=== dc2013-05-0008-pages-21.ppm === 2.5.2 2.5.3 2.6 2.6.1 2.5.1.2 entities shall undertake all endeavours to comply fully with the requirements of the /MEM Operator. If the IMEM Member registered under Clause 2.5.1.1 does not provide the requested information or such other supplemental information or documentation within fifteen (15) Business Days after being informed of the same pursuant to Clause 2.5.1.1, the IMEM Operator may treat the IMEM Member as suspended in accordance with Clause 2.6.2.1. Registration Process for Voluntary Participants 2.5.2.1 2.5.2.2 2.5.2.3 2.5.2.4 2.5.2.5 2.5.2.6 Entities described in Section 2.1.2 that meet the qualifications under Section 2.3 may register in the /MEM through the submission of the application form, the registration fee if applicable, and other documents and requirements which the /MEM Operator shall determine as necessary. The IMEM Operator shall assess the application submitted and may require additional documentation or information from the applicant which it considers reasonably necessary to aid the assessment of the application. The IMEM Operator shall advise the applicant of any further information requirements within five (5) Business Days of receiving the application. If an applicant does not provide the requested information within fifteen (15) Business Days of the request under Clause 2.5.2.2, the /MEM Operator may treat the application as being withdrawn. If the IMEM Operator determines, after assessment, that the applicant meets all the qualifications and requirements, the [MEM Operator shall approve the application within fifteen (15) Business Days of receipt of all requirements from the applicant. The applicant shall be notified of the approval in writing. The date of effectivity of the registration shall be stated in the notice. If the IMEM Operator determines, after assessment, that the applicant does not meet the qualifications and requirements, the MEM Operator shall disapprove the application and provide written notice to the applicant, stating the reasons for the disapproval. The IMEM Operator shall provide a copy of the notice to both the DOE and ERC within five (5) Business Days of issuance to the applicant. Registration Manual The IMEM Operator shall maintain and publish an IMEM Manual, which shall set out the requirements, and procedures that will guide the IMEM Members and applicants in the registration process in the /MEM. CESSATION, SUSPENSION, DISCONNECTION AND DEREGISTRATION Cessation of Registration 2.6.1.1 2.6.1.2 2.6.1.3 An entity that ceases its operations related to any IMEM Member category for which it is registered shall send written notice to the I MEM Operator to cease its registration under that category. A facility may choose to stop acting as an IMEM Load Curtailment Resource by providing written notice to the IMEM Operator to cease its registration under that category. Such notice sent to the IMEM Operator under Clauses 2.6.1.1 or 2.6.1.2 shall include: 16 === dc2013-05-0008-pages-22.ppm === 2.6.2 2.6.1.4 (a) The date upon which it wishes to cease to be registered, which date should not be less than thirty (30) business days from the IMEM Operator’s receipt of the said notice; and (b) The category or categories in which the MEM Member no longer wishes to be registered. On said effective date, the entity shall be deregistered in accordance with Section 2.6.3. Suspension and Disconnection 2.6.2.1 2.6.2.2 2.6.2.3 2.6.2.4 2.6.2.5 2.6.2.6 2.6.2.7 2.6.2.8 2.6.2.9 2.6.2.10 An IMEM Member may be suspended from the [MEM for the following grounds: (a) Breaches of any provision of the MEM Rules or IMEM Manuals as determined by the Enforcement and Compliance Officer in accordance with Section 8.1; (b) Default in payment or any grounds provided in Clauses 5.6.3.8 and 5.6.4.4 ; (c) Disconnection of IMEM Member from the Mindanao Grid or the Mindanao Distribution Utility; or (d) Failure to maintain or satisfy the requirements under the IMEM Rules or IMEM Manuals. A suspended /MEM Resource shall not receive any payment from the /MEM for all IMEM Intervals for which the suspension is in effect. Moreover, Offered Capacities from the suspended IMEM Resource shall not be considered in the determination of the Day-Ahead IMEM Schedules and IMEM Day-Ahead Price for all IMEM Intervals for which the suspension is in effect. A suspended /MEM Customer shall be considered to have zero (0) IMEM Demand on all IMEM Intervals for which the suspension is in effect. A suspended IMEM Trading Participant shall still be required to perform its obligations under these IMEM Rules including, but not limited to, the submission of information regarding contracts and demand. A suspended IMEM Member shall continue to be liable for any financial obligations incurred during and prior to its suspension or disconnection provided under Clause 2.6.2.8. When the [MEM Operator determines that any of the grounds for suspension under Clause 2.6.2.1 has occurred, the IMEM Operator shall provide written notice to the IMEM Member of its suspension, stating the reasons thereof and the effective date and hour of the suspension. A copy of which shall be furnished to the DOE, the ERC and the /GC. Immediately after a Suspension Notice is issued by the IMEM Operator under these IMEM Rules, the IMEM Operator shall publish the Suspension Notice in the Market Information Website. After serving a Suspension Notice in accordance with Clause 2.6.2.6, the [MEM Operator may send a written request for disconnection to the Mindanao System Operator for the disconnection of the Mindanao Grid-connected IMEM Member, together with a copy of the Suspension Notice provided under Clause 2.6.2.7. A copy of the written request shall be furnished to the DOE. When a disconnection request is made under Cause 2.6.2.8, the Mindanao System Operator shall thereafter disconnect the suspended MEM Member within five (5) Business Days from receipt of the request. If the grounds for suspension have been remedied or rectified, the IMEM Operator shall lift the suspension by providing written notice to the suspended member indicating the date 17 === dc2013-05-0008-pages-23.ppm === 2.6.3 2.6.2.11 2.6.2.12 2.6.2.13 and hour it will take effect, and, if applicable, send a written request to the Mindanao System Operator to reconnect the suspended IMEM Member. If within the five- (5) day period prior to disconnection under Clause 2.6.2.9, the IMEM Member has remedied the grounds for suspension, the /MEM Operator shall lift the Suspension Notice and send written notification to Mindanao