Department Circular No. 2005-02-001
DIRECTING THE
NATIONAL POWER
CORPORATION,
NATIONAL TRANSMISSION
CORPORATION, DISTRIBUTION UTILITIES AND INDEPENDENT POWER PRODUCERS TO
ADOPT CONTINGENCY MEASURES TO MINIMIZE THE IMPACT OF EL NIÑO IN THE
WHEREAS, it is the policy of the state to ensure a
continuous, adequate and economic supply of energy through the judicious
conservation, renewal and efficient utilization of energy which includes
electric power, pursuant to Section 2 of
Republic Act (R.A.)
No. 7638, known as the “Department of Energy Act of 1992”;
WHEREAS, the
Department of Energy (DOE)
exercises supervision and control over all government activities relative to
energy projects pursuant to Section 5 (h) of
R.A. No. 7638,
as amended by
R.A. No. 9136, known as the “Electric Power
Industry Reform Act of 2001” and that the
DOE
is authorized under Section 5 (p) thereof to formulate rules and regulations as
may be necessary to implement the objectives of said
R.A No.
7638, as amended;
WHEREAS, scientific studies predict the impending
occurrence of the El Niño phenomenon and its effects in the months covering
March to December 2005, which will directly imperil the supply of electric
power from hydro resources especially in
WHEREAS, the availability of the electricity is vested
with public interest such that it is incumbent upon the government to take the
necessary measures to ensure the continuous operation of vital industries in
Mindanao by ensuring that there will be no interruptions in the delivery of
electricity:
NOW, THEREFORE, in view of the foregoing,
I, Vincent S. Pérez, Jr., Secretary of Energy, hereby issue the following
guidelines:
SECTION 1. Additional Generating
Capacity – The
National Power
Corporation (NPC) and the
National
Transmission Corporation (TransCo) shall be responsible for ensuring the
transfer and operation of a 32 MW Power Barge from Iloilo to Mindanao before
April 1, 2005 and the restoration of operations of Iligan Diesel Power Plant
(IDPP) before May 1, 2005. A second 32
MW Power Barge shall be transferred and be operational by June 1, 2005.
TransCo
shall provide the transmission line facilities appropriate for these power
barges.
SECTION 2. Reserve Requirement. – The
TransCo shall adopt the capacity of the
largest single unit as the reserve requirement of the
SECTION 3. Ancillary Services. – The
TransCo shall procure
ancillary services to ensure desirable reserve margin. The reserve shall be sourced from embedded
generators in the grid over and above
NPC’s
available reserve.
SECTION 4. Conservation of Water
Resources. – To facilitate the
impounding of water in preparation for dry months,
TransCo shall implement a 4-hour operation of
non-hydro power facilities upon advice by
NPC
Mindanao Generation.
SECTION 5. Demand Side
Management. – The
DOE shall oversee the strict implementation
by all consumers, private distribution utilities and electric cooperatives of
Demand Side Management for the duration of this Circular.
SECTION 6. Effectivity. – This Circular shall take effect fifteen (15) days after its
publication in a newspaper of general circulation, and shall be effective until
the date that is the earlier of the end of El Niño in
Done this 31st day of January 2005, in
VICENTE S. PEREZ, JR.
Secretary
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