Distribution Management Committeedmc.org.ph/file-manager/files/annual report2016.pdf · System Loss...

Distribution Management Committee

2016 ANNUAL REPORT

2

VISION

ERC’s Premier Technical

Advisor for its Pursuit of

Excellence in Power

Regulation

MISSION

To Provide ERC the Best Technical Advisory in Ful-fillment of its Mission for

Consumer Interest

Chairman Jaime V. Mendoza Government –Accredited Professional Organization of Electrical Engineers

Vice Chairman Hipolito A. Leoncio

Commercial Customers

Treasurer Froilan J. Savet

Luzon Private & Local Government Distributors

Secretary Nelia F. Irorita Residential Consumer Groups Members Alvin M. Farrales

Luzon Electric Cooperatives

Jose Redmond Eric S. Roquios Visayas Electric Cooperatives

Julie B. Real Mindanao Electric Cooperatives

Sunday C. Palabrica Visayas Private & Local Government Distributors

Mark A. Valencia Mindanao Private & Local Government Distributors

Zosimo A. Briones Grid Owner

Leo E. Bugarin System Operator

Jorge H. Lucas Embedded Generators

Gaylord A. Mendoza Industrial Customers

Government Reynaldo S. Cuevas, Jr. Representatives National Electrification Administration

Ranillo E. Maatubang

Energy Regulatory Commission

Marc Louie L. Olap Department of Energy

Page 1 2016 DMC Annual Report

3

SUBCOMMITTEES


Compliance Subcommittee (CSC) Distribution Operations Subcommittee (DOSC) Distribution Planning Subcommittee (DPSC) Distribution Reliability and Protection Subcommittee (DRPSC) Rules Review Subcommittee (RRSC)

Chairperson Jorge H. Lucas V-Chairperson Nelia F. Irorita Members Gaylord A. Mendoza Jose Redmond Eric S. Roquios Leo E. Bugarin

Chairperson Mark A. Valencia V-Chairperson Sunday C. Palabrica Members Zosimo A. Briones

Julie B. Real Froilan J. Savet

Chairperson Hipolito A. Leoncio V-Chairperson Zosimo A. Briones Members Alvin M. Farrales Jaime V. Mendoza Julie B. Real

Chairperson Froilan J. Savet V-Chairperson Nelia F. Irorita Members Alvin M. Farrales Jorge H. Lucas Jaime V. Mendoza

Chairperson Jose Redmond Eric S. Roquios V-Chairperson Mark A. Valencia Members Hipolito A. Leoncio Sunday C. Palabrica

Leo E. Bugarin

4

We, in the DMC, made it a priority for this year, to make

proposals, namely: Islanding Operations Guidelines, Sig-

nificant Incident Reporting (SIR) Evaluation Guidelines,

Revised On-Grid Electric Cooperatives’ (EC) Reliability

Performance Targets, and Guidelines for the Distribution

Utilities’ (DU) Submission of Customer Service Standards

to the DMC. These proposals are all aimed to help us and

the DUs improve our respective functions in monitoring the

DUs’ systems and their operations, and in complying with

the requirements of the PDC.

Our proposed DU User’s Guidelines and Procedures for

Online Submission of Distribution System Loss Segrega-

tion, Distribution Utility Use and Reliability Data to DMC

and Philippine Distribution Code 2016 Edition were finally

endorsed to the ERC for approval.

Engr. Jaime V. Mendoza

Chairman

Introduction


On behalf of the DMC, I am pleased to welcome Engr. Gaylord A. Mendoza to represent the Industrial Customers in the Committee. We thank his organization, the Philippine Chamber of Commerce and In-dustry (PCCI), for sending us their experts who give valuable contribu-tion to the electric industry.

Let us all support and help Engr. Mendoza to become another produc-tive member of this Committee.

Engr. Roberto C. del Rosario Executive Director


ACCOMPLISHMENTS

Significant Accomplishments

Philippine Distribution Code 2016 Edition DU User’s Guidelines and Procedures for Online Submission of Distribution

System Loss Segregation, Distribution Utility Use and Reliability Data to DMC DMC’s Reply to the Clarification Request of NSEP Findings on the Minimum Load Requirement or Voltage Limitation for the

Connection of End-Users in the Distribution System Benchmarking Reliability Indices Performance Standards for On-Grid ECs

Comments

Comments on the Castalia’s Consultation Papers Comments on the Formulation of Ancillary Services of Embedded Generators Comments on the Amendment of Resolution No. 9, Series of 2013, entitled “A

Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable Energy

Comments on DOE’s Draft Department Circular

Compliance Assessments

AKELCO, ASELCO, BUSECO, CAPELCO, CEDC, CLPC, DECORP, FLECO, LEYECO V, NORECO II, NORSAMELCO, NUVELCO, PENELCO, QUIRELCO, SEZ, SURNECO, ZAMCELCO and ZAMECO I

Reports

Report on DUs’ System Efficiency Report on DUs’ System Reliability Indices Reports on ILECO II, INEC, TARELCO II and ZAMECO II’s PDC Compliance Report on the Assessment of the DUs’ DCMRs

6

Report on DUs’ System Efficiency Comments on the Castalia’s Consultation Papers Comments on the Formulation of Ancillary Services of Embedded Generators Report on the DUs’ Submitted DCMRs Comments on the Amendment of Resolution No. 9, Series of 2013, entitled “A Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable Energy Report on DUs’ System Reliability Indices Report on ILECO II, INEC, TARELCO II and ZAMECO II’s Compliance with the PDC


The report shows the summary of the Other Technical Data submitted by the Distribution Utilities (DUs) for 2015 and, first to third quarters of 2016 pursuant to DMC Board Resolution No. 32, Series of 2009. The DMC commented that the parameters used in classifying Electric Cooperatives (ECs) needed a careful study since each EC is distinct and unique in character from each other considering the local condition, terrain where line traverses, existing infrastructure and logistics. It was suggested that the recent salary scale of EC employees under the Na-tional Electrification Administration (NEA) Memorandum No. 2015-20 be included in the proposed reforms for the “Rules for Setting the Electric Cooperatives' Wheeling Rates" (RSEC-WR) as this would have a signifi-cant impact on the DSM OPEX costs. Further, the DMC would like to know how the pending capital expenditure (CAPEX) applications would be treated once the proposed reforms were approved. In response to the Department of Energy (DOE’s) request for policy for-mulation, the DMC studied the technical feasibility of embedded genera-tors in providing ancillary services, and reviewed the existing rules on their procurement. It was concluded that embedded generators are technically capable of providing such services, but as to who should pay them was another matter of concern. The DMC further concluded that the provisions on ancillary services under the PDC, PGC, ASPP, and WESM rules should also apply to embedded generators. The report shows the DMC’s evaluation of the Distributor’s Compliance Monitoring Reports (DCMR) submitted by the DUs for 2015. The DCMRs reflect the DUs’ own assessment of their compliance with the requirements of the PDC. The Committee commented on the issue on whether or not the DUs could pay in cash the accumulated peso credits at the end of each cal-endar year. The second option which mandated the non-payment of pe-so credits was endorsed to the ERC due to reasons that: (1) economi-cally, excess Net Metering generation would be costly because of the corresponding costs for system reinforcements and reserves; and (2) technically, electricity generation must be equal to demand, otherwise, power system could be strained. The report shows the summary of the DUs’ system reliability for 2015 and first to third quarters of 2016. The report shows the result of evaluation made by the DMC on the sta-tus of ILECO II, INEC, TARELCO II, and ZAMECO II’s compliance with the first and second priority standards of the PDC.

Accomplished Activities

7

DMC’s Reply to the Clarification Request of NSEP Comments on DOE’s Draft Department Circular Philippine Distribution Code 2016 Edition Findings on the Minimum Load Requirement or Voltage Limitation for the Connection of End-Users in the Distribution System Benchmarking Reliability Indices Performance Standards for On-Grid ECs


The Committee’s position on the queries of Nippon Steel and Sumikin Engineering Co., Ltd. and PNS Construction Inc. (NSEP) regarding the existing rules which should govern them on their plan of setting up a Combined Heat and Power (CHP) plant. The Committee commented on the DOE’s draft Department Circular entitled “Providing for the Policies and Guidelines on the Conduct of Performance Audits for All Power Generation and Distribution System Facilities in the Country”, stating among others, that the ERC, through the DMC and the Grid Management Committee (GMC), is already per-forming the functions of monitoring the compliance of the industry play-ers with the PDC and the Philippine Grid Code (PGC). Such duplication of functions may entail additional resources which could be covered by the end-users through electricity rates or taxes. The Committee endorsed to the ERC its proposed PDC revisions for approval. The Committee evaluated the issue raised by Engr. Robert Mallillin on

the minimum load requirement or voltage limitation for the connection of

end-users, and endorsed its findings to the ERC. It was repeatedly em-

phasized by the Committee that the Distribution Impact Study (DIS) is

necessary to determine the voltage level for the connection to any con-

nection point in the distribution system.

The technical report contains the study of methodologies, statistical re-

sults and patterns using the EC’s historical data of System Average In-

terruption Frequency Index (SAIFI) and System Average Interruption

Duration Index (SAIDI) to benchmark the reliability indices performance

standards of on-grid ECs.

8

Islanding Operation Guidelines Significant Incident Report (SIR) Evaluation Guidelines Guidelines for the DU’s Submission of Customer Service Standards to DMC


The DPSC is studying the islanding operations commonly practiced by

the DUs with embedded generators capable of supplying part of the

DUs’ systems in cases where the DUs are isolated from the grid. The

draft guidelines were posted on the DMC and ERC websites for public

consultation and comments from the stakeholders.

The DOSC is identifying the relevant data to be used as basis of signifi-

cant incident as well as formulating internal guidelines for the evaluation

and validation of the significant incidents in order to improve DUs’ sub-

mission of SIR reports.

The DOSC is drafting guidelines for the DUs’ submission to the DMC of

their Customer Service Standards. Specific standards shall be estab-

lished in accordance with section 3.5 of the PDC to define the timeli-

ness, accuracy and appropriateness of DUs’ services to their custom-

ers.

