=== ocr-pages-01.ppm ===
RULE 5
COMPOSITE TEAM

Section 19. Creation of Composite Team. For the purpose of implementing the
provisions of this Rules, a Composite Team, chaired by DOE Assistant Secretary
duly designated by the Secretary, is hereby created with the following members:

(a)

(b)

(c)
(d)

The

DOE Renewable Energy Management Bureau (REMB) Director or his
designated representative;

DOE Electric Power Industry Management Bureau (EPIMB) Director or his
designated representative;

NREB Chairman or his/her designated representative; and
Representative from the RE Registrar.

DOE Legal Services shall provide legal assistance and support to the

Composite Team in cases of disputes arising, from compliance under this Rules or
such other legal issues that may be referred to Legal Services in connection with
the interpretation of this Rules.

The Technical Services Management Division of REMB shall provide technical
and administrative support to the Composite Team.

Section 20. Responsibilities of the Composite Team. The Composite Team shall:

(a)

(b)

(c)

(d)

(e)

Compute the minimum annual RPS requirement per Mandated Participant;

Submit a Compliance Report of Mandated Participants after the review and
validation of the information from the RE Registrar to the DOE Secretary,
ERC and NREB;

Establish the procedure and criteria for evaluating compliance by Mandated
Participants including any requests for suspension or carry-over of
compliance by Mandated Participants;

Recommend the suspension of compliance or the carryover of compliance to
the RPS of any Mandated Participant;

Review annually the cost implication of the minimum annual RPS
requirement, nationally and per Mandated Participant annually; and

Page 13

=== ocr-pages-02.ppm ===
(f) Perform such other responsibilities and roles as directed by the DOE
through a separate issuance.

RULE 6
COMPLIANCE MONITORING

Section 21. Submission of Annual REC Report. The submission of the Annual
REC Report by the RE Registrar to the Composite Team shall be within the first
quarter of each calendar year after the establishment of the RE Registrar. The
Annual REC Report shall serve as the basis for the Composite Team for the
Compliance Report. The DOE shall certify the level of compliance of each
Mandated Participant.

Section 22. Contents of the Compliance Report. The Compliance Report of the
Composite Team based on the Annual REC Report shall contain, among others,
the following information:

(a) Compliance level of each Mandated Participant;
(b) Total volume of RECs generated;
(c) Total shortfall or excess in RECs, if any; and
(d) Other information that may be required by the DOE.
RULE 7

PROHIBITED ACTS AND SANCTIONS
Section 23. Prohibited Act. Pursuant to Section 35(a) of the RE Act, non-
compliance or violation of the RPS On-Grid Rules by any Mandated Participant
under this Circular shall be subject to the administrative penalties herein

provided.

Section 24. Penalties for Non-Compliance. Consistent with RE Act, its IRR and
this Rules, the following administrative and criminal sanctions may be imposed:

a. Administrative Liability. The DOE may impose a penalty ranging from a
minimum of One Hundred Thousand Pesos (R100,000.00) to Five Hundred
Thousand Pesos (P500,000.00) or, upon its discretion, may recommend to
the appropriate government agency for the revocation of the Mandated
Participant's license, franchise or authority to operate.

Page 14

=== ocr-pages-03.ppm ===
Criminal Liability. In accordance with Section 36 (Penalty Clause) and
Section 35 (Prohibited Acts) of the RE Act, any person who willfully fails to
comply with or violates the RPS On-Grid Rules shall be imposed with the
penalties provided under the RE Act. Any person who willfully aids or
abets the commission of such failure or violation or who causes the
comunission of any such act by another shall be liable in the same manner as
the principal.

In the case of association, partnership or corporations, the penalty shall be
imposed on the partner, president, chief operating officer, chief executive
officer, directors or officers responsible for the violation.