System Operator of the same. When a reconnection request made under Cause 2.6.2.10, the Mindanao System Operator shall thereafter reconnect the suspended /MEM Member on the specified effective date or as soon as possible thereafter. If a suspension is revoked, the IMEM Operator shall publish the revocation notice in the Market Information Website. Deregistration 2.6.3.1 2.6.3.2 2.6.3.3 The IMEM Operator shall deregister an IMEM Member if: (a) The IMEM Member has provided a notice of cessation of registration under Section 2.6.1; or (b) The IMEM Member has been suspended and disconnected under Section 2.6.2, the suspension has not been lifted and the [MEM Member has not been reconnected within sixty (60) days from its disconnection. Any IMEM Member that is deregistered shall no longer be allowed to participate in the IMEM in the category from which they were deregistered, provided however that such entity shall continue to be liable for any obligations incurred prior to its suspension or disconnection. An IMEM Member that is deregistered may only be allowed to re-register upon remedying the grounds for its deregistration from the MEM Member category. 18 === dc2013-05-0008-pages-24.ppm === Chapter 3 - Market Operation 3.1 3.1.1 3.1.2 IMEM INTERVALS AND TIMETABLE Intervals and Trading Intervals 3.1.1.1 3.1.1.2 3.1.1.3 The IMEM shall operate on the basis of one hour [MEM Intervals, ending on the hour. IMEM Intervals in which a non-zero IMEM Demand is determined shall be designated as IMEM Trading Intervals. In addition, IMEM Intervals in which any In-Day Dispatch Instruction is issued to an IMEM Resource in relation to capacity covered in its Offered Capacity shall also be designated as IMEM Trading Intervals. Timetable for Operation of the IMEM 3.1.2.1 3.1.2.2 3.1.2.3 3.1.2.4 3.1.2.5 3.1.2.6 3.1.2.7 3.1.2.8 3.1.2.9 3.1.2.10 3.1.2.11 3.1.2.12 3.1.2.13 Each day by 0900H, each IMEM Customer shall submit to the Mindanao System Operator their Week-Ahead Customer Demand Forecast. Each day by O900H, each Mindanao Distribution Utility shall submit to the Mindanao System Operator their Week-Ahead Distribution Network Information Report. Each day by 1000H, the Mindanao System Operator shall prepare the Week-Ahead Generation Requirement Forecast based on the submissions in Clauses 3.1.2.1 and 3.1.2.2 and submit the same to the [MEM Operator. Each day by 1000H, the Mindanao System Operator shall submit the Week-Ahead Power System Information Report to the IMEM Operator. Each day by 1030H, the IMEM Operator shall publish the Week-Ahead System Generation Requirement Forecast and the Week-Ahead Power System Information Report in the Market Information Website. Each day by 1100H, each MEM Generator shall submit to the Mindanao System Operator their Week-Ahead Generator Contract Allocation. Each day by 1200H, the Mindanao System Operator shall submit to the IMEM Operator the Week-Ahead Contract Allocations Report. Each day by 1200H, the Mindanao System Operator shall submit to each IMEM Customer their Week-Ahead Contract Allocation. Each day by 1300H, each IMEM Customer shall submit to the Mindanao System Operator and to the IMEM Operator their Week-Ahead Customer IMEM Demand. Each day by 1330H, the IMEM Operator shall prepare and publish the Week-Ahead IMEM Demand Report. Each day by 1330H, the IMEM Operator shall transmit the Expected Demands calculated under Clause 3.2.8.1 to each Embedded IMEM Load Curtailment Resource. Each day by 1500H, the /MEM Operator shall cease receiving IMEM Offers from IMEM Resources for each IMEM Interval in the following day. Each day by 1600H, the IMEM Operator shall publish the IMEM Day-Ahead Price for each IMEM Trading Interval in the following day in the Market Information Website. 19 === dc2013-05-0008-pages-25.ppm === 3.2 3.2.1 3.1.2.14 3.1.2.15 3.1.2.16 3.1.2.17 3.1.2.18 Each day by 1600H, the IMEM Operator shall transmit the IMEM Merit Order Table and IMEM Day-Ahead Schedule of all IMEM Resources for each IMEM Interval to the Mindanao System Operator in the following day. Each day by 1600H, the IMEM Operator shall transmit to each IMEM Resource its Day- Ahead Schedule for each IMEM Interval in the following day. Each day by 1600H, the IMEM Operator shall transmit to each Mindanao Distribution Utility that has IMEM Resources directly connected to its Mindanao Distribution System the Day- Ahead Schedules of those IMEM Resources. The Mindanao System Operator may issue /n-Day Dispatch Instructions to IMEM Resources in accordance with Section 3.5.1. The IMEM Operator shall publish the Day-Ahead Schedules and Day-Ahead IMEM Schedules for each IMEM Trading Interval in the Market Information Website two (2) Business Days after the publication of the IMEM Day-Ahead Price. SYSTEM INFORMATION AND DETERMINATION OF IMEM DEMAND The Week-Ahead Customer Demand Forecasts 3.2.1.1 3.2.1.2 3.2.1.3 3.2.1.4 3.2.1.5 3.2.1.6 3.2.1.7 3.2.1.8 3.2.1.9 3.2.1.10 3.2.1.11 The Week-Ahead Customer Demand Forecast shall include the Customer Demand Forecast of the IMEM Customer for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of submission. The Customer Demand Forecast shall be an estimate of the instantaneous demand at the end of each IMEM Interval. The Customer Demand Forecast shall be made as at the IMEM Customer’s Connection Point. The Customer Demand Forecast shall not take into account any supply from embedded generation, or reduced load from either voluntary or involuntary load curtailment; they shall be calculated on the basis of zero contribution from these sources. For clarity, Clause 3.2.1.4 means that the Customer Demand Forecast are not estimates of what the IMEM Customer’s off-take will actually be, but of what would be its off-take if all demand within its system were to be met without curtailment and with all energy sourced from the Mindanao Grid. The Customer Demand Forecast shall not take into account any reduction from Interruptible Load Programs (ILP), however the Expected ILP Reduction for each IMEM Interval shall be submitted as a separate item in the Week-Ahead Customer Demand Forecast. The Customer Demand Forecast shall not take into account any outages or limitations of equipment within the Mindanao Grid. The Customer Demand Forecast shall take into account any known outages or limitations of equipment within the IMEM Customer’s network or facility. The Customer Demand Forecast shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). The Customer Demand Forecast shall take into account the forecast weather conditions. The Customer Demand Forecast shall take into account any known events, holidays or other situations that are likely to impact demand. 