=== dc2014-05-0010-pages-01.ppm === DEPARTMENT CIRCULAR NO. DC2074-05-0010 AMENDING THE INTERIM MINDANAO ELECTRICITY MARKET RULES AND PROVIDING FOR TRANSITORY ARRANGEMENTS WHEREAS, Section 2 (b) of Republic Act No. 9136 or the “Electric Power Industry Reform Act of 2001” (EPIRA) states the declared policy of the State to ensure the quality, reliability, security and affordability of the supply of electric power; WHEREAS, Republic Act No. 7638 or the “Department of Energy Act of 1992”, as amended by Section 7 of the EPIRA, authorized the Department of Energy (DOE) to exercise supervision and control over all govemment activities relative to energy projects and to formulate rules and regulations necessary to implement the objectives of these - laws; WHEREAS, on 24 May 2013 and 17 September 2013, the DOE issued Department Circular Nos. DC 20013-05-0008 and DC 2013-09-0020, respectively, for the Interim Mindanao Electricity Market (IMEM) after the conduct of public consultations and Information, Education and Communication (IEC) campaigns to address the power supply sttuation in Mindanao; WHEREAS, on August 2013, the Energy Regulatory Commission (ERC) issued an Order granting the provisional authority for the IMEM price determination methodology; WHEREAS, trial operations were held from 26 August 2013 until 25 September 2013 to familiarize the market participants with the processes under the IMEM Rules; WHEREAS, after a preliminary determination of participant readiness, the DOE issued Deparment Circular No. DC2013-09-0023 declaring the launch of initial operations on 26 September 2013 and full commercial operations on 03 December 2013 to allow the market participants additional time to familiarize themselves with the processes under the IMEM; WHEREAS, for the first billing period covering 03 December to 25 December 2013, several issues and operational concerns were experienced that prompted the DOE to initiate the conduct of series of reconciliation consultations of the First IMEM Billing between and among the IMEM Pantcipants, and thereafter undertook studies of the concerns and recommendations to improve the implementation of IMEM; WHEREAS, in view of the initial market results, the IMEM Governance Committee (JGC) endorsed to the DOE that a transition period be provided, to enable the IMEM trading participants be fully acquainted with their obligations under the IMEM Rules and to consider relaxation of existing policies to ensure a smooth and_ successful implementation of the IMEM; WHEREAS, as a result of the reconciliation and consultations with the IMEM Participants, ihe DOE in consultations with PEMC, deemed it necessary to amend certain provisions of the IMEM Rules, and to introduce Demand-Side Bidding and as Energy Center, Merritt Rd., Fort Bonifacio, Taguig, Metro Manila, Philippines Tels.: (Trunks) 479-2900; Fax 840-2067; 840-2236; 840-2067 (Domestic); 632-840-2173; 632-840-2236; 632-840-2067 (International) === dc2014-05-0010-pages-02.ppm === such provide the IMEM Participants with additional time to adjust their respective systems and processes on the IMEM Rules; NOW, THEREFORE, premises considered, the DOE declares as follows: Section 1. IMEM Commercial Operations Transition Period. A transition period is hereby declared for the implementation of the [MEM commencing 03 December 2013 until 25 June 2014 unless sooner revoked by the DOE: Provided, That during the transition period, the IMEM Operator shall be guided by the following: Section 1.1. The application of settlement amounts as provided in Clauses 5.4.1.2 (b), 5.4.1.2 (c), 5.4.1.2 (d), 5.4.1.4 (a) and 5.4.1.5 of the IMEM Rules, as well as financial penalties as a consequence of breach of the JMEM Rules and Manuals shall be suspended to avoid financial impact to participants while familiarizing themselves with the IMEM trading process. Section 1.2. The Timetable for Settlement and Billing as provided in Section 5.1.2 of the IMEM Rules shall be relaxed to ensure the calculation of correct settlement amounts in view of the need for familiarizing the IMEM trading participants with the IMEM trading and settlement processes. When the circumstances warrant, the transition period for the application of Section 1.1 of this Circular may be extended by the DOE until one (1) year from the commencement of the IMEM. Section 2. incorporation of the Demand-Side Bidding in the IMEM. To afford the IMEM customers greater participation in the IMEM, demand-side bidding is hereby incorporated in the IMEM and shall be implemented as part of the price discovery process. Details of the Demand-Side Bidding are provided for in Annex “A” hereof. For this purpose, PEMC is hereby directed, as may be necessary, to file with the Energy