annual report 2015 - home | dmcdmc.org.ph/file-manager/files/annual report 2015 final.pdf · annual...

The Distribution Management Committee (DMC) celebrated its 10th year anniversary as a non-stock,

non-profit corporation in its new office located at the 21st floor, Pacific Center Building, San Miguel

Avenue, Ortigas Center, Pasig City.

ANNUAL REPORT 2015

DISTRIBUTION MANAGEMENT COMMITTEE

1

DISTRIBUTION MANAGEMENT

COMMITTEE

Chairman Jaime V. Mendoza

Government –Accredited Professional Organization of Electrical Engineers

Vice Chairman Raquilino B. Pangan+

Industrial Customers

Treasurer Froilan J. Savet Luzon Private and Local Government Distributors

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

Luzon Electric Cooperatives

Jose Redmond Eric S. Roquios

Visayas Electric Cooperatives

Julie B. Real Mindanao Electric Cooperatives Sunday C. Palabrica Visayas Private and Local Government Distributors

Mark A. Valencia Mindanao Private and Local Government Distributors Hipolito A. Leoncio Commercial Customers Jorge H. Lucas Embedded Generators Adolfo L. Mirasol Grid Owner

Ambrocio R. Rosales System Operator

VISION

ERC’s Premier

Technical

Advisor for its

Pursuit of

Excellence in

Power

Regulation

MISSION

To Provide

ERC the Best

Technical

Advisory in

Fulfillment of

its Mission

for Consumer

Interest

2

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

Chairman Froilan J. Savet V-Chairman Nelia F. Irorita Members Alvin M. Farrales

Jorge H. Lucas Jose Redmond Eric S. Roquios

Chairman Mark A. Valencia V-Chairman Jose Redmond Eric S. Roquios Members Hipolito A. Leoncio

Ambrocio R. Rosales Sunday C. Palabrica

Chairman Ambrocio R. Rosales V-Chairman Sunday C. Palabrica Members Adolfo L. Mirasol Julie B. Real Mark A. Valencia

Chairman Raquilino B. Pangan V-Chairman Nelia F. Irorita Members Jorge H. Lucas Jaime V. Mendoza Froilan J. Savet

Chairman Adolfo L. Mirasol V-Chairman Hipolito A. Leoncio Members Alvin M. Farrales Jaime V. Mendoza Julie B. Real

3

Engr. Roberto C. del Rosario Executive Director

This year is a time filled with blessings as we have finally accomplished our long-awaited complete separation of office space and management from the Grid Management Committee (GMC); a milestone accomplishment as we celebrate the DMC’s 10th anniversary. Our office is now located at the 21st floor,

Pacific Center Building, San Miguel

Avenue, Ortigas Center, Pasig City. We

welcome you to drop by and talk to us.

Let us help each other in finding the right

solutions in transforming the electric

industry of our country.

4

As the Chairman of this Committee, it has always been an honor for me to share my knowledge and experience for the improvement of the electric industry. For this year, we have completed drafting our proposed: (1) Rules to Govern the Monitoring of the Small Grid Users, (2) DU User’s Guidelines and Procedures for Online Submission of Distribution System Loss Segregation, Distribution Utility Use, and Reliability Data to DMC, and (3) Embedded Generators Connection and Operational Requirements. The said proposals were already endorsed to the Energy Regulatory Commission (ERC) for review. We have also made nine complete and detailed reports on the compliances of the Distribution Utilities (DUs) assessed during the previous year, a summary report on the performance of the DUs in their System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) in accordance with the reliability indices standards set forth in the rules, and an evaluation report on the recurring power outages in the Catanduanes Island Grid. We determined by survey the practicability of the timetables provided for under sections 3.3 and 3.4 of ERC Resolution No. 26, Series of 2009 entitled “Resolution Amending the Rules for Approval of Regulated Entities’ Capital Expenditure Projects”, and endorsed to the ERC and the Department of Energy (DOE) our comments on their draft rules and guidelines.

Engr. Jaime V. Mendoza Chairman

5

ACCOMPLISHMENTS

Dra

fte

d G

uid

elin

es/S

tan

da

rds

• DU User’s Guidelines and Procedures for Online Submission of Distribution System Loss Segregation and Reliability Data to DMC

• Embedded Generator’s Operational and Connection Requirements

• Rules to Govern the Monitoring of Small Grid Users’ Compliance with the Philippine Small Grid Guidelines (PSGG)

Co

mp

lian

ce

Asse

ssm

en

ts

• BLCI

• CASURECO III

• DANECO

• DLPC

• FIBECO

• GUIMELCO

• ILECO II

• INEC

• KAELCO

• LEYECO III

• MOELCI I

• MOELCI II

• MORESCO I

• NONECO

• PECO

• PELCO II

• TARELCO II

• ZAMECO II

Re

po

rts

• Summary of the DU’s System Reliability Indices

• Summary of Submission of the Distributors’ Compliance with the PDC

• Survey on the Practicability of Timetables Provided for Under Sections 3.3 and 3.4 of ERC Resolution No. 26, Series of 2009

• BENECO, CAGELCO II, CEPALCO, IFELCO, ILECO I, ISELCO II, SIARELCO, SAJELCO’, SOCOTECO II's Compliance with the PDC

• Summary of DUs’ Self-Assessment on their Compliance with the PDC for the Year 2013

6

Com

ments

• "Governing the Issuance of Licenses or Authorization to Retail Electricity Suppliers (RES) Prescribing the Requirements and Conditions Therefor”

• “Revised Rules for Contestability”

• Implementing Guidelines of Section 3 of Department of Energy Circular No. DC2015-06-0008 “Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)”

• “Rules to Amend Resolution No. 8, Series of 2013, Otherwise Known as the Rules to Govern the Interruptible Load Program of Distribution Utilities”

Oth

er A

ctivitie

s

• Evaluation of the Recurring Power Outages in Catanduanes Island Grid

• Orientation on the PDC Compliance for Electric Cooperatives of Regions X, XI and XII

7

ACTIVITIES Accomplished

Proposed “DU User’s

Guidelines and

Procedures for

Online Submission of

Distribution System

Loss Segregation,

Distribution Utility

Use, and Reliability

Data to DMC”

The proposed guidelines are designed to ensure the quality and

integrity of data reported by the DUs through online submission for

efficient monitoring of their performance in terms of distribution

system efficiency and reliability. They also provide step-by-step

procedures and duties of the DMC and DUs in protecting the

confidentiality of data and in exercising diligence in data submission.

A request for posting of the proposed guidelines was already

forwarded to the ERC.

Proposed

“Embedded

Generators

Connection and

Operational

Requirements”

The DMC’s proposed requirements which establish the technical design, operational criteria and standard planning data of embedded generators were posted at the ERC and DMC websites for comment of the concerned parties. The public was likewise invited to attend the expository hearings and public consultations in the different regions.

Rules to Govern the Monitoring of Small Grid Users’ Compliance with the Philippine Small Grid Guidelines (PSGG)

The Committee endorsed its proposed rules establishing a monitoring system for small grid users’ compliance with the PSGG to ensure quality, adequacy and reliability of power supply in the small grid. The said rules shall apply to the small grid users including the generators, small grid owner, system operator, DUs and other entities with a system connected to the small grid.

