34th Epira Status Report

34th Electric Power Industry Reform Act (EPIRA)
Implementation Status Report

(For the Report Period April 2019)
Prepared by the
Department of Energy
With Contributions from
Energy Regulatory Commission

Philippine Electricity Market Corporation
National Power Corporation
National Electrification Administration
Power Sector Assets and Liabilities Management Corporation
National Transmission Corporation
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ........................................................................................................ 2

II.PRIVATIZATION .................................................................................................................... 4
A. Generating Assets and Independent Power Producer (IPP) Contracts............................ 4
B. Other Disposable Assets................................................................................................. 6
C. Privatization Proceeds .................................................................................................... 9
D. Concession of the National Transmission Network ......................................................... 9
E. Sale of Sub-Transmission Assets (STAs) ..................................................................... 10
III. PSALM LIABILITY MANAGEMENT .................................................................................. .11
IV. ELECTRICITY RATES....................................................................................................... 12
V. COMPETITION ................................................................................................................... 23
A. WESM Operational Highlights ....................................................................................... 23
B. Updates on WESM Governance Activities .................................................................... 27
C. Market Development Updates ....................................................................................... 39
D. Status of Pending ERC Regulatory Filings .................................................................... 40
E. Establishment of Independent Market Operator (IMO) .................................................. 41
F. Retail Competition and Open Access (RCOA) .............................................................. 42
G. Generating Capacity Market Share and Concentration ................................................. 45
H. Market Concentration.................................................................................................... 47
VI. POWER SUPPLY SECURITY AND RELIABILITY ............................................................. 48
A. Power Generation ......................................................................................................... 48
B. Installed and Dependable Capacity............................................................................... 50
C. Electricity Sales and Consumption ................................................................................ 51
D. Power Projects.............................................................................................................. 55
E. Significant Incidents in Luzon, Visayas, and Mindanao ................................................. 57
F. System Peak Demand .................................................................................................. 66
G. Status of Government Generating Assets ..................................................................... 67
H. Status of Transmission Projects .................................................................................... 68
I. Distribution Infrastructure Projects ................................................................................ 85
VII. TOTAL ELECTRIFICATION.............................................................................................. 86
VIII. PROMOTION OF RURAL ELECTRIFICATION ............................................................... 92
ANNEXES
Annex 1. TransCo Inspection Report Based on Concession Agreement ................................. 97

Annex 2. NGCP Related Petitions to ERC…………………………………………………………..99
Annex 3. ERC Approved Capital Expenditure Projects.......................................................... 104
34th Status Report on EPIRA Implementation

As of April 2019
i
I. EXECUTIVE SUMMARY
The 34th Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation
covers the period November 2018 to April 2019 which includes significant accomplishments,
developments and continuing challenges undertaken by different government instrumentalities and
the power sector as mandated under the EPIRA.
The Power Sector Assets and Liabilities Management Corporation (PSALM) continues with the
privatization activities of the Malaya Thermal Power Plant and and other remaining plants and
National Power Corporation-Independent Power Producer (NPC-IPP) contracts, and the disposal
of other disposable assets to include real estate and unserviceable assets, and waste and junk
materials. With regard to the reduction in PSALM’s foreign debts, as of 1st quarter of 2019, the
remaining balance is down to PhP436.3 billion from the peak of PhP1.23 Trillion as of year 2003 or
a decrease of PhP805 billion from the enactment of the EPIRA in 2001.
The Independent Electricity Market Operator of the Philippines (IEMOP) continuously performs its
function as Market Operator to include acceptance and evaluation of registration requirements
from the Wholesale Electricity Spot Market (WESM) Mindanao participants. Through the
Philippine Electricity Market Corporation (PEMC), the DOE continues its mandate to monitor the
governance of the WESM through its representation from the different technical committees which
undertake regular meetings relative to WESM rules changes, operational audit, conduct of
technical evaluation and studies, investigation of breach of the WESM Rules, and management of
dispute resolution process. Also, the DOE issued the Department Order No. DO2019-03-0009
entitled “Creating a Special Task Force to Assess the Performance of the Wholesale Electricity
Spot Market (WESM) under the Governance of PEMC and Operations of the IMO”, and DC2015-
10-0015 entitled “Providing Policies for Further Enhancement of the WESM Design and
Operations” on November 2015 which instigated the move to develop WESM design and
operations enhancements.
The DOE, despite the challenges restraining the full implementation of Retail Competition and
Open Access (RCOA), continuously exerted efforts in strenghtening competition in the retail
market and empower the contestable customers. Hence, despite the restraining orders issued by
the Supreme Court on various issuances of the DOE and the Energy Regulatory Commission
(ERC), the increase in voluntary participation by Contestable Customers was remarkable at 419%
from 239 in June 2013 to 1,240 as of April 2019, comprising around 68% of the total Contestable
Customers certified by the ERC.
In terms of the electricity pricing as of March 2019, the country’s average electricity rates as of
March 2019 is around PhP8.52/kWh, PhP0.76 centavos higher compared with the December 2018
national average systems rate. Highest increase in rate was posted in the Visayas Grid from
PhP6.75/kWh in December 2018 to PhP7.78/kWh in March 2019 or an increase of 76
centavos/kWh. Luzon and Mindanao grid increased by 45 centavos/kWh and 74 centavos/kWh,
respectively. To further reflect transparency in electricity rates, the DOE issued Department
Circular No. DC2018-09-0026, entitled’ “Adopting the Framework for the Uniform Monthly
Electricity Bill Format” to ensure greater transparency in the billing and charges of Distribution
Utilities for the utmost protection of public interest.
The country’s power supply-demand scenario in 2018 pose challenges as manifested by the
declaration of yellow alerts in Luzon and along with red alerts in the Visayas. Mindanao has
improved in terms of having lesser Red and Yellow alert notices in 2018, compared to the previous
years due to the development of additional stable capacity from large coal-fired power plants in the
grid. While Mindanao supply was relatively stable with the operation of new power plants, the grid
was confronted by issues on non-compliance to demand and supply nomination procedures which
affected the allocation of capacities in the grid and subsequently resulted to minimal power
interruptions in some areas. The country’s 2018 peak demand was recorded at 14,782 MW,
which is 993 MW or 7.2% higher than the 13,789 MW in 2017. The total power supply, in terms of
As of April 2019
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installed capacity, grew by 4.8% from 21,730 MW in 2017 to 22,238.15 MW in 2018. Nine Hundred
Ninety Three and 6/10 (933.6) MW new capacities were added to the country’s supply based in
2018 which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW), hydropower
(80.3 MW) and biomass (34 MW). Luzon contributed additional capacity by 659.5 MW or 71% and
Mindanao at 274.1 MW or 29% while Visayas has not developed any additional capacity for 2018.
The household electrification level as of April 2019 is around 96.12%. Said level corresponds to
22.1 million energized households out of 22.98 million identified and targeted household population
based from the 2015 Census of the Philippine Statistics Authority. The DOE has become more
aggressive in pursuing total electrification with the issuance of Department Order No. 2018-05-
0010 entitled “Creation of A Task Force To Ensure Access To Electricity For the Communities That
Remain Unserved and Underserved By Distribution Utilities” in May 2018 which requires all
Electric Cooperatives (ECs) to submit their Electrification Plan to include areas that are proposed
for alternative service providers.

As of April 2019
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II. PRIVATIZATION
A. Generating Assets and Independent Power Producer (IPP) Contracts
During the report period, in line with the privatization or sale of the Malaya Thermal Power
Plant (MTPP) and its underlying land, PSALM conducts the bidding for the PSALM Board
approved procurement of the Third (3rd) Party Consultant that will undertake the valuation of
the asset. The timeline for the privatization activities has been adjusted in compliance with
said requirement. However, after two (2) failed biddings on the said procurement of 3rd Party
Advisor, PSALM resorted to Negotiated Procurement based on Section 53.1 of the 2016
Revised Implementing Rules and Regulations of Republic Act No. 91841.
On 21 January 2019, PSALM conducted another round of bidding for the procurement of 3rd
party consultancy for the MTPP privatization. However, the bidding was declared a failure after
all the bidders did not meet the eligibility requirements. Due to failure of bidding, PSALM will
conduct another round of negotiated bidding with the following timeline:
Activity Date
Negotiation Meeting 04 February 2019
Offer Submission 18 February 2019
Submission of Valuation Report 10 April 2019
In view of the above, the Request for Proposal (RFP) was posted and was sent to the following
possible bidders:
1. Asian Appraisal;
2. Aviso Valuation and Advisory;
3. Manager TÜV SÜD Industry Service Philippines;
4. Deloitte Touche Tohmatsu India LLP; and
5. LANTAU Group.
Meanwhile, four (4) interested bidders for MTPP sale submitted their documentary deliverables
and were declared compliant with all said requirements as follows:
1. AC Energy, Inc.;
2. D.M. Wenceslao & Associates, Inc.;
3. DMCI Power Corporation; and
4. FGEN Reliable Energy Holdings, Inc.
On 19 February 2019, PSALM issued Supplemental Bid Bulletin (SBB) No. 5 indicating that the
Final Asset Purchase Agreement shall be issued to the abovementioned qualified bidders after
the conduct of Clarificatory Meeting which was held on 05 March 2019.
On 10 April 2019, PSALM issued SBB No. 6 amending the bid submission deadline from 24
April 2019 to 14 June 2019. Subsequently, another amendment is done thru SBB No. 7
indicating the latest deadline of bid submission shall be on 31 July 2019. Said latest bid
submission deadline is considered in time for the issuance of the Notice to Proceed to the Third
Party Consultant for the valuation of MTPP.
1 Section 53.1 of the 2016 Revised Implementing Rules and Regulations of Republic Act No. 9184, to wit:
Two Failed Biddings. Where there has been failure of competitive bidding or Limited Source
Biddingfor the second time as provided in Section 35 of the Act and this IRR.
As of April 2019
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In view of the completion for the the privatization of MTPP, PSALM thru the approval of the
Board commenced the procurement of a third-party consultant that will undertake the valuation
of the asset. Three (3) bidders participated during the bidding held on 04 March 2019, namely:
i) Pricewaterhouse Coopers (PWC); ii) Beyond Energy, Inc. (BEI); and iii) Lantau Group.
On 15 March 2019, the PSALM Bids and Awards Committee declared PWC as the winning
bidder with the highest rated technical proposal which was subsequently approved by the Head
of the Procuring Entity. As part of the procurement process, the Technical Working Group
conducted Post-Qualification of PWC on 22-29 March 2019.
After complying the eligibility requirements during the Post-Qualification process, PSALM
issued the Notice of Award to PWC on 22 April 2019.
Meanwhile, while awaiting for the completion of the sale of MTPP, the PSALM Board awarded
the 2019 service contract for the operation and maintenance of MTPP to Korean company
Soosan ENS Co., Ltd. (Soosan ENS). The term of the said operation and maintenance contract
shall be for a period of one year, or until the plant’s privatization. With an approved budget of
PhP213,000,000.00, Soosan ENS, was declared the lowest compliant bidder with its
PhP205,734,144.00 offer, following its post-qualification.
PSALM issued the Notice of Award to Soosan ENS after it passed all eligibility and technical
assessment. The signing of the contract and the issuance of Notice to Proceed were
subsequently held on 21 January 2019.
For the remaining generating assets and IPP contracts, the latest privatization targets are
indicated in Tables 1 and 2.
Table 1. Schedule of Privatization for Generating Assets as of 30 April 2019

Asset Type/ Rated Capacity
Bid Date Turnover Date
Plant Name (MW)
Owned Generating Plants
Malaya
Thermal
650.00 2019
Power
Plant
Agus 1 & 2
260.00
Hydro
Agus 4 & 5
213.10 For Rehabiltiation
Hydro
Privatization is subject to consultation with Congress
Agus 6 & 7
273.00* and PSALM Board’s policy direction
Hydro
Pulangi
255.00
Hydro
Capacity increased by 19 MW as a result of Agus VI Units 1 & 2 Uprating

Source: PSALM
Table 2. Indicative Privatization Schedule for the Appointment of IPPAs as of 30 April 2019
Contracted
Grid Capacity
Plant Name Bid Date Turnover Date
(MW)/Energy
(GWh)
Luzon Casecnan Multi-Purpose
228.00 GWh 2021
Grid Hydro
Caliraya-Botocan-
797.92 MW 2021
Kalayaan Hydro
Mindanao
Mindanao Coal-Fired 200.00 MW 2020
Grid
Source: PSALM

As of April 2019
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B. Other Disposable Assets
For the sale of other disposable assets which include real estate and unserviceable assets,
waste and junk materials, following are the updates on PSALM’s bidding activities:
• Disposal through Public Auction of Small Value Real Estate Assets (REA)
REA No. of Lots/Units Area, in SQM Location

2
Ocean Villas Phase I, Puerto
Puerto Azul Units and One (1) 168
Azul, Ternate, Cavite
Club Share
Villa Concepcion,
Naga- Bicol Property 1 lot 193 Concepcion Pequena, Naga
City
Plant - 11,147
Campsite- 4,479
Agusan Property 12 lots Forebay & Manolo Fortich, Bukidnon
Water way
109,741
Maco Property 4 lots 11,827 Maco, Compostela Valley
Former Camalaniugan
1 lot 2,148 Camalaniugan, Cagayan
Substation Property
Sudipen Campsite
3 lots 2,041 Sudipen, Ilocos Sur
Property
General Santos City Calumpang, General Santos
3 lots 2,377
Property City
• Disposal through regular Public Bidding (big-ticket REA)
REA No. of Lots/Units Area, in SQM Location

Jasaan, Misamis
Aplaya DPP Land 49 lots 155,502
Oriental
Cebu DPP Land 21 lots 131,228 Toledo City, Cebu
Defunct Laoag DPP
1 lot 3,530 Laoag City
Land
Mexico City,
Mexico Property 1 lot 50,447
Pampanga
PSALM Board approved the services of a 3rd Party Appraiser for the abovementioned REA
pursuant to Government Procurement Reform Act (RA 9184). The budget of which will be
taken from PSALM’s CY 2019 Corporate Operating Budget. The procurement activities
shall have an indicative schedule as follows:
Activity Schedule
Publication of Invitation to Bid 4th week of February 2019
Submission and Evaluation of Bids 3rd week of March 2019
Issuance of Notice to Proceed 1st week of April 2019
Project Completion/ Submission of Report by the Last week of April 2019
Third-party appraiser
• Masterplanning of NPC Diliman Properties
In its effort to maintain its tangible properties, PSALM on 03 January 2019 conducted a
meeting with the National Commission for Culture and the Arts (NCCA) relative to the
Locsin-designed NPC buildings within the Diliman Property which are considered Important
Cultural Property (ICP). The Diliman Property is a 5.1 hectares property located at the heart
of Quezon City’s Central Business District. Due to its strategic location and on-going high-

As of April 2019
6
rise development in adjacent properties, it is considered a prime property with high
potential for residential, commercial and mixed-use development.
On 04 January 2019, PSALM met with the Supreme Court representatives and Locsin
partners to discuss the Terms of Reference (TOR) to be used as reference in the
conceptual design and master planning of the Diliman Property.
On 10 January 2019, a coordination meeting among PSALM, NPC, National Grid

Corporation of the Philippines (NGCP), NCCA, National Museum and the National
Historical Commission of the Philippines was held at NPC relative to the Locsin-designed
buildings. An on-site technical inspection was also conducted for said buildings.
After a rigorous selection process, PSALM shortlists five (5) architectural firms that will
proceed to the Second Stage of the Architectural Conceptual Design Contest for the master
planning and redevelopment of the 5.1-hectare Diliman property. These firms are expected
to design a development concept based on the highest and best use of the property.
The shortlisted firms include the Casa Arkitektura, Concep, Inc., GF and Partners
Architects, Jonathan O. Gan & Associates and WTA Architecture and Design Studio.
On 25 April 2019, the Selection Committee presented the evaluation reports to the
shortlisted firms. Subsequently, an SCB No. 3 was issued on 25 April 2019 notifying the
interested participants of the results of the first stage of the contest.
A consultation meeting was conducted on 02 May 2019 which aimed to provide the
shortlisted firms an opportunity to clarify any concerns they may have on their deliverables.
Aside from the consultation meeting, the shortlisted firms are also entitled to conduct their
own due diligence activities and ocular inspection on an agreed date.
On 26 to 28 June 2019, the firms will present their contest entries to the members of the
PSALM Board as jury. Announcement of results will be on 31 July 2019.
• Disposal of REA through Other Modes
a. Bagac Property
On 22 February 2019, PSALM issued invitation letter to prospective participants for the
Master Planning of the property.
The DOE expressed concerns on the privatization of the Bagac Property that there are
potential uses for the Bagac Property in relation to the nuclear power program that the
DOE seeks to pursue. Thus, on 12 March 2019, PSALM informed the DOE that it is
suspending the design contest for the master planning of the Bagac property.
b. Tiwi Geothermal Power Plant (GPP) Land
On 20 February 2019, PSALM presented for Board’s approval the use of a parcel of
land in Tiwi GPP as relocation site of Families Displaced by Typhoon Usman in Tiwi,
Albay.
On 25 April 2019, the PSALM Board authorized the PSALM Management to negotiate
with the Local Government Unit of Tiwi the disposal of the 11-hectare lots in Putsan,
Tiwi.

As of April 2019
7
c. Reconveyance of GenSan Property to the heirs of Mr. Honorio T. Allado
Coordination meeting relative to the required legal opinion from PSALM’s Office of the
General Counsel is ongoing.
d. Paranaque Properties
On 25 April 2019, the PSALM Board authorized PSALM to negotiate with the National
Housing Authority the disposal of the 4.1-hectare lots in line with the implementation of
E.O. 68, S. 2002.
• Disposal of Waste Oil and Sludge at Ilijan Natural Gas Power Plant, Ilijan, Batangas
The Agency Appraisal Report (AAR) was submitted to the COA on 11 January 2019.
The Invitation to Bid was posted on 07 February 2019 and Opening of Bids was on 06
March 2019.
On 13 March 2019, the AAR was resubmitted to the COA addressing the COA’s
concerns in the previously submitted AAR.
On 02 April 2019, PSALM published the Invitation to Bid.
On 10 April 2019, a Pre-Bid Conference was held and was attended by four (4)
registered bidders, namely:
a. RMS Petroleum Technology and Waste Mgt. Corporation;

b. ADL Envirotechnology, Inc.;
c. Ecology Specialist, Inc.; and
d. Trame Oil and Environmental Specialist, Inc.
• Disposal of Unserviceable Assets of Sold Plants and Other Disposable Assets at

BacMan-Ormat in Manito, Albay, Ligao Stockyard in Ligao, Albay, and Tiwi Geothermal
Power Plant and Philippine Geothermal Production Corporation (PGPC) in Tiwi, Albay
On 14 December 2018, PSALM annulled the ongoing bidding process for the sale of
the subject assets. The exclusion of seamless pipes and accessories located at Tiwi
PGPC stockyard and other items located at BacMan Laydown Area significantly
affected the Minimum Bid Price. The AAR was resubmitted to the COA on 16 January
2019 while the Invitation to Bid was published on 21 February 2019.
PSALM commenced the disposal of assets with the publication of the Invitation to Bid.
on 04 March 2019.
On 11 March 2019, PSALM held a pre-bid conference which was attended by 12

registered bidders as follows:
a. 3 Roses Trading;
b. Bonapor Metal Construction Services & General Merchandise;
c. Izbanda Enterprises;
d. Dong Junk Shop;
e. Microsphere System Technology;
f. SKRAPA Trading;
g. LRGT Trading;

As of April 2019
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h. Riclen Junkshop;
i. RBE Ultimate Enterprises;
j. A.M.E.J Trading;
k. Star William Construction; and
l. CARMs Marketing.
On 28 March 2019, PSALM BAC Disposal declared a failure of bidding due to no bidder
submitted a bid among the above registered bidders.
C. Privatization Proceeds
As of 30 March 2019, PSALM, through the privatization of generation assets, the transmission
business, and the IPP contracted capacities, has generated a total of PhP910 billion. Also, the
actual collection amounted to PhP571 billion.
Table 3. Privatization Proceeds as of 30 March 2019, (in PhP Billion)

Privatization Assets Generated Collected Balance
Generating Assets 162.23 162.23 -
Decommissioned Plants 0.63 0.63 -
Transmission Asset (TransCo) 264.801/ 182.32 84.28
Appointment of IPPAs 482.50 226.252/ 256.25
TOTAL 910.16 571.43 338.73
1/ Privatization Proceeds relative to concession fees are inclusive of Interest on deferred payment
2/ Collections include adjustments in IPPA proceeds based on IPP plant operation
Source: PSALM
PSALM utilizes its privatization proceeds to cover Table 4. Privatization Proceeds Utilization
as of 30 March 2019
maturing obligations such as regular debt
Particulars In US$ Billion
service, debt prepayment, IPP obligations,
Debt Prepayment 68.49
TransCo operating expenses, and other
Regular Debt Service 383.58
privatization-related expenses.
Lease Obligations 172.73
Total collections of PhP571 billion as of March Subtotal 624.80
2019, including interest income on placements, Others 5.07
were exclusively utilized for the liquidation of TRANSCO Opex 0.05
financial obligations amounting to PhP630 billion TOTAL 629.92
as of March 2019. USD1:PhP52.7820 (BSP Guiding Rate dated
30 March 2019)
Source: PSALM
D. Concession of the National Transmission Network
Pursuant to the Concession Agreement (CA) between the Government and the National Grid
Corporation of the Philippines (NGCP), Republic Act No. 9511 or the Franchise Law and the
Construction Management Agreement (CMA), the National Transmission Company (TransCo)
continues to monitor the performance and compliance of NGCP to these Agreements.
For the report period, the Joint PSALM-TransCo Technical, Regulatory, Financial and Legal
Compliance Assessment Team (TRFLAT) and Inspection of Books and Records (IBR) agreed
to start the IBR inspection for CY 2018 in July 2019. The conduct of the IBR is in accordance
with Section 10.012 of the CA.
2
Section 10.01 of the CA states that “The Concessionaire shall maintain complete and accurate books and records in
which it shall make full, true and correct entries of all its transactions in accordance with Philippine GAAP, including
records of the operating and financial history and condition of the Transmission Assets. The Concessionaire shall
maintain a complete and updated copy of such books and records both at its office in the Metro Manila area and at
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TransCo continues on the conduct of inspection of the assets condition and Project Under
Construction (PUC) accomplishments consistent with the inspection protocol established with
the concessionaire. Annex 1 shows the summary of TransCo Inspection Report based on CA.
E. Sale of Sub-Transmission Assets (STAs)
The sale of TransCo’s sub-transmission assets involves 123 sale contracts with 107 interested
distribution utilities (DUs), most of which are electric cooperatives. The sub-transmission assets
include around 4,092 ckt-km. of mostly 69 kV transmission lines and 860 MVA of substation
capacity.
As of 30 April 2019, TransCo has signed 114 sale contracts with 93 DUs/ECs/consortia
amounting to PhP6 billion. These sales cover an aggregate length of 3,833 ckt-kms of sub-
transmission lines and 34,153 sub-transmission structures and 830 MVA of substation
capacity. Of the 114 sale contracts, 72 contracts with total sale price of PhP4.33 billion have
been approved, approved with modification, and disapproved. Included in the said 72 contracts
are eight (8) contracts amounting to PhP261.5 million disapproved as of April 30, 2019 and
posted at the ERC website. The rest of the sale contracts are for filing with the ERC for
evaluation and approval.
another appropriately secure location, and shall provide representatives of PSALM and Transco, with access to such
books and records during normal business hours after reasonable advance written request for PSALM’s monitoring and
audit of the Concessionaire’s compliance and performance with its obligations under this Agreement and other
Transaction Documents.
3
The total ERC approved amount of PhP3.276 billion is lower compared to the total contract amount of PhP4.34 billion due to the
following reasons:
a) Exclusion of some assets from the ERC approval due to reclassification from sub-transmission to transmission assets
b) The lower amount of valuation was used as basis of the ERC approval
c) Exclusion of some assets from the ERC approval since said assets are not yet connected to the sold assets
d) Exclusion of some assets from the ERC approval due to decommissioning
e) DU withdrawal from the ERC Joint Application of the sale contract
f) The STA in the sale contract should be sold to a consortium instead of a single DU because the STA is in a super loop
configuration.

