=== dc2013-05-0008-pages-61.ppm === 7.1.5 7.1.6 7.1.4.4 7.1.4.5 7.1.4.6 to consider the IMEM Merit Order Table when issuing In-Day Dispatch Instructions for IMEM Trading Intervals affected by the IMEM Intervention. During any IMEM Trading Interval in which the [MEM is suspended, or in which IMEM Intervention has occurred, the IMEM Operator shall determine the Settlement Quantities and Settlement Amounts in accordance with Chapter 5 of these IMEM Rules. If the IMEM Operator reasonably believes that, due to the circumstances of the market suspension or IMEM Intervention, it is inappropriate to apply the pricing and settlement provisions of the [MEM Rules to a particular IMEM Trading Interval, the IMEM Operator shall determine appropriate alternate mechanisms for pricing and settlement in those IMEM Trading Intervals, and shall seek approval of same from the /GC and the ERC. If the IMEM Operator is seeking approval to apply alternate pricing and settlement mechanisms for an IMEM Trading Interval, and the alternate pricing and settlement mechanisms have not been approved in time to allow the /MEM Operator to meet the settlement timetable for the affected Billing Period, the IMEM Operator shall issue Settlement Statements for the affected Billing Period excluding any amounts for the affected IMEM Trading Interval. Market Suspension Reports 7.1.5.1 7.1.5.2 7.1.5.3 7.1.5.4 7.1.5.5 7.1.5.6 Within ten (10) Business Days following a declaration of market suspension under Clause 7.1.1.1, the IMEM Operator shall prepare a market suspension report. The Mindanao System Operator shall submit to the IMEM Operator an assessment of the impact of the market suspension to the Mindanao Grid within seven (7) Business Days following a declaration of market suspension under Clause 7.1.1.1. The market suspension report prepared by the /MEM Operator shall include: (a) The grounds for suspension; (b) The duration of suspension; (c) The actions taken to address the events that led to suspension; (d) An assessment of the impact of the market suspension to the MEM; and (e) The assessment of the impact of the market suspension to the Mindanao Grid submitted by the Mindanao System Operator in accordance with Clause 7.1.5.2. A copy of the market suspension report shall be provided to the /GC, the ERC, and the DOE upon completion of the report. A copy of the market suspension report shall be provided to IMEM Members and other interested persons on request. When requested, the /MEM Operator shall provide the DOE any other report regarding the market suspension as early as practicable. Intervention Reports 7.1.6.1 7.1.6.2 7.1.6.3 Within ten (10) Business Days following any IMEM Intervention under Clause 7.1.1.2, the IMEM Operator shall prepare an [MEM Intervention report. The Mindanao System Operator shall submit to the [MEM Operator an assessment of the impact of the IMEM Intervention to the Mindanao Grid within seven (7) Business Days following a declaration of an IMEM Intervention under Clause 7.1.1.2. The IMEM Intervention report prepared by the IMEM Operator shall include: 56 === dc2013-05-0008-pages-62.ppm === 7.1.6.4 7.1.6.5 7.1.6.6 (a) The grounds for IMEM Intervention; (b) The duration of IMEM Intervention; (c) The actions taken to address the events that led to IMEM Intervention; (d) An assessment of the impact of the /MEM Intervention to the IMEM; and (e) The assessment of the impact of the IMEM Intervention to the Mindanao Grid submitted by the Mindanao System Operator in accordance with Clause 7.1.6.2. A copy of the MEM Intervention report shall be provided to the GC, the ERC, and the DOE upon completion of the report. A copy of the IMEM Intervention report shall be provided to IMEM Members and other interested persons on request. When requested, the /MEM Operator shall provide the DOE any other report regarding the market intervention as early as practicable. 7.2 EMERGENCIES 7.2.1 7.2.2 Declaration of Emergencies 7.2.1.1 7.2.1.2 7.2.1.3 The Mindanao System Operator may declare an IMEM Emergency when it determines the existence of a situation which: (a) Has an adverse material effect on electricity supply, or which poses as a significant threat to system security in accordance with Clause 7.3.2.1; and (b) The Mindanao System Operator cannot address without significant departure from either the Day-Ahead IMEM Schedules of the IMEM Resources or the IMEM Merit Order Table as further described in the relevant MEM Manual. An IMEM Emergency may include: (a) A Mindanao Power System disturbance due to an outage in the Mindanao Power System; (b) A significant environmental phenomenon, including weather, storms or fires which are likely to or are significantly affecting the Mindanao Power System; (c) Material damage to the Mindanao Power System; and (d) Any other situation in which the Day-Ahead IMEM Schedules of IMEM Resources or IMEM Merit Order Table cannot be implemented. An IMEM Member shall notify the Mindanao System Operator as soon as practicable of: (a) Any event or situation which, in the reasonable opinion of the IMEM Member is of a kind described in Clause 7.2.1.2; and (b) Any action taken by the IMEM Member under its safety procedures or otherwise in response to that event or situation. Actions in an IMEM Emergency 7.2.2.1 When an IMEM Emergency arises, the Mindanao System Operator shall: (a) Notify the MEM Operator immediately; (b) Notify the ERC and the DOE as soon as reasonably practicable; (c) Notify the MEM Operator and IMEM Members, as soon as reasonably practicable, of the commencement, nature, extent and expected duration of the IMEM Emergency 57 === dc2013-05-0008-pages-63.ppm === 7.2.2.2 7.2.2.3 7.2.2.4 7.2.2.5 (d) and the way in which the Mindanao System Operator reasonably anticipates it will act in response to the IMEM Emergency; and Notify the IMEM Operator, the ERC, the DOE, and IMEM Members of any material changes in the nature, extent and expected duration of an IMEM Emergency. During an IMEM Emergency the Mindanao System Operator shall: (a) (b) (c) (d) (e) Identify the impact of the IMEM Emergency on system security in terms of the capability of generating units, transmission systems or distribution systems; Identify and implement the actions required to end the MEM Emergency and restore the Mindanao Power System to a satisfactory operating state; In coordination with the IMEM Operator, issue emergency directions to IMEM Members as it reasonably considers necessary according to the emergency procedures, which may include, but need not be limited to, directions to: (i) Switch off, or re-route, energy delivery from an IMEM Generator; (ii) Call equipment into service; (iii) Take equipment out of service; (iv) Commence operation or maintain, increase or reduce active or reactive power output; (v) Curtail, shut down or otherwise vary operation or output; (vi) Shed or restore load; and (vii) Subject to Clause 7.3.2.5, perform or refrain from performing any other act or thing necessary for reasons of public safety or the security of the power system or undue injury to the environment; Implement any load shedding in a manner consistent with the system security and reliability guidelines; and To the extent possible, determine a rotating outage plan, and rotate any load shedding requirements. For the avoidance of doubt, emergency directions issued by the Mindanao System Operator are deemed to be /MEM Intervention in the IMEM. During an IMEM Emergency, each IMEM Member shall, subject to Clause 7.2.2.5: (a) (b) (c) (d) (e) Comply with this Chapter 7, safety procedures, and the emergency procedures applicable to the IMEM Member in the circumstances; Cooperate with the MEM Operator and the Mindanao System Operator to enable the Mindanao System Operator to implement the emergency