Energy
Regulations No. 1-95
Rules and Regulations
Implementing Executive Order No. 215
On Private Sector
Participation in Power Generation
Pursuant to
Section 2 of Executive Order No. 215 (EO 215) allowing
private sector participation in power generation activities, and relevant
provisions of Republic Act No. 7638 (RA 7638) creating
the Department of Energy (DOE), the DOE hereby promulgates the following amended
Rules and Regulations to implement the provisions of EO 215.
PART
I
GENERAL
PROVISIONS OF THE RULES AND REGULATIONS
The
succeeding Articles shall include the general provisions to be followed for all
types of generating facilities owned by the private sector participating in
power generation.
ARTICLE
I
STATEMENT OF POLICY, SCOPE
AND DEFINITION OF TERMS
SECTION
1. Statement of Policy. – Pursuant to the general provisions of RA 7638, it is hereby declared a policy of the state to
ensure a continuous, adequate and economic supply of energy with the end in view
of ultimately achieving self-reliance in the country’s energy requirements
through the economic development of indigenous energy resources and through the
efficient utilization of energy.
The DOE shall provide policy directions for the
formulation of power system expansion plans and programs to achieve the
above-stated objectives, following the approved national economic plan and
consistent with policies on environmental protection, and conservation and
maintenance of ecological balance.
Pursuant to
Section 1 of EO 215, the National Power Corporation (NAPOCOR)
shall continue to be responsible for the strategic and rational development of
the country’s power grids including the construction of associated generating
facilities and the setting up of transmission line grids in Luzon, Visayas, and
Mindanao.
However, private corporations, cooperatives or similar associations
shall be allowed to construct and operate electric generating plants and
associated transmission facilities.
Furthermore,
it is hereby declared the policy of the State to promote competition in
generation, and to increase the responsibilities of all utilities to perform
their own planning, including the acquisition of an efficient portfolio of
generation and demand-side resources. It
is the intent of the State that these rules promote the ability of all
utilities to meet these expanded responsibilities, in particular by ensuring transmission
access at fair prices and by establishing standard NAPOCOR tariffs for services
required by utilities when contracting for other sources of generation.
SEC. . 2. Scope. – These Rules and Regulations shall govern
the relation between the DOE, NAPOCOR, the National Electrification Administration (NEA),
the Energy Regulatory Board (ERB), private
electric distribution utilities and cooperatives, and such private
corporations, cooperatives or similar associations as may be allowed to own and
operate electric generating plants and facilities that will sell all or excess
electricity production to the NAPOCOR,
other electric utilities, and end-users in areas within and outside the NAPOCOR transmission grids, pursuant to
Section 1 of EO 215.
Theses
rules and regulations shall be the interim set of rules that shall be amended,
replaced, or repealed in due time as restructuring and privatization efforts
for the Philippine power industry moves through ongoing and anticipated phases
towards an increasingly competitive and efficient industry structure for the
Philippine power sector.
SEC.
3. Definition of Terms. – As used in these rules and regulations, the
following terms shall have the following respective meanings:
a. “Avoided Cost” means the incremental cost
that an electric utility would incur towards meeting its anticipated power
demand if such utility does not buy power from a Private Sector Generation
Facility (PSGF).
b. “Back-up Power” means electricity supplied by
NAPOCOR, or an electric utility to
replace electricity ordinarily generated by PSGF during unscheduled outages of
the latter.
c. “Block Power Production Facility (BPPF)”
means any electric generating facility intended primarily to sell all or the
bulk of its power output to the grid, consistent with the development plans
formulated by NAPOCOR and/or electric
utilities, approved by the DOE.
d. “Bottoming-cycle Cogeneration Facility” means
a cogeneration facility in which the energy input to the system is first
applied to a useful thermal energy process, and the reject heat emerging from
the process is then used for power production.
e. “Capacity” means the load for which a
generating unit, generating station, or other electrical machine is rated by
the manufacturer.
f. “Cogeneration Facility” means a facility
which produces electrical and/or mechanical energy and forms of useful thermal
energy (such as heat or steam), used for industrial, commercial, heating, or
cooling purposes, through the sequential use of energy.
g. “Coincident Maximum Demand” means the maximum
demand at the instant of greatest load of NAPOCOR.
h. “Department
of Energy” or “DOE” refers to the
government agency created pursuant to RA 7638
promulgated on 9 December 1992.
i. “Developmental Plans”, refers the Power
Development Program or PDP formulated and updated yearly by the NAPOCOR and/or individual electric
utilities
.
j. “Distribution System”, means the electric
system of an electric utility which delivers electricity form transformation
points on the transmission system to the consumers or end-users.
k. “Electric Cooperative” shall mean a
corporation under RA 6038 or PD 269 as amended by PD 1645, or a cooperative supplying or empowered to
supply electric service.
l. “Electric Energy”, as commonly used in the
electric utility industry, means kilowatt-hours.
m. “Electric Utility System”, refers to the
distribution system of an electric cooperative, local-government-owned and
privately-owned electric utility operating within the NAPOCOR and electric utility power grids.
n. “Electric Utility”, refers to the electric
cooperative, local-government-owned and privately-owned electric utility
operating within the NAPOCOR grids or
other electric systems.
o. “Energy Industry Administration Bureau” or
“EIAB” refers to the Bureau under the DOE
that shall, among others, assist in the formulation of regulatory policies to
encourage and guide the operations or both government and private entities
involved in energy resource supply activities including independent power
production and electricity distribution.
p. “Energy Planning and Monitoring Bureau” or
“EPMB” refers to the Bureau under the DOE
that shall, among others, supervise, coordinate, and integrate the formulation,
monitoring, and review of programs and plans for energy supply development such
as power development, local energy resource development and production, and
energy importation.
q. “Energy
Regulatory Board” or “ERB” refers to
the quasi-judicial agency created under Executive Order 172,
dated 8 May 1987, which, among other functions, fixes and regulates the prices
of petroleum products and the power rates of electric utilities, now including
the NAPOCOR and the electric
cooperatives, pursuant to Section 18 of RA 7638.
r. “Energy Resource Development Bureau or ERDB”
refers to the Bureau under the DOE that
shall, among others, assist in the formulation and implementation of policies
to develop and increase the domestic supply of local energy resources like
fossil fuels, nuclear fuels, hydropower and geothermal resources.
s. “Total Energy Input”, for purposes of
calculating thermal efficiencies of cogeneration facilities, is defined as the
total kilograms of fuel used multiplied by the Higher Heating Value (HHV) of
the fuel input/s as received.
t. “Franchise Area” shall mean a geographical
area franchised to a public service entity such as; electric cooperative, local
government or privately-owned electric utility system.
u. “Grid” means the electrical system of
interconnected transmission lines, substations and generating plants of NAPOCOR or the concerned electric
utility, as the case may be.
v. “Host Utility” means the franchised electric
utility operating nearest to where, or within whose area a qualified PSGF is
located.
w. “Incremental PSG Power” means electricity
supplied by NAPOCOR or an electric
utility, regularly used by an owner of a qualified private sector generation
facility in addition to that which the latter generates itself. It is the difference between the total
electricity requirement of a private sector generator and the amount it
generates.
x. “Interconnection” means the connection of a
generating facility or a power distribution facility to an electric utility
system or the NAPOCOR grid.
y. “Interconnection Costs” means the costs of
all necessary interconnecting electrical equipment, protective devices and
control equipment needed by a private sector generator for its PSGF to permit
interconnected operations with NAPOCOR
or an electric utility.
z. “Interruptible Power” means electricity
supplied by NAPOCOR or an electric
utility to private sector generator subject to interruption by the former.
a.1
“Maintenance Power” means electricity supplied by NAPOCOR or an electric utility, to a
private sector generator whose PSGF is undergoing scheduled maintenance work.
b.1
“Mini-Hydro Facilities” means hydro facilities with capacities of 101 kilowatts
to 10,000 kilowatts.
c.1 “National Electrification Administration” or “NEA” means the corporation, wholly-owned or
controlled by the government, created under the provisions of Presidential Decree
No. 269, as amended of 06 August 1973, and tasked primarily to administer the
rural electrification program.
d.1 “National Power Corporation” or “NAPOCOR” means the corporation,
wholly-owned and controlled by the government, formed under the provisions of Republic Act No. 6395 of 10 September 1971 and tasked
primarily to undertake the development of hydroelectric generation of power and
the production of electricity from nuclear, geothermal and other sources, as
well as the transmission of electric power on a nationwide basis.
e.1 “Peak
Demand” means the maximum integrated load demand occurring for thirty (30)
minutes continuously.
f.1 “Person”
means any natural person, firm, association, corporation, business trust and
partnership.
g.1
“Primary Energy Source” means the fuel used for the generation of electricity,
except that such terms do not include:
1. The minimum amounts of fuel required for
ignition, start up, testing, flame stabilization, and control uses, and
2. The minimum amounts of fuel required to
alleviate or prevent:
I.
unanticipated equipment outages, and
II. emergencies, directly affecting the public
health, safety or welfare, which would result from electric power outages.
h.1. “Private Sector Generation Facility, (PSGF)”
means:
1. any cogeneration facility meeting the minimum
thermal efficiency standards set by the DOE
for cogeneration systems, or
2. any renewable resource power production
facility, or
3. any electric generating facility that shall
use indigenous energy resources as its primary energy source, or
4. any electric generating facility,
particularly a Block Power Production Facility, intended primarily to sell all
the bulk of its power output to the grid, consistent with the development plans
formulated by NAPOCOR and/or electric
utilities, and approved by the DOE.
i.1. “Private Sector Generator” refers to the
owner and/or operator of the accredited PSGF.
