RESOLUTION ADOPTING THE POSITION PAPER OF DISTRIBUTION UTILITIES (DUS) ENTERING PERFORMANCE-BASED REGULATION (PBR) FOR THE REGULATORY RESET PERIOD JULY 1, 2010 – JUNE 30, 2014 (…

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 a document
denominated as the “Distribution Wheeling Rates Guidelines” (DWRG);

WHEREAS, under Section 7.1.2 of the DWRG, the Commission must issue a
Regulatory Reset Issues Paper embodying its initial views on the issues
raised by the pending Regulatory Reset Process, specifying the
information required to be delivered and indicating the procedure to be
undertaken by Regulated Entities for purposes of the Regulatory Reset
Process;

WHEREAS, on September 5, 2008, the Commission posted in its official website at www.erc.gov.ph the
Issues Paper of the following distribution utilities (DUs) entering
performance based regulation (PBR) for the regulatory reset period July
1, 2010 – June 30, 2014: Cabanatuan Electric Corporation (CELCOR), Davao
Light and Power Company, Incorporated (DLPC), Ibaan Electric and
Engineering Corporation (IEEC), La Union Electric Company Incorporated
(LUECO), Tarlac Electric, Incorporated (TEI) and Visayan Electric
Company, Incorporated (VECO);

WHEREAS, on September 10, 2008, the Commission issued a Notice of
Public Consultation informing the public where they can secure a copy or
access said issues paper and set the same for public consultation on
October 23, 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 3, 2008;

WHEREAS, on October 9, 2008, the Commission issued an Order resetting the public consultation to October 27, 2008;

WHEREAS, on various dates, CELCOR, DLPC, LUECO, TEI and VECO
submitted their respective written comments/inputs on the said issues
paper;

WHEREAS, during said public consultation, various stakeholders
[private DUs, National Transmission Corporation (TRANSCO) and Philippine
Chamber of Commerce and Industry (PCCI)] were present and given
opportunity to manifest their respective positions on the matters or
issues presented in the Issues Paper;

WHEREAS, the foregoing public consultations were held in preparation
for issuance of the Position Paper which shall describe the position of
the Commission with regard to the regulatory reset for the Second
Regulatory Period following its consideration of the submissions
received and issues raised during the consultation process. Said
Position Paper shall embody the ratemaking policies and principles that
will govern the disposition of rate applications to be filed by the
entrant DUs for the Second Regulatory Period;

NOW, THEREFORE, be it RESOLVED, as the Commission hereby RESOLVES to
APPROVE and ADOPT the Position Paper on Regulatory Reset process for the
Second Regulatory Period hereto attached and made an integral part of
this Resolution as 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.