Regulatory Commission (ERC) an amendment to the IMEM Price Determination Methodology (PDM) to incorporate demand-side bidding. PEMC is likewise directed to conduct the trial operation of the demand-side bidding pending the approval of the ERC. Section 3. Other Provisions. Recognizing the need for a seamless implementation of IMEM and the role that Power Sector Assets and Liabilities Management Corporation (PSALM) capacity plays, the following amendments to the IMEM Rules detailed in Annex "B” are hereby made: Section 3.1. Treatment of PSALM Capacity. All available capacity of PSALM shall be dispatched in-day without incurring charges under the IMEM Rules for the deviations. In situations of reduced production by PSALM in-day, affected customers which used resources from IMEM shall be responsible for the full compensation of re-dispatched resources required to meet their actual energy requirements. Otherwise, customers may choose to maintain thetr reduced contract allocation from PSALM or source from other bilateral contracts. Section 3.2. Real-time Monitoring by the Mindanao System Operator. The Mindanao System Operator (MSO) will coordinate with the IMEM Customers tn Page 2 of 4 === dc2014-05-0010-pages-03.ppm === situations when additional IMEM resources are needed to maintain real-time system energy balance. MSO shall likewise provide real-time loading on the feeders to enable customers to monitor their load. In case the customer opts not to get energy from the IMEM, the customers are expected to be responsible for managing their actual energy requirements. Section 3.3. Recognition of Contract Provisions. The IMEM Rules shall be further harmonized with the existing power contracts in the Mindanao Grid through the implementation of the following amendments: Section 3.3.1. Re-Nomination of Contracts. IMEM Trading Participants may adjust their contract nominations up to one (1) hour before the start of the delivery interval. The IMEM Operator shall take account of the re-nomination of contracts in its calculation of the variations of the IMEM Trading Participants for the purpose of settlement. Section 3.3.2. Procedures during Shortage in Supply. The IMEM Operator shall perform calculation of Load-to-Maintain levels of all customers based on the power supply contracts they entered into to serve as basis of actual dispatch during supply shortage situations. IMEM Resources are required to submit to the IMEM Operator the supply contract level for each of its customer as an additional registration requirement. Section 3.4. Deviations of intermittent Generators. In addition to the option of contract re-nomination to reflect in-day adjustments as stated in Section 3.3.1, IMEM Generators with intermittent energy resources shall not incur charges for any deviations of their generating units from their schedule. Section 3.5. Technical Constraints. The [MEM Operator shall consider additional constraints in its scheduling and settlement processes to reflect the technical characteristics of the facilities in the Mindanao Grid. The technical characteristics shall include, but not limited to, the minimum stable loading and ramping capabilities of the IMEM Generators. Section 3.6. Publication of Resource Outages. The Mindanao System Operator shall publish forced and planned outages of generating plants in the Mindanao Grid on a daily basis. The planned outages included in the publication shall be those whose start is scheduled within seven (7) days from the publication of the outage report. Section 4. Assessment of the Transition Period and the Amendments. The IMEM Operator shall submit to the DOE an assessment report on the impact and results of the provisions in this Department Circular one (1} month before the end of the Transition Section 5. Repealing Clause. All rules and issuances inconsistent wherewith or contrary to the provisions of this Circular are deemed amended, modified or repealed accordingly. Section 6.Effectivity. This Circular shall take effect immediately after publication. Page 3 of 4 === dc2014-05-0010-pages-04.ppm === Done this _© ” day of _ MAY at Taguig City, Metro Manila, Philippines. cand JERICHO L. PETILLA Secretary 28 Becca Sy IN REPLYING PLS CITE: wu E-J ini 40 Page 4 of 4 === dc2014-05-0010-pages-05.ppm === Annex “A” IMEM RULES REFERENCE ORIGINAL PROVISION Clause 2.3.3.3 [New Provision] Clause 3.1.2.9 Each day by 1300H, each Clause 3.1.2.11 iIMEM Customer shall submit to the Mindanao System Operator and to the [MEM Operator their Week-Ahead Customer [MEM Demand. REVISED PROVISION | By default, the Bid Type of all (MEM Customers is Standard Bid Type. However, the (MEM Operator shall assign, upon provision of proof, the Bid Type of an MEM Customer whose