20 === dc2013-05-0008-pages-26.ppm === 3.2.1.12 IMEM Customers shall undertake all reasonable endeavours to achieve the highest possible accuracy of the Customer Demand Forecast and shall adopt a target of being within three percent (+3%) of the actual demand. 3.2.1.13 The Week-Ahead Customer Demand Forecast shall include a description of any abnormal conditions for which the IMEM Customer adjusted its Customer Demand Forecast, including but not limited to those conditions described in this Section 3.2.1. 3.2.2. The Week-Ahead Generation Requirement Forecast 3.2.2.1 3.2.2.2 3.2.2.3 The Week-Ahead Generation Requirement Forecast shall include all of the information specified in Section 3.2.1 for each IMEM Customer. The Week-Ahead Generation Requirement Forecast shall also include an estimate of total generation required to meet the demand from the Mindanao Power System for each IMEM Interval in the seven-day period based on the information specified in Section 3.2.1 commencing immediately after 2400H of the day of publication. At all times, the valid generation requirement forecast for an IMEM Interval shall be that in the most recently published Week-Ahead Generation Requirement Forecast which includes that IMEM Interval. 3.2.3. The Week-Ahead Distribution Network Information Reports 3.2.3.1 3.2.3.2 The Week-Ahead Distribution Network Information Reports submitted by each Mindanao Distribution Utility to the Mindanao System Operator shall include: (a) Information on any planned outage of Distribution Network equipment for the following seven (7) days; (b) Information on any forced outages of Distribution Network equipment during the previous day; and (c) Any other distribution network information requested by the MEM Operator or the Mindanao System Operator. Mindanao Distribution Utilities shall undertake all reasonable endeavours to ensure the completeness and accuracy of the Week-Ahead Distribution Network Information Reports. 3.2.4 The Week-Ahead Power System Information Report 3.2.4.1 3.2.4.2 3.2.4.3 The Week-Ahead Power System Information Report submitted by the Mindanao System Operator to the IMEM Operator shall include: (a) Information on any planned outage of Mindanao Grid equipment for the following seven (7) days; (b) Information on any forced outages of Mindanao Grid equipment during the previous day; and (c) Any other Mindanao Grid information requested by the /MEM Operator. The Week-Ahead Power System Information Report submitted by the Mindanao System Operator to the IMEM Operator shall also include all Week-Ahead Distribution Network Information Reports submitted by other IMEM Network Service Providers to the Mindanao System Operator on the same day. The Mindanao System Operator shall undertake all reasonable endeavours to ensure the completeness and accuracy of the Week-Ahead Power System Information Report. 21 === dc2013-05-0008-pages-27.ppm === 3.2.5 The Week-Ahead Generator Contract Allocations 3.2.6 3.2.5.1 3.2.5.2 3.2.5.3 3.2.5.4 3.2.5.5 3.2.5.6 The Week-Ahead Generator Contract Allocations submitted by each IMEM Generator shall include the Ex-Ante Contract Allocation to each IMEM Customer for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of submission. The Ex-Ante Contract Allocations shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). The Ex-Ante Contract Allocations shall be specified as an instantaneous megawatt quantity at the end of the /MEM Interval. To incorporate the impact of losses in the Mindanao Grid, the Ex-Ante Contract Allocations shall be specified as both: (a) The megawatt capacity of the IMEM Generator reserved for supplying the contracted energy; and (b) The megawatt off-take quantity at the IMEM Customer's Connection Point that is intended to be covered by the contracted energy. The sum of the Ex-Ante Contract Allocations, plus the Expected ILP Reduction, of each IMEM Customer in an IMEM Interval shall not exceed the Customer Demand Forecast of that IMEM Customer. IMEM Generators shall undertake all reasonable endeavours to ensure the Ex-Ante Contract Allocation to each IMEM Customer is amenable to that IMEM Customer. The Week-Ahead Contract Allocations Report 3.2.6.1 3.2.6.2 3.2.6.3 3.2.6.4 3.2.6.5 The Week-Ahead Generator Contract Allocations Report shall include all of the information provided under Section 3.2.5 as well as the following for each [MEM Interval: (a) The total Ex-Ante Contract Allocation for each IMEM Generator; (b) The total Ex-Ante Contract Allocation for each IMEM Customer; (c) Details of any alteration of Ex-Ante Contract Allocation performed by the Mindanao System Operator in accordance with Clause 3.2.6.3 which includes, but is not limited to, the reason for the alteration and the unaltered Ex-Ante Contract Allocation; (d) The Expected ILP Reduction for each IMEM Customer; and (e) The Uncontracted Demand for each IMEM Customer. If only one of the quantities in Clause 3.2.5.4 is specified, the Mindanao System Operator shall calculate the missing quantity based on: (a) Losses of two percent (2%) if the IMEM Generator is an IMEM Embedded Generator located in the IMEM Customer’s Distribution Network, and (b) Losses of four and thirty-five hundredths of a percent (4.35%) or any such transmission loss cap approved by the ERC. The Mindanao System Operator shall, if necessary and in consultation with the relevant IMEM Generator, alter the Ex-Ante Contract Allocations in order to create a feasible security-constrained generation schedule. The contract data shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). The contract data shall be specified as an instantaneous megawatt quantity available for withdrawal at any time in the /MEM Interval. 22 === dc2013-05-0008-pages-28.ppm === 3.2.6.6 3.2.6.7 3.2.6.8 For IMEM Generators, the total Ex-Ante Contract Allocation shall be the capacity of the IMEM Generator reserved for supplying contracted energy. For IMEM Customers, the total Ex-Ante Contract Allocation shall be the total off-take quantity at the IMEM Customer’s Connection Point that is covered by contracts. At all times, the valid Ex-Ante Contract Allocations for an IMEM Interval shall be that in the most recently submitted Week-Ahead Contract Allocations Report that include that IMEM Interval. 