DC2010-03-0003 — Directing Adequate and Reliable Electric Power Supply
Department Circular No. DC2010-03-0003, issued 26 February 2010 by DOE Secretary Angelo T. Reyes. Circular directing all power generation companies, the transmission service provider, and all distribution utilities to ensure adequate and reliable electric power supply in the country.
Legal basis and mandate
Implements mandate of RA 7638 (Department of Energy Act of 1992), Section 5, as amended by Section 37 of RA 9136 (Electric Power Industry Reform Act of 2001 / EPIRA), requiring DOE to: (1) ensure reliability, quality and supply of electric power, and (2) establish and administer programs for exploration, transportation, marketing, distribution, utilization, conservation, stockpiling and storage of all forms of energy resources [DC2010-03-0003, Whereas, 2010-02]. DOE mandated to develop policies/procedures and promote energy development incentives to enable adequate capacity and reserve requirements [DC2010-03-0003, Whereas, 2010-02]. DOE mandated to monitor private sector energy activities and attain restructuring/privatization/modernization goals while enabling free and active private sector participation [DC2010-03-0003, Whereas, 2010-02]. DOE directed to formulate programs with incentives/penalties for judicious energy use [DC2010-03-0003, Whereas, 2010-02]. EPIRA Section 6 establishes generation as public-interest business requiring competitive, open market [DC2010-03-0003, Whereas, 2010-02].
Scope and applicability
Circular applies to: (1) all Generation Companies as defined in EPIRA, (2) all Distribution Utilities in country, and (3) National Transmission Corporation (TRANSCO) or its concessionaire, presently National Grid Corporation of the Philippines (NGCP), also referred to as System Operator [DC2010-03-0003, §1, 2010-02].
Generation company responsibilities
Generation Companies shall ensure availability of generation facilities at all times subject to technical constraints duly communicated to System Operator per existing rules/procedures [DC2010-03-0003, §2, 2010-02]:
Maximum Available Capacity: All gencos shall operate at Maximum Available Capacity, defined as registered maximum capacity of aggregate unit less: (1) forced unit outages, (2) scheduled unit outages, (3) de-rated capacity from technical constraints including (a) plant equipment-related failure and ambient temperature, (b) hydro constraints on water elevation/turbine discharge and megawatt output, and (c) geothermal constraints on steam quality (chemical composition, condensable/non-condensable gases), pressure, temperature variation, well blockage, and steam/brine collection/disposal system limitations [DC2010-03-0003, §2.1, 2010-02]. Monthly submissions to DOE-EPIMB with copies to SO and Philippine Electricity Market Corporation [DC2010-03-0003, §2.1, 2010-02].
Fuel inventory: Oil-based gencos maintain in-country stocks equivalent to at least 15-days running inventory including shipments in transit; monthly fuel inventory reports to DOE-EPIMB based on typical load dispatch and consumption [DC2010-03-0003, §2.2, 2010-02]. Coal power plants ensure required 30-day coal running inventory including shipments in transit; monthly inventory reports to DOE-EPIMB based on typical load dispatch and consumption schedule [DC2010-03-0003, §2.3, 2010-02].
Malampaya natural gas maintenance: During scheduled maintenance of Malampaya facilities, affected gencos maintain at least 15-days running inventory of alternative fuel and operate at full capacity [DC2010-03-0003, §2.4, 2010-02].
Status reporting: All gencos with natural gas-fired, geothermal, and hydroelectric plants submit monthly reports to DOE on current status and forecast of energy sources [DC2010-03-0003, §2.5, 2010-02].
Operational coordination and notification: Gencos must notify and coordinate with SO of any planned activity such as equipment shutdown per Philippine Grid Code [DC2010-03-0003, §2.6, 2010-02]. Must immediately inform DOE of any unexpected shutdown or derating with description of causes and estimated resumption time [DC2010-03-0003, §2.7, 2010-02]. Must seek prior DOE clearance for plans to deactivate or mothball existing units/facilities critical to reliable grid operation [DC2010-03-0003, §2.8, 2010-02]. Must strictly comply with Philippine Grid Code provisions [DC2010-03-0003, §2.9, 2010-02].