operations require the scheduling of its full Pemand Capacity to an All-or-Nothing Bid Type for use in the process described in Section 3.3. [Deleted] ‘Each day by 1500H, the /MEM Operator shall prepare and publish the Week- Ahead iIMEM Demand Report. Each day by 1500H, the {MEM Operator shall cease receiving (MEM Demand Bids from {MEM Customers for each [MEM Interval in the foliowing day. Clause 3.1.2.14 L Each day by 1600H, the /MEM Operator shall transmit the (MEM Merit Order Table and {MEM Day-Ahead Schedule of all [MEM Resources for each IMEM interval to the Mindanao System Operator in the foliowing day. Each day by 1600H, the ‘MEM Operator shall transmit the {MEM Merit Order Table and IMEM Day-Ahead Schedule of all {MEM Resources_and /MEM Day-Ahead Load Schedule of all IMEM Customers for each IMEM Interval to the Mindanao System Operator in the following day. Clause 3.1.2.15 Each day by 1800H, the {MEM Operator shall transmit to each /MEM Resource its Each day by 1600H, the (MEM Operator shall transmit to each IMEM Resource its Day-Ahead Schedule and to === dc2014-05-0010-pages-06.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION REVISED PROVISION Day-Ahead Schedule for each IMEM Interval in the following day. each {MEM Customer its Day-Ahead Load Schedule for each /MEM Interval in the following day. Clause 3.1.2.17 | Clause 3.1.2.18 The Mindanao System Operator may issue /n-Day Dispatch Instructions to IMEM Resources in accordance with Section 3.5.1. [Moved to Clause 3.1.3.8] The /MEM 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. The {MEM Operator shall publish the Day-Ahead schedules and Day-Ahead Load Schedules for each IMEM Trading Intervalin the Market Information Website two (2) Business Days after the publication of the (MEM Day-Ahead Price. Section 3.2.7 . Demand The Week-Ahead Customer IMEM [Deleted] Clause 3.2.8.2 The Expected Demnand for an IMEM Load Curtaiiment Resource which is also an IMEM Customer, or Grid IMEM Load Curtailment Resource, is the total Ex- Ante Contract Allocation for that /MEM Customer plus its Customer IMEM Demand, Section 3.2.9 The Week-Ahead IMEM Demand Report Section 3.3 Submission and Validation of IMEM Offers The Expected Demand for an IMEM Load Curtailment Resource which is also an {MEM Customer, or Grid [MEM Load Curtailment Resource, is the total Ex-Ante Contract Allocation for that /MEM Customer plus its IMEM Hour-Ahead Load Schedule. [Deleted] ‘Submission and Validation of IMEM Offers_and IMEM Demand Bids === dc2014-05-0010-pages-07.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION Section 3.3.5 (New Section] | REVISED PROVISION Form of Demand Bids A valid IMEM Demand Bid for an MEM Customer in an [MEM interval shall consist of the following information: (a) The Bid Type; (b) The Bid Capacity. and {c) The Bid Price. An IMEM Demand Bid with an All-Or-Nothing Bid Type assigned to the /MEM Customer in accordance with Clause 2.3.2.6, will be scheduled in full or not at all. The Bid Capacity shail be a single megawatt amount not split out into blocks and shail be in megawatts (MWV} expressed to a precision of one decimal place (0. 1IMW, The Bid Price shalt be in Philippine Pesos per meqawatt- hour (PhP/MVVh) and shall be made in whole Philippine Pesos per meqawatt-hour. By default, the IMEM Demand Bid of an IMEM Customer for an IMEM interval is zero (0) MW at zero (0) Philippine Pesos per megawatt-hour. Submission of Demand Bids Clause 3.3.5.1 [New Provision] Clause 3.3.5.2 [New Provision] Clause 3.3.5.3 [New Provision] or 100kVV}. Clause 3.3.5.4 {New Provision] Clause 3.3.5.5 [New Provision] Section 3.3.6 [New Section] Clause 3.3.6.1 [New Provision] When submitting an {MEM Demand Bid for a specified IMEM Interval, the [MEM Customer snall provide to the IMEM Operator the information required under Section 3.3.5 in accordance with the electronic communication procedures in Section 6.1.2. === dc2014-05-0010-pages-08.ppm === REVISED PROVISION An IMEM Demand Bid for an [MEM Interval submitted after the deadline of submission of IMEM Demand Bids for that /MEM Interval specified in Clauses 3.1.2.11 and 3.1.3.2 will be rejected by the MEM Operator and the latest valid MEM Demand Bid shall apply. IMEM RULES REFERENCE ORIGINAL PROVISION Clause 3.3.6.2 [New Provision] Clause 3.3.6.3 [New Provision] Clause 3.3.6.4 [New Frovision] The /MEM Operator shall, upon receipt of a valid (MEM Demand Bid fram an /MEM Customer, issue an electronic confirmation of receipt immediately. if an (MEM Customer does not receive confirmation of receipt under Clause 3.3.6.3 from the /MEM Operator within a period of thirty (30) minutes, the /MEM Customer shall contact the /MEM Operator to determine whether or not the IMEM Demand Bid was