3.2.7. The Week-Ahead Customer IMEM Demand 3.2.7.1 3.2.7.2 For each IMEM Interval, each IMEM Customer shall, based on its Customer Demand Forecast, total Ex-Ante Contract Allocations and Expected ILP Reduction, determine the quantity they intend to purchase from the /MEM and submit the same to the IMEM Operator as its Customer IMEM Demand. The Customer IMEM Demand declared by an IMEM Customer shall not exceed the Customer Demand Forecast less the total Ex-Ante Contract Allocations and Expected ILP Reduction for that IMEM Customer. 3.2.8 The Expected Demand of Load Curtailment Resources 3.2.8.1 3.2.8.2 The Expected Demand for an Embedded IMEM Load Curtailment Resource is the instantaneous MW forecasted to be consumed at the end of an IMEM Interval as calculated by the IMEM Operator in accordance with the relevant MEM Manual. The Expected Demand for an IMEM Load Curtailment Resource which is also an IMEM Customer, or Grid IMEM Load Curtailment Resource, is the total Ex-Ante Contract Allocation for that IMEM Customer plus its Customer IMEM Demand. 3.2.9 The Week-Ahead IMEM Demand Report 3.2.9.1 3.2.9.2 3.2.9.3 3.2.9.4 3.2.9.5 The Week-Ahead IMEM Demand Report shall include the following information for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of publication: (a) The total generation required to meet demand, as per Clause 3.2.2.2; (b) Total system demand covered by Ex-Ante Contract Allocations; and (c) The total MEM Demand. The total IMEM Demand shall be the sum of the Customer IMEM Demand quantities submitted for that IMEM Interval. The quantities shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). The IMEM Operator shall undertake all reasonable endeavours to ensure accuracy in the calculation of the reported quantities. At all times, the valid MEM Demand for an IMEM Interval shall be that in the most recently published Week-Ahead IMEM Demand Report which includes that IMEM Interval. 3.3. SUBMISSION AND VALIDATION OF IMEM OFFers 23 === dc2013-05-0008-pages-29.ppm === 3.3.1 3.3.2 Form of Offers 3.3.1.1 3.3.1.2 3.3.1.3 3.3.1.4 3.3.1.5 3.3.1.6 3.3.1.7 3.3.1.8 3.3.1.9 3.3.1.10 A valid IMEM Offer for an IMEM Resource in an IMEM Interval shall consist of the following information: (a) The Offer Type; (b) The Contracted Capacity, if applicable; (c) The Unavailable Capacity, if any, including a reason for the unavailability; (d) The Offered Capacity; and (e) The Offer Price. An IMEM Offer with an All-Or-Nothing Offer Type, assigned to the IMEM Resource in accordance with Clause 2.3.2.4, will be scheduled in full or not at all. The Contracted Capacity shall equal the sum of the all the Ex-Ante Contract Allocations, if any, made to that IMEM Resource under Section 3.2.5. The Unavailable Capacity is applicable only to IMEM Generators and must be accompanied by a justifiable reason for being unavailable. The Offered Capacity shall be a single megawatt amount, not split out into blocks. For IMEM Generators, the Offered Capacity shall be equal to the Registered Capacity less the Contracted Capacity less the Unavailable Capacity. For IMEM Load Curtailment Resources, the Offered Capacity shall be no more than the Expected Demand of that IMEM Resource in the relevant [MEM Interval. The Offered Capacity, Contracted Capacity and Unavailable Capacity shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). The Offer Price shall be in Philippine Pesos per megawatt-hour (PhP/MWh) and shall be made in whole Philippine Pesos per megawatt-hour. The Offer Price shall not be greater than any limit that may be agreed upon by the DOE, the ERC, and the IMEM Operator. Standing Offers 3.3.2.1 3.3.2.2 3.3.2.3 3.3.2.4 3.3.2.5 3.3.2.6 3.3.2.7 Each IMEM Generator shall submit a Standing IMEM Offer for each IMEM Interval of each day of the week. Each IMEM Load Curtailment Resource may submit a Standing IMEM Offer for each IMEM Interval of each day of the week. Each Standing IMEM Offer shall specify the day of the week and /MEM Interval to which it applies. Each Standing IMEM Offer shall include all of the information specified in Clause 3.3.1.1. If any of this information changes, the IMEM Resource shall address this either by submitting a revised Standing IMEM Offer or by submitting a Regular IMEM Offer for each IMEM Interval in which the information differs from its current valid Standing IMEM Offer. A Standing IMEM Offer may be revised by the relevant IMEM Resource at any time. A Standing IMEM Offer which is revised under Clause 3.3.2.5 may specify a date that it will become effective, in which case it shall become effective at 1500H on the specified date; provided that the effective date specified is at least one (1) day after the date on which the revised Standing IMEM Offer is submitted. A Standing IMEM Offer which does not specify an effective date: 24 === dc2013-05-0008-pages-30.ppm === 3.3.3 3.3.4 3.4 3.4.1 3.3.2.8 (a) Shall, if submitted before 1500H, take effect at 1500H on the day of submission; (b) Shall, if submitted at or after 1500H, take effect at 1500H on the day following submission; and (c) Shall not affect any Day-Ahead IMEM Schedule which has already been published, or whose preparation has already been initiated at the time when the revised offer is accepted. A Standing IMEM Offer shall remain in effect until such time as it is revised under Clause 3.3.2.5, or until the IMEM Resource is deregistered from the IMEM. Submission of Offers 3.3.3.1 3.3.3.2 3.3.3.3 3.3.3.4 When submitting a Regular IMEM Offer or Standing IMEM Offer for a specified IMEM Interval, the IMEM Resource shall provide to the IMEM Operator the information required under Section 3.3.1 in accordance with the electronic communication procedures in Section 6.1.2. A Regular IMEM Offer for an IMEM Interval submitted after the deadline of submission of Regular IMEM Offers for that IMEM Interval specified in Clause 3.1.2.12 will be rejected by the IMEM Operator and the latest valid Regular IMEM Offer or the Standing IMEM Offer shall apply. The IMEM Operator shall, upon receipt of a valid IMEM Offer from an IMEM Resource, issue an electronic confirmation of receipt immediately. If an IMEM Resource does not receive confirmation of receipt under Clause 3.3.3.2 from the IMEM Operator within a period of thirty (30) minutes, the /MEM Resource shall contact the IMEM Operator to determine whether or not the offer was received. Validation of Offers 3.3.4.1 3.3.4.2 3.3.4.3 To be valid, IMEM Offers shall be submitted by the relevant IMEM Resource: (a) Prior to any relevant deadline; (b) Inclusive of the information specified in, and consistent with the requirements of, Section 3.3.1; and (c) Consistent with registered technical capabilities of the IMEM Resource. The IMEM Operator, upon receipt of a valid IMEM Offer from an IMEM