On-Going Activities

9


1st Regular Meeting held on January 13, 2016 at the

DMC Conference Room with 77% Members’ Attend-ance

Monitoring Operations of Embedded Generators. The first discussions were focused on the result of the joint meeting between the DMC-RRSC and GMC-RRSC. The DMC immediately opposed to the pro-posal of the GMC to include in their functions the monitoring of operations of embedded generators. The DMC requested the assistance of its ERC repre-sentative to resolve this matter. The concerned staff was instructed to send a letter to the ERC regarding the conflicting provisions on embedded generation in the PDC and PGC. Requirements for Embedded Generators. Updates on the status of the draft Embedded Generator’s Con-nection and Operational Requirements were reported which include comments coming from MERALCO, PEMC and NGCP. Additional comments were ex-pected to be received from PhilHydro, Aboitiz Power and Minergy. A teleconference with the consultant, Mr. Jorge Bircher was set by the end of January be-fore the conduct of the expository presentations and public consultations. Compliance Assessment. A tentative schedule for compliance assessments in various DUs was shown for guidance of the DMC. Four DUs were added to the initial list. 2nd Regular Meeting held on 4 February 2016 at Ce-bu City with 85% Members’ Attendance Requirements for Embedded Generators. The con-cerned staff was instructed to coordinate with Ms. Sylvia Martinez of World Bank for the preparation of her report on the study of the Embedded Generators Connection and Operational Requirements. They were also instructed to make a summary of all major issues raised in all meetings and public consultations conducted for the study of the said subject.

Renewable Energy Integration Study. A brief sum-mary of the study for the Philippine settings under the DOE where the DMC was made part of the Core Technical Advisory Committee (Core-TAC) was pre-

sented. The objectives of such study were to in-crease the use of renewable energy resources, en-hance energy security, improve energy access and foster low emission development.

Compliance Assessment. The outputs of assess-ments conducted at BLCI, NONECO, MOELCI I, KAELCO, LEYECO III, DANECO and PECO were shown for approval of the DMC. It was suggested to revisit at least one DU every year which was previ-ously assessed by the DMC to validate its report on compliance. The reports of compliance assessments were finally approved by the DMC. 3rd Regular Meeting held on 9 March 2016 at the DMC Conference Room with 92% Members’ Attend-ance Financial Statements. The first part of the meeting was a presentation of the financial statements audit-ed by the external auditor, Reyes Tacandong & Co. The presentation included some issues on the out-standing checks, additional depreciation on leasehold improvements of the previous office, retirement bene-fit expense based on the actuarial report, and full de-preciation of said leasehold improvements. The DMC approved the audited financial statement as present-ed by its auditor. Requirements for Embedded Generators. The DMC reviewed and decided on the recommendations of the RRSC regarding the comments submitted by the Na-tional Grid Corporation of the Philippines (NGCP) and Vivant Corporation on the draft Embedded Genera-tors Connection and Operational Requirements. An-other presentation was made on the DOE’s request for the formulation of policies for the ancillary services to be provided by the embedded generators. The DMC decided that the embedded generators should be allowed to provide ancillary services provided that they comply with the requirements of the law. Online Submission of DSL and Reliability Reports. An update was made regarding the results of the previ-ous joint DPSC and DRPSC meeting which was held on 11 February 2016, and the coordination meeting with MERALCO and Power Solv which was held on 2 March 2016. The IT Officer proposed a few options to

Regular Meetings

10


choose from for faster, more secured and more relia-ble online submission of reports. The DMC Chairman further suggested to create groups of DUs and to subject each group to a fixed schedule in their sub-mission of reports in order to avoid network conges-tion. Revised ECs Performance Targets. Another update was made on the outcome of the joint DPSC and DRPSC meeting held on 11 February 2016 regarding the initial reliability standards. The DMC was positive that the groupings and initial targets proposed by the Consultant Castalia would eventually improve the EC’s performance and narrow down the bandwidth of reliability targets. RSEC-WR Amendments. The comments prepared by the DPSC and RRSC during its joint meeting held on 17 February 2016 to the proposed reforms on the: (1) CAPEX approval process for ECs, (2) Setting of the RFSC charge under RSEC-WR, and (3) RSEC-WR, were discussed and approved by the DMC for en-dorsement to the ERC. Nomination Guidelines. The staff presented the out-line of a proposed set of guidelines for the selection and appointment of nominees. The proposed guide-lines were formulated in compliance with the instruc-tion of ERC Chairman Salazar to draft the same specifying the criteria by which candidates were se-lected. The DMC Chairman instructed the staff to in-form the ERC that there were already existing guide-lines issued by the ERC before the creation of the DMC covering the same procedures. Compliance Assessment. A tentative schedule of compliance assessments for eighteen DUs was pre-sented for guidance of the DMC. Two DMC Members are mandated to join the technical staff in each DU. 4th Regular Meeting held on April 6, 2016 at the DMC Conference Room with 85% Members’ Attendance

Revised PGC. The first issue raised was the defini-tion of large generator which was different from the proposed definition in the PDC. The DMC decided to discuss the issue with the GMC and the Philippine Independent Power Producers Association (PIPPA). Revised PDC. The updates on the draft revisions to the PDC was presented for comments in which only

grammar corrections were made in two items of chapter 7 of the said draft.

5th Regular Meeting held on May 11, 2016 at the DMC Conference Room with 77% Members’ Attend-ance Revised PGC. Mr. Jorge Lucas raised his concern on the definition of large generator in the proposed PGC revisions which provide for the mandatory connection to the grid of large generators in Luzon having the capacity of 10MW and above, and in Visayas and Mindanao with the capacity of 5MW and above. This definition will limit the connection of generators to the distribution system and will run counter to the defini-tion of the PDC which allows connection to the distri-bution system without limit. A letter concerning this matter would be sent to the GMC for their comment. Online Submission of DSL and Reliability Reports. The DMC approved the subscription of the SFTP to address the in bulk submissions of data from big Dis-tribution Utilities. Revised PDC. The DMC approved minor changes in the said draft which included among others, the provi-sion on the granting of derogation. Atty. Ma. Janice Tejano was requested by the DMC to proofread the draft amendments for finalization. PBR Comments. The DMC was shown of the ERC’s position on the comments submitted by the DMC back in 2013 regarding the ERC’s draft Rules for Set-ting Distribution Wheeling Rates for Privately Owned Distribution Utilities Operating Under Performance Based Regulation (PBR), First Entry Group, Fourth Regulatory Period. 6th Regular Meeting held on June 8, 2016 in Davao del Norte with 85% Members’ Attendance Requirements for Embedded Generators. Mr. Leo Bugarin suggested providing a limit for embedded generators to connect to the distribution system con-sidering the major impact that they could cause on the grid. It was reiterated that based on the existing rules, impact studies should first be conducted to de-termine the generator’s impact to the grid before it could connect to the distribution system; thus, setting a limit would not be necessary. It was also mentioned

11


that the GMC had already given their comment on the definition of large generator stating that they were not amenable to first be conducted to determine the gen-erator’s impact to the grid before it could connect to the distribution system; thus, setting a limit would not be necessary. It was also mentioned that the GMC had already given their comment on the definition of large generator stating that they were not amenable to the suggestion of the DMC since their definition refers to the connection to the grid and not to the dis-tribution system.

Complaint Against VECO. A certain consumer of VECO filed before the DMC a complaint against the latter’s alleged PDC violations. There was a sugges-tion to discuss the matter in a joint meeting and an-other suggestion to endorse it directly to the ERC. It was decided to discuss the technical issue in a joint meeting with the guidance of Atty. Ma. Janice Tejano.

7th Regular Meeting held on 14 July 2016 at the DMC Conference Room with 92% Members’ Attend-ance Revised ECs Performance Targets. The staff pre-

sented the analysis using the 5-year interruption re-

ports submitted by the ECs, with SAIDI of 13 occur-

rence per year and SAIFI of 1,006 minutes. These

values were computed with the optimal value deter-

mined through the excel software for statistical analy-

sis, to normalize the distribution of the computed

SAIFIs and SAIDIs. The results were found to be too

stringent for implementation, thus, another values

were assigned for the next computation.

System Reliability Report. The system reliability re-port for the first quarter of 2016 shows that 83.33% of the ECs and 100% of the private DUs submitted their reports. It was noted that 50% of the interruptions falls under “Others” or “Unknown” categories, thus, the staff was instructed to verify such causes. System Efficiency Report. The system efficiency re-ports of the DUs for the first quarter of 2016 shows that majority of the ECs located in the ARMM region did not submit their report. The staff was instructed to request the copy of single line diagram from the DUs.

Islanding Operations Guidelines. The draft which was formulated by Mr. Bugarin included a flow chart showing the procedures and their corresponding pre-conditions and triggering events. Compliance Assessment Report. Reports on AKEL-CO and NUVELCO’s assessment outputs and status of submission of DCMR were presented briefly. The Committee approved the assessment report for NUVELCO and instructed the staff to prepare the written report for ERC. 8th Regular Meeting held on 10 August 2016 at DMC Conference Room with 100% Members’ Attendance Revised On-Grid EC’s Reliability Performance Tar-

gets. Comparative results of the number of ECs per

zone using arbitrary and recommended computed

values (including the 1.5 standard deviation above

and below the mean of SAIFI and SAIDI) proved to

produce a more desirable output for ECs’ classifica-

tion. The staff was directed to prepare a technical

paper containing the complete study on the method-

ologies used, including explanations and references.

The staff was also instructed to research on foreign

methodologies and the possibility of using skewed

data.

