~rN> 'l.rt ... ~ ENERGY REGUIlATORY COMMISSION;'; h ... ERC Case No. 2015 … · FromTherma Marine,...

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ENERGY REGUIlATORY COMMISSION";'; h~prov"dfor 0i P r.' :z

San Miguel Avenue, Pasig City \ ' "O?W'1j\ \\n.,~h

'"IN THE' MATTER OF THEAPPLICATION FOR APPROVlAL,OF THE POWER SALESAGREEMENT (PSA) BEnNE~NZAMBOANGA CITY ELECTRICCOOPERATIVE, INC.(ZAMCELCO) AND' MAPALADPOWER CORPORATION (MPC),WITH PRAYER FORPROVISIONAL AUTHORITY

'ERC CASE NO. 2015-114 RC,

IZAMBOANGA CITY ELECT~ICCOOPERATIVE, 'INC.(ZAMCELCO) AND MAPALlA.D'POWER CORPORATION (MP;C),. Applicants.• , Ix- - - - - - - - - - - - - - - - - - - - - - -x

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIIES:

Notice, is hereby given tl1at on June 11, 2015, Zamboanga CityElectric Cooperative, Inc. I (ZAMCELCO) and Mapalad Power

, Corporation (MPC) filed a joi~t application for the approval of theirPower Sales Agreement (PSA), with prayer for provisional authority.

I. In the said joint appl'ic~tion, ZAMCELCO and MPC alleged,

among others, the following: I

1. ,ZAMCELCO is a non-stock; non-profit electric cooperativeorganized and existing under and by virtue of PresidentialDecree No, 269, las amended, with office address atMCLL Highway, Putik, Zamboanga City. It has afranchise to distribute electricity in the City of Zamboanga.

. ,I 'I!

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29,2015 of 19

A copy of its Certificate of Franchise is attached to thejoint application as Annex "A";

II

2. MPC is a generktion company duly authorized andexisting under andlby virtue of the laws of the Re~ublic ofthe Philippines, '!Vith principal address at 41 Floor,Alphaland Southgate Tower, 2258 Chino Roces Avenuecorner EDSA, Mak~ti City.

ICopies of its Ce'rtificate of Incorporation, Articles ofIncorporation and 6y-Laws and latest General InformationSheet are attached to the joint application as Annex "8"and series;

NATURE OF THE APPLICATION

3, Pursuant to Rule 20 (8) of the ERC Rules of Practice andProcedure approved by the Commission on June 22,2006 in Resolution No. 38, Series of 2006, the instantjoint application is submitted to the Commission for itsreview and approval.

A copy of the PSA is attached to the joint application asAnnex "c", I, I,

,I

COMPLIANCE WITH PRE-FILING REQUIREMENTS

4. In compliance with' Rule 6 of the ERC Rules of Practiceand Procedure, they have furnished the SangguniangPanlungsod of Za~boanga City a copy of the presentjoint application with all its annexes and accompanyingdocuments.

The corresponding proof of receipt is attached to the jointapplication as Annex "D";

Ii

5. They have caused the publication of the instant jointapplication in its entirety, excluding its annexes, in anewspaper of general circulation within ZAMCELCO'sfranchise area.

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 I

ICopies of the new~paper and the corresponding Affidavitof Publication are Iattached to the joint application asAnnexes "E" and "6-1," respectively;

STATEMENT OF FACTS

6. Shortage of Power Supply in the Mindanao Grid. TheMindanao Grid is turrently facing a deficit in its powersupply, which is bertain to worsen over time. Thegenerating capacity in the Grid is no longer sufficient tomeet the power requirements of Mindanao;

7. The Power Sectoq Assets and Liabilities ManagementCorporation (PSALM), which took over all the generatingassets of the National Power Corporation (NPC) pursuantto Republic Act I No. 9136, supplies the powerrequirements of Mindanao;

i8. PSALM has drastically reduced its power supply

commitments to I distribution utilities in Mindanao,including ZAMCEL~O;

I9. As a result, Minda~ao has experienced significant power

outages, adversely affecting local businesses and thedaily lives of all 'electricity consumers. The lack ofsufficient and reli~ble power supply has long been abarrier to much nedded capital investment that would spurthe local economy;

