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Republic of the Philippines
DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO. __ 062020 -O2- C004 1

PROVIDING GUIDELINES ON THE PLANNED OUTAGE SCHEDULES OF
POWER PLANTS AND TRANSMISSION FACILITIES AND THE PUBLIC
POSTING OF THE GRID OPERATING AND MAINTENANCE PROGRAM

WHEREAS, Republic Act No. 9136 entitled, "Electric Power Industry Reform Act of
2001", otherwise known as the EPIRA, declares as a policy of the State, among others,
to ensure the quality, reliability, security, and affordability of supply of electric power,
and ensure transparent and reasonable prices of electricity in a regime of free and fair
competition and full public accountability to achieve greater operational and economic
efficiency and enhance the competitiveness of Philippine product in the global market;

WHEREAS, pursuant to section 37 of the EPIRA, the Department of Energy (DOE) is
mandated to supervise the restructuring of the electric power industry as well as
among other things, to:

(a) Formulate policies for the planning and implementation of a comprehensive
program for the efficient supply and economical use of energy consistent with
the approved national economic plan and with the policies of environmental
protection and conservation and maintenance of ecological balance, and
provide a mechanism for the integration, rationalization, and coordination of the
various energy programs of the Government;

(b) Ensure the reliability, quality, and security of supply of electric power;

(c) Develop policies and procedures and, as appropriate, promote a system of
energy development incentives to enable and encourage electric power
industry participants to provide adequate capacity to meet demand including,
among others, reserve requirements;

(d) Formulate and implement programs, including a system of providing incentives
and penalties, for the judicious and efficient use of energy in all energy-
consuming sectors of the economy;

(e) Formulate such rules and regulations as may be necessary to implement the
objectives of EPIRA; and

(f) Exercise such other powers as may be necessary or incidental to attain the
objectives of EPIRA.

WHEREAS, pursuant to Sections 9 and 21 of the EPIRA, the National Transmission
Corporation (TransCo) or its Buyer or Concessionaire is mandated to, among others,
ensure and maintain the reliability, adequacy, security, stability, and integrity of the
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Grid in accordance with the performance standards for the operation and maintenance
of the grid, as set forth in the Grid Code and the Distribution Code;

WHEREAS, Republic Act No. 9511 entitled, “An Act Granting the National Grid
Corporation of the Philippines a Franchise to Engage in the Business of Conveying or
Transmitting Electricity Through High Voltage Back-Bone System of Interconnected
Transmission Lines, Substations, and Related Facilities, and for Other Purposes”,
granted the National Grid Corporation of the Philippines (NGCP) a franchise to
operate, manage and maintain, and in connection therewith, to engage in the business
of conveying or transmitting electricity through high voltage back-bone system of
interconnected transmission lines, substations and related facilities, system
operations, and other activities that are necessary to support the safe and reliable
operation of the transmission system;

WHEREAS, Chapter 6.5 of the Philippine Grid Code (PGC) mandates among others,
the following: the System Operator (SO), in consultation with the Transmission
Network Provider, to prepare the Operating Programs that specify the availability and
aggregate capability of the Generating Plants to meet the forecasted demand, the
Transmission Network Provider, in consultation with the System Operator, to prepare
the Grid Maintenance Programs based on the forecasted demand, Generating Plants’
provisional Maintenance Program, and requests for maintenance schedule and the
Generation Companies to provide the Transmission Network Provider by week 27 of
the current year a provisional Maintenance Program for the three (3) succeeding
years;

WHEREAS, the NGCP annually prepares the Three-Year Grid Operations and
Maintenance Program which contains the proposed three-year planned/maintenance
outages provided by the generating plants, and updates the same on a quarterly basis,
to account for the actual outage that occurred during the identified period;

WHEREAS, Section 2 of the Department Circular No. DC2010-03-0003 provides that
all Generation Companies shall ensure the availability of its generation facilities at all
times subject only to technical constraints duly communicated to the SO in accordance
with existing rules and procedures.

WHEREAS, Section 2.6 of DC2010-03-0003 mandates all Generation Companies to
notify and coordinate with the System Operator of any planned activity such as
shutdown of its equipment in accordance with the PGC;

WHEREAS, Section 3 of DC2010-03-0003 mandates the TransCo or its Buyer or
Concessionaire to submit to the DOE, for consideration, the Grid Operating and
Maintenance Program including any updates and monitor compliance of Generation
Companies, and report to the DOE all power interruption incidents and threats to
system security and reliability;

WHEREAS, a series of Red and Yellow Alert notices were issued by the SO in the
Luzon grid during the summer period of 2019 wherein the grid had low reserve level
due to substantial capacities being derated or on forced outage that lead to the
occurrence of rotating power interruption in Metro Manila and some areas in Luzon;

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WHEREAS, the committed power generation projects and their associated
transmission projects which are expected to augment the thin reserves in Luzon and
Visayas have experienced delays in meeting the target commercial operations;

WHEREAS, the DOE conducted public consultations on the proposed circular in
Davao City and Mandaluyong City on 21 November 2019 and 11 December 2019,
respectively.