Summary of the DU’s System Reliability Indices

A summary report on the DUs’ System Reliability Indices for the first and second quarters of CY2015 was submitted to the ERC for their guidance and information.

Summary of Submission of the Distributors’ Compliance with the PDC

The report shows the three-year summary of submission of compliance reports by the DUs for the years 2011-2013. It also shows the increase in number of submission of reports by the DUs since 2011. The conduct of compliance assessments to selected DUs and the regional orientation workshops throughout the country helped in informing the DUs of the rules and procedures in complying with the standards of the PDC.

Reports on

BENECO,

CAGELCO II,

IFELCO, ILECO

The results of evaluation on the status of compliance of Benguet Electric Cooperative, Inc. (BENECO), Cagayan II Electric Cooperative, Inc. (CAGELCO II), Ifugao Electric Cooperative, Inc. (IFELCO), Iloilo I Electric Cooperative, Inc. (ILECO I), Isabela II

8

I,ISELCO II,

SIARELCO and

SAJELCO’s

Compliance with the

PDC

Electric Cooperative Inc. (ISELCO II), Siargao Electric Cooperative, Inc. (SIARELCO) and San Jose Electric Cooperative, Inc. (SAJELCO) with the first priority compliance standards as provided in the “Rules to Govern the Monitoring of Compliance of the Distribution Utilities with the PDC” were discussed in detail on the report for each DU. The evaluation was based on the 2012 and 2013 data gathered from the reports submitted by the DUs.

Summary of DUs’

Self-Assessment on

their Compliance with

the PDC for the Year

2013

The summary shows the number of DUs which submitted their

Distributor’s Compliance Monitoring Report (DCMR). Among the 146

DUs (20 private, 120 Electric Cooperatives (ECs), and 6 Economic

Zones (EZs), 132 DUs (19 private, 110 ECs and 3 EZs) or 90% of the

total number of DUs submitted their DCMR. It also shows the

increase in number of submission of reports by the DUs from 2011 to

2013.

Survey on the Practicability of Timetables Provided for Under Sections 3.3 and 3.4 of ERC Resolution No. 26, Series of 2009

As instructed by the ERC, the DMC conducted a survey to all ECs to determine the effective use of the prescribed periods within which to submit certain requirements as provided for under sections 3.3 and 3.4 of the ERC Resolution No. 26, Series of 2009. Out of 120 ECs, only 23 ECs responded and a majority of which stated that the prescribed periods for sending notice of Force Majeure or Fortuitous Event (FM/FE) and for filing applications were not sufficient time to prepare the necessary documents primarily due to the immediate restoration activities which the concerned EC’s personnel are engaged in; thus, prescribed periods must be extended.

The purpose of such survey is to address the problem of late

submission by the DUs of their applications for FM/FE Capital

Expenditures (CAPEX) projects and Emergency CAPEX projects. Compliance Assessments Conducted at Various DUs

A selected group of members and technical staff went to Bohol Light Company, Inc. (BLCI), Camarines Sur III Electric Cooperative, Inc. (CASURECO III), Davao del Norte Electric Cooperative, Inc. (DANECO), Davao Light & Power Co. (DLPC), First Bukidnon Electric Cooperative, Inc.(FIBECO), Guimaras Electric Cooperative, Inc. (GUIMELCO), Iloilo I & II Electric Cooperatives, Inc.(ILECO I&II), Ilocos Norte Electric Cooperative, Inc. (INEC), Kalinga Apayao Electric Cooperative, Inc. (KAELCO), Leyte III Electric Cooperative, Inc. (LEYECO III), Misamis Occidental I & II Electric Cooperative, Inc. (MOECLI I & II), Misamis Oriental I Electric Cooperative, Inc. (MORESCO I), Northern Negros Electric Cooperative, Inc. (NONECO), Panay Electric Co., Inc. (PECO), Pampanga II Electric Cooperative, Inc. (PELCO II), Tarlac II Electric Cooperative, Inc. (TARELCO II) and Zambales II Electric Cooperative, Inc. (ZAMECO II) to verify the compliance of the said DUs and to validate their submitted compliance reports.

9

Comments on the ERC’s “Rules Governing the Issuance of Licenses or Authorization to Retail Electricity Suppliers (RES) Prescribing the Requirements and Conditions Therefor” and the “Revised Rules for Contestability”

The DMC seeks clarifications on some provisions of these rules. Most importantly, it is recommended that contestable customers should have the option to remain captive to promote customer choice especially since most DUs have no Peak/Off-Peak (POP) rate program. Imposing POP or TOU pricing would effectively increase generation rate of contestable customers.

Comments on the First Draft of the Implementing Guidelines of Section 3 of Department of Energy Circular No. DC2015-06-0008 “Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)”

The DMC sought clarification on the necessity of engaging the services of a third party as this would entail additional costs for the DUs; thus, resulting to higher electricity rates defeating the purpose of the guidelines in lowering costs.

Comments on the second draft of the “Rules to Amend Resolution No. 8, Series of 2013, Otherwise Known as the Rules to Govern the Interruptible Load Program of Distribution Utilities”

The Committee recommended some changes in Article II, Section 2 on the Activation of ILP to be consistent with the original provision on yellow alert. The Committee likewise wanted explanations on the deletion of the ceiling amount for the Maintenance Cost which was provided in the original rules.

Evaluation Report on the Recurring Power Outages in Catanduanes Island Grid

In response to the request of the Department of Energy (DOE) on the recurring power outages, the DMC submitted its evaluation report identifying the causes of interruptions and recommending among others, that NPC SPUG should turnover to the First Catanduanes Electric Cooperative, Inc. (FICELCO) its dispatch functions.

PDC Compliance Orientation for ECs of Region X, XI and XII

The technical staff conducted a seminar on how to comply with the standards of the PDC. Participants were given the procedures to be able to obtain the data required by each standard.

10

The DMC has

been conducting

assessments of

compliances in

various DUs

since 2011

In 2015 alone,

18 DUs were

assessed

Out of 140 DUs

35 DUs were

already

assessed

11

The DMC is coordinating with World

Bank and its consultant for the

study of the connection and

operational requirements specific

only to embedded generation using

conventional and renewable energy

resources

12

MEETINGS CONDUCTED Regular Meetings

1. 12th Regular Meeting held on December 8, 2015 at DMC Conference Room with 85% Members’ Attendance The issue on whether the operations of embedded generators should be covered by the PDC or the PGC was brought up upon knowing that the GMC had already drafted its rules on the compliance by embedded generators with the PGC. After a lively discussion on the matter, it was decided to study first the GMC’s draft rules then review their basis in making the draft. Updates on the proposed “Embedded Generators Connection and Operational Requirements” were made for the guidance of the DMC. It was suggested to adjust the timeline in case the proposed requirements could not be presented according to its original schedule. It was further suggested scheduling coordination meetings with embedded generators be included in the activities prior the conduct of expository presentations and public consultations.