procedures; Promptly comply with any emergency direction given by the Mindanao System Operator, including emergency directions requiring the disconnection of equipment from a transmission system or distribution system for reliability purposes, unless the IMEM Member reasonably believes that an emergency direction poses a real and substantial risk of damage to its equipment, to the safety of its employees or the public, or of undue injury to the environment; Notify the Mindanao System Operator if it intends not to follow the emergency direction for any of the reasons described in Clause 7.2.2.3(c); and Comply with the emergency direction to the fullest extent possible without causing the harms described in Clause 7.2.2.3(c). Where there is conflict between these IMEM Rules and: (a) The requirements of an MEM Member's safety procedures; 58 === dc2013-05-0008-pages-64.ppm === (b) The emergency procedures applicable to the IMEM Member in the relevant circumstances; (c) Any procedures developed by the Mindanao System Operator, or (d) An emergency direction given by the Mindanao System Operator. (e) The Mindanao System Operator shall decide which of those requirements or part of those requirements is to prevail and advise the relevant IMEM Trading Participants accordingly. 7.3. SYSTEM SECURITY THREATS 7.3.1 Notice of System Security Threat 7.3.1.1 7.3.1.2 7.3.1.3 7.3.1.4 7.3.1.5 Upon determination of the existence or the likely possibility of a significant threat to system security, the Mindanao System Operator shall immediately notify the IMEM Trading Participants and the IMEM Operator, including: (a) The nature and details of the threat; (b) The regions of the Mindanao Power System in which the threat to system security is likely to be located; (c) The general magnitude of the threat to system security; (d) An estimate of the likely duration thereof; (e) The likely shortfall in supply; and (f) The timeframe in which the Mindanao System Operator will likely need to declare an IMEM Emergency if the threat to system security does not subside. If the Mindanao System Operator provides the notice with details of a significant threat to system security to [MEM Trading Participants, in accordance with Clause 7.3.1.1, the Mindanao System Operator may issue instructions requiring each IMEM Trading Participant to provide best estimates of: (a) An /MEM Generator’s plant availability to either increase or decrease generation; and (b) An /IMEM Customer's ability to either increase or decrease load. An IMEM Trading Participant shall provide information required in accordance with Clause 7.3.1.2 as soon as practicable and such provision does not breach Section 6.2. The Mindanao System Operator shall treat all information provided to it by an IMEM Trading Participant under Clause 7.3.1.3 as confidential information and may only use that information for the following purposes: (a) Making a decision on whether to declare an IMEM Emergency; (b) Maintaining or re-establishing system security by issuing emergency directions under Clause 7.2.2.2(c); and (c) Regulatory reporting. The Mindanao System Operator shall inform IMEM Trading Participants and the IMEM Operator immediately when it reasonably considers that the significant threat to system security has been averted. 7.3.2 Response to System Security Threat 7.3.2.1 If the Mindanao System Operator has identified a significant threat to system security and it does not reasonably consider that sufficient time exists for the threat to subside without 59 === dc2013-05-0008-pages-65.ppm === 7.3.2.2 7.3.2.3 7.3.2.4 7.3.2.5 resulting in an IMEM Emergency, then the Mindanao System Operator shall declare an IMEM Emergency for the future IMEM Intervals which the threat to system security is projected to affect. If the Mindanao System Operator has identified a significant threat to system security and reasonably considers that sufficient time exists for the threat to subside without resulting in an IMEM Emergency, the Mindanao System Operator shall: (a) Facilitate an market response to overcome the threat to system security; and (b) Advise the MEM Operator and those IMEM Trading Participants who the Mindanao System Operator considers would be required to take action or cease taking action if the threat to system security is not resolved without resulting in an IMEM Emergency of the likely nature of the actions it would be required to take or cease taking if an IMEM Emergency were declared. The IMEM Operator may invite IMEM Trading Participants to revise or re-offer their physical capabilities submitted in accordance with Section 3.3 in respect of the relevant IMEM Trading Intervals. For the avoidance of doubt, actions taken under this Section 7.3.2 do not constitute IMEM Intervention in the IMEM. IMEM Intervention can only occur after the Mindanao System Operator has declared an IMEM Emergency. The Mindanao System Operator shall act in accordance with the Grid Code and Distribution Code at all times. 7.4 FORCE MAJEURE 7.4.1 7.4.2 Definition of Force Majeure Event 7.4.1.1 7.4.1.2 A Force Majeure Event is an event that: (a) Is not within the reasonable control, directly or indirectly, of the MEM Operator, Mindanao System Operator and IMEM Trading Participants; (b) Cannot be prevented or removed, despite the exercise of reasonable diligence; (c) Has resulted in a reduction in the normal capacity of part or all of the Mindanao Grid during that IMEM Interval; and (d) Is likely to materially affect the operation of the IMEM or materially threaten system security. The following are considered a Force Majeure Event: (a) Failure of communication facilities that makes it difficult for IMEM Trading Participants to submit their IMEM Offers; or for the IMEM Operator to receive IMEM Offers from IMEM Trading Participants or to transmit IMEM Merit Order Tables to the Mindanao System Operator; (b) Failure of IMEM systems, whether due to software or hardware failure, that makes the IMEM Operator unable to receive IMEM Offers or system information necessary and indispensable for the /MEM, or to generate feasible market results according to the IMEM timetable. (c) Any other event, circumstance or occurrence in nature of, or similar in effect to any of the foregoing. Obligations of the IMEM Operator and IMEM Trading Participants 60 === dc2013-05-0008-pages-66.ppm === 7.4.2.1. An IMEM Trading Participant shall notify the IMEM Operator of the occurrence of any Force Majeure Event, as soon as reasonably possible. 7.4.2.2. The IMEM Operator shall notify all IMEM Trading Participants of the nature of the Force Majeure Event and the extent to which the Force Majeure Event affects the operation of the IMEM as soon as reasonably possible. 7.4.2.3. IMEM Trading Participants shall use all reasonable endeavours to: (a) Ensure that they do not exacerbate a Force Majeure Event; and (b) Mitigate the occurrence and effects of a Force Majeure Event. 61 === dc2013-05-0008-pages-67.ppm === Chapter 8 - Compliance, Audit and Dispute Resolution 8.1 COMPLIANCE 8.1.1 Enforcement and Compliance Officer The Enforcement and Compliance Officer appointed pursuant to the WESM Rules shall be designated to investigate apparent or suspected non-compliance with the /MEM Rules. 