10. Insufficiency of ZAMCELCO's Power Supply. Atpresent, ZAMCELQO's power supply is far from sufficientto meet the power requirements of Zamboanga City. Forthe past weeks, zAMCELCO's customers had to endureas much as an avkrage of five (5) to eight (8) hours ofdaily rotational broWnouts;

I10.1. ZAMCELCO has a total demand of around 90 MW

for the month of May 2015. However, the totalcontracted supply available to ZAMCELCO is only67.5 MW based on the following contractedcapacity: I


a. From PSALM, 31.50 MW;

I

b. From Therma Marine, Inc. (TMI), 18 MW; and,

c. From MPC, through its bunker C-fired dieselpower plant in lIigan City, 18 MW;

10.2. Comparing ZAMCELCO's demand with its totalcontracted capacity, ZAMCELCO has a deficiencyof 22.5 MW for May 2015;

10.3. The deficiency is expected to increase in the nexttwo (2) months as the contracted capacity withPSALM is significantly lower for the months of Juneat 22.8 MW and July at 27.2 MW.

A copy of PSALM's letter to ZAMCELCO datedNovember 5, 2014 showing PSALM's contractedcapacity is attached to the joint application asAnnex "F'",

10.4. Supply from PSALM. PSALM, on severaloccasions, was not able to supply its contractedsupply in full. For instance, as mentioned earlier,PSALM's contracted supply for May 2015 is 31.5MW. However, at times, PSALM's supply in Maywas as low as 23 MW. This failure to deliver the fullcontracted capacity worsens the insufficiency ofsupply;

10.5. As a consequence, ZAMCELCO's supply deficiencyresults in daily rotational brownouts averaging five(5) to eight (8) hours; and

10.6. NPC Certification. ZAMCELCO has requestedcertification from NPC on whether its contractedcapacity and energy are expected to be availablefor ZAMCELCO during the term of the PSA.

A copy of the said request is attached to the jointapplication as Annex "G";


I11. ZAMCELCO's Demand Projections. The shortage is

expected to increa~e due to the steadily increasing powerdemand of. ZAMCELCO's customers. The expected. IIncrease is indidated in ZAMCELCO's Distribution

I

Development Plan (DDP).

IA copy of ZAMCELCO's DDP is attached to the jointapplication as Annbx "H". A copy of its supply-demandprojections is attadhed to the joint application as Annex"H-1".,

12. Immediate Need for Power Supply. ZAMCELCO'scustomers have to endure as much as an average of five(5) to eight (8) hoJrs of daily rotational brownouts. Thishas caused great difficulty not only to the residents ofZamboanga City but to local businesses as well;

II

13. It is clear that ZAMCELCO needs to procure additionalpower supply that can be available at the soonestpossible time;

14. Non-firm Supply Arrangement. Cognizant ofZAMCELCO's urgent need for immediately availablepower supply, MPC offered to supply power on a non-firmbasis from its diesel-fired power stations in Koronadal,South Cotabato and in Digos, Davao Del Sur;

I15. The said power stations are currently committed to supply

power to their respective host distribution utilities. MPCmay make the necessary arrangements with the said hostutilities for the use, of any unutilized capacity to supplypower to ZAMCELCO. As the said power stations arealready in operation, such supply arrangement may bethe most immediately available means of providingadditional power supply to ZAMCELCO;

I

16. ZAMCELCO evalu1ated the offer and as a result, itexecuted the PSA with MPC for the supply of power on anon-firm basis. '

IAn affidavit supporting the foregoing is attached to thejoint application as Annex "I";

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29,2015 of 19 I

17. The immediate irhplementation of the PSA will helpalleviate the power! outages;

18. Under the law, no contract for the supply of power to adistribution utility, like ZAMCELCO, can become legallyeffective unless approved by Commission. Hence, theinstant joint application;

ABSTRACT OF THE P,OWER SALES AGREEMENTAND RELATED INFORMATION

II

19. The Generation Facilities. Under the PSA, MPC shallsupply power on a non-firm basis from either or both ofthe two (2) power stations with leased diesel-fired powergenerating units: I

a)

b)

a power station in Barangay Morales,. KoronadalCity, South Cotabato with a total net output of 12MW (Koronadal Power Station).