2. 11th Regular Meeting held on November 23, 2015 at DMC Conference Room with 92% Members’ Attendance The meeting was commenced by enumerating the updates of the issues pending during the previous meeting. The first matter involved the instruction

of the ERC-Regulatory Operations Service’s (ROS) to the DMC to include in the conduct of assessment the compliance of DUs with the PGC. It was mentioned that the GMC was not amenable with the turn-over to the DMC of their function in monitoring the DUs. The DMC decided to wait for further instruction from the ERC. The second matter was about the result of the joint meeting of the DMC’s and GMC’s Rules Review Subcommittees (RRSC). The GMC-RRSC requested to discuss with the DMC-RRSC regarding the draft rules on compliance of embedded VRE generators with the PGC. The last of the pending matters was about the DOE Department Circular DC2015-006-0008: “Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)”. The DOE representative announced that a board resolution had already been issued by the ERC for the implementing guidelines of the same subject matter. For the subcommittee reports, the Compliance Subcommittee presented the output of the assessments conducted at FIBECO, PELCO II, BLCI, NONECO and MOELCI I. Following are their compliance status:

13

FIBECO’s compliance status:

Degree of Compliance First Priority Second Priority Total

Compliance 15 3 18

Non-Compliance 6 1 7

Not Applicable 6 0 6

PELCO II’s compliance status:


Compliance 25 4 29



BLCI’s compliance status:


Compliance 26 3 29



NONECO’s compliance status:


Compliance 20 0 20



MOELCI I’s compliance status:


Compliance 12 1 13



The approval of all the aforementioned assessment reports, except FIBECO and PELCO II, were deferred until receipt by the DMC of their additional documents which were due in October 2015. The Distribution Operations Subcommittee (DOSC) presented the outcome of its meeting held last November 11, 2015 regarding the draft Philippine Small Grid Guidelines (PSGG) Reporting Template and Guidelines. The list of events requiring

the submission of significant incident report was reviewed by the DMC and a final list was approved. The draft guidelines are to be posted on the ERC and DMC websites for comments of the stakeholders. Another DOSC report was presented regarding the updates of the draft “Embedded Generators Connection and Operational Requirements”. The DMC finalized the proposed timeline for expository hearings and public consultations in the Luzon and Visayas

14

& Mindanao regions and for the deadline of submission of comments.

3. 10th Regular Meeting held on October 6, 2015 at AVA Room with 92% Members’ Attendance The first discussions were focused on the draft revisions to the PDC. It was noted that the capacity limit for large generators provided for under the PGC was different from the capacity proposed by the DMC for large embedded generators. A joint meeting with the GMC was proposed to harmonize the matter. The DMC Chairman announced that the DUs may, at present, voluntarily comply with the provisions of the Republic Act 7920, otherwise known as the Electrical Engineering Law. However, for the conduct of compliance assessments next year, compliance by the DUs with RA 7920 must already be included. With the imminent expiration of terms of some of the incumbent members, Engr. Ambrocio R. Rosales politely declined to be reappointed for another term due to his increasing workload in his mother company. The DMC decided to request for nominees from his sector to fill in the impending vacancy. The DMC reiterated their concern on the ERC’s order to take over the monitoring of DUs’ compliance with the requirements of the PGC. They sought the advice of the ERC representative to elevate the matter to his superiors. The output of the joint meeting of the Distribution Planning Subcommittee (DPSC) and Distribution Reliability and Protection Subcommittee (DRPSC) regarding the draft “Guidelines and Procedures for Online Submission of Distribution System Loss Segregation, Distribution Utility Use, and Reliability

Data” was discussed. The DMC commented that the period set for the transition and conduct of workshops were insufficient, thus a longer period was given for such activities. Also suggested was the inclusion of the deadline of submission of reports by the DUs to prevent extension of backlogs. For the RRSC report, all comments prepared by the subcommittee regarding the DOE Department Circular DC2015-006-0008: “Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)” were shown for review. The DMC, upon deliberation on the RRSC comments approved to endorse them to the ERC-ROS. The DOE representative was thereafter instructed to update the DMC on the outcome of the upcoming public consultation on the same matter.

4. 9th Regular Meeting held on September 7, 2015 at the AVA Room with 85% Members’ Attendance The outcome of the RRSC meeting held last August 25, 2015 was reported presenting the second draft report of Mr. Jorge Bircher, the consultant engaged by World Bank to assist the DMC in drafting the proposed VRE Embedded Generator Connection and Operational Requirements. Since Mr. Bircher’s study was based on foreign practices, the DMC suggested researching on the rationale of such practices, and on certain requirements at connection points. It was likewise suggested realigning existing limits for large generators in Luzon, Visayas and Mindanao. Another subcommittee report was presented to show the result of the joint meeting of the DPSC and the DRPSC which was held last September 1, 2015. The DMC focused their comments on

15

the possible problems of the DUs in accessing their account. To inspire the DUs to be more diligent in complying with the requirements of the PDC, the technical staff drafted the Certificate of Compliance which has been approved by the DMC to be issued to certain DUs which are determined to be full compliant with all the standards. The DMC was informed of the ERC- ROS instruction to include the monitoring of DUs’ compliance with the PGC standards in the activities of the DMC. The DMC’s concern is on how to explain it to the DUs without a written order from the ERC.

5. 8th Regular Meeting held on August 11, 2015 at the AVA Room with 85% Members’ Attendance The first topic arising from the minutes of the previous meeting concerns MERALCO’s compliance plan and schedule relative to system loss segregation. Since the issues raised were immediately addressed by MERALCO, the DMC suggested that a quarterly progress report should be submitted to the DMC. For the main agenda of the meeting, the RRSC presented the results of its

series of meetings regarding the revisions to the PDC. Comments gathered from the ERC-Regulatory Operations Service and the GMC on the proposed PDC revisions were considered for harmonization of the PDC and PGC. Another report from RRSC is their comments on the first draft of the “Rules Governing the Issuance of Licenses or Authorization to Retail Electricity Suppliers (RES) and Prescribing the Requirements and Conditions Therefore” and the “Revised Rules for Contestability”. Committee Members were invited to attend the ERC public consultation on the same subjects to be held on August 14, 2015. The DOSC presented the outcome of its meeting held on July 15, 2015 regarding DOE’s request for clarification on the classification of the 69kV line in Mindoro. The DMC suggested focusing on the technical issues and endorsing the draft reply to the DMC Legal Counsel. For the CSC report, the following results of compliance assessments conducted in various DUs were presented for approval of the DMC. FIBECO’s compliance status is not final yet as additional documents are still due for submission.

FIBECO’s compliance status:


Compliance 8 0 8



INEC’s compliance status:


Compliance 23 4 27



16

CASURECO III’s compliance status:


Compliance 3 0 3



GUIMELCO’s compliance status:


Compliance 15 1 16



DLPC’s compliance status:


Compliance 27 4 31



MORESCO I’s compliance status:


Compliance 27 4 31



The review of the applicability of six standards (DSC-PDC- 20, 21, 23, 24, 25, 26) in the “Rules to Govern the Monitoring of Compliance of Distribution Utilities with the PDC” was endorsed by the DMC to the RRSC for further study. The DMC likewise instructed the technical staff to issue certificates of compliance to DUs with 100% compliance with the first and/or second priority standards. The results of the special meetings held last August 4, 5 and 7, 2015 regarding the Embedded VRE Generators were presented. The DMC suggested forwarding all comments relating to

PGC to the GMC for their further comments.

6. 7th Regular Meeting held on July 6-7, 2015 at Busuanga, Palawan with 100% Members’ Attendance First topic in the current issues is the outcome of the DOSC meeting held last July 16, 2015. The subcommittee determined the compliance of MERALCO with the Philippine Electrical Code (PEC) grounding requirements. The CSC presented the results of the compliance assessments conducted at ILECO II, TARELCO II, ZAMECO II and MOELCI II.