received. ~ Section 3.3.7 [New Section] Clause 3.3.7.1 [New Provision] Clause 3.3.7.2 | [New Provision] the relevant iIMEM Customer. Validation of Demand Bids To be valid, (MEM Demand Bids shall be submitted by (a) Prior to any relevant deadline; and (b) Inclusive of the information specified in, and consistent with the requirements of, Section 3.3.5. The (MEM Operator, upon receipt of a valid IMEM Demand Bid from _an [MEM Customer, shall verify whether the MEM Demand Bid is valid in accordance with Clause 3.3.7.1 and shall issue an electronic notification to the (MEM Customer indicating its validity within a period of thirty (30} minutes. === dc2014-05-0010-pages-09.ppm === Clause 3.3.7.3 . Section 3.4.1 IMEM RULES . REFERENCE ORIGINAL PROVISION REVISED PROVISION [New Provision] Day-Ahead IMEM Schedules Clause 3.4.1.1 Clause 3.4.1.2 The {MEM Operator shall determine the Day-Ahead IMEM Schedule of each IMEM Resource in accordance with the IMEM Schedule Optimization Model generally described in Section 3.4.3 and in detail in the JMEM Price Determination Methodology approved by the ERC. If there is insufficient capacity across all IMEM Offers to meet the IMEM Demand, the JMEM Operator shall fully schedule all IMEM Offers and declare an /nsufficient Supply Condition in accordance with Section 3.6.1. The {MEM Operator shall, f an {MEM Demand Bid is determined not to be valid, include in the electronic notification sent_under Clause 3.3.7.2 the reason or reasons that the /MEM Demand Bid is not valid so that the /MEM Custorner may correct and resubmit the /MEM Demand Bid. IMEM Schedules and IMEM.Load Schedules The [MEM Operator shall determine the /MEM Schedule of each (MEM Resource and IMEM Load Schedule of each IMEM Customer in accordance with the (MEM Schedule Optimization Model generally described in Section 3.4.3 and in detail in the /MEM Price Determination Methodology approved by the ERC, | [Deleted] Clause 3.4.2.4 [New Provision] The Day-Ahead Load Schedule or Hour-Ahead Load schedule of an [MEM Customer in an IMEM Interval shall be its Day-Ahead IMEM Load Schedule or Hour- Ahead IMEM Load Schedule, respectively, determined in accordance with Section 3.4.1 plus its most recent total Ex-Ante Contract Allocation for that IMEM Interval during the determination of the Load Schedules. === dc2014-05-0010-pages-10.ppm === IMEM RULES REFERENCE Clause 3.4.3.4 Clause 3.4.3.2 ORIGINAL PROVISION The /MEM Schedule Optimization Model determines the Day-Ahead IMEM Schedule of each /MEM Resource for an IMEM Interval. REVISED PROVISION The IMEM Schedule Optimization Mode! determines the IMEM Schedule of each IMEM Resource and the IMEM Load Schedule of each IMEM Customer for an IMEM Interval. The objective of the MEM Schedule Optimization Mode/ shall be to minimize the total cost of purchasing energy from IMEM Offers in order to meet the /MEM Demand. The objective of the /MEM Schedule Optimization Model shall be to minimize the total cost of purchasing eneray from IMEM Offers with consideration of the IMEM Demand Bids. Clause 3.4.3.3 In formulating the IMEM Schedule Optimization Model, the /MEM 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: (6) Constraints representing the Offer Type of IMEM Resources; and (c) An energy balance equation ensuring that the [MEM Demand will be met. In formulating the IMEM Schedule Optimization Model, the /MEM Operator shall ensure that the determination of the (MEM Schedule of IMEM Resources and IMEM Load Schedule of IMEM Customers is made subject to: (a) Constraints representing the Offered Capacities of IMEM Resources; (bp) Constraints representing the Offer Type.of IMEM Resources; (c) An energy balance equation; (d) Constraints representing the Demand Capacities of IMEM Customers: and (e}_ Constraints representing the Bid Type of IMEM Customers. Clause 3.4.3.5 [New Provision} In the case of MEM Demand Bids with equal Bid Prices, the /MEM Demand Bids shall be scheduled based ona Random Daily Priority, which is generated and assigned to all /MEM Customers on a daily basis. === dc2014-05-0010-pages-11.ppm === IMEM RULES REFERENCE Section 3.6 ORIGINAL PROVISION REVISED PROVISION IMEM Trading Intervals with Insufficient Supply [Deleted] === dc2014-05-0010-pages-12.ppm === Annex “B” ORIGINAL PROVISION ~ REVISED PROVISION IMEM Resources with intermittent energy source that are certified by the DOE shall be exempted from payments to the IMEM. Timetable for Operation of the IMEM Day-Ahead Timetable for Operation of the IMEM in-Day Timetable for Operation of the IMEM Up to one (1) hour prior to the start of an /MEM interval, an [MEM Generator may submit to the /MEM Operator updates to its Ex-Ante Contract Allocations” for that /MEM Interval. |f an IMEM Generator submit updates to its Ex-Ante Contract Allocations, it shall also submit its total Ex-Ante Contract Allocation for that (MEM Interval. Up to one (1) hour prior to the start of an [MEM interval_an /MEM Customer may submit to the /JMEM Operator updates to the Demand Capacity of its IMEM Demand Bid for that IMEM Interval. IMEM RULES REFERENCE Clause 2.3.2.6 [New Provision] Section 3.1.2 section 3.1.3 [New Section] Clause 3.1.3.1 [New Provision] Clause 3.1.3.2 | New Provision] Clause 3.1.3.3 [New Provision] Up to five (5) minutes prior to the start of an IMEM interval, the {MEM Operator shall publish the (MEM === dc2014-05-0010-pages-13.