j.1. “Purchase” means the purchase of electricity
by NAPOCOR or an electric utility from
a private sector generator.
k.1. “Rate” means any price, tariff or charge, as
classified by NAPOCOR or the electric
utility with respect to sale or purchase and/or wheeling of electricity.
l.1
“Renewable Energy Sources” means sources of energy that are regenerative or
virtually inexhaustible such as biomass, solar, wind, geothermal or hydro, and
also means by-product materials that, but for their use as a source of energy
would be considered waste.
m.1. “Renewable Resource Power Production Facility
(RRPPF)” means a facility which produces electricity by the use of renewable
energy resources as its primary energy source.
n.1. “Sale”
means the sale of electricity by NAPOCOR
or an electric utility to a private sector generator.
o.1. “Spinning Reserve” means generating capacity
that is on-line and ready to take load, but in excess of the current load of
the electric system.
p.1. “System Emergency” means a condition on NAPOCOR’s or an electric utility’s system
which is likely to result in imminent significant disruption of service to
customers or is imminently likely to endanger life or property.
q.1
“Thermal Efficiency”, as it pertains to cogeneration facilities, is defined as
the ratio of useful energy output to the total energy input.
r.1. “Topping-cycle Cogeneration Facility” means a
cogeneration facility in which the energy input to the facility is first used
to produce useful power with the reject heat recovered from power production
then used to provide useful thermal energy.
s.1
“Uncontrollable Forces” means any occurrence beyond the control of a party
which causes that party to be unable to perform its obligations and which the
party has been unable to overcome by the exercise of due diligence, including
but not limited to flood, drought, earthquake, storm, fire, pestilence,
lightning and other natural catastrophes, epidemic, war, riot, civil
disturbance or disobedience, action or inaction of legislature, judicial or
regulatory agencies, or other proper authority affecting the operation of the
PSGFs, failure or sabotage of facilities which have been maintained in
accordance with good engineering and operating practices in the Philippines.
t.1 “Useful
Energy Output”, for purposes of calculating thermal efficiencies of
cogeneration facilities, is defined as the sum of electricity and/or mechanical
power plus the useful heat in the steam or hot exhaust gases and such other
thermal energy recovered for useful purposes.
u.1. “Wheeling”
means the provision of electric energy transmission services by NAPOCOR or an electric utility for the
purpose of enabling the owner of an accredited PSGF to transmit power to
another system or end-user.
ARTICLE
II
JURISDICTION OF THE
DOE,
NAPOCOR, NEA AND ERB
SEC.
1. Jurisdiction of the DOE.
– The DOE shall have overall
jurisdiction in the accreditation of qualified Private Sector Generating
Facilities (PSGFs). As part of its
rule-making powers granted under RA 7638, the DOE shall have the authority to amend these
Rules and Regulations as may be necessary if the common good so requires, as
determined upon public hearing to ascertain the nature of the exigency or cause
requiring the introduction of amendments.
Pursuant to Section 12(c) of RA 7638, the review,
evaluation, and accreditation of qualified private sector proposals shall be
undertaken by the EIAB of the DOE, based
on the procedures and criteria for accreditation set forth in these Rules and
Regulations.
The
Director of the EIAB shall have the authority to issue Certificates of
Accreditation, as well as denials of requests for accreditations, as the case
may be, for and in behalf of the DOE. Decisions of the EIAB as regards applications
for accreditations as a qualified PSGF are appealable within a period of thirty
(30) days to the Secretary of the DOE, who
in turn must decide on the case within sixty (60) days after receipt of the
appeal.
SEC.
2. Jurisdiction of NAPOCOR. – NAPOCOR
shall have responsibility for the formulation and implementation of such programs
as are necessary to ensure the reliability of electricity throughout the
country’s power grids, consistent with the general and specific policies
adopted by the DOE. In this regard, NAPOCOR may undertake required generation
and transmission projects through private sector participation, subject to the
provisions of these Rules and Regulations, and supplemented by Republic Act No. 6957 (“An Act Authorizing the Financing,
Construction, Operation and Maintenance of Infrastructure Projects by the
Private Sector and For Other Purposes”), the amendments thereto, and its
implementing guidelines. Pursuant to NAPOCOR’s functions as a bulk power
generation and transmission utility, high-voltage wheeling of electricity
generated by qualified PSGFs to the concerned electric utility or end-user
shall be provided by NAPOCOR, where
necessary.
The DOE shall require NAPOCOR and individual electric
utilities, to submit power development programs which reflect an efficient
portfolio of generation and demand-side resources, for the DOE’s review and approval, indicating
projects to be undertaken through private sector participation, the
justifications for such, and indicative timetables for undertaking competitive
procurement of each of the listed projects.
NAPOCOR and/or individual electric
utilities shall seek the DOE’s prior
approval to implement generation projects not included in the approved power
development plans of the respective electric utilities.
SEC.
3. Jurisdiction of the NEA.
– Pursuant to the NEA’s role as a
developmental and financial institution to electric cooperatives, the NEA shall make appropriate recommendations to
the DOE regarding applications of electric
cooperatives to build and operate power generation facilities for
self-generation, as defined and allowed in the relevant provisions of Part IV
of these Rules and Regulations, or applications of electric cooperatives for
authority to contact their power supply requirements with PSGFs, consistent
with the provisions of Part III of these Rules and Regulations.
Such
endorsement by the NEA shall consider the
impact of an electric cooperative’s power generation proposal on the latter’s
ability to render efficient and reliable service to its existing customers, to
expand its service coverage to non-electrified areas, and to continue its debt
service to the NEA. In endorsing a cooperative’s application, the
NEA shall make no representation as to the
overall viability of the cooperative’s operations.
SEC.
4. Jurisdiction of the ERB.
– The ERB shall have jurisdiction
over the implementation of regulations concerning power rates of investor-owned
electric distribution utilities, electric cooperatives, and NAPOCOR.
Such authority shall include the review and approval of tariff schedules
for wheeling, back-up and maintenance power, incremental PSG power, and reserve
capacities carrying fees, as well as the review and approval of power purchase
agreements of NAPOCOR and other
franchised electric utilities between qualified PSGFs with respect to the
reasonableness of power purchase rates and their corresponding impacts on
electric utilities’ rates of return, as well as on end-user tariffs.
The ERB shall hear and arbitrate disputes between
and/or among franchised electric utilities, NAPOCOR,
and qualified PSGFs on matters which have implications on rates of NAPOCOR and/or electric utilities.
ARTICLE III
QUALIFICATIONS
OF A
PRIVATE
SECTOR GENERATION FACILITY
AND A PRIVATE
SECTOR GENERATOR
SEC. 1. Ownership. – Qualifications as to ownership of a PSGF
shall be any of the following:
a. A PSGF may
be constructed, owned and operated by private persons, private corporations,
cooperatives or other similar associations not primarily engaged in the
transmission and/or distribution of electricity, and shall be governed by
applicable Philippine Laws on corporations or similar associations as to
registration, independent auditing, taxation and other related matters as
provided by said laws. Foreign entities
may participate in electricity generation subject to applicable Philippine
laws.
b. Private
corporations, cooperatives and similar associations primarily engaged in the
transmission and/or distribution of electricity, referred to in these Rules and
Regulations as electric utilities, may own, construct ands operate generating
facilities, subject to electric utility regulations concerning rates, financial
limitations, taxes and other laws applicable to their operations as electric
utilities, and subject to the specific provisions of Part IV for “Electric
Utility-Owned Generation Facilities”.
c. Companies
or consortium of companies, whether private or government-owned, primarily
engaged in indigenous energy upstream exploration, development and production
activities, may own, construct and operate generation facilities to the extent
that the primary energy source in power generation shall come from the local
production of such companies or consortiums of companies, and subject to
limitations provided by relevant legislations, regulations, and/or service
contract terms of the DOE, and the specific provisions on Block
Power Production Facilities (BPPFs), where applicable.
Majority interest of NAPOCOR and/or any other electric utility
on the equity of a PSGF shall be considered as ownership by an electric
utility, and shall, thus, be subject to applicable utility regulations. A PSGF in which NAPOCOR and/or any other utility has
minority interest, and in which the majority interest is being held by
non-utility companies shall be governed by applicable laws other than for
electric utilities.
For entities availing of incentives offered under the
government’s annual Investment Priorities Plan, such entities
shall be guided by relevant legislation thereto.
SEC. 2. Technical
and Financial Qualifications. –
Private Sector Generators, more particularly private corporations,
cooperatives, and similar associations seeking to construct, own, and operate
power generation facilities under these Rules and Regulations, must possess the
technical capability (i.e., engineering and management qualifications) and a proven
track record in the field of power generation, particularly in the generation
technology being proposed. A Private
Sector Generator must likewise demonstrate the financial strength and
capability to undertake the scale of project being proposed under these Rules
and Regulations.
SEC. 3. Facility
Classification. – A PSGF referred to
in this Part of these Rules and Regulations shall include the following
electric generating plants:
a. Electric
generating facilities intended primarily to sell all the bulk of its power
production to the grid (i.e., to NAPOCOR or to other electric utilities),
consistent with the developmental plans formulated by NAPOCOR and/or electric utilities and
approved by the DOE;
b.
Cogeneration facilities such as topping-or bottoming-cycle facilities,
utilizing fossil fuels or a blend of fossil fuels and renewable energy forms,
meeting engineering, operating and efficiency standards as prescribed in
Section 5 of this Article;
c. Renewable
Resource Power Production Facilities such as those using biomass, solar, wind,
geothermal, hydro or wastes as the primary source of energy; and
d. Electric
generating facilities that shall use indigenous energy resources as their
primary fuels.
