penalize abuse of market power in the restructured electricity industry and among other functions, to promulgate and enforce the Philippine Grid and Distribution Codes.2.4 Rules Revision Subcommittee (RRSC) – A subcommittee established by the DMC, tasked to initiate proposals for appropriate revisions of the Distribution Code, and evaluate and make recommendations on the proposed revisions of the Distribution Code.
3.0 DISTRIBUTION CODE REVISION PROCESS
3.1 General
3.1.1 Section 2.5.4.1 of the Distribution Code provides that “Any party who has a proposal to revise any provision of the Distribution Code shall submit the proposed revision, including the supporting arguments and data, to the DMC or to the appropriate DMC subcommittee who shall evaluate the proposal.”
3.2 Notification/Solicitation
3.2.1 The DMC, through its Rules Revision Subcommittee, starting 2010 and every three years thereafter, shall post at the DMC (www.gmcdmc.ph) and ERC (www.erc.gov.ph) websites an invitation to any party to submit proposals to revise any provision of the Distribution Code. The invitation shall prescribe the period of submission of proposals as determined by the DMC.
3.2.2 The DMC shall also post at its website its revision process schedule.
3.3 Submission of Proposals for Revision
3.3.1 Proposals shall consist of the following information:
(1) The name of the proponent (organization or individual as applicable) and contact details.
(2) A statement of the exact change, rewording or new material proposed;
(3) Supporting arguments and data, stating the reason why the Distribution Code should be so revised;3.3.2 Proposals shall be submitted to the DMC within the submission schedule, using the prescribed format (Annex A*), in any of the following forms:
(1) Electronic format through e-mail (e-mail address: pdc@gmcdmc.ph);
(2) Hard copy addressed to:DMC Chairman
DistributionManagement Committee (DMC), Inc.
20/F Pacific Center Building, San Miguel Avenue, 1600 Ortigas Center, Pasig Citysent through mail or fax at number (02) 636-4886.
Proposals received beyond the submission schedule shall be held on the docket and considered in the next round of the revision process.
3.4 DMC Staff Action
3.4.1 The DMC Staff shall:
(1) Evaluate for the completeness of proposals in accordance with section 3.3.1 hereof.
(2) Acknowledge receipt of proposals if found to be complete, otherwise, return the proposals to the sender informing the latter that the proposals submitted were returned due to lack of information;
(3) Collate proposals, as received, in a matrix format (Annex B*);
(4) Distribute to each member of the RRSC the matrix of proposals received.3.5 Subcommittee Evaluation
3.5.1 The RRSC shall evaluate proposals within the time frame. Thus, a subcommittee meeting shall be called by the RRSC Chairperson for such purpose.
3.5.2 Resource persons and/or proponents of the proposals may be invited to clarify arguments and data, including possible conflicts with other rules and guidelines. Invitations shall be issued by the RRSC Chairperson.
3.5.3 When extended technical consideration of proposals is necessary, the RRSC may refer the proposal to the appropriate DMC subcommittee for resolution. Such subcommittee shall submit a report to the RRSC.
3.5.4 The RRSC may request coordination with other entities, such as the Grid Management Committee and the Wholesale Electricity Spot Market, for impact assessment of the proposed revision, if necessary.
3.5.5 The members of the RRSC shall endeavor to decide on the evaluation of proposals based on consensus, rather than by simple majority voting. Contentious proposals shall be referred to the DMC for deliberation and resolution.
3.5.6 The RRSC shall update the DMC on the progress of the evaluation of proposals.
3.6 Endorsement of Proposals
3.6.1 The DMC Staff shall prepare a summary of proposals for RRSC approval. The summary shall be divided into three categories:
(1) Proposals for endorsement as received;
(2) Proposals for endorsement with modification;
(3) Proposals for rejection.3.6.2 The RRSC-approved summary shall be endorsed to the DMC for final review and approval.
3.6.3 The DMC-approved summary shall be endorsed to the ERC, through a board resolution, with a request to conduct expository hearing and public consultation.
3.6.4 Rejected proposals shall be returned to its proponent, through a letter, stating the reason for such rejection.
3.7 Conduct of Expository Hearing and Public Consultation, Presentation and Approval of the Proposed Revisions to the Distribution Code
3.7.1 The DMC, upon approval of the ERC, shall conduct expository hearing and public consultation, both of which shall be presided over by an ERC Commissioner.
3.7.2 The DMC, together with the ERC, shall evaluate the comments of participants in the expository hearing and public consultation. Endorsement to the ERC of the results of the evaluation shall also be in the form of a board resolution.
3.7.3 The DMC Executive Director shall present the proposed revisions before the ERC.
3.7.4 The ERC shall render the final decision on any matter pertaining to Distribution Code revision.
3.8 Publication and Effectivity of the Approved Distribution Code Revisions
3.8.1 After the approval by the ERC of the Distribution Code Revisions, the DMC shall cause its publication in a newspaper of general circulation or the Official Gazette and shall file a certified copy thereof with the Office of the National Administrative Register (ONAR) at the University of the Philippines (UP) Law Center. The DMC shall also post the same on its website.
