=== dc2024-06-0019-pages-01.ppm === Republic of the Philippines DEPARTMENT OF ENERGY (Kagawaran ng Enerhiya) BAGONG PILIPINAS DEPARTMENT CIRCULAR NO._Dc 2 24—©@- 0014 —. ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY SPOT MARKET (WESM) RULES AND WESM MANUAL ON DISPATCH PROTOCOL, AND CREATION OF WESM MANUAL ON ANCILLARY SERVICES MONITORING REGARDING RESERVE MARKET COMPLIANCE AND RELATED ENFORCEMENT AND ACTIONS WHEREAS, Sections 30 and 37(f) of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), provides that the Department of Energy (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 DOE, with the endorsement of the electric power industry participants, promulgated the WESM Rules through Department Circular (DC) No. DC2002-06-003; WHEREAS, any changes, amendments, and modifications to the WESM Rules, including its Manuals, shall be undertaken in accordance with the provisions of Chapter 8 thereof; WHEREAS, the DOE issued DC No. DC2022-11-0032 dated 07 November 2022 promulgating amendments to the WESM Rules and various pertinent Market Manuals for implementing the Reserve Market, which includes, among others, the mandate to develop Reserve Conformance Standards (RCS) as well as the procedures for monitoring and notifying Ancillary Services Providers (ASP) of their non-compliance with their reserve offer submissions and the RCS; WHEREAS, the Philippine Electricity Market Corporation (PEMC) and the Independent Electricity Market Operator of the Philippines (IEMOP), in collaboration with the National Grid Corporation of the Philippines (NGCP) as System Operator, held various coordination meetings with the DOE to develop a new dedicated manual that integrates the guidelines and procedures for monitoring the Reserve Offer Capacity Compliance (ROCC or reserve offer submissions) and RCS, and corresponding penalty or sanctions for violations or breach thereof: WHEREAS, on 26 September 2023, the DOE promulgated DC No. DC2023-09-0026 declaring full commercial operations of the Reserve Market on 26 December 2023, and to this end includes a directive for PEMC as the WESM Governance Arm to finalize the Reserve Market compliance guidelines and submit the same to the DOE for approval no later than 15 November 2023; WHEREAS, the proposed amendments aim to: 1) Change the definition of some terminologies for accuracy and clarity; Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632 Tel. No. (Trunkline) (632) 8479-2900 Website: http://www.doe.gov.ph; E-mail: infocenter@doe.gov.ph === dc2024-06-0019-pages-02.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 2 of 58 2) Add the definition of ‘reserve amount adjustment’ and emphasize that said adjustment shall not modify the formula for the computation of “reserve trading amounts”; 3) Enumerate enforcement-related notices and its corresponding enforcement applicability for easier reference; 4) Provide example of energy and reserve offer submissions of generating units to the Market Operator in Section 4.2 of the Ancillary Services Monitoring Manual for guidance and clarity; Specify that the dead band ratings indicated for the reserve facilities scheduled to provide regulating reserve and contingency reserve are applicable when they operate under Governor Control Mode; Delete the provisions on reserve effectiveness factors from the WESM Rules; 7) Add Appendix on the computation of penalties on ROCC and RCS; 8) Add summary table of ROCC for each reserve type for easy reference; and 9) Rearrange and modify some provisions for a clearer process. 5 — 6 — WHEREAS, on 09 November 2023, after due process, the PEM Board submitted to the DOE for final approval the proposed changes to the WESM Rules, WESM Manual on Dispatch Protocol and WESM Manual on Ancillary Services Monitoring; and WHEREAS, the DOE, to ensure transparency and consistency with the objectives of the EPIRA and the WESM, conducted virtual public consultation on said proposed amendments on 05 December 2023 for Luzon, Visayas and Mindanao stakeholders. NOW THEREFORE, after careful review of the PEM Board proposed amendments 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 Rules, WESM Manual on Dispatch Protocol and WESM Manual on Ancillary Services Monitoring: Section 1. Amendments to the WESM Rules. The following provisions of the WESM Rules are hereby amended to read as: 3.3 Ancillary Services 3.3.7 Approval, Periodic Review and Evaluation of Reserve Market Arrangements Se a de | XXX XXX XXX 3.3.1.2 XXX XXX XXX 3.3.73 XXX XXX XXX 3.3.7.4 Any proposed changes in the procedures reviewed under this Clause 3.3.7 shall be approved by the PEM Board in accordance with the rule change process set out in Chapter 8. XXX XXX XXX === dc2024-06-0019-pages-03.