=== dc2005-11-008-pages-1.ppm ===
ets Republic of the Philippines
- s DEPARTMENT OF ENERGY

EN 2

DEPARTMENT CIRCULAR NO. __0¢2005-11-008 Arey

CALLING ON ALL ELECTRIC INDUSTRY PARTICIPANTS TO
PARTICIPATE IN THE LIMITED LIVE DISPATCH OPERATIONS OF THE
WHOLESALE ELECTRICITY SPOT MARKET

WHEREAS, Section 30 of Republic Act No. 9136, otherwise known as the “Electric
Power Industry Reform Act of 2001" or “EPIRA”, enjoined the Department of Energy
(DOE) to establish the Wholesale Electricity Spot Market (WESM) that would
facilitate a transparent, competitive and reliable market for electricity;

WHEREAS, significant progress has been made towards the commencement of
\WESM commercial operation and, at this final phase of the Trial Operations Program
(TOP) for Luzon, the WESM is now ready to conduct limited Live Dispatch
Operations to test the implementation of the Security-Constrained Dispatch'Schedule
(SCED) produced by the market dispatch optimization model in the Market
Management System (MMS);

WHEREAS, for the effective undertaking of this final phase of the TOP for Luzon and
to assist the Philippine Electricity Market Corporation (PEMC), currently chaired by
the DOE, in putting in place all the necessary components for the successful
implementation of the WESM, there is a need for the active participation of the
National Transmission Corporation (TransCo) as the System Operator together with
other industry participants;

WHEREAS, in order to meet the target date of WESM’s commercial operations in
January 2006 and in accordance with the schedule approved by the PEM Board, the
Live Dispatch Operations will be conducted within the period of 15 November to 15
December 2005, with actual schedules to be provided by PEMC to all industry
participants from time to time;

NOW, THEREFORE, premises considered, the DOE hereby calls on all industry
participants, especially the TOP participants, to actively participate in the WESM's
Live Dispatch Operations and cooperate with the PEMC on the implementation and
dispatch schedule, parameters and terms, with the end in view of bringing about
WESM commercial operations in Luzon in January 2006.

This Department Circular shall take effect immediately and shall remain in effect until
otherwise revoked.

Fort Bonifacio, Taguig, Metro Manila, _// November 2ep(

HAEL P. M. LOTILLA
Secretary

Energy Center, Merritt Rd., Fort Bonifacio, Taguig. Metro Manila, Philippines
Tels.: (Trunks) 840-1401 to 40; Fax 840-2087; 840-2236; 840-2067 (Oomestic), 632-840-2173, 632-840-2236; §32-
840-2067 (International)