The said Power Station consists of thirteen (13)units of diesel generator sets and auxiliaries, with atotal installed capacity of 1,070 kW per unit; four (4)units each of transformers and of diesel fuel tankwith auxiliaries; one (1) unit each of control room,switch gear ahd oil water separator; two (2) units of1,000 c.m. water tanks; one (1) unit each ofworkshop and of office; and a transmission line from,the said Power Station to the host distributionutility's subst~tion.

a power staLn in Barangay Cogon, Digos City,Davao del Sur with a total net output of 15 MW(Digos Power Station).,

The said PoWer Station consists of sixteen (16)units of diese'l generator sets and auxiliaries, with atotal installed capacity of 1,070 kW per unit; four (4)units of transformer package; one (1) unit each ofcontrol room, switch gear and oil water separator;diesel fuel tanks with auxiliaries and water tanks;one (1) unit each of workshop and of office; and a

i

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARIN(;/June 29,2015 of 19

20.

21.

22.

23.

transmission 'line from the said Power Station to thehost distribution utility's substation.

The total net gene!ating outputs of the Koronadal and theDigos Power Stations are currently committed for thesupply of power to iSouth Cotabato I Electric Cooperative,Inc. (SOCOTECq' I) and Davao del Sur ElectricCooperative, Inc. (DASURECO), respectively, under their

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supply contracts with MPC;

The Specific Fuel Oil Consumption (SFOC) of eachPower Station shall not be greater than 0.265 liter/kWh at

I

site condition of 32 deg. C ambient temperature. TheSFOC is based o~ use by each Power Station of thediesel fuel with a dJnsity of 0.85 kilogram/liter.

Copies of the cJifications on the SFOC rates of thePower Stations ar~ attached to the joint application asAnnexes "J" and "Jh'"I 'Salient Features of the PSA. Under the PSA, MPC shallexercise best efforts to make the necessaryarrangements to utilize available capacity, if any, of the

I

Koronadal and Digos Power Stations to supplyZAMCELCO on a nrn-firm basis;

IThe additional supply is intended to help immediatelyalleviate the power outages in Zamboanga throughavailable capacity trom the said plants.

I23.1. Non-Firm Nature of Supply. In essence, if at any

point, ZAMCELCO has unserved powerrequirements, it may request MPC for supply andMPC may, if it has available capacity from the saidpower stations, supply such requirements;

I23.2. As it is a non-firm contract, ZAMCELCO shall not be

liable for any failure or refusal to request supply.Neither shall MPC be liable for any failure to deliverthe requested supply;

23.3. Commencement Date. The foregoing arrangementshall commen'ce on the date designated by MPC as

I


the date on which it may commence supplyingpower.

i23.4. Term. The PSA shall expire on December 31,2015

unless otherwise renewed or extended by mutualagreement of the parties or terminated earlier inaccordance with the terms of the PSA; and

23.5. Effective Date. The obligations under the PSA shallbecome effective upon the Commission's approvalor confirmation that ZAMCELCO may purchasepower from MPC as provided in the PSA;

24. Purchased Power Rate for the Koronadal and DigosPower Stations. For such supply, ZAMCELCO shall paythe monthly payments based on the following formulas:

I. Monthly Payments

The Monthly Payments shall be paid to the Seller on a monthly basisin accordance with the following formula:

II

Monthly Payments = CRF + FOMF,+ VOMF + AFC + sc + Others Costs + Taxes

Actual Fuel CostI

Start-Up Costs

Variable Operation and Maintenance Fee

Fixed Operation and Maintenance Fee

Capital Recovery Fees

Where:

CRF =

FOMF =

VOMF =

AFC =

SC =

Other Costs= Additional fees, taxes and charges for theprocurement, management and all otheractivities necessary for the supply of theNominated Capacity and Dispatchable Energy

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19

Taxes = Value Added Tax, other applicable taxes andgovernment impositions, if any

1.1 Capital Recovery Fee (CRF)

CRF shall be computed as follows:

CRF = [CRFR x (0.84 x ~~~:) + 0.16] x ED

Where:

CRF = Capital Recovery Fee, in Pesos

CRFR = Capital Recovery Fee Rate, in PhP/kWh

x= (hours in the BillingMonth)

USDn = Average USD-Peso Exchange Rate for themonth as published by Bangko Sentral ngPilipinas

IUSDo = USD-Peso Exchange rate is at PhP41/USD1 .