The initial part of the proofreading process for the draft PDC 2016 Edition was briefly mentioned rec-ommending minor corrections on Chapters 1 to 4 of the said document. The succeeding parts of the proofreading process will be presented by Atty. Tejano in the next RRSC meeting. The recommendations made by the CSC on their previous meetings were discussed for review of the Committee. Upon deliberation, the Committee ap-proved the reports on the compliance assessments conducted in CEDC,BUSECO and AKELCO. 9th Regular Meeting held on 14 September 2016 at the DMC Conference Room with 77% Members’ At-tendance Compliance Assessment Report. The staff present-

12


ed the output of the compliance assessments con-ducted in ASELCO, BUSECO, DECORP and LEYECO V. All the presented outputs were approved except BUSECO due to some pending issues on their system loss. System Reliability Report. The report for the first quarter of 2016 shows that only 83.33% of the DUs submitted their reports. It likewise reflected inconsist-encies in the declared and the actual duration of in-terruptions. The staff was instructed to map the relia-bility trends using the average SAIFI and SAIDI per Tariff Glide Path (TGP) for ECs and per PBR for pri-vate DUs. Customer Service Standards. It was mentioned that although the ECs are submitting their Customer Ser-vice Standards to the NEA, the report template that they use are lacking some items which are enumerat-ed in the PDC. Thus, the Committee instructed the staff to compare Table 3-1 on Customer Service Standards for DUs provided by the PDC with NEA’s Key Performance Standards (KPS) and ERC’s Per-formance Indicators (PIs), and to come up with the list of standards common to all DUs. PSGG Assessment Checklist and Islanding Opera-tions Guidelines. The Committee was likewise in-formed of the draft documents were ready and would be sent to their emails for their review. Revised PDC. The Committee reviewed and ap-proved the recommendations of the RRSC on the corrections made by the DMC Legal Counsel after proofreading the first four chapters of the draft Philip-pine Distribution Code 2016 Edition. Additional cor-rections were focused on the procedures in amending or revising the PDC. Compliance Assessment. The Committee showed the increasing number of DUs which have been visited since 2012 for the purpose of confirming their compli-ance with the PDC. The following table shows the DUs assessed for each year:

Chairman Mendoza suggested increasing the number of DUs to be audited and reassessing them after two years to monitor their improvements. He also sug-gested hiring additional employees who would con-duct the assessments. The corresponding reports containing the assessment and evaluation of the fol-lowing DUs were submitted to the ERC for their ap-propriate action.

2012 2013 2014 2015 2016

PELCO I AURELCO CAGELCO II ILECO II PENELCO

CENECO ISELCO II TARELCO II NUVELCO

ANECO SIARELCO ZAMECO II AKELCO

CEPALCO SAJELCO MOELCI II CEDC

BATELEC II VECO INEC BUSECO

SOLECO IFELCO GUIMELCO LEYECO V

ILECO I CASURECO III ASELCO

SOCOTECO II FIBECO DECORP

BENECO DLPC NORECO II

LEYECO IV MORESCO I FLECO

PELCO II CLPC

BLCI ZAMECO I

NONECO ZAMCELCO

MOELCI I CAPELCO

KAELCO

LEYECO III

DANECO

PECO

ANECO CEPALCO PELCO I

AURELCO IFELCO SAJELCO

BATELEC II ILECO I SIARELCO

BENECO ILECO II SOCOTECO II

CAGELCO II INEC TARELCO II

CENECO ISELCO II ZAMECO II

13


Out of 140 DUs, there are 48 DUs which have al-ready been assessed: 20 in Luzon, 14 in Visayas, and 14 in Mindanao, leaving 86 DUs to be assessed starting next year. The Committee is planning to shorten the period of conducting assessments in DUs and to focus more in evaluating the documents sub-mitted by the DUs. 10th Regular Meeting held on 13 October 2016 at Olongapo City with 92% Members’ Attendance SIR Evaluation Guidelines. There was inconsistency

on the timeframes in conducting investigation or in-

spection. Upon realizing that the investigation would

depend on the cause of incident, the Committee de-

cided that the timeframe should be determined on a

case-to-case basis.

Grid Alert Notices. NGCP denied the request of the

DMC to be furnished with Grid Alert Notices following

the provisions of the PGC. Nevertheless, the DMC

was assured that all affected users are updated with

the status of the grid. Engr. Sunday Palabrica con-

firmed receiving such notices from the NGCP.

PDC 2016 Edition. The outcome of the RRSC meet-

ing was presented for the information of the Commit-

tee. The final draft is expected to be endorsed to the

ERC by the end of November.

Reliability Report. The DUs System Reliability for the

first half of 2016 was presented highlighting the top

performing DUs. Engr. Hipolito Leoncio questioned

the basis in determining the performing DUs since

DUs which had already been assessed perform bet-

ter than those which had not. Thus, it was decided to

exclude the top list from the report and to consider

the availability of the segregation data for accuracy of

the report.

System Efficiency Report. The Committee made the

following comments on the presented system efficien-

cy of DUs for the first half of 2016:

Segregate the conduct of performance assess-ments at the grid-connected DUs from the off-grid DUs;

Identify DUs with consistent timely submissions of

reports, late submissions and non-submissions; and

Announce during regional forum or workshop of DUs the status of their submissions.

The Committee agreed not to rank the DUs in their

submissions and to approve the said report with mod-

ifications.

DCMR for 2015. The summary of the evaluations of

the DCMRs for 2015 submitted by the DUs was pre-

sented for comment of the Committee. Finding the

said summary sufficient in substance, the Committee

approved its endorsement to the ERC.

Islanding Operation Guidelines. The result of the

DPSC meeting on the drafting of the said guidelines

was shown for the information of the Committee. An-

other meeting was set to review further the draft.

Online Submission of DSL and Reliability Reports.

The points of agreement between the DMC and

MERALCO on the latter’s online submission of sys-

tem loss and reliability data were enumerated for ap-

proval of the Committee. It was decided that a written

contract reflecting their agreement be signed by both

parties.

Benchmarking Reliability Performance Target. Com-

ments gathered on the draft Benchmarking Reliability

Performance Target for On-Grid Electric Coopera-

tives during DRPSC meeting were shown. The Com-

mittee made recommendations on the draft and in-

structed the staff to interview the Technical Director

of the Grid Management Committee (GMC) to get his

input on the subject.

PSGG Assessment. The tentative schedule for the

ocular visits to be able to assess the DUs’ compli-

ance with the PSGG was briefly mentioned for guid-

ance of the Committee.

Request for Clarifications of NSEP. NSEP inquired

about the rules and regulations governing electricity

distribution and supply since they intend, as one of

14


its options, to put up their business of selling electrici-

ty not only to their client but also to third parties

through a DU’s distribution lines. The said request

was endorsed to RRSC for thorough study.

Transmission Losses and Site Specific Loss Adjust-

ment (SSLA). The Philippine Electric Plant Owners

Association (PEPOA) requested the ERC, through

the DMC, to formulate the proper treatment of trans-

mission losses and site specific losses. The DOSC

was instructed by the Committee to review the mat-

ter.

Minimum Load Requirement or Voltage Limitation for

the Connection of End-Users in the Distribution Sys-

tem. The DOSC, in coordination with the DPSC, was

instructed to review the minimum load requirement or

voltage limitation to connect an end-user to the distri-

bution lines.

11th Regular Meeting held on 10 November 2016 at DMC Conference Room with 92% Members’ Attend-ance Compliance Assessment Report. Reports on the

compliance assessments conducted in BUSECO,

CLPC, FLECO, NORECO II, and ZAMECO I were

approved by the Committee. ZAMCELCO’s request

for another extension of time to submit additional doc-

uments was denied since it was received beyond the

extended period given to them.

BUSECO’s Compliance Status:

CLPC’s Compliance Status:

FLECO’s Compliance Status:

NORECO II’s Compliance Status:

ZAMECO’s Compliance Status:

DOE Department Circular. Comments on the draft

DOE Department Circular entitled Providing for the

Policies and Guidelines on the Conduct of Perfor-

mance Audits for All Power Generation and Distribu-

tion System Facilities in the Country prepared by the

staff were presented to the Committee. The staff was

instructed to forward to the ERC the said comments

which were already submitted to the DOE.

FICELCO’s Request for Technical Assistance. The

Committee did not give further technical expertise to

FICELCO, but rather, reiterated its previous recom-

mendations to solve FICELCO’s problems in power

interruption and system blackout caused by electrical

fault, overload, high frequency, and low system volt-

age. The Committee further advised FICELCO to

seek assistance from NEA.

Islanding Operations Guidelines. Minor corrections on

the proposed guidelines particularly on the scope and

pre-requirements were made by the Committee. The

staff was instructed to request the ERC for the con-

duct of expository presentation and public consulta-

tion.

Degree of Compliance First Priority Second Priority Total

Compliance 26 4 30

Non-Compliance 1 0 1

Not Applicable 0 0 0


Compliance 27 4 31




Compliance 13 0 13




Compliance 18 3 21




Compliance 20 1 21



15


PDC 2016 Edition. Updates on the minor changes in

Chapter 8 of the draft PDC 2016 Edition were pre-

sented. It was clarified by the Committee that there is

no provision in the draft that is in conflict with the old

provisions; thus, the DU cannot exempt itself from

complying with any of the new provisions.

The draft PDC 2016 Edition was approved for sub-

mission to the ERC.



tem. The output of the DOSC during its meeting was

presented for consideration of the Committee. Upon

deliberation, the Committee decided to endorse their

recommendations to the ERC.

12th Regular Meeting held on 8 December 2016 at the DMC Conference Room with 85% Members’ At-tendance Compliance Assessment Report. The Committee ap-proved the summary report of the compliance as-sessments conducted in BUSECO, CAPELCO, NOR-SAMELCO, SEZ, SURNECO, QUIRELCO and ZAMCELCO. The table below shows the status of compliance of the said DUs:

Benchmarking Reliability Performance Target. The outcome of the DRPSC meeting regarding the tech-nical report on the Benchmarking New Reliability Standards for On-Grid ECs was discussed. The staff was instructed to include in the technical report the findings and conclusions of the study and to exclude any recommendation. Further, the sensi-tivity analysis should be reverted to +1 and +2 stand-ard deviations and the new computed values of SAIFI and SAIDI should be used. The technical report is subject to further study. Transmission Losses and SSLA. The concerns of ERC-IED, PEMC and PEPOA raised during the DOSC meeting were discussed. The Committee, be-fore deciding on the matter, will wait for the results of the actual simulation of prices and loses to be submit-ted by PEMC and PHILRECA. Interruption Report Template. Updates on the DRPSC meeting regarding the template to be used for the online submission of reliability data were pre-sented. The staff was instructed to study the existing template and to propose solutions on their deficien-cies.