8.1.2 Investigation of IMEM Members 8.1.2.1 8.1.2.2 8.1.2.3 8.1.2.4 8.1.2.5 8.1.2.6 8.1.2.7 8.1.2.8 8.1.2.9 If the IMEM Operator or Mindanao System Operator has reasonable grounds to believe that an IMEM Member is in breach or may commit breach of the IMEM Rules, the IMEM Operator or Mindanao System Operator shall notify the IGC of the suspected breach as soon as possible. The /IGC shall thereafter direct the Enforcement and Compliance Officer to investigate the alleged breach. The Enforcement and Compliance Officer shall issue a written notice to the IMEM Member specifying the nature of the offense and require the IMEM Member to explain the alleged offense with supporting documents within fifteen (15) Business Days from receipt of the notice. A copy of the notice shall be furnished to the /GC and the ERC. The Enforcement and Compliance Officer may request for any additional information from the IMEM Member or any other party, as may be necessary to complete its investigation. Failure to provide such information within a reasonable time shall constitute a breach without need for further investigation and shall be subject to an applicable penalty. Failure of the party subject of the investigation to provide material information within a reasonable time shall render the party prima facie liable for the offense subject of the investigation. In the conduct of its investigation, the Enforcement and Compliance Officer may request for conferences or visits to the IMEM Member’s facilities and shall be allowed entry after due notice. The Enforcement and Compliance Officer shall develop an investigation procedure for the guidance of the IMEM Members and shall publish the same on the Market Information Website. Upon the conclusion of its investigation, the Enforcement and Compliance Officer shall submit to the /GC a report on its findings on whether or not a breach of the IMEM Rules was committed. Upon receipt of the investigation report, the /GC shall review the findings of the Enforcement and Compliance Officer and act on the investigation report, either approving or disapproving the report or returning the same to the Enforcement and Compliance Officer for further investigation. If the /GC confirms that there is a breach of the IMEM Rules, it shall impose the appropriate sanctions as set out in Section 8.1.3 of these MEM Rules. As soon as practicable, the /MEM Operator shall provide the DOE a report summarizing the final decision of the /GC on the investigation report pursuant to Clause 8.1.2.8. 8.1.3. Sanctions 62 === dc2013-05-0008-pages-68.ppm === 8.1.4 8.2 8.2.1 8.2.2 8.2.3 In case of a finding of breach, the /GC may impose financial or non-financial penalties, or both. Non- financial penalties shall include issuance of warning or reprimand, suspension from participation in the IMEM or deregistration from the IMEM. The financial penalty shall be in the amount of PhP 10,000.00 for every breach committed. If a financial penalty is imposed, the IMEM Operator shall be authorized to deduct the financial penalty from any amounts payable to the IMEM Member in the IMEM. Reporting of IMEM Operator and Mindanao System Operator Breaches If any IMEM Member has reasonable grounds to believe that the MEM Operator or the Mindanao System Operator is in breach of the IMEM Rules, the IMEM Member shall notify the DOE and the ERC of the breach. AUDIT Testing of Market Software 8.2.1.1 The IMEM Operator shall ensure that any software used in relation to scheduling, billing and settlement shall be certified as correctly implementing the numerical calculations in the IMEM Rules by an independent reviewer appointed by the PEM Board. 8.2.1.2. The IMEM Operator shall publish software certificates provided by the independent reviewer on the Market Information Website. Audit of the IMEM Operator, Mindanao System Operator and Metering Services Providers 8.2.2.1 The DOE may require an independent third-party audit as often as may be necessary of the operations and processes related to the /MEM of the IMEM Operator, Mindanao System Operator or Metering Services Provider to be shouldered at the expense of the auditee. 8.2.2.2. The terms of reference of the independent audit shall be prepared by the DOE in consultation with the ERC, the [MEM Operator, the auditee and such other entities that the DOE may determine as necessary. 8.2.2.3 A copy of the report shall be provided to the DOE, ERC, the IMEM Operator and the auditee. 8.2.2.4 A summary report of non-confidential findings shall be published on the Market Information Website. Audit of IMEM Trading Participants 8.2.3.1 The DOE may require an independent third-party audit no more than annually, of the market activities of any IMEM Trading Participant. 8.2.3.2 The terms of reference of the independent audit shall be prepared by the /MEM Operator in consultation with the ERC, the DOE, the auditee, and such other entities that the IMEM Operator may determine as necessary. 8.2.3.3. Copies of the audit report shall be provided to the DOE, the ERC, the [MEM Operator and the auditee. 8.2.3.4 A summary report of non-confidential findings shall be published on the Market Information Website. 63 === dc2013-05-0008-pages-69.ppm === 8.3 8.3.1 8.3.2 8.3.3 DISPUTE RESOLUTION Application and Guiding Principles Pursuant to the EPIRA, the ERC has original and exclusive jurisdiction over all cases contesting rates, fees, fines and penalties imposed by the ERC in the exercise of its powers, functions and responsibilities under the EPIRA and over all cases involving disputes between and among participants or players in the energy sector. This includes such cases pertaining to the IMEM and IMEM Members. Dispute Resolution Process The IMEM Operator shall prepare and endorse to the DOE for approval an alternative dispute resolution mechanism for use by IMEM Members and the [MEM Operator in the resolution of Disputes. Dispute Resolution Administrator The Dispute Resolution Administrator appointed pursuant to the WESM Rules shall be designated to facilitate the resolution of Disputes between or among the parties pursuant to the dispute resolution mechanism under Section 8.3.2. 64 === dc2013-05-0008-pages-70.ppm === Chapter 9 - Interpretation and Applicability 9.1 9.1.1 9.1.2 INTERPRETATION OF THE IMEM RULES Format Conventions In the IMEM Rules, unless the context otherwise requires: 9.1.1.1 9.1.1.2 9.1.1.3 9.1.1.4 9.1.1.5 Headings are for convenience only and do not affect the interpretation of the IMEM Rules; Words importing the singular include the plural and vice versa; Words importing a gender include any gender; Where italicized and capitalized, a word or phrase has the definition given to that word or phrase in Chapter 10; and Other parts of speech and grammatical forms of a word or phrase defined in the MEM Rules have a corresponding meaning. Expressions and References 9.1.2.1 9.1.2.2 9.1.2.3 9.1.2.4 9.1.2.5 9.1.2.6 9.1.2.7 9.1.2.8 An expression importing a natural person includes any legal entity, company, partnership, joint venture, association, corporation or other body corporate and any government authority; A reference to anything (including, but not limited to, any right) includes a part of that thing; A reference to a Clause, paragraph, part, annexure, exhibit or schedule is a reference to a Clause and paragraph and part of, and an annexure, exhibit and schedule to the [MEM Rules and a reference to the /MEM Rules includes any annexure, exhibit and schedule; A reference to a statute, rule, regulation, proclamation, order, or circular includes all statutes, rules, regulations, proclamations, orders or circulars, consolidating or replacing it, and a reference to a statute includes all rules, regulations, proclamations, orders, or circulars issued under that statute; A reference to the IMEM Rules or to a document or a provision of a document includes an amendment or supplement to, or replacement of, the /MEM Rules or that document or that provision of that document; A reference to a person includes that person's executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and permitted assignees; A reference to a body other than an IMEM Member or the IMEM Operator (including, without limitation, an institute, association or authority), whether statutory or not: (1) Which ceases to exist; or (2) Whose powers or functions are transferred to another body, is a reference to the body which replaces it or which substantially succeeds to its powers or functions; and A reference in the context of any provision of the MEM Rules to a "representative" of any person is a reference to any director, officer or employee of that person or any agent, consultant or contractor appointed or engaged by that person for purposes connected with the subject matter of the relevant provision of the IMEM Rules. 