IED = kWh delivered during the Billing Month

X = Approved CRF Rate for the Koronadal PowerStation or for the Digos Power Station, asindicated in Section 1.8 (Rate Tab/e) below.

I1.2 Fixed Operation & Maintenance Fee (FOMF)

The FOMF covers the operating and maintenance costs of the MPCPower Station. It shall be computed according to the followingformula: .

,{ [(

CPIn). ( USD USPPI )]}FOMF == FOMR x O.l1x -c- + 0.89 x __ n X n X EDPIa USDo USPPlo

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 j

Where:

FOMF =

FOMFR =

Fixed O&M Fee, in Pesos

FOMF Rate, in PhP/kWh,

y= (hours in the Billing Month)

ED =CPln =

CPlo =

USDn =

USDo =

USPPln =

USPPlo =

kWh delivered during the Billing Month

Consumer Price Index for Metropolitan ManilaArea (National Capital Region), all itemspublished by NEDAINSO for the period ofprice determination

Consumer Price Index for Metropolitan ManilaArea (National Capital Region), all itemspublished by NEDAINSO for September 2013(at 126.9, 2006 = 100)

Average USD-Peso Exchange Rate for themonth as published by' Bangko Sentral ngPilipinas

USD-peso Exchange rate is at PhP41/USD1

United States Producers' Price Index forIndustrial Goods (63a) for the period of pricedetermination as published in the InternationalFinancial Statistics of IMF (2005 = 100)United States Producers' Price Index forIndustrial Goods (63a) for July 2013 (at127.2,2005 = 100) as published In theInternational Financial Statistics of IMF

y = Approved FOMF Rate for the KoronadalPower Station or for the Digos Power Station,as indicated In Section 1.8 (Rate Table)below.

1.3 Variable Operation & Maintenance Fee (VOMF)

The VOMF covers the cost of the use of, among other items,chemicals, lubricants and spare parts, that are directly related to the

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 Igeneration of the MPC Power Station. It shall be computed accordingto the following formula: I

I

[ (USD USPP/)]

VOMF = VOMFR x USD: x USPP/: x ED

Where:

VOMF =VOMFR =

ED =

USDn =

USDo =

USPPln =

Variable O&M Fee, in Pesos

IZ = ApJ'lroved VOMF Rate for the Koronadal,Power Station or for the Digos Power Station,as indic~ted in Section 1.8 (Rate Table) below

I::::Jiv:r::_::::

g

::c:~~:: M:a~: for themonth ~s published by Bangko Sentral ngPilipinas

IUSD-Peso Exchange rate IS atPhP41.00/USD1

United 'States Producers' Price Index forIndustrial Goods (63a) for the period of pricedetermihation as published in the InternationalFinancial Statistics of IMF (2005 = 100)

Z =

USPPlo = United States Producers' Price Index forIndustrial Goods (63a) for July 2013 (at127.2, 2005 = 100) as published in the,International Financial Statistics of IMF

IApproved VOMF Rate for the KoronadalPower Station or for the Digos Power Station,as indicated in Section 1.8 (Rate Table) below

1.4 Actual Fuel Cost (AFC) II

The Actual Fuel Cost (AFC) is 'the fee paid to the Seller as paymentfor the procurement and delivery of the fuel oil (Diesel) used in theoperation of the Modular Power Station. The Actual Fuel Cost shallbe computed as follows: i

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19

AFC = FCR x Specific Fuel Oil Consumption x ED

Where:

FCR = Fuel Price of Diesel Fuel Oil based on theweighted average of all fuel delivered duringthe billing period