SEC. 4. Size
of Generating Units. – The maximum
size of a generating unit of a PSGF shall be limited to the existing largest
generating unit size or 10% of the coincident maximum demand of the concerned NAPOCOR grid or as allowed by DOE.
For areas not covered by the main transmission networks of NAPOCOR, the size of generating units
shall be limited by the power demand in the concerned isolated area, island or
grid, taking into account reasonable projections of load growth over the period
of PSGF commissioning.
SEC. 5. Engineering,
Operating and Efficiency Standards.
– A PSGF shall be guided by internationally-accepted standards in
engineering, operations and reliability.
Cogeneration facilities utilizing fossil fuels, or a blend of fossil and
renewable energy sources, shall be required to meet the minimum thermal
efficiency standard set forth in Part II of these Rules and Regulations, for
purposes of availing incentives offered under the Investment Priorities Plan of
the Board of Investments and/or securing a DOE accreditation as a qualified
Cogeneration facility under these Rules and Regulations.
SEC. 6. Economic
Criteria. – Any proposed electric
generating facility should be able to demonstrate its potential for providing
net foreign exchange savings to the country, by virtue of:
a. generating
electric energy more efficiently or cheaper than can otherwise be generated by
existing or programmed generation facilities under the power development plans
of NAPOCOR and/or other electric utilities;
b. using
indigenous and/or renewable energy sources; and
c. accessing
lower costs of capital, cheaper plant investment, and/or locally manufactured
equipment..
ARTICLE IV
GENERAL PROCEDURES
FOR APPLYING FOR
ACCREDITATION
AS A PRIVATE SECTOR
GENERATION
FACILITY
SEC. 1. Contents
of Application. – The contents of
application for accreditation as a qualified PSGF should generally contain the
following information:
a. Name and
address of the applicant and location of the proposed facility;
b. Project
organizational setup;
c. Names of cooperating/participating
companies, equity participation, incorporation documents, audited financial
statements for the last two fiscal years, and records of successful experience
in similar activities in the last five (5) years;
d. Project
financing plans;
e.
Administrative and technical manpower complement;
f. Facility
classification and general plant description
g. Sale of
PSGF generation (whether generation is solely for sale to the grid, dedicated
to an electric utility, or for internal use with provision for sale of excess
power to the grid);
h. Projected
mode of operation (baseload or peaking);
i. Power and
annual energy production capacity in (kW and kWh, respectively) of the proposed
facility;
j. Primary
energy source (fuel) of the facility, heating value, and net plant heat rate;
k. Projected
forced outage rate, maintenance days, dependable capacity, and station energy use;
l. Projected
economic life of project and proposed duration of interconnection/ cooperation
period;
m.
Interconnection plans with NAPOCOR or other electric utility;
n. Detailed
project timetable, including target periods for financial closing,
groundbreaking, installation of major plant equipment, testing and
commissioning of the facility;
o. Any other
information as may be required under the specific provisions of Parts II, III
and IV, or as may be deemed necessary by the EIAB for evaluation purposes.
SEC. 2. Facilities
Qualified for Accreditation. – A
Private Sector Generation Facility (PSGF) which meets the qualifications for
accreditation set forth in Sections 1 through 6 of Article III is a qualified
PSGF.
SEC. 3. Accreditation
by the EIAB. – The owner or operator
of a proposed PSGF intending to sell all or its excess power production to the
grid, and whether the facility is existing or shall be constructed, and whose generating
unit is subject to the limitations under Article III hereof, shall apply for
accreditation as a qualified PSGF to the EIAB.
Provided that all the information requirements shall
have been complied with, the EIAB shall approve or deny any application for
accreditation as a qualified PSGF, based on the foregoing qualifications for
accreditation in Article III, within two (2) months from the date of
application, unless EIAB shall have required the submission of additional
information, or postponement of final action on an application for reasonable
grounds.
Any order postponing final action on application
shall state specifically the grounds for postponement, and the date on which a
final ruling shall be issued.
The EIAB shall issue Certificates of Accreditation to
PSGFs which are found to have qualified under these Rules and Regulations.
SEC. 4. EIAB
Issuance of Provisional Accreditations. –
The EIAB may issue provisional accreditations to PSGFs qualifying under
Sections 1,3,4,5 and 6 of Article III of this Part of the Rules and Regulations
if the Private Sector Generator is able to demonstrate in its formal
application sound, reasonable, and time bound development plans, consistent
with overall timetables for project commissioning, for the formation of a
technically and financially qualified consortium or collaborative of
corporations to undertake the proposed PSGF.
In all cases, notwithstanding compliance with
Sections 1 through 6 of Article III, the EIAB may impose the time-bound
achievement of specific project milestones with the end in view of ensuring the
timely of the timely completion of the proposed facility, as well as for
monitoring the progress of the provisionally-accredited PSGF.
Provisional accreditations issued by EIAB shall have
a maximum validity period of one (1) year.
The EIAB may decide on the extension or non-extension of the provisional
accreditation on the basis of progress made by the proponent towards complying
with the conditions of the provisional accreditation, ensuring timely
completion of the project, and EIAB’s evaluation of the continued viability of
the proposed generation project.
SEC. 5. Non-transferability
of Accreditation. – Accreditation
issued by the EIAB shall not be transferable or assignable except to
subsidiaries, affiliated companies and/or partners, determined to be
technically and financially-qualified by the EIAB, of the originally-accredited
owners/proponents of the qualified PSGFs.
Transferability of accreditation issued to electric utilities
shall be governed by the relevant provisions of Part IV on “Electric
Utility-Owned Generation Facilities”.
SEC. 6. Representation
During Accreditation and Negotiation.
– Where proposals for PSGFs are submitted by persons or entities,
foreign or local, other than the organization which is or will be set up to
construct, own and operate the facilities, agreement made during any negotiation
after accreditation shall not legally bind parties involved thereto until such
time when a contract for the sale of power is agreed upon and signed. Preparation of such contract between NAPOCOR or the electric utility and the
organization, existing or newly created, owning the PSGF shall be based on
documentary support such as Letters of Intent and Memorandum of Agreement made
and signed during any negotiation.
SEC. 7. Action
on Modification of a PSGF. – Prior
to undertaking any substantial alteration or modification of a PSGF which has
been certified under these Rules and Regulations, the owner or operator of such
qualified PSGF shall apply to the EIAB for a ruling that the proposed
alteration would not result in a revocation of the facility’s qualified
status. The term “substantial alteration
or modification of a qualified PSGF” means such alteration, modification or
other changes as will materially affect the accuracy of the information
submitted pursuant to Article III and Section 1 of this Article under this Part
of the Rules and Regulations.
SEC. 8. Revocation
of Qualified Status. – The EIAB may
revoke the qualified status of a PSGF which has been accredited under this
Article if such facility fails to comply with the requirements of these Rules
and Regulations, or any of the conditions contained in the Certificate of
Accreditation, whether provisional or not, issued by the EIAB. The EIAB shall advise relevant parties of its
decision to revoke the qualified status of a PSGF, citing the reasons for such
revocation.
SEC. 9. EIAB
Monitoring of Accredited PSGFs. –
Owners/proponents of accredited PSGFs shall submit quarterly status reports on
the progress of each accredited project to the EIAB, and shall immediately
inform the EIAB of any substantial changes in the project that may have an
impact on the PSGF’s qualified status.
The PSGF shall likewise urgently advise the EIAB on the attainment of
project milestones (e.g., site groundbreaking, issuance of environmental
clearances and other permits, financial closing, etc.) for monitoring purposes.
The EIAB shall render quarterly reports to the DOE
Secretary on the progress of accredited projects. Copies of these reports shall be regularly
furnished to concerned bureaus and agencies of the DOE for information and coordination.
SEC. 10. Generation
by Cogeneration and Renewable Resource Power Production Facilities
(RRPPFs). – Proponents/owners of
Cogeneration and Renewable Resource Power Production Facilities (RRPPFs) shall
be further guided by the specific provisions under Part II of these Rules and
Regulations.
SEC. 11. Generation
by Block Power Production Facilities (BPPFs).
– Generation projects under any power development plan approved by
the DOE, more particularly referred to as
Block Power Production Facilities (BPPFs), shall be further guided by the
specific provisions under Part III of these Rules and Regulations.
SEC. 12. Generation
by Companies or Consortiums Primarily Engaged in Energy Upstream
Operations. – Construction and
operation of PSGFs by energy upstream companies or consortiums shall be further
guided by the relevant provisions of Part II or Part III of these Rules and
Regulations, as applicable.
SEC. 13. Generation
by Electric Utilities. – PSGFs owned
by electric utilities whose facilities are intended for self- generation shall
be further guided by the specific provisions under Part IV of these Rules and
Regulations.
SEC. 14. Generation
by Non-utilities Primarily for Internal Use.
– A non-utility PSGF whose generation is solely for the owner’s
internal use need not apply for accreditation with the EIAB, but shall inform
the EIAB in writing of its power generation plans. If in the future there is a likelihood that
sale to NAPOCOR or electric utilities would occur, the PSGF shall apply for
accreditation with the EIAB following the provisions of these Rules and
Regulations.
ARTICLE V
RIGHTS OF NAPOCOR AND THE CONCERNED ELECTRIC UTILITY
ON THE DESIGN
AND OPERATION OF THE
PRIVATE
SECTOR GENERATION FACILITY
SEC. 1. Right
to Review. – NAPOCOR and/or the concerned electric
utility shall have the right to review the design of the qualified PSGF and its
interconnection and fuel storage facilities.