65 === dc2013-05-0008-pages-71.ppm === 9.1.3. Times and Dates 9.1.4 9.1.3.1 9.1.3.2 9.1.3.3 9.1.3.4 9.1.3.5 9.1.3.6 9.1.3.7 9.1.3.8 Notices 9.1.4.1 9.1.4.2 A reference in the IMEM Rules to a calendar day (such as 1 January) or a day of the week (such as Sunday) is to the 24-hour period which begins right after 2400H of the previous day and until 2400H of that day. A reference in the IMEM Rules to a week is to the period right after 2400H of the previous day of the first day specified or implied until 2400H of the seventh day following. A reference in the IMEM Rules to a month (or a number of months) or a calendar month is to the period from 2400H of the previous day of a day in one month until 2400H of the previous day of the same day of the month which follows (or follows by the relevant number of months), or if there is no such day in that month, 2400H hours of the previous day of the first day of the next following month. A reference in the IMEM Rules to a year is to the period from right after 2400H of the previous day of a day in one year until 2400H hours of the previous day of the same day (or where the day in the first year was 29 February, on 1 March) in the following year, and a reference to a calendar year (such as 1997) is to be construed accordingly. A reference in the IMEM Rules to a time of day is to Philippine Standard Time and abbreviated as PST. A reference in the IMEM Rules to a period of time which dates from a given day, or the day of an act or event, is to be calculated exclusive of that day. A reference in the [MEM Rules to a period of time which commences on a given day, or the day of an act or event, is to be calculated inclusive of that day. Where under any provision of the IMEM Rules a person is required to provide any information by a certain date or time, the relevant provision is to be taken to include a requirement that that the relevant information shall be given as soon as possible and no later than the date or time given. A notice is properly given under the /MEM Rules to a person if: (a) It is personally served; (b) A letter containing the notice is sent by courier to the person at an address (if any) supplied by the person to the sender for service of notices or, where the person is an IMEM member, an address shown for that person in the register of IMEM Members maintained by the IMEM Operator, or, where the addressee is the IMEM Operator, the registered office of the IMEM Operator; (c) It is sent to the person by facsimile or electronic mail to a number or reference which corresponds with the address referred to in Clause 9.1.4.1(b) or which is supplied by the person to the IMEM Operator for service of notices and, if sent by electronic mail, the person sending the notice also sends a copy of the notice by letter or facsimile to the person on the same day; or (d) The person actually receives the notice by any other means. A notice is treated as being given to a person by the sender: (a) Where sent by courier mail to an address in the central business district of a region in the Philippines, on the second Business Day after the day on which it is posted; (b) Where sent by courier in accordance with Clause 9.1.4.1(b) to any other address, on the third Business Day after the day on which it is posted; 66 === dc2013-05-0008-pages-72.ppm === 9.1.4.3 9.1.4.4 (c) Where sent by facsimile in accordance with Clause 9.1.4.1(c) and a complete and correct transmission report is received: (i) (ii) Where the notice is of the type in relation to which the addressee is obliged under the IMEM Rules to monitor the receipt by facsimile outside of, as well as during, business hours, on the day of transmission; and In all other cases, on the day of transmission if a Business Day or, if the transmission is on a day which is not a Business Day or is after 1600H (addressee's time), at O900H on the following Business Day; (d) Where sent by electronic mail in accordance with Clause 9.1.4.1(c): (i) (ii) Where the notice is of a type in relation to which the addressee is obliged under the IMEM Rules to monitor receipt by electronic mail outside of, as well as during, business hours, on the day when the notice is recorded as having been received at the electronic mail destination; and In all other cases, on the day when the notice is recorded as having been first received at the electronic mail destination, if a Business Day or if that time is after 1600H (addressee’s time), or the day is not a Business Day, at O900H on the following Business Day; or (e) In any other case, when the person actually receives the notice. Any notice to or by a person under the /MEM Rules: (a) Shall be in legible writing and in English; and (b) Where the sender is a company, shall be signed by a responsible employee or officer thereof or under the corporate or official seal of the sender (except where the notice is sent by electronic mail). Where a specified period (including, without limitation, a particular number of days) is provided, for purposes of calculating the number of days indicated in the period, the first day shall be excluded while the last day is included in said computation. 9.2 APPLICABILITY OF THE IMEM RULES 9.2.1 Scope of Application By their participation in the IMEM, the IMEM Operator, the Mindanao System Operator, IMEM Service Providers and IMEM Trading Participants bind themselves to comply with: (a) These IMEM Rules, and all other rules, regulations, issuances, decisions, resolutions that may be issued by the DOE or ERC relevant to the operations of the IMEM; and (b) Guidelines and procedures set by the IMEM Operator and the Mindanao System Operator in the course of the operation of the IMEM. 9.2.2 Rights and Obligations 9.2.2.1 9.2.2.2 Unless otherwise expressly permitted by the MEM Rules, an IMEM Member shall not assign or transfer and shall not purport to assign or transfer any of its rights or obligations under the /MEM Rules. An entity does not waive its rights, powers and discretions under the /MEM Rules by: 67 === dc2013-05-0008-pages-73.ppm === (a) Failing to exercise its rights; (b) Only exercising part of its rights; or (c) Delaying the exercise of its rights. 9.2.3 Severability Each part or all of a provision of the IMEM Rules: (a) Will be construed so as to be valid and enforceable to the greatest extent possible; and (b) May be so construed (or deleted if necessary) regardless of the effect which that may have on the provision in question or any other provision or the MEM Rules as a whole. 