DUs’ Compliance with the PGC. The GMC decided to issue a board resolution approving the turn-over of the compliance monitoring and assessment functions of the GMC to the DMC, and to let the ERC decide on the matter. Taiheiyo’s Complaint. ERC’s letter to the DMC re-

garding Taiheiyo’s complaint was discussed. In the

letter, ERC informed the DMC that their decision on

Taiheiyo’s case in ERC Case No. 2016-030 CC is

different from the remedies which Taiheiyo is seeking

from the DMC. To further review the matter, meeting

among the DRPSC, DOSC and CSC was set by the

Committee

DU Degree of Compliance

Compliance Non-Compliance N/A Total

BUSECO 31 0 0 31

CAPELCO 13 17 1 31

NORSAMELCO 17 14 0 31

SEZ 30 0 1 31

SURNECO 17 14 0 31

QUIRELCO 10 21 0 31

ZAMCELCO 8 23 0 31

16


RRSC Meeting held on January 6, 2016 at the DMC Conference Room with 80% Members’ Attendance Requirements for Embedded Generators. A coordina-tion meeting with MERALCO was called for to give them the opportunity to explain their comments on the draft requirements submitted to the DMC prior to the date of meeting. MERALCO believed that the TNP should not be directly involved in the operations of the embedded generators which have no impact to the grid. Among the contentious issues raised by MERALCO were: (a) whether or not the conduct of SIS by NGCP for the application of Large Embedded Generators is mandatory; (b) period within which NGCP should decide to conduct SIS and inform the applicant; (c) whether it is the embedded generator or NGCP who should cover the expenses for SIS; (d) the applicant’s remedies when connection is disal-lowed by NGCP; and (e) if Remote Terminal Unit (RTU) is for control or mere monitoring of dispatch by the NGCP. MERALCO suggested that provisions re-lated to the aforementioned issues should be ex-pressly provided for in the draft guidelines. RRSC Meeting held on January 7, 2016 at the DMC Conference Room with 100% Members’ Attendance Requirements for Embedded Generators. A coordina-tion meeting with the PEMC was called for to gather inputs from them on the draft requirements and at the same time to harmonize the draft requirements with the existing market rules, if necessary. PEMC stated that embedded generators should not be under the direct control of the Transmission Network Provider (TNP) as this would allow them access to the embed-ded generators’ systems. PEMC also raised the issue on whether the embedded generators should be al-lowed to provide ancillary services or not. Moreover, they suggested that TNP should only monitor, but not control, the embedded generators. RRSC Meeting held on January 12, 2016 at the DMC Conference Room with 80% Members’ Attendance Requirements for Embedded Generators. A coordina-tion meeting with NGCP was called for to allow them

to clarify their concerns on the draft requirements. The NGCP suggested that a System Impact Study (SIS) should be conducted once they are informed of the connection application of an embedded genera-tor. They also suggested that the applicant should go directly to the TNP instead of going through the Sys-tem Operator since the latter is not involved in the evaluation of the application. An RTU should also be mandatory for large embedded generators. The NGCP also asked for clarification on whose decision should prevail in case there were conflicting results between the studies done by the DU and the NGCP. RRSC Meeting held on January 19, 2016 at the DMC Conference Room with 100% Members’ Attendance Requirements for Embedded Generators. The sub-committee deliberated on the issues common to all the concerned parties of the draft requirements. They agreed that the said draft should be incorporated in the amended PDC. They formulated the general prin-ciple that the contract is only between the embedded generator and the DU, thus, dealings for purposes of connection and operation with other entities should only be made through the DU. The issue on who should cover the expenses to be incurred for the acquisition of RTU would be studied thoroughly. ERC Representative Ranillo Maatubang informed the subcommittee of the ERC’s instruction to the GMC to remove all provisions in the PGC relating to embed-ded generation and to turn them over to the DMC. RRSC Meeting held on January 20, 2016 at the DMC Conference Room with 60% Members’ Attendance Revised PDC. This meeting was called for to harmo-nize the provisions of the PDC and the PGC particu-larly on embedded generators. The primary issue to be settled would be on the difference between the DMC’s definition of Large Embedded Generator and the GMC’s own definition. The reason for the differ-ence is that the DMC based its definition on the func-tion of the embedded generator which is absolute;

Subcommittee Meetings

17


while the GMC based its definition on the grid’s fre-quency bias which may change in the future depend-ing on varying caps. The DMC could not adopt the GMC’s definition because the threshold that they pro-vided would cause an impact already too big for the distribution system; thus the DMC adopted a lower threshold. The GMC’s proposal for direct communications be-tween the system operator and the embedded gener-ator thru an RTU was amenable to the DMC, provid-ed that the embedded generator is large. Other sug-gestions of the GMC on contingencies and ancillary services were subject to further review by the DMC’s consultant. RRSC Meeting held on January 25, 2016 at the DMC Conference Room with 60% Members’ Attendance Requirements for Embedded Generators. This meet-ing was held through teleconference to be able to talk to Mr. Bircher abroad and share notes with him re-garding the appropriate responses to the last com-ments submitted by the stakeholders. The discus-sions were focused on the direct control of the sys-tem operator over the output of the large embedded generator and on whether the instruction from the system operator should be made directly to the em-bedded generator or indirectly through the DU. It was decided that the latter should be done indirectly through the DU despite of the lapse of time in relay-ing information from the system operator to the DU as this lapse of time would only be minimal. The remain-ing comments were left pending for further review of the subcommittee. CSC Meeting held on January 26, 2016 at the DMC Conference Room with 100% Members’ Attendance Compliance Assessment Report. This meeting was called for to present for approval the status of compli-ance of BLCI, MOELCI I, NONECO, KAELCO, LEYECO III, DANECO and PECO with the first and second priority standards of the PDC. Among the DUs, only PECO was fully compliant with the said standards. The concerned staff was instructed by the subcommittee members to provide a list of DUs which had already been assessed and the date of assessments. The subcommittee likewise proposed to monitor the actual compliance of the DUs based on their outputs, facilities and other materials showing

their compliance to validate the reports they submit-ted. Further, the DUs should be encouraged to pre-pare the requirements for capability test procedures of embedded generating units even without existing embedded generators within their area.

RRSC Meeting held on February 1, 2016 at the DMC Conference Room with 67% Members’ Attendance Requirements for Embedded Generators. This meet-ing was called for to prepare for the public consulta-tion to be conducted on the following day at the ERC hearing room. The consultant, Mr. Bircher showed the introduction and background of his study on em-bedded generation. This was followed by another presentation on the comments received from the stakeholders and the responses of the DMC thereon. The DMC and Mr. Bircher discussed their answers to all the questions in order to ensure that no conflicting answers from among themselves would come out to the participants of the public consultation. Joint DPSC and DRPSC Meeting held on February 11, 2016 at the DMC Conference Room with 80% Members’ Attendance Online Submission of DSL and Reliability Reports. MERALCO and DLPC discussed the challenges that they would be facing in complying with the said guidelines considering the number of feeders cov-ered by their DUs. The DMC, MERALCO and the software provider, PowerSolv, discussed together the possible solutions of network congestion and other capability issues. Revised On-Grid EC’s Reliability Performance Tar-gets. The subcommittee evaluated the efficiency of the existing reliability standards. They noted that after using the 4-year historical indices, the reliability of the data gathered and the pattern based on the current grouping of the ECs were not conclusive. The ERC representative suggested using the average of the actual values per group in computing the reliability standard. Joint RRSC and DPSC Meeting held on February 17, 2016 at the DMC Conference Room with 57% Members’ Attendance RSEC-WR Amendments. The subcommittee re-viewed the Castalia consultation papers on the:

18


Proposed Reforms to the RSEC-WR, Proposed Reforms to Setting the Reinvestment

Fund for Capital Expenditures (RFSC) under the RSEC-WR, and

Proposed Reforms to the CAPEX Approval Pro-cess for ECs.

Before the subcommittees commented on the said consultation papers, the NEA representative ex-plained first the process of CAPEX applications made by the ECs. Taking note of such, the subcommittees questioned the basis of Castalia in classifying ECs since such classification was not closely reflective of the characteristics of the ECs. They further wanted to be clarified on the overall status of an EC if some of its projects were medium risks and others were high risks, and the basis of the maximum RFSC charge whether indicative or approved. RRSC Meeting held on March 8, 2016 at the DMC Conference Room with 100% Members’ Attendance Requirements for Embedded Generators. NGCP claimed, among others, that the draft guidelines vio-lated section 9 (e) of RA 9136 which provides that the grid operator is the central dispatch of all generation facilities directly or indirectly connected to the trans-mission system, thus embedded generators should be under its direct control and should first comply with the required System Impact Study (SIS)/Facility Study (FS) before connection. The DMC contended that the said provision also provides that the central dispatch is performed in accordance with the dispatch schedule submitted by the Market Operator such that embedded generators who are to participate in the market should comply with WESM rules and must submit bids and offers to the Market Operator for Dis-patch Scheduling. Hence, the proposed Section 4.1.3 of the draft Embedded Generator’s Connection and Operational Requirements is in compliance with the aforementioned section of the EPIRA. The NGCP al-so commented that the Total Installed Capacity for PVS should be in Peak Power which is DC. The DMC, finding that the said comment was consistent with the position of the DMC, agreed with the NGCP. DOE’s Request on Policies for Ancillary Services of Embedded Generators. DMC had already decided to allow the embedded generators to provide ancillary services in the draft guidelines even before DOE