17

ILECO II’s compliance status:


Compliance 18 2 20



TARELCO II’s compliance status:


Compliance 24 2 26



ZAMECO II’s compliance status:


Compliance 22 2 24



MOELCI II’s compliance status:


Compliance 16 0 16



It was noted that certain standards in the Rules to Govern the Monitoring of Compliance of Distribution Utilities with the PDC which are applicable only to the DUs with 1MW load customers are actually applicable to all DUs; thus, proper amendments in the said rules are proposed to be made. Another subcommittee report was presented by the DOSC. The subcommittee’s recommendation on the classification of the 69KV line in Mindoro was explained and reviewed by the DMC. It was decided to conduct another meeting to resolve the issue with representatives from the DOE and ORMECO.

Also presented was another letter from DOE endorsing a letter-complaint from Mr. Raoul Rodriguez, a residential consumer of Central Negros Electric Cooperative (CENECO). Mr. Rodriguez reported frequent interruptions in his area that have been recurring for two (2) years. The technical staff was instructed to coordinate with CENECO and ask for an explanation regarding the complaint.

7. 6th Regular Meeting held on June 9, 2015 at AVA Room with 100% Members’ Attendance

The outcome of the inception meeting with representative of World Bank and its consultant was presented for

18

guidance of the Committee. Changes on the Terms of Reference were mentioned to broaden the scope of the study of the consultant. The staffs were requested to revisit the inception report particularly on the coordination among PEMC, DMC and GMC for the revision of the PDC and the PGC to ensure that WESM rules are harmonized with the changes made on the two codes. To update the Committee with the result of the monitoring activities of the technical staff, reports were made on the summary of DUs’ Reliability Indices and System Efficiency for the 1st quarter of 2015. It was suggested that explanations should be requested from DUs for not implementing system loss segregation. On the matter of finalizing the revisions to the PDC, proposals for the PDC Metering Chapter were presented and deliberated upon by the Committee. Discussions on the illustration of the line-to-line and line-to-ground installation of single-phase meters were reserved for next discussion. Finally, a request from ERC to investigate an alleged non-compliance of MERALCO with the PEC’s grounding requirement was reported. Initial discussion on the matter was made but the Committee later on decided to further investigate the matter in a subcommittee meeting.

8. 5th Regular Meeting held on May 12,

2015 at the AVA Room with 92% Members’ Attendance

The first topic arising from the minutes of

the previous meeting concerns the DMC’s request for a consultant funded by the World Bank. The Executive Director informed the Committee that the said request had already been approved by the ERC.

Another matter arising is the status of PELCO II submission of its voltage profiles both at the connection point and at the substation. Since there is no document received yet from the same DU, the committee instructed the staff to inform them should a copy arrive from PELCO II. Last in the business arising is the Committee’s request for a copy of the Distribution Impact Study (DIS) of Solar Philippines. Capiz Electric Cooperative (CAPELCO) informed the Committee that they had already asked Solar Philippines permission to furnish the DMC of such copy and that they were still awaiting for Solar Philippines’ answer. For the main agenda of the meeting, the first in the list is the inception mission of the consultant from the World Bank. Mr. Jorge Bircher, the selected consultant, presented the overview of the embedded renewable energy generation while another guest from the World Bank, Ms. Silvia Romero, presented the global variable renewable grid integration program. Comments, suggestions and questions were requested to be sent through email. Next in the agenda are subcommittee reports. The first is the DRPSC report which involves the issue between First Catanduanes Electric Cooperative (FICELCO) and Sunwest Electric Co. (SUWECO) on the power outages in Catanduanes. The summary of findings of the DRPSC was presented for approval by the Committee. It was suggested that all generators should participate in the review of the circuit breaker settings of power plants. The DPSC presented its recommendations for MERALCO’s

19

system loss segregation. The staff was advised to request MERALCO for its compliance plan including the schedule of preparing modules on Advanced Distribution Management System (ADMS), modules in each substations, and system loss data per substation.

The DCSC presented the summary of compliance assessments conducted at Benguet Electric Cooperative (BENECO) and South Cotabato II Electric Cooperative (SOCOTECO II). The subcommittee’s recommendations to improve the conduct of assessment were likewise presented.

BENECO’s compliance status:

Degree of Compliance PDC’s First Priority

Compliance 26

Non-Compliance 0

Not Applicable 1

Total No. of Standards 27

SOCOTECO II’s compliance status:


Compliance 13

Non-Compliance 13

Not Applicable 1


The CSC also presented the summary of the DOE’s comments on the draft Rules to Govern the Monitoring of Compliance by the Small Grid Users with the PSGG. DOE’s comments were found to be reasonable but only a few were amenable to the subcommittee. The Committee adopted the recommendations of DCSC for finalization of the draft rules. The last topic discussed by the DRPSC was the summary of the DUs’ reliability indices and system efficiency for 2014. The summary shows the percentage of the DUs which submitted their reports and the percentage of their compliance with the rules on reliability indices and system efficiency. It was suggested that since reliability standards were being assessed by group, the list of DUs in each group should be specified in the report in order to identify the largest

contributor in reliability indices. Moreover, loss of supply in the substation should not be counted in the interruption report of the DU as it is not included in the computation of the DU’s SAIFI and SAIDI. For the management’s report, budget utilization for the month of April 2015 was presented as well as the procurement of services of Reyes Tacandong and Co. (RTC) to secure a confirmatory ruling on the DMC’s tax exemption.

9. 4th Regular Meeting held on April 14, 2015 at AVA Room with 85% Members’ Attendance ERC Commissioner Geronimo D. Sta. Ana was present in this regular meeting for the purposed of orienting him of the

20

regular functions of the Committee and their manner of convening meetings. First in the agenda is MERALCO’s System Loss Segregation Methodology. The staff showed and explained the concept of the said methodology in details. There arose an issue on whether or not the procurement of the said methodology is already included in its CAPEX. The staff was instructed to request MERALCO to submit their partial compliance report and the corresponding Gantt Chart showing its activities. The DRPSC presented the result of its last meeting relative to the issue between FICELCO and SUWECO. Some documents were requested from both companies to support their statements. An instruction was given to the staff to request a presentation from the NPC regarding its dispatch procedures. A suggestion was likewise made for FICELCO and NPC-SPUG to accelerate the transfer of dispatch functions between them. The metering chapter of the proposed PDC 2014 Edition was presented for review. The Committee however, decided to set a special meeting to study thoroughly the subject matter. In the membership part of the proposed revision to the PDC, TransCo requested to be included as one of the regular members of the DMC. The Committee found the request to be amenable, however, they prefer to respect the opinion of the ERC-Regulatory Operations Service (ROS) to decline such request. A letter-complaint from PELCO II regarding fluctuation/undervoltage problems occurring in December 2014 was shown for appropriate action of the Committee. However, the Committee

concluded that copies of PELCO II’s voltage profiles at the connection point and at the substation for the month of December 2014 should be provided first before they could start with their investigation on the matter. Another letter was shown regarding Solar Philippines providing 519 kilowatts power to the City Mall Roxas located inside CAPELCO’s franchise area. CAPELCO was asking for guidance from the Committee in order to avoid having stranded assets. The Committee requested for a copy of the Distribution Impact Study (DIS) from the Solar Philippines. The report of the National Grid Corporation of the Philippines (NGCP) on the Mindanao Easter Black-Out was presented to inform the Committee of the sequence of events which happened prior to the blackout. Finally, the accounting report was presented showing budget utilization of the DMC for the month of March 2015. ERC Representative Ranillo Maatubang advised the DMC to submit to the ERC an advanced copy of the audited financial report for the collection of the proportionate shares of the DUs.