NOW, THEREFORE, for and in consideration of the foregoing premises, principles
and mandates of the EPIRA, the DOE hereby issues, adopts and promulgates this
Circular.

SECTION 1. Declaration of Policy and Objectives. In view of protecting public
interest, the DOE hereby directs the adoption of the guidelines for the planned outage
schedules of power plants and transmission facilities, and the publication of the Grid
Operating and Maintenance Program (GOMP) to achieve the following:

1.1 Ensure energy security of the country at all times;

1.2 Enhance transparency, fairness, and accountability in the operation of
generation and transmission systems and distribution facilities in the
country;

1.3 Promote open competition among electric power industry participants;

1.4 Attainment of the objectives of EPIRA to ensure the quality, reliability,
security, and affordability of the supply of electric power in the country; and

1.5 Foster reliable operation and efficient conduct of planned maintenance of
power plants.

SECTION 2. Scope of Coverage. This Circular shall apply to the following electric
power industry participants operating in the Luzon, Visayas, and Mindanao main grids:

2.1 All Generating Companies owning and/or operating Generating Facilities
that are grid-connected or embedded in accordance with DOE DC2019-02-
0003;

2.2 National Grid Corporation of the Philippines (NGCP) as the Transmission
Network Provider (TNP) and System Operator (SO);

2.3 Market Operator (MO); and

2.4 Distribution Utilities connected to the grid.

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SECTION 3. Guidelines on the Planned Outage Schedules of Power Plants and
Transmission Facilities.

3.1 All Generating Companies shall submit three-year planned outage
schedules for their power plants to the NGCP for the Grid Operating
Program (GOP) in accordance with the PGC.

3.2 NGCP and the MO shall device a mechanism to come up with an optimal
generation and transmission planned outage schedule which shall be the
basis of the Grid Operating and Maintenance Program (GOMP); Provided,
that only the hydroelectric power plants shall be allowed to conduct power
plant maintenance during the peak quarter.

3.3 NGCP shall submit to the DOE the GOMP on the last day of October of
each year, for review and approval.

3.4 The DOE, in its review of the resulting reserve profile, shall direct the
necessary adjustments in the generation and transmission planned outage
schedules. NCGP, the MO, and the concerned generating companies shall
be informed accordingly of any changes in the submitted GOMP.

3.5 The first year of the GOMP schedule shall be considered binding, but
proposed shutdown schedules may be adjusted in succeeding quarterly
revisions, but should not result to low operating margin. Any amendment or
change of schedule due to emergency situations of the Generating Facility
shall be approved by SO and DOE shall be notified accordingly.

3.6 The second- and third-year schedules shall be considered indicative and
reference for medium-term power supply and demand outlook.

3.7 The MO shall monitor compliance of concerned electric power industry
participants with the approved GOMP schedule and provide a report to the
DOE.

SECTION 4. Public Posting of Grid Operation Maintenance Program (GOMP).
The NGCP is hereby mandated to post in its website the following:

4.1 Approved annual GOMP immediately after the approval of the DOE; and

42 Amendments to the approved annual GOMP, immediately after
confirmation of such amendments.

The same shall be posted in the websites of DOE, ERC, and MO upon notification of
posting by the NGCP.

SECTION 5. Regulatory Support. The ERC is hereby directed to issue relevant rules
and regulations necessary to implement this policy within sixty (60) calendar days
upon effectivity.

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SECTION 6. Repealing Clause. Nothing in this Circular shall be construed as to
amend, supersede, or repeal any of the mechanism or institutions already existing or
responsibilities already allocated and provided for under any existing laws, rules, or
contracts.

SECTION 7. Separability Clause. If for any reason, any section or provision of this
Circular is declared unconstitutional or invalid, the other parts or provisions hereof
which are not affected thereby shall continue to be in full force and effect.

SECTION 8. Effectivity. This Department Circular shall take effect fifteen (15) days
after its publication in two (2) newspapers of general circulation. Copies of this Circular
shall be filed with the University of the Philippines Law Center-Office of the National
Administrative Register.

Signed at DOE, Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro
Manila.

FEB 06 2020

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