68 === dc2013-05-0008-pages-74.ppm === Chapter 10 - Glossary Actual Loading: The instantaneous MW injection of an JMEM Generator at a specific point in time, which may be either a SCADA measurement, or the Mindanao System Operator's estimate of the actual loading of that IMEM Generator. Actual Exposure: The total unpaid Settlement Amounts of an IMEM Trading Participant relating to past Billing Periods. All-Or-Nothing Offer Type: The Offer Type that applies to an IMEM Offer where the capacity cannot be partially dispatched but must be dispatched in either full or not at all. This will apply, for example, to MEM Load Curtailment Resources that curtail load by disconnecting from the Mindanao Power System. Ancillary Services: Those services which are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice, the Grid Code and the Distribution Code. Average Exposure: The average of the total Settlement Amount of an IMEM Trading Participant during the previous six (6) Billing Periods. Billing Period: The period defined in Clause 5.1.1.2. Business Days: A day (excluding Saturdays and Sundays) on which banks and financial institutions are open in the city or municipality where the principal offices of the IMEM Operator are located. Confidential Information: Information which is or has been provided to, or by, an IMEM Trading Participant or the IMEM Operator under, or in connection with, the IMEM Rules and is stated under the IMEM Rules to be, or is classified by the IMEM Operator as, confidential information or is otherwise confidential or commercially sensitive information or information which is derived from any such information. Connection Point: The agreed point of supply established between an IMEM Network Service Provider and an IMEM Trading Participant. Contracted Capacity: Forms part of an IMEM Offer and is the total MW capacity of the IMEM Resource that is covered by Ex-Ante Contract Allocations. Customer Dispatch Compensation Recovery Amount: The Settlement Amount defined in Clause 5.4.4.2, which is the amount payable by an IMEM Customer in recovery of In-Day Dispatch compensation. Customer IMEM Demand: The portion of an IMEM Customer's forecast instantaneous MW demand that the IMEM Customer intends to source from the /MEM in a given IMEM Interval. Customer Interval Settlement Amount: The Settlement Amount defined in Clause 5.4.5.1 which is the total compensation due to or payment due from an IMEM Customer in respect of an IMEM Trading Interval. Customer Supply Amount: The Settlement Amount defined in Clause 5.4.2.1 which is the payment in due from that IMEM Customer for net withdrawal from the IMEM in an IMEM Trading Interval. 69 === dc2013-05-0008-pages-75.ppm === Day-Ahead Schedule: The total instantaneous MW supply that an MEM Resource is to supply within the Mindanao Power System at the end of a particular IMEM Interval. Day-Ahead IMEM Schedule: The instantaneous MW supply that an IMEM Resource is to supply from its IMEM Offer at the end of a particular IMEM Interval. Dispatch Compensation Amounts: The total compensation due to an /IMEM Resource for providing either an upwards or downwards /n-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Dispatch Compensation Recovery Rate: The rate that MEM Resources and IMEM Customers will be charged to recover the Dispatch Compensation Amounts paid to IMEM Resources. Dispatch Target: The value defined in Clause 3.5.1.4. Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.3.2 or Clause 5.2.3.4, which is the expected energy curtailment or injection of an MEM Resource in an IMEM Trading Interval if it operated in accordance with the Day Ahead Schedule and In-Day Dispatch Instructions, whichever is applicable. Dispute: Any dispute arising between or among the [MEM Operator, the Mindanao System Operator and the IMEM Members arising under or in connection with or in relation to the application of any of the provision of the IMEM Rules or IMEM Manuals, the interpretation of any of the provisions of the IMEM Rules or IMEM Manuals, any obligation to settle payment under the IMEM Rules or IMEM Manuals, or any dispute relating to or in connection with a transaction in the /MEM, provided, that the same shall not involve breach of the [MEM Rules or IMEM Manuals or such other regulatory policy. Dispute Resolution Administrator: The person tasked to facilitate the resolution of Disputes pursuant to Section 8.3.3. Distribution Code: Refers to the Philippine Distribution Code, which is the set of rules, requirements, procedures, and standards governing Distribution Utilities and users in the operation, maintenance, and development of their distribution systems. It also defines and establishes the relationship of the distribution systems with the facilities or installations of the parties connected thereto. Distribution Network: A system of cables which provide for the transfer of electric power within the Distribution Utility's franchise area. Distribution Utility: An Electric Cooperative, private corporation, government-owned utility, or existing local government unit, that has an exclusive franchise to operate a distribution system in accordance with its franchise and the EPIRA. DOE: See Department of Energy. Downward Dispatch Instruction: An instruction issued by the Mindanao System Operator to an IMEM Resource directing it to reduce its supply from that which it was directed to provide in the Day-Ahead IMEM Schedule. Downwards Customer Variation Quantity: The Settlement Quantity defined in Clause 5.2.7.3 which is the quantity for which an /IMEM Customer will contribute to the recovery of Upwards Dispatch Compensation in 70 === dc2013-05-0008-pages-76.ppm === an IMEM Trading Interval in respect of downwards variation outside its Variation Tolerance from its Expected Demand Quantity. Downwards Dispatch Compensation Amount: The Settlement Amount defined in Clause 5.4.1.5 which is the total compensation due to an IMEM Resource for providing downwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Downwards Dispatch Compensation Recovery Rate: The rate defined in Clause 5.4.3.2, which is the rate that IMEM Resources and IMEM Customers will be charged for each MWh of Upwards Resource or Customer Variation Quantity to recover the Downwards Dispatch Compensation Amounts paid to IMEM Resources. Downwards Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.9.5 for IMEM Load Curtailment Resources and Clause 5.2.11.4 for IMEM Generators, which is the quantity for which the IMEM Resource will be compensated for downwards /n-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Downwards In-Day Dispatch Premium Rate: The rate defined in Clause 5.3.2.3 which is the rate that will be paid to IMEM Resources as recompense for each MWh outside its Variation Tolerance of downwards /In-Day Dispatch. Downwards Resource Variation Penalty Rate: The rate defined in Clause 5.3.2.4 which is the rate that IMEM Resources will pay as penalty for each MWh of downwards variation outside its Variation Tolerance from Dispatched Quantity. Downwards Resource Variation Penalty Amount: The Settlement Amount defined in Clause 5.4.1.2(c) which is the penalty payable by an IMEM Resource for downwards variation outside its Variation Tolerance from Dispatched Quantity in an IMEM Trading Interval. Downwards Resource Variation Quantity: The Settlement Quantity defined in Clause 5.2.9.7 for IMEM Load Curtailment Resources and Clause 5.2.11.6 for IMEM Generators, which is the quantity for which the IMEM Resource will be penalized for downwards variation outside its Variation Tolerance from Dispatched Quantity in an IMEM Trading Interval. Electric Cooperative: A cooperative or corporation authorized to provide electric services pursuant to Presidential Decree No. 269, as amended, and Republic Act No. 6938 within the framework of the national rural electrification plan. Embedded IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption from a Mindanao Distribution System or User System and is registered as member of the /MEM under Chapter 2. Also, an IMEM Load Curtailment Resource which is not an IMEM Customer. End-Users: Any person or entity requiring the supply and delivery of electricity for its own use. Energy Regulatory Commission: The independent, quasi-judicial regulatory body created under the EPIRA. Enforcement and Compliance Officer: A person tasked to perform compliance and enforcement functions pursuant to Section 8.1. 