Specific Fuel Oil Consumption = 0.265 liter/kWh

ED = kWh delivered during the billing period

1.5 Start-Up Costs (SC)

The Buyer, on a pro rata basis of the capacity of the Power Stationallocated to the Buyer, shall pay the Seller Start-Up Costs for the costof starting up the Modular Power Station after a period of shutdowndue to any reason attributable to the Buyer of the Seller. The Start-Up Costs shall be computed based on the prevailing price of dieselfuel at the time of the Start-Up and paid in accordance with thefollowing:

sc _ (Liters of fuel consumed during COld.start) (Liters of fuel consumed during warm start)- x No. of Generator Set x Fuel Price + x No. of Generator Set x Fuel Price

Liters of DieselType of Start-Up Fuel Per Generator

SetCold Start-Up (more than or equal to 10hours of shutdown) 60Warm Start-Up (less thanl 10 hours ofshutdown) 40

1.6 Other Charges

The Buyer shall pay a Handling Fee of PhPO.15/kWh and otherapplicable taxes, fees and charges for the procurement, managementand all other activities necessary for the supply of Nominated

I

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 ICapacity and Dispatchable Energy throughout the Term of thisAgreement. I

1.7 Value Added Tax (VAT)

The relative VAT of the above fee payments twelve percent (12%)shall be computed as follows:

VAT = (CRF + FOMF + VOMF +AFC + sc + Other Charges) x 0 12

1.8 Rate Table

Koronadal Digos PowerItem Description Unit Power Station StationX CRF I 617.95 668.97PhP/kW.rt;l0nthy FOMF I 193.08 194.38PhP/kW.rt;l0nth

I

Z VOMF PhP/kVYh 0.56 0.59

I Pass through, Pass through,AFC PhP/k"}'h subject to subject to

I efficiency cap efficiency cap

I24.1. For reference: a sample computation of the monthly

payment contained in Schedule C of the PSA; .I,!

24.2. Basis for indexation. As indicated in the formulaeabove, the monthly fees to be paid by ZAMCELCOare subject toladjustments based on various indicesor factors in order to properly reflect the fluctuation,of MPC's cost~ in supplying electricity;

I

24.3. The componJnts of the tariff representing foreigncurrency-denominated costs are adjusted based onthe foreign ex~hange rate and the applicable foreignprice indices;i those representing local costs areadjusted based on local price indices. The ActualFuel Costs vary based on the applicable fuel costindex;

25. Application of Final Approved Tariffs for the PowerStations. The foregoing formulas reflect the tariffs

IERC CASE NO. 2015-114 RCINOTICE OF PUBLIC HEARING/June 29, 2015 of 19 I

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approved by the <L:ommission for the Koronadal PowerStation in its Decisibn dated March 31,2014 in ERC CaseNo. 2013-190 RC bnd for the Digos Power Station in itsDecision dated Ma1rch31, 2014 in ERC Case No. 2013-217 RC;

26. In addition, the formulas also reflect a reasonable fee tocompensate for the procurement, arrangement,management, and all other activities necessary for thenon-firm supply, as well as the assumption of risksattendant thereto;

27. It is the intention o~the parties to apply the final approvedtariffs for the Koronadal and the Digos Power Stations, asthe case may be, ~s the cost of power supply under thePSA,

28. Thus, in order to properly reflect the tariffs finallyapproved by this Hbnorable Commission, the parties shalleffect the necessa1ry adjustments in the event that thisHonorable Commi~sion makes further modifications to thetariffs in resolving ~ending motions for reconsideration ofthe said Decisions;

29. Sources of Funds/Financial Plans.

29.1. Project cosls. Breakdowns of the total projectcosts for the. Koronadal and Digos Power Stationsare attached to the joint application as Annexes "K"and "K-1 ,n respectively; andI .

29.2. Project Funding. The said projects were fundedentirely through equity. Thus, there was no interestcost since MPC did not obtain any loan to financethe projects. I Moreover, the cost of capital for bothprojects was fifteen percent (15%);

I30. Cash Flow.