3.8.2 Distribution Code Revisions shall become effective fifteen (15) days after its publication in a newspaper of general circulation or the Official Gazette, whichever comes earlier.
3.9 Interim Revisions of the Distribution Code
3.9.1 Interim revisions may be endorsed by the DMC to the ERC for approval from time to time, provided that the proposal is of a nature requiring prompt action.
3.9.2 Proposals for interim revision shall be prepared in accordance with Section 3.3.1 hereof. In addition, the supporting arguments shall explain the nature of the proposed revision necessitating prompt action.
3.9.3 Interim revisions shall undergo the same procedures as that of a regular revision but shall be conducted within the shortest timeline possible.
3.9.4 The interim revisions, after the approval of the ERC, shall be effective 15 days after its publication in a news paper of general circulation or the Official Gazette, whichever comes earlier. A certified copy of the interim revisions approved by the ERC shall likewise be filed with the Office of the National Administrative Register (ONAR) at the University of the Philippines (UP) Law Center.
3.10 Printing of the Revised Distribution Code
3.10.1 The title shall be written on the cover page as “Distribution Code (year) Edition”, where (year) is the year the new edition is printed.
3.10.2 The revised Distribution Code shall be printed and presented every three years, or as the DMC deems it necessary, counting from the last date of printing.
4.0 DOCUMENTATION
All documents generated shall be maintained by the DMC.
5.0 EFFECTIVITY
The Rules and Procedures in the Revision of the Distribution Code shall be effective 15 days after its publication in newspaper of general circulation or the Official Gazette, whichever comes earlier.
6.0 PROCEDURE (Text available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City)
Annex B
RULES AND PROCEDURES IN THE REVISION OF THE GRID CODE
1.0 Purpose
Pursuant to Section 2.5.4 of the Philippine Grid Code (PGC), the Grid Management Committee (GMC) and assigned GMC Subcommittee shall evaluate proposed revisions submitted for consideration by any party.
The purpose of these rules and procedures is to guide any stakeholder in proposing amendments and/or revisions to the PGC and justification for such amendments and/or revisions. These rules and procedures shall also guide the GMC in evaluating such proposals and endorsing the same to the Energy Regulatory Commission (ERC).
2.0 Definitions and Acronyms
2.1 Energy Regulatory Commission (ERC) – The independent, quasijudicial regulatory body created pursuant to Republic Act No. 9136, which is mandated to promote competition, encourage market development, ensure customer choice, and penalize abuse of market power in the restructured electricity industry and among other functions, to promulgate and enforce the Philippine Grid Code and the Philippine Distribution Code.
2.2 Grid Management Committee – The Committee established by the ERC to perform the functions mentioned in Section 2.2.1 of the Philippine Grid Code and Article II of Guidelines to Govern the Formation of the GMC.
2.3 Philippine Grid Code (PGC) – The set of rules, requirements, procedures, and standards to ensure the safe, reliable, secured, and efficient operation, maintenance, and development of the high voltage backbone Transmission System and its related facilities.
2.4 Power Industry Stakeholder – a group or organization that is directly affected by developments or changes in the power industry.
2.5 Rules Revision Subcommittee – A permanent subcommittee formed by the GMC and tasked to handle, review, and evaluate proposed revisions to the PGC.
3.0 Grid Code Revision Process
3.1 Proposals for Revising any Provision of the Grid Code
3.1.1 General – Section 2.5.4.1 of the PGC provides that “Any party who has a proposal to revise any provision of the Grid Code shall submit the proposed modification, including the supporting arguments and data to the GMC who shall evaluate the proposal.”
3.1.2 Notification – The GMC shall post the schedule of Grid Code Revision process at the ERC website @ www.erc.gov.ph and GMC website @ www.gmcdmc.ph for information of any party interested in submitting a proposal to revise any provision of the PGC. The GMC members shall assist in the notification by likewise posting the schedule in their respective websites.
The GMC shall also effect the publication of the said schedule in a newspaper of general circulation.
3.1.3 Submission of Proposals – Within the period allowed for receipt of the same, any interested party shall submit in writing or thru email (pgc@ gmcdmc.ph) its proposals, with arguments and relevant data, to amend or revise any provision of the Grid Code to the Chairman of the GMC. Proposals received beyond the submission schedule shall be considered in the next round of Grid Code Revision Process. Proposals shall consist of the following information:
(1) The name of the proponent (organization or individual as applicable) and contact details.