10. 3rd Regular Meeting held on March 5, 2015 at San Antonio, Zambales with 100% Members’ Attendance The first part of the meeting tackled on the updates of MERALCO’s System Loss Segregation Methodology and of the Metering Chapter of the proposed amendments to the PDC. Tentative schedule for subcommittee meetings were set to discuss the matter with the concerned parties. The draft Terms of Reference (TOR) for the study of the Embedded Renewable Energy Generation was presented to

21

seek comments from the Committee before the said draft would be sent to the World Bank. The said TOR covers the scope of work of the Consultant to be sent by the World Bank. The next topic discussed was the DOE’s request for the technical assessment on the compliance of FICELCO and SUWECO with the PDC and the PSGG. DOE’s request came about after the occurrence of power outages on December 23-26, 2014. The Committee decided to discuss the matter at the subcommittee level first to assess the compliance of FICELCO and SUWECO. The revised rules on the issuance of Certificate of Compliance (COC) were presented to inform the Committee on the required documents to be presented by the applicant generators for their COC renewal. An issue thereon arose when three (3) generators had requested for sworn statements from the DMC stating that they were compliant with the provisions of the PDC. The Committee decided to discuss the matter further in a subcommittee on how to establish a data base for generators and the necessary procedures to guide the DMC in carrying out this process. Next in the agenda is the Committee on Energy House Bill No. 5214 entitled: “An act Mandating All Electric, Cable and Telecommunications Companies to Conduct Periodic Inspections of their Respective Utility Line Installations to Ensure Strict Compliance with the

Standards and Regulations Provided Under the Philippine Electrical Code”. The Committee studied the bill and opined that the bill as a whole was not necessary since provisions contained therein were already covered by the National Building Code. The Committee further commented that the National Building Code should strictly be implemented.

11. 2nd Regular Meeting held on February 10, 2015 at AVA Room with 100% Members’ Attendance The Committee studied the Second Draft “Rules to Amend Resolution No. 8, Series of 2013, otherwise known as the Rules to Govern the Interruptible Load Program (ILP) of Distribution Utilities”. All questions raised on the provisions therein were clarified by Engr. Ambrocio Rosales. Subcommittee names were proposed to be changed by the Committee except the DRPSC to be more consistent with the policy objectives of the DMC. Along with the change of subcommittee names is the change in subcommittee membership. Committee Members having relevant technical background and experience were assigned to the appropriate subcommittees for efficiency of results. For the subcommittee reports, the DTSSC reported on the outcome of the compliance assessments conducted at Ifugao Electric Cooperative, Inc. (IFELCO) and Iloilo I Electric Cooperative, Inc. (ILECO I):

22

IFELCO’s compliance status:


Compliance 21

Non-Compliance 6

Not Applicable 0


ILECO I’s compliance status:


Compliance 13

Non-Compliance 13

Not Applicable 1


It was noted that South Cotabato II Electric Cooperative (SOCOTECO II) requested for an extension of submission of the supporting documents pertaining to their compliance reports. The RRSC reported on the outcome of its last subcommittee meeting in which comments of the ERC- ROS on the amendments to the PDC were thoroughly discussed. The DMSSC reported the proposed Metering Chapter of the amendments to the PDC. The staff was instructed to coordinate with MERALCO for the technical specifications on metering. The staff showed the outcome of the PSG Dispatch Protocol Orientation conducted at the Palawan Electric Cooperative (PALECO) last February 2-3, 2015 which was participated in by representatives from PALECO, NPC-SPUG, DMCI, PPGI and Delta P. Updates on the proposed PSGG including the outcome of the public consultation conducted by the DMC last January 28, 2015 were likewise reported. The proposed guidelines are set to be endorsed to the ERC for its final approval.

Another presentation was made on the “Guide to Operational Impact Analysis of Variable Renewables: Application to the Philippines” prepared by World Bank. It serves as a guide for those who want to investigate the impact of Variable Renewable Energy (VRE) on the operation of power systems in the Philippines in order to build capacity in the country by determining important issues of the national grid. As for the 3-Year PDC compliance monitoring, the following highlights were shown for the information of the Committee: Majority of Luzon DUs (90%)

submitted their DCMR for the year 2013;

In Luzon, specifically Region III, the number of submissions had increased for the year 2012 and 2013;

In Visayas, the number of submissions had decreased for the year 2012 due to tropical Storm that affected the area;

All DUs in the Visayas (100%) submitted their 2013 DCMR; and

For Mindanao, all regions except ARMM attained a 90-100% submission for 2013.

23

12. 1st Regular Meeting held on January

13, 2015 at AVA Room with 77% Members’ Attendance The Committee announced the orientation on Dispatch Protocol to be conducted at the PALECO on February 2-3, 2015. Resource persons for the said orientation from the Committee were assigned. Updates on the status of pilot testing for online submission of DUs’ reports were briefly discussed. The technical staff was directed to rerun the application using the sanitized data from Agusan del Norte Electric Cooperative (ANECO). Another pilot

testing would be conducted at ZAMECO II. The Committee reviewed the second draft of the rules governing ILP which was presented to them. Some provisions in the original rules which the Committee found to be necessarily applicable to the present condition were proposed to be retained. Comments and suggestions arrived at would be forwarded to the ERC for its consideration. The staff presented the status of the DUs’ submission of compliance reports. The following table shows the list of DUs which submitted and did not submit the required reports to the DMC:

DUs’ Area With Submitted

Reports

Without Submitted

Reports

Luzon 63 9

Visayas 37 0

Mindanao 31 6

Total 131 15

Government Representative Ranillo Maatubang informed the Committee that ERC-ROS could not release their prepared comments as they were still awaiting for the draft amendments of

the PGC from the GMC. He suggested that a subcommittee meeting be held to harmonize the proposed amendments to the PDC with those of the PGC.

24

The DMC gives workshops to train

the technical staff of various DUs on how to prepare compliance reports and other technical reports required under the PDC. Public consultations

are likewise conducted to gather comments from the participants on the guidelines/standards proposed

by the DMC.

25

Subcommittee Meetings

1. Joint DMC and GMC RRSC Meeting held on December 9, 2015 at AVA Room with 60% Members’ Attendance

The GMC-RRSC convened with the

DMC-RRSC to inquire on some provisions of the DMC’s draft requirements for embedded generators to clarify the scope of application of the said draft and to determine the limits of the GMC’s proposed rules on monitoring compliance by the VRE generators with the PGC.

2. DOSC Meeting held on November 11,

2015 at DMC Conference Room with 86% Members’ Attendance

The subcommittee reviewed section 3

of the draft Philippine Small Grid Guidelines (PSGG) Reporting Template and Guidelines and laid down a list of events which would require the system operator to submit a report on significant incidents.