Any flaws perceived by NAPOCOR and/or the concerned electric
utility in the design of the PSGF shall be described and communicated in
writing to the owner of the PSGF, with a copy furnished to the EIAB. Internationally-accepted engineering
standards shall be utilized as reference in this review process.
SEC. 2.
Right to Monitor. – NAPOCOR and/or the concerned electric
utility shall have the right to monitor the construction work and construction
schedule, start-up, operation and maintenance, and fuel inventory practices of
the PSGF, and shall have the right to consult with and make recommendations to
the owner of the PSGF.
ARTICLE VI
OBLIGATIONS
OF NAPOCOR, ELECTRIC UTILITIES,
AND OWNERS OF
QUALIFIED PRIVATE SECTOR
GENERATION
FACILITIES
SEC. l. Interconnection
of Accredited PSGFs. – NAPOCOR and franchised electric utilities
with transmission and/or distribution facilities of 69 KV or above shall file
with the ERB standard interconnection policies and
procedures, and wheeling tariffs for the ERB’s approval.
NAPOCOR, privately-owned electric
utilities, and electric cooperatives connecting with a PSGF shall submit to the
ERB a copy of any interconnection
agreement for its review and approval, in line with ERB’s rate-setting
function. The interconnection agreement
shall include the agreements reached on matters pertaining to rates of purchase
and sales, operating and maintenance schedules, procedures for dispatch,
protective and metering devices and other items that are important to both
parties. Copies of such interconnection
agreements shall be submitted to the EIAB for monitoring purposes.
SEC. 2. Transmission
to Electric Utilities (Wheeling). –
Wheeling of power shall be guided by standard interconnection policies,
procedures, and tariffs submitted to and approved by the ERB.
Wheeling rates, charges, terms, and conditions shall permit the recovery
by such utility of all the costs incurred in connection with the transmission
and necessary associated services, and the costs of any required expansion of
transmission facilities. The appropriate
share, if any, of legitimate, verifiable, economic costs associated with the
provision of transmission services may be included in these charges, while
taking into account any benefits of providing such services to the transmission
system.
Such rates, charges, terms, and conditions should
promote the economic and efficient transmission and generation of electricity,
and shall be just and reasonable, and not unduly discriminatory or
preferential. Rates, charges, terms, and
conditions for transmission services provided shall ensure that, to the extent
possible, costs incurred in providing wholesale transmission services, as well
as property allocated to the provision of such services, are recovered from the
concerned PSGF, and not from a transmitting utility’s existing wholesale,
retail, and transmission customers.
Utility regulations concerning rates, financial limitations, and taxes
shall apply to wheeling tariffs of NAPOCOR and other electric utilities.
SEC. 3. Provision
on Spinning Reserve. – The owner of
the PSGF shall maintain a continuous spinning reserve at all times to the
extent possible and under terms to be agreed upon with NAPOCOR or the concerned electric utility.
SEC. 4. Safety
Requirements. – The owner of the
PSGF shall provide and install protective devices in their facilities as a
safeguard from any NAPOCOR or electric utility system disturbances.
SEC. 5. Periodic
Reporting to the EIAB and the Concerned Electric Utility. – The owner of the PSGF shall regularly submit
to the concerned electric utility and the EIAB in a prescribed form, operating,
and other information as may be required by the utility and the EIAB for
monitoring and planning purposes. The
EIAB shall furnish copies of such reports to other relevant units and line
agencies of the DOE.
ARTICLE VII
PURCHASE OF
POWER
SEC. 1. General
Provision. – NAPOCOR and/or the concerned electric utilities
shall purchase that power (electric energy and/or capacity) needed to serve its
anticipated demand (including reasonable reserve requirements) at rates that
shall not be more than their “avoided cost”.
“Avoided cost” as herein defined shall mean the least incremental cost
that an electric utility would incur towards meeting its anticipated power
demand, if such utility does not buy power from a PSGF.
SEC. 2. Purchase
Rates Qualification. – Rates for
purchase shall:
a. Be just and
reasonable to the electric customers of NAPOCOR and/or other concerned electric
utilities, and in the public interest; and
b. Be in
accordance with guidelines set by the EIAB on this matter where full and/or
excess energy production shall be sold to the systems of concerned electric
utilities. An acceptable competitive
procurement scheme (e.g., bidding) is one means of setting avoided cost as well
as reasonable purchase rates.
SEC. 3. Adjustments
in Financial Accounting. – NAPOCOR and the concerned electric
utilities shall accordingly adjust their financial accounting systems and
procedures resulting from purchases of electricity from private sector
generators. The rate of return on rate
base levels shall then be determined after all adjustments have been made and
set in place.
SEC. 4. Determination
of Avoided Cost. – The EIAB, in
coordination with the ERB and in consultation with NAPOCOR, electric utilities and other
relevant private sector entities, shall formulate and adopt a standard
methodology for the calculation of NAPOCOR’s and electric utilities’ avoided
costs. Criteria for competitive procurement
schemes (e.g., bidding) shall also be formulated to define acceptable means of
solicitation that can also provide the basis for determining an electric
utility’s avoided costs and reasonable purchase rates. Said methodology and criteria shall be
formulated by the EIAB within three (3) months from the effectivity of these
Rules and Regulations, and disseminated to relevant agencies, including ERB, NAPOCOR, and concerned electric utilities
for information and immediate adoption.
The EIAB, to the extent possible, shall take into
account the following factors in its formulation of a standard methodology for
the calculation of avoided cost:
a. The
structure of the incremental costs that would have been incurred by NAPOCOR and/or other electric utilities
had they built the required generation facilities and/or generated electric
power themselves to serve its anticipated demand (including reasonable reserve
requirements);
b. The
availability of’ capacity and energy from n qualified PSGF during the system
daily and seasonal peak periods, including, but not limited to:
1. The ability
of the NAPOCOR or the concerned electric utility
to dispatch the qualified PSGF;
2. The
expected or demonstrated reliability of the qualified PSGF, and the
corresponding value of reserve capacity required to be carried by NAPOCOR and/or other electric utilities;
3. The extent
to which scheduled outages of the qualified PSGF can be usefully coordinated
with scheduled outages of the NAPOCOR or the electric utility’s
facilities;
4. The
individual and aggregate value of energy and capacity from qualified PSGFs on NAPOCOR’s
or the electric utility’s system;
c. The ability
of NAPOCOR or the affected electric utility
to avoid costs, including the deferral of capacity additions and the reduction
of fossil fuel use;
d. The costs
of saving resulting from variations in line losses from those that would have existed
in the absence of purchases from a qualified PSGF; and
e. The costs
of environmental mitigation measures necessary to ensure compliance with
regulations and standards on environmental management. For purposes of promoting the economic
utilization of specific indigenous and renewable energy forms, the DOE may, in
line with its rule-making powers, fix power purchase rates for electricity
generated from such resources after due consultation with relevant private and
government entities.
ARTICLE VIII
RATES FOR
SALES
SEC. 1. General
Rules. – NAPOCOR or any concerned electric utility
shall sell to any owner of a qualified PSGF electricity requested by the
latter. Except for backup power, rates
for sales of NAPOCOR and/or the concerned electric
utility to the qualified PSGF shall be based on the net interchange of energy
between the said qualified PSGF and NAPOCOR or the concerned electric
utility. If said interchange of energy
results in requiring the PSGF to pay for electricity used, the applicable rates
in this case shall be the rates stipulated in a contract between the qualified
PSGF and NAPOCOR or the concerned electric utility.
SEC. 2. Services
to be Provided to any Qualified PSGF.
– As contracted with the owner of n qualified PSGF, NAPOCOR or the concerned electric utility
shall provide:
1. Incremental
PSG power;
2. Back-up
power;
3. Maintenance
power; and
4.
Interruptible power.
SEC. 3. Rates
for Back-up and Maintenance Power, – NAPOCOR and the individual electric
utilities shall submit to the ERB, for the latter’s review and approval, rates
for sales of back-up and/or maintenance power to qualified PSGFs.
ARTICLE IX
OPERATING
STANDARDS, ENVIRONMENTAL CONCERNS
AND OTHER
MATTERS
SEC. 1. Standards
for Operations and Reliability. –
Qualified PSGFs, NAPOCOR, and other electric utilities
shall follow established internationally-accepted engineering standards to
ensure safety, system security, and reliability for interconnected system
operations. NAPOCOR and the concerned electric
utilities shall have the right to physically inspect the power installations
and witness the testing and commissioning of the PSGF that will be
interconnected to its system to ensure that all necessary equipment are in
place and functioning properly.
SEC. 2. Operating
Structure. – The qualified PSGF
directly connected to the NAPOCOR grid shall be operated by its owner
in accordance with the terms of the interconnection agreement with NAPOCOR and/or the concerned electric
utility with respect to the wheeling and/or purchase of electricity generated
by said PSGF.
SEC. 3. Environmental
Concerns. – Qualified PSGFs shall
meet standards on environmental management, including, among others, those on
air quality, noise levels, water quality, solid waste, emission balances and
controls, land use and aesthetics as required by law through appropriate
government agencies.
SEC. 4.
Content of Contract. – Consistent
with these Rules and Regulations, all contracts between the owners of PSGFs,
and NAPOCOR or the concerned electric utility shall include, among others, the
following:
a.
Identification of Parties;
b. Recitals
(rationale of contract);
c.
Considerations (general agreements);
d. Purchase
and Sale (stipulation of power purchase and sale);
c. Conditions
of Delivery:
1. Point of
Delivery
2. Character
of Service ((technical specifications for expected power output)
3. Power
Factor
4.
