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ee Se Republic of the Philippines
Se mg ~=DEPARTMENT OF ENERGY
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DEPARTMENT CIRCULAR NO.__0C20/7- 04 - 0003 ”

ADOPTING THE WHOLESALE ELECTRICITY SPOT MARKET (WESM) MARKET
MANUAL ON GUIDELINES GOVERNING THE CONSTITUTION OF PEM BOARD
COMMITTEES AND ITS FURTHER AMENDMENTS

WHEREAS, Sections 30 and 37(f) of the Electric Power Industry Reform Act (EPIRA)
provides that the DOE, jointly with the electric power industry participants, shall
establish the Wholesale Electricity Spot Market (ESM) and formulate the detailed
rules governing the operations thereof;

WHEREAS, on 28 June 2002, the DOE, with the endorsement of the electric power
industry participants, promulgated the WWESM Rules through Department Circular No.
DC2002-06-003;

WHEREAS, any changes, amendments, and modifications to the WESM Rules
including its Market Manuals shall be undertaken in accordance with the provisions
of Chapter 8 thereof;

WHEREAS, on 27 April 2016, the Rules Change Committee (RCC) received the
Technical Committee’s (TC) proposed amendments to the WESM Market Manual,
particularly on the Guidelines Governing the Constitution of PEM Board Committees;

WHEREAS, the TC’s proposal sought to update the said Guidelines Governing the
Constitution of PEM Board Committees for consistency with the guidelines of the
DOE on appropriate referencing of entities and to clarify provisions regarding the
conduct of business, voting and procedures of the TC;

WHEREAS, on 01 June 2016, the Rules Change Committee (RCC) during its 115"
RCC Meeting discussed the said proposal, which thereafter approved its publication
in the WESM website to solicit comments from market participants and other
interested parties;

WHEREAS, on 03 August 2016, the RCC during its 117° RCC Meeting deliberated
on the proposal giving due course to the comments received from market
participants and the DOE, and thereafter, it finalized and approved the proposal for
endorsement to the PEM Board;

WHEREAS, on 29 November 2016, after due evaluation and deliberation, the PEM
Board during its 121* PEM Board Meeting approved for endorsement to the DOE
the above stated proposed amendments, with minor modifications, to the Guidelines
Governing the Constitution of PEM Board Committees;

Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, Philippines
Tels.: (Trunks) 840-1401 to 40; Fax 840-2067; 840-2236; 840-2067 (Domestic); 632-840-2173; 632-840-2236; 632-840-2067
(International)

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WHEREAS, on 09 December 2016, the above stated PEM Board-approved
amendments to the Guidelines Governing the Constitution of PEM Board
Committees were submitted to the DOE for final approval, in compliance with
Chapter 8 of the WESM Rules;

WHEREAS, the DOE reviewed the said PEM Board-approved proposal, and deems
it appropriate and consistent with the WESM Rules and the objectives of the WESM;
and

NOW THEREFORE, pursuant to its authority under the EPIRA and WESM Rules,
the DOE hereby adopts, issues, and promulgates the following Market Manual and
its further amendments:

Section 1. Amendments to the Market Manual. Pursuant to DOE Circular No.
DC2015-07-0013 entitled “Adopting Further Amendments to the WESM Rules
(Procedure for Changes to the WESM Rules and Market Manuals),” the WESM
Market Manual on “Guidelines Governing the Constitution of PEM Board Committees
presented as “Annex A” to this Circular is hereby approved and adopted.

Section 2. Separability Clause. If for any reason, any section or provision of this
Circular is declared unconstitutional or invalid, such parts not affected shall remain
valid and subsisting.

Section 3. Effectivity. This Circular shall take effect after fifteen (15) days following
the completion of their publication either in the Official Gazette or two (2) newspapers
of general circulation in the Philippines, and shall remain in effect until otherwise
revoked.

Issued this March 2017 at the DOE, Energy Center, Rizal Drive, Bonifacio

Global City, Taguig City, Metro Manila.
os fl

re Cy DEPARTMENT OF ENERGY
IN REPLYING PLS. CITE

AGC-170016

wa

APR 20 2017

2

EE EEEEEE=—reree
DC2o17 - 04-0003 Adopting the WESM Market Manual on Guidelines Governing the Constitution of PEM Board
Committees and Its Further Amendments