3. Joint DMC and GMC RRSC Meeting

held on October 20, 2015 at AVA Room with 50% Members’ Attendance

The meeting was convened with the

subcommittee members of the GMC who drafted the “Addendum to Amendment No. 1 of the PGC Establishing the Connection and Operational Requirements for Variable Renewable Energy (VRE) Generating Facilities” to clarify their provisions on connection requirements which might be adopted by the DMC-RRSC in the DMC’s proposed requirements for embedded generators as recommended by the World Bank consultant, Mr. Jorge Bircher. Mr. Bircher was also the consultant of the

GMC-RRSC when they drafted their requirements for VRE generators.

4. RRSC Meeting held on October 15,


The subcommittee reviewed the

answers of Mr. Bircher to the questions raised by the subcommittee during its previous meeting regarding the rationale of some provisions of the draft “Embedded Generators Connection and Operational Requirements”, particularly on the connection requirements.

5. CSC Meeting held on October 13, 2015

at DMC Conference Room with 75% Members’ Attendance

The technical staff presented the output

of the PDC compliance assessments conducted at FIBECO, PELCO II, BLCI, NONECO and MOELCI I. The subcommittee reviewed the evaluation made by the staff and corrected some minor errors on the report.

6. RRSC Meeting held on September 29,


The first draft of the Implementing

Guidelines to Section 3 of the Department of Energy Circular No. DC2015-06-0008 “Mandating All Distribution Utilities to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)” was presented to the subcommittee for its review. Comments gathered from the subcommittee were sent to the electric cooperatives for their further comments.

26

7. DPSC and DRPSC Joint Meeting held

on September 1, 2015 at DMC Conference Room with 70% Members’ Attendance

The subcommittee reviewed the

proposed “Guidelines and Procedures for Online Submission of Distribution System Loss Segregation and Reliability Data” which was prepared by the technical staff. The first set of questions was focused on the DUs’ default and login passwords and the possible errors which they may encounter in accessing their account.

8. RRSC Meeting held on August 25,


The only agenda of the meeting is the

second draft report prepared by Mr. Bircher. The report is still incomplete as there are main subjects which have not been discussed in the report like the requirements for each type or category of embedded generators. Also, the necessity of conducting a System Impact Study (SIS) is not clear for the installation of an embedded generator. The subcommittee will further discuss with Mr. Bircher the important matters which must be included in the proposed VRE Embedded Generator Connection and Operational Requirements.

9. RRSC Meeting held on August 18,


The first agenda of the meeting is the

applicability of certain provisions for the First Priority and Third Priority Standards provided for under the “Rules to Govern the Monitoring of Compliance of Distribution Utilities with the PDC” to DUs with 1MW load customers.

The next agenda is the second draft of

the proposed VRE Embedded Generator Connection and Operational Requirements. It was decided among

others, that due to the impracticality to adopt the practices of the embedded generators abroad, a different set of provisions will be drafted bearing in mind the economical and geographical conditions of the local embedded generators.

10. RRSC Meeting held on July 28, 2015 at

DMC Conference Room with 60% Members’ Attendance

The subcommittee conducted a

meeting with the participation of Engr. Jaime S. Patinio, Energy Consultant of SM Prime Holdings and a former DMC Member. The meeting was set to discuss ERC’s first draft of the “Rules Governing the Licenses or Authorization to Retail Electricity Suppliers (RES) and Prescribing the Requirements and Conditions Therefor” and the “Revised Rules for Contestability” and to prepare comments on the said rules for endorsement to the ERC.

11. DOSC Meeting held on July 15, 2015 at

DMC Conference Room with 71% Members’ Attendance

This is a follow up meeting on the

alleged non-compliance by MERALCO with the Philippine Electrical Code’s (PEC) grounding requirements. MERALCO representatives presented their current grounding requirements for low voltage services. Upon review of MERALCO’s requirements and procedures, the DOSC confirmed the compliance of MERALCO with PEC’s grounding requirements.

12. DOSC Meeting held on July 9, 2015 at

AVA Room with 71% Members’ Attendance

A letter from the DOE was presented

asking for clarification on the exact classification of the 69 KV line in Mindoro Island. Different opinions were discussed on how it should be classified. Finally, the subcommittee

27

decided that based on the function of said line it should be classified as a transmission in the small grid.

13. DOSC Meeting held on June 16, 2015

at AVA Room with 100% Members’ Attendance

The purpose of the meeting was to give

MERALCO the opportunity to explain on their alleged non-compliance with the Philippine Electrical Code’s (PEC) grounding requirements as directed by the ERC. Representatives of MERALCO discussed their requirements and procedures for service connection of low voltage consumers. They also emphasized that energization would only commence upon acquisition of the Certificate of Final Inspection from the Local Government Unit. The subcommittee requested for a written answer from MERALCO to the allegations of their non-compliance.

14. DOSC Meeting held on June 4, 2015 at


The subcommittee reviewed the original

Metering Chapter of the PDC as basis of revisions to the proposed chapter for the PDC 2015 Edition. Most of the revisions were made on the metering requirements by deleting some provisions which were not applicable to the current developments in the distribution system and by defining in details some provisions for better understanding by the users.

15. RRSC Meeting held on May 11, 2015 at AVA Room with 100% Members’ Attendance

An inception meeting with World Bank’s

representative and its consultant was held to discuss the terms of reference specifically the scope of work of the consultant for the study of the Connection and Operational Requirements of Embedded Renewable Energy Generation. The subcommittee requested the consultant to extend his studies to all types of embedded generators including those which do not use renewable energy and to determine the maximum penetration of VRE generation.

16. DCSC Meeting held on May 11, 2015 at


The first part of the meeting was

focused on the output of the compliance assessment conducted at Benguet Electric Cooperative (BENECO) on September 23-25, 2014 particularly on the system losses, critical loading of transformers and interruptions with unknown cause which occurred from 2011-2012. While the output of BENECO’s compliance was still undergoing evaluation, the output of assessment conducted at South Cotabato II Electric Cooperative (SOCOTECO II) had already been evaluated and follow-ups on their supporting documents had been made. The following is the status of compliance of SOCOTECO II:


Degree of Compliance Status of Compliance

Previous Updated

Compliance 7 13

Non-Compliance 19 13

Not Applicable 1 1

Total No. of Standards 27 27

28

Next in the agenda were the comments

submitted by DOE on the DMC’s draft Rules to Govern the PSGG. The subcommittee deliberated on the wisdom of DOE’s recommendations especially on the procedures in load dropping then resolved to include some of them in the final draft of the rules.

Finally, the subcommittee’s work plans

for 2015 and 2016 were shown including its basic functions to help members better understand its composition since it was only created earlier this year.

17. RRSC Meeting held on May 7, 2015 at


The subcommittee studied their work

program prepared by the staff for the entire year 2016. This work program would serve as a guide to the subcommittee members to focus in their priorities and also as their basis of accomplishments. Included in the work program are the finalization and publication of PDC 2015 Edition and its addendum on the Variable Renewable Energy (VRE), and the conduct of research on the Utility Performance Indices and Scorecard Utilities Performance.