71 === dc2013-05-0008-pages-77.ppm === EPIRA: Refers to Republic Act No. 9136 also known as the "Electric Power Industry Reform Act of 2001". ERC: See Energy Regulatory Commission. Ex-Ante Contract Allocations: An instantaneous MW quantity allocated in advance to an IMEM Generator or an IMEM Customer to indicate the portion of its capacity or demand (respectively) that is covered by a bilateral contract between the two. In each case, it is specified at the Connection Point of the IMEM Generator and the IMEM Customer. Expected Demand: The value determined in accordance with Section 3.2.8 for IMEM Load Curtailment Resources and Section 5.2.4 for IMEM Customers, which is the instantaneous MW amount which that /JMEM Customer or IMEM Load Curtailment Resource is forecast to consume at the end of an /MEM Interval, expressed as a positive number. Expected Demand Quantity: The Settlement Quantity defined in Clause 5.2.4.3 which is the estimated energy consumption of an IMEM Load Curtailment Resource or an IMEM Customer in an IMEM Trading Interval if it was not scheduled or dispatched to curtail energy, expressed as a negative number. Expected ILP Reduction: The quantity of electricity in MWh expected to be curtailed by a Mindanao Distribution Utility due to the participation of its customer in the Interruptible Load Program of the ERC as governed by ERC Resolution No. 08, Series of 2010 dated 10 March 2010. Ex-Post Contract Quantity: The quantity of electricity in MWh sold by one party to another, outside the IMEM, in an IMEM Trading Interval declared in accordance with Section 5.2.2. Final Settlement Statement: The statement setting out the /MEM transactions of an IMEM Generator ina Billing Period, issued by the IMEM Operator under Clause 5.1.2.4, and containing the information set out in Clause 5.5.2.1. Force Majeure Event: An event or situation described under Section 7.4.1. Forced Outage: A full or partial unplanned unavailability of an IMEM Resource, as defined in the Grid Code. Forced Outage Declaration: A notification sent to the Mindanao System Operator by an IMEM Resource when a Forced Outage occurs. Generating Plant: A facility, consisting of one or more Generating Units connected at a common Connection Point, where electric energy is produced from some other form of energy by means of a suitable apparatus. Generating Unit: A single machine generating electricity and all the related equipment essential to its functioning as a single entity. Grid Code: Refers to the Philippine Grid Code, which is the set of rules and regulations governing the safe and reliable operation, maintenance and development of the high-voltage backbone transmission system and its related facilities, pursuant to the EPIRA. Grid IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption the Mindanao Grid and is registered as member of the /MEM under Chapter 2. Also, an IMEM Load Curtailment Resource which is an IMEM Customer. 72 === dc2013-05-0008-pages-78.ppm === Grid-Connected End-User: An End-User that is directly connected to the Mindanao Grid IGC: See IMEM Governance Committee IMEM: See /nterim Mindanao Electricity Market. IMEM Adjusted Metered Quantity: The Settlement Quantity defined in Clause 5.2.6.2 for IMEM Customers in respect of an IMEM Trading Interval. IMEM Base Variation Price: The price in Pesos defined in Clause 5.3.2.2, which is the base price for the calculation of dispatch premiums and variation penalties for IMEM Resources. IMEM Cost Recovery Mechanism: Refers to the mechanism for recovering the costs incurred in establishing the [MEM as approved by the ERC. IMEM Customer: A person who engages in the activity of purchasing electricity supplied through the Mindanao Grid and registers with the MEM Operator in that capacity under Chapter 2. IMEM Customer Energy Price: The price in defined in Clause 5.4.2.2 which is the price at which IMEM Customers will pay for any purchases from the IMEM in an IMEM Trading Interval IMEM Day-Ahead Price: The price that is the basis for standard payments to [MEM Resources for supply during an IMEM Trading Interval, as set the preceding day in accordance with Section 3.4.4. IMEM Demand: The instantaneous MW demand to be met by supply from /MEM Resources in an IMEM Interval. The IMEM Demand is the sum of all Customer IMEM Demands. IMEM Embedded Generator: A Generating Plant that is indirectly connected to the Mindanao Grid through the Distribution Utilities’ lines or industrial generation facilities that are synchronized with the Mindanao Grid and is registered with the [MEM Operator in that capacity under Chapter 2. IMEM Emergency: An event or situation described under Section 7.2.1. IMEM Generator: [MEM Grid Generator or IMEM Embedded Generator. IMEM Governance Committee: The committee whose composition, duties and obligations are defined under Section 1.4. IMEM Grid Generator: A Generating Plant that is directly connected to the Mindanao Grid and registers with the [MEM Operator in that capacity under Chapter 2. IMEM Interval: Any hour, ending on the hour, during the time the /MEM is in effect. IMEM Intervention: The act of intervening in the operation of the IMEM by the Mindanao System Operator in case of an IMEM Emergency or by the /MEM Operator during the occurrence of a Force Majeure Event as defined under Chapter 7. IMEM Intervention Report: The reports submitted by each of the /MEM Operator and the Mindanao System Operator pursuant to Section 7.1.6. 73 === dc2013-05-0008-pages-79.ppm === IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption and is registered as member of the /JMEM under Chapter 2. IMEM Manual: A manual of specific procedures, systems or protocols for the implementation of the /MEM Rules promulgated by the DOE. IMEM Member: A person who is registered with the MEM Operator in accordance with Chapter 2. IMEM Merit Order Table: The table of ranked IMEM Offers with associated information that is constructed by the IMEM Operator under Section 3.4.5 for use by the Mindanao System Operator in managing in-day dispatch of IMEM Resources. IMEM Metering Services Provider: A person or entity authorized by the ERC to provide metering services and registered with the IMEM Operator in that capacity in accordance with Chapter 2. IMEM Network Service Provider: A person who engages in the activity of owning, controlling, or operating a transmission or distribution system and who is registered with the [MEM Operator that capacity under Chapter 2. IMEM Objectives: Refers to the objectives set forth in Section 1.1.4. IMEM Offer: A Regular IMEM Offer or a Standing IMEM Offer. An IMEM Offer has the form specified in Section 3.3.1. IMEM Operator: Refers to Philippine Electricity Market Corporation, the entity designated in accordance with DOE Department Circular DC No. 2013-01-0001 to implement the IMEM. IMEM Price Determination Methodology: Refers to the methodology for setting the prices in the /MEM as approved by the ERC. IMEM Prices: Prices set by the I MEM Operator in relation to the sale and purchase of energy in the /MEM, including the IMEM Day-Ahead Price, the IMEM Base Variation Price, the IMEM Customer Energy Price, and such other prices as may be required for an IMEM Intervention or an IMEM Suspension. IMEM Resource: An [MEM Generator or an IMEM Load Curtailment Resource. IMEM Rules: See /nterim Mindanao Electricity Market Rules. IMEM Schedule Optimization Model: A mathematical optimization process that schedules IMEM Offers. IMEM Service Provider: /MEM Metering Services Provider or an IMEM Network Service Provider. IMEM Trading Intervals: An [MEM Interval for which any capacity offered into the /MEM is utilized either through having a Day-Ahead IMEM Schedule or via In-Day Dispatch Instructions. IMEM Trading Participant: An /MEM Resource or an IMEM Customer. IMEM Trading Quantity: The Settlement Quantity defined in Section 5.2.10 for IMEM Generators, Section 5.2.8 for IMEM Load Curtailment Resources, and Clause 5.2.6 for IMEM Customers in respect of an IMEM Trading Interval. 