made its request on the same. The requirements un-der the Open Access Transmission Service (OATS) Rules and Ancillary Service Procurement Plan (ASPP) shall govern the embedded generators on ancillary services. RSEC-WR Amendments. Upon reading the docu-ments, it was observed that the additional comments prepared by one of the DMC Members pertained to the Castalia consultation paper on Generation Cost Benchmarking which was not included in the discus-sions during the last meeting since such was beyond the scope of work of the DMC. RRSC Meeting held on March 17, 2016 at the DMC Conference Room with 60% Members’ Attendance Requirements for Embedded Generators. The sub-committee deliberated on their position regarding the issues raised by the stakeholders during the public consultation previously conducted. The use of the terms embedded generator, embedded generating unit, embedded generating plant and embedded gen-eration company in the entire document was re-viewed and corrected. Changes were also made on the provisions of the DIS. Revised PDC. The requirements for the revenue me-tering in Chapter 7 of the draft amended PDC were also revisited for the purpose of harmonizing them with the proposed amendments to the PGC. RRSC Meeting held on March 29, 2016 at the DMC Conference Room with 60% Members’ Attendance Requirements for Embedded Generators. The sub-committee discussed the comments of the ERC-Regulatory Operations Service (ROS) on the draft requirements. The ERC-ROS primarily recommended reverting the definitions of the terms conventional and the Variable Renewable Energy (VRE) embedded generators to the original proposed definitions. They also recommended adopting the provisions of the PGC on island grid operations and the definition of embedded generator by the EPIRA. There was a long discussion on whether to define the embedded gen-erator through the perspective of the distribution sys-tem or as provided by the EPIRA. The subcommittee instructed the staff to prepare a table of comparisons on how the terms embedded generator, embedded

http://www.erc.gov.ph/Files/Render/media/CASCON_RSECWR_FINAL.pdf

http://www.erc.gov.ph/Files/Render/media/CASCON_RFSC_FINAL.pdf



http://www.erc.gov.ph/Files/Render/media/CASCON_CAPEX_FINAL.pdf

http://www.erc.gov.ph/Files/Render/media/CASCON_CAPEX_FINAL.pdf

19


generating plant and embedded generating unit were used in the proposed requirements. RRSC Meeting held on April 5, 2016 at the DMC Conference Room with 60% Members’ Attendance Revised PDC. The subcommittee discussed the me-tering chapter of the proposed revisions to the PDC. Present during the meeting are representatives from MERALCO-Metering Group to present and discuss their comments on the subject. Among their main concerns was the exemption of contestable custom-ers to comply with the requirements under Section 7.1.3. This was deleted by the subcommittee arguing that the contestable customers should comply with the requirements of the PDC in addition to the PGC and WESM requirements. Another concern was the manner of sealing the me-tering equipment which may be done in other ways. The subcommittee was amenable to MERALCO’s suggestion to rephrase the wordings on the provision involving the matter to reflect the purpose of securing the installations in convenient manner. RRSC Meeting held on April 21, 2016 at the DMC Conference Room with 100% Members’ Attendance Revised PDC. The subcommittee further reviewed the comments of the ERC-ROS and to refine the pro-visions on the latest draft of the proposed revisions to the PDC. There was a proposal to include in the said draft a specific period within which to complete the impact studies being conducted by the Transmission Network Provider. There was also a comment that instead of fixing a period, a provision stating that the application must be deemed as approved until decid-ed otherwise should be provided for. The most lengthy and contentious issue in the discussions was whether the Distribution Utilities should be allowed to initiate black start or they should only perform island-ing operations. This issue arose with the comment from the System Operator and a suggestion from the DPSC to formulate rules on how a certain Distribution Utility will perform islanding operations.

RRSC Meeting held on May 3, 2016 at the DMC Con-ference Room with 60% Members’ Attendance

PBR Amendments. Mr. Alvin Jones Ortega of the

ERC-ROS discussed the proposed amendments to the existing rules on PBR. Mr. Ortega explained the ERC’s opinion on the common issues raised by stakeholders in asset valuation, WACC, under/over recovery, identifiable risks, initial post and x-factor, side constraints and regular reset timelines. He also mentioned ERC’s position on some of the issues that have transpired from the last consultations conduct-ed. He also welcomed comments from the DMC on some matters which were not discussed. CSC Meeting held on May 17, 2016 at the DMC Con-ference Room with 60% Members’ Attendance Compliance Assessment Report. The status of com-pliance by PENELCO with the PDC standards was presented for information and guidance of the sub-committee. It was reported that some Distribution Util-ities only submitted only flow charts reflecting their procedures and not the whole procedures required by the rules. The staff was instructed to remind the Dis-tribution Utilities of the submission of the said proce-dures and to continue accepting their reports taking note of the date of their submission. DMC Activities. A pre-planning session was conduct-ed to present the expected output of the subcommit-tee for 2016 and to plan the major projects for 2017. The subcommittee instructed the staff to prioritize the activities and to set timelines for each activity. The following are the activities of the DMC for the second half of 2016:

Review of Compliance Assessment Output Monitoring of Distribution Utilities’ Compliance

with the PDC (DCMR) Revision of the Rules to Govern the Monitoring of

Distribution Utilities’ Compliance with the PDC Conduct of Workshop on the Revised Rules to

Govern the Monitoring of Distribution Utilities’ Compliance with the PDC

Revision of the Philippine Small Grid Guidelines

The following are the planned activities for 2017:

Drafting of the Rules to Govern the Monitoring of Compliance of Embedded Generators with the PDC

Finalization of the Rules to Govern the Monitoring of Small Grid Users with the PSGG

Drafting of the Methodology for Rewarding Good

20


Performing Distribution Utilities Drafting of the Derogation Rules (internal)

DPSC Meeting held on May 18, 2016 at the DMC Conference Room with 80% Members’ Attendance DMC Activities. A pre-planning session was conduct-ed to update the subcommittee of their remaining ac-tivities, the targets which should be accomplished by the end of the year, and the direction which they should take for the coming year. To summarize, di-rections were pointed to analyzing the data received from the Distribution Utilities in order to validate their compliance with the standards, and developing report templates to assist them in preparing their reports. The following are the activities of the DMC for the second half of 2016:

Management of System Efficiency and Other Technical Data

Consolidation of 2nd Quarter System Efficiency Monitoring Reports 2016

Consolidation of 3rd Quarter System Efficiency Monitoring Reports 2016

Drafting of Islanding Operation Procedure (Black Start Procedure)

Review of Other Technical Standards The following are the planned activities for 2017:

Management of System Efficiency and Other Technical Data

Consolidation of System Efficiency Monitoring Reports for First Quarter to Third Quarter of 2017

Consolidation of System Efficiency Monitoring Reports for 4th Quarter of 2016

Submission to the ERC the Consolidated Reports for 2016 and for the last 3 years

Drafting of the Procedure for the Submission of Embedded Generators' Generation Forecasts and Reports

Review of Other Technical Standards Research Works on Distributed Generation and

Smart Grid

DRPSC Meeting held on May 20, 2016 at the DMC Conference Room with 60% Members’ Attendance

DMC Activities. The remaining activities of the sub-committee for 2016 were presented to guide them in completing their tasks. Based on these activities, the

subcommittee laid out their projects to be started in 2017 and among the projects to work on is the prepa-ration of procedures for fault clearance time. The staff proposed to formulate procedures to guide the Distri-bution Utilities in creating their own. The said pro-posal was not approved by the subcommittee for the reason that the procedures involved, which the DMC are not privy to, differ from one Distribution Utility to another. The subcommittee decided to provide a tem-plate instead and continuous trainings for capacity building of the technical staff of the Distribution Utili-ties.

The following are the activities of the DMC for the second half of 2016:

Review of Reliability Indices Standards for On-Grid Electric Cooperatives

Drafting of Guidelines for the Monitoring of Relia-bility Standards for Distribution Utilities

Drafting of Guidelines for Online Submission of Distribution System Loss, Distribution Utility Use and Reliability Data to DMC


Review of Reliability and Protection Standards Review of Reliability and Protection Procedures

DOSC Meeting held on May 24, 2016 at the DMC Conference Room with 100% Members’ Attendance DMC Activities. The subcommittee convened to up-date the developments of their activities and the re-maining targets that they would have to accomplish. They also planned special activities for this year which included the evaluation of the Significant Inci-dent Reports (SIR) received from the Distribution Util-ities, and the formulation of procedures in conducting evaluation. They approved the projects for 2017 which were proposed by the staff and added other activities along with them. The following are the activities of the subcommittee for the second half of 2016:

Drafting of Guidelines for the Evaluation of Signifi-cant Incident Reports

Development of Operational Assessment Method-ology

Drafting of Reportorial Requirements for PDC (with CSC)

21


Review of Metering Procedures and Standards (as the need arises)

Review of Other Technical Standards (as the need arises)


Review and Evaluation of Standards for Equip-ment in the Distribution System

Review and Evaluation of Distribution Mainte-nance Program

RRSC Meeting held on May 25, 2016 at the DMC Conference Room with 60% Members’ Attendance DMC Activities. An overview of the functions of the subcommittee was presented at the start of the pre-planning session to guide the subcommittee of their mandates as provided by the PDC. On-going activi-ties of the subcommittee and their remaining targets were presented followed by the future programs to be started in 2017. Suggestions were made to convene with the concerned entities to discuss the procedures, rules and standards that they follow in installing solar panels. The following are the activities of the subcommittee for the second half of 2016:

Finalization of the Philippine Distribution Code 2016 Edition

Post Revision Tasks Record Keeping Documentation Review of Proposed ERC Rules and Issuances Conduct of Philippine Distribution Code 2016 Edi-

tion Orientation The following are the planned activities for 2017:

Interim Revision of the Philippine Distribution Code

Review of Retail Competition and Open Access Issuances

Drafting of the Procedure for the Application and Interpretation of PDC Provisions

Drafting of the Interconnection Standards and Re-quirements for Solar PV and Battery Storage

Review of Proposed ERC Rules and Issuances Research Works on the Demand Response for

Distribution Utilities and Micro Grid. DPSC Meeting held on 7 July 2016 at the DMC Con-ference Room with 100% Members’ Attendance System Efficiency Report. The staff reported the sys-tem efficiency of the DUs for the first quarter. It was suggested to compare the DUs per region in order to identify which among them perform and which are the drivers. The DUs’ performance for the first quarter of 2015 should also be included to compare them with their current performance in terms of system efficien-cy. Islanding Operations Guidelines. The staff also pre-sented the legal basis of islanding operations to guide the subcommittee in their proposal to establish the basic guidelines for the said operation. It was noted that corresponding amendments to some provisions of the PDC must be made in order to include the pro-visions on islanding operations. CSC Meeting held on 13 July 2016 at the DMC Con-ference Room with 100% Members’ Attendance Compliance Assessment Report. The outcome of the assessments conducted in AKELCO on 30 May to 03 June 2016, and NUVELCO was presented for the in-formation of the subcommittee and to gather their comments before drafting the report thereon. Based on the records, AKELCO’s SAIFI and SAIDI for 2015 are 13.473 and 878.266, respectively, which are within the maximum reward zone. The table be-low shows AKELCO’s compliance status for the 27 items in the First Priority Standards and 4 items in the Second Priority Standards.