The failure to comply with or violation of the RPS On-Grid Rules, upon
conviction thereof, shall suffer the penalty of imprisonment of one (1) year
to five (5) years, or a fine ranging from a minimum of One Hundred
Thousand Pesos (100,000.00) to One MHundred Million Pesos
(F100,000,000.00), or twice the amount of damages caused or costs avoided
for non-compliance, whichever is higher, or both upon the discretion of the
court.

This is without prejudice to the penalties provided for under existing
environmental regulations prescribed by the DENR or any other concerned
government agency.

The DOE Rules of Practice and Procedure shall be applicable to cases for the
imposition of the foregoing penalties.

In no case shall a fine or penalty imposed on a Mandated Participant be charged
to any of its customers or be considered a substitute for compliance, unless such
fines or penalties are provided as a future form of compliance and provide the
least cost alternative to the Mandated Entity.

Section 25. Suspension or Carry-Over of Compliance. The DOE shall, in any
given year, suspend or carry-over_compliance of the Mandated Participant with
the Annual RPS Requirement, as the case may be, under any of the following
conditions:

2)

Inadequate supply of the Eligible RE Facilities to meet the annual
requirement;

Inadequate supply of RECs to meet the annual requirement;

Unavailable capacity at both the transmission and relevant distribution
network to transport the Eligible RE Facilities to the grid;

CS eee
Page 15

=== ocr-pages-04.ppm ===
d. Occurrence or existence of Force Majeure affecting or preventing the

Mandated Participant from complying with the annual requirements, as the
case may be; or

e. Such other consideration or condition, economic or otherwise, which is
outside the control of the Mandated Participant as may be determined by
the Composite Team.

In all cases, the Mandated Participant seeking suspension of compliance must
demonstrate to the Composite Team that the condition was beyond its control
and that it exerted all reasonable efforts to comply, notwithstanding the
condition, including, but not limited to, a statement from the RE Registrar of the
actual conditions reflecting any of the above circumstances. Such a statement

shall be sufficient to prove that the situation is beyond the control of the
Mandated Participant.

Upon recommendation of the Composite Team, the DOE may, in lieu of
suspending compliance of the Mandated Participant, allow the Mandated
Participant to carry over the compliance shortfall for a period of 3 years. The
request for suspension of compliance of the Mandated Participant shall be

deemed approved by the DOE after the lapse of 60 days from date of its
submission.

Failure of the Mandated Participants to comply with the shortfall by the end of
the carry-over period granted shall subject the Mandated Participant to the
administrative liability under Section 24(a), Rule 7 of this Rules.

RULE 8
TRANSITORY AND OTHER PROVISIONS

Section 26. Transition Period. A Transition Period of one (1) year from the
commencement of operations of the RE Market or the effectivity of this Rules,
whichever is earlier, is hereby provided to ensure an orderly, efficient and
effective imposition of the RPS On-Grid Rules. The said period will allow
the Mandated Participants to prepare all the information and data required in the
establishment of the baseline to be determined by the DOE, prepare their
respective compliance mechanisms, as well as prepare the consumers for the
impact of the RPS On-Grid Rules.

For such purposes, all Mandated Participants are hereby directed to commence
planning for their respective RPS compliance requirements from effectivity of
this Circular.

Page 16
=== ocr-pages-05.ppm ===
Upon the lapse of the Transition Period, mandatory compliance with the RPS
shall commence.

Section 27. Reportorial Requirements. The DOE shall establish a reliable
database to serve as the baseline in calculating and monitoring the compliance of
the Mandated Participants. To this end, the DUs, the Generators and the National
Grid Corporation of the Philippines (NGCP) are mandated to submit the
following documents within 6 months from the effectivity of this Circular:

(a) For DUs within the period required by the DOE:

i. Purchases from all Generation Facilities, from the Power Supply
Agreements or through the WESM;

ii. For purchases from the NPC or the Power Sector Assets and Liabilities
Management Corporation (PSALM), all purchases shall be segregated
into RE and non-RE based resources on the proportionate share of the
non-value added tax allocation from NPC or PSALM: and

iil, Such other reports that the DOE may require.