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION Clause 3.1.3.4 [New Provision] Clause 3.1.3.5 iNew Provision] REVISED PROVISION Hour-Ahead Price for that /MEM interval in the Market Information Website. Up to five (5) minutes prior to the start of an /MEM Interval, the [MEM Operator shall transmit the Hour- Ahead IMEM Merit Order Table, IMEM Hour-Ahead Schedule of all {MEM Resources, and IMEM Hour- Ahead Load Schedule of all MEM Customers for that IMEM Interval to the Mindanao System Operator. ‘Up to five (5) minutes prior to the start of an /MEM interval, the /JMEM Operator shall transmit to each IMEM Resource its Hour-Ahead Schedule and each IMEM Customer its Hour-Ahead Load Schedule for that [MEM Interval. Clause 3.1.3.6 [New Provision] Clause 3.1.3.7 [New Provision] Up to five (5) minutes prior to the start of an /MEM interval, the IMEM Operator shall transmit to each Mindanao Distribution _Utifity that has /MEM Resources directly connected to its Mindanao Distribution System the Hour-Ahead Schedules of those MEM Resources. The {MEM Operator shall publish the Hour-Ahead Schedules and Hour-Ahead Load Schedules for each IMEM Interval in the Market Information Website at the end of each day. === dc2014-05-0010-pages-14.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION REVISED PROVISION Clause 3.1.3.8 [New Provision] The Mindanao System Operator may issue /n-Da : Dispatch instructions to IMEM— Resources in accordance with Section 3.5.1. Clause 3.2.5.7 [New Provision] At all times, the valid Ex-Ante Contract Allocations of an {MEM Generator for an [MEM Interval shall be the Ex-Ante Contract Allocations that were most recenti submitted to the IMEM Operator. Clause 3.2.6.8 At all times, the valid Ex-Ante Contract | [Deleted] Allocations for an [MEM Interval shall be include that {MEM Interval. that in the most recently submitted Week- Ahead Contract Allocations Report that Section 3.4.2 Day-Ahead Schedules Clause 3.4.2.1 For each /MEM Interval, the IMEM Operator shall determine the Day-Ahead Schedule of all IMEM Resources at the end of that /MEM Interval. Clause 3.4.2.2 The Day-Ahead Schedule of an IMEM Generator in an {MEM 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 [MEM Interval. Day-Ahead and Hour-Ahead Scheduies For each {MEM Interval, the IMEM Operator shail determine the Day-Ahead Schedule and Hour-Ahead schedule of all (MEM Resources, and the Day-Ahead Load Schedule and Hour-Ahead Load Schedule of all [MEM Customers at the end of that IMEM Interval. ‘The Day-Ahead Schedule or Hour-Ahead Schedule of an {MEM Generator in an [MEM Interval shall be its Day-Ahead IMEM Schedule or Hour-Ahead [MEM Schedule, respectively, determined in accordance with Section 3.4.1 plus its most recent total Ex-Ante Contract Allocation for that {MEM Interval during the determination of the Schedules. === dc2014-05-0010-pages-15.ppm === IMEM RULES REFERENCE Clause 3.4.2.3 - Section 3.4.4 ORIGINAL PROVISION 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. REVISED PROVISION The Day-Ahead Schedu/e or Hour-Ahead Schedule of an IMEM Load Curtailment Resource in an IMEM interval shall be equal to its Day-Ahead IMEM Schedule or Hour-Ahead IMEM Schedule respectively, determined in accordance with Section 3.4.1 for that IMEM Iniervai. IMEM Day-Ahead Price Clause 3.4.4.1 Clause 3.4.4.2 Clause 3.4.5.6 The {MEM Day-Ahead Price for an MEM Trading Interval shall correspond to the highest Offer Price fully or partially scheduled by the /IMEM Schedule Optimization Model for that MEM Trading Interval. IMEM Price The {MEM Price for an IMEM Trading Interval shall | correspond to the highest Offer Price fully or partially scheduled by the {MEM Schedule Optimization Model for that MEM Trading interval. The IMEM Day-Ahead Price is the price that applies to the settlement of /MEM Resources in accordance with Chapter 5 of these MEM Rules. The /MEM Hour-Ahead Price of an [MEM Trading interval, which is the IMEM Price published in accordance with Clause 3.1.3.3, is the price that applies to the settlement of /MEM Resources for that IMEM