Resource, shall verify whether the /IMEM Offer is valid in accordance with Clause 3.3.4.1 and shall issue an electronic notification to the IMEM Resource indicating its validity within a period of thirty (30) minutes. The IMEM Operator shall, if an IMEM Offer is determined not to be valid, include in the electronic notification sent under Clause 3.3.4.2 the reason or reasons that the IMEM Offer is not valid so that the JMEM Resource may correct and resubmit the MEM Offer. SCHEDULING AND PRICING Day-Ahead IMEM Schedules 3.4.1.1 For each IMEM Interval, the IMEM Operator shall determine the Day-Ahead IMEM Schedule of each IMEM Resource in accordance with the IMEM Schedule Optimization Model 25 === dc2013-05-0008-pages-31.ppm === 3.4.2 3.4.3 3.4.4 3.4.5 3.4.1.2 generally described in Section 3.4.3 and in detail in the IMEM Price Determination Methodology approved by the ERC. If there is insufficient capacity across all IMEM Offers to meet the MEM Demand, the IMEM Operator shall fully schedule all IMEM Offers and declare an Insufficient Supply Condition in accordance with Section 3.6.1. Day-Ahead Schedules 3.4.2.1 3.4.2.2 3.4.2.3 For each IMEM Interval, the IMEM Operator shall determine the Day-Ahead Schedule of all IMEM Resources at the end of that IMEM Interval. The Day-Ahead Schedule of an IMEM Generator in an IMEM Interval shall be its Day-Ahead IMEM Schedule determined in accordance with Section 3.4.1 plus its total Ex-Ante Contract Allocation for that IMEM Interval. The Day-Ahead Schedule of an IMEM Load Curtailment Resource in an IMEM Interval shall be equal to its Day-Ahead IMEM Schedule determined in accordance with Section 3.4.1 for that IMEM Interval. IMEM Schedule Optimization Model 3.4.3.1 3.4.3.2 3.4.3.3 3.4.3.4 The IMEM Schedule Optimization Model determines the Day-Ahead IMEM Schedule of each IMEM Resource for an IMEM Interval. The objective of the MEM Schedule Optimization Model shall be to minimize the total cost of purchasing energy from IMEM Offers in order to meet the IMEM Demand. In formulating the IMEM Schedule Optimization Model, the IMEM Operator shall ensure that the determination of the Day-Ahead IMEM Schedule of IMEM Resources is made subject to: (a) Constraints representing the Offered Capacities of IMEM Resources; (b) Constraints representing the Offer Type of IMEM Resources; and (c) An energy balance equation ensuring that the IMEM Demand will be met. In the case of IMEM Offers with equal Offer Prices, the IMEM Schedule Optimization Model shall prioritize the IMEM Offers of IMEM Generators over the IMEM Offers of IMEM Load Curtailment Resources. For IMEM Offers of IMEM Resources in the same IMEM Resource sub-category with equal Offer Prices, they shall be scheduled based on a Random Daily Priority, which is generated and assigned to all IMEM Resources on a daily basis. IMEM Day-Ahead Price 3.4.4.1 3.4.4.2 The IMEM Day-Ahead Price for an IMEM Trading Interval shall correspond to the highest Offer Price fully or partially scheduled by the IMEM Schedule Optimization Model for that IMEM Trading Interval. The IMEM Day-Ahead Price is the price that applies to the settlement of IMEM Resources in accordance with Chapter 5 of these IMEM Rules. IMEM Merit Order Table 3.4.5.1 For each IMEM Interval, the IMEM Operator shall construct the IMEM Merit Order Table, which shall consist of, but is not limited to,: (a) The IMEM Offers submitted for that IMEM Interval ranked in order of Offer Price; and 26 === dc2013-05-0008-pages-32.ppm === 3.4.6 3.5 3.5.1 3.4.5.2 3.4.5.3 3.4.5.4 3.4.5.5 (b) the total Ex-Ante Contract Allocation of each IMEM Generator. The IMEM Merit Order Table shall include columns identifying the following for each IMEM Offer: (a) The IMEM Resource; (b) The Offer Type; (c) Whether or not the Offered Capacity can be used for Upward Dispatch; and (d) Whether or not the Offered Capacity can be used for Downward Dispatch. The IMEM Merit Order Table shall also include a column specifying the Cumulative Offered Capacity that is the sum of all Offered Capacities and Ex-Ante Contract Allocations below that point. The IMEM Merit Order Table shall also include columns indicating whether the MEM Offer has, in accordance with Section 3.4.1, been scheduled and the megawatt quantity that has been scheduled from that MEM Offer. In the case of IMEM Offers with equal Offer Prices, the IMEM Offers of IMEM Generators shall be prioritized over the IMEM Offers of IMEM Load Curtailment Resources. For IMEM Offers of IMEM Resources in the same IMEM Resource sub-category with equal Offer Prices, they shall be ordered based on a Random Daily Priority, which is generated and assigned to all IMEM Resources on a daily basis. Implementation of the Day-Ahead Schedules 3.4.6.1 3.4.6.2 3.4.6.3 3.4.6.4 3.4.6.5 Each day, all IMEM Resources shall review their Day-Ahead Schedule determined by the IMEM Operator for the following day. If an IMEM Resource has a non-zero Day-Ahead Schedule for any IMEM Interval in the following day, it shall take all necessary actions to prepare for meeting its Day-Ahead Schedule in each IMEM Interval. In each IMEM Interval that an IMEM Resource has a non-zero Day-Ahead Schedule, it shall use reasonable endeavours to achieve a linear ramp rate over the [MEM Interval to reach its Day-Ahead Schedule at the end of the /MEM Interval. If an IMEM Resource is not technically capable of maintaining a linear ramp rate over the IMEM Trading Interval, it shall endeavour to inject or withdraw a quantity of energy consistent with the quantity that would have been injected or withdrawn if a linear ramp rate had been maintained. If for any reason an IMEM Resource foresees that it will not be able to meet its Day-Ahead Schedule by the end of an MEM Interval, it shall inform the Mindanao System Operator immediately. IN-Day DISPATCH OF IMIEM RESOURCES In-Day Dispatch Instructions 3.5.1.1 3.5.1.2 Up until one (1) hour prior to the start of each IMEM Interval, the Mindanao System Operator shall issue In-Day Dispatch Instructions to IMEM Resources to meet any changes in system requirements in accordance with this Section 3.5. In issuing In-Day Dispatch Instructions, the Mindanao System Operator shall follow the IMEM Merit Order Table received from the IMEM Operator while taking into account the 27 === dc2013-05-0008-pages-33.ppm === 3.5.2 3.5.1.3 3.5.1.4 3.5.1.5 3.5.1.6 Offer Type and ability to provide in-day dispatch of the facilities established in accordance with Clauses 2.3.2.4 and 2.3.2.5, respectively. In-Day Dispatch Instructions shall be either: (a) An Upward Dispatch