(b) For Generation Companies in relation to their sales to directly connected
customers, all Generation Companies shall be required to submit data on
sales to their directly connected customers for the period to be identified by
the DOE;

(c) The NGCP shall submit for approval of the DOE the following:

i. A committed Transmission Development Plan (TDP) that identifies
network expansion or rehabilitation to enable delivery of new RE
resources to the grid that will include the total investments required to
support the RE industry;

li. A list of transmission services agreements and other related transmission
services signed between the RE developer and NGCP; and

iii. A technical study or evaluation on the required incremental ancillary
services needed to provide to maintain a reliable power service
delivery with the entry of new RE technologies;

(d) Each Mandated Participant shall submit to the DOE a report containing
total sales, Net Electricity Sales and eligible RECs thereof; and

TT oeooOoOoOmVmla es

Page 17

=== ocr-pages-06.ppm ===
(e) Such other reports from any person or entity as may be required by the
DOE.

Section 28. Responsibilities of NGCP. In accordance with Section 27 of this
Rules, NGCP shall implement the TDP approved by the DOE and procure the

necessary ancillary services to maintain a reliable transmission network and
system operations.

Section 29. Information, Education and Communication Activities. Pursuant to
Section 31, Rule 10 of the RE Act IRR, the DOE, together with NREB, shall
develop and implement a comprehensive information, education and
communication activities that are designed to increase the public awareness and

appreciation of the RPS On-Grid Rules and the RE and electric power industry in
general.

Section 30. Regulatory Support. The ERC shall provide regulatory support for
the effective implementation of this Circular.

Section 31. Separability Clause. If any provision of this Circular is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain
valid and subsisting.

Section 32. Repealing Clause. All previous issuances, rules and regulations
inconsistent with this Circular are hereby repealed, amended or modified
accordingly.

Section 31. Effectivity. This Circular shall take effect immediately after
publication in at least two (2) newspapers of general circulation.

Secretary

Pe

E-AGC-17005996
Issued on pFe 22 2647 at Energy Center, Rizal Drive wv iii
Bonifacio Global City, Taguig City.

Page 18
=== ocr-pages-07.ppm ===
Distribution Utility No. 1

ANNEX A 1. Percentage of FIT plants: Represents the estimated share of total generation sales
1. Percentage of FIT coming from FIT eligible plants.
plants 2. Growth Rate: Represents the annual growth rate in sales for the Distribution Utility
(DU)
3, Annual Increment: Represents the annual increase in the RPS requirement per the
2. Growth Rate REC COMPLIANCE ACCOUNT RPS Rules.

3. Annual Increment 4. Energy Sales MWHs: Represents the actual sales level for the DU in 2018. The sales

level is increased each year based on the Growth Rate (2).

9. RECs

5, 89S 7. RECS 8. RECs a Surrendered for | 7 5. RPS Requirement (MWHs): The RPS requirement starts out as the Percentage of FIT
Requirement | 6. Beginning Allocated from from PSAs with Compliance 10. Ending | 11.Additional 12. Additional plants (1) times the prior years Energy Sales (4) plus the annual increment.
Year 4. Energy Sales MWHs (MWHs) Balance FIT new RE Balance RECsneeded Capacityneeded Therefore, for the year 2020 (n) the RPS requirement is 3% plus 1% times the Energy

Sales for 2018 (4% X 22,470,710 = 898,828) since the rule defines n-1 as year 0. Each

2018 0 22,470,710 - - 674,121 210,240 0 884,361 - year after 2020 the percentage is increased by the annual increment. (4%, 5%,6%....)

2019 transition 23,144,831 - 884,361 674,121 210,240 1,768,723 - and it is multiplied by the prior years energy sales.

2020 1 23,839,176 898,828 1,768,723 674,121 210,240 898,828 1,754,255 6. Beginning Balance: Represents the level of RECs in the Compliance Account at the

2021 2 24,554,351 1,191,959 1,754,255 674,121 210,240 1,191,959 1,446,658 2 start of the year.