30.1. Breakdown of Operating and MaintenanceExpenses. Detailed breakdown of the projectedoperating expenses for the Koronadal and the Digos

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 i

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Power Statioi;Js are attached to the joint applicationas Annexes 'l" and "L-1 ," respectively;

I31. Fuel Supply. In o~der to ensure the supply of fuel for theoperations of the Power Stations, offers were solicitedfrom reputable fu~l suppliers. As a result, fuel supplycontracts were negotiated and signed with the supplierwhich offered the best terms for fuel supply.

31.1. It must be s~ressed that, in accordance with therelevant policy of the Commission, MPC derives norevenue whatsoever from the fuel supply.

Copies of tJ relevant fuel supply agreements areattached to tHe joint application as Annexes "M" and"M-1'" ,

32.

33.

34.

Environmental Compliance Certificates (ECCs). TheDepartment of Ehvironment and Natural Resources(DENR) has issue:d the necessary ECCs covering theKoronadal and the Digos Power Stations.

ICopies of the said ECCs are attached to the jointapplication as Ann~xes "N" and "N-1";

!I

Department of Energy (DOE) Certification. The DOEhas certified that tHe capacities of the Koronadal and theDigos Power Stations are consistent with its Power

IDevelopment Plan (PDP).

Copies of the relJant certifications are attached to the,joint application as Annexes "0" and "0-1";

Certificate of coJpliance (CDC). The Commission hasissued the necessbry COCs for the Koronadal and theDigos Power Statiohs.

ICopies of the saiq certificates are attached to the jointapplication as Annexes "P" and "P-1 ";

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ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 i

IRATE IMPLICATIONS

OF THE POWER SALES AGREEMENT

35. In order to determine the impact of the implementation of,the PSA on ZAMCELCO's Generation Costs, an analysiswas conducted ta~ing into consideration ZAMCELCO'sprojected demand Iand available supply from approvedsupply contracts over the contract term.

A copy of the said analysis is attached to the jointapplication as AnnJx "Q"; .

As shown by the JnaIYSiS, the procurement of additionalsupply from MPC Lnder the PSA will reduce the poweroutages in Zambo~nga City and will result in an upwardadjustment of the Itotal generation costs to be paid byZAMCELCO's member-consumers'

36.

,

,37. A summary of the said analysis IS shown by the table

below:

Without Outages I Outages Outage RateMonth PSA (Est.) With PSA (Est.) Reduction Impact

PhP/kWh Hours PhP/kWh Hours Hours PhP/kWhJul 5.8631 6.92 6.3700 5.77 1.15 0.5069Aug 5.4403 4.45 5.7624 3.30 1.15 0.3221Sep 5.3707 4.65 5.7151 3.50 1.15 0.3443Oct 5.4900 4.81 5.8543 3.66 1.14 0.3643Nov 5.2733 3.19 5.5443 2.05 1.14 0.2710Dec 5.4054 3.26 5.6981 2.13 1.13 0.2927

INotes and assumptions: !

I1. Only supply from the Commission-apprbved power supply contracts are assumed.

2. Under the "Without PSA" Scenario, the11SUPPliersare PSALM, TMI and MPC (firm supply fromits Bunker C-fired plant in lIigan).

3. Under the "With PSA" Scenario, the suppliers are PSALM, TMI and MPC (firm supply from itsBunker C-fired plant in lIigan, and non-firm supply under the PSA).

I4. The actual available supply from the Koronadal and the Digos Power Stations for the period

from April 28 to May 25, 2015 is assurned to be available in the succeeding months.

ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 I5. The contracted generation companies ~re assumed to be able to supply from their respective

contracted capacities in full. I6. The assumed tariffs for TMI and MPC1(from its Bunker C-fired plant in lligan) are based on

ZAMCELCO's actual purchases over a twelve (12)-month period from May 2014 to April2015, with assumed line losses of 4.350/0.The assumed tariff for PSALM is PhP3.00/kWh.

7. For the tariff under the PSA, the fOIiOling were used and assumed to apply uniformly overthe simulation period: (a) Consumer Iprice Index (CPI) value for April 2015; (b) foreignexchange rate as of May 25,2015, perlBangko Sentral ng Pilipinas (BSP); (c) US Producers'Price Index value for December 2014; and (d) the latest available fuel price at PhP29.00/1i.