Instruction to provide additional supply in excess of the IMEM Resource’s Day-Ahead IMEM Schedule; or (b) A Downward Dispatch Instruction to reduce supply below the IMEM Resource’s Day- Ahead IMEM Schedule. An In-Day Dispatch Instruction shall specify the gross instantaneous MW value to be provided by the IMEM Resource at the end of the relevant IMEM Interval (the “Dispatch Target”). For clarity, an Upward Dispatch Instruction to an IMEM Load Curtailment Resource is an instruction to curtail load more than its Day-Ahead IMEM Schedule, and a Downward Dispatch Instruction to an IMEM Load Curtailment Resource is an instruction to not curtail load in its Day-Ahead IMEM Schedule. In-Day Dispatch Instructions may be issued for any [MEM Interval for which the Mindanao System Operator has received an IMEM Merit Order Table, including IMEM Intervals that are not IMEM Trading Intervals and so do not have an IMEM Demand. In-Day Dispatch in Exceptional Circumstances 3.5.2.1 3.5.2.2 3.5.2.3 3.5.2.4 3.5.2.5 In-Day Dispatch Instructions are not intended to be used for services that would normally be provided through contracted Ancillary Services, however, in exceptional circumstances when it is necessary for the secure and reliable operation of the Mindanao Power System, the Mindanao System Operator may, in accordance with the relevant IMEM Manual, depart from the provisions of Section 3.5.1 by: (a) Issuing an In-Day Dispatch Instruction that deviates from the order specified in the IMEM Merit Order Table; or by (b) Issuing an /n-Day Dispatch Instruction after the deadline set in Clause 3.5.1.1, including within the [MEM Interval for which the In-Day Dispatch Instruction applies. The Mindanao System Operator, in consultation with the /MEM Operator shall maintain and publish an [MEM Manual setting forth the grounds and procedures for departing from the provisions of Section 3.5.1. For each In-Day Dispatch Instruction issued under Clause 3.5.2.1, the Mindanao System Operator shall estimate the quantity, in MWh, that the /MEM Resource was expected to supply during that IMEM Interval if it had fully complied with the In-Day Dispatch Instruction. For each In-Day Dispatch Instruction issued under Clause 3.5.2.1, the Mindanao System Operator shall submit a brief report providing its reasons for departing from the provisions of Sections 3.5.1 to the effected IMEM Resources, the IMEM Operator, the DOE and the ERC. If a situation requires departure from the provisions of Section 3.5.1 that will impact the dispatch and operation of a significant number of IMEM Resources, the Mindanao System Operator may, rather than operate under the provisions of this Section 3.5.2, opt to operate under the provisions of Chapter 7 of these /MEM Rules by declaring an IMEM Emergency. 28 === dc2013-05-0008-pages-34.ppm === 3.5.3. Implementation of In-Day Dispatch Instructions 3.5.3.1 3.5.3.2 3.5.3.3 3.5.3.4 If an IMEM Resource is issued an In-Day Dispatch instruction by the Mindanao System Operator, it shall take all necessary actions to prepare for implementing the instruction in the specified IMEM Interval. In each IMEM Interval that an IMEM Resource has been issued an /In-Day Dispatch Instruction, it shall use reasonable endeavours to achieve a linear ramp rate over the MEM Interval to reach the Dispatch Target at the end of the /MEM Interval. If an IMEM Resource is not technically capable of maintaining a linear ramp rate over the IMEM Interval, it shall endeavour to inject or withdraw a quantity of energy consistent with the quantity that would have been injected or withdrawn if a linear ramp rate had been maintained. If for any reason an IMEM Resource is unable to meet the Dispatch Target by the end of the specified IMEM Interval, it shall inform the Mindanao System Operator immediately. 3.5.4 Forced Outages 3.5.4.1 3.5.4.2 If an IMEM Resource suffers a Forced Outage which reduces its available capacity, it shall, as soon as possible, make a Forced Outage Declaration to the Mindanao System Operator, including a statement of the updated available capacity for that IMEM Resource excluding any capacity affected by the Forced Outage. Upon receipt of a Forced Outage Declaration, the Mindanao System Operator shall not issue any further /n-Day Dispatch Instructions to the affected IMEM Resource for any IMEM Interval for which the Forced Outage impacts the IMEM Resource’s capability to meet its Day-Ahead Schedule. 3.5.5 Recording and Reporting on In-Day Dispatch Events 3.5.5.1 3.5.5.2 The Mindanao System Operator shall keep a log that includes, at a minimum, all /n-Day Dispatch Instructions issued to IMEM Resources within the preceding six (6) months. Each day by 1500H, the Mindanao System Operator shall submit a report to the IMEM Operator and the DOE which includes the following: (a) /In-Day Dispatch Instructions that it issued on the preceding day; (b) Energy estimates computed in accordance with Clause 3.5.2.3; (c) Actual Loadings for each IMEM Generator at the end of each /MEM Interval on the preceding day; and (d) Forced Outage Declarations made by IMEM Resources for each IMEM Trading Intervals in the Billing Period. 3.6 IMEM TRADING INTERVALS WITH INSUFFICIENT SUPPLY 3.6.1 Insufficient Supply Condition 3.6.1.1 3.6.1.2 In any IMEM Trading Interval for which the total Offered Capacity of all IMEM Offers is insufficient to meet the IMEM Demand in that IMEM Trading interval, the IMEM Trading Interval shall be declared by the MEM Operator as having an Insufficient Supply Condition. For clarity, in an IMEM Trading Interval with Insufficient Supply Condition, the IMEM Day- Ahead Price shall still be determined in accordance with Clause 3.4.4.1. 29 === dc2013-05-0008-pages-35.ppm === 3.6.2 Load-To-Maintain 3.6.2.1 3.6.2.2 3.6.2.3 3.6.2.4 In any IMEM Trading Interval for which an Insufficient Supply Condition has been declared, the IMEM Operator shall calculate a Load-To-Maintain (LTM) level for each IMEM Customer, which it shall submit to the Mindanao System Operator together with the Day- Ahead Schedule and Day-Ahead IMEM Schedule of all IMEM Resources. The Load-To-Maintain values shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). If an IMEM Customer’s nominated Customer IMEM Demand is zero (0) then its Load-To- Maintain shall equal its total Ex-Ante Contract Allocation. The IMEM Operator shall calculate each MEM Customer’s Load-To-Maintain by distributing the total Offered Capacity of all IMEM Offers across all IMEM Customers on a pro-rata basis based on their Customer IMEM Demand and adding the same to the total Ex-Ante Contract Allocation of each IMEM Customer. 