As of April 2019
10
III. PSALM LIABILITY MANAGEMENT
As of March 30, 2019, PSALM’s financial obligations was reduced to PhP436.3 billion or a
decrease of PhP805 billion from 2003 peak level of PhP1.2 trillion. In terms of currency, more
than half (72.2%) of PSALM’s Financial Obligations (FOs) is denominated in dollars, amounting
to PhP314.98 billion. Peso-denominated FOs of PhP91.88 billion accounts to 21.1%, while the
remaining FOs amounting to PhP29.44 billion equivalent to 6.7% is in Japanese Yen.
Figure 1 below shows the movement of the financial obligations of PSALM from 2000 to March
2019.
Figure 1 - PSALM’s Outstanding Financial Obligations Assumed from NPC
Source: PSALM
Table 5. Financial Obligations (FOs) as of 30 March 2019

PhP Equivalent (In Billions)
Debts 258.9
IPP Lease Obligations 177.4
Total 436.3
Source: PSALM
Table 6. Financial Obligations by Currency as of 30 March 2019

Currency Amount in PhP Equivalent % to Total
(In Millions)
USD 314,982.77 72.2%
PHP 91,879.73 21.1%
JPY 29,437.49 6.7%
Total 436,299.99 100%
Exchange Rates Used: BSP Guiding Rate dated March 2019
USD : PhP 1.00 = 52.7820: JPY: PhP 1.00 = 0.4771
Source: PSALM

As of April 2019
11
IV. ELECTRICITY RATES
This Section provides updates on electricity price data and other significant related developments
based on information from the ERC, TransCo, PSALM, NPC, NEA and distribution utilities, among
others. The data on electricity rates provided in this Section are summaries of submissions to the
DOE as well as those gathered thru available sourcess such as websites, among others.
A. Average Electricity Rates

Figure 2 - National Average Systems Rate
The country’s average electricity rates as of
March 2019 is around PhP8.52/kWh,
PhP0.76 centavos higher compared with the
December 2018 national average systems
rate. Biggest increase in rate was posted in
the Visayas Grid from PhP6.75/kWh in
December 2018 to PhP7.78/kWh in March
2019 or an increase of 76 centavos/kWh.
Luzon and Mindanao grid increased by 45
centavos/kWh and 74 centavos/kWh,
respectively.
Figure 3 - Electric Cooperatives’ Average Systems Rate

Meanwhile, the ECs’ average systems rate for
March 2019 is at PhP9.82/kWh, 0.20
centavos lower compared to December 2018
rate. Among the three grids, Luzon grid
increased in rate by 0.20 centavos from Php
9.66/kWh in December 2018 to Php 9.86/kWh
in March 2019, while Visayas and Mindanao
grid decreased by PhP0.84/kWh and
PhP0.16/kWh, respectively.
The national average systems rates of PIOUs Figure 4 - Private Distribution Utilities' Average
Systems Rate
posted an overall increase by PhP0.08
centavos/kWh from PhP7.13 per kWh in
December 2018 to PhP7.21/kWh in March
2019. The decrease in per kwh in Luzon,
Visayas and Mindanao is PhP0.33, PhP1.94
and PhP0.32 centavos per kwh which is due
to the decrease of WESM rate and lower PSA
charges.
Among the Luzon PIOUs, La Union Electric

Company (LUECO) posted the highest rate
for the month of March 2019 at PhP 10.25.
On the other hand, the lowest average rate
was noted for the Lima Enerzone (LEZ) at
PhP 3.80/kWh. The low rates can be attributed to the customer profile of LEZ which is around
99.06% industrial, 0.86% commercial and 0.09% others, on the basis of megawatthour sales. In
the Visayas grid, the Visayan Electric Company (VECO) and Balamban Enerzone’s average

As of April 2019
12
electricity rates for March 2019 decreased by PhP0.07/kWh and PhP0.38/kWh compared to the
December 2018 level of PhP7.30/kWh and PhP6.15/kwh. For the Mindanao grid, Iligan Light and
Power Company (ILPI) increased its rate by PhP2.00/kWh while Cagayan Electric Power and Light
Company (CEPALCO) and Davao Light and Power Company (DLPC) decreased by PhP1.73/kWh
and PhP0.15/kwh.
As shown in Table 7, the ECs’ national average unbundled residential electricity rate for March
2019 was PhP 9.82/kWh. Visayas grid still has the highest average effective residential electricity
rates at around PhP9.93/kWh of which generation costs comprise 55%. On the average,
generation costs comprise the bulk of ECs residential rates at around 55% followed by distribution,
supply and metering charges (DSM) at 18%.
Among the three (3) grids, Mindanao EC residential customers paid the lowest generation costs at
PhP 5.18/kWh. Distribution cost is the next largest component of EC’s residential electricity rates
cost comprising about 18% followed by transmission at 11%.
Source: NEA
Notes:
1 Distribution, Supply and Metering Charges
2 Reinvestment Fund for Sustainable CAPEX
3 Loan Condonation & PEMC-SPA Charge
Table 7. EC's Unbundled Average Residential Electricity Rates, March 2019

LUZON VISAYAS MINDANAO NATIONAL
Bill Subgroup % % % %
PhP/kWh PhP/kWh PhP/kWh PhP/kWh
share share share share
Generation 5.49 55.73 5.48 55.22 5.18 53.80 5.40 55.02
Transmission 1.06 10.71 0.94 9.46 1.09 11.37 1.03 10.53
System Loss 0.77 7.79 0.70 7.07 0.79 8.24 0.76 7.70
DSM1 1.71 17.32 1.82 18.32 1.69 17.55 1.73 17.65
RFSC2 0.36 3.66 0.36 3.63 0.49 5.12 0.40 4.03
3 0.05 0.55 (0.10) (1.02) (0.02) (0.23)
Other Charges (0.05) (0.51)
Subsidy 0.08 0.78 0.03 0.35 0.03 0.32
0.00 0.01
Charges4
Universal 0.45 4.55 0.43 4.46 0.46 4.71
0.49 4.97
Charges5
Other Taxes6 0.03 0.32 0.04 0.42 0.01 0.13 0.02 0.25
Total 9.86 100 9.93 100 9.63 100 9.82 100
4 Lifeline & Senior Citizen Subsidy/Discount
5 Missionary Electrification, Environmental Charges, NPC Stranded Cost
6
Local Franchise &Business Taxes, Real Property Tax
Figure 5 – Private Investor-Owned Distribution Utilities Average Electricity Rates

As of April 2019
13
MERALCO, the largest distribution utility in the country posted an increase in its average residential
electricity rates in the amount of PhP0.17 centavos per kWh from PhP 10.32/kWh in March 2018 to
PhP10.50 in March 2019. For the same period, MERALCO’s effective residential rates for the
different residential customer classes ranged from PhP10.50/kWh to PhP11.70/kWh of which the
highest component was generation costs at PhP5.60/kWh. MERALCO distribution charges for its
different residential customer classes comprised 19-26% of the total effective residential rates
equivalent to about PhP1.96/kWh and PhP3.03/kWh, respectively. Systems loss charges on the
other hand was 47-centavos/kWh.
Table 8. Summary of MERALCO Residential Unbundled Power Rates, March 2019 (PhP/kWh)
0 to 200 201 to 300 301 to 400 Over 400

BILL SUBGROUP % Share % Share % Share % Share
kWh kWh kWh kWh
Generation 5.60 53% 5.60 52% 5.60 50% 5.60 48%

Transmission 0.84 8% 0.84 8% 0.84 8% 0.84 7%
System Loss 0.47 4% 0.47 4% 0.47 4% 0.47 4%
Distribution 1.96 19% 2.24 21% 2.52 23% 3.03 26%
Subsidies* 0.12 1% 0.12 1% 0.12 1% 0.12 1%
Universal Charge 0.19 2% 0.19 2% 0.19 2% 0.19 2%
Fit-All Renewable 0.26 2% 0.26 2% 0.26 2% 0.26 2%
Government Taxes 1.07 10% 1.10 10% 1.14 10% 1.20 10%
TOTAL 10.50 100% 10.81 100% 11.13 100% 11.70 100%
In Table 9, MERALCO’s unbundled power rate for March 2019 is shown. It provides the residential,
commercial and industrial rate at PhP 10.63/kWh, PhP 9.43/kWh and PhP 8.16/kWh, respectively.
Residential customers has the highest power rate followed by commercial and industrial customers.
The bulk of MERALCO’s power rate comes from generation costs which ranges from 53% to 68%
of the power rate. Distribution cost follows at the range of 8% to 23%. Government taxes also is a
large part of MERALCO’s power rate at the range of 5% to 10% of the cost per month.
Table 9. Summary of MERALCO Unbundled Power Rates as of March 2019 (PhP/kWh)

Bill Sub-Group Residential % Commercial % Industrial %
Generation 5.61 53 5.60 59 5.58 68
Transmission 0.84 8 0.94 10 0.77 9
Systems Loss 0.47 4 0.37 4 0.27 3
DSM 2.46 23 1.20 13 0.62 8
Cross (0.29) -3 0.12 1 0.12 2
Subsidies
Universal 0.19 2 0.19 2 0.18 2
Charges
Gov’t Taxes 1.10 10 0.76 8 0.37 5
Fit-All 0.26 2 0.26 3 0.26 3
Charges
TOTAL 10.63 100 9.43 100 8.16 100
Source: MERALCO

As of April 2019
14
Figure 6 – MERALCO Detailed Generation Charge
Source: MERALCO
MERALCO’s bulk purchase come from First Gas Power Corp. (FGPC) - Sta. Rita, South
Premier Power Corporation (SPPC), and First Gas Power Corp. (FGP) – San Lorenzo,
which are all natural gas powered plants. Further, MERALCO also sources a considerable
amount of supply from WESM.
As provided in Figure 7, MERALCO’s average bulk power purchase for the month of March
2019 which came from First Gas Power Corp. (FGPC) - Sta. Rita at 22.50%, South Premier
Power Corporation (SPPC) at 17.90%, and First Gas Power Corp. (FGP) – San Lorenzo at
12.30% which are all natural gas powered plants. About 11.80 percent of MERALCO’s
power supply requirement is bought from the WESM. (updated 04/04/19)
MERALCO has an existing bilateral contract with Quezon Power Phils Ltd. Co.’s (QPPL)
Coal-Fired Power Plant for a contracted capacity of 460 MW for a period of 25 years fom 30
May 2000 until 30 May 2025. Though no Application/Order/Decision was posted at the
ERC website, Guaranteed MEOT as declared in its PSA is 3,288,341,000 kWh which is to
be delivered until 25 December 2023. Another contract is between Sta Rita NatGas Power
Plant of First Gas Power Corporation (FGPC) for a contracted capacity of 1,000 MW which
was granted with Final Authority. The bilateral contract with San Lorenzo NatGas Power
34 Status Report on EPIRA Implementation
th
As of April 2019
15
Plant owned by FGP Corp. (FGP) has a contracted capacity of 500 MW. It is valid for 25
years by virtue of ERC Case No. 2004-074 RC where it was granted with Final authority.
San Miguel Energy Corp.’s (SMEC) Sual Coal fired Power Plant has a contract duration of 7
years or until 2019 for a contracted capacity of 500 MW. Final authority was vested in ERC
Case No. 2012-087 RC. Further, Panay Energy Development Corporation’s (PEDC) Coal-
fired Power Plant has a cooperation period of 20 years from 26 August 2016 unitl 2036 for a
contracted capacity starting from 28 to 70 MW.
Figure 7 - Sources of MERALCO Power Supply Requirement
Source: MERALCO
Figure No. 8 provides MERALCO’s average generation cost in Peso per kwh per month
from with March 2018 to March 2019. Comparing a year on year basis, the figure shows an
increase of PhP1.5205 per kWh in March 2019 as compared to March 2018 data. The
increase was generally attributed to the following: a) depreciation of the Philippine peso; b)
the effect of the imposition of the value-added tax (VAT) on the transmission charge due to
the Tax Reform for Acceleration and Inclusion (Train Law) c) PSALM’s implementation of
ERC Order/Decision for the recovery of NPC and PSALM’s 10th to 17th GRAM applications;
d) PSALM’s implementation of ERC Order/Decision for the recovery of NPC and PSALM’s
15th to 16th ICERA applications; e) PSALM’s implementation of ERC Order/Decision for the
recovery of its TAFPPC and TAFxA / FPPCA and FxA NPC applications; f) lower average
plant dispatch g) normalization of capacity fees; h) tighter supply conditions in Luzon due to
warmer temperatures; i) high fuel prices; j) an uptick in demand and an increase in
Malampaya gas prices; k) high Power Supply Agreement (PSA) and Independent Power
producers (IPP) charges; and l) plant shutdowns and lower average plant dispatch.

As of April 2019
16
Figure 8 - Average MERALCO Generation Charges
Source: MERALCO
Ancillary Service (AS) Charges are computed based on the total cost of AS provision (as billed by
AS providers per service type and per grid) and the total billing determinant of customers who
benefitted from the service.
For Luzon, Total AS cost increased in February 2019 by PhP84.12 Million which is around 6.20%
of the previous month’s AS cost due to the increase in the scheduled AS capacity of thermal
plants. For Visayas, AS cost decreased in February 2019 by PhP22.59Mn or 8.97% as compared
to the previous month’s AS cost due to the decrease in the dispatched AS capacity.The AS cost in
Mindanao decreased in February 2019 by PhP11.43Mn which is about 4.05% of the previous
month’s AS cost due to the decrease in the scheduled AS capacity of hydro plants
Figure 9 – NGCP Average Effective Transmission Charges
L - Luzon
V- Visayas
M - Mindanao
Source: NGCP

As of April 2019
17
B. Feed-in Tariff Allowance (FIT-All)
During the report period, Transco filed with the ERC the determination for the FIT-All rate for the
years 2014-2015, 2016, 2017, 2018, and 2019. Status of the said regulatory filings is shown below.
Year Rate Applied ERC Approval Remarks

(PhP/KW)
2014-2015 PhP0.0406 Provisional Authority Implementation started on
(filed on July 30, (PA) PhP0.0406/kWh January 2015 billing period
2014) Final PhP0.0406/kWh The ERC approved the 2014-
2015 FIT-All Rate on December
10, 2015.
2016 (filed on PhP0.1025 or the Provisional: Implementation started on April
December 22, updated amount at the PhP0.1240/kWh 2016 billing period
2015) time of evaluation Final: PhP0.1830/kWh Approved on May 9, 2017
(docketed May 13, 2017)
Implementation started on June
2017 billing month
2017 (filed on PhP0.2291 or the Final PhP0.2563/kWh Approved on February 27, 2018
December 1, 2016 updated amount at the (docketed May 11, 2018)
time of evaluation effective June 2018 billing
2018 (filed on PhP0.2932 or the No Provisional Authority For ERC Resolution
August 29, 2017) updated amount at the issued to date
time of evaluation
2019 (filed on July PhP0.2780 or the Hearings terminated for
30, 2018) updated amount at the submission of
time of evaluation pleadings/comments
Further, on 29 March 2019, the ERC promulgated ERC Case No. 2017-079 RC regarding the
application filed by TRANSCO for the approval of the Feed-In Tariff Allowance for calendar year
2018 pursuant to the guidelines for collection of the Feed-In Tariff Allowance and disbursement of
the Feed-In Tariff Allowance Fund, subject to the following conditions:
1. TRANSCO is authorized to collect a Feed-In Tariff Allowance equivalent to PhP0.2226/kWh

which is lower by PhP0.0706/kWh, and which is PhP0.0337/kWh lower than the 2017 FIT-All
rate of PhP0.2563/kWh effective next billing cycle;
2. TRANSCO, DUs, RES, NGCP and PEMC are directed to make avialble all its records pertinent
to the implementation of the FIT-All to the Commission as part of a FIT-All audit which shall be
undertaken immediately; and
3. The following entities are also directed to collect FIT-All proceeds and promptly and fully remit
the collections to the FIT-All Fund no later than the 28th day of the following month afer the
close of the Billing Period:
a. DUs to collect FIT-All and Actual Cost Recover Rate (ACRR) from captive consumers and
constetable customers which remain with the DU and those connected with the DU system
which source directly from the WESM;
b. RES to collect FIT-All from contestable customers;
c. NGCP to collect FIT-All from captive consumers that are directly connected to its system
and from directly connected contestable customers which source directly from the WESM;
and
d. PEMC to collect WESM Proceeds as ACRR of eligible RE Plants – WESM from relevant
WESM participants.

As of April 2019
18
For the payment of FIT-eligible RE generators, TRANSCO has entered into Renewable Energy
Payment Agreement (REPA) with 59 RE developers as of December 2018, with 52 of these REPAs
being effective, i.e. these eligible RES have secured all necessary permits and can already be paid
for actual eligible energy generated. The remittance to the FIT-All Fund by Collection Agents of the
FIT-All Fund by Collection Agents of the FIT-All Fund started in March 2015. On a monthly basis,
the Collection Agents (mostly DUs) remit to the FIT-All Fund the collection of the FIT-All which is
included in the power bills of electricity consumers.
The FIT-All rate is currently at the level of PHP0.2563/kWh following the approval of the 2017 FIT-
All rate by the ERC on February 27, 2018 (docketed May 11, 2018) effective June 2018 Billing.
The total claim as of December 31, 2018 is PhP61 Billion excluding interest where about 96.68% of
PhP59 Billion has been paid as of the same period.
Below is the summary of FIT-All Collection as of December 31, 2018.
Year Collection (In PhP Billion) Collection Efficiency (%)

2015 2.05 93.90%
2016 6.58 93.75%
2017 11.13 93.77%
2018 17.09 94.04%
C. Administration of Universal Charge (UC)
This section provides development on the implementation of UC pursuant to Section 34 of the

EPIRA. Highlights include status of collection and disbursements, updates on PSALM’s application
for the recovery of stranded contract costs and stranded debts, and the implementation of UC
collection from self-generating facilities.
1. Universal Charge Remittances, Interests & Disbursements Charge Remittances, Interests

& Disbursements
As of 30 April 2019, the total collections of UC amounted to PhP174.7 billion with interest earnings
from deposits and placements of UC funds amounted to PhP0.20 Billion. On the other hand, UC
fund disbursement amounted to PhP170.9 Billion. Accounting for the inflows and outflows of the
UC fund leaves it with a balance of about PhP4.1 billion.
Below are the details of UC remittances, interests and disbursements:
Table 10. UC Collections as of 30 April 2019 (in Billion PHP)
Particulars Remittances Interests Disbursements Balance
Special Trust Fund – Missionary

Electrification (ME) NPC-SPUG 90.46 0.04 90.49 0.02
Special Trust Fund – ME
Renewable Energy Developer
0.63 0.01 0.28 0.36
Cash Incentive (REDCI)
Special Trust Fund –
Environmental Charge (EC) 2.29 0.12 1.49 0.92
Special Trust Fund – Stranded
Contract Cost (SCC) 77.99 0.03 75.28 2.75
Stranded Debts 3.37 0.00 3.37 0.00
TOTAL 174.74 0.20 170.91 4.05

Source: PSALM

As of April 2019
19
2. UC Remittances
For the period November 2018 to April 2019, PSALM received PhP11.9 Billion in UC remittances
broken down with details reflected in Table 10.
Table 11. UC Remittances to PSALM for the period November 2018-April 2019 (In Billion PhP)
UC-ME UC-ME
Month EC SCC SD Total/Month
(NPC-SPUG) (REDCI)
November 2018 1.11 0.01 0.02 1.38 0.19 2.71
December 2018 1.06 0.01 0.02 1.32 0.18 2.59
January 2019 1.05 0.01 0.02 0.95 0.19 2.22
February 2019 1.07 0.01 0.02 0.53 0.18 1.81
March 2019 0.93 0.01 0.02 0.13 0.16 1.25
April 2019 1.03 0.01 0.02 0.03 0.18 1.27
Total 6.25 0.06 0.12 4.34 1.08 11.85

Source: PSALM
3. UC Disbursements
For the November 2018 to April 2019, PSALM disbursed PhP6.3 billion to NPC-SPUG to fund the
missionary electrification functions, chargeable against the UC-ME fund.
Table 12. UC Disbursements of PSALM for the Period November 2018 to April 2019 (in PhP Billion)
ME
Month ME (REDCI)1/ EC2/ SCC3/ SD Total/Month
(NPC-SPUG)
November 2018 1.11 0.00 - 1.38 0.19 2.68
December 2018 1.07 0.00 - 0.26 0.18 1.51
January 2019 1.05 - - - 0.18 1.23
February 2019 1.07 - - - 0.20 1.27
March 2019 0.94 - - - 0.16 1.10
April 2019 1.01 - - - 0.18 1.19
Total 6.25 0.00 - 1.64 1.09 8.98
1/ No REDCI claim with complete documentary requirements was received during the period January 2019 to April 2019
2/
Awaiting ERC Order/Decision on the disbursement of UC-EC.
3/ Non-disbursement of UC-SCC starting January 2019 due to the full disbursement of the ERC-approved SCC for CYs
2007-2010 amounting to PhP8,547,230,000.00.

Source: PSALM
Pursuant to the Implementing Rules and Regulations (IRR) of the EPIRA, PSALM disburses the
UC funds on UC-ME to the respective beneficiaries as reflected in Annex 1..
4. ERC-Approved UC Rates
Total UC being charged to customers per kilowatt hour amounts to PhP0.3789 as approved by the
ERC.
Type of UC PhP/kWh Recovery Period

UC-ME 0.1561
• UC-ME Subsidy
• Cash Incentive for RE
Developers
• True-up Adjustment (2011)
True-up Adjustment (2010)
UC-EC 0.0025
UC-SCC* 0.1938 Fully recovered
0.0543 12 months

As of April 2019
20
Type of UC PhP/kWh Recovery Period
UC-SD* 0.04281/ Until June 2026
Total 0.3789
Note:
1/Pursuant to ERC Case No. 2013-195RC promulgated on 28 March 2019, the effectivity of the implementation of the new
Universal Charge-Stranded Debts rate is in the amount of PhP0.0428/kWh to be collected by Collecting Entities from
consumers to start on April 2019 billing period.
* UC-SD and UC-SCC currently being collected from electricity end-users until approved amount has been fully recovered.
D. Lifeline Rate Subsidy Program
From September to December 2018, the average monthly total amount of subsidy shouldered by
Non-Lifeline Customers was PhP414 Million. The average amount of subsidy to lifeline customers
of all DUs is PhP2.61/kWh while the amount of subsidy paid for by the non-lifeline customers of all
DUs which is Php 0.08/kWh. In the MERALCO franchise areas, higher amount of subsidy is
provided compared to other franchise areas with average amount of subsidy to non-lifeline at Php
0.09/kWh. For the On Grid ECs, non-lifeline customers subsidized an average of Php 0.05 per kWh
which is also the same for the Off-Grid ECs.
It should be noted that Section 73 of the EPIRA as amended by Republic Act No. 10150 has
extended the implementation of Lifeline program for another 10 years from year 2011 which will be
expiring in the year 2021 as follows: "Section 73. Lifeline Rate. - A socialized pricing mechanism
called a lifeline rate for the marginalized end-users shall be set by the ERC, which shall be
exempted from the cross subsidy phase-out under this Act for a period of twenty (20) years, unless
otherwise extended by law. The level of consumption and the rate shall be determined by the ERC
after due notice and hearing". In case the government decides to extend further the implementation
of the lifeline program, there is a need for another legislative proposal on the matter.
Table 13. Total Amount of Discount per Lifeline Level

PARTICULARS MERALCO Other PDUs ON-GRID EC OFF-GRID EC TOTAL
Average monthly total amount
of subsidy provided by Non- 313,435,175 38,279,120 59,943,045 2,676,906 414,334,246
Lifeline Customers (in Php)
Average monthly total
consumption of Lifeline 115,021,899 17,523,953 24,652,568 1,401,072 158,599,492
Customers (kWh)
Average monthly Total
Consumption of Non-Lifeline 3,662,758,856 586,971,244 1,155,584,393 52,050,535 5,457,365,028
Customers (kWh)
Average amount of subsidy
provided to Lifeline Customers 2.73 2.18 2.43 1.91 2.61
(in PhP/kWh)
Average amount of subsidy
provided to Non-Lifeline 0.09 0.07 0.05 0.05 0.08
Customers (in PhP/kWh)
Source: ERC, MERALCO-URR

As of April 2019
21
E. Mandatory Rate Reduction (MRR)
Pursuant to Section 72 of the EPIRA, NPC is continuously granting to residential customers the
mandatory discount of 30-centavos/kWh. For this report period, focus is given in the Small Power
Utilities Group (SPUG) areas, which is being served by the NPC.
Table 14. NPC-Incurred Amount on Grant of Mandatory Rate Reduction

Billing Month Luzon Mindanao Philippines
January 2018 2,228,446.48 2,220,464.96 4,448,911.44
February 2018 2,257,454.05 2,151,312.36 4,408,766.41
March 2018 1,918,701.20 2,193,716.00 4,112,417.20
April 2018 1,941,629.39 2,170,649.73 4,112,279.12
May 2018 2,570,886.96 2,305,791.50 4,876,678.46
June 2018 2,754,150.13 2,393,601.66 5,147,751.79
July 2018 2,461,777.25 2,323,936.79 4,785,714.04
August 2018 2,262,786.06 2,028,742.02 4,291,528.08
September 2018 1,365,447.06 2,122,050.87 3,487,497.93
October 2018 2,073,566.08 2,137,347.45 4,210,913.53
November 2018 2,478,327.81 2,170,326.44 4,648,654.25
Total 24,313,172.47 24,217,939.78 48,531,112.25
Source: NPC
For the period starting January to November 2018, a total of PhP48,531,112.25 of rate reduction
has already been granted to consumers in SPUG areas. This amount is equally shared by
electricity end-users in the Luzon and Mindanao areas since NPC has already privatized its
generation facilities in the Visayas region. For the month of November 2018, the total rate
reduction increased to 4.6 million recording a 10.40 % increase from October 2018's MRR. Of the
amount, only 24% was granted to consumers in North Luzon area including Marinduque and
Quezon. 17% of the amount was granted to consumers in Camarines Sur area while 13% was
granted to consumers in Palawan grid. Further, 51% of the end-users in Eastern and Western
Mindanao was granted with the discount. The MRR is provided to customers wherein DUs source
supply from NPC.