2022 3 25,290,982 1,473,261 1,446,658 674,121 210,240 1,473,261 857,758 s P 7. RECs Allocated from FIT: Represents the percentage of FIT plants (1) times the

2023 4 26,049,711 1,770,369 857,758 674,121 238,489 1,770,369 - 28,249 g _ Energy Sales for 2018. The number is the same for each year under the assumption

2024 5 26,831,203 2,083,977 : 674,121 1,409,856 2,083,977 - 1,171,366 371 ‘that there will be no additional FIT beyond the existing plants.

2025 6 27,636,139 2,414,808 7 674,121 1,740,687 2,414,808 330,831 105 8. RECs issued from FSAS with new RE: This represents RECs from PSAs with RE plants

2026 5 28,465,223 2,763,614 : 674,121 2.089.493 2.763.614 : 348,806 11 that have come on line after the affectivity of the RE Law. After 2022 it represents the

2027 8 29,319,180 3.131.175 : 674.121 2 457.053 2.439.175 ; 967.661 i level of new RECs needed to have the ending balance be zero after the RECs needed
RE: ae J ree aa f for compliance are surrender.

ssi ’ 30,198,755 3,518,302 . 674,121 2,844,180 3,518,302 . 387,127 123 9. RECs Surrendered for Compliance: Represents the RPS requirement for a given

2029 10 31,104,718 3,925,838 E 674,121 3,251,717 3,925,838 é 407,537 125 year, The DU must surrender the number of RECs equal to the requirement for that

2030 11 32,037,859 4,354,660 - 674,121 3,680,539 4,354,660 - 428,822 136 year.

2031 12 32,998,995 4,805,679 674,121 4,131,558 4,805,679 - 451,018 143-10. Ending Balance: Represents the balance in the REC Compliance Account at the

2032 13 33,988,965 5,279,839 - 674,121 4,605,718 5,279,839 - 474,160 150 _ end of the year.

2033 14 35,008,634 5,778,124 - 674,121 5,104,003 5,778,124 : 498,285 158 11. Additional RECs needed: Represents the number of additional RECs that need to

2034 15 36,058,893 6,301,554 674,121 5,627,433 6,301,554 - 523,430 166 be augured in a given years so that the balance in the account is equal to the number

2035 16 37,140,660 6,851,190 674,121 6,177,068 6,851,190 . 549,636 174 Of RECs that need to be surrendered in a given year. The simulation assumes that the

2036 17 38,254,879 7,428,132 , 674,121 6,754,011 7,428,132 z 576,942 183 RECs acquired in a given year will continue in future years based on a long term

2037 18 39,402,526 8,033,525 : 674,121 7,389,403 8,033,525 . 605,393 19z: | TONE SAP ASSEN SN NINE RE DM.

2038 19 40,584,602 8,668,556 674,121 7,994,434 8,668,556 : 635,031 201 12. Additional! Capacity needed: Represents the capacity needed to produce the leve!

2039 20 41,802,140 9,334,458 674,121 8,660,337 9,334,458 . 665,903 pag, ; ORE nett a) at an eeeertcmpeey acter Of 2.

2040 21 43,056,204 10,032,514 674,121 9,358,392 10,032,514 698,055 221

=== ocr-pages-08.ppm ===
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040

Year

0
transition

wwmonoaouwurawn ee

NN bree » a
PSbetiahbBanrs

Distribution Utility No. 2

1. Percentage of FIT
plants

2. Growth Rate

3. Annual Increment

4. Energy Sales MWHs

2,920,596
3,037,420
3,158,916
3,285,273
3,416,684
3,553,351
3,695,485
3,843,305
3,997,037
4,156,919
4,323,195
4,496,123
4,675,968
4,863,007
5,057,527
5,259,828
5,470,221
5,689,030
5,916,591
6,153,255
6,399,385
6,655,360
6,921,575