30 === dc2013-05-0008-pages-36.ppm === Chapter 4 - Metering 4.1 4.1.1 4.1.2 4.2 4.2.1 4.2.2 METERING SERVICES Provision of Metering Services 4.1.1.1 4.1.1.2 Metering Services for a facility of an IMEM Trading Participant that is directly connected to the Mindanao Grid will be provided by the National Grid Corporation of the Philippines. Metering Services for a facility of an IMEM Trading Participant directly connected to a Mindanao Distribution System will be provided by the Mindanao Distribution Utility that owns that Mindanao Distribution System. Registration of IMEM Metering Services Providers An entity identified to provide Metering Services in accordance with Section 4.1.1 shall be registered in the IMEM as an IMEM Metering Services Provider in accordance with Chapter 2 of these [MEM Rules. OBLIGATIONS RELATED TO METERING SERVICES IMEM Metering Services Providers 4.2.1.1 4.2.1.2 4.2.1.3 4.2.1.4 IMEM Metering Services Providers shall be responsible for ensuring that registered Metering Installations directly connected to their system are compliant with the provisions of this Chapter 4 and the relevant MEM Manual. IMEM Metering Services Providers shall be responsible for the retrieval, collection and validation of Metering Data from the Metering Installations they are responsible for. IMEM Metering Services Providers shall be responsible for supplying settlement-ready Metering Data to the IMEM Operator and, in case of Metering Data error, shall be responsible for the substitution of the affected Metering Data in accordance with this Chapter 4. IMEM Metering Services Providers shall not make, cause or allow any alteration to the original stored data in a Metering Installation; and shall use reasonable endeavours to ensure that no other person or entity does the same. IMEM Operator 4.2.2.1 4.2.2.2 The IMEM Operator shall be responsible for ensuring that facilities of IMEM Trading Participants have valid Metering Data for all IMEM Trading Intervals for the purposes of billing and settlement. The IMEM Operator shall maintain and publish an IMEM Manual that: (a) Describes the class and accuracy requirements of Metering Installations; (b) Defines the procedures that /MEM Metering Services Providers and the IMEM Operator must undertake to validate, estimate, correct or substitute erroneous Metering Data; (c) Defines the information that must be contained in the Metering Services Provider Database of the IMEM Metering Services Provider and the Metering Database of the IMEM Operator; and 31 === dc2013-05-0008-pages-37.ppm === (d) Other relevant procedures to implement the provisions of this Chapter 4. 4.3. METERING INSTALLATIONS 4.3.1 Registration of Metering Installations 4.3.1.1 4.3.1.2 A Metering Installation |located at the Connection Point of a facility of an IMEM Trading Participant to its IMEM Network Service Provider shall be registered with the IMEM Operator by the IMEM Metering Services Provider responsible for the Metering Installation in accordance with the relevant IMEM Manual. The IMEM Operator shall deregister Metering Installations from the IMEM in accordance with the grounds and procedures in the relevant IMEM Manual. 4.3.2 Metering Installation Requirements 4.3.2.1 4.3.2.2 A registered Metering Installation shall comply in all respects with the requirements of the Grid Code for facilities directly connected to the Mindanao Grid or the Distribution Code for facilities directly connected to a Mindanao Distribution System and the relevant IMEM Manual being implemented by the /MEM Operator. A registered Metering Installation shall: (a) Be accurate in accordance with this Chapter 4, the Grid Code, the Distribution Code and relevant IMEM Manual; (b) Contain a device which has a visible or an equivalently accessible display of Metering Data and which allows Metering Data to be accessed and read at the same time by portable computer or other equipment of a type or specification reasonably acceptable to all entities who are entitled to have access to that Metering Data; (c) Have electronic data recording facilities such that all Metering Data can be measured and recorded in all IMEM Intervals; (d) Where bi-directional active energy flows occur, be capable of separately registering and recording flows in each direction; (e) Have a Meter having an internal data logger capable of storing the Metering Data for at least sixty (60) days and have a back-up storage facility enabling Metering Data to be stored for at least forty-eight (48) hours in the event of external power failure; (f) Have an active energy meter, and, if required in accordance with the Grid Code or Distribution Code, a reactive energy meter having an internal data logger; (g) Have protection from unauthorized interference, both intentional and inadvertent, by having a secure housing for metering equipment or have the security at its Metering Point be adequate to protect against such interference; and (h) Have protection of its Metering Data from local or remote electronic access or manipulation of data by having suitable security electronic access controls. 4.3.3 Use of Meters 4.3.3.1 4.3.3.2 A registered Metering Installation shall be used by the IMEM Operator as the primary source of Metering Data for the settlement of the transactions of IMEM Trading Participants. Notwithstanding any other provision of this Chapter 4, the JMEM Operator will not be liable to any person or entity in respect of any inaccuracies, discrepancies or other defects in Metering Data, including Metering Data which is stored in the Metering Database; 32 === dc2013-05-0008-pages-38.ppm === 4.3.3.3 provided that these do not arise from the gross negligence or wilful misconduct of the IMEM Operator. Where a Metering Installation is used for purposes in addition to the provision of Metering Data to the IMEM Operator then: (a) That use shall not be inconsistent with, or cause any IMEM Member to breach any requirements of these IMEM Rules, the Grid Code and Distribution Code or any applicable laws; and (b) The IMEM Metering Services Provider shall coordinate the entities that use the Metering Installation for such other purposes to ensure compliance with this Clause 4.3.3.3. 