AKELCO was given an extended period of 1 month within which to submit the supporting documents which they failed to show during assessment. On the other hand, NUVELCO’s SAIFI for 2015 is

Degree of Compliance First Priority Second Priority

Compliance 10 2

Non-Compliance 17 2

Not Applicable 0 0

22


31.6 which is within the penalty zone, and SAIDI for the same year is 2,474.7, which is within the neutral zone. NUVELCO’s compliance status is summarized as follows:

CSC Vice-Chairperson Briones presented his pro-posed Substation Inspection Checklists, to read: Objectives

To equip the DMC Compliance Assessment Team with knowledge on vital inspection points of a power substation (transmission/distribution line); and

To be able to provide clear and consistent re-sponses to inquiries made by the DU.

Other Safety Requirements

No unsafe acts such as wearing of slippers, non-wearing of hard hats, and horse playing while in-side the substation switchyard,

Switchyard area shall have gravel surfacing and without tall grass,

No protruding idle anchor bolts, Ground wires shall be secured properly so as not

to obstruct the working personnel, Substations shall be secured with adequate fenc-

ing and barb wire toppings, Maintenance ladder of equipment shall be re-

moved and reinstalled only during maintenance, No pets or animals inside the switchyard area,

and Proper line to line and line to ground clearances

shall be maintained. The subcommittee approved the assessment reports presented and instructed the staff to prepare the writ-ten reports for endorsement to the ERC.

DRPSC Meeting held on 03 August 2016 at the DMC Conference Room with 60% Members’ Attendance Revised ECs Performance Targets. The staff pre-

sented the comparative results of the distribution of ECs in the rewards, neutral and penalty zones using the different values suggested in the past meetings. The values used produced matches that were unde-sirable to the subcommittee. It was suggested to re-search on the reliability studies of Australia and New Zealand and the methodologies used by foreign regu-lators for the reliability indices of Rural Utilities Ser-vice (RUS). CSC Meeting held on 09 August 2016 at the DMC Conference Room with 80% Members’ Attendance Compliance Assessment Report. The assessment was conducted in CEDC last 20-23 June 2016. For 2015, its SAIFI is 6.258 while SAIDI (All Others Cate-gory) is 157.144. Its system loss at 3.94% which is almost equal to its technical loss, has improved since the previous years. For CEDC’s interruptions, there were no SIRs submit-ted although there were significant interruptions which occurred based on their records. The following table shows CEDC’s compliance status.

The next discussion was focused on the output of the compliance assessment conducted in BUSECO from 27 June to 01 July 2016. Using the 2015 data, BUSECO’s SAIFI and SAIDI respectively 9.631 and 767.854, are within the maximum reward zone. The table below shows the summary of BUSECO’s com-pliance status.

Updates on AKELCO’s status of compliance with the


Compliance 15 2

Non-Compliance 12 2

Not Applicable 0 0


Compliance 21 3

Non-Compliance 5 1

Not Applicable 1 0


Compliance 27 4

Non-Compliance 0 0

Not Applicable 0 0

23


the first and second Priority Standards were present-ed. The table below shows its compliance as of 20 July 2016.

The subcommittee suggested including in the next presentations the actual loading of power transform-ers, the actual demand, the system map showing the location of substation and other details, and the sub-station’s single line diagram. It was also suggested that the Key Performance Standards (KPS) of the concerned EC should be verified first before proceed-ing with the compliance assessment. This would give the staff some background on the performance of the EC. DOSC Meeting held on 17 August 2016 at the DMC Conference Room with 80% Members’ Attendance SIR Evaluation Guidelines. The significant features of the guidelines drafted by the staff were presented for the first time to the DOSC. The subcommittee was not amenable to the proposal of providing the DUs with recommendations on how they could improve their system. The subcommittee rather suggested making their own observations/conclusions and al-lowing the DUs improve their own system. The sub-committee is also looking at the inclusion of penalties for implementation by the ERC for non-compliance of DUs. The following additional comments and recom-mendations were made by the DOSC on the pro-posed guidelines:

Provide a standard format for the Significant Inci-dent Notice (SIN) specifying the contents and the recipients of the said notice;

For item 2 in the evaluation guidelines, clarify that the validation will start upon receipt of the SIR which must be submitted within 2 weeks from its occurrence;

The Committee will have to decide whether the validation shall be done monthly or quarterly.

Align the evaluation guidelines with Section 3.0 of the DMC’s Significant Incident Reporting Proce-dures. Create guidelines for every item in the said section.

Furthermore, the staff was instructed to identify and inform the subcommittee of the DUs with significant incidents but failed to notify the Committee. The staff was also instructed to get the DUs’ their contact num-bers and responsible persons for the purposes of ver-ifying SIRs. Customer Service Standards. The subcommittee, up-on presentation of the draft guidelines for the submis-sion of the DUs’ Customer Service Standards made the following instructions to the staff:

Include in the draft guidelines all the target levels listed in Table 3-1 of the PDC;

Specify that the submission of the report will be per quarter on a monthly basis;

Make another column on the target levels show-ing the DU’s actual monthly average perfor-mance.

Compare NEA’s KPS for ECs and ERC’s PIS for private DUs; and

Review the Magna Carta for Residential Electrici-ty Consumers.

RRSC Meeting held on 18 August 2016 at the DMC Conference Room with 60% Members’ Attendance Revised PDC. The subcommittee reviewed the cor-rections made by the Atty. Tejano after proofreading the draft PDC 2016 Edition. Most of the corrections in the first 4 chapters were carried out by the Committee and the remaining chapters of the draft would be for further discussion in the next meeting. DPSC Meeting held on 23 August 2016 at the DMC Conference Room with 100% Members’ Attendance

Islanding Operations Guidelines. The meeting started with an update on the staff’s coordination with VECO to clarify with their existing procedures for automatic islanding operation. It was observed that VECO has no written procedures. Their islanding operation com-mences automatically by electronic device then con-tinues manually. The comments gathered from the members on the draft guidelines were discussed. The subcommittee focused on the general provisions which covered the definition of islanding and the responsibilities of the DU, embedded generators and system operator. The inclusion of microgrid technologies was deferred and would be studied in the near future.


Compliance 23 1

Non-Compliance 4 3

Not Applicable 0 0

24


RRSC Meeting held on 05 October 2016 at the DMC Conference Room with 100% Members’ Attendance PDC 2016 Edition. The subcommittee reviewed the result of proofreading done by Atty. Ma. Janice Tejano on Chapter 6 of the draft. Most of the original provisions were preferred over the edited ones. The subcommittee instructed the staff to check if there were grammar errors which remained uncorrected. DRPSC Meeting held on 05 October 2016 at the DMC Conference Room with 80% Members’ Attend-ance Other Jurisdictions’ Approaches in Setting their Elec-tric Distribution Reliability Standards. The staff pre-sented their research study on the methods used by other countries in setting their reliability indices stand-ard for Distribution Utilities. It was shown that modifi-cations could be made on the RPS structure; thus, deviations from the common +2 SD practice may also be possible. Benchmarking Reliability Performance Target. The subcommittee commented on the draft technical re-port prepared by the staff regarding the reliability per-formance targets for on-grid ECs. The staff was in-structed to consult the GMC’s Technical Director re-garding their previous study on the matter. Reliability Report. The 2nd Quarter Reliability Report for 2016 was shown using the cumulative values to compare the DUs’ SAIFI and SAIDI values for the past and recent years.

DU’s Online Submission of Reports. The staff pre-sented the interpretation of Prof. Ivan Nilo Cruz of PowerSolv for the computation of reliability indices as provided under ERC Resolution No. 12, Series of 2006. Such interpretations were incorrect as ob-served by Engr. Mark A. Valencia. The staff was in-structed to make a manual sampling and compare it to the method used by Prof. Cruz. CSC Meeting held on 06 October 2016 at the DMC Conference Room with 80% Members’ Attendance

Consolidated DCMRs. The subcommittee reviewed

the consolidated reports and suggested the following:

Reports submitted which were not under oath should not be acknowledged as submitted reports and should be returned to the DUs

Take note of the top three standards which were not complied with by the DUs so the DMC could focus on these standards during compliance as-sessment

Call the attention of the DUs which have not sub-mitted their compliance reports for at least three years

Some DUs which had already been assessed would be revisited

Separate sections for conclusion and way forward should be included in the report.

PSGG Assessment. The subcommittee included the

system operator in the list of recipient of survey ques-

tionnaires for the proposed revisions to the PSGG.

Moreover, they decided to assess Palawan and to

verify from the National Power Corporation (NPC) the

meaning of the word “make” in their Power Plant Op-

erational Report for Existing Area in order to avoid

confusion since the type of fuel was also mentioned

therein.

RRSC Meeting held on 21 October 2016 at the DMC Conference Room with 60% Members’ Attendance Request for Clarifications of NSEP. ERC endorsed to the DMC, in its letter dated 28 September 2016, the request for clarifications of NSEP on the governing rules relating to their intention to start a CHP plant which would produce electricity to their client factory and at the same time sell to third parties. The Com-mittee responded to the queries of NSEP in support to the answers of the ERC to the same queries. DOSC Meeting held on 25 October 2016 at the DMC Conference Room with 100% Members’ Attendance SIR Evaluation Guidelines. The objectives of the pro-posed SIR Evaluation Guidelines presented were amenable to the subcommittee. The subcommittee focused their comments on the procedures to be fol-lowed by the DMC in informing the DUs of their sub-mission of SIRs.