5. RPS
Requirement
(MWH#s)

116,824
157,946
197,116
239,168
284,268
332,594
384,330
439,674
498,830
562,015
629,457
701,395
778,081
859,780
946,769
1,039,342
1,137,806
1,242,484
1,353,716
1,471,859
1,597,287

Balance

87,618
175,236
146,030

75,702

7. RECs
6. Beginning Allocated from from PSAs with

FIT

87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618
87,618

ANNEXA

REC COMPLIANCE ACCOUNT

new RE

33,797
151,550
196,650
244,976
296,713
352,056
411,212
474,398
541,839
613,777
690,463
772,162
859,151
951,724

1,050,188
1,154,866
1,266,098
1,384,241
1,509,669

9. RECs

8.RECs Issued Surrended for

Compliance

116,824
157,946
197,116
239,168
284,268
332,594
384,330
439,674
498,830
562,015
629,457
701,395
778,081
859,780
946,769
1,039,342
1,137,806
1,242,484
1,353,716
1,471,859
1,597,287

10. Ending
Balance

87,618
175,236
146,030
75,702

11.
Additional

RECs needed

33,797
117,753
45,100
48,326
51,737
55,344
59,156
63,185
67,442
71,938
76,686
81,699
86,989
92,573
98,464
104,678
111,232
118,142
125,428

12. Additional

Capacity

needed

11
37
14
15
16
18
19
20
21
23

| 1. Percentage of FIT plants: Represents the estimated share of total

24)

26
28
29
31
33
35
37
40

generation sales coming from FIT eligible plants.

| 2. Growth Rate: Represents the annual growth rate in sales for the
| Distribution Utility (DU)

3. Annual increment: Represents the annual increase in the RPS
requirement per the RPS Rules.

4. Energy Sales MWHs: Represents the actual sales level for the DU in 2018.
The sales level is increased each year based on the Growth Rate (2).

5. RPS Requirement (MWHSs): The RPS requirement starts out as the
Percentage of FIT plants (1) times the prior years Energy Sales (4) plus the
annual increment. . Therefore, for the year 2020 (n) the RPS requirement
is 3% plus 1% times the Energy Sales for 2018 (4% X 2,920,596 = 116,824)
since the rule defines n-1 as year o. Each year after 2020 the percentage is
increased by the annual increment. (4%, 5%,6%,...) and it is multiplied by

_ the prior years energy sales.
_ 6, Beginning Balance: Represents the level of RECs in the Compliance

Account at the start of the year.

7. RECs Allocated from FIT: Represents the percentage of FIT plants (1)
times the Energy Sales for 2018. The number is the same for each year
under the assumption that there will be no additional FIT beyond the
existing plants.

8. RECs issued from PSAs with new RE: This represents RECs from PSAs with
RE plants that have come on line after the affectivity of the RE Law. After
2022 it represents the level of new RECs needed to have the ending
balance be zero after the RECs needed for compliance are surrender.

9, RECs Surrendered for Compliance: Represents the RPS requirement for a
given year. The DU must surrender the number of RECs equal to the
requirement for that year,

10. Ending Balance: Represents the balance in the REC Compliance Account
at the end of the year.

11. Additional RECs needed: Represents the number of additional RECs that
need to be augured in a given years so that the balance in the account is
equal to the number of RECs that need to be surrendered in a given year.
The simulation assumes that the RECs acquired in a given year will continue
in future years based on a long term Power Supply Agreement with an
eligible RE plant.