Trading Interval in accordance with Chapter 5 of these /MEM Rules. [New Provision] For each /MEM Interval, the (MEM Operator shall construct the Hour-Ahead IMEM Merit Order Table. The Hour-Ahead [MEM Merit Order shall be prepared using the same guidelines for preparing an /MEM Merit Order Table in this Section 3.4.5 but using the most recent /MEM Offers and Ex-Ante Contract Allocations at the time of its publication required under in Clause 3.1.3.4. === dc2014-05-0010-pages-16.ppm === {MEM RULES REFERENCE ORIGINAL PROVISION Section 3.4.6 Implementation of the Day-Ahead Schedules Clause 3.4.6.1 Each day, all MEM Resources shall review their Day-Ahead Schedule determined by the /MEM Operator for the following day. Clause 3.4.6.2 If an IMEM Resource has a non-zero Day- Ahead Schedule for any MEM Interval in the following day, it shall take all necessary actions to prepare for meeting its Day-Ahead Schedule in each [MEM Interval. Clause 3.4.6.3 ‘Schedule, it shall use In each IMEM Interval that an (MEM Resource has a non-zero Day-Ahead reasonable endeavours to achieve a linear ramp rate over the IMEM Interval to reach its Day- Ahead Schedule at the end of the IMEM Interval, Clause 3.4.6.4 lf an {MEM Resource is not technically capable of maintaining a linear ramp rate over the /MEM 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 rarnp rate had been maintained. REVISED PROVISION Implementation of the Hour-Ahead Schedules Each /MEM Interval, all IMEM Resources and [MEM Customers shall review their Hour-Ahead Schedule and Hour-Ahead Load Schedule, respectively determined by the {MEM Operator for the following IMEM Interval. Each (MEM Resource and {MEM Customer shall take all necessary actions to prepare for meeting its Hour- Ahead Schedule for the following (MEM interval. In each IMEM Interval, each IMEM Resource and IMEM Customer shall use reasonable endeavours to achieve a linear ramp rate over the IMEM Interval to reach its Hour-Ahead Schedule ar Hour-Ahead Load Schedule, respectively, at the end of the /MEM Interval. If an IMEM Resource or an /MEM Customer is not technically capable of maintaining a linear ramp rate over the /MEM 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. === dc2014-05-0010-pages-17.ppm === IMEM RULES REFERENCE Clause 3.4.6.5 ORIGINAL PROVISION REVISED PROVISION if for any reason an {MEM Resource foresees that it will not be able to meet its Day-Ahead Schedule by the end of an IMEM Interval, it shall inform the Mindanao System Operator immediately. Clause 3.5.1.2 In issuing /n-Day Dispatch Instructions, the Mindanao System Operator shall follow the IMEM Merit Order Table received from the /MEM Operator while taking into account the 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. ‘lf for any reason an /MEM Resource or IMEM Customer foresees that it will not be able to meet iis Hour-Ahead Schedule or Hour-Ahead Load Schedule by the end of an /MEM Interval, it shall inform the Mindanao System Operator immediately. In issuing /n-Day Dispatch instructions, the Mindanao System Operator shall follow the Hour-Ahead [MEM Ment Order Table received from the MEM Operator while taking into account the 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. Clause 3.5.1.6 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 /MEM Trading intervals and so do not have an /MEM Demand. In-Day Dispatch (nstructions may be issued for any IMEM Interval for which the Mindanao System Operator has received an (MEM Merit Order. Table, including {MEM Intervals that are not IMEM Trading intervals. Clause 5.2.3.1 The /MEM Operator shall determine the Scheduled Quantity for each IMEM Resource as the average of its Day- Ahead Schedu/es at the beginning and end of the relevant /MEM Trading Interval. The ‘MEM Operator shall determine the Scheduled Quantity for each MEM Resource as the average of its Hour-Ahead Schedules at the beginning and end of the relevant IMEM Trading Interval. Clause 5.2.3.2 The ‘MEM Operator shall determine the Dispatched Quantity for each IMEM The (MEM Operator shail determine the Dispatched | Quantity for each {MEM Resource as the average of === dc2014-05-0010-pages-18.