Continuity/reliability
f. Rates for
Purchase from Facility and Adjustment clauses;
g. Rates for
Sale to Facility and Adjustment clauses;
h. Billing
Periods and Payment Terms;
i. Penalty and
Discount Clauses;
j. Rights and
Obligations of NAPOCOR/Electric Utility and PSGF as to:
1. Ownership, Design,
Operation and Maintenance
2.
Construction Requirements
3. Plans and
Specifications
4. Inspection
and Tests
5. Change of
Equipment
6. Costs
7. Control and
Protective Apparatus
8. Location
9. Deliveries
and Amount of Production
10. Notices
11. Land
Rights
12. Regulatory
Approvals
13. Codes and
Standards
14. Removal of
Equipment
15. Provisions
for Contract Violation
k. Operations;
1. Date of
Operation
2. Operating
Procedure
3. Sell-back
Conditions
l. Safety
Requirements;
m. Force
Majeure;
n. Meter
Provisions and Metering Arrangements;
o. Right to
Access for Inspection, etc.;
p. Liability
of Each Party with Respect to Operations;
q. Duration of
Contract and Conditions for Contract Cancellation;
r. Provision
for Security; and
s. Additional
Provisions.
SEC. 5. Force
Majeure. – Neither party to a
contract shall be in default if failure of performance of the terms of the
contract is caused by factors due to acts of God, nature, or uncontrollable forces.
PART II
SPECIFIC PROVISIONS FOR COGENERATION AND
RENEWABLE RESOURCE POWER PRODUCTION FACILITIES
In addition to the provisions of Part I of these
Rules and Regulations, the following Articles shall guide proponents/owners of
Cogeneration or Renewable Resource Power Production Facilities (RRPPFs).
ARTICLE I
DEFINITIONS
OF COGENERATION AND
RENEWABLE
RESOURCE POWER PRODUCTION FACILITIES
SEC. 1. Definition
of Cogeneration Facilities. –
Cogeneration facilities, as defined in these Rules and Regulations, means a
facility which produces electrical and/or mechanical energy and forms of useful
thermal energy (such as heat or steam), used for industrial, commercial,
heating, or cooling purposes, through the sequential use of energy. A cogeneration facility may either be a
topping-cycle or bottoming-cycle facility.
A topping-cycle cogeneration facility means a
cogeneration facility in which the energy input to the facility is first used
to produce useful power with the reject heat recovered from power production
then used to provide useful thermal energy, while a bottoming-cycle facility
refers to a cogeneration facility in which the energy input to the system is
first applied to a useful thermal energy process, and the reject heat emerging
from the process is then used for power production.
SEC. 2. Definition
of Renewable Resource Power Production Facilities (RRPPFs). – RRPPFs, as defined in these Rules and
Regulations, refers to any facility which produces electricity by the use of
renewable energy resources as its primary energy source. Renewable energy sources means sources of
energy that regenerative or virtually inexhaustible such as biomass, solar,
wind, geothermal or hydro, and also means byproduct materials that, but for
their use as a source of energy, would be considered waste.
Primary energy source, on the other hand, means the
fuel/s used for the generation of electricity, except that such terms do not
include:
a. The minimum
amounts of fuel required for ignition, start up, testing, flame stabilization
and control uses, and
b. The minimum
amounts of fuel required to alleviate or prevent:
i.
unanticipated equipment outages, and
ii.
emergencies, directly affecting the public health, safety or welfare,
which would result from electric power outages.
ARTICLE II
QUALIFICATIONS
OF RRPPFs AND
COGENERATION
FACILITIES
SEC. l. Accreditation
of RRPPFs and Cogeneration Facilities. –
An RRPPF meeting the general qualifications under Article III of Part I of
these Rules and Regulations is a qualified PSGF. A cogeneration facility is a qualified PSGF
under these Rules and Regulations if it meets the general qualifications under
Article III of Part I, and the thermal efficiency standard for cogeneration
projects, as defined in Section 2 of this Article.
SEC. 2. Thermal
Efficiency Standards for Cogeneration Facilities. – In addition to the general qualifications
for accreditation under Article III of Part I of these Rules and Regulations,
cogeneration facilities should be able to achieve a minimum thermal efficiency
of sixty (60) percent for purposes of availing incentives offered under the
Investment Priorities Plan of the Board of Investments and/or securing
accreditation from the EIAB as a qualified PSGF. The DOE shall review the applicability of such
thermal efficiency standard for cogeneration from time to time, considering the
viability of efficiency advances in generation technologies, boilers, and heat
recovery systems.
Thermal efficiency, as herein defined, means the
ratio of useful energy output to the total energy input, calculated on an
annual basis.
Useful energy output, for purposes of calculating
thermal efficiencies of cogeneration facilities, is defined as the sum of
electricity and/or mechanical power plus the useful heat in the steam or hot
exhaust gases, and such other thermal energy recovered for useful purposes.
Total energy input, on the other hand, is defined as
the total kilograms of fuel used multiplied by the Higher Heating Value (HHV)
of the fuel input/s as received.
SEC. 3. Cogeneration
Facilities Utilizing Renewable Energy Sources.
– Cogeneration facilities utilizing renewable energy forms as its
primary energy source shall be classified as Renewable Resource Cogeneration
Facilities for purposes of accreditation as qualified PSGFs. Cogeneration facilities utilizing renewable
energy sources and fossil fuels, either through a blend, combination, or
alternating use of such fuels, shall be treated and evaluated as Cogeneration
Facilities. By virtue of this
distinction, Renewable Resource Cogeneration Facilities shall not be subject to
minimum thermal efficiency standards required for cogeneration facilities under
Section 2 of this Article.
SEC. 4. Ownership
of Cogeneration Facilities. – Any
private corporation, cooperative, or similar associations requiring thermal and
electric energy for industrial, commercial, heating, or cooling purposes (thermal
host) may own and operate cogeneration facilities intended to supply their
internal requirements for thermal and electric energy, and to sell any excess
power generation to the grid.
Private corporations, cooperatives, or similar
associations, other than the thermal hosts described above, shall be allowed to
own and operate cogeneration facilities, and to sell electric and thermal
energy directly to the concerned thermal hosts, as well as to sell any excess
power generation to the grid, under exclusive contracts with the thermal host
and/or concerned electric utility, and subject to the provisions and
limitations of the Public Service Law.
ARTICLE III
PROCEDURES
FOR APPLYING FOR
ACCREDITATION
AS A COGENERATION OR
RENEWABLE
RESOURCE POWER PRODUCTION FACILITY
SEC. 1. Period
of Processing. – All Cogeneration
and RRPPFs intending to sell the excess or all its power production to NAPOCOR or any electric utility and/or
thermal host shall apply for accreditation with the EIAB. Provided all requirements shall have been
complied with, the EIAB shall approve or deny any application for accreditation
for qualified PSGF status within one (1) month from the date of the
application, unless the EIAB shall have required the submission of additional
information, or ordered the postponement of final action on an application for
reasonable grounds.
SEC. 2. Accreditation
of Mini-Hydro Projects. –
Applications concerning the construction and operation of mini-hydro facilities
shall be governed by the implementing rules and regulations of Republic Act No. 7156 (Mini-hydro Act of 1991),
promulgated by the Office of Energy Affairs in August
1992. Such applications shall be
referred by the EIAB to the Energy Resource Development Bureau (EBDB) of the
DOE.
Evaluation and processing of such applications shall be
undertaken by the Mini-Hydro Division of the ERDB. The ERDB shall inform the proponents and the
EIAB of its decision to issue or deny a license to construct and operate
mini-hydro facilities within a period of four (4) months, provided all
information requirements to process the application have been submitted to the
Mini-Hydro Division. The EIAB shall
thereafter prepare and issue the appropriate accreditation certificates for
mini-hydro projects approved by the ERDB.
SEC. 3. Accreditation
of Waste-to-Energy Facilities. –
Prior to filing an application with the EIAB for accreditation as a qualified
PSGF under these Rules and Regulations, RRPPFs utilizing fuels derived from
municipal solid wastes, or by-product materials that, but for their use as a
source of energy, would be considered waste, shall first seek an endorsement
from the appropriate government authority (i.e., the Presidential Task Force on
Solid Waste Management, the Department of Environment and Natural Resources)
certifying that the proposed Waste-to-Energy facility is consistent with the
overall country framework for solid waste management. Such requirement may be waived by the EIAB
for agricultural and industrial wastes not generally classified as municipal
solid wastes.
Notwithstanding any endorsement or certification from
the appropriate government authorities on environmental/waste management,
qualified Waste-to-Energy facilities shall meet standards on environmental
management in accordance with the provision of Section 3, Article IX, Part I of
these Rules and Regulations.
SEC. 4. Contents
of Applications for Cogeneration Facilities. – In addition to the general information
requirements listed in Section 1, Article IV, Part I of these Rules and Regulations,
applications for accreditation as a qualified Cogeneration Facility shall
contain the following information:
a. Minimum,
maximum, and average volumes of steam and/or thermal energy required for
industrial, commercial, heating or cooling purposes, on a monthly and annual
basis, together with the required temperatures, pressures, and conditions of
such volumes;
b. Minimum,
maximum, and average requirements of’ power and electric energy on a monthly
and annual basis;
c. A
description of the basic industrial, commercial, heating, or cooling processes
requiring any amounts of thermal and/or electric energy;
d. Single-line
mass-balance and energy flow diagrams indicating volumes and conditions of
exhaust gases, steam, heat, and electric energy produced and utilized at
various points of the cogeneration cycle;
e. Detailed
calculation of the overall thermal efficiency of the cogeneration system,
including assumptions used for ambient temperature, fuel heating values, and
other parameters; and
f. Other
information that may be required by the EIAB in evaluating a cogeneration
proposal.