4.3.4 Performance of Metering Installations 4.3.5 4.4 4.4.1 4.3.4.1 4.3.4.2 4.3.4.3 IMEM Metering Services Providers shall ensure that Metering Data being transmitted to the IMEM Operator are: (a) Within the applicable accuracy parameters described in the Grid Code, the Distribution Code and relevant IMEM Manual; and (b) Within the time required for settlement and at a level of availability of at least ninety- nine per cent (99%) per annum or as otherwise agreed between the [MEM Operator and the IMEM Metering Services Provider. If a Metering Installation malfunctions or a defect occurs, the IMEM Metering Services Provider shall ensure that repairs shall be made as soon as practicable and, in any event, within two (2) days from the occurrence of the defect or malfunction unless otherwise extended by the /MEM Operator upon request of the [MEM Metering Services Provider. An IMEM Member who becomes aware of a Metering Installation malfunction or other defect shall advise the IMEM Metering Services Provider and the [MEM Operator immediately after it was detected. Meter Time 4.3.5.1 4.3.5.2 The IMEM Metering Services Provider shall ensure that all Metering Installations and data logger clocks are referenced to Philippine Standard Time. The time of the Meters shall be set within an accuracy of plus or minus one second of Philippine Standard Time. METERING DATA Data Transfer and Collection 4.4.1.1 4.4.1.2 4.4.1.3 The IMEM Metering Services Provider shall retrieve the Metering Data from the Meter and transmit the same to the IMEM Operator within the period set out in the relevant MEM Manual. The IMEM Metering Services Provider must be capable of sending Metering Data in the required format to the IMEM Operator. The IMEM Metering Services Provider shall, at its own cost, ensure that Metering Data derived from a Metering Installation for which it is responsible for shows the time and date 33 === dc2013-05-0008-pages-39.ppm === at which it is recorded and is in accordance with the requirements of the /MEM Operator as provided in the relevant IMEM Manual. 4.4.2. Metering Services Provider Database 4.4.2.1 4.4.2.2 4.4.2.3 The IMEM Metering Services Provider shall create, maintain and administer a Metering Services Provider Database. The IMEM Metering Services Provider shall ensure that each associated IMEM Trading Participant as well as the IMEM Operator is given access to the information in its Metering Services Provider Database at all reasonable times and: (a) In the case of data sixteen (16) months old or less, within seven (7) Business Days of receiving written notice from the person or entity seeking access; and (b) In the case of data more than sixteen (16) months old, within thirty (30) Business Days of receiving written notice from the person or entity seeking access. The IMEM Metering Services Provider shall ensure that its Metering Services Provider Database contains the information specified in the relevant MEM Manual. 4.4.3, Metering Database 4.4.3.1 4.4.3.2 4.4.3.3 The IMEM Operator shall create, maintain and administer a Metering Database, which shall include a metering register containing information for each Metering Installation registered with the IMEM Operator and should be consistent with the Metering Installation registration data of the IMEM Metering Services Provider. The Metering Database shall include Metering Data and data substituted in accordance with Section 4.4.5 of this Chapter 4 and all calculations made for settlement purposes. Data shall be stored in the Metering Database: (a) For sixteen (16) months in accessible format; and (b) For ten (10) years in archive. 4.4.4 Rights of Access to Metering Data 4.4.4.1 4.4.4.2 The only entities entitled to have either direct or remote access to Metering Data ona read-only basis from the Metering Database in relation to a Metering Installation are: (a) Any IMEM Member with respect to the Metering Data in relation to a Metering Installation registered to it; (b) Any IMEM Generator who is a contract counterparty to an IMEM Customer to whom the Metering Data in relation to the registered Metering Installation relates; (c) The IMEM Metering Services Provider who is responsible for the Metering Installation; (d) The IMEM Operator and its authorized agents; (e) The DOE; and (f) The ERC. Metering Data identifiable to an IMEM Member shall be treated by the /MEM Operator as confidential and shall be subject to the provisions of 5.6.4.4 of the IMEM Rules. 4.4.5 Validation and Substitution of Metering Data 4.4.5.1 IMEM Metering Services Providers shall perform validation of the Metering Data of Metering Installations it is responsible for in accordance with the relevant IMEM Manual. 34 === dc2013-05-0008-pages-40.ppm === 4.4.5.2 4.4.5.3 4.4.5.4 4.4.5.5 4.4.5.6 In case of Metering Data error, the IMEM Metering Services Provider shall: (a) Perform estimation in order to derive corrected Metering Data in accordance with the procedures set out in relevant MEM Manual, (b) Present the corrected or substituted Metering Data to the IMEM Operator and the affected IMEM Trading Participant within two (2) Business Days from the detection of the error; and (c) Perform the obligations set out in this Clause 4.4.5.2 notwithstanding any Dispute raised by the affected IMEM Trading Participant. The IMEM Operator shall perform final validation of the Metering Data submitted by the IMEM Metering Services Providers in accordance with the relevant IMEM Manual. In case of Metering Data error, the IMEM Operator shall notify the IMEM Metering Services Provider that submitted the erroneous Metering Data of the error. The IMEM Metering Services Provider shall address the Metering Data error in accordance with Clause 4.4.5.2. If corrected Metering Data has not been submitted to the IMEM Operator two (2) days prior to the transmittal of Metered Quantity data to IMEM Trading Participants, the IMEM Operator shall estimate and substitute Metering Data in accordance with the relevant IMEM Manual. lf the above date does not fall on a Business Day, the due date shall be the next Business Day. If an IMEM Metering Services Provider provides corrected Metering Data to the IMEM Operator within one (1) year after the issuance of the Final Settlement Statement for the Billing Period where the IMEM Trading Interval of the corrected Metering Data belongs to, the IMEM Operator shall include in the Settlement Statements of affected IMEM Trading Participants for the next Billing Period the adjustments that resulted from the use of the corrected Metering Data. In case of Dispute with respect to the substitution implemented by the IMEM Metering Services Provider under Clause 4.4.5.2, the IMEM Metering Services Provider shall issue a certification on the corrected or substituted Metering Data, which shall be submitted to the IMEM Operator and the affected IMEM Trading Participant. 35