As of April 2019
22
V. COMPETITION
This section provides an update on key areas of competition to include the operation of the
Wholesale Electricity Spot Market (WESM), commercial operations of Retail Competition and Open
Access (RCOA), implementation of the Reserve Market, and monitoring of compliance to Section 45
of the EPIRA.
A. WESM Operational Highlights
As of 25 April 2019, the total registered participants in the integrated WESM (Luzon and Visayas)
is two hundred sixty-six (266). San Carlos Biopower Inc., a generation company in Visayas was
registered as the new trading participant on February 2019. However, two (2) generation
companies located in Luzon, Therma Mobile, Inc. and Millennium Energy, Inc., ceased their
operations during the report period.
The breakdown of the Generation Companies and Customer Trading Participants is shown in the
table below
Table 15. Registration Update as of 25 April 2019 (Luzon and Visayas)

REGISTERED
CATEGORY DIRECT INDIRECT
TOTAL
LUZ VIS LUZ/VIS LUZ VIS LUZ/VIS
Generation
116 76 36 3 1 0 0
Companies
Customers
Private
distribution
utilities & Local 17 8 4 0 5 0 0
government
utilities
Electric
71 29 28 0 14 0 0
cooperatives
Directly
Connected 58 8 6 1 33 8 2
Customers
Wholesale
4 0 0 4 0 0 0
aggregators
Total Customer
Trading 150 45 38 5 52 8 2
Participants
TOTAL
266 121 74 8 53 8 2
PARTICIPANTS
Source: PEMC
Supply and Demand and Market Price Outcome
For the billing period November 2018 to April 2019, the average system-wide demand plus
reserve is at 10,360 MW. There was a significant decrease in demand as the country
experienced cooler temperature as well as the observance of holidays during the months of
November 2018 to January 2019. Thereafter, system demand increased beginning February with
10,013 MW, hitting an average of 11,205 MW in April due to hotter temperatures with the onset
of the summer months. Driven by the increase in demand, supply margin tightened to an
average of 1,159 MW in April from 1,644 MW in March.
In terms of the effective supply, the lowest level of supply for the period was recorded at 11,905
MW for the month of February 2019. The decrease in supply started in January when high
incident of both planned and unplanned plant outages of major coal and natural gas plants
As of April 2019
23
occurred. The decrease in supply and the increase in demand have tightened the supply margin
to an average of 1,159 MW in April 2019.
Following the tight supply margin in the April billing month, average market price increased by
43.9% at PhP7,315/MWh compared to PhP5,082/MWh in March, the highest in six months.
Lowest average market price was observed in December 2018 at PhP3,186/MWh.
The details of the demand and supply situation and the Average Market Prices are shown in the
table below.
Table 16. Demand and Supply Situation for November 2018 to April 2019
Demand + Reserve Effective Supply Supply Margin Average Market
Month
(MW) (MW) (MW) Price (Php/MWh)
November 2018 10,729 13,002 2,273 3,324
December 2018 10,591 13,065 2,474 3,186
January 2019 9,819 11,943 2,125 4,727
February 2019 10,013 11,905 1,891 4,058
March 2019 10,838 12,481 1,644 5,082
April 2019 11,205 12,363 1,159 7,315
Source: PEMC
Market Transactions
Figure 10 - Spot Market Transactions (System), February 2019

Customer Spot market
transactions (spot market
volume) were at 771.859
GWH which translates to
11.04% of the total energy
consumed in Luzon and
Visayas. The remaining
88.96% of the total volume
was transacted and settled
outside the market.
Luzon spot market

transactions were recorded at
663.369 GWH while for
Visayas spot transactions
were at 108.491 GWH. Luzon
generator payments amounted
to PHP5,887.32 Million while
Visayas generator payments
were recorded at
PHP2,422.96.
Spot market transactions

increased by 39.62% from
552.84 GWH in March to 771.86 GWH in April, while the generator payments increased by
123.38% from PHP 3,720.19 Million in March to PHP 8,310.28 Million in April.

As of April 2019
24
Table 17. Summary of Market Transactions for November 2018 to April 2019
Spot Market Visayas
Spot Market Spot Market Luzon
Transactions Generator
Transactions Transactions Generator
Month for Luzon & Payments
for Luzon for Visayas Payments
Visayas (Million
(GWH) (GWH) (Million Php)
(GWH) Php)
November 2018 1,143.693 976.135 167.558 1,894.54 665.29
December 2018 1,007.294 834.868 172.426 2,545.21 1,054.21
January 2019 900.831 720.019 180.812 3,214.83 1,577.89
February 2019 733.476 586.654 146.822 2,531.68 1,295.11
March 2019 552.842 443.034 109.808 2,175.68 1,544.51
April 2019 771.860 663.369 108.491 5,887.32 2,422.96
Source: PEMC
Capacity Profile
At the start of the April billing month, the WESM registered capacity increased at 19,062 MW.
Starting 13 April, this figure increased up to 19,876 by the end of the month due to the
registration of a 213-MW oil-based facility (units 1 to 4) of Therma Mobile, Inc.
Of the said total WESM registered capacity, only about 59 percent or an average of 11,752 MW
was offered in the market.
Figure 11- Capacity Profile (Ex-ante), April 2019
For the March billing month, the WESM registered capacity is at 18,727 MW. During this month,
two oil-based plants have deregistered, the 213-MW facility of Therma Mobile, Inc. and Navotas
DPP (2TMO_PB). However, the capacity increased following the registration of the 335-MW third
unit of the coal fired Masinloc facility.
In February billing month, the WESM registered capacity is at 18,940 MW with the entry of the
additional 37.5 MW facility of Victorias Milling Company, Inc. Of which, only about 61% or an
average of 11,491 MW was offered in the market.
No new registration of power plant was noted during the January billing month, thus, the total
registered capacity in the WESM is at 18,902 MW. Sixty-two (62%) or an average of 11,649 MW
of capacity was offered in the market, down from previous month’s 68% corresponding to an
average of 12,803 MW.
An increase of around 20MW to the registered capacity for December 2018 was observed
compared to the previous month which is attributable to the entry of San Carlos Biopower Inc. An
increase was also observed for this month’s offered, outage, and preferential capacities recorded

As of April 2019
25
at 13MW, 12MW, and 4MW, respectively. However, a decrease of 25MW was recorded for the
capacity not offered.
For the month of November, the WESM registered capacity is at 18,882 MW. Of this capacity,
about 68 percent was offered in the market.
Details of capacity profile for the report period are shown on Table 18.
Outage Capacity
For the month of April 2019, about 12% of the total registered capacity or an average of 2,446
MW were on outage. Bulk of which, at 45%, were related to forced outages, averaging at 1,078
MW. Planned outages, averaging at 977 MW, accounted for 41% of the total outage capacity.
On the other hand, based on type of resource, coal plants contributed 60% of the total outage
capacity this month.
Lower level of capacity on outage was recorded this month compared to the previous month.
Figure 12 - Outage Capacity by Outage Category, April 2019
For the billing month of March 2019, 2,663 MW were on outage. Bulk of which were related to
forced outages, averaging at 1,254 MW. Planned outages, averaging at 1,030 MW, accounted
for 39 percent of the total outage capacity. Based on type of resource, coal plants contributed 51
percent of the total outage capacity this month.
In February 2019, about 20 percent of the total registered capacity or an average of 3,756 MW
were on outage. Fifty-three (53) percent, were related to planned outages, averaging at 1,972
MW while forced outages, averaging at 1,407 MW, accounted for 37% of the total outage
capacity.
In January 2019, high level of outage capacity which averaged at 3,332 MW was experienced.
Bulk of the outages was attributed to high outage capacity of coal plants, averaging at 1,946
MW. Planned outages, comprising 48% percent of the total outage capacity, averaged at 1,586
MW were mainly attributed to the planned outages of the following major coal and natural gas
plants during the month: GN Power 1, Masinloc 1, SMC 3, Pagbilao 3, QPPL, PEDC 3, Kepco
Salcon 2, and Sta. Rita Units 1, 2 and 3. Meanwhile, the series of forced outages of major coal
plants GN Power 2, Masinloc 2, Calaca 2, SLTEC 1, SLPGC 1 & 2, QPPL, PALM 1 and natural

As of April 2019
26
gas plant Sta. Rita 1 and San Lorenzo contributed bulk of the forced outage capacity. It averaged
1,111 MW, comprising 34% of the total outage capacity.
In December 2018, the system-wide outage capacity has slightly increased by 0.6% compared
from the previous month.
System-wide outage capacity averaged at 1,914 MW for the November 2018 billing month, lower
by 22.1 percent from previous month’s 2,456 MW. This decrease was driven by the lower outage
capacity involving coal plants from 1,055 MW in October to 552 MW this month attributable to the
resumption of operations of Sual CFTPP unit 1 (647 MW) on 26 October from its planned outage
since 31 August and Malaya TPP unit 1 on 23 October from its forced outage since 3
September.
The details of the power plant outages and capacity profile in the WESM for November 2018 to
April 2019 is summarized in the following table.
Table 18. Summary of Capacity Profile for November 2018 to April 2019
Preferential and
Registered Offered Outage Capacity Must Run Unit
Non-Scheduled
Month Capacity Capacity Capacity Not Offered Capacity
Capacity
(MW) (MW / %) (MW / %) (MW / %) (MW / %)
(MW / %)
November 12,790 / 1,914 / 2,378 / 1,500 / 300 /
18,882
2018 68% 10% 13% 8% 1.6%
December 12,803 / 1,926 / 2,353 / 1,504 / 300 /
18,902
2018 68% 10% 12% 8% 1.6%
January 11,649 / 3,331 / 2,101 / 1,520 / 300 /
18,902
2019 62% 18% 11% 8% 2%
February 11,491 / 3,756 2,126 / 1,524 / 300 /
18,940
2019 61% 20% 11% 8% 0.05%
11,979 / 2,663 / 2,496 / 1,558 / 300 /
March 2019 19,062
63% 14% 13% 8% 1%
11,752 / 2,416 / 3,258 / 1,560 / 300 /
April 2019 19,876
59% 12% 16% 8% 2%
B. Updates on WESM Governance Activities
The DOE monitors the governance of the WESM through its representation from the different
technical committees which undertake regular meetings relative to WESM rules changes,
operational audit, conduct of technical evaluation and studies, investigation of breach of the
WESM Rules, and management of dispute resolution process. For the covered report period, the
following are the activities accomplished by each WESM Governance Committees:
1. Market Surveillance Committee (MSC)
The Market Surveillance Committee (MSC) primarily monitors and assesses the trading activity
in the WESM to ensure market efficiency and fair competition with the support of the Market
Assessment Group (MAG). It is currently composed of five (5) members, namely, Engr. Francis
V. Mapile, Dr. Peter Lee U, Atty. Doroteo B. Aguila, Ms. Eulinia M. Valdezco and Mr. Fernando
Martin Y. Roxas.
In line with its mandate, the MSC accomplished the following:
a. Assessment of Market Outcomes
Pursuant to the WESM Rules and the Market Surveillance, Compliance and Enforcement
Manual, the Market Assessment Report is prepared for the purpose of monitoring and

As of April 2019
27
assessing the efficiency and competitiveness of the WESM under different time-scales and
market conditions. The periodic Market Assessment Reports include an assessment of
market behavior, including the analysis of the market monitoring indices, which are based on
the market monitoring data that are collected primarily from the Market Operator (MO) and
the System Operator (SO).
The MSC assessed the results of the WESM operations for the period 26 October to 25 April
2019, as provided under the Monthly Market Assessment Highlights and Interesting Pricing
Events Reports.
In the month of April 2019, the MSC deliberated upon 59 interesting pricing events, and
observed that these were mainly driven by forced outages of major generating plants. In
particular, the high prices occurrence on April 10 – 15, 2019 is due to overlapping forced
outages of major plants. On the other hand, the April 22 – 24, 2019 incident with high outage
capacity was due to the 6.1 magnitude earthquake in Luzon that also resulted in high prices.
During the February billing month, a tight supply and demand was also observed in the
WESM. It was driven by an increase in demand at 10,013MW from previous month’s
9,819MW. This is coupled with the lower effective supply averaging at 11,905MW from
previous month’s 11,943MW, brought about by higher outage capacity. Notwithstanding,
market prices posted a lower average of PhP4,058/MWh compared to previous month’s
PhP4,727/MWh.
For the billing month of January 2019, it was observed that market price levels were
unusually high, averaging at PhP4,727/MWh, the highest for a January billing month since
2013, driven by the decreasing level of supply brought about by the outages of major coal
and natural gas plants.
In reference to the plants that have been on deactivated shutdown for prolonged periods (e.g.
more than 1 year), the MSC requested the MAG to recommend guidelines on possible
grounds for deregistration of the said plants, for the MSC’s consideration, and to submit
proposals to the WESM Rules and relevant Manuals, as deemed necessary. The MSC also
agreed to send a follow-up letter to one (1) generator-TP with geothermal plant, requesting
for updates on the deregistration and the maintenance activity to improve steam supply of its
two (2) units.
The Reports were submitted to the PEM Board, DOE and ERC and were also published in
the PEMC website.
b. Retail Market Assessment Report
The MSC assessed the performance of the retail market for the first quarter of billing year
2019, as provided under the Quarterly Retail Market Assessment Report covering the period
26 December 2018 to 25 March 2019 (MAG-RMAR-2019-01).
Likewise, during the report period, the MSC assessed the performance of the retail market for
billing year 2018, and approved the Annual Retail Market Assessment Report covering the
period 26 December 2017 to 25 December 2018 (MAG-ARMAR-2018), as submitted by the
MAG on 12 April 2019. As set forth in the Catalogue of Retail Market Monitoring Data and
Indices, the Retail Market Assessment Report discusses the results of monitoring indices and
provides indications on how the retail market performed during the period in review and how
it fared with the previous quarter’s performance.
The MSC presented the result of its monitoring and assessment of the retail market for billing
year 2018 during the PEMC Board Meeting held on 24 April 2019.

As of April 2019
28
c. Report on Interesting Pricing Events
Table 17 shows the interesting pricing events that were observed and deliberated upon by
the MSC for the period September 2018 to February 2019.
For September 2018, two (2) interesting pricing events were observed. These events were
brought about by the forced outage of one (1) major coal plant on 08 September 2018
(0712H) combined with higher demand during afternoon peak at 1400H (10,462 MW) and
evening peak at 1900H (10,221 MW). Simulation results show that the prices for 1400H and
1900H would have been lower had the said major coal plant remained online.
For the billing month of October 2018, two (2) interesting pricing events were observed on 17
October which were mainly driven by the forced outage of a major coal plant combined with
the higher demand during the evening peak. Likewise, the forced outage of a large
generating plant on 24 October 2018 at 2159H drove the interesting pricing events on 25
October 2018.
In November 2018, five (5) interesting events were observed. The interesting pricing event on
05 November was driven by the higher demand during the evening peak coupled with the
ramp rate-limited capacity of two (2) large generating plants. On 06 and 07 November 2018,
the interesting pricing events were mainly driven by the forced outages of another two (2)
large generating plants.
For the December 2018 billing month, two (2) interesting pricing events were observed. As
reviewed and deliberated upon by the MSC, these interesting pricing events were mainly
driven by the forced outage of a major coal plant on 10 December 2018 at 0100H, combined
with the limited offer submission of another major coal plant.
For the January 2019 billing month, 32 interesting pricing events were observed and
deliberated upon by the MSC. It was observed that 12 of these events posted with negative
prices during the off-peak hours, driven by the seasonal low demand during the holidays. The
remaining 20 events with high prices were generally driven by forced outages combined with
high peak demand.
Lastly, for the February 2019 billing month, the MSC observed that the interesting pricing
events were mainly due to the forced outage of a major coal plant simultaneous with the
planned outages of hydro plants San Roque 1 (150MW), Kalayaan 3 (180MW) and Kalayaan
4 (180MW).
Table 19. Interesting Pricing Events for September 2018 to February 2019
Peak or Off- Supply Margin Market Price
Date Hour
Peak (MW) (PhP/MWh)
Sep. 08 1400H 461 20,457 18,146
Sep. 08 1900H 405 21,453 18,146
1400H 241 31,707 20,733
Oct. 17
1800H 940 21,917 15,201
1500H 441 31,600 31,600
Oct. 25 1600H 658 22,056 22,056
1800H 603 31,635 31,635
Nov. 05 1800H 977 15,433 15,201
2000H 381 20,716 18,146
Nov. 06
2100H 311 31,664 18,146
1600H 390 31,652 18,146
Nov. 07
1800H 385 32,077 18,146
1600H 269 22,342 18,146
Dec. 10
1800H 89 32,827 20,733
Jan. 10 0400H off-peak 5,136 −10,015
As of April 2019
29
Peak or Off- Supply Margin Market Price
Date Hour
Peak (MW) (PhP/MWh)
0500H off-peak 5,092 −10,469
0600H off-peak 5,200 −10,466
0700H off-peak 5,674 −10,364
0800H off-peak 5,690 −10,261
0900H off-peak 5,537 −10,126
1000H off-peak 5,119 −10,092
1100H off-peak 5,054 −9,709
1100H peak 716 20,282
Jan. 8
1800H peak 613 24,021
Jan. 11 1800H peak 793 17,052
1400H peak 91 30,157
1600H peak 223 25,273
1800H peak 4 32,468
Jan. 12
1900H peak 4 32,576
2000H peak 83 32,532
2100H peak 318 32,236
Jan. 16 1800H peak 385 21,415
Jan. 17 1800H peak 683 24,646
1800H peak 458 25,040
1900H peak 467 23,852
Jan. 19 2000H peak 361 24,718
2100H peak 595 25,383
2200H off-peak 450 23,339
1900H peak 346 25,032
Jan. 20
2000H peak 427 23,919
Jan. 21 1800H peak 205 32,234
Jan. 24 1800H peak 849 15,338
1600H peak 204 31,394
Feb. 4 1700H peak 242 23,891
1800H peak 305 24,488
d. Review of Compliance Monitoring and Assessment Reports
Compliances of Generator-Trading Participants (TP) with the Real Time Dispatch (RTD)
schedule and the Must Offer Rule (MOR) for the billing month of September to December
2018 were deliberated upon by the MSC, as contained in the Compliance Monitoring and
Assessment Report (CMAR) prepared by the Enforcement and Compliance Office (ECO).
The report is a result of the daily compliance monitoring activities by the ECO after assessing
the generator-TPs’ compliance with the RTD schedule and MOR. The ECO’s monitoring
activity was carried out by issuing Daily Compliance Notices to the generator-TPs that were
initially flagged for possible non-compliance. Monitoring activities also cover validation and
assessment of generator-TPs’ explanations in the Significant Event Repot Form and
Dispatch Discrepancy Report Form, supporting documents, and other market data or reports
from the MO and SO.
Table 20. No. of Issued RFIs from September 2018 to March 2019
Following the review of the Billing Month No. of RFIs Issued
CMAR, the MSC approved the September 2018 37
issuance of requests for October 2018 30
investigations (RFI) for November 2018 27
possible non-compliance with December 2018 29
the RTD schedule and the January 2019 31
MOR. The number of RFIs February 2019 18
issued per month is listed in
March 2019 11
Table 20. The RFIs were
subsequently submitted to the PEM Board.
As of April 2019
30
e. Assessment of Over-Riding Constraints
The summary of Over-Riding Constraints events reviewed by the MSC is listed in the
following table.
Table 21. Over-riding Constraints from October 2018 to April 2019

Total Number of Involved Luzon Involved Visayas
Billing Month Factor
over-riding events Generating Plants Generating Plants
Commercial
October 2018 3,845 25 8
Testing
Commercial
November 2018 4,183 27 10
Testing
Commercial
December 2018 3,791 40 13
Testing
Commercial
January 2019 4,363 44 19
Testing; MRU
Commercial
February 2019 3,964 28 17
Testing
Commercial
March 2019 5,018 25 9
Testing
Commercial
April 2019 4,906 36 14
Testing
It was observed that over-riding constraint events were related to the conduct of commercial
tests, the most common of which was testing and commissioning tests. Thus, the MSC
regularly sends letters of inquiry requesting explanations for the prolonged conduct of testing
and commissioning to generator-TPs that exceeded the allowable two (2)-month period for the
conduct of testing and commissioning as provided under the ERC Resolution No.16, Series of
2014.
For the April 2019 billing month, a total of 4,906 over-riding events (2.2% lower than previous
month’s 5,018 events) were imposed on 36 Luzon generators and 14 Visayas generators by
the NGCP-SO. This followed the decrease in the number of non-security limit events in April,
which were mostly related to commercial testing, from 5,017 events in March to 4,452 events.
The decrease in the over-riding events in February 2019 was attributable to the decrease in
security limit events, which were mostly related to MRU events, from previous month’s 285
events to current month’s 21 events. Also, non-security limit events had lower occurrences this
month at 3,943 events from 4,078 events in January.
The increase in the over-riding events in January 2019 was attributable to commercial testing
from 3,593 events in December 2018 to 3,914 events. Also, 274 events were due to MRU
events. No MRU events were recorded in the previous month.
The over-riding events for December 2018 were all attributable to non-security limit, majority of
which were related to the conduct of commercial tests (94.8% or 3,593 events). Similar to
previous months, the conduct of commissioning tests remains to be the most common
commercial test conducted (3,593 events), involving 8 plants with a combined total registered
capacity of 423.7MW.
The over-riding events for November 2018 were all attributable to non-security limits, majority
of which were related to the conduct of commercial tests (97.5% or 4,078 events). Similar to
previous months, the conduct of testing and commissioning remains to be the most common
commercial test conducted (3,873 events), involving 9 plants with a combined total registered
capacity of 425.5MW.

As of April 2019
31
On 10 December 2018, the MSC sent a letter to the Technical Committee requesting for a
study or review and recommendations on the appropriate period for the conduct of testing and
commissioning, taking into consideration the complexity and the type of facility being tested.
On the other hand, the MSC presented the highlights of the MSC’s monitoring on over-riding
constraints for Q3 2018 during the PEM Board meeting held on 12 December 2018, for
information.
f. Review of the System-Wide Market Intervention Events
The MSC approved the Review Reports on Market Operator (MO)-initiated Market intervention
(MI) events for the January and February 2019 billing months, as well as the Report on
Historical MI events from December 2006 to December 2018.
During the report period, there are three (3) instances of system-wide market intervention
events.
For the month of January 2019, market-intervention events were observed on 24 January
(0200H) and 29 January 2019 (1000H) while on February 2019, market intervention event was
declared by the Market Operator in Luzon on 09 February 2019 at 1800H.
The MSC’s review of the facts surrounding the events showed that the market intervention
was due to un-implementable RTD schedule, resulting from the inappropriate input to the Load
Predictor (LDP).
The Reports were submitted to the PEM Board, the DOE and the ERC on 24 April 2019.
g. Review of ECO Investigation Cases
Investigation Reports prepared by the ECO pursuant to an investigation of an alleged breach

of the WESM Rules are submitted for the MSC for review with respect to: (a) compliance by
the ECO with the procedure, and (b) validity and completeness of data and documents upon
which the factual findings are based.
During the billing month of April 2019, the MSC approved the issuance of 15 requests for
investigations (RFI) for possible non-compliance with the RTD schedule, the MOR and the
NOM.
During the report period, the MSC approved the issuance of a total of 150 requests for
investigations (RFI) for possible non-compliance with the RTD schedule, the MOR and the
NOM.
On 18 December 2018, the MSC sent a letter to NGCP-SO, relaying the ECO findings in the
ECO Investigation Reports that the MSC presented to the PEM Board on 26 September 2018,
regarding the 59th snapshot data validation issues. However, said validation issues resulted to
a finding with no breach for said generator-TPs in the said trading intervals. It was noted that
the data were sourced from the NGCP-SO’s Energy Management System (EMS), the MSC
requested that the NGCP-SO adequately address the issues, and accordingly provide updates
to the MSC and the ECO on the steps taken relative to the request.
h. Deliberation on Motions for Reconsideration
The MSC deliberated upon the submitted Motions for Reconsideration and additional evidence
on 2014 ECO investigation cases. Pursuant thereto, the MSC convened representatives from
two (2) generator-trading participants to separate case conferences to discuss their respective
cases.
As of April 2019
32
After due deliberation, the MSC submitted its recommendations for the consideration of the
PEMC Board.
i. Review of Proposed Guidelines on Offer for Settlement
The MSC continued with its review of the proposed Guidelines on Offer for Settlement. After
due deliberation, the MSC approved the revised proposed Guidelines and the template Offer
for Settlement form that was submitted by the ECO.
The revised proposed Guidelines was presented during the WESM Compliance Officer (WCO)
Summit event held on 24 January 2019.
The MSC continued with its review of the proposed guidelines on Offer for Settlement that was
drafted by the ECO, and thereafter provided its inputs and comments on the same. The MSC
also noted that the proposed guidelines will be part of the breakout session during the WESM
Compliance Officer (WCO) Summit Event scheduled on 24 January 2019.
j. Meeting with the IEMOP regarding Financial Transmission Rights (FTRs) in the WESM
The MSC held a meeting with representatives from the IEMOP on 14 March 2019 to discuss
the financial transmission rights (FTRs) in the WESM. The MSC had taken note that FTRs are
financial instruments aimed to mitigate the congestion cost. Nevertheless, the MSC agreed
that other options may also be explored in addressing the market issues brought about by
congestion.
k. Meeting with the IEMOP regarding Line Rental (LR)
The MSC held a meeting with representatives from the IEMOP on 13 February 2019 to
discuss the issues on line rental and cross-grid transactions in the market.
The MSC agreed that the issue on line rental does not only pertain to the correctness of LR
calculations, but also on the need to call the attention of the NGCP-SO to improve/upgrade
transmission facilities in order to minimize congestion. The MSC agreed to look at other
options in addressing congestion, including the ongoing Market Operator study on the
Financial Transmission Rights (FTRs) in the WESM.
l. Presentation of the Market Assessment Annual Trends covering 2014 to 2018
The MSC participated in the PEMC Board Meeting in February 2019, with a presentation on
the five-year assessment of annual market trends covering billing years 2014 to 2018, which
includes the assessment of capacity profile, supply and demand, and market price, and
market concentration.
m. Participation in Public Consultations
The MSC participated in the Public Consultations conducted by the DOE on the Proposed
Amendments to the WESM Rules and Market Manuals Related to Market Surveillance,
Enforcement and Compliance. The activity was conducted to seek inputs and
recommendation from the public on the proposed amendments.
The MSC presented the highlights of the proposed Penalty Manual in the Luzon and Visayas
Public Consultations, held on 17 January in Pasig City, and on 24 January in Cebu City,
respectively.