SEC. 5. Contents
of Applications for RRPPFs. – In addition
to the general information requirements listed in Section 1, Article IV, Part I
of these Rules and Regulations, applications for accreditation as a qualified
RRPPF shall include detailed information on fuel supply, collection, and
delivery systems in the form of a feasibility or pre-feasibility study. The EIAB may require the submission of any
other information that may be necessary for the exhaustive evaluation of RRPPF
proposals.
ARTICLE IV
OBLIGATIONS
OF NAPOCOR, ELECTRIC UTILITIES,
AND OWNERS OF
Qualified RRPPFs AND
COGENERATION
FACILITIES
SEC. 1. Purchase
of Electric Energy from Qualified RRPPFs and Cogeneration. –For facilities whose power production is
also intended for sale to the grid, the qualified RRPPF or Cogeneration shall
apply and negotiate for the sale of its power with the franchised electric
utility within whose area said facility is located (host utility).
If sale is hindered by any disagreement, the owner of
the facility may negotiate with NAPOCOR or any other electric utility for
the latter to purchase its generation.
If after further negotiation NAPOCOR or the concerned electric utility
shall not purchase the generation, the owner of the RRPPF or Cogeneration shall
apply to the EIAB for a ruling that said facility shall sell to NAPOCOR.
SEC. 2. Interconnection
and Transmission (Wheeling). – The host
utility shall be obligated to interconnect the qualified RRPPF or Cogeneration
facility and wheel the electricity generated to a third party (electric utility
or end-user) through the former’s transmission and/or distribution lines of 69
KV or higher. The rate for purchase by
the third party (electric utility or end-user) to which such electricity is
transmitted shall be accordingly adjusted to reflect line losses and the
corresponding wheeling charges of the host utility.
SEC. 3. Interconnection
Costs. – Upon effectivity of an
agreement for interconnection by the owner of the qualified RRPPFs or
Cogeneration facilities and NAPOCOR or the concerned electric utility, NAPOCOR or the electric utility may issue
an order requiring the owner of said RRPPF or Cogeneration facility to advance
investments for the necessary interconnecting electrical equipment and devices
in accordance with appropriate electrical plans approved by NAPOCOR and/or the
concerned electric utility. Repayment
for the investment on these facilities shall be done following arrangements
mutually agreed upon by contracting parties.
Maintenance costs for the interconnection facilities shall be borne by
the concerned electric utility.
For RRPPFs and cogeneration facilities with
capacities of less than 10,000 kilowatts, however, NAPOCOR or the concerned electric utility
shall shoulder all costs needed for the realization of the physical connection
of the PSGF to the former’s transmission facilities. Maintenance costs for the interconnection
facilities shall also be borne by NAPOCOR or the concerned electric utility.
SEC. 4. System
Emergencies. – RRPPFs and
cogeneration facilities shall be obligated to provide power to NAPOCOR or the concerned electric utility
during system emergencies to the extent provided under their agreement.
ARTICLE V
RATES FOR
PURCHASES
SEC. 1. Rate
Satisfaction. – Rates for purchases
from qualified RRPPFs or Cogeneration facilities must satisfy the requirements
set forth under Sections 2 and 4 of Article VII, Part I of these Rules
and Regulations. In the case in which
the rates for purchases are based upon estimates of NAPOCOR and/or the concerned electric
utility’s “avoided cost” over the specific period of a contract, the rates for
such purchases do not violate this Article if these rates differ from NAPOCOR’s or the concerned electric
utility’s “avoided cost” at the time of delivery.
SEC. 2. Purchases
“as available”. – The rates for
purchases of energy and capacity on an “as available” basis shall be based on
NAPOCOR’s and/or the purchasing electric utility’s costs calculated at the
time of delivery and stipulated in a contract to purchase. Energy and capacity on an “as available”
basis shall mean electricity supplied by RRPPFs or Cogeneration facilities to NAPOCOR and/or an electric utility
following a schedule provided by the RRPPF or Cogeneration owner as to time and
period and agreed to by NAPOCOR or concerned electric utility.
SEC. 3. Rates
for Purchases of Power Generated by RRPPFs and Cogeneration Facilities with
Capacities of less than 10,000 kilowatts.
– NAPOCOR shall formulate and adopt, subject
to ERB’s review and approval, a schedule of power purchase rates which reflects
the structure of capacity and energy costs of NAPOCOR for varying levels of
power availability and dispatchability.
Such power purchase rates shall be adopted as standard power purchase
rates for RRPPFs and Cogeneration facilities less than 10,000 kilowatts upon ERB approval of such rates to facilitate
price negotiations with NAPOCOR and/or other electric utilities
and qualified RRPPFs or Cogeneration facilities.
PART III
SPECIFIC PROVISIONS ON BLOCK POWER PRODUCTION
FACILITIES
The following Articles shall further guide
proponents/owners of Block Power Production Facilities (BPPFs), in addition to
the general provisions of Part I of these Rules and Regulations.
ARTICLE I
DEFINITIONS
AND QUALIFICATIONS OF A
BLOCK POWER
PRODUCTION FACILITY AS A QUALIFIED PSGF
SEC. 1. Definition
of Block Power Production Facilities.
– Block Power Production Facilities, or BPPFs, refer to power generation
facilities forming part of the approved power development plans of NAPOCOR and/or other electric utilities, and
which shall be implemented through private sector participation via the
Build-Own-Operate, Build-Operate-Transfer, Build-Transfer-Operate, or other
variants of the aforementioned private power schemes.
Renewable energy-based power generation facilities
forming part of NAPOCOR’s and/or electric utilities’
development plans are BPPFs.
SEC. 2. Formulation
and Submission of Power Development Plans of NAPOCOR and/or Other Electric Utilities.
– Pursuant to Section 1 of Article I, and Sections 1 and 2 of
Article II, Part I, the DOE shall require NAPOCOR and/or individual electric
utilities to submit power development programs, for the DOE’s review and approval. NAPOCOR shall submit to the DOE an annual update of its Power
Development Program (PDP) on or before the first day of June beginning 1995 and
every year thereafter.
Such submissions should include NAPOCOR’s system load forecasts and
generation requirements, resource and technology assessments and evaluations,
cost assumptions and other technical parameters, and the resulting system
expansion plans for NAPOCOR’s major and small-island power
grids. NAPOCOR submissions should identify power
generation projects to be undertaken through private sector participation, the
justifications for such, and the indicative timetables for undertaking
prequalification of interested private sector entities, tendering of bids,
evaluation, and award of private power contracts for each of the projects
identified.
Individual electric utilities seeking to implement or
contract the implementation of generation projects shall be required to enter
into long-term (ten-year) power supply agreements with NAPOCOR to facilitate NAPOCOR’s system planning activities. Such electric utilities shall submit to the DOE their individual or combined long-term
power development plans which shall contain an efficient portfolio of
generation (including projected power purchases from NAPOCOR and qualified PSGFs) and
demand-side resources on or before 15 January 1996 and every year thereafter,
for the DOE’s review and approval.
SEC. 3. DOE Review of Power Development
Plans. – The DOE, through its Energy Planning and
Monitoring Bureau (EPMB), shall review the power development plans of NAPOCOR and other electric utilities for
consistency with the general and specific policies for the sector, validate the
assumptions used in formulation of such plans, and check the consistency of
such plans with national and regional resource assessments, development
programs, and project timetables of various energy upstream activities.
The EPMB shall likewise review the list of power
generation projects for private sector implementation and the indicative
timetables towards ensuring sufficient lead times for undertaking information
dissemination, project organization, and preparation of competitive
proposals. The EPMB may also recommend
in its approval of the individual development plans of NAPOCOR and/or electric utilities the
scaling down or integration of proposed generation projects to ensure the
generation of more competitive proposals, with due consideration of cost
advantages from economies of scale.
NAPOCOR and/or other electric utilities
shall inform and seek the DOE’s prior approval to implement
generation projects not included in the approved power development plans.
ARTICLE II
PROCEDURES
FOR APPLYING FOR ACCREDITATION
AS A BLOCK
POWER PRODUCTION FACILITY
SEC. 1. DOE
Announcement of Generation Projects for Private Sector Implementation. – Upon the DOE’s approval of the power development
plans of NAPOCOR and/or electric utilities, the
EIAB shall cause the publication of the list of projects for private sector
implementation, together with the target commissioning dates and indicative
timetables for commencement of competitive procurement procedures.
Such announcements shall be published in at least
three (3) newspapers of general circulation, once a week for two (2)
consecutive weeks.
SEC. 2.
BPPF Solicitation by NAPOCOR and other Electric Utilities. –
Following announcement of generation projects for private sector
implementation, electric utilities, more particularly investor-owned
distribution utilities and electric cooperatives, may express their interest to
the EIAB to undertake competitive procurement for certain blocks of capacity
included in said announcements.
The EIAB shall allow an electric utility or groups of
electric utilities to conduct competitive procurement for certain blocks of
programmed BPPF capacity, subject to the following conditions:
l. That power
to be generated by the block of capacity to be solicited by an electric utility
or groups of electric utilities shall not exceed the electric utilities’
anticipated demand (including the provision of reasonable reserve
requirements);
2. That such
blocks of capacity are sufficient in size to generate competitive proposals,
and that the remaining block of capacity can still be competitively bidded or
contracted out; and
3. For
electric cooperatives, that the cooperative first obtain NEA’s endorsement of
the cooperative’s plan to solicit BPPF proposals and to purchase power from
qualified BPPFs.
The EIAB shall then issue an order authorizing the
concerned electric utilities to undertake competitive procurement for BPPF
proposals. Such competitive procurement
activities shall meet the criteria set by the EIAB, or follow the procedures
detailed in Section 6 of this Article.