18. DRPSC Meeting held on May 5, 2015


The meeting was called to continue the

technical assessment of the power

outage in the Catanduanes Island Grid

which happened last December 23-26,

2014. Representatives of FICELCO,

SUWECO, Catanduanes Power

Generation Inc. (CPGI) and National

Power Corp. – Small Power Utilities

Group (NPC-SPUG) were present to

narrate the events preceding the

outage. Upon agreement of all the

parties involved, it was resolved that

FICELCO would provide the DMC their

planned activities which should be

accomplished by FICELCO in

coordination with the concerned parties

to address the problem in the system

19. Joint DRPSC and DOSC Meeting held on May 5, 2015 at AVA Room with 78% Members’ Attendance

The purpose of the meeting was to

discuss the 2016 work program for each of the subcommittees. The subcommittee members included details on some activities to improve their performance in implementing certain rules and in monitoring compliance of the DUs.

20. DPSC Meeting held on April 28, 2015

at AVA Room with 100 % Members’ Attendance

The subcommittee’s work program for

the year 2016 was presented for review and finalization. Among the targets and activities involved therein are the preparation of reports on the PDC Compliance Assessment and the System Efficiency Report, study on ocean thermal energy, review of the distribution planning procedures and the formulation of database for embedded generators.

Also discussed was the comments

made by the Committee on the System Loss Segregation of MERALCO. Committee Member Savet from MERALCO stated two (2) options for MERALCO from which to choose, one is to procure a dedicated and separate system from the Advanced Distribution Management System (ADMS) and the other is to add a system loss segregation module to their existing ADMS. The latter is more cost efficient than the former. The subcommittee decided to choose the latter option and requested MERALCO for the progress

29

report and timetable for the integration of the additional module with their ADMS.

Another issue discussed was the

alleged non-compliance by MERALCO with PEC’s requirements claimed by a certain Engr. Roberto C. Ocampo. The subcommittee decided not to comment since the issue pertains to violations to the provisions of the PEC and not of the PDC.

21. DMSSC Meeting held on February 9,

2015 at DMC Office with 83% Members’ Attendance

The meeting discussed the proposed

Metering Chapter of the amendments to

the PDC and the following are the

highlights:

Dispute settlement process not covered by the provision;

Additional provision for Single Phase Metering Circuit;

Provisions not applicable for Embedded Generator;

Burden rating of Voltage Transformer;

Redundancy in metering facility; and Way Forward:

(a) Alignment with the Retail Market;

(b) Check Retail Metering Manual; (c) Categorize provisions based on

Voltage Level then based on Customer Class;

(d) Copies of the Proposed Metering Chapter were distributed to the Subcommittee Members for further review; and

(e) Committee decided setting follow up meeting.

22. RRSC Meeting held on January 30,

2015 at DMC Office with % Members’ Attendance

The discussion was focused mainly on

the adoption of certain provisions included by the GMC in their amendments to the PGC. Also included are the modifications of section 2.2.3.2 on the terms of office of members, the Frequency Regulating Reserve and the Demand Control.

23. DTSSC Meeting held on January 21,


The technical staff presented their draft

reports on the compliance assessments conducted at IFELCO, ILECO I, and SOCOTECO II. The following summarizes the status of compliance of the aforementioned DUs:

IFELCO’s compliance status:


Compliance 20

Non-Compliance 7

Not Applicable 0


ILECO I’s compliance status:


Compliance 13

Non-Compliance 13

Not Applicable 1


30



Compliance 6

Non-Compliance 19

Not Applicable 2


CM Valencia suggested informing all

DUs that the 2nd Priority Compliance Standards enumerated by ERC

Resolution No. 13. Series of 2011 is already in effect and for their compliance.

Special Meetings

1. Annual Meeting held on December 8,


The first presentation was shown

enumerating the accomplishments, on-

going activities and projects plans of

the DMC for the year 2015 as part of

the Chairman’s report.

Also, before the year ends, election of

officers was conducted resulting to the

reelection of incumbent officers and the

election of Engr. Hipolito A. Leoncio as

Vice Chairman. The subcommittee

membership was likewise reorganized

and the members of each

subcommittee were selected based on

each member’s expertise and

experience, and the subcommittee’s

functions.

2. Special Meeting held on November 12, 2015 at AVA Room with 73% Members’ Attendance

This meeting was held to polish the

draft “Embedded Generators Connection and Operational Requirements” and to finally decide on contentious issues which were left uncertain during the previous meetings.

3. Special Meeting held on August 4, 2015 at AVA Room with 100% Members’ Attendance

This meeting was held to observe and

review the presentations of Mr. Bircher on his studies regarding the embedded generation in the distribution system. His presentations included the development of renewable energy facilities both here and abroad, the technical and performance requirements for connection, and the categorization of embedded generators. The DMC clarified that all generators, regardless of size, should participate in the market and that VRE or conventional generators should submit their nominated forecast to the System Operator.

4. Special Meeting held on May 15, 2015


The main agenda of this meeting is the

finalization of the proposed PDC Metering Chapter to review the comments received from MERALCO. The Committee decided to, among others, set the Minimum Technical Requirements for the Distribution Revenue Meter, and exclude the use of

31

“back-up and alternate meter” and the provision on off-schedule testing.

5. Special Meeting held on May 14, 2015


A coordination meeting with World

Bank’s representative and its consultant, and some representatives of the Philippine Electricity Market Corp. (PEMC) was conducted in the morning to discuss the existing market rules and the need for embedded generators to comply with the said rules.

Another meeting was held in the

afternoon with representatives of the National Renewable Energy Board (NREB) and RE Generators to discuss their concerns regarding the procedures in preparing the Grid Impact Study, acquisition of connection point from NGCP, communications with System Operator and Embedded Generators, VRE technical requirements and forecasting and financial issues involved in their operations.

6. Special Meeting held on May 6, 2015 at


The main agenda of this meeting is the

finalization of the proposed PDC Metering Chapter to review the comments received from MERALCO. The Committee decided to, among others, set the Minimum Technical Requirements for the Distribution Revenue Meter, and exclude the use of “back-up and alternate meter” and the provision on off-schedule testing.

7. Special Meeting held on April 10, 2015


The report made by the NGCP to the

GMC on the Mindanao Easter Black-

Out was presented by the DMC staff who attended the meeting held for that purpose on April 5, 2015 to inform the Committee of the possible causes of the said blackout.

8. Special Meeting held on March 24,


The meeting was called mainly to

discuss with the auditors of Reyes Tacandong & Co. the outcome of the Tax Compliance Review and the 2014 Audited Financial Statements of the DMC. The auditors presented three (3) options for the DMC to evaluate and choose from to address the issue on the DMC’s tax exposure relative to the DUs’ proportionate shares in the DMC’s budget. The decision of the Committee would greatly affect the Financial Statement to be audited by Reyes Tacandong & Co.

Another topic discussed was the result

of the DMSSC Meeting held last March 18, 2015 on the proposed Metering Chapter of the Philippine Distribution Code 2015 Edition. The Committee Members deliberated on the proposals made by the DMSSC which changed most of the original provisions to be consistent with the existing rules on the Distribution Services and Open Access Rules (DSOAR) and other pertinent laws.

9. Special Meeting held on January 14,

2015 at DMC Office with 100% Members’ Attendance This special meeting was called for the purpose of conducting a public consultation relative to the proposed Rules to Govern the Monitoring of Small Grid Users’ Compliance with the Philippine Small Grid Guidelines (PSGG). Questions from the participants of the public consultation were focused on the schedule of submission and the documents supporting the reports.