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION Resource as the average of the most recent Day-Ahead Schedules or Dispatch Targets, whichever is applicable, applying to that JMEM Resource at the beginning and end of the MEM Trading Interval. Clause 5.2.3.3 REVISED PROVISION the most recent Hour-Ahead Schedules or Dispatch Targets, whichever is applicable, applying to that [MEM Resource at the beginning and end of the /MEM Trading Interval. For the purposes of calculating the Scheduled Quantity or Dispatched Quantity under this Section 5.2.3, if the previous (MEM Interval was not an IMEM Trading Interval then the Day-Ahead Schedule at the beginning of the MEM Trading Interval shall be taken as: Clause 5.2.4.1 Customer plus Subject to Clause 5.2.4.2, the Expected Demand of an IMEM Customer ts the total Ex-Ante Contract Allocation for that /MEM its Customer IMEM Demand. Clause 5.2.4.2 Clause 5.2.6.2 In any [MEM Trading Interval for which an insufficient Supply Condition has been declared, the Expected Demand for an IMEM Customer is the Load-fo-Maintain for that iIMEM Customer determined in accordance with Section 3.6.2. The IMEM Adjusted Metered Quantity of an /MEM Customer is determined as its Metered Quantity less: For the purposes of caiculating the Scheduled | Quantity or Dispatched Quantity under this Section 5.2.3, ifthe previous (MEM Interval was not an (MEM Trading interval then the Hour-Ahead Schedule at the beginning of the ‘MEM Trading Interval shall be taken as: Subject to Clause 5.2.4.2, the Expected Demand of an IMEM Customer is the most recent total Ex-Ante Contract Allocation for that IMEM Customer plus its Hour-Ahead IMEM Load Schedule. [Deleted] The (MEM Adjusted Metered Quantity of an IMEM Customer is determined as tts Metered Quantity less: | === dc2014-05-0010-pages-19.ppm === IMEM RULES ORIGINAL PROVISION REVISED PROVISION REFERENCE (a) The Metered Quantities of all (a) The Metered Quantities of all [MEM Embedded IMEM Embedded Generators for which Generators for which the /MEM Customer is the the {MEM Customer is the IMEM IMEM Network Service Provider, and Network Service Provider, and (b} The differences between the Metered Quantity (b} The differences between the and the Expected Demand Quantity of all /IMEM Metered Quantity and the Expected Load Curtailment Resources which have Hour- Demand Quantity of all IMEM Load Ahead Schedules or in-Day Dispatch Instructions Curtailment Resources which have in that ‘MEM Trading Interval and for which the Day-Ahead Schedules or /n-Day IMEM Customer is the IMEM Network Service Dispatch Instructions in that IMEM Provider. Trading Interval and for which the IMEM Customer is the MEM Network Service Provider. Clause 5.2.8.3 For a Grid IMEM Load Curtailment | For a Grid IMEM Load Curtailment Resource that Resource that does not have a Day- | does not have an Hour-Ahead Schedule or an [n-Day Ahead Schedule or an In-Day Dispatch | Dispatch Instruction for the relevant {MEM Trading instruction for the relevant /MEM Trading | Interval, its iIMEM Trading Quantity shall be interval, its [MEM Trading Quantity shall | determined in accordance with Section 5.2.6. For be determined in accordance with Section | clarity, the /MEM Trading Participant shall not be 5.2.6. For clarity, the {MEM Trading | treated as an [MEM Load Curtailment Resource but Participant shall not be treated as an | as an /MEM Customer for that /MEM Trading Interval IMEM Load Curtailment Resource but as | in the absence of an Hour-Ahead Schedule or an /In- an [MEM Customer for that /MEM Trading | Day Dispatch Instruction. Interval in the absence of a Day-Ahead Schedule or an In-Day Dispatch Instruction. Clause 5.2.8.4 For an {MEM Load Curtailment Resource | For an /MEM Load Curtailment Resource which is not which is not also an (MEM Customer, or also an IMEM Customer, or Embedded IMEM Load === dc2014-05-0010-pages-20.ppm === IMEM RULES REFERENCE Clause 5.2.8.5 Clause 5.2.9.2 Clause 5.2.9.3 ORIGINAL PROVISION Embedded IMEM Load Curtailment Resource, and has an Day-Ahead Schedule or an {n-Day Dispatch Instruction for that IMEM Trading Interval, its MEM Trading Quantity ts determined as its Metered Quantity less its Expected Demand Quaniity. For an Embedded [MEM Load Curtailment Resource that does not have a Day-Ahead Schedule or an /In-Day Dispatch Instruction for that IMEM Trading interval, its IMEM Trading Quantity shalf be zero. The {MEM Operator shall determine the Upwards Resource Variation Quantity or Downwards Resource Variation Quantity of each IMEM Load Curtailment Resource with a Day-Ahead Schedule or an [n-Day Dispatch instruction in each {MEM Trading Interval. REVISED PROVISION Curtaiment Resource, and has an Hour-Ahead Schedule or an {n-Day Dispatch Instruction for that [MEM Trading Interval, its IMEM Trading Quantity is determined as its Metered Quantity less its Expected Demand Quantity. For an Embedded IMEM Load Curtailment Resource that does not have an Hour-Ahead Schedule or an In- Day Dispatch Instruction for that [MEM Trading interval, its IMEM Trading Quantity shalt be zero. The MEM Operator shall determine the Upwards Resource Variation Quantity or Downwards Resource Variation Quantity of each [MEM Load Curtailment Resource with an Hour-Ahead Schedule or an In-Day Dispatch instruction in each [MEM Trading interval. For a Grid {MEM Load Curtailment Resource that does not have a Day- Ahead Schedule or an In-Day Dispatch instruction for the relevant {MEM Trading interval, its variation quantities shall be determined in accordance with Section 5.2.7. For clarity, the {MEM Trading For a Grid IMEM Load Curtailment Resource that | does not have an Hour-Ahead Schedule or an In-Day Dispatch Instruction for the relevant /MEM Trading Interval, its variation quantities shail be determined fn accordance with Section 5.2.7. For clarity, the IMEM Trading Participant shali not be treated as an (MEM Load Curtailment Resource but as an /MEM === dc2014-05-0010-pages-21.ppm === IMEM RULES REFERENCE Clause 5.3.1.1 | —__. Clause 5.3.2.2 Clause 5.4.1.4 (b) ORIGINAL PROVISION Participant shall not be treated as an IMEM Load Curtailment Resource but as an [MEM Customer for that IMEM Trading interval in the absence of a Day-Ahead Schedule or an {/n-Day Dispatch Instruction The price used for settlement purposes shall be the MEM Day-Ahead Price for an {MEM Trading Interval determined under Section 3.4.4 for that IMEM Trading Interval. REVISED PROVISION Customer for that IMEM Trading Interval in the absence of an Hour-Ahead Schedule or an In-Day Dispatch Instruction The price used for settlement purposes shal! be the IMEM Hour-Ahead Price for an [MEM Trading Interval determined under Section 3.4.4 for that {MEM Trading Interval. Ahead Price was The MEM Base Variation Price for an IMEM Trading Interval shall be the (MEM Day-Ahead Price for that IMEM Trading interval, except that if no IMEM Day- determined in accordance with Section 3.4.4, it shalf be the average (MEM Day-Ahead Price over all (MEM Trading Intervals tn the thirty (30) days prior to the relevant (MEM Trading interval. lts Upwards Dispatch Cost Recovery Amount, which shail be calculated for each {MEM Resource with an In-Day Dispatch Instruction and an Cffer Price exceeding the ‘MEM Day-Ahead Price and is the product of its Upward The (MEM Base Variation Price for an IMEM Trading interval shall be the [MEM Hour-Ahead Price for that {MEM Trading Interval, except that if no /MEM Hour- Ahead Price was determined in accordance with Section 3.4.4, it shall be the average MEM Hour- Ahead Price over all {MEM Trading Intervals in the thirty (30} days prior to the relevant /MEM Trading interval. Its Upwards Dispatch Cost Recovery Amount, which shall be calculated for each {MEM Resource with an In-Day Dispatch {nstruction and an Offer Price exceeding the /MEM Hour-Ahead Price and is the product of the lesser of its MEM Trading Quantity and the excess of its Dispatched Quantity over its Hour- === dc2014-05-0010-pages-22.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION Dispatched Quantity plus its Variation Tolerance, and the difference between its Offer Price and the IMEM Day-Ahead Price. Clause 5.4.1.7 Clause 5.4.4.2 (d) [New Provision] [New Provision} Ahead Schedule, and the difference between its Offer REVISED PROVISION Price and the (MEM Hour-Ahead Price. The Upwards Resource Variation Penalty Amount and Downwards Resource Variation Penalty Amount of the PSALM Portfolio shall always be zero (Q}. The Upwards Resource Variation Penalty Amount and Downwards Resource Variation Penalty Amount of an IMEM Resource with an intermittent energy source identified under Clause 2.3.2.6 shall also always be zero (Q). Its share from the Resource Dispatch Compensation Recovery Amounts calculated for the PSALM Portfolio or IMEM Resources with intermittent energy sources identified under Clause 2.3.2.6. Clause 5.4.4.3 Clause 5.4.4.4 [New Provision} Any Resource Dispatch Compensation Recovery Amount calculated for the PSALM Porffolio for an IMEM Trading Interval shall be allocated to all IMEM Customers proportionate to their IWEM Trading Quantity during the same /MEM Trading Interval. [New Provision] Any Resource Dispatch Compensation Recovery Amount calculated for an IMEM Resource with intermittent energy source identified under Ciause 2.3.2.6 for an (MEM Trading Interval shall be allocated to the IMEM Customers proportionate ta their Downwards Customer Variation Quantity during the === dc2014-05-0010-pages-23.ppm === IMEM RULES REFERENCE ORIGINAL PROVISION REVISED PROVISION same /MEM Trading Interval except for the IMEM Customer who is also the (MEM Network Service Provider of the [MEM Resource. The allocator of the IMEM Customer who is also the IMENM Network Service Provider of the [MEM Resource shall be based on the difference between the excess of the Scheduled Quantity over the Metered Quantity of the IMEM Resource and the excess of its Expected Demand Quantity over tts IMEM Adjusted Metered Quantity. oe i | il, sus 0 2 261 itm & 06 —_