12. Additional Capacity needed: Represents the capacity needed to
produce the level of RECs needed (11) at an assumed capacity factor of
36%.
=== ocr-pages-09.ppm ===
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040

Year

transition

own nua Wn

NNR Re Bee a
PSBSBaEatnneRaoRES

Distribution Utility No. 3

1. Percentage of FIT
plants

2. Growth Rate

3. Annual Increment

4, Energy Sales MWHs

2,165,760
2,230,733
2,297,655
2,366,585
2,437,582
2,510,710
2,586,031
2,663,612
2,743,520
2,825,826
2,910,601
2,997,919
3,087,856
3,180,492
3,275,907
3,374,184
3,475,409
3,579,672
3,687,062
3,797,674
3,911,604
4,028,952
4,149,820

5. RPS
Requirement
(MWHs)

86,630
114,883
141,995
170,631
200,857
232,743
266,361
301,787
339,099
378,378
419,709
463,178
508,879
556,904
607,353
660,328
715,934
774,283
835,488
899,669
966,948

6. Beginning
Balance

64,973
129,946
108,288

58,378

7. RECs

Allocated from from PSAs with

FIT

64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973
64,973

ANNEX A

REC COMPLIANCE ACCOUNT

9. RECs

8.RECs issued Surrended for

new RE

18,644
105,658
135,884
167,770
201,388
236,814
274,126
313,405
354,736
398,206
443,906
491,931
542,380
595,355
650,962
709,310
770,515
834,696
901,976

Compliance

86,630
114,883
141,995
170,631
200,857
232,743
266,361
301,787
339,099
378,378
419,709
463,178
508,879
556,904
607,353
660,328
715,934
774,283
835,488
899,669
966,948

10. Ending
Balance

64,973
129,946
108,288
58,378

11.
Additional

RECs needed

18,644
87,014
30,226
31,886
33,618
35,426
37,312
39,279
41,331
43,470
45,700
48,025
50,449
52,975
55,607
58,349
61,205
64,181
67,280

12. Additional

Capacity

needed

28
10
10
11
11
12
12
13
4
14

16
17
18
19
19
20
21

1, Percentage of FIT plants: Represents the estimated share of total
generation sales coming from FIT eligible plants.

2. Growth Rate: Represents the annual growth rate in sales for the
Distribution Utility (DU)

3. Annual Increment: Represents the annual increase in the RPS
requirement per the RPS Rules.

4. Energy Sales MWHs: Represents the actual sales level for the DU in
2018. The sales level is increased each year based on the Growth Rate (2).
5. RPS Requirement (MWHs): The RPS requirement starts out as the
Percentage of FIT plants (1) times the prior years Energy Sales (4) plus the
annual increment. . Therefore, for the year 2020 (n) the RPS requirement
is 3% plus 1% times the Energy Sales for 2018 (4% X 2,165760 = 86,630)
since the rule defines n-1 as year 0. Each year after 2020 the percentage Is
increased by the annual increment. (4%, 5%,6%,...) and it is multiplied by
the prior years energy sales.

6. Beginning Balance: Represents the level of RECs in the Compliance
Account at the start of the year.

7. RECs Allocated from FIT: Represents the percentage of FIT plants (1)
times the Energy Sales for 2018. The number is the same for each year
under the assumption that there will be no additional FIT beyond the
existing plants.

8. RECs issued from PSAs with new RE: This represents RECs from PSAs
with RE plants that have come on line after the affectivity of the RE Law.
After 2022 it represents the level of new RECs needed to have the ending
balance be zero after the RECs needed for compliance are surrender.

9. RECs Surrendered for Compliance: Represents the RPS requirement for
a given year. The DU must surrender the number of RECs equal to the
requirement for that year.

10. Ending Balance: Represents the balance in the REC Compliance
Account at the end of the year.

11. Additional RECs needed: Represents the number of additional RECs
that need to be augured in a given years so that the balance in the
account is equal to the number of RECs that need to be surrendered ina
given year. The simulation assumes that the RECs acquired in a given year
will continue in future years based on a long term Power Supply
Agreement with an eligible RE plant.