25


FICELCO’s Request for Technical Assistance. FICELCO asked for further recommendations from the DMC for their plant-related power interruptions, system blackout which were previously reported to the DMC. The subcommittee inquired about FICEL-CO’s action on the DMC’s previous recommendations given on 05 May 2015, and upon discovering that FICELCO made no updates on their action, the sub-committee decided to reiterate to FICELCO the same recommendations. Minimum Load Requirement or Voltage Limitation for the Connection of End-Users in the Distribution Sys-tem. The staff presented the issue raised by Engr. Mallillin on the minimum load requirement or voltage limitation for the connection of end-users in the distri-bution system. He claimed that the load, to qualify for general power for both retail and wheeling should be 40 kW and above. He also claimed that there are no qualifying distinctions as to when a customer may connect to any of the primary voltages, and that the customer has the right to choose which voltage to connect to. The subcommittee explained that connection to a higher voltage in the distribution system should con-sider the required additional equipment, the existing demand of the load and the reliability of the system, among others. Without the DIS, the DU has the right to reject a user’s application if such connection poses a threat on the reliability of the distribution system. CSC Meeting held on 26 October 2016 at the DMC Conference Room with 80% Members’ Attendance

Compliance Assessment. Results of the compliance

assessments conducted in CLPC, FLECO, NORECO

II and ZAMECO I were presented to gather com-

ments from the Committee for the drafting of the re-

ports thereon.

CLPC has a total substation capacity of 37 MVA com-

ing from three power substations and nine feeders, is

serving a total of 37,697 consumers in 2015 and with

a system loss of 8.97% as of June 2016. The table

below shows its compliance status:

FLECO has a total substation capacity of 30 MVA

from six power substations with 10 feeders serving

55,955 consumers in 2015. Its SAIFI and SAIDI val-

ues for the same year are 7.71 and 200.89, respec-

tively, both within the maximum reward zones.

FLECO’s status of compliance is shown below:

NORECO II has a total substation capacity of 87.95

MVA from six power substations and 18 feeders with

the total customers of 122,195 for 2015. Its SAIFI is

26.565 which is within the upper neutral zone while

its SAIDI is 882.586 which is within the maximum re-

ward zone. The following is NORECO II’s compliance

status:

ZAMECO I has a total substation capacity of 30 MVA

from four power substations with 11 feeders serving

54,689 customers for the year 2015. Its SAIFI is

18.58 within the neutral zone, while its SAIDI is

657.88 within the maximum reward zone.


Compliance 27 4

Non-Compliance 0 0

Not Applicable 0 0


Compliance 13 0

Non-Compliance 13 4

Not Applicable 1 0


Compliance 18 3

Non-Compliance 8 1

Not Applicable 1 0


Compliance 20 1

Non-Compliance 6 3

Not Applicable 1 0

26


BUSECO is asking for clarification on whether or not

they are compliant to the DSC-PDC-009 Distribution

System Loss Report. The subcommittee agreed that

BUSECO was non-compliant since they did not use

the prescribed ERC template.

The subcommittee directed the staff to include in the

report the DU’s franchise area, voltage level per cus-

tomer, and Section 33 on the Personnel Required

under RA No. 7920 otherwise known as The New

Electrical Engineering Law.

RRSC Meeting held on 02 November 2016 at the DMC Conference Room with 100% Members’ Attend-ance

DOE Audit Policy. DOE Department Circular No.

DC2010-03-0003 which directs all generators, Trans-

mission Service Provider (TSP) and DUs to ensure

adequate and reliable electricity supply was subject

for comment. The Committee’s main concern is the

overlapping of functions between the ERC through

the DMC/GMC and the DOE’s Task Force. The Com-

mittee is also concerned on the possible conflicting

findings/results in the compliance audits conducted

by the concerned entities.

PDC 2016 Edition. The subcommittee reviewed the

initial comments made by the RRSC Chairman, Engr.

Froilan J. Savet, on the clean draft of the revised

PDC. Most of the comments which were focused on

chapters 1-8 and foreword were approved by the sub-

committee with only minor corrections. The output of

this meeting will be presented to the Committee for

approval.

DOSC and DRPSC Joint Meeting held on 09 Novem-ber 2016 at the DMC Conference Room with 100% Members’ Attendance



tem. The following are the major output of the DOSC

and DPSC meeting:

The feeder sizes could be the basis of connection for all DUs. If the customer’s demand is more than the feeder size which requires a dedicated line, application for higher voltage level may be allowed;

Section 43 of EPIRA which states “ensure cus-tomer choice” refers to the options of power sup-pliers and not of the size; and

Voltages at the connection point would depend on technical consideration which could be deter-mined through the conduct of a distribution impact study.

Transmission Losses and SSLA. The subcommittee

studied the initial proposal of PEPOA of allowing the

actual kWh registered at the metering point to be the

total kWh purchase in the computation of the genera-

tion rate and allowable generation rate. Another

meeting was set with representatives of PEPOA,

PEMC, ERC-IED and PHILRECA to provide their in-

put on the matter.

Islanding Operation Guidelines. The latest draft of the

said guidelines was presented to the subcommittee

for their review. Upon reviewing the draft, the sub-

committee made some minor corrections then decid-

ed to endorse the final draft to the Committee for ap-

proval.

DRPSC Meeting held on 22 November 2016 at the DMC Conference Room with 60% Members’ Attend-ance Benchmarking Reliability Performance Target. The staff presented the transitory provisions of the PDC specifying the use of the +1 and +2 standard devia-tions (SD) from the mean value for the distributor’s initial lower and upper cutoff points. It was found out that the use of +1 and +2 SD is arbitrary and should be studied by the utilities and the regulator. Thus, the staff came up with the latest value as a result of their assessment similar to the method used under ERC Resolution No. 1, Series of 2013. Engr. Savet suggested emphasizing in the report that only 65 among the 99 ECs were qualified for the study because of their complete 5-year historical da-

27


ta. The results for the mean and standard deviation of SAIFI and SAIDI using the limited data would be pre-sented to the Committee for approval. Template for Reliability Performance Computation. Engr. Savet updated the subcommittee of his meeting with the DMC’s program provider, PowerSolv, stating that the ERC template used by PowerSolv did not include the following:

Double counting for fault on lateral for the first event and fault on mainline for the second event;

Partial restoration; and Cut jumper approach in isolating trouble

It was suggested that the data and events needed to determine the aforementioned should be studied by the staff and an external consultant could be hired if necessary to assist in the study. The staff could also inquire from the DUs of their usual practice. CSC Meeting held on 29 November 2016 at the DMC Conference Room with 100% Members’ Attendance

Compliance Assessment Reports. The subcommittee

reviewed the summary reports on the compliance as-

sessments conducted in CAPELCO, NORSAMELCO,

QUIRELCO, SEZ, SURNECO and ZAMCELCO for

the year 2015.

CAPELCO has a total substation capacity of 60 MVA

from five power substations with 19 feeders. It is

serving 136,345 customers. Its SAIFI and SAIDI val-

ues are 8.17 and 389.75, respectively, which are

within the maximum reward zone.

NORSAMELCO’s total substation capacity of 25 MVA

from three power substations with 11 feeders serves

a total of 62,228 customers. Its SAIFI value is 11.11

while its SAIDI value is 726 which are both within the

maximum reward zone.

QUIRELCO has a total substation capacity of 15MVA

from two power substations with four feeders cover-

ing 46,512 member-consumers. Its SAIFI and SAIDI

values of 0.73 and 200.45, respectively, are both

within the maximum reward zone. Below shows its

compliance status:

SEZ has a total substation capacity of 100 MVA com-

ing from four power substations with nine feeders

serving a total of 3,032 members-consumers. Its sys-

tem loss is at 2.85% as of the third quarter of 2016.

The following table shows its compliance status:

SURNECO’s total substation capacity of 40 MVA

from four power substations with 10 feeders serves

70,213 member-consumers. Its SAIFI and SAIDI val-

ues of 21.896 and 2095.328, respectively, are both

within the neutral zone. The table below shows its

compliance status:


Compliance 12 1

Non-Compliance 14 3

Not Applicable 1 0


Compliance 27 4

Non-Compliance 0 0

Not Applicable 0 0


Compliance 16 1

Non-Compliance 11 3

Not Applicable 0 0


Compliance 8 2

Non-Compliance 19 2

Not Applicable 0 0


Compliance 16 1

Non-Compliance 11 3

Not Applicable 0 0

28


ZAMCELCO has a total substation capacity of 130

MVA coming from seven power substations with 11

feeders serving 121,474 member-consumers. Its

SAIFI value of 41.275 is within the maximum penalty

zone while its SAIDI value of 1,861.919 is within the

neutral zone. The following table shows its compli-

ance status:

PSGG Ocular Visit. The staff informed the Committee

of the request made to PALECO for its data such as

Power Supply Agreements (PSA) in order to study its

optimal dispatch for the Palawan main grid. The

Committee instructed the staff to get a copy of PALE-

CO’s load profile in order to determine the base, in-

termediate and peak loads.

BUSECO’s Request for Reconsideration. The Com-

mittee was informed of BUSECO’s letter requesting

for a reconsideration of the previous decision by the

Committee on BUSECO’s non-compliance with the

standards DSC-PDC-009 Distribution System Loss

Report. The Committee, upon deliberation, reconsid-

ered and decided that BUSECO was already compli-

ant with the said standard.

DOSC Meeting held on 02 December 2016 at the DMC Conference Room with 60% Members’ Attend-ance Transmission Losses and SSLA. PEPOA suggested excluding the SSLA in the computation of the Total kWh Purchased and Generated (TPG) in cases where the DUs neither operate nor maintain the sub-transmission assets. They added that the caps on the DUs’ system losses refer only to those which are part of their assets. They also asked for clarification on the exact definition of TPG as provided by the ERC Resolution No. 16, Series of 2009.

PEMC presented sample computations of SSLA where the metering point is not located in the Meter-ing Trading Node (MTN). PHILRECA’s issue was not on the technical computa-tion of the SSLA but on which entity the SSLA should be charged. They also expressed their concern that SSLA is not recoverable if the DU has already ex-ceeded its system loss cap. ERC-IED reminded everybody that rules on the treat-ment of SSLA and other additional charges are al-ready in place. They suggested that, instead of ad-justing the rules, they should relocate the metering point to the MTN or the connection point. PEMC, PEPOA and PHILRECA were requested to submit sample computations and simulations which would illustrate their concerns. Another subcommittee meeting was set for their presentations.