As of April 2019
33
2. Technical Committee (TC)
The Technical Committee is tasked to monitor and review technical matters under the WESM
Rules in relation to the operation of the spot market. It is composed of four (4) members, namely,
Prof. Jordan Rel C. Orillaza as the TC Chairperson and an Independent Member; Engr.
Fortunato C. Leynes as an Independent Member; Engr. Jaime V. Mendoza as the Distribution
Management Committee (DMC) Representative; and Mr. Ermelindo R. Bugaoisan, Jr. as the
System Operator (SO) Representative.
During the covered period, the TC accomplished the following:
a. TC comments to the draft Market Readiness Assessment Criteria
The TC reviewed the draft market readiness assessment criteria for the implementation of
the enhanced WESM design and operations in Luzon and Visayas and the WESM in
Mindanao prepared by Sapere for the PEM Audit Committee (PAC). The comments were
submitted to the PAC on 23 April 2019 for their consideration.
b. Roadmap for the integration of Variable Renewable Energy (VRE) and other new
technologies into the Grid
The TC initiated its discussion on the formulation of a roadmap for the integration of VRE and
other new technologies into the Grid, which is one of the key strategies identified by PEMC to
achieve its corporate mission and vision. The TC targeted to finalize the roadmap by June
2019.
c. TC Comments to the proposed amendments to the WESM Rules and Manuals as initiated
by IEMOP
The TC reviewed and submitted its inputs and comments to the RCC on the following
proposed amendments to the WESM Rules and Manuals, as initiated by the IEMOP:
• Proposed Amendments to the WESM Manual on Registration, Suspension and De-

Registration Criteria and Procedures to Include Additional Modelling Requirements
and Procedures;
Registration Criteria and Procedures to Harmonize with WESM Rules Changes;
Registration Criteria and Procedures to Clarify Basis for Registered Capacities of
Generating Units in the WESM;
• Proposed Amendments to the WESM Rules and Manual on Metering Standards and
Procedures to Clarify the Entity Monitoring Wholesale Metering Services Provider
Performance;
• Retail Manuals and WESM Manuals to Reduce Barriers to Entry and Participation in
Retail Competition;
• Guidelines on Significant Variations In and Between Trading Intervals to Refine
Publication Procedures; and
• Provisions related to Audit and Performance Monitoring under the WESM Rules,
Retail Rules, PEM Audit Manual, and Guidelines Governing the Constitution of PEM
Board Committees to the Rules Change Committee.
d. Request by MSC for a Study on the Period of the Conduct of Testing and Commissioning
per Type of Facility

As of April 2019
34
The TC conducted a research on international rules and standards relative to the MSC’s
subject request. On 7 February 2019, after careful review of all available and relevant
information, the TC transmitted to the MSC its response and recommendations, as follows:
• The appropriate period for the testing and commissioning per type of power plant
cannot be prescribed at this stage since there is no clear rule or internationally
accepted standard on it;
• Proponents to the ERC for Power Plant Testing and Commissioning should submit
their detailed plans under sworn statement; and
• The testing and commissioning plans should include information such as: (i) the type
of tests to be performed, (ii) the conditions for testing (including input parameters
such as wind speed and water flow), (iii) the parameters to be observed during
testing, the standards to be met, and more importantly the period for the conduct for
each component of the tests.
e. NGCP Concerns regarding DOE-approved Amendments to the WESM Manual on

Metering Standards and Procedures
The TC finalized its response to NGCP’s concerns regarding the WESM Metering Manual
Issue 12.0, as endorsed by the RCC.
f. Review of the Resiliency Standards, Business Continuity Plans, Contingency Plans and
best practices in other jurisdictions
The TC supports DOE’s effort to rally the industry to mitigate potential impacts of
disasters to the power industry. In this regard, the TC discussed its plans to conduct a
Review of the Resiliency Standards, Business Continuity Plans, Contingency Plans and
best practices in other jurisdictions as part of its 2018 Work Plan.
g. Three-Year TC Work Plan
The TC identified its specific contributions to PEMC’s corporate strategies for 2019-2021.
The following activities were identified to be led by the TC:
• Review and propose recommendations, as necessary, to the policies on embedded

facilities and metering requirements in relation to the implementation of the
enhanced WESM in the Mindanao region;
• Formulate a Variable RE Roadmap and conduct related studies;
• Study the proposed design for demand-side participation; and
• Formulate a glossary for the WESM terminologies aligned with relevant documents
(i.e. Philippine Distribution Code and Philippine Grid Code)
The accomplished TC work plan was submitted to PEMC on 26 February 2019, for
consolidation with the work plans of other WESM Governance Committees.
h. TC Internal Rules
The TC reviewed its Internal Rules (a) to update its provisions in light of the changes in
the organizational structure of PEMC, wherein the TC support function was transferred
from MAG to CPC, and (b) to update the schedule of regular meetings.
3. Rules Change Committee (RCC)
The Rules Change Committee (RCC) is tasked to provide assistance to the PEM Board and
the DOE in the formulation and amendment of the Market Rules and the Market Manuals.

As of April 2019
35
The formulation and amendment of the Market Rules and Manuals is aimed at enhancing
market design, as well as refining market processes and operations appropriate for the
current environment.
The RCC is composed of four (4) independent members and representatives from the
following sectors: two (4) from the Generation Sector; three (4) from the Distribution Sector,
one (1) from the Supply Sector, and one (1) from the Transmission Sector/System Operator.
Likewise, the RCC has one (1) representative from the Market Operator. The RCC is chaired
by Independent Member, Atty. Maila Lourdes de Castro.
The RCC undertook the following activity during the covered period:
a) Deliberations and Approval of Proposed Amendments for Endorsement to PEM Board
During the report period, the RCC deliberated upon the following proposals including the
comments received from the relevant parties, and approved the same, as amended:
• Proposed Amendments to the Market Rules and Market Manuals to Reduce Barriers to
Entry and Participation in Retail Competition;
• Proposed Amendments to the WESM Rules and Manual on Guidelines on Significant
Variations In and Between Trading Intervals to Refine Publication Procedures;
• Proposed Amendments to Provisions Related to Audit and Performance Monitoring
(except for provisions related to System Operations review)
• Proposed Urgent Amendments to the WESM Rules and Market Manual on Billing and
Settlement for the Enhancements to the Determination of Initial Prudential
Requirements; and
• Proposed Urgent Amendments to the WESM Rules and the proposed New Market
Manual on Contingency Plan for Prolonged Market Intervention due to Market Systems
Failure.
The RCC-approved proposals were endorsed to the PEM Board for approval. However,
for the third item above, the RCC decided to defer the System Operations review to the
PEM Board for its direction.
b) Approval on the Publication of Rules Change Proposals
The RCC approved the publication in the market information website of the following
proposed amendments to solicit comments of participants and interested parties:
• Proposed Amendments to the WESM Manual on Registration, Suspension, and De-

Registration Criteria and Procedures to: (a) Include Additional Modelling Requirements
and Procedures; (b) Harmonize with WESM Rules Changes; and (c) Clarify Basis for
Registered Capacities for Generating Units in the WESM; and
• Proposed Amendments to the WESM Rules and Manual on Metering Standards and
Procedures to Clarify the Entity Monitoring Wholesale Metering Services Provider
Performance.
The proposals mentioned above were published on 26 February 2019 and are set for
RCC deliberations after the thirty-day publication period which shall end on 10 April 2019.
c) Discussion Paper on DOE’s Concerns regarding Cross-grid Power Supply Agreements
During its 4th Meeting on 26 September 2018, the PEM Board agreed to endorse to the
DOE the above-captioned discussion paper, as submitted by the RCC.

As of April 2019
36
The PEM Board found the RCC’s recommendations acceptable, particularly regarding the
need to upgrade the transmission network to improve line constraints and congestions,
and also recognized the significant role of the ERC in this matter aside from the NGCP.
d) Formulation of the 2019 RCC Work Plan
The RCC discussed and approved its Work Plan for 2019, which was aligned with the
PEMC’s Corporate Strategic Work Plan.
e) Submission of RCC Semestral Report (July to December 2018)
The RCC submitted to the PEM Board its Semestral Report covering the period July to
December 2018 on 31 January 2019. The same was published in the market information
website.
f) DOE Public Consultation Events for Proposed Amendments
DOE held several Public Consultation events for the Proposed Amendments to the
WESM Rules and Various Manuals regarding Market Surveillance, Enforcement and
Compliance. These were previously deliberated upon and endorsed by the RCC and
approved by the PEM Board. The pubcon events were held on January 15 in General
Santos City, January 17 in Pasig City and January 24 in Cebu City.
4. Dispute Resolution Administrator (DRA)
The Dispute Resolution Administrator (DRA) is tasked to facilitate the resolution of disputes
between or among the parties in accordance with the WESM dispute resolution process. The
WESM alternative dispute resolution is a process which follows the stages of negotiation,
mediation and arbitration.
Atty. Jesusito G. Morallos, Senior Partner from Follosco Morallos and Herce Law Offices was
appointed by the PEM Board on 01 September 2011 as the Dispute Resolution Administrator
for the WESM.
During the covered period, the DRA conducted activities required to facilitate the following
Requests for Arbitration, as filed by SPC Power Island Corporation:
DRA Case No. WESM-ARB-18-01 For: Claims for RTD Underpayment; and
DRA Case No. WESM-ARB-18-02 For: Claims for Settlement as Must-Run Unit
The following activities in relation to these Cases were undertaken:
Table 22. Arbitral Tribunal Recent Activities

Date Activity
22 October 2018 Receipt of Requests for Arbitration
Endorsement of the Cases to the Arbitral Tribunal.
The following were designated to the Tribunal:

18 January 2019 • Atty. Teodoro Y. Kalaw IV- Chairman and 1st Arbitrator
• Atty. Eduardo R. Ceniza- 2nd Arbitrator
• Atty. Danryl Jared P. Amoroso- 3rd Arbitrator
Meeting with the Arbitral Tribunal to discuss the pending issues of

the cases (e.g. electronic submission and retrieval of case
25 January 2019
documents and other market participants that may be affected by
the disputes).
As of April 2019
37
Date Activity
Case Management Conference. The Terms of Reference were
11 February 2019
signed by the parties and the Tribunal.
15 March 2019 Simultaneous submission of evidence
21 March 2019 Simultaneous submission rebuttal statements

Evidentiary Hearing attended by the Parties and their respective
25 March 2019
Legal Counsels.
12 April 2019, 1:30 PM Simultaneous marking of exhibits attended by the Parties
Transmittal of the Transcript of Stenographic Notes of the
Evidentiary Hearing held on 25 March 2019 for the DRA Case Nos.
16 April 2019
WESM-ARB-18-01 & 18-02 attended by the Parties and their
respective Legal Counsels
26 April 2019, 4:00 PM Simultaneous submission of Final Memorandum
5. PEM Audit Committee (PAC)
The PEM Audit Committee (PAC) is tasked to conduct regular operational audits of the
market operator, settlement systems, and procedures relevant to the spot market and to test
and/or check any new items or versions of software provided by the Market Operator for use
by WESM members. It is also mandated to conduct a review of metering installations and
arrangements as well as any special audit as directed or required by the PEM Board.
The PAC is currently composed of three (3) members, namely, Prof. Felixberto U. Bustos Jr.,
the PAC Chairperson, Mr. Christian M. Orias, and Mr. Eduardo Alejandro O. Santos.
During the covered period, the PAC has undertaken the following activities:
a. Software certification audit of the New Market Management System (NMMS)
PAC is continuously overseeing the conduct of the NMMS software certification audit.
Five (5) out of eight (8) NMMS modules have been certified by the independent auditor,
Intelligent Energy Systems (IES), as follows:
• Market Dispatch Optimisation Model (MDOM);

• Market Projections;
• Market Participant Interface (MPI);
• Post Market Run Calculations (PMRC); and
• Market Operations Archiving Repository (MOAR).
The remaining modules (Compliance Monitoring, Load Forecasting, and Financial

Transmission Rights) are expected to be completed by June 2019.
The PAC likewise have overseen the submission of IES’ Judicial Affidavit, Audit Reports,
and Software Certification on the above-mentioned five (5) modules that have been
audited, and appearance before the ERC as PEMC’s expert witness during the hearings
on the proposed Price Determination Methodology (PDM) on 27 to 29 March 2019.
b. Conduct of Market Readiness Assessment (MRA) for the Implementation of the

Enhanced WESM Design and Operations
The PAC has overseen the Market Readiness Assessment (MRA), which aims to provide
the DOE with recommendations to ensure the effective transition and implementation of
the enhanced WESM design and operations in Luzon and Visayas and WESM in
Mindanao.

As of April 2019
38
Below are the activities undertaken within the covered period:
Table 23. PAC-Participated MRA Recent Activities

Date Activity
29 January 2019 –
PEMC/IEMOP review of Draft Terms of Reference (TOR)
13 February 2019
13 February 2019 PAC and DOE review of Draft TOR
1. PEMC President creation of Market Readiness Assessment
Technical Working Group (TWG) to conduct the competitive
14 February 2019 bidding for the engagement of a Third-party Expert
2. TWG development of the selection process, criteria, and
timeline
PAC review and approval of the TOR and the TWG’s selection process,
15 February 2019
criteria, and timeline of activities
TWG issuance of Request for Proposals (RFP) to the following short
listed firms:
• Deloitte
• Frontier Economics
18 February 2019
• Intelligent Energy Systems
• Robinson Bowmaker Paul
• RSM Bird Cameron
• Sapere Research Group Limited
21 February 2019 – TWG issuance of Bid Bulletins
28 February 2019 • Four (4) bid bulletins were issued to respond to requests for
clarification and extension of submission by bidders
• The bid bulletins also addressed the changes in the schedule of
procurement activities
11 March 2019 Opening and Evaluation of Technical Proposal
Opening and Evaluation of Financial Proposal and Negotiation with
Sapere Research Group Limited
12 and 13 March
• Having passed the Technical Evaluation, the financial proposal of
2019
Sapere was opened and evaluated. Thereafter, the TWG
proceeded with negotiation with Sapere.
13 March 2019 Contract Signing with Sapere Research Group Limited
19 March 2019 Issuance of Notice to Proceed / Notice of Award
21 to 31 March 2019 Review of Sapere’s Inception Report
Initial Stakeholder Consultation Meetings for the Market Readiness
08-12 April 2019
Assessment (MRA) Activity
C. Market Development Updates
Establishment of the Wholesale Electricity Spot Market (WESM) in Mindanao
As part of its continuing initiative to establish WESM in Mindanao, the DOE conducted three (3)
Readiness Assessment meetings to evaluate readiness for WESM Mindanao commercial
operations based on updates presented by various energy agencies tasked to undertake
preparatory activities.
Based on the latest report from IEMOP, as of April 2019, 81 out of 86 or 94% expected WESM
Mindanao participants have started the registration process. From these 81 WESM Mindanao
participants, only two (2) have completed their registration requirements for WESM membership.
However, 91% or 77 out of 86 Trading Participants have already attended trainings.
Meanwhile, PEMC recently commissioned the Sapere Research Group, an independent entity
that shall assess the readiness of all stakeholders in implementing the WESM in Mindanao. On
11-12 April 2019, Sapere, along with PEMC and IEMOP, met with the Mindanao stakeholders,
particularly NGCP (as System Operator and Metering Service Provider), Generation Companies,
As of April 2019
39
Private Distribution Utilities, Electric Cooperatives, Directly Connected Customers, and the
Mindanao Development Authority to discuss the market readiness assessment (MRA) activities
that shall take place during the parallel operations program. The MRA activities commenced on
26 April 2019. The final market assessment results are targeted to be submitted to the DOE on
25 July 2019 for Luzon and Visayas and 25 August for Mindanao.
With regard to the approval of the price determination methodology (PDM) for the enhanced
WESM design, the next evidentiary hearing of the ERC is scheduled on June 2019 to discuss the
audit results of the remaining components of the New Market Management System (NMMS).
Following these developments, the DOE will continuously conduct assessment/coordination

meetings, Information, Education and Communication (IEC) campaigns, and site visits, if
necessary, to ensure stakeholders’ readiness and ensure smooth transition of Mindanao under
the WESM regime.
D. Status of Pending ERC Regulatory Filings
Approval of the Level of the Market Fees for the WESM (CY 2019)
On 30 October 2018, the Independent Electricity Market Operator of the Philippines (IEMOP)
filed its Application for the Approval of Market Fees for the Philippine WESM for the budgetary
requirements for both PEMC and IEMOP and sought approval of a fixed market fee charge.
On 27 December 2018, IEMOP received copies of the Order and Notice of Public Hearing, both
dated 10 December 2018, finding the Application sufficient in form and substance and setting the
same for hearing on its compliance with the jurisdictional requirements and expository
presentations in Luzon and Visayas, as well as for pre-trial conference and presentation of
evidence, on various dates in 2019.
During the hearing on 12 February 2019, the Presiding Officer directed the applicant and the
intervenors to file their respective position papers on the issue of IEMOP’s standing as the
proper party to file the application for market fees with the ERC. In the meantime, the
succeeding hearings set on 28 February 2019 and 28 March 2019 are put on hold until the issue
is resolved.
However, on 01 March 2019, IEMOP filed its Motion to Withdraw its Application dated 26
October 2018 and manifested that it is no longer filing a position paper in view of such
withdrawal.
All other ERC regulatory filings on the approval of market fees have no changes in their status.
Table 24. Market Fees Application from 2006 to 2019

Year ERC Case Requested Approved Date Remarks
2006 2005-048 RC 549,555,829.00 433,624,276.00 22-Jun-06 None
2007 2007-124 RC 624,454,000.00 433,624,276.00 30-Jan-08 No approval was made
thus previous year's was
extended
2008 2007-124 RC 548,942,005.91 26-Jun-08 Application for CY2007
used for CY2008
2009 2008-050 RC Revised the fixed market
2010-038 RC fee rate from
0.155PhP/kWh to 0.169
PhP/kWh for MMS
PEMC was directed to
refund the amount of
268,200,702.80 on 7
March 2011

As of April 2019
40
Year ERC Case Requested Approved Date Remarks
2010 588,510,675.00 None
990,946,000.00
2010-079 RC 06-Jun-11
2011 None
897,445,000.00 661,260,413.00
2012 2011-111 RC 03-Dec-12 None
840,759,416.00 737,887,097.00
2013 2012-084 RC 08-Jul-13 None
798,880,000.00 670,561,722.00
2014 2013-137 RC 15-Oct-14 None
814,529,000.00 702,984,728.00
2015 2014-092 RC 2/9/2016 Authorized PEMC to
896,410,000.00 2/19/2016 continue imposing the
approved MFs for the
preceeding year
A protective order was

issued on 19 Feb 2016
of same ERC Case No.,
granting confidential
treatment
2016 2015-160 RC None
1,066,837,000.00
2017 None
1,010,942,000.00
2018 2017-095 RC 822,208,000.00 On 01 March 2019,
IEMOP filed its Motion to
Withdraw its Motion for
Substitution dated 11
October 2018.
2019 2018-105 RC 0.0135/kwH None
MMS Loan Repayment
On 18 January 2019, IEMOP filed a Motion for Clarification with the ERC seeking clarification on
the authority of IEMOP to comply with the demand for payment from PSALM and/or a
confirmation that IEMOP’s remittance of the total amount of P857.14M to PSALM constitutes a
full payment of the MMS Project advances.
E. Establishment of Independent Market Operator (IMO)
Due to IEMOP’s withdrawal of its application for Approval of Maket Fees for Calenar Year 2018,
as discussed in the preceding portion, the ERC in its letter to the DOE clarified the intent of the
latter in issuing DC2018-01-0002 entitled “Adopting Policies for the Effective and Efficient
Transition to the Independent Market Operator of the Wholesale Electricity Spot Market
(WESM)”, especially the creation of IEMOP as the new Market Operator.
On 08 March 2019, the DOE issued the Department Order No. DO2019-03-0009 entitled
“Creating a Special Task Force to Assess the Performance of the Wholesale Electricity Spot
Market (WESM) under the Governance of PEMC and Operations of the IMO”. This issuance
identified the creation of Special Task Force (STF) to conduct an assessment on the
performance of WESM under the current structure of its operations. Likewise, among the
responsibilities of the STF are the following: Assessment of PEMC as the governance arm of the
WESM; Assessment of the performance of IEMOP as the IMO; Over-all performance of the
WESM; and other functions necessary to effectively carry out the mandates of the task-force.
Accordingly, the STF shall be the one to provide the necessary clarification on ERC’s concerns
after submission of its report within 45 days from its creation.

As of April 2019
41
F. WESM Design Enhancement
The Department continued to monitor the completion of the software certification audit of the
NMMS and has undertaken various activities to assist the MO in the successful deployment of its
NMMS and CRSS. It should be noted that NMMS’ operation is dependent on the approval of the
amended WESM price determination methodology (PDM) which reflects the enhancements in
WESM design made by the ERC.
To date, the IEMOP in collaboration with the PEMC, DOE and ERC, is finalizing the independent
certification audit of the NMMS and CRSS to ensure that the said new developed softwares and
system are in accordance with the market rules.
G. Retail Competition and Open Access (RCOA)
The Government, despite the challenges restraining the full implementation of RCOA,
continuously exerts its effort in strenghtening competition in the retail market and empower the
contestable customers.
As of April 2019, the total RCOA prospective participants climbed to 2,033 from only 961 in June
2013 or an increase of 112%. The increase was mainly attributable to the entry of more
Contestable Customers, including those with average demand of 750 kW, from 892 in June 2013
to 1,884 in April 2019. The total Contestable Customer comprised 93% of the total RCOA
Participants while the number of Suppliers made up 3%. Within the period, total prospective
CCs were observed to have a 112% increase while Suppliers increased by 72%.
Actual participation in the RCOA, i.e. registration in the Central Registration Body (CRB),
improved by 393% from 275 registered participants in June 2013 to 1,356 as of April 2019. The
1,356 registered participants are comprised of 92% Contestable Customers, 3% Suppliers, 2%
SOLR and about 4% RMSP.
Table 26. Summary of RCOA Registration

Prospective Registered
Membership Category Jun April Jun April
Increase Increase
2013 2019 2013 2019
D ≥ 1MW 892 1,356 52% 239 999 318%
Contestable
750kW ≥ D > 1MW 0 528 0 241
Customers
Total 892 1,884 111% 239 1,240 419%
RES 19 30 58% 15 30 100%
Suppliers LRES 13 25 92% 3 14 367%
Total 32 55 72% 18 44 144%
SOLR 9 46 411% 0 24
RMSP 28 48 71% 18 48 167%
Grand Total 961 2,033 112% 275 1,356 393%
Source: ERC, PEMC
Figure below illustrates that the majority of the CCs are situated within the franchise area of
MERALCO at 77%. 6% is in the franchise area of VECO, while NGCP has accounted for the 2% of
the Directly Connected Contestable Customers (DCCC). The Clark Electric Distribution
Corporation (CEDC) and Subic Enerzone (SEZ) both have 2% each, and the remaining 11% were
distributed among the 41 other franchises.

As of April 2019
42
Figure 13 - Registered Contestable Customers per Franchise Area as of April 2019
Of the 44 registered Suppliers, 29 are currently transacting with CCs, which include the four (4)
biggest group of companies affiliated with more than one RES or Local RES. This is 66% of the
total registered suppliers.
Table 27. List of Suppliers with Contestable Customers

Aboitiz Group
Aboitiz Energy Soutions, Inc.
AdventEnergy, Inc.
SN Aboitiz Power – RES Inc.
San Fernando Light & Power
PRISM Energy, Inc.
Mazzaraty Energy Corporation
Ayala Group
Econzone Power Management, Inc.
DirectPower Management, Inc.
AC Energy, Inc.
San Miguel Group
San Miguel Electric Corp.
SMC Consolidated Power Corp.
MERALCO Group
Manila Electric Co. (MPower)
Vantage Energy Solution and Management, Inc.
Clark Electric Distribution Corporation
Others
First Gen Energy Solutions
Global Energy Supply Corp.
GNPower Ltd. Co.
TEAM (Phils.) Energy Corp.
Masinloc Power Partners Co., Ltd.
Phinma Energy Corp.
Manta Energy, Inc.
KEPCO SPC Power Corporation
Premier Energy Resource Corp.
FDC Retail Electricity Sales Corporation
Kratos RES Inc.
Bac-Man Geothermal, Inc.
Citicore Energy Solutions
Corenergy, Inc.
Anda Power Corporation
MERALCO group has the most number of CCs with 33% of the total share. Consolidated number
of CCs of the Aboitiz group ranked second with 26% and followed by the Ayala Group with 13%.
San Miguel Group garnered 10% while the remaining 12% were accounted to other suppliers.