12. Additional Capacity needed: Represents the capacity needed to
produce the level of RECs needed (11) at an assumed capacity factor of
36%.
=== ocr-pages-10.ppm ===
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040

Year

0
transition

wmonouwhwn

PSGaUCnRnesGRres

Distribution Utility No. 4

1. Percentage of FIT
plants

2. Growth Rate

3. Annual Increment

4, Energy Sales
MWHs

113,643
120,461
127,689
135,350
143,471
152,079
161,204
170,876
181,129
191,997
203,517
215,728
228,671
242,392
256,935
272,351
288,692
306,014
324,375
343,837
364,467
386,335
409,515

5. RPS
Requirement
(MWHs)

4,546

6,384

8,121
10,043
12,166
14,508
17,088
19,924
23,040
26,457
30,202
34,301
38,783
43,679
49,023
54,852
61,203
68,119
75,644
83,827
92,720

6. Beginning Allocated from from PSAs with

Balance

3,409
6,819
5,682
2,707

7. RECs

FIT

3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409
3,409

ANNEX A

REC COMPLIANCE ACCOUNT

8. RECs Issued

new RE

2,005

6,634

8,757
11,098
13,678
16,515
19,630
23,048
26,793
30,891
35,373
40,270
45,614
$1,442
57,793
64,703
72,235
80,418
89,311

9. RECs
Surrended for
Compliance

4,546

6,384

8,121
10,043
12,166
14,508
17,088
19,924
23,040
26,457
30,202
34,301
38,783
43,679
49,023
54,852
61,203
68,119
75,644
83,827
92,720

10. Ending
Balance

3,409
6,819
5,682
2,707

11.
Additional

RECs needed

12. Additional

Capacity
needed

WWNNNNN DNR Be ee RP eR Re

1. Percentage of FIT plants: Represents the estimated share of total
generation sales coming from FIT eligible plants.

2. Growth Rate: Represents the annual growth rate in sales for the
Distribution Utility (DU)

3. Annual Increment: Represents the annual increase in the RPS
requirement per the RPS Rules.

4. Energy Sales MWHs: Represents the actual sales level for the DU in
2018. The sales level is increased each year based on the Growth Rate (2).
5. RPS Requirement (MWHs): The RPS requirement starts out as the
Percentage of FIT plants (1) times the prior years Energy Sales (4) plus the
annual increment. . Therefore, for the year 2020 (n) the RPS requirement
is 3% plus 1% times the Energy Sales for 2018 (4% X 113,643 = 4,546)
since the rule defines n-1 as year 0. Each year after 2020 the percentage is
increased by the annual increment. (4%, 5%,6%,...) and it is multiplied by
the prior years energy sales.

6. Beginning Balance: Represents the level of RECs in the Compliance
Account at the start of the year.

7. RECs Allocated from FIT: Represents the percentage of FIT plants (1)
times the Energy Sales for 2018. The number is the same for each year
under the assumption that there will be no additional FIT beyond the
existing plants.

8. RECs issued from PSAs with new RE: This represents RECs from PSAs
with RE plants that have come on line after the affectivity of the RE Law.
After 2022 it represents the level of new RECs needed to have the ending
balance be zero after the RECs needed for compliance are surrender.

9, RECs Surrendered for Compliance: Represents the RPS requirement for a
given year. The DU must surrender the number of RECs equal to the
requirement for that year.

10. Ending Balance: Represents the balance in the REC Compliance
Account at the end of the year.

11. Additional RECs needed: Represents the number of additional RECs
that need to be augured in a given years so that the balance in the account
is equal to the number of RECs that need to be surrendered in a given year.
The simulation assumes that the RECs acquired in a given year will
continue in future years based on a long term Power Supply Agreement
with an eligible RE plant.