NAPOCOR shall undertake competitive
solicitation procedures for the remaining blocks of BPPF capacities within the
corresponding timeframe indicated for each of the projects for private sector
implementation if, within such timeframes, no other electric utility has
expressed interest in undertaking competitive procurement for the remaining
blocks of BPPF capacity.
Solicitation schemes other than tender procedures
which meet the criteria set forth by the EIAB for competitive procurement,
pursuant to Section 4, Article VII, Part I shall be allowed by the EIAB under
this Part of the Rules and Regulations.
In case no award is made following conduct of tender
procedures, NAPOCOR and/or other electric utilities
shall inform and seek the EIAB’s prior approval to either negotiate for the
implementation of BPPF capacities or to undertake pre-construction and
construction activities themselves.
Actual incremental investments, fuel, operating, maintenance and
overhead costs of NAPOCOR or the concerned electric utility
shall be benchmarked against avoided cost figures of NAPOCOR or the concerned electric utility,
determined on the basis of the standard methodology adopted by the EIAB.
SEC. 3. Participation
of Corporations or Consortiums Primarily Engaged in Energy Upstream
Operations. – Pursuant to ownership
qualifications provided in Section 1, Article III, Part I, companies or
consortiums primarily engaged in indigenous energy exploration, development,
and production may undertake the construction and operation of associated
generation facilities to the extent that the primary fuel sources for power
generation shall come from the local production of such companies or
consortiums, and subject to demonstrating the technical and financial
qualifications in undertaking the scale and type of generation facility
proposed.
Government-owned and controlled corporations involved
in energy upstream operations shall be required to seek accreditation for
associated generation facilities owned and operated by the same. Private corporations engaged in energy
upstream operations intending to generate electricity for sale to the grid,
either directly or in joint venture or under contract with state-owned energy
upstream companies, shall likewise apply for accreditation with the EIAB.
In all cases, rates for purchase of power generated
from such facilities shall be governed by limitations provided in Section 1 of
Article V of this Part of the Rules and Regulations.
SEC. 4. Implementation
of BPPFs by Electric Utilities. –
Electric utilities seeking to implement blocks of BPPF capacity shall be
governed by the specific provisions of Part IV on “Electric Utility-Owned
Generating Facilities”.
SEC. 5. Facilities
not in conformity with Power Development Plans.
– A facility not in conformity with the approved power development
plans of NAPOCOR and/or other electric utilities
may be proposed and its feasibility be submitted to the EIAB for consideration
as a BPPF. The proponent of a facility
not in conformity with the approved development plans should include in its
application with the EIAB the block of BPPF capacity that the proposed BPPF can
displace with regard to capacity, availability, and commissioning schedule.
The EIAB shall subject such proposals to a thorough
evaluation and shall compare its reliability, cost-competitiveness, and
potential generation of net foreign exchange savings against programmed BPPFs,
as basis for issuing or denying accreditation as a qualified BPPF. Only Provisional Accreditations shall be
issued by the EIAB in such instances.
A facility not in conformity with NAPOCOR’s development plans but which has
been provisionally accredited by the EIAB as a qualified PSGF under these Rules
and Regulations shall be allowed to participate in competitive procurements
being undertaken by NAPOCOR and/or any other electric utilities.
SEC. 6. BPPF
Solicitation Procedures. – The
following procedure and provisions shall guide the solicitation of proposals or
bids for BPPFs by the NAPOCOR, electric utilities, and
government-owned and controlled energy upstream companies, in lieu of
procurement schemes meeting the EIAB’s criteria for competitive
requirement.
1.
Announcement of request for proposals for required BPPF capacities,
together with information on the availability of prequalification documents, as
well as schedules, venues, and procedures for prequalification and tendering of
bids.
Publication should be made in three (3) newspapers of
general circulation, at least once a week for three (3) consecutive weeks, with
the last date of publication at least one (1) month before the deadline for the
submission of pre-qualification documents.
2. Conduct of
pre-bid conference for pre-qualified proponents to present the project concept
and timetables, government taxes and incentives applicable to proponents, basic
criteria for bid evaluation, the negotiable and non-negotiable specifications
or requirements of NAPOCOR or the concerned electric utility,
bid evaluation procedures, and other information vital for the preparation of
competitive technical and financial proposals.
3. Tendering
of bids must be scheduled so as to allow proponents a reasonable length of time
for the preparation of implementable and competitive technical and financial
proposals. In setting the date for the
submission of bids, the scale of the solicitation, the type of technology and
fuel to be employed, and the risks involved on the part of the Private Sector
Generator must be considered by NAPOCOR and/or the concerned electric
utility.
4. To maintain
the transparency of the whole solicitation and bidding process, representatives
of BPPF proponents must be allowed to witness the receipt, opening, tabulation,
and final certification of the contents of the bids received by duly-authorized
officials of NAPOCOR and/or electric utilities.
SEC. 7. EIAB
Accreditation of BPPFs. – Following
the conduct of competitive procurement for BPPFs, NAPOCOR and/or the concerned electric
utility shall submit to the EIAB a complete copy of the records pertaining to
the solicitation, evaluation, selection, and award of a BPPF contract.
Electric utilities which have successfully conducted
competitive procurement activities for BPPF facilities shall be required to
enter into and submit to the EIAB a long-term, preferably ten-year, power
purchase agreement with NAPOCOR for any existing, incremental,
and/or back-up power supply requirements.
Should interconnection of an electric utility with NAPOCOR may no longer be necessary, the
concerned electric utility shall furnish NAPOCOR and the EIAB a copy of its board’s
resolution/decision to disconnect from the service of NAPOCOR.
Upon submission of the required documents (i.e.,
long-term power purchase agreement or board resolution) from the concerned
electric utility, the EIAB shall issue the required accreditation documents for
the utility-solicited BPPF project upon verification of the BPPF’s compliance
with the general qualifications for accreditation as a PSGF, and NAPOCOR’s and/or the concerned electric
utility’s compliance with the criteria for competitive procurement or with the
recommended solicitation procedure provided in Section 6 above. The EIAB shall issue the required
accreditation documents within one (1) month from receipt of all requirements.
For BPPF proposals not in conformity with the power
development plans of NAPOCOR and/or individual electric
utilities, the EIAB shall take action to approve or deny any application for
accreditation as a qualified PSGF within two (2) months from receipt of an
application, provided that all necessary information have been submitted to the
EIAB. Such accreditation shall be a
provisional accreditation which shall be cancelled by the EIAB upon conclusion
of competitive procurement procedures and the non-selection of the
provisionally-accredited BPPF in the competitive procurement.
ARTICLE III
OBLIGATIONS
OF NAPOCOR, ELECTRIC UTILITIES, AND
OWNERS OF
BLOCK POWER PRODUCTION FACILITIES
SEC. 1.
Obligation to Purchase Electric Energy from the Qualified BPPF. –The NAPOCOR and/or the concerned electric utility
shall purchase, at rates in accordance with the succeeding Article hereof,
electric energy and capacity which is made available by the owners of the
qualified BPPF.
SEC. 2. Obligation
to Sell to a Qualified BPPF. – NAPOCOR shall sell to the owner of a
qualified BPPF maintenance and/or back-up power. In cases of electric utilities contracting to
purchase power from a qualified BPPF, NAPOCOR and the concerned electric
utilities may include in their long-term power purchase agreements BPPF
requirements for back-up and maintenance power.
SEC. 3. Obligation
to Interconnect. – NAPOCOR and/or the concerned electric
utility shall interconnect with qualified BPPFs to accomplish purchases or
sales under these Rules and Regulations and following stipulations in the
contract between NAPOCOR or the concerned electric utility and the owner of the
BPPF on this matter.
Upon effectivity of an agreement for interconnection
between the owner of a qualified BPPF and NAPOCOR or any concerned electric utility,
NAPOCOR or the concerned electric utility
shall issue an order allowing the physical connection of the qualified BPPF to
the transmission facilities of NAPOCOR or to the distribution system of
the concerned electric utility.
SEC. 4. Interconnection
Costs. – The owner of a BPPF shall
advance investments needed in interconnecting the BPPF with the NAPOCOR grid or the concerned electric
utility system. Repayment shall be made
in accordance with mutually agreed upon arrangements of the contracting
parties. Maintenance costs for the
interconnection facilities shall also be agreed upon by the NAPOCOR and the owner of the BPPF.
SEC. 5. Transmission
to Other Electric Utilities (Wheeling). –
NAPOCOR and/or any host utility shall be
obligated to transmit or wheel the electricity generated by a qualified BPPF to
an electric utility or to NAPOCOR through the former’s transmission
and/or distribution lines of 69 KV or higher.
NAPOCOR and/or any third party electric
utility to which such electricity is transmitted shall purchase the same under
this Section.
The rate for purchases by the third party electric
utility to which such electricity is transmitted shall be accordingly adjusted
to reflect line losses and the corresponding wheeling charges.
ARTICLE IV
RATES FOR
PURCHASES AND SALES
SEC. 1. Purchase
Rate. – The purchase rate from a
BPPF shall not exceed the “avoided cost” of NAPOCOR and/or the concerned electric
utility, as determined thru the conduct of competitive procurement schemes
meeting EIAB’s criteria for BPPF solicitation or using the standard methodology
adopted by the EIAB, pursuant to Section 4, Article VII, Part I of these Rules
and Regulations.
SEC. 2. Rates
for Sales. – NAPOCOR shall sell maintenance power
and/or back-up power during unscheduled outages, as available, to BPPFs or to electric
utilities contracting power supply with qualified BPPFs, at rates approved by
the ERB. Back-up power for capacity
unserved by BPPFs due to their unscheduled outages shall be provided by NAPOCOR’s reserve units. Penalty due to the inability of the BPPF to
provide contracted power during its unscheduled outage shall be stipulated in
the contract between the owner of the BPPF and NAPOCOR or the concerned electric
utility.