As of April 2019
43
Figure 14 - Number of CCs per Suppliers Group as of April 2019
Similarly, MERALCO group has the largest share of energy sales with 34% for the 1st quarter of
2019. Aboitiz group has a total 22% share while San Miguel Group accounted for 19%. Ayala
group has 9% of the total sales to CCs while other Supplier combined for the remaining 12%.
Figure 15 - Sales per Supplier Groups’ as of 1st Quarter of 2019
The average monthly metered quantities during the report period is recorded at 1,521 GWh. Of
Which 95% was acoounted for the the bilateral contracts and 5% were from the spot market. The
highest metered quantity so far was in April 2019 at 1,583GWh. As the metered quantity increases
along with the increase of demand and number of CCs, the spot quantity is averaging at nearly 6%
from the initial commercial operation up to April 2019.
Since the commercial operation of the RCOA, monthly switching rate was recorded to be about
3.87 customer switches. The largest number of switches approved was 45 in February 2019 with

As of April 2019
44
25 switches was previously served by Phinma Energy, while 17 switches contracted to MPower as
new Supplier.
Department Circular No. DC2017-12-0013 provides for the timeline of lowering the demand
threshold level in voluntary participation of the CCs on the retail market. In the said circular, it is
expected to increase the number of eligible CCs which requires the updating and simplifying
RCOA processes. Also, the DOE promulgated Department Circular No. DC2018-01-0002
providing the policies for the efficient transition of the WESM to the IMO which assumed the
functions of the Market Operator while PEMC shall be the governing arm of the WESM.
Thus, in cognizant of the need to address policy gaps and ensure further development of the
implementation of the RCOA, the DOE propose to issue a department circular entitled “Amending
Various Issuances on the implementation of RCOA” which will include the voluntary registration of
the CCs in the WESM as Trading Participants and designating the IMO as the Central Registration
Body.
H. Generating Capacity Market Share and Concentration
Section 45 of the EPIRA provide cross-ownership and market share limitations as follows:
a. No generation company, distribution utility, or its respective subsidiary or affiliate or

stockholder or official of a generation company or distribution utility, or other entity engaged
in generating and supplying electricity specified by ERC within the fourth civil degree of
consanguinity or affinity, shall be allowed to hold any interest, directly or indirectly, in
TRANSCO or its concessionaire;
b. No company or related group can own, operate or control more than 30% of the installed
generating capacity of a grid and/or 25% of the national installed generating capacity; and
c. No distribution utility shall be allowed to source from bilateral power supply contracts more
than 50% of its total demand from an associated firm engaged in generation.
Relative to above, following are the updates on the compliances of the electric power industry
participants:
Table 28. Market Share Determination per Grid and National Grid as of December 2018
% Market Share
Installed Generating Installed Generating
Grid Limitation as per R.A.
Capacity (MW) Capacity Limit (MW)
9136
Luzon 16,133.04 30% 4,839.91
Visayas 3,409.60 30% 1,022.88
Mindanao 3,738.35 30% 1,121.50
National 23,280.98 25% 5,820.24
Source: DOE

As of April 2019
45
Below is the graphical presentation of the dominant power market players with their respective
percentage market share:
Figure 16 - Market Share Determination per Grid and National Grid
In Luzon, the Aboitiz Power with 3,560.94 MW total installed generating capacity is on top of
the list of the power generation business which reaches 22% of the total installed capacity of
16,133.04 MW in Luzon Grid. It is followed by the San Miguel Power with 3,446.00 MW total
installed generating capacity or 21% of the Luzon market share. Other generation company on
the top of the list is the First Gen with a total installed generating capacity of 2,470.25 MW or
15% market share. This is followed by PSALM having an installed generating capacity of
1,615.89 MW or 10% of the market share.
In Visayas, the FirstGen with 964.55 MW covers the 28% of the total installed generating
capacity of 3,409.60 of the Visayas Grid. The Global Business Power Corporation (GBPC) is
placed as second on the list with 26% or 871.63 MW installed generating capacity followed by
Salcon Power, KEPCO, PHINMA, ABROWN, HSEC and Aboitiz Power.
In Mindanao, the Government still holds the main portion of the power generation business
through the IPP contracts of the PSALM and the NPC having an installed generating capacity
of 982.81 MW or 26% share in the total installed generating capacity of 3,738.35 MW of the
Mindanao Grid. The Aboitiz Power is placed as second on the list with 922.43 MW installed
generating capacity or 25% followed by ALSONS with12 %, FDC with 11%, and San Miguel
with 8%.
In the National Grid, the Abotiz Power gains the largest market share in totality, holding 19% of
the 23,280.98 MW National installed capacity, followed by the San Miguel with 16% and
FirstGen with 15% while the Government thru PSALM still has 11% market share remaining.
For the report period, it is determined that there is no power generation entity that exceeded
the installed generating capacity and market share limitation per Grid and National Grid.

As of April 2019
46
I. Market Concentration
To measure the current Philippine power market concentration, the DOE uses the Herfindahl-
Hirschman index (HHI) computation. HHI5 is the most common measure used to assess
concentration from shares of industry participants. In the US, the following thresholds are used
as guidelines:
➢ 0-1000 unconcentrated
➢ 1000 – 1800 moderately concentrated
➢ Above 1800 highly concentrated.
Table 29. Herfindahl-Hirschman Index (HHI) Computation

% Share (National
Installed
Installed
Ranking Market Players Generating % Share (squared)
Generating
Capacity (MW)
Capacity)
1 ABOITIZ 4,483.37 19.26% 370.8568432
2 SAN MIGUEL 3,746.00 16.09% 258.9006065
3 FIRSTGEN 3,451.12 14.82% 219.7436756
4 PSALM 2,598.70 11.16% 124.5980231
5 OTHERS 9,001.79 38.67% 1495.049146
TOTAL 23,280.98 100% HHI = 2,469.15
Source: DOE
Based on the above computation, the HHI as of December 2018 is 2,469.15 which indicates a
moderately concentrated power market or a market with a rationally level of competition.
5 The State of Competition in the Philippine Manufacturing Industry, Rafaelita Mercado-Aldaba

As of April 2019
47
VI. POWER SUPPLY SECURITY AND RELIABILITY
A. Power Generation
The gross generation of the country for 2018 increased to 99,765 GWh with a growth rate of
5.7% from the 2017 gross generation of 94,370,341 MWh. The majority of the generation
was recorded in the Luzon grid with 72.9% contribution. Visayas and Mindanao grids
recorded 14.3% and 12.8% share in the gross generation, respectively. Coal still dominated
the power mix for 2018 with 52.1% share. Renewable energy technologies produced 23.4%
generation. Natural gas contributed 21.4% in the mix while oil-based technologies remained
the least contributor in the power mix at 3.2%.
The gross generation of the Luzon grid reached 72,728 GWh for 2018 with a growth rate of
6.2% from 2017. The majority of the generation was sourced from coal with 51.4% share.
Natural gas was recorded with the second highest share in the Luzon generation at 29.3%.
Renewable energy contributed 16.3% of the generation with corresponding share from
geothermal at 5.3%, hydro at 8.2%, biomass at 0.8%, solar at 0.7%, and wind at 1.3%. While
oil-based technologies recorded the least share in generation with 3.0%.

As of April 2019
48
The Visayas grid registered 14,266 GWh of gross generation in 2018. The bulk of the
generation came from renewable energy technologies at 50.0% with contribution from
geothermal at 40.2%, hydro at 0.5%, biomass at 3.1%, solar at 4.6%, and wind at 1.6%. Coal
produced 47.6 % of generation while oil-based generated 2.4%.
The Mindanao Gross Generation amounted to 12,770 GWh for 2018. With the addition of 150
MW San Miguel Malita, coal generation increased and led more in the mix with 61% share.
This increase is expected to continue when GN Power Kauswagan Coal-Fired Power Plant
come online in 2019. Alternatively, Renewable Energy Sources contributed at 34.1% share,
which were comprised of geothermal at 6.5%, hydro at 26.4%, biomass at 0.6%, and solar at
0.7%. Similar to the Luzon and Visayas grids, oil-based technologies recorded the least
share with only 5.0%.

As of April 2019
49
B. Installed and Dependable Capacity
The total power supply, in terms of installed capacity, grew by 4.8% from 21,730 MW in 2017
to 22,23,815 MW in 2018. As shown in Table 30, a total of 933.6 MW new capacities were
added to the country’s supply based in 2018 which include coal-fired (720 MW), oil-based
(87.3 MW), geothermal (12 MW), hydropower (80.3 MW) and biomass (34 MW). In terms of
share by grid, Luzon contributed additional capacity by 659.5 MW or 71% and Mindanao at
274.1 MW or 29% while Visayas has not developed any additional capacity for 2018.
Table 30. Newly Operational Power Plants for 2018

CAPACITY,
POWER PLANT LOCATION COMMERCIAL
MW
OWNER / OPERATOR OPERATION
FACILITY MUNICIPALITY /
SUBTYPE INS DEP DATE
NAME PROVINCE
LUZON 659.5 636.4
COAL 570 555
Pulvurized Sub Pagbilao Energy
PAGBILAO U3 420 420 Pagbilao, Quezon March 2018
Critical Coal Corporation (PEC)
Circulating
SMC Consolidated Power
SCPC U3 Fluidized Bed 150 135 Limay, Bataan March 2018
Corporation (SCPC)
(CFB) Coal
OIL-BASED 50 46
Southwest Luzon Power
Modular Gas
SLPGC U3 25 23 Calaca, Batangas Generation Corporation March 2018
Turbine
(SLPGC)
Southwest Luzon Power
Modular Gas
SLPGC U4 25 23 Calaca, Batangas Generation Corporation March 2018
Turbine
(SLPGC)
GEOTHERMAL 12 12
Flash Type Sto. Tomas, Maibarara Geothermal
MAIBARARA U2 12 12 May 2018
Steam recovery Batangas Inc. (MGI)
HYDRO 8.5 8
Maris 1 Main Run-of-River SN Aboitiz Power (SNAP)
8.5 8 Ramon, Isabela November 2017
Canal type HEPP - Magat, Inc.
BIOMASS 19 15.4
Asian Carbon Neutral
ACNC Biogas 2 0.6 Tarlac City, Tarlac Power Corporation October 2017
(ACNC)
Rice Husk-fired
Bicol Biomass Energy
BBEC Cogeneration 5 4 Pili, Camarines Sur March 2017
Corporation (BBEC)
Plant
Rice Husk-fired
SJC IPOWER San Jose City, San Jose City I Power
Cogeneration 12 10.8 December 2017
PHASE II Nueva Ecija Corporation
Plant
VISAYAS 0 0
MINDANAO 274.1 257.3

COAL 150 135
Circulating Brgy. Culaman, San Miguel Consolidated
SMC MALITA
Fluidized Bed 150 135 Malita, Davao Power Corporation February 2018
U2
(CFB) Coal Occidental (SCPC)
DIESEL 37.3 37
Bunker/Diesel
Internal Jimenez, Misamis King Energy Generation
KEGI - JIMENEZ 7.8 7.5 October 2017
Combustion Occidental Inc. (KEGI)
Engine
Bunker/Diesel
Internal Peak Power Bukidnon.
PBI 10.4 10.4 Bukidnon March 2018
Combustion Inc. (PBI)
Engine
Bunker/Diesel
Internal San Francisco, Peak Power San
PSFI 2 5.2 5.2 January 2018
Combustion Agusan del Sur Francisco (PSFI)
Engine

As of April 2019
50
CAPACITY, COMMERCIAL
POWER PLANT LOCATION OWNER / OPERATOR
MW OPERATION
Bunker/Diesel DATE
Internal General Santos Peak Power Soccsargen,
PSI 2 13.9 13.9 September 2017
Combustion City Inc. (PSI)
Engine
HYDRO 71.8 71.8
New Bataan Run-of-River New Bataan, Euro Hydro Power (Asia)
3 3 March 2018
HEPP type HEPP Compostela Valley Holdings, Inc.
Hydro Electric U1 – July 2018
Manolo Fortich Run-of-River Santiago, Manolo
68.8 68.8 Development Corporation U2 – November
HEPP type HEPP Fortich, Bukidnon
(HEDCOR) Bukidnon, Inc. 2018
BIOMASS 15 13.5
Bagasse-fired
Lamsan Power Lamsan Power
Cogeneration 15 13.5 Maguindanao May 2018
Corporation Corporation
Plant
TOTAL NEW CAPACITY FOR
933.6 893.7
2018 (MW)
The country’s installed capacity, as shown in the table below, which comes from both for grid
and off-grid connected generating facilities, has increased significantly by 1,087 MW or 4.8%
from 22,728 MW in 2017, the capacity grew to 23,815 MW in 2018. The total dependable
capacity, rose by 3.5% or 21,241 MW in 2018 from 20,515 MW in 2017.
Table 31. Total Installed and Dependable Capacities per technologies, Philippines, 2018
PHILIPPINES
FUEL TYPE Capacity (MW) % Share (%)
Installed Dependable Installed Dependable
Coal 8,844 8,368 37.1 39.4
Oil Based 4,292 2,995 18.0 14.1
Diesel 2,839 2,305 11.9 10.9
Oil Thermal 650 150 2.7 0.7
Gas Turbine 803 540 3.4 2.5
Natural Gas 3,453 3,286 14.5 15.5
Renewable Energy
(RE) 7,227 6,592 30.3 31.0
Geothermal 1,944 1,770 8.2 8.3
Hydro 3,701 3,473 15.5 16.3
Biomass 258 182 1.1 0.9
Solar 896 740 3.8 3.5
Wind 427 427 1.8 2.0
TOTAL 23,815 21,241 100.0 100.0
Source: DOE
Note: Grid and off-grid generators included
C. Electricity Sales and Consumption
In spite of slowdown in the growth of the Philippine economy in 2018 to 6.2%, slower than the
6.7% registered in 2017 and below the government’s downward revised target range of 6.5%
to 6.9% for the year, the total electricity sales and consumption all over the country still
posted a notable figure of 99,765 GWh in 2018 from 94,370 GWh in 201, equivalent to 5.72%
growth from the previous year. Out of these total sales and consumption, 56,036 GWh or
56.17% was contributed by Private Investor Owned Utilities (PIOU’s), while 21,486 GWh or
21.54% was from the Electric Cooperatives. Non-utilities and Other Services were 4,318
GWh or 4.33%, 2,203 GWh or 2.21%, respectively. Total sales accounted to 84,043 GWh,
corresponding to 84.24% share to total consumption. The electricity sales established a solid
performance, grew significantly by 6.20% in the year of earth dog, from the previous year’s

As of April 2019
51
4.91%. “Own-use” of power plants and distribution utilities dropped further by 175 GWh (-
2.10%) from 8,316 GWh in the previous year to 8,141 GWh in 2018. It is noted that “Losses”
from generator, transmission and distribution has been on the upward trend since 2016,
accounted for 9,007 GWh or 9.03% as shown in the figure below.
Table 32. 2018 Electricity Sales & Consumption of Distribution Utilities, by Grid
Type of
Dsitribution Luzon Visayas Mindanao Philippines
Utilities
Private Investors Owned Utilities (PIOUs)
Residential 14,752 1,269 1,222 17,243
Commercial 18,466 620 599 19,684
Industrial 14,064 2,579 2,087 18,729
Others 193 103 83 379
Total Sales 47,475 4,571 3,990 56,036
Own-Use 65 5 5 75
System Loss 2,838 340 284 3,462
Total 50,378 4,916 4,279 59,573
Electric Cooperatives
Residential 5,805 2,595 2,618 11,017
2,225 1,085 1,022 4,332
Commercial
Industrial 1,899 864 1,877 4,640
Others 660 425 412 1,497
Total Sales 10,589 4,969 5,928 21,486
Own-Use 20 9 15 44
System Loss 1,371 567 913 2,851
Total 11,980 5,544 6,856 24,380
Non-
Utilities/Directly
3,477 547 294 4,318
Connected
Other Services 1,426 745 31 2,203
Plant Station
Used 4,157 1,471 968 6,596

As of April 2019
52
Type of
Dsitribution Luzon Visayas Mindanao Philippines
Utilities
Transmission
Losses 2,084 268 341 2,694
Total Electricity
Sales &
73,503 13,492 12,770 99,765
Consumption
The Philippine electricity sales and consumption continued to manifest resiliency in 2018
despite of the steep rise in inflation in 2018. The country’s electricity sales and consumption
moderately eased to 5.72% in 2018 from 3.93% in 2017, buoyed by the robust growth in the
industry sector, albeit slower growth of 7.88% against 6.04% in 2017, which contributed
27.10% in the 2018 total consumption driven by the increased in the construction activity,
attributable to the Administration’s Build-Build-Build program.
The electricity sales in residential sector expanded drastically posting a remarkable growth of
5.5% in 2018 from 4.49 in 2017. The increase in the electricity sales from the residential
customers can be traced to the substantial utilization of cooling system due to higher
temperatures.
Commercial consumption increased at markedly lower rate from the resilient growth
performance of 5.48% in 2018 to a modest growth of 4.58 % in 2017.
“Others” refer to public buildings, street lights, irrigation, agriculture and “others not
elsewhere classified”. This group continued to post a significant growth at faster pace by
3.12% from 2,670 GWh in 2017 to 2,753 GWh in 2018.
Total system loss of the Distribution Utilities accounted to 9,007 GWh, corresponding to
9.02% while the utilities’ own-use for office and station use of the power plants significantly
declined to 2.10% from 8,316 GWh in 2017 to 8,141 GWh in 2018.
Table 33. 2018 and 2017 Comparative Electricity Sales and Consumption (in GWh), Philippines
Philippines
2018 2017 Difference

Sector
% Growth
GWh %Share GWh %Share GWh
Share
Residential 28,261 28.33% 26,782 28.38% 1,479 5.52%
Commercial 24,016 24.07% 22,768 24.13% 1,248 5.48%
Industrial 27,587 27.65% 25,573 27.10% 2,014 7.88%
Others 2,753 2.76% 2,670 2.83% 83 3.12%
Total Sales 82,617 82.81% 77,793 82.43% 4,824 6.20%
Own-Use 8,141 8.16% 8,316 8.81% (175) -2.10%
System Loss 9,007 9.03% 8,262 8.75% 745 9.02%
Total Consumption 99,765 100.00% 94,370 100.00% 5,394 5.72%

*Includes Off-Grid Sales
Source: 2018 Power Statistics

As of April 2019
53
Figure 17 - 2018 Electricity Sales & Consumption of Distribution Utilities by Sector, Philippines
Table 34. 2018 and 2017 Comparative Electricity Sales of Distribution Utilities, by Sector, by Grid
Luzon 2018 2017 % Growth Rate
Residential 20,557 19,626 4.74%
Commercial 20,691 19,601 5.56%
Industrial 19,353 18,029 7.34%
Others 940 991 -5.17%
Total Sales 61,541 58,247 5.65%
Own-Use 5,669 5,940 -4.57%
System Loss 6,293 5,437 15.74%
Total Consumption 73,503 69,625 5.57%
Visayas 2018 2017 % Growth Rate

Residential 3,864 3,615 6.88%
Commercial 1,705 1,642 3.79%
Industrial 3,978 3,590 10.82%
Others 1,285 1,202 6.92%
Total Sales 10,831 10,049 7.79%
Own-Use 1,485 1,516 -2.01%
System Loss 1,175 1,377 -14.67%

As of April 2019
54
Mindanao 2018 2017 % Growth Rate
Residential 3,840 3,541 8.45%
Commercial 1,621 1,525 6.27%
Industrial 4,256 3,955 7.63%
Others 527 476 10.77%
Total Sales 10,244 9,497 7.87%
Own-Use 987 860 14.80%
System Loss 1,538 1,448 6.27%
Philippines 2018 2017 % Growth Rate

Residential 28,261 26,782 5.52%
Commercial 24,016 22,768 5.48%
Industrial 27,587 25,573 7.88%
Others 2,753 2,670 3.12%
Total Sales 82,617 77,793 6.20%
Own-Use 8,141 8,316 -2.10%
System Loss 9,007 8,262 9.02%
*Includes Off-Grid Sales
Source: 2018 Power Statistics
On a per grid basis, the sustained accelerated growth in the Mindanao electricity sales and
consumption resulted to 8.18% in 2018, relatively higher than the year-ago rate of 4.04%.
The remarkable performance of Mindanao during 2018 in terms of electricity sales and
consumption was mainly due to the recorded positive growth of all its sectors attributable to
the adequate and stable supply of power in the Mindanao Grid due to the entry of additional
capacities in 2018.
Meanwhile, electricity sales and consumption in the Luzon grid likewise revved up
moderately, boosting the 2018 growth to 5.57% from 3.58% in the 2014. The normal
operations of power plants in the grid during the period and less incidences as well as shorter
duration of power plant outages were the major factors that contributed to the positive growth
in Luzon’s electricity sales and consumption in 2018.
Recovering from the effects of the 6.5 magnitude earthquake hit Jaro, Leyte, which massively
caused power interruptions in the whole of Eastern Visayas and nearby Bohol Province,
Visayas grid ranked the third in terms of growth in electricity sales and consumption of
posting a slower pace turnaround growth of 4.25% from 5.08 % in 2017. The output growth
was driven mainly by the robust rebound in all sector’s activities across. The expansion was
boosted by the continued collaborative programs/efforts of the government and support of
private sectors to the reconstruction in areas affected by Leyte earthquake, and other smaller
disasters in the grid.
D. Power Projects
To address the increasing demand caused by the infrastructure development, DOE

encourages investors to invest in the power generation sector to augment the needed
capacity in the power system. As shown in table below, capacities from committed power
projects reached 6,329MW by the end of 2018. About 80% of these capacities are accounted

As of April 2019
55
from coal-fired power projects that will provide baseload capacity in the system in the coming
years. The indicative power projects capacity amounted to 33,199MW by the end of 2018.
Coal-fired power projects contributed 31.5% of these indicative capacity, while 55.7% is
expected to come from renewable energy technologies.
Table 35. Committed and Indicative Capacities, Philippines, as of 31 December 2018

Committed Indicative
Type of Power
No. of Capacity No. of Capacity
Plant % Share % Share
Proponents (MW) Proponents (MW)
Coal 10 5,085 80.3 10 10,463 31.5
Oil-Based 2 78 1.2 6 415 1.3
Natural Gas 1 650 10.3 5 4,060 12.2
Renewable
30 516 8.2 152 18,261 55.0
Energy (RE)
Geothermal 2 81 1.3 3 200 0.6
Hydro 13 79 1.2 54 4,676 14.1
Biomass 12 215 3.4 20 343 1.0
Solar 3 141 2.2 62 10,199 30.7
Wind 0 - 0.0 13 2,843 8.6
TOTAL 44 6,329 100.0 173 33,200 100.0
Source: DOE
Table 36. Committed and Indicative Capacities, Luzon, as of 31 December 2018

Type of Power
No. of Capacity No. of Capacity
Plant % Share % Share
Proponents (MW) Proponents (MW)
Coal 6 3,950 82.7 7 8,935 33.3
Oil-Based 0 0 0 3 346 1.3
Natural Gas 1 650 13.6 5 4,060 15.1
Renewable
12 175 3.7 77 13,464 50.2
Energy (RE)
Geothermal 1 31 0.7 1 130 0.5
Hydro 8 23 0.5 29 3,344 12.5
Biomass 2 6 0.1 11 164 0.6
Solar 1 115 2.4 30 8,550 31.9
Wind 0 0 0 6 1,275 4.7
TOTAL 19 4,775 100 92 26,805 100
Source: DOE
Table 37. Committed and Indicative Capacities, Visayas, as of 31 December 2018

Type of Power
No. of No. of Capacity
Plant Capacity % Share % Share
Proponents Proponents (MW)
(MW)
Coal 2 435 56.8 1 600 15.4
Oil-Based 2 78 10.2 2 64 1.6
Natural Gas 0 0 0 0 0 0
Renewable
10 253 33 37 3,240 83
Energy (RE)
Geothermal 1 50 6.5 1 40 1
Hydro 2 23 3 13 728 18.6
Biomass 6 179 23.3 2 60 1.5
Solar 1 1 0.2 14 844 21.6
Wind 0 - 0 7 1,568 40.2
TOTAL 14 766 100 40 3,903 100
Source: DOE

As of April 2019
56
Table 38. Committed and Indicative Capacities, Mindanao, as of 31 December 2018
Type of Power
Plant No. of No. of Capacity
Capacity % Share % Share
Proponents Proponents (MW)
(MW)
Coal 2 700 88.8 2 928 37.2
Oil-Based 0 - 0 1 6 0.2
Natural Gas 0 - 0 0 - 0
Renewable
8 88 11.2 38 1,558 62.5
Energy (RE)
Geothermal 0 - 0 1 30 1.2
Hydro 3 33 4.2 12 603 24.2
Biomass 4 30 3.8 7 119 4.8
Solar 1 25 3.2 18 805 32.3
Wind 0 - 0 0 - 0
TOTAL 11 788 100 41 2,491 100
Source: DOE
E. Significant Incidents in Luzon, Visayas, and Mindanao
In terms of significant incidents for 2018, Luzon grid did not experience Red Alert occurrence.
The non-issuance of Red alert notice implicates that there was no reserve inadequacy in the
system that may cause rotating brownouts in the grid. However, Luzon grid still experienced
seven occurrences of Yellow alerts during the following dates, wherein the reserve level is
below the required contingency reserve of the grid:
• 26 February 2018 due to forced and unplanned outages of power plants, natural gas
fuel restriction, and de-rating of power plants;
• 12 April 2018 due to forced and unplanned outages of power plants, and de-rating of
power plants;
• 29-31 May 2018 due to high demand, forced and unplanned outages of power plants,
and de-rating of power plants;
• 1 June 2018 due to forced and unplanned outages of power plants, and de-rating of
power plants; and
• 4 June 2018 due to forced and unplanned outages of power plants, and de-rating of
power plants.
On the other hand, Visayas is still experiencing problems in the power system that caused 15
recorded Red alert notices in the grid along with significant number of Yellow alert
occurrences especially on instances where large power plants are on simultaneous outages,
planned or forced. For Visayas, the peak demand usually occurs in the evening and the
unavailability of solar power plants at this time of the day contributes to the low reserve level
of the grid.
Mindanao also has improved in terms of having lesser Red and Yellow alert notices in 2018,
compared to the previous years due to the development of additional stable capacity from
large coal-fired power plants in the grid. There was only one recorded major incident in the
Mindanao grid that cause a partial blackout due to transmission line tripping on 8 November
2018 that affected areas in Zamboanga peninsula as well as the provinces of Lanao and
Misamis Oriental.

As of April 2019
57
Luzon Transmission Line Outages In 2018
Years have passed and the electricity in our country is in still in the state of modernization.
And the population and industrialization of our country is rapidly increasing which is why the
demand of electricity continues to grow and the expedition for the Electric Power has become
a trend. In these upcoming years the government aims total electrification within the country
and to develop the Philippine Smart Grid. Prior to this objective, it must first address the
problem that the Power System is experiencing. This report formulated by the Department of
Energy is based from the Daily Operation Reports (DOR) of the System Operator (SO),
which is the National Grid Corporation of the Philippines (NGCP). It records all the
Transmission Line Outages that occurred within the system which can be used as basis to
address future interruptions for the stability, reliability and efficiency of the Grid.
Transmission Line Outages are categorized into three major aspects; Planned Outages (PO),
Forced Outages within the SO’s Responsibility (FO) and Forced Outages Outside the SOs
Responsibility (OO). This report only contains the Forced/Unplanned Outages to determine
the specific transmission lines that has to be evaluated and addressed.
The evaluation of transmission line outages used metrics, which can be classified into two;
according to the frequency and duration of interruption and according to the cause of the
system interruptions. It is important to consider both Frequency and Duration because both
are essential in determining the constraints that the transmission line is experiencing. In this
report, the frequency and duration of the system interruptions in the Luzon area, for the year
2018, has been evaluated.
Frequency of Transmission Line Outages 2018
Given in this part of the report is the yearly review and summary of transmission line outages
based on the number of times of tripping or the frequency of outages.
2018 Transmission Outages Frequency

Month Transmissi Number of Transmission Number of Total Number
on Outages (OO) in % Outages within (FO) in % of
Outside NGCP's Transmission
NGCP's Responsibility, Outages
Responsibi FO
lity, OO
January 20 48% 22 52% 42
February 17 55% 14 45% 31
March 34 85% 6 15% 40
April 33 73% 12 27% 45
May 41 60% 27 40% 68
June 23 55% 19 45% 42
July 47 72% 18 28% 65
August 28 67% 14 33% 42
September 56 75% 19 25% 75
October 33 69% 15 31% 48
November 22 71% 9 29% 31
December 15 47% 17 53% 32
Total Yearly 369 66% 192 34% 561
outage for 2018
The table above shows the summary of the number of outages per month based on the FO
and OO outages. It can be observed that most of the outages based on frequency were
attributed to the OO. This is caused by the continuing skyway project, Girder erections and
due to Force majeure. There are a total of 561 Transmission line outages, of which 369
comes from OO and 192 comes from FO.