12. Additional Capacity needed: Represents the capacity needed to
produce the level of RECs needed (11) at an assumed capacity factor of
36%.
=== ocr-pages-11.ppm ===
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040

Year

transition

COON aur wn ee

Nye ee ee ee
PFSBSaetanrares

Distribution Utility No. 5

ANNEX A

1. Percentage of FIT
plants

2. Growth Rate

3. Annual Increment

Surrended for

5. RPS 7.RECs 8. RECs Issued 11. ‘12. Additional
Requirement | 6. Beginning Allocated from from PSAs with Compliance 10. Ending | Additional — Capacity

4, Energy Sales MWHs (MWHs} Balance FIT new RE Balance RECsneeded needed
133,453 : : 4,004 : 0 4,004
140,126 . 4,004 4,004 8,007
147,132 5,338 8,007 4,004 5,338 6,673 ;
154,489 7,357 6,673 4,004 ‘ 7,357 3,320 :
162,213 9,269 3,320 4,004 1,946 9,269 . 1,946 1
170,324 11,355 : 4,004 7,351 11,355 : 5,405 2
178,840 13,626 4,004 9,622 13,626 : 2,271 1
187,782 16,096 4,004 12,092 16,096 2,470 1
197,171 18,778 4,004 14,775 18,778 ; 2,683 1
207,029 21,689 4,004 17,685 21,689 : 2,911 1
217,381 24,844 : 4,004 20,840 24,844 3,155 1
228,250 28,260 ‘ 4,004 24,256 28,260 3,416 1
239,662 31,955 4,004 27,951 31,955 3,695 1
251,646 35,949 4,004 31,946 35,949 3,994 1
264,228 40,263 4,004 36,260 40,263 ; 4,314 1
277,439 44,919 4,004 40,915 44,919 . 4,655 1
291,311 49,939 : 4,004 45,935 49,939 : 5,020 2
305,877 55,349 4,004 51,346 55,349 z 5,410 2
321,171 61,175 4,004 $7,172 61,175 . 5,826 2
337,229 67,446 : 4,004 63,442 67,446 - 6,270 2
354,091 74,190 . 4,004 70,187 74,190 6,745 2
371,795 81,441 4,004 77,437 81,441 7,250 2
390,385 89,231 85,227 89,231 7,790 2

1. Percentage of FIT plants: Represents the estimated share of total generation
sales coming from FIT eligible plants.

2. Growth Rate: Represents the annual growth rate in sales for the Distribution
Utility (DU)

3. Annual Increment: Represents the annual increase in the RPS requirement per
the RPS Rules.

4. Energy Sales MWHs: Represents the actual sales level for the DU in 2018. The
sales level is increased each year based on the Growth Rate (2).

5, RPS Requirement (MWHs}: The RPS requirement starts out as the Percentage of
FIT plants (1) times the prior years Energy Sales (4) plus the annual increment. .
Therefore, for the year 2020 (n) the RPS requirement is 3% plus 1% times the
Energy Sales for 2018 (4% X 133,453 = 5,338) since the rule defines n-1 as year o.
Each year after 2020 the percentage is increased by the annual increment. (4%,
5%,6%,...) and it is multiplied by the prior years energy sales.

6. Beginning Balance: Represents the level of RECs in the Compliance Account at
the start of the year.

7. RECs Allocated from FIT: Represents the percentage of FIT plants (1) times the
Energy Sales for 2018. The number is the same for each year under the assumption
that there will be no additional FIT beyond the existing plants.

8. RECs issued from PSAs with new RE: This represents RECs from PSAs with RE
plants that have come on line after the affectivity of the RE Law. After 2022 it
represents the level of new RECs needed to have the ending balance be zero after
the RECs needed for compliance are surrender.

9. RECs Surrendered for Compliance: Represents the RPS requirement for a given
year. The DU must surrender the number of RECs equal to the requirement for that
year.

10. Ending Balance: Represents the balance in the REC Compliance Account at the
end of the year.

11. Additional RECs needed: Represents the number of additional RECs that need
to be augured in a given years so that the balance in the account is equal to the
number of RECs that need to be surrendered in a given year. The simulation
assumes that the RECs acquired in a given year will continue in future years based
on a long term Power Supply Agreement with an eligible RE plant.

12. Additional Capacity needed: Represents the capacity needed to produce the
level of RECs needed (11) at an assumed capacity factor of 36%.