pis gmc rev1

7/29/2019 Pis Gmc Rev1

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Performance IncentiveCalculation for the Performance

Incentive Scheme (PIS)Sept 2006 Aug 2007


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ERC-Approved Performance Indicators forTransCos PIS

1. System Interruption Severity Index (SISI)2. Frequency of Tripping (FOT)

3. System Availability (SA)

4. Frequency Limit Compliance (FLC)

5. Voltage Limit Compliance (VLC)


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Basis of Performance Targets

1. The targets are based on the average of 5 years

historical data (2000 2004).

2. Performance measures are assessed on a per grid basis.

3. The Final Determination sets a deadband within w/cthere will neither be a reward nor penalty.

4. The lower/upper limit of the deadband is based on 1standard deviation of the target. Another 1 standarddeviation is set as the collar/cap.

5. The collar is the maximum penalty; the cap is themaximum reward.


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THE METHODOLOGY


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Profile Graphs

Each performance indicator have a deadband where there is no

reward or penalty.

The cap is the maximum limit for reward while collar is themaximum limit for penalty.

Positive Measure Reference Profile Negative Measure Reference Profile


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Basis of Performance Targets

1. The expected rewards will equalpenalties.

2. The maximum reward (x%) thathas a cap value will be computedbased on ratio & proportion

x% 3%

a b=

3. If High Limit Value already exceeded themaximum measure, no reward shall begiven since it is already at a high level ofperformance.

TransCo have to maintain the high levelof performance so as not to incur anypenalty.


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Bandwith for the PIS (from FD)


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Weights per Performance Indicator per Grid

Performance

Indicator

%

Weightings per Grid

Luzon Visayas Mindanao

SISI 45 20 50 30

FOT 25 32 29 39

SA 10 34 33 33

FLC 10 34 33 33

VLC 10 29 36 35

Total 100


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Allowed Reward / Penalty

TransCo is allowed by the ERC a maximum level ofreward/penalty equal to 3% of the Annual RevenueRequirement (ARR) for the year (= PhP1,316.19 Mn for2007)

The FD caps the maximum reward/penalty at PhP978.5Mnfor each year of the Second Regulatory Period


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Allowable Reward/Penalty for the Period


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THE PIS COMPUTATIONFOR Sep 2006- August 2007


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x/a = R/S where: R = maximum rewardS = D C

where: D = max. PI (Cap)C = High Deadband

Therefore:x/a = R/(D - C)

x = (a x R)/ S

x =(E C)________ x R

(D - C)

where: a = actual PI High Deadbanda = E CS = D C

where: (E C)/(D - C) = Multiplier


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THE JUSTIFICATIONS OF

THE EXCLUSIONS


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Exclusions Considered:

Tripping of Temporary Lines in Bicol Due to Force MajeureOutage of Permanent Lines

Lack of MVAR Absorption During Off-Peak Due toSimultaneous Outage of Both Units of Sual

Impact of WESM Operation in the Control of Frequency

Frequency limit violations Caused by Operation ofTreasure and Global Steel in Mindanao

Sabotage of Transmission Towers in Mindanao


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Justifications of exclusions

Tripping of Temporary Lines in Bicol Due to ForceMajeure Outage of Permanent Lines

Temporary lines were put up because of massive damageof permanent lines by typhoons Milenyo and Reming.

Temporary structures were put up to restore electricpower at the shortest time possible

Since the structures are just temporary the lines areprone to trippings


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Lack of MVAR Absorption During Off-Peak Due toSimultaneous Outage of Both Units of Sual

Manually tripped 500 and 230 kV lines in Northern Luzonbecause of simultaneous outage Sual Units 1&2 to correctprolonged high voltage to prevent equipment damage.

Simultaneous outage of the Sual units is already a (n-2)contingency event and is already outside the single outage(n-1) contingency planning criteria of TransCo and alsocomplies with 6.2.2.3 of the PGC.

In compliance with Section 5.3(e) of WESM rules thatallows transmission lines to be switched off to keepvoltage within allowable limits.


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Impact of WESM Operation in the Control ofFrequency

Before WESM, TransCo system operators were able tointervene even before the system frequency limit of 59.7and 60.3 Hz is breached.

The action is line with Section 5.1 of the WESM Rules onSystem Security and Reliability Guidelines that frequencybetween 59.7 Hz. to 60.3 Hz., is still considered in NormalState Operation.

The constraints is addressed by amendment to PGC whichbroaden the limit to within 59.4 to 60.6.


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Frequency limit violations Caused by Operation ofTreasure and Global Steel in Mindanao

The load fluctuations of steel mills were very significant.These fluctuations occurred in a very short time (spike)and the generating plants assigned for primary and

secondary response could not maintain and control theresulting frequency variation within acceptable limitsprescribed by the PGC

Clause 4.3.3.4 of the PGC requires that connection ormodification of existing connection to the grid by a Usershould not result in the degradation of the Grid.

Clause 7.3.4.2 of PGC requires that User shall beresponsible that its System will not degrade the System.


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Sabotage of Transmission Towers in Mindanao The sabotage of the towers is a force majuere event not

within the control of TransCo.

The exclusion falls under outage classification No. 0012 ofTransCo Circular 2003-50.

The mathematical equation discussed on page 146 of theFD recognized the exclusion mentioned in the TransCoCircular.


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Detailed Comparison of Performance Based on Exclusions& As Filed and Corresponding Incremental Cost


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Thank you

End of Presentation

B i f C ti th P f L l


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Basis for Computing the Performance LevelPertaining to Excluded Events


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Effect on Voltage Limit Compliance (VLC)

Exclusion of the following substations w/ over voltages due to

the forced outage of Sual Units 1 & 2 on 23 October 2006 6March 2007, 19-20 March 2007 & 5-9 May 2007:

1. Bauang 230 kV

2. Mexico 230 kV

3. Santiago230 kV

4. San Jose 230 kV


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Effect on SISI, FOT & SA

Exclusion in the calculation of unserved energy due to residual

effects of the major typhoons that occurred in year 2006 thatcaused the frequent tripping of the following temporarytransmission lines:

1. Naga-Tayabas 230 kV L1

2. Naga-Tiwi 230 kV L1

3. Naga-Labo 230 kV L2

4. Naga-Daraga 230 kV Line

5. Gumaca-Labo 230 kV L2

6. Daraga-Bacman 230 kV L1


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Frequency Limit Compliance (FLC), % refers to the percentageof time during the rating period that the system frequency is within

the allowable limits of 60 + 0.3 Hz. A Frequency Limit Violation(FLV) is committed only when the frequency excursion is beyond thelimits for 60 seconds or more. It is expressed, as follows:

where:

nf = total number of frequency limit violations (for 60 sec. or more)r = scanning rate of the SCADA/EMS, in secondsd = number of days during the rating period

100)606024(

)(

1

d

rn

FLC

f

Power Quality


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Voltage Limit Compliance (VLC), % refers to the percentage of

the number of voltage measurements during the rating period thatthe voltage variance did not exceed + 5% of the nominal voltage ofall busses (Luzon 230 & 500 kV, Visayas 69, 138 & 230 kV,Mindanao 138 kV) monitored at the high side of the substation 24hours daily.

where:

nv = total number of voltage limit violationsns = number of substationsd = number of days during rating period

100)24(

1

s

v

nd

nVLC

Power Quality

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