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2 DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO._DC2012-08- 000 a

ADOPTING FURTHER AMENDMENTS TO THE WESM RULES
(WESM Rules Section 2.5.6 Notice of Non-approval of Application or Registration
as WESM Member)

WHEREAS, Rule 8.6.10 of the Wholesale Electricity Spot Market (WESM) Rules
provide for the approval by the Department of Energy (DOE) of proposals for any
WESM rules changes upon the endorsement of the Philippine Electricity Market
(PEM) Board;

WHEREAS, on 07 May 2012 the Philippine Electricity Market Corporation (PEMC)
submitted to the Rules Change Committee (RCC) proposed changes to the WESM
Rules on Notice of Non-approval of Application for Registration as WESM Member;

WHEREAS, the proposed changes will incorporate the decision of the Energy
Regulatory Commission (ERC) dated 19 September 2011, mandating the PEMC, in
all circumstances, to furnish a copy to ERC of the denial of an application for
membership in the WESM;

WHEREAS, on 06 June 2012, the RCC approved the proposed changes to the WESM
Rules provision on Notice of Non-approval of Application for Registration as WESM
Member and submission to the PEM Board for approval;

WHEREAS, on 28 June 2012, after discussion, the PEM Board has resolved to
approve for endorsement to the DOE the above stated changes to the WESM Rules;

NOW, THEREFORE, pursuant to its authority under the WESM Rules, the DOE

hereby issues, adopts and promulgates the following amendments to the WESM
Rules:

Section], Amendments to the WESM Rules.
11 Clause 2.5.6.1 is amended to read -

If the Market Operator does not approve an application for registration,
the Market Operator shail send within fifteen (15) business days written
notice to the applicant advising the applicant that the application is not
approved and the Market Operator shall give reasons for its decision.

Energy Center, Merritt Rd., Fort Bonifacio, Taguig City, Metro Manita, Philippines
Fax # 812-61-94 Tel.# 840-20-08 Fax # 840-21-38 Tel # 840-22-36 Fax # 840-17-31 Tel # 817-86-03 Trunkline 479-29-00
Website: www.doe.gov.ph, E-mail: info@doe.gov.ph

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1.2 Clause 2.5.6.2 is amended to read —

The DOE and ERC shail, in all instances, be provided a copy of such
written notice within five (5) business days after issuance to the
applicant.

Section 2. Separability Clause. If for any reason, any section or provisions of this
Circular is declared unconstitutional or invalid, such parts not affected shall
remain in full force and effect.

Section 3. Effectivity. This Circular shall take into effect immediately following its
publication in at least two (2) newspapers of general circulation and shall remain in
effect until otherwise revoked.

Issued this AUG 1 3 2012
Taguig City.

in Energy Center, Rizal Drive, Bonifacio Global City

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JOSE RENE D. ALMENDRAS
Secretary ‘> ‘DEPARTMENT OF ENERGY

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