DC2013-01-0001: Directing PEMC to Develop and Implement an Interim Mindanao Electricity Market (IMEM)

Status: operative
Confidence: high
Effective date: 2013-01-09
Parent law: ra-9136

Department Circular No. DC2013-01-0001, issued 9 January 2013 by DOE Secretary Carlos Jericho L. Petilla. Directs PEMC to design and implement the Interim Mindanao Electricity Market (IMEM) to address chronic brownouts caused by generation capacity deficiencies in the Mindanao grid.

Context: WESM had been operating in Luzon (since June 2006) and Visayas (since December 2010) but not Mindanao; PSALM/NPC controlled ~74.19% of Mindanao generating capacity at the time.

Key Provisions

IMEM design [DC2013-01-0001, §2, 2013-01-09]:

Day-ahead market; mandatory participation by all Mindanao generation companies and distribution customers
Targets supply deficiencies only (not full bilateral settlement)
Dispatch via merit order table (same principles as Luzon/Visayas)
Uniform market clearing price; costs allocated among IMEM participants
Real-time imbalance correction via merit order table

PEMC obligations: Submit IMEM Implementing Rules to DOE within 2 months (by March 2013); file ERC application for cost-recovery funding [DC2013-01-0001, §2, 2013-01-09].

Agency responsibilities [DC2013-01-0001, §3, 2013-01-09]:

NGCP: grid reliability per Philippine Grid Code
TransCo: technical support to DOE/PEMC
PSALM/NPC: maximize Mindanao generating capacity; PSALM finances O&M
NEA: prepare Mindanao electric cooperatives for IMEM participation

IMEM operated until WESM Mindanao commercial operations on 26 January 2023.

Full text: Cleaned copy