As of April 2019
58
Figure 18 - FO vs OO (Frequency)
The above figure shows that only 34% of the Forced outages are accountable to NGCP and
66% are the outages outside NGCPs responsibility. The 34% FO are mostly attributed to the
following: 1) Equipment Trouble particularly Power Transformer and protective relays; 2)
Momentary interruption of Faults which are very short period-trippings; and 3) Sustained
Interruption which are interruptions that are greater than 1 minute for transmission line and
greater than 5 minutes for sub-transmission lines.
Figure 19 - Monthly Transmission Line Outages Frequency
Figure 20 - Daily Transmission Line Outages Frequency

As of April 2019
59
Outages Classification
The NGCP uses a coding system to easily determine and identify the causes of these
Transmission Line interruptions as follows:

As of April 2019
60
The abovementioned notable outages are defined and classified as:
Outage Code Outage Type/Description

Outages FO14 Sustained Outage
within Momentary Outage/ Interruption (Outage ≤ 1min for T/L, ≤ 5mins for
NGCPs FO01 ST/L)
Responsibility Substation Equipment Trouble – Power Transformer
(FO) FO05AA
FO05AE Substation Equipment Trouble – Disconnect Switch
Outages Customer and other identity caused outages – outage required by
outside OO07AE customer
NGCPs Customer and other identity caused outages – outage requested by
Responsibility OO07AF Government Agencies and other entities outside NGCP
(OO) Customer and other identity caused outages – outage caused by
OO01AA uncoordinated protection (with violation)
Customer and other identity caused outages – owned and maintained
OO07AB line
OO19AA Isolation due to force outage
Outage caused by other parties, NGCP contractor uncontrollable by
OO25 NGCP
Figure 21 shows the frequency of outages based on specific cause of Outages. These
figures show the top 10 causes of outages on the transmission Lines.

As of April 2019
61
Figure 21 - Transmission Line Outage Frequency Based on Classification
Table 39. Frequency of Outages on Transmission Lines

Transmission Line Total no. of Outages
Araneta-Balintawak 230 Kv L 60
Araneta-Paco 230 Kv L 22
Balintawak-Mexico 230 Kv L 9
Balintawak-Cruz Na Daan 230 Kv L 9
Makban 230 Kv C-D Tie L (Co) 8
Kadampat-Masinloc 230 Kv L1 8
Based on the coding system of NGCP, the above table can be seen that 178 of the
transmission line outages are due to OO07AE and are 75 due to OO07AF. This is because of
the on-going Girder erection and providing clearance for work safety of the on-going skyway
project at the Araneta-Balintawak 230 kV L and Araneta-Paco 230 kV L which is consistent
with Table 39 that shows the transmission lines that are highly affected by these faults.
However, these are outages that cannot be controlled by NGCP.
Notable FO outages are attributed by FO14 having a total of 73 outages and FO01 having a
total of 39 outages. These outages are due to Single Line to Ground Fault which is a very
common cause of Faults in transmission lines when one of the line conductors had contact
with the earth/ground or the neutral wire which can be due to lightning, vegetation, high-
speed winds, etc. These common faults takes only less than a minute to be addressed or
reclosed which can be considered as Momentary Faults if the interruption is less than or
equal to a minute for transmission lines and less than or equal to 5 minutes for Sub-
transmission lines. If such fault exceeds the time, it is now considered as Sustained
Fault/Interruption. Based on the data that has been gathered from the DOR of NGCP, most
of these faults occur on Balintawak-Mexico 230 Kv L, Balintawak-Cruz Na Daan 230 kV L
and Kalayaan-Gumaca 230 kV L2.

As of April 2019
62
Power Grid Map (Luzon)
Kadampat-Masinl oc 230 kV L1 : 8 times
Araneta-Balintawak 230 kV L : 60 times

Araneta-Paco 230 kV L : 22 times
BalintawaMexico 230 kV L : 9 times
Balintawak-Cruz Na Daan 230 kV L : 9 times
Kalayaan-Gumaca 230 kV L2: 6 times
Makban 230 kV C-D Tie L (Co) : 8

times

As of April 2019
63
Duration of Transmission Line Outages 2018
Given in this part of the report is the yearly review and summary of transmission line outages
based on the duration of outages.
Table 40. Monthly Transmission Line Outages Duration

2018 Transmission Outages Duration
Transmission Transmission
Outages Outages within Total no. of
Outside NGCP's NGCP's Transmission
Responsibility Hours of Responsibility Hours of Outages
Month (Hours) (OO) in % (Hours) (FO) in % (Hours)
January 162.78 37% 277.31 63% 440.10
February 926.43 95% 49.37 5% 975.80
March 2,099.25 99% 14.40 1% 2,113.65
April 1,939.75 94% 118.12 6% 2,057.87
May 644.00 87% 94.01 13% 738.01
June 280.98 78% 80.87 22% 361.85
July 1,423.05 97% 40.53 3% 1,463.58
August 246.57 65% 130.30 35% 376.87
September 886.48 95% 50.58 5% 937.07
October 316.68 78% 88.52 22% 405.20
November 189.85 83% 39.22 17% 229.07
December 618.83 80% 152.51 20% 771.34
Total Yearly
Outage for 2018 9,734.67 90% 1,135.73 10% 10,870.40
Table 41 shows the summary of the duration in hours of outages per month based on the FO
and OO outages. It can be observed that most of the outages based on duration were
attributed to the OO. This is caused by the upgrading projects, installations of new electrical
equipment to some transmission and sub-transmission line and due to tower relocation
requested by other agency for construction projects. There are a total of 10,870.40hrs of
interruption on Transmission lines, of which 9,734.67hrs comes from OO and 1,135.73
comes from FO.
Figure 22 - FO vs OO (Duration)
Figure 22 shows that based on duration, only 10% are accountable within NGCPs
responsibility mainly because most of its interruptions are only Momentary and Sustained
Faults which do not take long hours and can be addressed quickly. Most of the OO faults
which is 90% of the total duration were due to some Upgrading Projects and Construction
Projects that are beyond NGCPs control. However, it can be observed that in the month of

As of April 2019
64
January 2018, the total duration of FO faults is greater to OO faults due to major
part/equipment replacement where installation and test takes time
Total Duration of Transmission Line Outages Outside NGCPs Responsibility
Table below shows the top 10 transmission lines that have the longest duration of interruption
that is beyond NGCPs responsibility. The long time duration of outage for Masinloc 230kV
Bus A is due to upgrading of Bay 1 overhead line and dismantling of dummy bus of bay 2 and
installation of new circuit breakers which took more than 3 months of installation. Another
notable outage is the Balintawak-Cruz Na Daan 230 kV L which is due to the relocation of
their steel towers due to the Plaridel Bypass Road Project of the DPWH which has affected
the number 400 to 404 Towers of the NGCP.
Table 41. Duration of OO in Transmission Lines

Transmission Lines Total Number of Hours
Masinloc 230kV Bus A 2026.62
Kadampat-Masinloc 230 Kv L2 1341.07
Kadampat-Masinloc 230 Kv L1 861.87
Balintawak-Cruz Na Daan 230 Kv L 448.47
Balintawak 220/115/13.8kv 300mva T8 (Co) 435.02
Araneta-Balintawak 230 Kv L 377.78
Santiago-Magat 230 Kv L2 345.43
Clark 230/69/13.8 Kv T01 (50mva) (Co) 344.60
Makban 230 Kv C-D Tie L (Co) 265.55
GN Power 230kV Bus B 264.93
Total Duration of Transmission Line Outages Within NGCPs Responsibility
Table below shows the top 10 transmission lines that have the longest duration of outages
that is within NGCPs Responsibility. Zapote 230/115/13.8kV T4 (300MW) is due to the
replacement of the transformer oil pump and oil purifier which took 9days of installation.
Another notable outage is within Cruz Na Daan 230/115/13.8 kV T1 (100MVA) which is due
to the explosion of the 230kV transformer TO1 bushing phase B that affected MERALCO’s
69kV control and power cables that were damaged/burned by hot burning oil coming from the
explode 230kV bushing that flow inside open cable trench. Such outage can be prevented by
consistent test and thermal scanning for Hotspots to ensure the condition of equipment.
Table 42. Duration of FO in Transmission Lines

Transmission Lines Total no. of Hours
Zapote 230/115/13.8 Kv T4 (300mw) 232.72
Cruz Na Daan 230/115/13.8 Kv T1 (100mva) 111.05
Tayabas-Naga 230 Kv L1 61.12
Mexico-Hermosa 230 Kv L2 58.58
Labo 230kV Bus A 47.05
San Lorenzo-Avion 230 Kv L (Co) 42.35
Dasmarinas 500/230/13.8 Kv T08 (600mva) 41.73
Gumaca-Labo 230 Kv L2 37.017
San Jose 230/115/13.8 Kv T2 (300mva) 30.60
Mexico-Hermosa 230 Kv L1 28.78

As of April 2019
65
F. System Peak Demand
The country’s total peak demand in 2018 was recorded at 14,782 MW, which is 993 MW or
7.2% higher than the 13, 789 MW in 2017. 10,876 MW or 74% of the total demand comes
from the Luzon grid while Visayas and Mindanao has a share of 14% (2,053 MW) and 13%
(1,853 MW), respectively. Among the three (3) grids, Luzon grid showed significant increase
in peak demand since it grew by 822 MW or 8.2% from its last year’s peak demand of 10,054
MW.

As of April 2019
66
G. Status of Government Generating Assets
1. Agus VI HEPP ( Units 1 & 2) Uprating Project
The Agus VI Units 1 and 2 Uprating Project was implemented to increase the power
output of Units 1 and 2 from 25MW to 34.5MW each, and to extend their economic life
to another thirty (30) years. The Project consists of engineering investigation, design,
manufacturing and installation of new hydropower turbines and blades for the uprating
of Units 1 and 2 from 25 MW to 34.5 MW per unit. The Project was awarded to the
joint venture (JV) of Guangxi Hydroelectric Construction Bureau (GHCB) and ITP
Construction Inc. in December 2013.
On 14 January 2019, PSALM transmitted the Operation and Maintenance Manuals

and As-built drawings of Agus VI HEPP units 1 and 2 to GHCB.
As requested by GHCB, on 25-27 January and 28 February 2019, Agus VI units 1

and 2 were put on shutdown to facilitate the inspection, repair and testing of remote-
control device of intake gates.
On 12 March 2019, PSALM informed JV that the installation of Annunciator Alarm

Panel should be completed on or before 05 April 2019. PSALM also informed JV that
certificate of completion will be issued upon completion by JV of the Distributed
Control System (DCS) Training and Annunciator Alarm Panel.
In response to PSALM, JV, in its letter dated 12 April 2019 relayed that the
annunciator alarm panel is impossible to install and cannot be connected to the
SCADA system.
On 29 April 2019, PSALM requested for the conceptual design and/or drawings of
each of the proposed solutions by the JV for the annunciator panel.

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67
H. Status of Transmission Projects
NGCP ensures that the grid is prepared whenever new plants come online and when the
demand for power in a certain area increases by anticipating these scenarios and
constructing new facilities. Further, NGCP implements various transmission and substation
projects in accordance with its 10-year Transmission Development Plan. Each project
contributes to the over-all reliability and security of the grid.
During the report period, following is the status of the NGCP Projects.
Transmission Master Plan
POWER QUALITY
• Tuguegarao–Lal-Lo (Magapit) 230 kV T/L (PQ, LG)

➢ Expected Time of Completion (ETC) – December 2019
➢ Status:
Supply of Materials Accomplishment
Schedule 1: Steel Towers 100%
Schedule 2: Power Conductors 100%
Schedule 3: Line Insulators 100%
Schedule 4: Line Hardwares 100%
Schedule 5: Optical Ground Wire 100%
Erection/Construction
Tuguegarao S/S 38.21%
Lal-Io (Magapit) S/S 72.45%

As of April 2019
68
➢ To improve the power quality and reliability of supply in the province of Cagayan and
this will form part of the development of the Northern Luzon 230 kV Loop that will cater
the wind power generation potential in the region.
SYSTEM RELIABILITY
• Ambuklao–Binga 230 kV T/L Upgrading

➢ ETC – December 2021
➢ Status – Preparation of Bid Documents
➢ To address the old age condition of the line and accommodate the generation capacity
addition in Cagayan Valley area.
• Binga–San Manuel 230 kV T/L
➢ Status - Preparation of Bid Documents; S/S of Stage 2 – 95.02%
➢ To address the old age condition of the line and provide N-1 contingency during
maximum dispatch of the generating power plants in North Luzon.
LOAD GROWTH
• Clark-Mabiga 69 kV Transmission Line Project

➢ ETC – February 2020
➢ Status:
Schedule 1: Steel Poles Manufacturing in progress
Schedule 4: Line Hardwares Manufacturing in progress
Turn-key
Clark S/S (1-230kV PCB & 3-69kV PCB) 90.10%
➢ To relieve the heavy loading of the existing Mexico-Clark Lines and address the low
voltage issues in the area.

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69
• Hermosa-Floridablanca 69 kV T/L Project
➢ ETC – June 2019
➢ Status – 100% Energized
➢ To relieve the overloading of the existing Hermosa–Guagua line and address the low
voltage issues in the area.
SYSTEM RELIABILITY
• Relocation of Steel Poles Along Duhat–Hermosa 230 kV T/L

➢ Status:
Erection/Construction 28.03%
➢ To ensure public safety in the Jose Abad Santos Avenue and to also protect the steel
poles.
• San Jose–Angat 115 kV T/L Upgrading

➢ Status – 84.27% complete
➢ To address the old age condition and reliability issues in the existing line serving the
Angat Hydroelectric Power Plant.

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70
• San Jose–Quezon 230 kV Line 3
➢ ETC – March 2019
➢ To increase transfer capacity of the existing corridor and maintain the N-1
contingency provision.
GENERATION ENTRY
• Mariveles–Hermosa 500 kV T/L

➢ ETC – September 2019
➢ Status:
Transmission Line:
Substation:
Schedule 1: Power Circuit Breaker 100%
Schedule 2: Disconnect Switch Manufacturing in progress
Schedule 3: Instrument Transformer 95%
Schedule 4: Surge Arrester 100%
Erection/Turnkey Checking of Manufacturers Drawing

As of April 2019
71
➢ To accommodate the connection of incoming generations in Bataan Peninsula by
developing a common collector switching station for power generation in Mariveles
and a new 500 kV transmission backbone from Mariveles going to Hermosa.
• Hermosa–San Jose 500 kV T/L

➢ Status:
Hermosa EHV S/S Site Development 2.23%
➢ To develop new 500 kV corridor that will accommodate the bulk generation in
Bataan and Zambales area and to improve the overall reliability, security and
stability of the 500 kV system.
• Western 500 kV Backbone (Stage 1)

➢ Status:
Transmission Line:
➢ To develop a 500 kV western corridor that will accommodate the bulk generation in
Zambales area and to improve the overall reliability, security and stability of the 500
kV system upon completion of the Stage 2.

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72
• Manila (Navotas) 230 kV S/S
➢ ETC – August 2020
➢ To provide additional substation capacity in Metro Manila to maintain the N-1
contingency provision for the transformers in Quezon, Marilao and Paco Substation.
• Antipolo 230 kV S/S

➢ Status:
Activity Accomplishment
Securing of LGU
Site Development
Permits
Supply of Materials 100%
Checking of
Turnkey (Secondary Equipment) manufacturer’s
drawing
➢ To accommodate the demand increase in Metro Manila and maintain the N-1
contingency provision for Taytay Substation.
• Calamba 230 kV S/S

➢ ETC – July 2019
➢ Status:
Transmission Line:
For Issuance of
Schedule 5: Optical Ground Wire
Purchase order
Substation:
Supply of High Voltage Equipment 100%
Turnkey of Secondary Equipment & 6.92%
Erection of High Voltage Equipment

As of April 2019
73
➢ The Calamba 230 kV Substation Project aims to cater the load growth in the
Laguna Sector of MERALCO. This will address the single-outage contingency
overloading in other adjacent 230 kV drawdown substations, Sta. Rosa and
Calauan Substation, and the Calauan–Los Baños 115 kV distribution line.
GENERATION ENTRY
• Tuy 500/230 kV S/S (Stage 1)

➢ Status:
Transmission Line:
Substation:
Schedule 2: Disconnect Switch 100%
Schedule 3: Instrument Transformer 100%
➢ To allow the connection of the 2 X 350 MW Coal-Fired Power Plant (CFPP) Project
of St. Raphael Power Generation Corporation (SRPGC) and allow full dispatch of all
generating plants injecting at Calaca Substation.
• Pagbilao 500 kV S/S

➢ ETC – November 2019
➢ Status:
Transmission Line:
Accomplishment
Substation:
Accomplishment
Turnkey Manufacturing in progress.
➢ To develop new 500 kV substation that aims to accommodate the connection of

incoming power plants in Quezon Province.

As of April 2019
74
SYSTEM RELIABILITY
• Tower Structure Upgrading Of Bicol Transmission Facilities

➢ Status:
Construction/Erection Accomplishment
Schedule 1: Naga-Daraga T/L &Naga- 57.77%
Tiwi C T/L
Schedule 2: Daraga-Tiwi A T/L & 60.38%
Naga-Tiwi C T/L
➢ To provide permanent solution to address the limitations of the emergency

restoration that made use of provisional light-weight modular tower and steel pole
structures.

As of April 2019
75
SYSTEM RELIABILITY
• CNP 230 kV Backbone Project- Stage 1, GE & SR

➢ Status:
Transmission Lines:
Bacolod-Magalona T/L 100%
Construction/Erection 79.89%
Substation:
Construction/Erection 99%
Note: Remaining Works associated with the T/L Completion
GENERATION ENTRY
• CNP 230 kV Backbone Project - Stage 2 (Cebu 230 kV Substation)

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76
➢ Status:
Transmission Line:
Activities Accomplishment
Transmission Line 80.99%
Note: Awaiting for ERC Approval
➢ To accommodate the entry of Therma Visayas Inc. 300MW Coal Fired Power Plant.
• CNP 230 kV Backbone (Stage 3)

➢ ETC - December 2020
➢ Status:
Phase 1
Transmission Line
Activities Accomplishmen
t
Submarine Cable 55.28%
Reconductoring/Bundling of 138kV T/L 80.99%
Substation
Schedule 1: Power Transformer and 100%
Power Shunt reactor
Schedule 4 Instrument Transformer 96.47%
Securing of LGU
Erection/Construction
permits
Barotac Viejo S/S 3.45% Complete
Phase 2
➢ Status:
Substation:
Schedule 1: Power Transformer and 100%
Power Shunt reactor
Schedule 4 Instrument Transformer 100%
➢ To accommodate the transmission of excess power from Panay and Negros Islands
towards the rest of the Visayas Grid and possibly Luzon Grid.

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LOAD GROWTH
• New Naga (Colon) Substation Project (Remaining Works)

➢ Status:
➢ To upgrade existing substation to meet load growth.
SYSTEM RELIABILITY
• Naga Substation Upgrading Project

➢ Status:
➢ To replace and upgrade the existing antiquated and aging primary and secondary
equipment and device in Naga Substation.
• Cebu – Lapulapu 230kV T/L Project

➢ Status: Substation part – 97.40% complete

As of April 2019
78
• Panitan – Nabas 138 kV T/L Line 2 (2nd Circuit Stringing)
➢ Status - 100% Complete, ready for energization
➢ To provide N-1 contingency along the Panitan-Nabas 138 kV Transmission Line,
thus, improving the reliability of power transmission towards the northwestern part
of Panay.
LOAD GROWTH
• San Carlos – Guihulngan 69 kV Transmission Line Project

➢ Status – 92.09% Complete
➢ This project is intended to boost the power delivery service to accommodate
increasing power demand in the Northeastern part of Negros Island by building a 69
kV loop between Cadiz and Amlan.

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79
SYSTEM RELIABILITY
• Sta. Rita–Quinapondan 69 kV Transmission Line

➢ ETC – November 2018
➢ To provide a more reliable and quality transmission service to Eastern Samar

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80
LOAD GROWTH
• Toril 138kV S/S Project Phase 2

➢ ETC – February 2019
➢ To add substation capacity to provide N-1 contingency.
SYSTEM RELIABILITY
• Butuan-Placer 138 kV Transmission Line Project

➢ ETC - October 2018
➢ Status:
Transmission Line:
Schedule 1: 46km 138kV line Erection 100%
Schedule 1: 48km 138kV line Erection 56.70%
Substation:
➢ To provide N-1 contingency to the existing corridor by installing a second circuit.
• Agus 2 Switchyard Upgrading Project/Rehabilitation Project

➢ ETC - May 2019
➢ Status:
➢ To upgrade the existing antiquated and aging primary and secondary equipment
and devices in Agus 2 Switchyard.
• Sultan Kudarat (Nuling S/S) Capacitor Project

➢ Status – Civil Works: 95.14% Complete
➢ To mitigate the projected low voltage problems in Maguindanao area.
• Tacurong– Kalamansig 69 kV Transmission Line Project

➢ Status: Pre-construction stage – Filed PA application on 5 January 2009
➢ To connect the currently off-grid part of southwestern area in Sultan Kudarat to the
Mindanao Grid.

As of April 2019
81
GENERATION ENTRY
• Balo-i-Kauswagan 230 kV Transmission Line Project (Formerly Balo-i-Kauswagan-Aurora

230 kV Transmission Line - Phase 1)
➢ ETC – April 2018
➢ Status:
Turnkey (Secondary Equipment) 98.70%
➢ To accommodate the grid connection of GNPK’s 600 MW CFPP.
• Kauswagan–Lala 230 kV Transmission Line Project (Formerly Balo-i– Kauswagan–Aurora

230 kV Transmission Line (Phase 2), GE & SR
➢ Status: Pre-Construction Stage
➢ To enhance reliability of power delivery towards Zamboanga Peninsula. This will
also complement the transmission of excess power from Mindanao Grid towards the
Visayas Grid and vice versa.

As of April 2019
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GENERATION ENTRY
• Mindanao 230 kV Transmission Backbone Project

➢ Status:
Transmision Line:

As of April 2019
83
Substation:
Power Transformer & Power Shunt 100%
Reactor
High Voltage Equipment 99.12%
Turnkey of Secondary Equipment & Erection of HV Equipment
Schedule 1: 60.08%
Culaman/Matanao/Toril/Bunawan
Schedule 2: 88.24%
Baloi/Villanueva/Maramag
MINDANAO-VISAYAS INTERCONNECTION PROJECT
The Mindanao-Visayas Interconnection Project was previously known as Visayas-Mindanao

Interconnection Project (VMIP). The change to MVIP aims to indicate the importance and priority
given to Mindanao Grid which has long been isolated. Luzon and the Visayas Grids are already
interconnected since 1998 and with electricity market in operation since 2006 and 2008,
respectively. The name MVIP indicates further support to boost the development of the country’s
electricity market to include the Mindanao Grid.

As of April 2019
84
➢ Status:
▪ Submarine Cable: Checking of Manufacturer’s Drawing
- Slander CTS-Dapitan CTS HVDC
▪ Substation: Checking of Manufacturer’s Drawing

- Dumanjug Converter Station & S/S
- Lala Converter Station & S/S
- Aurora S/S
- Magdugo S/S
▪ Transmission Line:
- Package A: Dumanjug-Magdugo HVAC T/L – Checking of manufacturer’s Drawing
- Package B: Kauswagan-Lala HVAC T/L & Aurora-Lala HVAC T/L – For issuance of
Notice to Proceed
- Package C: Dumanjug-Santander HVDC OHTL & Lala-Dapitan HVDC OHTL –
Checking of Manufacturer’s Drawing
- Package D: Alegria-Dumanjug Electrode Line & Kolambugan-Lala Electrode Line -
Checking of Manufacturer’s Drawing.
- Package E: Magdugo-Cebu 230kV T/L & Talavera-Magdugo 230kV T/L - Checking of
Manufacturer’s Drawing.
I. Distribution Infrastructure Projects
ERC-Approved Capital Expenditure (CAPEX) Projects
Section 43 (f) of the Republic Act No. 9136, otherwise known as the EPIRA, provides that
any significant operating costs or projects investment of DU which shall become part of the
rate base shall be subject to verification by the ERC to ensure that the contracting and
procurement of the equipment, assets and services have been subjected to transparent
and accepted industry procurement and purchasing practices to protect the public interest.
On the other hand, the accompanying application for authority to secure loan from the NEA
in connection with the funding source for the proposed projects, is being filed pursuant to
Section 20 e) of Commonwealth Act No. 146 otherwise known as the Public Service Act,
which requires every public service to secure the approval and authorization of the
Commission for issuance of any bonds or other evidence of indebtedness payable in more
than one year.
For this report period, the ERC granted approval to the Capital Expenditure (CAPEX)
Projects application filed by Palawan Electric Cooperative, Inc. Details of the project is
shown in Annex 3.