Compliance 6 2

Non-Compliance 21 2

Not Applicable 0 0

29


Special Meeting held on February 2, 2016 at the ERC Hearing Room with 54% Members’ Attendance Requirements for Embedded Generators. A public consultation and expository presentation on the draft Embedded Generator’s Connection and Operational Requirements was conducted to give opportunity to all stakeholders to explain their submitted comments and to raise additional issues emanating from the dis-cussions. Among the contentious issues raised dur-ing the public consultation were:

inclusion of the embedded generation in the transmission charges;

System Integrity Protection Scheme (SIPS) re-quirement for large embedded generators; and

direct control of the system operator on the scheduling and dispatch of embedded generators.

The DMC was consistent with their stand that the em-bedded generators do not have any relationship with the system operator nor TNP since the contract is only between the embedded generator and the DU. It is the responsibility of the DU to determine first in the DIS if the connection and operation of the embedded generator will have an impact to the distribution sys-tem. If none, the more that it will not have an impact to the grid. Special Meeting held on February 4, 2016 in Cebu City with 69% Members’ Attendance Requirements for Embedded Generators. This meet-ing covers the public consultation conducted by the DMC for the expository presentation of its draft re-quirements. Representatives from Aboitiz Power, BREA, GMC, MERALCO, NGCP, NREB-TWG, PEMC, and Vivant Corporation raised their com-ments. The first comment was on the proposed size of large generator which is different from the size provided by the PGC. The classification as large embedded gen-erator is critical since it involves the requirements of RTUs and other communication equipment. The DMC emphasized that the classification of large em-bedded generator in the PDC entails certain require-ments for reliability and efficiency of the distribution system which are different from the point of view of

the transmission and generation systems.

Next comment was on the inclusion of commercial operations of the embedded generators. The DMC made a firm stand that commercial operations should be under WESM rules. There was also a suggestion to avoid using absolute values in the PDC and PGC since they are subject to changes. The DMC an-swered in the negative, explaining that different abso-lute values imply different connection and operational requirements. Some questions raised were only mat-ters for clarifications which could be easily answered by existing rules. Special Meeting held on April 19, 2016 at the DMC Conference Room with 69% Members’ Attendance NGCP Programs. A meeting with NGCP was con-ducted to inquire on the direction of the NGCP in the coming years. Representatives from the NGCP pre-sented their major programs which included major network developments, metering CAPEX and the sta-tus of the construction of transmission lines approved by the ERC. The DMC focused their questions on the current plans of installing additional substations to address congestion problems including their corre-sponding expenses. There was confusion on how the NGCP should treat their proposed projects whether as CAPEX or operating expenses and this was an-swered by the NGCP explaining that since there were no clear cut rules on how to treat each item, they just follow the previous decisions of the ERC on their ap-plications. NGCP requested the DMC to furnish them copies of the Distribution Utilities’ planning data to guide them with their expansion plans for purposes of forecasting demand of electricity. Planning Session held on June 8, 2016 in Davao City with 69% Members’ Attendance The chairman of each subcommittee presented the on-going activities and remaining targets for 2016, and the plans and proposed programs for 2017 to guide the DMC to the right direction. Additional inputs and programs for next year were included in the cal-endar of activities.

Special Meetings

30


Management Committee Meeting held on 09 August 2016 at the DMC Conference Room with 100% Mem-bers’ Attendance Study Leave Policy. The staff proposed the said poli-cy which was similar to the Civil Service Commission (CSC) Guidelines on Study Leave in which an em-ployee taking up a board/bar examination may take a time-off from work for up to 3 months with pay. The ManCom was not amenable with the proposal but agreed that each application for study leave would be decided on a case-to-case basis. They also decided to grant scholarship to the directors who do not pos-sess the master’s degree to capacitate them in their position. Personnel Manual. The staff was instructed to update the qualifications and job descriptions of each em-ployee and to compare the DMC’s existing policies with those of MERALCO and other companies in the industry. Management Committee Meeting held on 09 August 2016 at the DMC Conference Room with 100% Mem-bers’ Attendance Study Leave Policy. The ManCom was not amenable to the proposed policy which was similar to that of the CSC but decided to create a committee which would be responsible in approving study leave applications of employees based on their circumstances. Personnel Manual. The ManCom decided that before they review the proposed manual, the DMC employ-ees should study it first. They also instructed the con

cerned staff to align the qualifications of the DMC plantilla positions with those of the ERC. Finally, the staff was also instructed to research on the company policies of ERC, MERALCO and other companies in the energy industry.

Annual Meeting held on 8 December 2016 at the DMC Conference Room with 85% Members’ Attend-ance

DMC Activities. The staff updated the Committee of the status of the projects and activities of each sub-committee which remain to be accomplished within the year. This was followed by accomplishments of the Technical and Administrative Group which were not included in this year’s work plans. Last in the re-port were the targets and activities of each subcom-mittee for 2017.

Election of Officers. Upon gathering votes of the Committee for the offices of the Vice-Chairman, Treasurer and Secretary, the election resulted in the reappointment of the incumbent officers.

31

As of 31 December 2016, the DMC has thir-

ty personnel; twenty-seven regular employ-

ees and three project employees.

Nine of the regular staff were hired in the

first semester while two project employees

were hired in the second semester of the

year.

Two engineering positions were vacated by

the resignation of the employees in the mid-

dle of the year but were immediately filled

in.

Atty. Ma. Janice R. Tejano was retained as legal counsel for another year at the rates specified under the 2016 Engagement Con-tract.

Personnel Movement


The Committee approved the purchase of three sets of desktop computers, one unit laptop, three units MS Office, five units UPS, fifteen sets keyboard and fifteen units mouse. The computers are for the new per-sonnel and for the replacement of existing units which have fully depreciated while the peripherals are for replacement of the defec-tive ones and reserves. JRD Woodworks was hired by the DMC for the construction of the multi-purpose hall/hearing room to be used by the DMC and ERC for meetings, consultations and other similar activities. The DMC also engaged the credit line ser-vices of the Philippine Airlines (PAL) and the actuarial services of Institutional Synergy, Inc. (InSync).

ADMINISTRATIVE REPORTS

Management of Resources

Personnel Development

The staff were sent to the trainings/seminars on Distribution System Modeling & Analysis Model (CPD1), Distribution Utility CAPEX (CPD2), Basic WESM Training, 5th Philippine Profes-sional Summit, 6th Annual Generators Conference for Luzon & Visayas, 71st PICPA Annual National Convention (ANC), 41st IIEE Annual National Convention, Office Files and Records Management , Performance Management Training, Account-ancy Week Celebration 2016, Workshop on Voluntary Quality Assurance Review (QAR) Program, Tax Exemption and Tax Aspect of Non-Stock Non-Profit Organizations, NGOs, Foun-dations, Communication Assertiveness, Effective Strategic Planning for Business Units, SEC and BOA Updates, IFRS for SMEs, Distribution Impact Studies, Benefits for Corporate Governance, Workshop on Internal Control: COSO Frame-work, Mastering Withholding Taxes, 3rd Philippine Tax & Ac-counting Congress, PFRS Updates, IIEE National Mid-Year Convention 2016, Culture of Excellence, Leadership and Loy-alty (CELL) Program-Personal Branding, What is FS Compila-tion/Meet the BOA, Free Control Panel Training, Condition-Based Maintenance Training, Powerful Presentation Skills, Ef-fective Business Writing, Level Up Leadership, and Writing for Results. Chairman Jaime V. Mendoza and Executive Director Roberto C. Del Rosario attended the three-day seminar conducted by the Distributech 2016 in Orlando, Florida, U.S.A from February 9-11, 2016. DTECH2016 is the premier North American trade show of equipment vendors and service providers from across the transmission, distribution and smart grid technology indus-tries.

32

At the start of the year, the DMC casted their votes for the Industrial Customer’s representative then endorsed the winning candidate to the ERC for its approval. Engr. Gaylord A. Mendoza, was appoint-ed by the ERC on 9 February 2016 for a three-year term. As this year ends, the terms of appointment of Engr. Jose Red-mond Eric S. Roquios and Engr. Jorge H. Lucas are expiring; how-ever, they are subject to reap-pointment for another term. Upon receiving the consent for reap-pointment from their respective organizations, the DMC endorsed to the ERC the reappointment of Engr. Roquios and Engr. Lucas. On 20 December 2016, ERC ap-proved their reappointment until 31 December 2019.

MEMBERSHIP

21F Pacific Center Bldg., San Miguel Ave. Ortigas Center, Pasig City Phone: (02) 706-2355 / (02) 706-3171 Email: [email protected]

Member’s Attendance

Sector JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC %

Grid Owner 1 1 1 1 1 1 1 1 1 75

System Operator 1 1 1 1 1 1 1 1 1 1 83

Luzon PDUs 1 1 1 1 1 1 1 1 1 75

Visayas PDUs 1 1 1 1 1 1 1 1 1 1 1 1 100

Mindanao PDUs 1 1 1 1 1 1 1 1 1 75

Luzon ECs 1 1 1 1 1 1 1 1 1 1 83

Visayas ECs 1 1 1 1 1 1 1 1 1 1 1 1 100

Mindanao ECs 1 1 1 1 1 1 1 1 1 1 1 92

Embedded Generator 1 1 1 1 1 1 1 1 1 1 1 92

Residential Consumers 1 1 1 1 1 1 1 1 1 1 1 92

Commercial Customers 1 1 1 1 1 1 1 1 1 1 1 92

Industrial Customers 1 1 1 1 1 1 1 1 1 90

IIEE 1 1 1 1 1 1 1 1 1 1 1 92

Percentage Attendance 92 85 77 85 77 85 92 100 77 92 92 85

ERC 1 1 1 1 1 1 1 1 1 1 1 1 100

NEA 1 1 1 1 1 1 1 1 67

DOE 1 1 1 1 1 1 50

Percentage Attendance 67 67 67 67 100 67 67 100 67 67 67 100

Legend: 1 present absent

vacant

Date post:	02-Apr-2020
Category:	Documents
Upload:	others
View:	6 times
Download:	0 times

Distribution Management Committeedmc.org.ph/file-manager/files/annual report2016.pdf · System Loss...

Documents