RESOLUTION MODIFYING THE RULES FOR SETTING DISTRIBUTION WHEELING RATES FOR PRIVATELY OWNED DISTRIBUTION UTILITIES ENTERING PERFORMANCE BASED REGULATION (RDWR)

WHEREAS, Section 43 (f) of Republic Act No. 9136, otherwise known as
the Electric Power Industry Reform Act of 2001 (EPIRA) and 5(a), Rule 15
of its Implementing Rules and Regulations (IRR), authorize the
Commission to adopt alternative forms of internationally accepted
rate-setting methodology;

WHEREAS, on December 10, 2005, the Commission adopted a
performance-based rate setting methodology for setting distribution
wheeling rates of private distribution utilities embodied in document
denominated as the “Distribution Wheeling Rates Guidelines” (DWRG);

WHEREAS, on April 11, 2006, the Commission adopted Resolution No. 16,
Series of 2006, “Adopting a Policy That Entry to the Performance Based
Regulation (PBR) by Private Utilities Under the Distribution Wheeling
Rates Guidelines (DWRG) be Made Mandatory”.

WHEREAS, on July 26, 2006, the Commission adopted Resolution No. 39,
series of 2006 entitled, “Adopting the Rules for Setting the
Distribution Wheeling Rates (RDWR) for Privately Owned Distribution
Utilities Entering Performance Based Regulation (First Entry Point)”;

WHEREAS, on December 13, 2006, the Commission adopted Resolution No.
54, Series of 2006 entitled, “Adopting the Rules for Setting the
Distribution Wheeling Rates (RDWR) for Privately Owned Distribution
Utilities Entering Performance Based Regulation (Second and Later Entry
Points)”;

WHEREAS, under Section 1.9 of the RDWR, the Commission is authorized to amend from time to time the said Rules;

WHEREAS, from the first entry processes, the Commission has identified a number of required changes to the RDWR;

WHEREAS, on September 26, 2008, the Commission posted in its official website at www.erc.gov.ph the proposed modifications to the RDWR;

WHEREAS, on September 29, 2008, the Commission issued a Notice of
Public Consultation informing the public where they can secure a copy or
access said proposed modifications to the RDWR and set the same for
public consultation on October 28, 2008;

WHEREAS, in the same Notice, interested parties were directed to file
their written comments/inputs on the said issues paper not later than
October 23, 2008;

WHEREAS, on various dates, all privately owned DUs submitted their
respective written comments/inputs on the said proposed modifications to
the RDWR;

WHEREAS, during said public consultation, various stakeholders
(privately owned DUs, commercial, industrial and residential consumers)
were present and given opportunity to manifest their respective
positions on the matters or issues presented in the proposed
modifications to the RDWR;

WHEREAS, the public consultation was held in preparation for issuance
of the Proposed Updated Rules for Setting Distribution Wheeling Rates
(RDWR) for the Third Entry Group Entering Performance Based Regulation
(PBR);

NOW, THEREFORE, be it RESOLVED, as the Commission hereby RESOLVES to
APPROVE and ADOPT the Proposed Updated Rules for Setting Distribution
Wheeling Rates (RDWR) for the Third Entry Group Entering Performance
Based Regulation (PBR) for Second Regulatory Period hereto attached and
made an integral part of this Resolution a Annex “A”^[*] .

This Resolution shall take effect immediately following its
publication in a newspaper of general circulation in the Philippines.

Let copies of this Resolution be furnished the University of the
Philippines Law Center-Office of the National Administrative Register
(UPLC-ONAR), all DUs, National Transmission Corporation (TRANSCO) and
National Power Corporation (NPC).

Adopted: 08 Dec. 2008

(SGD.) ZENAIDA G. CRUZ-DUCUT Chairperson
(SGD.) RAUF A. TAN Commissioner	(SGD.) ALEJANDRO Z. BARIN Commissioner
(SGD.) MARIA TERESA A.R. CASTANEDA Commissioner	(SGD.) JOSE C. REYES Commissioner

 

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^[*] Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.