As of April 2019
85
VII. TOTAL ELECTRIFICATION
Under Sec. 2(a) of the EPIRA 2001, it is the declared policy of the State to ensure and accelerate
the total electrification of the country. Said law also mandates the DUs to provide universal service
in their franchise areas including unviable areas at a reasonable time. The Government has
implemented a massive and focused action to increase and accelerate access to electricity
services by the country’s unenergized communities and households while contributing to poverty
alleviation. Previous programs and activities of the Government resulted to almost 100% barangay
electrification, with only six (6) barangays out of the total of 41,974 potential barangays remaining
as unenergized due to geographical and security reasons. The current program of the Government
aims to attain 90% household electrification by 2017.
1. Status of Household Electrification
For the report period, the household electrification level of the country is estimated at 96.12%
based on the latest status of energization provided by NEA and other LGUOUs and PIOUs as of
April 2019. Said level corresponds to 22.1 million energized HHs out of 22.98 million identified and
targeted HH population based from the 2015 Census of the Philippine Statistics Authority (PSA).
Table 43. Household Electrification Level

Household
Distribution Utility Potential Underserved
Served %
Households (Potential-Served)
Electric
14,337,216 12,843,313 1,493,903 89,58%
Cooperatives
MERALCO 6,475,870 7,171,805 - 100.00%
Other DUs 2,171,316 2,078,664 92,652 95.73%
Total 22,985,402 22,093,782 1,586,555 96.12%
Source: DOE
2. On-going and Planned Programs and Activities
• Grid Electrifrication
a. NEA’s Expanded Sitio Electrification Program (Expanded SEP)
This refers to NEA’s program of attaining 100% sitio electrification in the country while
providing house wiring and connection assistance to eligible HHs. For the year 2018, NEA
managed to complete and energized a total of 1,984 sitios with total project cost of PhP2.3
billion based on NEA’s report on the initiatives and activities on rural electrification and NEA
intervention on ailing ECs.
b. NEA’s Barangay Line Enhancement Program (BLEP)
This aims to rehabilitate those barangays previously energized by off-grid solutions but
deemed unsustainable. To enhance the program, it shall only cover those off-grid
barangays that are already economically feasible for distribution line extension. NEA shall
assist in recovering the existing off-grid electrification facilities still owned by the
Government for reconfiguration and transfer to other far-flung areas that can be best
served by off-gid solutions.
For year 2018, no funding were allocated for the BLEP Projects despite the remaining
target of 101 barangays.

As of April 2019
86
c. Rationalization of Implementation of Energy Regulations 1-94 Electrification Funds
Under this concept, DOE shall effectively administer ER 1-94 EF to support the total
electrification of the identified host barangays and municipalities consistent with the policies
set forth under the guidelines. This aims of bringing electricity to all households in the
communities hosting the power generating facilities and/or energy resources following the
radiating order, prioritizing the host cities/municipalities project proposal for DOE’s funding
approval under the ER 1-94 Electrification Fund.
On the 3rd Quarter of CY2018, a major development on the provision of financial benefits to
Host Communities has been made. On the previous scheme, the one-centavo per kilowatt-
hour sale of the generations companies was remitted to a trust accounts established by
generations companies which are administered by DOE. On 23 August 2018, DC2018-08-
0021 “Providing for the Amendments to Rule 29 Part (A) of the Implementing Rules and
Regulations of Republic Act No. 9136” was issued were in the financial benefits will directly
remitted to the Host Communities to ensure that the benefits may be utilized immediately to
accelerate the socio-economic development and immediate implementation of project of
Host Communities.
For the period of December 2018 to April 2019, twenty-five (25) DLF projects were
completed and inspected amounting to PhP45.5 Million and twenty-one (21) RWMHEEF
projects were completed and inspected amounting to PhP46 Million. For EF, three (3)
electrification projects were completed and inspected amounting to PhP11 Million.
No. of Total Approved

Fund Type
Projects Project Cost
Electrification Fund 3 11 M
Development and Livelihood Fund 25 45.5 M

Reforestation, Watershed Management,
Health and/or Environment Enhancement 21 46 M
Fund
d. Nationwide Intensification of Household Electrification (NIHE) Program
Approved in 2014, the NIHE project is 3-year program that aims to implement measures
and grant assistance to intensify household electrification. Under NIHE, DUs are
encouraged to adopt more pro-active and innovative marketing strategies to fast-track
electrification of the remaining unelectrified households both in rural and urban areas of the
country. Technical assistance to be undertaken by the NIHE Project include streamlining of
connection process, LGU-DU partnership for assistance in connection permits, and policy
support to address the issue of slum electrification and flying connections, among others.
For the 2015 NIHE Program, 21,621 household are reported energized out of 30,512
approved and allocated with House-wiring and KWH meter subsidy as of 15 March 2019.
For the 2016 NIHE Program, 56,920 household are reported energized out of 116,592
approved and allocated with House-wiring and KWH meter Subsidy.
For 2017 NIHE, 19,828 household are reported energized out of 115,216 approved and
allocated with House-wiring and KWH meter subsidy as of 15 March 2019.
For 2018 NIHE, a total of 81,770 households were approved as beneficiaries of the
program.

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87
• Off-Grid Electrification
The access to Sustainable Energy Program aims to support the Government of the Philippines
in achieving inclusive growth through access to electricity and energy services by greater
number of Filipinos as specified under the Philippine Development Plan and DOE’s Household
Electrification Development Plan.
EU Provided a grant amounting to EUR60 million, which was signed and made effective on
December 15, 2015. The total program cost was PhP4.89 billion consisting of PhP2.82 billion
EU Grant and a GOP Counterpart of PhP2.03 billion (broken down as PhP364.99 million as
national counterpart; PhP18.87 million as LGU Contribution; and PhP1,646 million private
sector contribution).
PV Mainstreaming is the program of the Government and part of Component 2: Investment

Support/Grants. In this off grid electrification scheme, the ECs shall install operates and
maintain 50-watt peak solar home systems to remote areas in electric cooperatives franchise
area as a new business line. Over project implementation period ASEP PVM aims to
accomplish/ energize 40,500 potential households and 11,113 households under the GOP
Counterpart.4
ASEP GOP 2018

Distribution
No. of HHs Total Amount (Php) Status
Utility
Fund Released Feb. 2019
SULECO 2,575 60,512,500.00
Delivery May 2019
Fund Released Feb. 2019
ILECO II 706 16,591,000.00
Delivery May 2019
Awaiting release of fund
ZAMSURECO I 1,129 26,531,500.00
Delivery May 2019
TOTAL 4,410 103,635,000.00
ASEP GOP 2019

Distribution
No. of HHs Total Amount (Php) Status
Utility
BISELCO 1,129 26,531,500.00 For Endorsement for Approval
TOTAL 1,129 26,531,500.00
3. Qualified Third Party (QTP) Approach
With the issuance of the Department Order No. 2018-05-0010 in May 2018, “Creation of a Task
Force to Ensure Access to Electricity for the Communities that Remain Unserved and
Underserved by Distribution Utilities,” all ECs were required to submit their Electrification Plan
to include areas that are proposed for alternative service providers or QTPs and National
Power Corporation’s Small Power Utilities Group (NPC-SPUG). Based on this submission, the
DOE and NEA shall conduct site verification to determine which among the proposed sites
have potential for private sector investment. Thereafter will be the posting of these sites inviting
potential investors to provide electricity services on the same through a competitive selection
process to be undertaken by the DOE.
Meanwhile, the DOE issued Department Circular No. 2019-01-0001 “Prescribing the Omnibus
Guidelines on Enhancing Off-grid Power Development and Operation,” in 25 January 2019.
These Omnibus Guidelines apply to entities such as the QTPs that are engaged in the
provision of electricity services in offgrid areas. Apart from ensuring power reliability, stability,
efficiency and accountability in electricity services in off-grid areas, the Circular also indicated
the need to rationalize the use of the universal charge for missionary electrification, in which

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88
the supplementary Circular to this effect will be issued sometime third quarter of 2019. This is
foreseen that such rationalization policy will impact on the attractiveness of the QTP program
for private sector investment.
Following are the updates on the QTP Program:
a. Rio Tuba QTP Project in Bataraza, Palawan
PowerSource Philippines, Inc. (PSPI) continues to operate outstandingly as QTP in

Barangay Rio Tuba with a Subsidized Approved Retail Rate of PHP8.50/kWh. To date,
overall installed capacity is 1.60MW (3x350 kW + 1x500 kW + 1x50kW gensets) with
average system loss of 10.5%
For the reporting period, there are 1,893 households connected to the Rio Tuba micro-grid.
PSPI continues to coordinate with the LGU to address connection concerns of the
remaining un-electrified households such as zonal restrictions and absence of
documentation on land/house ownership.
Currently, PSPI undertakes feasibility study for the hybridization of its existing diesel
generating sets with solar PV with the intention of extending their electricity services in the
nearby barangay of Riotuba.
b. Malapascua QTP Project in Malapascua Island, Logon, DaanBantayan, Cebu
For the reporting period, there are now 1,031 households, 67 commercials (resorts and
diving facilities) and 16 juridical connected to the mini-grid system. PSPI is looking at
connecting the remaining unconnected 116 households in Malapascua. The average kWh
sales 236,000 per month and with the average system loss of 6.66%.
PSPI exerts efforts to address the complaints from the households on the “noise pollution”
brought about by the generating sets and improve on their cooling system.
c. Liminangcong, Taytay, Palawan
Residents of Bgy. Liminangcong is enjoying 24 hours of electricity service provided by

PSPI. The installed capacity in the coastal barangay of Liminangcong is 1.20mW (3x225 +
3x176 kW gensets) with substation 2x300kVA. Upgrading and extension of about 2km line
of Purok Bancoro was completed in January 2018.
Currently, 839 households, 44 commercials and 21 juridical are connected to Liminangcong

microrgid system. PSPI is still searching for ways reach more households in Liminangcong.
The average system loss for November 2018 to December 2019 is 7.12%. The microgrid
has average kWh sales of 102,000 for the given period. PSPI is charging PHP8.50/kWh to
all its customers.
ERC has scheduled in April 25, 2019, an expository hearing for PSPI’s application for line
extension from Brgy. Liminangcong to Brgy. Tumbod.
d. Brgys. Candawaga and Culasian in Rizal, Palawan
PSPI is now operating 24 hours with an approved Subsidized Approved Retail Rate of
PHP9.9082/Kwh. The installed capacity in the coastal barangay of Candawaga-Culasian is
135kW (1x45kW + 1x90kW gensets) with substation 3x167kVA. Average monthly electricity
sales is 34,650kWh while average system loss is 1.53%.

As of April 2019
89
As of now, there are 836 households connected to Candawaga-Culasian system. The team
is currently working on upgrading of the existing line and possible extension of distribution
lines to capture the unserved market considering the growing demand in the area and
nearby barangay.
e. Brgy. Cabayugan , Puerto Princesa City, Palawan
SREC will operate a hybrid system 1.4MW Solar, 1.2MW Diesel genset and 2.3MWh to
provide electricity to about 791 households in Brgy. Cabayugan. 562 consumers pending
electrical wiring in their premises for connection to the grid. 88 consumers consisting of
both commercial and residential had completed the wiring and are ready for connection.
ERC approved two-tier tariff of 12PHP/kWh for residential and public buildings and
15PHP/kWh for commercial establishments.
As of the reporting period, SREC has already completed installation of the solar PV array
and powerhouse for the diesel generating sets and energy management system. On the
distribution systems, electrical posts were erected while cabling is ongoing. Overall plant
test and commissioning is scheduled on the first week of May 2019.
SREC continues checking on the residential and commercial consumers’ compliance with
the LGU’s requirement for the eventual connections.
Below is the summary status of the QTP Projects.
PROJECT TECHNOLOGY TARGET PROPONENT STATUS

LOCATION HHs
Rio Tuba, 1.05 MW Diesel - 1,893+ PSPI Operational, Authority to
Bataraza, Biomass Operate (ATO) issued by
Palawan ERC , 2010
Malapascua, 750 kW Diesel 1,227 PSPI Operational, Permanent
Daan- ATO issued by ERC, 2016
Bantayan,
Cebu
Sabang, Hybrid : 1.4 MW 791 SREC Authority to Operate (ATO)
Puerto Solar + 1.2 MW issued by ERC
Princesa City, Diesel + 2.3 MWh 05 October 2016
Palawan Battery
Candawaga & 268 kW Diesel 998 PSPI Interim Relief , April 2018
Culasian,
Rizal, Palawan
Balut Island, 690 kW Diesel 3570 PSPI Interim Relief , April 2018
Saranggani,
Davao
Occidental
Liminangcong, 108 kW Diesel 1,200 PSPI Provisional ATO issued by
Taytay, ERC, 2016
Palawan
Brgy. Tumbod, Line extension from 395 PSPI For expository hearing with
Taytay, Brgy. Liminangcong ERC, April 2019
Palawan
Lahuy Island, Lahuy Island: 246 Lahuy: 550 FPIEC Endorsed to ERC, Jan 2019
Haponan kWp Solar + 400 kW HHs
Island in Diesel + 79kWh
Municipality of Battery Haponan: 87
Caramoan and Haponan Island: HHs
Quinasalag 51.4 kWp Solar + 100
Island in the kW Diesel + 19 kWh Quinalasag:
Municipality of Battery 705 HHs
Garchitorena,
Camarines Sur Quinalasag Island:
331 kWp Solar + 500
kW Diesel + 80kWh
Battery
As of April 2019
90
PROJECT TECHNOLOGY TARGET PROPONENT STATUS
LOCATION HHs
Bgy. Hybrid: 132.8 kWp 331 PSPI Endorsed to ERC, March
Poblacion, Solar + 144 kW 2019
Dumaran, Diesel + 351.1 kWh
Palawan Battery
Bgy. 216 kW Diesel 560 PSPI Endorsed to ERC, March
Manamoc, 2019
Cuyo, Palawan
Bgy. Port Hybrid: 200 kWp 900 PSPI Endorsed to ERC, March
Barton, San Solar + 609.5 kW 2019
Vicente, Diesel + 200 kWh
Palawan Battery

As of April 2019
91
VIII. PROMOTION OF RURAL ELECTRIFICATION
Pursuant to Section 58 of the EPIRA, as additional mandate, the National Electrification

Administration (NEA) shall develop and implement programs in strengthening the technical
capability and financial viability of the rural ECs as electric utilities and to prepare the said ECs to
operate and compete in deregulated electricity market, specifically in environment open access and
retail wheeling.
1. Financial Assistance
As of 30 April 2019, NEA released a total of PhP2,353.5 Million loans to 64 ECs with the
following break down:
Amount
Particulars EC Grantees (PhP in
Million)
Short-term Credit Facility 1 Quezon I Electric Cooperative, Inc. (QUEZELCO I) 20
(average)
Subtotal 20
Stand-by Credit Facility 2 Zamboanga City Electric Cooperative, Inc. 145
(average) (ZAMCELCO)
Subtotal 145
3 Ilocos Norte Electric Cooperative, Inc. (INEC) 146.2
4 Ilocos Sur Electric Cooperative, Inc. (ISECO) 37
5 Batanes Electric Cooperative, Inc. (BATANELCO) 3
6 Cagayan II Electric Cooperative, Inc. (CAGELCO II) 95
7 Aurora Electric Cooperative, Inc. (AURELCO) 61
8 Tarlac I Electric Cooperative, Inc. (TARELCO I) 53.5
9 Nueva Ecija II Electric Cooperative, Inc. (NEECO II) 61
(Area 1)
10 Zambales I Electric Cooperative, Inc. (ZAMECO I) 11
11 Zambales II Electric Cooperative, Inc. (ZAMECO II) 25
12 First Laguna Electric Cooperative, Inc. (FLECO) 28.5
13 Tablas Island Electric Cooperative, Inc. (TIELCO) 7
14 Quezon I Electric Cooperative, Inc. (QUEZELCO I) 39
15 Quezon II Electric Cooperative, Inc. QUEZELCO II 8
16 Lubang Electric Cooperative, Inc. (LUBELCO) 8
17 Occidental Mindoro Electric Cooperative, Inc. 13.6
(OMECO)
Capital Projects 18 Oriental Mindoro Electric Cooperative, Inc. 7
(ORMECO)
19 Romblon Electric Cooperative, Inc. (ROMELCO) 5
20 Camarines Norte Electric Cooperative, Inc. 7
(CANORECO)
21 Camarines Sur I Electric Cooperative, Inc. 163.4
(CASURECO I)
22 Camarines Sur III Electric Cooperative, Inc. 40.2
(CASURECO III)
23 Sorsogon I Electric Cooperative, Inc. (SORECO I) 45.2
24 First Catanduanes Electric Cooperative, Inc. 5
(FICELCO)
25 Masbate Electric Cooperative, Inc. (MASELCO) 4
26 Ticao Island Electric Cooperative, Inc. (TISELCO) 14.7
27 Iloilo I Electric Cooperative, Inc. (ILECO I) 29
28 Iloilo II Electric Cooperative, Inc. (ILECO II) 24
29 Guimaras Electric Cooperative, Inc. (GUIMELCO) 50
30 Central Negros Electric Cooperative, Inc. (CENECO) 8

As of April 2019
92
Amount
Million)
31 Bohol II Electric Cooperative, Inc. (BOHECO II) 10
32 Don Orestes Romualdez Electric Cooperative, Inc. 22
(DORELCO)
33 Leyte III Electric Cooperative, Inc. (LEYECO III) 6
34 Leyte IV Electric Cooperative, Inc. (LEYECO IV) 11
35 Southern Leyte Electric Cooperative (SOLECO) 12
36 Zamboanga City Electric Cooperative, Inc. 23
(ZANECO)
37 Zamboanga del Sur I Electric Cooperative, Inc. 18
(ZAMSURECO I)
38 Misamis Oriental I Electric Cooperative, Inc. 13
(MORESCO I)
39 Misamis Oriental II Electric Cooperative, Inc. 7
(MORESCO II)
40 First Bukidnon Electric Cooperative, Inc. (FIBECO) 14
41 Davao Oriental Electric Cooperative, Inc. (DORECO) 36
42 Davao Del Norte Electric Cooperative, Inc . 21
(DANECO)
43 Davao del Sur Electric Cooperative, Inc. 34
(DASURECO)
44 Cotabato Electric Cooperative, Inc (COTELCO) 11
45 South Cotabato I Electric Cooperative, Inc. 31
(SOCOTECO I)
46 Sultan Kudara\t Electric Cooperative, Inc. 4
(SUKELCO)
47 Tawi-Tawi Electric Cooperative, Inc. (TAWELCO) 10
48 Siasi Electric Cooperative, Inc. (SIASELCO) 12
49 Agusan del Norte Electric Cooperative, Inc. (ANECO) 22
50 Agusan del Sur Electric Cooperative, Inc. (ASELCO) 31
51 Siargao Electric Cooperative Inc. (SIARELCO) 34
52 Zamboanga del Norte Electric Cooperative, Inc. 91.8
(ZANECO)
53 Bukidnon Second Electric Cooperative, Inc. 17.3
(BUSECO)
54 Cotabato Electric Cooperative, Inc. – PPALMA 13.3
(COTELCO-PPALMA)
55 Sulu Electric Cooperative, Inc. (SULECO) 5
56 Dinagat Island Electric Cooperative, Inc. (DIELCO) 45.3
57 Central Pangasinan Electric Cooperative, Inc. 45.7
(CENPELCO)
58 Davao Del Norte Electric Cooperative, Inc. 20.1
(DANECO)
59 Capiz Electric Cooperative (CAPELCO) 10
60 Agusan del Sur Electric Cooperative, Inc. (ASELCO) 7.7
61 ABRA ELECTRIC COOPERATIVE, INC. (ABRECO) 10
Subtotal 1,647.5
Modular Generator 52 Misamis Oriental I Electric Cooperative, Inc. 39
(MORESCO I)
(MORESCO II)
54 Sultan Kudarat Electric Cooperative, Inc. 66
(SUKELCO)
55 Agusan del Norte Electric Cooperative, Inc. (ANECO) 19
Subtotal 168
56 Abra Electric Cooperative, Inc. (ABRECO) 18
Working Capital 57 Nueva Ecija II Electric Cooperative, Inc. (NEECO II) 30
(Area 2)
As of April 2019
93
Amount
Million)
58 Occidental Mindoro Electric Cooperative, Inc. 58
(OMECO)
59 Marinduque Electric Cooperative, Inc. (MARELCO) 67
60 Sorsogon I Electric Cooperative, Inc. (SORECO I) 29
61 Aklan Electric Cooperative, Inc. (AKELCO) 65
62 Negros Oriental I Electric Cooperative, Inc. 20
(NORECO I)
63 Camotes Electric Cooperative, Inc. (CELCO) 7
(MORESCO II)
Subtotal 373
TOTAL AMOUNT 2,353.5
Further to this, NEA was able to release PhP98 Million calamity loans to six (6) ECs affected
by typhoons.
ECs Amount
(PhP in Million)
Biliran Electric Cooperative, Inc. (BILECO) 12

Isabela II Electric Cooperative, Inc. (ISELCO II) 39
First Bukidnon Electric Cooperative,Inc. (FIBECO) 10
Calamity
Loan Lanao del Norte Electric Cooperative, Inc. (LANECO) 17
Lanao del Sur Electric Cooperative, Inc. (LASURECO) 12
Surigao del Norte Electric Cooperative, Inc. (SURNECO) 8
TOTAL AMOUNT 98
2. Competency Seminars and Training Programs for EC Personnel
In increasing the learning curve of NEA and ECs through competency programs for EC
personnel, NEA conducted the following activities accordingly:
Date Title of Training/Seminar No. of

Participants
November 5 – 9, 2018 Cooperative Management Course I & 88
Ill
November 6 – 9, 2018 Capacity Building Program for 16
Prospective Lead Assessors
November 12–17, 2018 Seminar-Workshop on Meter Reading, 96
Billing, Connection and Disconnection
Enhancement
November 13 -15, 2018 Advanced Leadership Training 34
November 19 – 20, 2018 Gender Sensitivity Training for Energy 42
Sector
November 19 – 24, 2018 Line Enhancement Course {ISELCO 36
II)
December 11-14, 2018 Quality Customer Relations 117
December 11-15 , 2018 Seminar-Workshop on Meter Reading, 81
Billing, Connection and Disconnection
Enhancement
December 17 – 18, 2018 Gender Sensitivity Training for Energy 41
Sector
January 22 - January 25, 2019 Basic Occupational Safety and Health 21
(BOSH) Training Course
As of April 2019
94
Date Title of Training/Seminar No. of
Participants
January 29 - January 31, 2019 Seminar-Workshop on Meter Reading, 40
Billing and Collection and
Disconnection Enhancement
(MRBCD)
February 7 - February 8, 2019 Seminar-Workshop on Work Attitude 59
and Values Enhancement at
Workplace (WAVE-W) for EC
Employees - Batch 3
February 12 - February 13, 2019 WAVE-W for EC Employees - Batch 4 36
February 14 - February 15, 2019 WAVE-W for EC Employees - Batch 5 46
February 26 - February 28, 2019 Personality Development Training 50
March 5 - March 6, 2019 Seminar-Workshop on Work Attitude 66
Employees - ILECO III Batch 1
March 7 - March 8, 2019 Seminar-Workshop on Work Attitude 65
Employees - ILECO III Batch 2
March 12 - March 15, 2019 Essentials and Practice of Internal 38
Auditing Batch 1
March 19 - March 22, 2019 Essentials and Practice of Internal 51
Auditing Batch 2
3. Approved Policies/Guidelines
In accordance with its expanded powers, functions and privileges under Section 5 of
Republic Act 10531 and Section 5 of the IRR, the NEA has formulated several policies and
guidelines geared towards the fulfillment of NEA's mandate and to provide assistance and
guidance to the ECs in the performance of their franchise obligations as distribution utilities:
a. Revised Salary Scale for Electric Cooperative General Managers;

b. Proposed Dissemination of Revised Implementing Rules and Regulation (IRR) of
NEA's Policy in the conduct of Competitive Selection Process CSP) of the Electric
Cooperatives' Power Supply Agreement (PSA) as approved by the Department of
Energy (DOE);
c. Revised Policy on Retirement Plan for General Managers of Electric Cooperatives
(3rd Revision);
d. Policy Guidelines on the Conduct of Examination and Interview for Applicant to the
Position of General Managers of Electric Cooperatives;
e. Policy Amending NEA Memorandum No. 2015-007 on "Revised Guidelines on
Benefits, Allowances and Incentives of Electric Cooperative Officials and
Employees";
f. Policy on Assignment of Acting General Manager and/or Project Supervisor to
Electric Cooperatives;
g. Revised Guidelines for the Selection and Appointment of NEA Representative to the
Electric Cooperative Board of Directors; and
h. Policy Guidelines on the Implementation of Strategized Electrification Program
(STEP).