74 === dc2013-05-0008-pages-80.ppm === In-Day Dispatch Instruction: A Downward Dispatch Instruction or an Upward Dispatch Instruction. Independent Market Operator (“IMO”): Refers to the person or entity financially and technically capable, with proven experience of not less than two (2) years as a leading independent market operator of similar or large size electricity market endorsed jointly by the DOE and electric power industry participants to assume the functions, assets and liabilities of the Autonomous Group Market Operator pursuant to Section 30 of the EPIRA. Insufficient Supply Condition: As defined for an IMEM Trading Interval in Clause 3.6.1, the condition where there is not enough generation to meet the forecast demand in Mindanao. Interim Mindanao Electricity Market Rules: The electricity market developed and implemented by the PEMC in accordance with DOE Department Circular No. DC2013-01-0001. Load-To-Maintain: The MW quantity, set under Section 3.6.2, that an IMEM Customer is required to limit its off-take from the Mindanao Grid to. Mandatory Participants: Refers to entities described in Section 2.1.1 that meet the qualifications under Section 2.3. Margin Call: An amount specified by the IMEM Operator to be paid by an IMEM Trading Participant in accordance with Clause 5.6.3.5 to make up for any anticipated shortfall between the security provided by that IMEM Trading Participant and the IMEM Operator's exposure in respect of that IMEM Trading Participant. Market Fees: The charges imposed on IMEM Members by the IMEM Operator to cover the cost of administering and operating the /MEM, as approved by the ERC. Market Information Website: A facility to be established by the IMEM Operator on the electronic communication system on which it may publish information which is then available to and may be accessed by IMEM Members. Meter: A device, which measures and records the consumption or production of electricity. Metered Quantity: Net quantity of energy injected or withdrawn from the transmission network, or distribution network, by an [MEM Trading Participant during an IMEM Trading Interval as measured in the Metering Data, where net injection is a positive number and a net withdrawal is a negative number Metering Data: The data obtained or derived from a Metering Installation. Metering Database: The database kept by the /MEM Operator pursuant to Clause 4.4.3. Metering Installation: The Meter and associated equipment and installations installed or to be installed for the collection of Metering Data required for settlement purposes. Metering Point: The point of physical connection of the device measuring the current in the power conductor. Metering Services: A service for the provision of metering facilities, meter reading, and Metering Data validation and estimation. 75 === dc2013-05-0008-pages-81.ppm === Metering Services Provider: A person or entity authorized by the ERC to provide Metering Services. Metering Services Provider Database: The database kept by IMEM Metering Services Providers pursuant to Clause 4.4.2. MinDA: The Mindanao Development Authority created under Republic Act. No. 9996. Mindanao Distribution System: The system of wires and associated facilities connected to the transmission system operated by the Mindanao System Operator belonging to a franchised Distribution Utility, extending between the delivery points on the transmission or sub-transmission system, or generator connection and the point of connection to the premises of the End-User. Mindanao Distribution Utilities: An Electric Cooperative, private corporation, government-owned utility, or existing local government unit which has an exclusive franchise to operate a Mindanao Distribution System in accordance with its franchise and the EPIRA and is registered as such under the provisions in Chapter 2. Mindanao Grid: Refers to the high-voltage backbone system of interconnected transmission lines, substations and related facilities in Mindanao. Mindanao Power System: The integrated system of transmission, distribution network and generating plant for the supply of electricity in Mindanao. Mindanao System Operator: The party identified as the system operator pursuant to the Grid Code, who has responsibility for generation dispatch, the provision of Ancillary Services, and operation and control to ensure safety, power quality, stability, reliability and security of the Mindanao Grid. National Grid Corporation of the Philippines: Refers to the corporation awarded the concession to assume the power transmission functions of the National Transmission Corporation pursuant to the EPIRA and was granted the franchise by Congress though Republic Act No. 9511. NEA: The National Electrification Administration, the entity established by Presidential Decree No. 269 as amended by Presidential Decree No. 1645. Offer Price: The price in Pesos per MWh at which an IMEM Resource is offering its Offered Capacity in an IMEM Offer for an IMEM Interval. Offer Type: The type of IMEM Offer being made, which is either a Standard Offer Type or an All-Or-Nothing Offer Type. Offered Capacity: The MW capacity that is offered by an IMEM Resource in its IMEM Offer. PEM Board: The group of directors serving from time to time on the board that is responsible for governing the Wholesale Electricity Spot Market. Pending IMEM Member: A person who is not yet registered with the [MEM Operator in accordance with Chapter 2 but has submitted initial requirements for registration to the IMEM Operator. Philippine Electricity Market Corporation: See /MEM Operator. 76 === dc2013-05-0008-pages-82.ppm === Philippine Standard Time: The standard for the second of time in the Philippines kept and maintained by the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA). Preliminary Settlement Statement: The statement setting out the /MEM transactions of an IMEM Trading Participant in a Billing Period, issued by the IMEM Operator under Clause 5.1.2.3, and containing the information set out in Clause 5.5.1. Prudential Security Requirements: The requirements imposed on an IMEM Trading Participant to provide and maintain a security in accordance with Section 5.6. Random Daily Priority: A random number that is generated each day and assigned to each IMEM Resource in order to set the ranking in the IMEM Merit Order Table in the case where its IMEM Offer has an Offer Price that is identical to that of one or more IMEM Offers from other IMEM Resources in a particularly IMEM Interval. Registered Capacity: The MW capacity set for an IMEM Resource at the time of registration. For MEM Generators, in most cases it will equal the capacity specified in its Certificate of Compliance (COC) issued by the ERC. Regular IMEM Offer: An offer submitted by an IMEM Resource to sell electrical energy through the MEM in a particular IMEM Interval. Resource Dispatch Compensation Recovery Amount: The Settlement Amount defined in Clause 5.4.4.1 which is the amount payable by an IMEM Customer in recovery of In-Day Dispatch compensation. Resource Energy Amount: The Settlement Amount defined in Clause 5.4.1.2(a) for an IMEM Resource, which is the compensation due to that IMEM Resource for net supply to the IMEM in an IMEM Trading Interval. Resource Energy Settlement Amount: The Settlement Amount defined in Clause 5.4.1.2 which is the compensation due to an JMEM Resource for energy supply in an IMEM Trading Interval, after any applicable variation penalties have been applied, but before any applicable dispatch compensation amounts or dispatch compensation recovery amounts. Resource Interval Settlement Amount: The Settlement Amount defined in Clause 5.4.5.2 which is