SEC. 3. Adjustments
in Financial Accounting. – NAPOCOR and the concerned electric
utilities shall accordingly adjust its financial accounting systems and
procedures resulting from purchases of electricity from a BPPF. The rate of return on rate base levels shall
then be determined after all adjustments have been made and set in place.
ARTICLE V
OPERATING
PROCEDURES AND ENVIRONMENTAL CONCERNS
SEC. 1. Security
of BPPF. – For national emergency
situations, NAPOCOR, with the assistance of the
military, shall provide on-site coordination of BPPF operations to prevent
brownouts and ensure the continuity of electric service.
SEC. 2. Environmental
Concerns. – The BPPF shall consider
the environmental impact/effect of its operations. The owner of the BPPF shall ascertain that
environmental management standards as required by law through appropriate
governmental agencies are met in the construction, operation and maintenance of
the BPPF.
PART IV
SPECIFIC PROVISIONS ON
ELECTRIC UTILITY-OWNED GENERATING FACILITIES
The following Articles shall further guide electric
utilities seeking to engage in self-generation for direct sale to their
customers and/or utility plant maintenance.
ARTICLE I
QUALIFICATIONS
AS A PRIVATE SECTOR GENERATION FACILITY
SEC. 1. Ownership. – Electric utilities shall be allowed to
construct, operate and maintain existing or new generating facilities for their
self-generation subject to financial limitations provided in Section 4 below. Majority interest by an electric utility on
the equity of a PSGF shall be considered as ownership by an electric utility,
and shall thus be subject to electric utility regulations concerning rates,
financial limitations, taxes and other laws applicable to their operations as
electric utilities.
SEC. 4. Financial
Limitations on Electric Utilities. –
An electric utility shall be allowed to own and operate new generation facilities
meeting the qualifications set forth in this Article, provided that the
electric utility’s ratio of long-term debt to equity is maintained at or below
1.5.
The above financial limitations on electric utilities
shall be waived by the EIAB for purposes of accrediting existing generation
facilities of electric utilities and for already accredited PSGFs for the
internal use of electric utilities as of the effectivity of these Rules and
Regulations.
SEC. 3. Facility
Classification. – Facility
classifications allowed under Section 3, Article III, Part I shall apply to PSGFs
seeking accreditation under this Part of the Rules and Regulations.
SEC. 4. Size
of Generating Units. – The
limitation on maximum size of generating units as stipulated in Section 4 of
Article II, Part I of these Rules and Regulations shall be encouraged in order
to facilitate possible NAPOCOR service to these generating plants
during forced outages or maintenance periods.
ARTICLE II
PROCEDURES
FOR APPLYING FOR ACCREDITATION
AS A PRIVATE
SECTOR GENERATION FACILITY
SEC. 1. Contents
of Application. – In addition to the
requirements of Section 1, Article IV, Part I, an electric utility seeking
accreditation for a facility which qualifies under the preceding Article shall
submit to the EIAB a copy of its long-term power purchase agreement with NAPOCOR for any incremental, maintenance,
or back-up power requirements.
Adjustments in the long-term power purchase agreement between NAPOCOR and the concerned electric utility
shall be considered to the extent that NAPOCOR may still adjust its Power
Development Program.
In cases where an electric utility has opted or is
opting to no longer connect with NAPOCOR for any incremental or back-up
power supply, the electric utility shall present to NAPOCOR and the EIAB a copy of the
relevant Board Resolution/s stating such decisions, and releasing NAPOCOR from any obligation to supply the
electric utility’s power requirements.
SEC. 2.
Accreditation. – An electric
utility’s generating facilely which meets the criteria for accreditation set
forth in the preceding Article, and the conditions of Section 1 of this Article
is a qualified PSGF.
Pursuant to the provisions of Section 4, Article IV,
Part I, the EIAB may issue a provisional accreditation to a PSGF which meets
the criteria for accreditation set forth in the preceding Article, to give the
concerned electric utility a reasonable period of time to either finalize a
long-term power purchase agreement with NAPOCOR, or issue a Board Resolution
releasing NAPOCOR from any further obligation to
serve the power requirements of the concerned electric utility.
SEC. 3. Period
of Processing. – Provided all
requirements shall have been complied with, the EIAB shall take action to
approve or deny any application for accreditation within two (2) months from
the date of the application, unless the EIAB shall have required the submission
of’ additional information, or postponement of final action on an application
or for other reasonable grounds. Any
order postponing final action on an application shall state specifically the
grounds for postponement, and the date on which a final ruling shall be issued.
SEC. 4. Non-transferability
of Accreditation. – Accreditations
issued by the EIAB to electric utilities owning and operating qualified PSGFs
shall not be transferable or assignable except to an electric utility
subsidiary determined to be technically and financially-qualified by the
EIAB. For purposes of this Section, an
electric utility subsidiary shall mean any company wherein the concerned
electric utility holds a majority equity interest.
SEC. 5. Assumption
on Interconnection. – It shall be
assumed that electric utilities owning generating units for their self-generation
are already interconnected with the NAPOCOR grid. Any possible interchange of electricity to
and from NAPOCOR shall be coursed through said
interconnection facilities.
Should a qualified electric utility-owned PSGF,
however, require the transmission of any amount of power generated to the
owner-electric utility, NAPOCOR and/or the host utility shall be
obligated to interconnect such qualified facilities and provide the required
wheeling services, pursuant to the provisions of Section 2, Article VI, Part 1.
ARTICLE III
NAPOCOR’S RELATIONSHIP WITH ELECTRIC UTILITIES
OWNING
FACILITIES FOR SELF-GENERATION
SEC. 1. Provision
on Reserve Capacity. – NAPOCOR shall maintain a reserve capacity
in the NAPOCOR grid system considering all
generating facilities existing and operating therein. A reasonable annual reserve capacity carrying
fee, as determined by NAPOCOR and approved by the ERB, shall be paid by all generating
electric utilities requiring maintenance and/or back-up power from NAPOCOR.
Such payment shall make NAPOCOR obligated to provide maintenance
and back-up power requirements of affected electric utilities on an
“as-available” basis.
SEC. 2. Provision
of Incremental PSG Power. – NAPOCOR shall supply incremental PSG power
to the electric utility owning facilities for self-generation to the extent
provided in a long-term contract for this purpose. The selling rate of NAPOCOR for incremental PSG power shall be
at rates approved by the ERB.
SEC. 3. Provision
for System Emergencies. – NAPOCOR and electric utilities with self-generation
may mutually agree on the provision of power during system emergencies in their
respective systems to the extent possible and under terms to be agreed upon by
both parties.
SEC. 4. Dispatchability. – Electric utilities with self-generation
shall conform with policies pertaining to the Dispatch Management System (DMS)
of NAPOCOR.
SEC. 5. Production
Cost Higher than NAPOCOR’s.
– At a time when production cost from the generating units solely
for internal use of an electric utility is higher than buying from NAPOCOR, and
the electric utility decides to get power from NAPOCOR to replace its own generation, NAPOCOR shall sell to said electric
utility provided that: NAPOCOR’s unit production cost
would remain the same with the added load; NAPOCOR’s system operations would not be
hampered; NAPOCOR’s service to other customers
would not be unduly affected; and NAPOCOR would not be pressured to add new
capacities to meet the new load. NAPOCOR shall not be obligated to purchase
the generating facilities of the electric utility as such action may be
detrimental to the interest of NAPOCOR’s regular customers.
SEC. 6. Excess
Production of PSGF. – In instances
when the generating units of the electric utilities are capable of producing
electricity in excess of their requirement, NAPOCOR shall not be obligated to
purchase such excess power. In instances
when NAPOCOR may opt to purchase power from
said electric utility, purchase rate shall not exceed the “avoided cost” of NAPOCOR at the time of delivery.
SEC. 7. Change
of Status. – An electric utility
with an accredited facility for self-generation may decide to sell excess
production on a regular basis to NAPOCOR or to another electric
utility. Terms and conditions of
purchase by NAPOCOR shall be consistent with the
applicable provisions given in Parts I and III of these Rules and Regulations
and shall be stipulated in a Contract.
SEC. 8. Periodic
Reporting to the EIAB. – The
electric utility owning facility for self-generation shall regularly submit to
the DOE, thru the EIAB, operating and other
information as may be required by the DOE for monitoring and planning
purposes.
SEC. 9. Formulation
of Power Development Plans. –
Electric utilities owning and operating facilities for self-generation shall
submit to the DOE, for review and approval, their
individual or combined long-term power development plans which shall contain an
efficient portfolio of generation (including projected power purchases from NAPOCOR and other qualified PSGFs) and
demand-side resources on or before 15 January 1996 and every year thereafter.
PART V
OTHER PROVISIONS
SEC. 1. Implementation
of the Rules and Regulations. – The
EIAB shall take all necessary and reasonable measures to ensure that the provisions
of these Rules and Regulations are made effective.
SEC. 2. DOE
Revision of the Rules and Regulations.
– The DOE shall prescribe and, from time to time
thereafter, revise such Rules as it determines necessary to encourage private
sector participation in power production.
Such Rules shall be prescribed after consultation with the private
sector and appropriate government agencies.
SEC. 3. Publication. – These Rules and Regulations shall take
effect fifteen (15) days after the date of publication in one (1) newspaper of
general circulation.
FRANCISCO L.
VIRAY
Acting Secretary
Fort Bonifacio, Metro Manila, 2 January 1995
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