As of April 2019
95
ANNEXES

As of April 2019
96
Annex 1. TransCo Inspection Report Based on Concession Agreement (November 2018 to April 2019)
Inspection
No. Location Name of Project/ Transmission Facilities Inspection Date
Report No.
LUZON
SLR-MA-18-55 South Luzon South Luzon MTD-A Office in Calamba, November 5-9, 2018
1
Laguna
SLR-D1-18-56 District 1 South Luzon Dasmariñas, Biñan, Muntinlupa, Las Piñas, November 5-9, 2018
Batangas, Salong, Ternate, Calaca & Rosario
2
Substations, Bolbok and Taal Load End
Substation
Hermosa, Limay, Olongapo, Botolan, SBMA &
3 NLR-D5-18-57 District 5 North Luzon Subic Substations and BCCPP Switching November 5-9, 2018
Station
National Control Center & Luzon System
4 NLR-NC-18-58 North Luzon Nov. 19-20, 23, 27-28, 2018
Operations
Southern Tagalog Area Control Center,
5 SLR-AC-18-62 South Luzon Tamayo & Haligue Silangan (Dela Paz) December 3-7, 2018
Repeater Stations
San Manuel, Nagsaag, Bolo,Labrador, and
6 NLR-D3-19-04 District 3 North Luzon January 7-11, 2019
Balingueo Substations
San Jose, Malaya, Quezon,Doña Imelda,
7 NLR-D7-19-05 District 7 North Luzon Taytay Substations, Angat & San Mateo January 21-25, 2019
Repeater Stations, and Angat Power House
8 NLR-MB-19-08 North Luzon North Luzon MTD-B Office in Mexico February 4-8, 2019
Cuyapo, San Isidro, and Dasol Repeater
9 NLR-RS-19-10 North Luzon February 4-8, 2019
Stations
Santiago, Tuguegarao, Gamu& Bayombong
10 NLR-D4-19-11 District 4 North Luzon Substations and Ilagan & Lagawe Load End February 18-22, 2019
Substations
11 NLR-D7-19-17 District 7 North Luzon San Jose, Taytay & Malaya 230 kV T/L March 4-8, 2019
Tyabas, Gumaca, Lumban, San Juan, Caliraya
and Bay Substations, Famy, Calamba, Los
12 SLR-D2-19-20 District 2 South Luzon March 12-22, 2019
Banos, Pitogo, Mulanay and Lopez LES and
Maunong RS
Camalig, Bocalbocalan & Manito Repeater
13 SLR-RS-19-23 South Luzon Apr. 22-26, 2019
Stations
North Luzon MTD-A Office in San Fernando
14 NLR-MA-19-25 North Luzon Apr. 22-26, 2019
City, La Union
VISAYAS
Negros Area Control Center & Murcia
1 VIS-AC-18-59 Visayas December 3-7, 2018
Repeater Station
Leyte Area Control Center, Matag-ob & Isabel
2 VIS-AC-19-01 Visayas January 7-11, 2019
Repeater Stations
Bohol ACC, Buenavista & Loon Repeater
3 VIS-AC-19-02 Visayas January 7-11, 2019
Stations
Sta. Barbara, Barotac Viejo, Dingle, Panit-an,
Nabas, Concepcion & San Jose Substations,
4 VIS-D4-19-06 District 4 Visayas January 21-25, 2019
San Juan Cable Terminal Station and Boracay
Load-End Station
Iligan Area Control Center and Manticao &
5 VIS-AC-19-07 Visayas February 4-8, 2019
Talacogon Repeater Stations
Corella, Tagbilaran, & Ubay Substations,
West Poblacion & Trinidad Capacitor Bank
6 VIS-D2-19-09 District 2 Visayas Stations, Garcia Hernandez Load End February 4-8, 2019
Station and C.P. Garcia Cable Terminal
Station
Borbon (Muagao), Poro (Camotes) and
7 VIS-RS-19-12 Visayas February 18-22, 2019
Compostela Repeater Stations
Visayas Maintenance and Testing Division – A
8 VIS-MA-19-14 Visayas February 18-22, 2019
(MTD-A) Office in Talamban, Cebu City
Cebu, Naga, Colon, Quiot, Toledo, Calong-
Calong, Campostela & Daanbantayan SS,
9 VIS-D2-19-16 District 2 Visayas Mandaue & Lapu-Lapu GIS, Pajo, Medellin, March 4-8, 2019
Lugo, Danao & Sibonga LES, and
Daanbantayan & Sambaoan CTS
10 VIS-D2-19-18 District 2 Visayas Campostela-Daanbantayan 230 kVT/L March 18-22, 2019
Visayas System Operations, Minglanilla
11 VIS-RC-19-21 Visayas April 1-5, 2019
(Majic) & Babag (Busay) Repeater Stations
Bacolod, Cadiz, Kabankalan, Sipalay, Amlan,
Mabinay S/S, Victorias Capacitor Bank Station
12 VIS-D3-19-22 District 3 Visayas April 1-5, 2019
and E. B. Magalona, Pondol Cable Terminal
Stations

As of April 2019
97
Inspection
No. Location Name of Project/ Transmission Facilities Inspection Date
Report No.
San Carlos - Guihulngan 69 kV Transmission
13 VIS-PR-19-03 Visayas April 2-5, 2019
Line Project
MINDANAO
Zamboanga ACC, Tumaga (Lunzuran),
1 MIN-AC-18-60 Mindanao December 3-7, 2018
Sangali and Mercedes Repeater Station
2 MIN-AC-18-61 Mindanao Butuan ACC and Mainit Repeater Station December 3-7, 2018
Iligan, Balo-i, Agus 6/7 & Lugait Substations
3 MIN-D2-19-03 District 2 Mindanao January 7-11, 2019
and Agus 5 HEP & Switchyard
Aurora-Polanco 138 kV Transmission Line
4 MIN-PR-19-01 Mindanao January 22-25, 2019
Project
General Santos, Tacurong, Kidapawan &
5 MIN-D6-19-13 District 6 Mindanao February 18-22, 2019
Sultan Kudarat Substations
6 MIN-PR-19-02 Mindanao Sultan Kudarat Substation in Maguindanao February 20-22, 2019
7 MIN-RS-19-15 Mindanao Catarman & Gingoog Repeater Sations March 4-8, 2019
Davao, Culaman, Matanao, Nabunturan,
8 MIN-D5-19-19 District 5 Mindanao March 18-22, 2019
Maco, Bunawan, and Toril Substations
Cagayan De Oro, Opol, Tagoloan, Jasaan,
9 MIN-D3-19-24 District 3 Mindanao April 22-26, 2019
Villanueva Maramag and Kibawe Substations
Source: Transco

As of April 2019
98
Annex 2. NGCP Related Petitions to ERC as of April 2019
DECISION/CASE NO./ DATE OF FILING NATURE OF PETITION GROUNDS FOR FILING STATUS
ERC Case No. 2019-022 RC/March 14, 2019 Application for the Approval of the Palawan - 1. Immediately ISSUE an Order Awaiting ERC Order/Notice of Hearing
Mindoro Interconnection Project (Stage 1) provisionally authorizing the
implementation of Palawan-Mindoro
Interconnection Project-Stage 1; and
2. APPROVE, after notice and hearing,
the Application for the implementation of
Palawan-Mindoro Interconnection
Project-Stage 1.
ERC Case No. 2019-016 RC/ February 22, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional As per ERC Order dated 4 April 2019, the
2019 Services Procurement Agreement Between authority to implement the subject ASPA Commission set hearing for determination of
the National Grid Corporation of the executed on 14 January 2019; and compliance with the jurisdictional
Philippines and SN Aboitiz Power Magat Inc. 2. APPROVE, after notice and hearing, the requirements, expository presentation, pre-
subject ASPA. trial conference, and presentation of evidence
on 22 May 2019, 10:00 AM, at the Mango
Suites City Road, Brgy. Calao East, Santiago
City.
ERC Case No. 2019-015 RC/ February 22, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional As per ERC Order dated 12 March 2019, the
Philippines and SN Aboitiz Power - Benguet 2. APPROVE, after notice and hearing, the requirements, expository Presentation, pre-
Inc. (for Binga). subject ASPA. trial conference, and presentation of evidence
on 29 May 2019 (Wednesday), at ten o'clock
in the morning (02:00 P.M.), at Azalea
Residences 7 Leonard Wood Road,Baguio
City.
ERC Case No. 2019-014 RC/ February 22, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional As per ERC Order dated 12 March 2019, the
Philippines and SN Aboitiz Power - Benguet 2. APPROVE, after notice and hearing, the requirements, expository presentation, pre-
Inc. (for Ambuklao). subject ASPA. trial conference, and presentation of evidence
on 29 May 2019 (Wednesday), at ten o'clock
in the morning (10:00 A.M.), at Azalea
Residences 7 Leonard Wood Road,Baguio
City.
ERC Case No. 2019-011RC/ February 14, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional Awaiting ERC Order/Notice of hearing
2019 Services Procurement Agreement Between authority to implement the subject ASPA
the National Grid Corporation of the executed on 18 December 2018; and
Philippines and SPC Power Corporation. 2. APPROVE, after notice and hearing, the
subject ASPA.
ERC Case No. 2018-120RC/ December 19, In the Matter of the Application for Approval of 1. Immediately ISSUE a provisional Provisionally Approved per ERC Order dated
2018 the Ancillary Services Procurement authority to implement the subject ASPA 26 February 2019.
Agreement Between the National Grid executed on 20 November 2018; and
Corporation of the Philippines (NGCP) and 2. APPROVE, after notice and hearing, the
SPC Island Power Corporation (SIPC) (Filed subject ASPA.
December 19, 2018)

As of April 2019
99
ERC Case No. 2018-117RC/ December 19, Application of the National Grid Corporation of 1. DECLARE Severe Tropical Storm Urduja Pursuant to ERC Order dated 16 January
2018 the Philippines for the Approval of Force in the Visayas, Typhoon Vinta in 2019 the Commission conducted hearings on
Majeure (FM) Event Regulated FM Pass Mindanao, Tropical Storm Basyang in the following dates and venue:
Through for Severe Tropical Storm Urduja in the Visayas and Mindanao, and flash
the Visayas, Typhoon Vinta in Mindanao, flood in Minclanao as Force Majeure • Feb. 21, 2019 – Jurisdictional and
Tropical Storm Basyang in the Visayas and Events (FME); Expository Presentation at ERC Pasig
Mindanao, and Flash Flood in Mindanao in 2. Immediately GRANT PROVISIONAL • Feb. 28, 2019 – Expository and Pre-Trial
Accordance with the Rules for Setting APPROVAL to implement and bill the Conference at ERC Visayas Field Office.
Transmission Wheeling Rates following FM Pass-Through Amounts to • March 07, 2019 – Pre-Trial Conference
Visayas and Mindanao customers and Evidentiary at ERC Mindanao Field
starting January 2019 billing month to Office in Davao.
December 2020 billing month or until
such time that the amount incurred is
fully recovered;
3. APPROVE the FME CAPEX/OPEX

amounting to Sixty-Three Million Eight
Hundred Seventy Thousand Seven
Hundred Eighty-Six Pesos and 10/100
(PhP63,870,786.10) incurred by NGCP
for the repair, restoration, and
rehabilitation of the damaged
transmission assets and other related
facilities due to Severe Tropical Storm
Urduja in the Visayas, Typhoon Vinta in
Mindanao, Tropical Storm Basyang in
the Visayas and Mindanao, and flash
flood in Mindanao;
4. APPROVE, after due notice and hearing,
the proposed FM Pass Through Amount
to be collected from the Visayas and
Mindanao customers starting January
2019 billing month to December 2020
billing month or until such time that the
amount incurred is fully recovered;
5. APPROVE and ALLOW the recovery of
the Net Fixed Asset Value of the
facilities damaged by Severe Tropical
Storm Urduja in the Visayas, Typhoon
Vinta in Mindanao, Tropical Storm
Basyang in the Visayas and Mindanao,
and flash flood in Mindanao, amounting
to Two Million Fourteen Thousand Five
Hundred Sixty-Five and 43/100
(PhP2,014,565.43). given that it would
have been fully recovered by NGCP if
these transmission assets and other
related facilities have not been damaged
or destroyed by the Subject Force

As of April 2019
100
Majeure Events; and
6. EXCLUDE the proposed Pass-Through
Amounts from the side constraint
calculation.
ERC Case No. 2018-109RC/November 16, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional Pursuant to ERC Order dated 7 January
2018 Services Procurement Agreement Between authority to implement the subject ASPA; 2019, the Commission conducted the hearing
the National Grid Corporation of the and on 31 January 2019 at Toledo city Cebu.
Philippines and Toledo Power Company 2. APPROVE, after notice and hearing, the
subject ASPA. The hearing was likewise concluded and Co-
Applicants were directed to submit its Formal
Offer or Evidence.
ERC Case No. 2018-108 RC/ November 9, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional Pursuant to ERC Order dated 7 January
2018 Services Procurement Agreement Between authority to implement the subject ASPA; 2019, the Commission set the hearing on 7
the National Grid Corporation of the and February 2019 at Boracay Island, Malay
Philippines and Panay Power Corporation 2. APPROVE, after notice and hearing, the Aklan.
subject ASPA.
ERC Case 2018-100-RC/ October 2, 2018 Application for the Approval of Force Majeure 3. DECLARE the Bombing/Sabotage Pursuant to ERC Order dated 15 November
(FM) Event Regulated FM Pass Through for Incidents in Mindanao and Luzon, as 2018 the Commission conducted the following
the Bombing /Sabotage Incidents in well as the Lightning/Thunder Incident in hearings:
Mindanao and Luzon, and Lightning/ Thunder Luzon as Force Majeure Events (FME);
Incident 4. GRANT PROVISIONAL APPROVAL to • Jan. 15, 2019 -Jurisdictional and
implement and bill the FM Pass-Through Expository Presentation at ERC Pasig
Amounts to Mindanao and Luzon • Jan. 16, 2019 – Expository presentation
customers starting November 2018 at ERC Mindanao Field Office.
billing month to December 2020 billing • Jan. 24, 2019 – Pre-Trial Conference
month or until such time that the amount and Evidentiary at ERC Pasig.
incurred is fully recovered;
5. APPROVE the FME CAPEX amounting • March 12, 2019 - Continuance of
to Three Million Four Hundred Sixteen evidentiary hearing.
Thousand Seven Hundred Twelve Pesos
and 11/100 (PhP3,416,712.11) incurred
by NGCP for the repair, restoration , and
facilities due to the Subject Force
Majeure Events;
the proposed FM PassThrough Amount
to be collected from the Mindanao and
Luzon customers starting November
2018 billing month to December 2020
amount incurred is fully recovered;
facilities damaged by the Subject Force

As of April 2019
101
Majeure Events amounting to Four
Million Three Hundred Thirty One
Thousand Eighty Nine Pesos
and77/100(PhP4,331,089.77) given that
it would have been fully recovered by
NGCP if these transmission assets and
other related facilities have not been
damaged or destroyed by the Subject
Force Majeure Events; and
calculation.
ERC Case No. 2018-094 RC/ September 20, Application for Approval of the Ancillary 1. Immediately ISSUE a provisional Provisionally Approved per ERC Order dated
2018 Services Procurement Agreement Between authority to implement the ASPA 8 January 2019 (docketed April 22, 2019)
the National Grid Corporation of the between NGCP and WMPC; and
Philippines and Western Mindanao Power
Corporation 2. APPROVE, after notice and hearing, the
ASPA between NGCP and WMPC.
ERC Case 2018-073 RC/ July 5, 2018 Application for the aaproval of Force Majeure 3. DECLARE the earthquake in Leyte in the On March 18, 2019, NGCP filed a motion
Event Regulated FM Pass-Through for Visayas region as Force Majeure Events requesting the Commission to set
Eartquake in Leyte in the Visayas Region In (FME); continuance of hearing on April 23, 2019.
Accordance with the Rules for Setting 4. Immediately GRANT Provisional
Transmission Wheeling Rates Approval to implement and bill the
following FM Pass-Through Amounts
starting August 2018 billing month to
December 2020 for Visayas, or until
such time that the amounts incurred are
fully recovered;
5. APPROVE the FME CAPEX and OPEX
amounting to One Hundred Fifty-Four
Million Eight Hundred Fifty-Three
Thousand Forty Pesos and 16/100
(PhP154,853,040.16) incurred by NGCP
for the repair, restoration and
facilities due to FME Earthquake in
Leyte;
the proposed FM Pass-Through
amounts to be collected from the
Visayas customers starting August 2018
amounts incurred are fully recovered;
facilities damaged by the FME
Earthquake in Leyte amounting to Thirty-
Nine Million Two Hundred Ninety
As of April 2019
102
Thousand Five Hundred Thirty-Four
Pesos and 84/100 (PhP39,290,534.84)
given that it would have been fully
recovered by NGCP if these
facilities have not been damaged or
destroyed by the said FME; and
calculation.
ERC Case No. 2017-100 RC/ Oct. 26, 2017 In the Matter of Application for the Approval of 9. ISSUE a Provisional Authority to On February 21, 2019 at ERC Visayas Field
the Connection Charges and Residual implement and commence the billing and Office in Cebu city the Commission
Subtransmission Charges for Calendar Years collection of the proposed CY 2015 conducted the continuance of the evidentiary
2014 and 2015 on Subtransmission Assets of CC/RSTC beginning the billing month of hearing.
the National Grid Corporation of the January 2018.
Philippines, with Prayer for Provisional 10. APPROVE the recovery of the computed On March 14, 2019 (2:00PM), the
Authority CY 2014 and 2015 CC/RSTC provided continuance of the evidentiary hearing was
in this application from all Transmission conducted at ERC Pasig City.
Customers.
11. ALLOW NGCP to bill and collect under-
recoveries resulting from the difference
in the actual collection made by NGCP
for CY 2015 and 2016 vis-a-vis the
proposed CY2014 and 2015 CC/RSTC
which should have been collected for the
years CY2015 and 2016; and DIRECT
NGCP to refund any over-recovery
arising from such difference.
12. ALLOW NGCP to bill and collect the
deferred CC/RSTC for disposed sub-
transmission assets;
13. ALLOW NGCP to impose a 3%
Franchise Tax on CC/RSTC to be
reflected as a separate line item in the
Power Bill.
Source: Transco

As of April 2019
103
Annex 3. ERC Approved Capital Expenditure Projects as of 30 November 2018 – 20 March 2019
PROJECT
COST DATE FILED/
APPLICANT PROJECT DESCRIPTION RATIONALE
(PhP) APPROVED
FIVE-YEAR CAPITAL EXPENDITURE PROJECTS (2017-2021)

The proposed project is intended to maintain a safe, efficient and
Installation of Primary Lines to Overextended
reliable distribution system. It shall basically comply with the safety 23,279,512.25
Secondary Lines and Service Drop Wires
requirements of the Philippine Electrical Code.
Construction of Three-Phase Primary Line The proposed project is intended to cater incoming spot/large load,
1,702,873.83
going to SM Mall particularly the SM Mall along the Municipality of Poblacion.
Line Conversions to Three-Phase from Rizal,
The proposed project shall meet the required line configuration of the
Taytay and Roxas Distribution Stand Alone 3,212,002.34
new load customers that will connect to the said feeders.
Systems
The installation of additional DTs to the network is a continuing
Installation of additional Distribution process in the distribution utility to address the increase of additional
23,935,442.79
Transformers (DTs) loads. Additional loads require additional capacity in the distribution
network assets.
The secondary distribution line extension is a continuing process in
Extension of Secondary Distribution Lines the distribution utility to address the increase of additional loads. The
Palawan 29,948,405.22
using Duplex and Poly-insulated Conductors electrification of forecasted additional demand and customers would
Electric require extension of secondary distribution lines.
Cooperative, The DU is mandated to provide its new customers the required
Inc. Metering Equipment Accessories and Service 09 May 2017/
metering facilities consistent with the standard prescribed in the 88,104,968.71
(PALECO) Drops 06 November 2018
distribution code.
ERC CASE
Installation of 5-MVA substation at Barangay
NO. The proposed projects shall correct the power quality issues of San
Manalo, Puerto Princesa City and Single to
2017-039 RC Jose feeder of the Puerto Princesa 1 Substation. The power quality
Three-Phase Line Conversion from Barangay 36,202,240.71
performance of the said substation will definitely get worse if the
San Rafael to Barangay Langogan, Puerto
proposed projects are not implemented.
Princesa City
The proposed new substation and associated subtransmission line
shall correct the power quality issues of Iwahig feeder of the Puerto
Installation of 5-MVA Substation at Barangay
Princesa 1 Substation. The power quality performance of the said 29,144,184.00
Montible, Puerto Princesa City
substation will definitely get worse if the proposed projects are not
implemented.
Single to Three-Phase Line Conversion from
The proposed project shall meet the required line configuration of the
Barangay Villa Libertad to Barangay Bucana, El
new large load customer and correct the power quality issues of the 9,709,550.65
Nido and Sitio Logadia to Sitio Bobolungan,
existing El Nido Feeder.
Corong Corong, El Nido
Extension of distribution lines to un-energized The proposed project shall comply with the DUs mandate to provide
437,339,161.03
23 barangays and 208 sitios total electrification on remote sitios of the entire franchise.
Installation of additional Sectionalizing The proposed project shall improve the entire system’s reliability
27,528,000.00
Equipment and Devices performance.
Buffer Stocks of Line Materials and Equipment The proposed projects intends to ensure availability of vital materials 36,623,600.00
33rd Status Report on EPIRA Implementation

May 2018 – October 2018
104
PROJECT
COST DATE FILED/
APPLICANT PROJECT DESCRIPTION RATIONALE
(PhP) APPROVED
and equipment for immediate restoration/rehabilitation of distribution

lines damaged by disasters and calamities. This project is vital in
terms of better reliabilyt performance of the EC considering that usual
interruption period due to said force majeure events will be reduced.
Replacement of Old and Defective Kilowatt- The proposed project shall improve the entire system’s efficiency
43,500,000.00
Hour Meters performance.
The proposed project shall improve the system’s efficiency
Installation of Amorphous Metal Distribution
performance of the DU considering that aged distribution transformers 52,752,200.00
Transformers
contribute significantly to the system losses of the entire network.
The proposed project shall improve the system’s efficiency
performance of the DU by avoiding the non-technical loss brought
Installation of Photo Switch for Street Lights 1,020,500.00
about by the existing billing scheme of the DU to the LGU on street
lights consumptions.
The proposed project is intended for the DU to have a compact
Installation of Advance Communication System
scheme for monitoring, controlling and protecting the entire grid as 38,927,728.00
for Substations
well as providing quality and reliable power service.
The implementation of the sub-office project will establish a long term
Land and Land Rights / Structures and solution of avoiding costs from office rental expenditures. It will also
61,110,000.00
Improvements provide convenience to the member-consumers as well as the office
employees during the necessary transactions.
The acquisition of service vehicles are intended for the officials and
Transportation Equipment pertinent staff of the cooperative. The said vehicles will be used for 63,341,845.00
important and official travel outside the office.
Laboratory and Miscellaneous Equipment / The engineering tools and equipment is an important asset in the
Tools, Shop, Safety Gadgets and Garage constant monitoring of the performance assessment and maintenance 48,052,297.25
Equipment of the distribution system.
Information system will basically aid the concerned personnel to do
their task effectively and efficiently. Mobile radios will be installed to
Information System Equipment / some of the proposed vehicles and handheld radios will be used by
Communication Plant and Equipment / Office crews assigned at satellite and extension offices. The procurement of 27,257,922.00
Furniture and Equipment office equipment and appliances shall be conducive for both the DU’s
personnel and paying customers during the office hours and customer
transactions.
Source: ERC

November 2018 – April 2019
105

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34th Electric Power Industry Reform Act (EPIRA)

Implementation Status Report

With Contributions from

Energy Regulatory Commission

I. EXECUTIVE SUMMARY ........................................................................................................ 2

Annex 1. TransCo Inspection Report Based on Concession Agreement ................................. 97

34th Status Report on EPIRA Implementation

34th Status Report on EPIRA Implementation

A. Generating Assets and Independent Power Producer (IPP) Contracts

Table 1. Schedule of Privatization for Generating Assets as of 30 April 2019

Capacity increased by 19 MW as a result of Agus VI Units 1 & 2 Uprating

34th Status Report on EPIRA Implementation

REA No. of Lots/Units Area, in SQM Location

• Disposal through regular Public Bidding (big-ticket REA)

REA No. of Lots/Units Area, in SQM Location

• Masterplanning of NPC Diliman Properties

34th Status Report on EPIRA Implementation

On 10 January 2019, a coordination meeting among PSALM, NPC, National Grid

• Disposal of REA through Other Modes

b. Tiwi Geothermal Power Plant (GPP) Land

34th Status Report on EPIRA Implementation

On 02 April 2019, PSALM published the Invitation to Bid.

a. RMS Petroleum Technology and Waste Mgt. Corporation;

• Disposal of Unserviceable Assets of Sold Plants and Other Disposable Assets at

On 11 March 2019, PSALM held a pre-bid conference which was attended by 12

34th Status Report on EPIRA Implementation

Table 3. Privatization Proceeds as of 30 March 2019, (in PhP Billion)

D. Concession of the National Transmission Network

E. Sale of Sub-Transmission Assets (STAs)

34th Status Report on EPIRA Implementation

Table 5. Financial Obligations (FOs) as of 30 March 2019

Table 6. Financial Obligations by Currency as of 30 March 2019

34th Status Report on EPIRA Implementation

A. Average Electricity Rates

Figure 3 - Electric Cooperatives’ Average Systems Rate

Among the Luzon PIOUs, La Union Electric

34th Status Report on EPIRA Implementation

Table 7. EC's Unbundled Average Residential Electricity Rates, March 2019

Figure 5 – Private Investor-Owned Distribution Utilities Average Electricity Rates

34th Status Report on EPIRA Implementation

0 to 200 201 to 300 301 to 400 Over 400

Generation 5.60 53% 5.60 52% 5.60 50% 5.60 48%

Table 9. Summary of MERALCO Unbundled Power Rates as of March 2019 (PhP/kWh)

34th Status Report on EPIRA Implementation

Figure 7 - Sources of MERALCO Power Supply Requirement

34th Status Report on EPIRA Implementation

Figure 9 – NGCP Average Effective Transmission Charges

34th Status Report on EPIRA Implementation

Year Rate Applied ERC Approval Remarks

1. TRANSCO is authorized to collect a Feed-In Tariff Allowance equivalent to PhP0.2226/kWh

b. RES to collect FIT-All from contestable customers;

34th Status Report on EPIRA Implementation

Below is the summary of FIT-All Collection as of December 31, 2018.

Year Collection (In PhP Billion) Collection Efficiency (%)

C. Administration of Universal Charge (UC)

This section provides development on the implementation of UC pursuant to Section 34 of the

1. Universal Charge Remittances, Interests & Disbursements Charge Remittances, Interests