TRANSCO/NGCP (System Operator) responsibilities
TRANSCO/NGCP shall [DC2010-03-0003, §3, 2010-02]:
Transmission facilities and TDP: Ensure transmission facilities per DOE-approved Transmission Development Plan (TDP) are adequately provided and available for access by all electricity users in all grid areas. In TDP preparation, include all requirements of generation companies, distribution utilities, and suppliers; incorporate DOE-endorsed and approved modifications/adjustments in TDP prior to finalization [DC2010-03-0003, §3.1, 2010-02].
Deactivation evaluation: Undertake rigid evaluation of circumstances attendant prior to approval of deactivated shutdown per criteria in System Operator Procedure Manual [DC2010-03-0003, §3.2, 2010-02].
Grid Operating and Maintenance Program: Submit to DOE for consideration the Grid Operating and Maintenance Program (GOMP) including updates; monitor generation company compliance therewith [DC2010-03-0003, §3.3, 2010-02].
Interruption reporting: Immediately inform DOE of any power interruptions or threats. Report shall include description of magnitude, duration, causes, affected areas, and contingency/mitigating measures undertaken [DC2010-03-0003, §3.4, 2010-02].
Grid user connections: Ensure institutionalization of necessary connection agreements with all Grid Users (Generation Companies, Distribution Utilities, Direct Customers) and impose all pertinent Philippine Grid Code requirements [DC2010-03-0003, §3.5, 2010-02].
Distribution utility responsibilities
Distribution Utilities shall [DC2010-03-0003, §4, 2010-02]:
Regularly submit Distribution Utility Development Plan (DDP) to monitor existing, available, and future supply requirements; submit Monthly Operations Report (MOR) and Monthly Financial and Statistical Report (MFSR) for Electricity Cooperatives [DC2010-03-0003, §4.1, 2010-02]
Comply with all Philippine Grid Code (PGC) and Philippine Distribution Code (PDC) requirements at all times and report significant load interruptions in franchise area or threats leading to such events [DC2010-03-0003, §4.2, 2010-02]
Ensure power requirements within franchise areas are adequately covered by supply contracts or spot purchases from Wholesale Electricity Spot Market (WESM) at all times [DC2010-03-0003, §4.3, 2010-02]
In cases of Red Alert status declared by System Operator, immediately submit to DOE its manual load dropping schedule [DC2010-03-0003, §4.4, 2010-02]
Monitoring, enforcement, and governance
DOE, through Electric Power Industry Management Bureau (EPIMB), monitors compliance of all Generation Companies, Distribution Utilities, and NGCP [DC2010-03-0003, §6, 2010-02]. DOE, in consultation with Energy Regulatory Commission (ERC), shall formulate and implement enforcement and penalty mechanism in cases of non-compliance by Generation Companies, Distribution Utilities, and NGCP [DC2010-03-0003, §6, 2010-02].
Grid Reliability Task Force to be created to undertake studies and policy recommendations to DOE and ERC on overall reliability performance of Grid and Grid User facilities; members and specific tasks to be defined in separate circular [DC2010-03-0003, §6, 2010-02].
DOE designated as lead agency to supervise and oversee electric power industry, ensuring all plans and programs to achieve circular objectives are properly carried out [DC2010-03-0003, §5, 2010-02].
Regulatory and interagency support
Energy Regulatory Commission shall ensure timely recovery of generation cost of power plants in accordance with existing laws and procedures [DC2010-03-0003, §7, 2010-02].
DOE may seek assistance from other government agencies such as Bureau of Customs and National Water Resources Board in monitoring fuel inventory and supply of water resources for power use [DC2010-03-0003, §8, 2010-02].
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