Stafff teambuilding is held annually to develop strong

interpersonal relationships helping the staff to bond

closer together

33

FINANCIAL AND ADMINISTRATIVE REPORTS

Financial Report The table below shows the budget utilization for the year ended December 31, 2015:

P A R T I C U L A R S

ERC

Proposed 2015 Audited Utilization

2015

Budget PhP %

Personnel Services 13,114,264 11,333,207 86.42

Operating and Other Expense 20,413,944 13,995,921 68.56

Travel expenses 7,779,050 4,578,331 58.85

Other contracted services 853,002 353,323 41.42

Rental 1,450,440 890,365 61.39

Security services 404,400 176,558 43.66

Honorary grant 3,750,915 3,064,800 81.71

Utilities 522,345 326,440 62.50

Office supplies & Repairs & maintenance 635,323 803,092 126.41

Administrative & Miscellaneous Expenses 398,600 228,616 57.35

Postage, internet & website Development 556,155 479,540 86.22

Meals/snacks for DMC meetings 911,460 900,636 98.81

Trainings, Seminars, Workshops 3,000,000 2,161,380 72.05

Books/magazines/subscription 152,254 32,840 21.57

General Plant Equipment 4,174,550 4,166,051 99.80

TOTALS 37,702,758 29,495,179 78.23

34

Administrative Reports Significant Personnel Development The ERC approved the appointment of Engr. Roberto C. del Rosario as the new DMC Executive Director. Engr. Del Rosario has been the Technical Director of the DMC since 2009. Engr. Diana Jean G. Maala was likewise promoted from the position of Principal Engineer to Technical Director. Engr. Maala has been working in the DMC since 2006 as one of the first Senior Engineers who assisted in the early operations of the company. As of 31 December 2015, the DMC has

23 support group personnel; 18 regular

DMC Staff, 1 DMC-GMC Common Staff,

3 Engineers and 1 Administrative

Assistant project employee.

Due to the very satisfactory legal services provided by Atty. Ma. Janice R. Tejano, the DMC has decided to retain Atty. Tejano’s services for another year at the rates specified under the 2016 Engagement Contract. This year saw the resignation of three Senior Engineers and one Finance Officer. Among the candidates evaluated, the most qualified were appointed to assume the vacant positions. Wellness and Seminars For the first time since the operations of the DMC, a teambuilding activity was conducted for all the DMC Staff without the participation of the GMC staff to reinforce commitment to the DMC’s shared goals and objectives. Games and activities developed awareness and strong camaraderie among the staff.

Based on performance evaluation results, concerned staff were sent to the following seminars:

Seminar on Managing System Loss for Power Utilities

SSS In-depth Seminar

Power Contracts Training

4th Philippine Professional Summit

70th PICPA Annual National Convention

IIEE Annual National Convention

Energy Regulatory Commission’s Metering Convention 2015

Electrical Grounding & Bonding Seminar

Powerful Presentation Skills Seminar

Tax Rights and Remedies

Fundamental Management Supervisor Skills

Administrative Investigation & Progressive Discipline

Management of Resources The DMC engaged the services of various providers for the installation of furniture, civil works, air condition units, electrical wiring, and cabling structure for telecommunications and networking at the new DMC office. One photocopier, three laptops for the exclusive use of the technical staff per area, one sound and discussion system to be installed in the conference room, and one network server to be used by the ERC as mirror server to reflect the submission by the distribution utilities of their compliance reports were likewise procured for the efficient operation of the DMC. The DMC likewise negotiated with Reyes-Tacandong and Co. (RTC) their proposed fee to secure a clarificatory and/or confirmatory ruling for the exemption of the DMC from payment of income tax and VAT.

35

Enrolment to eBIR Forms System was

made to comply with the requirements

provided for under section 52 (a) of the

Tax Code. Some Committee Members

and personnel were designated to file

returns and perform other transactions

with the BIR on behalf of the Committee.

DMC Organization

Membership

The term of appointment of the following

DMC Members is expiring by the end of

this year:

Nelia F. Irorita

Adolfo L. Mirasol

Sunday C. Palabrica

Raquilino B. Pangan

Ambrocio R. Rosales

Mark A. Valencia

The aforementioned DMC Members are

eligible for reappointment for another

term. Ms. Irorita, Mr. Palabrica and Mr.

Valencia expressed their willingness to

serve the DMC for another three years.

Before the expiration of term of their

membership, Mr. Mirasol retired from his

mother company and Mr. Pangan+

tendered his resignation. Mr. Rosales was

requested by his sector to dedicate more

time to his mother company due to the

more pressing matter it was facing.

Subcommittee Membership

The subcommittee membership, which

has been organized since the previous

year, is being retained for the purpose of

consistency in the priorities of each

subcommittee and for the smooth working

conditions of its members.

36

Member’s Attendance

The following table shows the attendance of each DMC Member in every regular meeting held for this year.

Legend: 1 present absent vacant

SECTOR

2015 %

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

Grid Owner 1 1 1 1 1 1 1 1 1 1 83

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

Private and

Local

Government

Distributors

Luzon 1 1 1 1 1 1 1 1 1 1 1 92

Visayas 1 1 1 1 1 1 1 1 1 1 1 1 100

Mindanao 1 1 1 1 1 1 1 1 1 1 83

Electric

Cooperatives

Luzon 1 1 1 1 1 1 1 1 1 1 1 1 100

Visayas 1 1 1 1 1 1 1 1 1 1 1 1 100

Mindanao 1 1 1 1 1 1 1 1 1 1 1 1 100

Embedded Generator 1 1 1 1 1 1 1 1 1 1 83

Residential Consumer Group 1 1 1 1 1 1 1 1 1 1 1 92

Commercial Customers 1 1 1 1 1 1 1 1 1 1 1 1 100

Industrial Customers 1 1 1 1 1 1 1 1 80

Government Accredited

Professional Organization of

Electrical Engineers

1 1 1 1 1 1 1 1 1 1 1 1 100

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

Government

Representatives

ERC 1 1 1 1 1 1 1 1 1 1 1 92

NEA 1 1 1 1 1 1 1 1 1 1 83

DOE 1 1 1 1 1 1 1 1 1 1 83

1

The DMC Members clockwise from top left: Julie B. Real, Jorge H. Lucas, Mark A. Valencia, Jose Redmond Eric S. Roquios,

Ranillo E. Maatubang, Zosimo A. Briones, Sunday C. Palabrica, Alvin M. Farrales, Ambrocio R. Rosales, Froilan J. Savet, Nelia

F. Irorita, Jaime V.Mendoza, Hipolito A. Leoncio, and Ma. Janice R. Tejano (Legal Counsel)

The staff clockwise from top left: Romeo O. Uraga, Jose James B. Gayman, Nylle Gregory P. Bague, James Melvin M. Mea, Gino

N. Rabino, Diomer D. Gaces, Michael Angelo B. Nunez, Vicente P. Moral, Raymon Kenneth M. Trillana, Leo Mark C. Bulaong,

Russel Ried C. Atay, Lester M. Sales, Myla D. Antonio, Annabelle M. Fruelda, Diana Jean G. Maala, Liana Marie N. Gatongay,

Roberto C. del Rosario, Janessa C. Broquil, Ma. Carolina D. Aquino, Cecilia H. Fungo, Anna Carolina M. Abalos

annual report 2015 - home | dmcdmc.org.ph/file-manager/files/annual report 2015 final.pdf · annual...

Documents