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ee Republic of the Philippines
ey DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO,_ OC 2020-10-00!19 4

ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY
SPOT MARKET (WESM) MARKET MANUALS ON REGISTRATION,
SUSPENSION AND DE-REGISTRATION, AND MARKET NETWORK MODEL
DEVELOPMENT AND MAINTENANCE FOR THE IMPLEMENTATION OF
ENHANCEMENTS TO WESM DESIGN AND OPERATIONS
(Provisions for the New Load Facility of a Registered WESM Member)

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 WESM and formulate the detailed rules governing the operations
thereof;

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

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

WHEREAS, the Market Operator submitted to the Rules Change Committee (RCC)
its proposed amendments to the WESM Market Manuals, particularly on the
WESM's registration and market network model;

WHEREAS, the proposal aims to prevent the possible discrepancies or disputes in
the scheduling and settlement processes of the WESM caused by the non-
registration of new load facilities of a registered WESM Member;

WHEREAS, on 16 August 2019, the RCC during its 155 RCC Meeting, discussed
and approved the said proposal for publication in the Philippine Electricity Market
Corporation’s (PEMC) information website to solicit comments from market
participants and other interested parties;

WHEREAS, on 18 October 2019 and 08 November 2019, during the 157" RCC
Meeting and 158'" RCC Meeting, respectively, deliberated on the proposal giving
due course to the comments received from market participants, and thereafter
finalized and approved for endorsement to the PEM Board;

WHEREAS, on 27 November 2019, after due evaluation and deliberation, the PEM
Board during its 18" Regular PEM Board Meeting, approved for endorsement to the
DOE the above stated RCC-approved proposal;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tal. No. (Trunkline} (632) 479-2900;
Website: http://www.doe.gov.ph; E-mail: info@doe.gov.ph

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WHEREAS, 0n19 December 2019, the PEM Board-approved amendments were
submitted to the DOE for final approval, in compliance with Chapter 8 of the WESM
Rules;

WHEREAS, on 18 March 2020, the DOE posted the draft Department Circular
adopting the proposed amendments in the DOE website to solicit comments from the
market participants and other interested parties;

WHEREAS, on 15, 17 and 19 June 2020, the DOE conducted virtual public
consultations on the proposed amendments to solicit further comments from the
stakeholders and other interested parties;

NOW THEREFORE, after careful review of the PEM Board-approved proposal and
the comments and recommendations received on the same, the DOE, pursuant to its
authority under the EPIRA and the WESM Rules, hereby adopts, issues, and
promulgates the following amendments to the WESM Market Manuals:

Section 1. Amendments to the WESM Market Manual on Market Network
Model Development and Maintenance. The following provisions in the Market
Manual on Market Network Model Development and Maintenance - Criteria and
Procedures, Issue No. 4.0, are hereby amended:

(a) Section 3.3.2 under Network Service Providers is added to read as —

“3.3.2 The Network Service Provider shall ensure that an equipment or facility is
included in the Market Network Model prior to its issuance of approval to connect
for energization.”

(b) Section 4.5.3 under MNM Timetable is amended to read as —

“4.5.3 The official notification from the System Operator shall contain the target
date of energization, along with the details of the changes to the transmission
system. The list of required information from the System Operator is described in
Appendix A.”

(c) Section 4.5.5 under MNM Timetable is amended to read as —

“4.5.5 The Network Service Provider shall only issue the approval to connect for
the energization of a facility only when it has been included in the market network
model and registered in the WESM.”

(d) Original Section 4.5.5 under MNM Timetable is renumbered and amended
accordingly to read as —

“4.5.6 The table below describes the timeline of activities involved in updating the
MNM. The variable “D” stands for the target date of uploading of the new MNM.
This date is set by the Market Operator upon its assessment, and is based on
energization date or commissioning date of a new or upgraded facility or
equipment.

DC 249%- W-oolf Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market
Manuals on Registration, Suspension and De-Registration, and Market Network Model Development and
Maintenance for the Implementation of Enhancements to WESM Design and Operations (Provisions for the New
Load Facility of a Registered WESM Member) 2/4

I ee

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XXX XXX XXX”

(e) Original Sections 4.5.6 and 4.5.7 under MNM Timetable are renumbered
accordingly as Section 4.5.7 and Section 4.5.8, respectively.

Section 2. Amendments to the WESM Market Manual on Registration,
Suspension, and De-Registration Criteria and Procedures. The following
provisions in the Market Manual on Registration, Suspension and De-Registration
Criteria and Procedures, Issue No. 7.0, are hereby amended:

(a) Section 3.3.6 (New Facility) under Facility-related is amended to read as —
“3.3.6 New Generating Facility”

(b) Section 3.3.7 (New Load Facility) under Facility-related Changes and its
Subsections are added to read as —

“3.3.7 New Load Facility

3.3.7.1 A WESM Member that has a new load facility and intends to withdraw
energy from the grid through a separate market trading node shall register that
load facility with the Market Operator.

3.3.7.2 The WESM Member shall comply with the technical and commercial
requirements under Section 2.5.3 for the registration of its new load facility.

3.3.7.3 In compliance with prudential requirements, a WESM Member shall, prior
to energization, provide an additional security commensurate to the load profile of
the new load facility.

3.3.7.4 The Market Operator shall assess and approve the request for the
registration of a new load facility in accordance with the procedures under
Sections 2.5.5, 2.5.6, and 2.5.7.

3.3.7.5 The Market Operator shall report to the Enforcement and Compliance
Office any possible non-compliance to the requirement of Section 3.3.7 for its
appropriate action.”

Section 3. Applicability Provisions. The foregoing amendments to the subject
Market Manuals set forth in this Circular shall apply to both current and enhanced
WESM design and operations.

Section 4. 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 5. Effectivity. This Circular shall take effect 15 days following its complete
publication in at least two (2) newspapers of general circulation. Copies thereof shall
be filed with the University of the Philippines Law Center — Office of National
Administrative Register (UPLC-ONAR).

DC 36%-le- 044- Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market
Manuals on Registration, Suspension and De-Registration, and Market Network Model! Development and
Maintenance for the Implementation of Enhancements to WESM Design and Operations (Provisions for the New
Load Facility of a Registered WESM Member)

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Issued this 2020 at the DOE, Energy Center, Rizal Drive, Bonifacio
Global City, Taguig City, Metro Manila.

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DCus- td- 001% — Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market
Manuals on Registration, Suspension and De-Registration, and Market Network Model Development and
Maintenance for the Implementation of Enhancements to WESM Design and Operations (Provisions for the New
Load Facility of a Registered WESM Member)

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