II

ALLEGATIONS IN SUPPORT OFTHE MOTION FOR PROVISIONAL AUTHORITY

38.

39.

40.

41.

42.

As discussed above, ZAMCELCO's current power supplyis not sufficient td meet its total power requirements,resulting in substahtial power outages in ZAMCELCO'sfranchise area arid adversely affecting its Industrial,Commercial and R~sidential power consumers;

Hence, it is impJative that ZAMCELCO contracts foradditional power ~upply that can be available at thesoonest possible time;

An immediately Lailable means to help alleviateZAMCELCO's power shortage is the supply of power fromMPC's.existing diesel-fired power stations in Koronadal,South Cotabato and Digos, Davao del Sur. Consideringthat the distribution utilities to whom the capacities ofthese power stations are dedicated do not always fullyutilize such capacities, the parties may, through the PSA,avail of the unutilized contracted capacity when available;

IThus, the immediate implementation of the PSA will helpalleviate the powe'r outages in ZAMCELCO's franchisearea by providing ~uch needed additional supply;

In view of the foregoing, they move for the provisionalapproval of the in~tant joint application pursuant to Rule14 of the Commissi'on's Rules of Practice and Procedure.

A copy of a sworn ltatement supporting the said motion isattached to the joint application as Annex "R"; and

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ERC CASE NO. 2015-114 RCNOTICE OF PUBLIC HEARING/June 29, 2015 of 19 I

I43. They pray that the Commission:

. d' t I .I 0 d '.. II .a. Imme la e y If'sue an r er provlslona y approvingthe PSA subject of the instant joint application aswell as th~ Generation rate and adjustmentmechanisms indicated therein; and

b. after due hearing, render judgment making suchprovisional approval permanent.

The Commission has set the said joint application forjurisdictional hearing, pre-tria Ii conference, expository presentationand evidentiary hearing on August 6,2015 (Thursday) at nine thirtyin the morning (9:30 A.M.) at ZAMCELCO's Main Office, MCLLHighway, Putik, Zamboanga City.

All persons who have a~ interest in the subject matter of theproceeding may become a party by filing, at least five (5) days prior tothe initial hearing and subject tb the requirements in the ERC's Rulesof Practice and Procedure, a 'verified petition with the Commissiongiving the docket number and ,title of the proceeding and stating: (1)the petitioner's name and address; (2) the nature of petitioner'sinterest in the subject matter lof the proceeding, and the way andmanner in which such interest is affected by the issues involved in theproceeding; and (3) a statement of the relief desired.,

All other persons who may want their views known to theCommission with respect to the subject matter of the proceeding mayfile their opposition to the joint application or comment thereon at anystage of the proceeding before the applicants conclude thepresentation of their' evidence~ No particular form of opposition orcomment is required, but the document, letter or writing shouldcontain the name and address of such person and a concisestatement of the opposition or ~omment and the grounds relied upon.

All such persons who lay wish to have a copy of the jointapplication may request the a~plicants, prior to the date of the initialhearing, that they be furnished with a copy of the joint application.The applicants are hereby directed to furnish all those making suchrequest with a copy of the joint application and its attachments,subject to reimbursement of reasonable photocopying costs.Likewise, any such person may examine the joint application and

ERC CASE NO. 2015-114 RC:NOTICE OF PUBLIC HEARING/June 29, 2015 of 19 Iother pertinent records filed With the Commission during the usualoffice hours.

WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable :Commissioners, ALFREDO J. NON,GLORIA VICTORIA C. YA~-TARUC, JOSEFINA PATRICIA A.MAGPALE-ASIRIT, and GERONIMO D. STA. ANA, EnergyRegulatory Commission, this 29th day of June, 2015 at Pasig City.

CIS SATURNINO C. JUANecutive Director III

~rN> 'l.rt ... ~ ENERGY REGUIlATORY COMMISSION;'; h ... ERC Case No. 2015 … · FromTherma Marine,...

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Transcript of ~rN> 'l.rt ... ~ ENERGY REGUIlATORY COMMISSION;'; h ... ERC Case No. 2015 … · FromTherma Marine,...