(2) A statement of the exact change, rewording or new material proposed;
(3) Arguments and relevant data, giving the reasons/merits as to why the particular provision should be revised;Proposals shall be submitted to the GMC within the submission schedule, using the prescribed format, in any of the following forms:
(1) Electronic format through e-mail (e-mail address pgc@gmcdmc.ph);
Hard copy addressed to:
GMC Chairman
Grid Management Committee
20/F Pacific Center Building, San Miguel Avenue,
1600 Ortigas Center, Pasig Citysent through mail or fax at number (O2) 636-4886.
Proposals received beyond the submission schedule considered for the next round of the revision process.3.1.4 Staff Action – The GMC Staff shall:
(1) Evaluate for the completeness of proposals in accordance with section 3.1.3 hereof.
(2) Acknowledge receipt of proposals;
(3) Collate proposals, as received, in a matrix format;Distribute to each member of the Rules Revision Subcommittee the matrix of proposals received.
3.1.5 Evaluation of Proposals -– The Rules Revision Subcommittee shall evaluate the proposals within the scheduled time frame. An evaluation report containing the proposals, justifications and recommendations shall be submitted to the GMC for review and then to the ERC for final decision.
3.2 Procedures in Evaluating Proposals
3.2.1 Notice of Meeting – The Rules Revision Subcommittee shall convene and evaluate the proposed amendments or revisions to the PGC. Resource persons or proponents of amendments and revisions may be invited to clarify arguments and data including possible conflicts with other rules and guidelines. Notices and invitations shall be issued by the Chairman of the Subcommittee.
3.2.2 Evaluation Agreements and Contentions – The members of the Rules Revision Subcommittee shall, as much as possible, unanimously agree on the evaluations of proposals. Contentions shall be resolved by voting. Unresolved issues shall be documented and referred to the GMC for deliberation and resolution.
3.2.3 Report to the GMC – The Rules Revision Subcommittee shall update the GMC on the progress of evaluation and shall prepare a report containing the proposals, the result of evaluations, including recommendations and justifications, for approval and endorsement of the GMC to the ERC.
3.3 GMC Endorsement of the Proposed Revisions to the Grid Code
3.3.1 Approval of Evaluation Report – The GMC shall review the evaluation report submitted by the Rules Revision Subcommittee and approve the same. Any contention in the process shall be resolved by voting.
3.3.2 Disapproval of Proposed Revisions – Disapproved proposals shall be returned to the proponent by the GMC through a letter stating the reason for disapproval. Furthermore, the GMC shall submit a report, consistent with PGC Section 2.5.4.3.
3.3.3 Endorsement of Proposed Revisions to the PGC – the endorsement of the evaluation report containing the proposed revisions to the grid code shall be in the form of a GMC Resolution. The endorsement and evaluation report shall also include a request to conduct an expository hearing and a public consultation, both of which shall be presided by an ERC Commissioner.
3.4 Expository Hearing/Public Consultation and Decision on the Proposed Revisions to the PGC
3.4.1 Expository Hearing/Public Consultation – The GMC, upon approval of the ERC, shall conduct the scheduled expository hearing and public consultation presided upon by a Commissioner of the ERC
3.4.2 Evaluation of Comments from the Public Consultation – The GMC, together with the Regulatory Operations Service (ROS) shall evaluate the comments of the participants during the public consultation. Their evaluation report shall be submitted to the Commission for comments.
3.4.3 Presentation to the Commission – The GMC Executive Director shall present the final matrix of revisions to the Commission for their approval.
3.4.4 ERC Decision – Upon receipt of final decision rendered by the ERC pertaining to the Grid Code Revision, the GMC shall make arrangements for the publication of the revised Philippine Grid Code.3.5 Publication and Effectivity of the Approved PGC Revisions
3.5.1 Effectivity of the Revised PGC – The revised PGC shall become effective 15 days after its publication in a newspaper of nationwide circulation and after three certified copies of it are filed with the Oflice of the National Administrative Register (ONAR) of the University of the Philippines Law Center.
3.5.2 Title, Cover Page and Amendment/Revision Number – The Title shall be written on the cover page as “Philippine Grid Code, “year” edition; where “year” is the year the new edition is printed.
3.5.3 Information Dissemination – The GMC, in coordination with the Power Industry Stakeholders, shall disseminate information regarding the latest revision of the PGC and shall print sufficient number of copies for distribution to interested parties.
4.0 Future Revisions of the PGC – The amended PGC shall be published and presented every three (3) years counting from the last date of publication and printing.
Interim amendments/revisions requiring prompt action shall undergo the same procedures as that of a regular revision but shall be conducted within the shortest timeline possible.
After approval by the ERC and publication as provided by paragraph 3.5 hereof, the interim measure shall be deemed as having the force and effect of law.
5.0 Attachment – Revision Process Schedule (Annex C*)
6.0 Effectivity – Upon approval by the GMC through a resolution its effectivity shalln be in accordance with Section 3.5.1.
7.0 PROCEDURE (Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City)
*Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.