the total compensation due to or payment due from an MEM Resource in an IMEM Trading Interval. Resource Supply Amount: The Settlement Amount defined in Clause 5.4.1.1 which is the compensation due to an IMEM Resource for energy supply in an IMEM Trading Interval, before any applicable dispatch compensation recovery amounts have been applied. Scheduled Quantity: The Settlement Quantity defined in Clause 5.2.3.1 for IMEM Resources, which is the expected energy curtailment or injection of an MEM Resource in an IMEM Trading Interval if it operated in accordance with the Day-Ahead Schedule. Self-Generation Facility: A power generation facility owned and constructed by an End-User for such End- User’s own consumption or internal use. 77 === dc2013-05-0008-pages-83.ppm === Settlement Amount: A Philippine Peso amount used in /MEM settlement to determine the monies owing from or payable to IMEM Trading Participants. Settlement Quantity: A MWh quantity applicable to an IMEM Trading Participant, used in IMEM settlement to determine the monies owing from or payable to IMEM Trading Participants. Settlement Statement: A Preliminary Settlement Statement or a Final Settlement Statement. Standard Offer Type: The Offer Type that applies to an IMEM Offer where the capacity can be partially dispatched. This will apply to most MEM Resources, including all [MEM Generators. Standing IMEM Offer: An IMEM Offer submitted by an MEM Resource to sell electrical energy through the IMEM in a given hour of the day and day of the week. It will always apply in that hour of any week unless it has been overridden by a Regular IMEM Offer specific to a particular IMEM Interval. Suspension Notice: A notice issued by the /MEM Operator in accordance with Clause 2.6.2.6. Unavailable Capacity: Forms part of an IMEM Offer and is the total MW capacity of the IMEM Resource that is unavailable to be included in the Contracted Capacity or the Offered Capacity due to Forced Outage, maintenance, or other reason provided by the IMEM Resource and accepted by the IMEM Operator. Uncontracted Demand: The portion of an IMEM Customer's forecast instantaneous MW demand in a particular MEM Interval that is not covered by Ex-Ante Contract Allocations. Unrecovered Resource Energy Settlement Amount: The Settlement Amount defined in Clause 5.4.2.3 which is the amount due to [MEM Resources for energy supply in an IMEM Trading Interval that cannot be allocated to IMEM Customers in that IMEM Trading Interval. Upward Dispatch Instruction: An instruction issued by the Mindanao System Operator to an IMEM Resource directing it to increase its supply from that which it was directed to provide in the Day-Ahead IMEM Schedule. Upwards Customer Variation Quantity: The Settlement Quantity defined in Clause 5.2.7.2 which is the quantity for which an IMEM Customer will contribute to the recovery of Downwards Dispatch Compensation in an IMEM Trading Interval in respect of upwards variation outside its Variation Tolerance from its Expected Demand Quantity. Upwards Dispatch Cost Recovery Amount: The Settlement Amount defined in Clause 5.4.1.4(b) which represents the additional cost of generation by an IMEM Resource providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Upwards Dispatch Premium Amount: The Settlement Amount defined in Clause 5.4.1.4(a) which is the compensation due to an IMEM Resource for providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval, over and above the additional costs of generation. Upwards Dispatch Compensation Recovery Rate: The rate defined in Clause 5.4.3.1, which is the rate that IMEM Resources and IMEM Customers will be charged for each MWh of Downwards Resource or Customer Variation Quantity to recover the Upwards Dispatch Compensation Amounts paid to IMEM Resources. 78 === dc2013-05-0008-pages-84.ppm === Upwards Dispatch Compensation Amount: The Settlement Amount defined in Clause 5.4.1.4, which is the total compensation due to an /IMEM Resource for providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Upwards Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.9.4 for IMEM Load Curtailment Resources and Clause 5.2.11.3 for IMEM Generators, which is the quantity for which the IMEM Resource will be compensated for upwards /n-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. Upwards In-Day Dispatch Premium Rate: The rate defined in Clause 5.3.2.3 which is the rate that will be paid to IMEM Resources as recompense for each MWh of upwards /n-Day Dispatch. Upwards Resource Variation Penalty Rate: The factor defined in Clause 5.3.2.4 which is the rate that MEM Resources will pay as penalty for each MWh of upwards variation outside its Variation Tolerance from its Dispatched Quantity. Upwards Resource Variation Penalty Amount: The Settlement Amount defined in Clause 5.4.1.2(b) which is the penalty payable by an IMEM Resource for upwards variation outside its Variation Tolerance from its Dispatched Quantity in an IMEM Trading Interval. Upwards Resource Variation Quantity: The Settlement Quantity defined in Clause 5.2.9.6 for IMEM Load Curtailment Resources and Clause 5.2.11.5 for IMEM Generators, which is the quantity for which the IMEM Resource will be penalized for upwards variation outside its Variation Tolerance from its Dispatched Quantity in an IMEM Trading Interval. User System: Refers to a system owned or operated by a person or entity that uses the Mindanao Grid. Variation Tolerance: The Settlement Quantity defined in Clause 5.2.5.2, which is the quantity by which (a) An IMEM Resource may deviate from its Dispatched Quantity in an IMEM Trading Interval without incurring financial penalties (b) An IMEM Customer may deviate from its Expected Demand Quantity in an IMEM Trading Interval! without incurring financial penalties and (c) An IMEM Resource may be dispatched up or down from its Scheduled Quantity without receiving In-Day Dispatch premiums. Voluntary Participants: Refers to entities described in Section 2.1.2 that meet the qualifications under Section 2.3. Week-Ahead Contract Allocations Report: The report summarizing Week-Ahead Generator Contract Allocations, provided by the Mindanao System Operator to the IMEM Operator in accordance with Section 3.2.6. Week-Ahead Customer Demand Forecast: The demand forecast for the following seven days provided by an IMEM Customer in accordance with Section 3.2.1. Week-Ahead Customer IMEM Demand: The specification of IMEM Demand for the following seven days provided by an IMEM Customer in accordance with Section 3.2.7. Week-Ahead Distribution Network Information Report: The report on outages and conditions for the following seven days in the Distribution Network of an IMEM Network Service Provider, provided in accordance with Section 3.2.3. 79 === dc2013-05-0008-pages-85.ppm === Week-Ahead Generation Requirement Forecast: The report on generation requirement for the following seven (7) days, provided by the Mindanao System Operator in accordance with Section 3.2.2. Week-Ahead Generator Contract Allocations: The specification of Ex-Ante Contract Allocations for the following seven days provided by an IMEM Generator in accordance with Section 3.2.5. Week-Ahead IMEM Demand Report: The report on I MEM Demand for the following seven days, provided by the IMEM Operator in accordance with Section 3.2.9. Week-Ahead Power System Information Report: The report on outages and conditions for the following seven (7) days in the Mindanao Power System, provided by the Mindanao System Operator in accordance with Section 3.2.4. WESM Rules: The detailed rules that govern the administration and operation of the Wholesale Electricity Spot Market. Wholesale Electricity Spot Market: The electricity market established by the DOE in accordance with Section 30 of the EPIRA. 80