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 3 of 58 3.8.7 Reserve Market Compliance 3.8.7.1 3.8.7.2 3.8.7.3 3.8.7.4 3.8.7.5 XXX XXX The Market Operator, in consultation with the System Operator and the Enforcement and Compliance Office (ECO), shall develop standards for reserve market compliance to be set forth in the relevant Market Manual which shall be consistent with the Grid Code and Distribution Code. The Market Manual under Clause 3.8.7.1 shall set out the following: (a) reserve conformance standards and reserve offer capacity compliance that will apply to Ancillary Services Providers; (b) procedures for monitoring and notifying Ancillary Services Providers of the non-compliance with the reserve conformance standards and reserve offer capacity compliance by their generating units or interruptible load facilities; (c) Procedures for identifying and checking non-conformance with the reserve conformance standards and reserve offer capacity compliance taking into consideration any emergency directions issued to dispatched Ancillary Services Providers; and (d) Procedures for the adjustment in settlement amounts, and imposition of penalty, and sanctions as a consequence of breach of the rule or standards relating to reserve market compliance. XXX XXX XXX The Market Operator, in consultation with the System Operator, the ECO, and the Trading Participants, shall periodically review the standards for reserve market compliance and the procedures set out in Clauses 3.8.7.1 and 3.8.7.2. The Market Operator and WESM Governance Arm shall publish the Market Manual setting out the standards for reserve market compliance. XXX Chapter 11 Glossary AC. xxx Act. xxx XXX XXX XXX XXX Active Energy. xxx XXX Xxx Actual Exposure. xxx XXX = XXX Administered Price. xxx XxX XXX === dc2024-06-0019-pages-04.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 4 of 58 Affected Participants. xxx xxx Xxx AGC. Xxx XXX _—- XXX Ancillary Services. xxx Xxx Xxx Ancillary Services Agreement. xxx Xxx Xxx Ancillary Services Provider. xxx Xxx Xxx Anti-Competitive Behavior. xxx XxX XXX Authorization. xxx = XXX XXX Automatic Generation Control (AGC). xxx Xxx Xxx Automatic Pricing Re-run. xxx = XXX XXX Autonomous Group Market Operator or "AGMO". xxx = xxx Xxx Battery Energy Storage System. xxx XxX Xxx Battery Energy Storage System Offer. xxx XXX XXX Bilateral Buy Quantity. xxx xxx Xxx Bilateral contract. xxx XXX XXX Bilateral Sell Quantity. xxx xxx xxx Billing Period. xxx XXX XXX Black Start Capability. xxx xxx Xxx Black Start-up Facilities. xxx xxx Xxx Breach. xxx XXX = XXX Business Day. xxx XXX XXX Business Continuity. xxx xxx Xxx Central Dispatch. xxx xxx Xxx Chairperson. xxx XXX XXX Check data. xxx = XXX XXX Compliance Committee. xxx xxx xxx === dc2024-06-0019-pages-05.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Confidential Information. xxx Xxx XXX Connect, Connected, Connection. xxx Connection Assets. xxx XXX XXX Connection Point. xxx Xxx = Xxx Constrain-off. xxx XxX XXX Constrain-on. xxx XXX = XXX Constraint. xxx XXX XXX Constraint violation. xxx XXX XXX Constraint Violation Coefficients. xxx xxx Contestable Customer. xxx XXX = XXX Contestable Market. xxx xxx XXX Contingency Reserve. xxx XXX = XXX Credit Support. xxx XXX = XXX Credit Support Provider. xxx XXX = XXX Customer. xxx XXX = XXX Customer Market Trading Node. xxx xxx Customer Pricing Zone. xxx XXX = XXX Data Collection System. xxx = XXX XXX Data Logger. xxx XXX XXX Day Ahead Projections. xxx XxX = XXX DC. xxx XXX = XXX Default Event. xxx Xxx = Xxx Default Interest Rate. xxx Xxx XXX Default Notice. xxx XxX XXX Demand Bid. xxx XXX ~—-XXx XXX Page 5 of 58 XXX XXX XXX === dc2024-06-0019-pages-06.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 6 of 58 Department of Energy or "DOE". xxx = XXX = XXX Deregistered WESM Member. xxx XxX = XXX Direct WESM Member. xxx XXX = XXX Director. Xxx XXX XXX Disaster. xxx XXX = XXX Disaster Recovery. XxX XXX XXX Disconnect. xxx = XXX = XXX Dispatch. xxx XXX XXX Dispatch Conformance Standards. xxx XXX = XXX Dispatch Instruction. xxx XXX = XXX Dispatch Interval. xxx XXX = XXX Dispatch Schedule. xxx XxX = XXX Dispatchable Load. xxx XXX = XXX Dispatchable Reserve. xxx XXX XXX Dispute Management Protocol or "DMP". xxx XxX = XXx Dispute Resolution Administrator. xxx XXX = XXX Distribution Code. xxx XXX ~—- XXX Distribution Line. xxx Xxx XXX Distribution Network. xxx XXX = XXX Distribution Service. xxx XXX = XXX Distribution System. xxx XxX XXX Distribution Utility. xxx Xxx = XXX Economic Rental. xxx XXX XXX EFT Facility. xxx XxX Xxx Electric Cooperative. xxx XXX XXX === dc2024-06-0019-pages-07.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 7 of 58 Electronic Communication Procedures. xxx XXX = XXX Electronic Communication System. xxx = XXX = XXX Embedded Generators. Xxx XXX = XXX Emergency. xxx = XXX XXX Emergency Instructions. xxx = XXX XXX Emergency State. xxx XXX = XXX End-user. XxX XXX —- XXX Energy. XxX XXX = XXX Energy Balance Equation. xxx = XXX =—-XXX Energy Data. xxx XXX XXX Energy Regulatory Commission or "ERC". xxx XXX XXX Energy Trading Amount. xxx = XXX = XXX Enforcement. xxx XXX —- XXX Enforcement action. Xxx XXX = XXX Enforcement and Compliance Office. xxx XXX = XXX Enforcement and Compliance Office Head. xxx = XXX = XXX Enforcement proceeding. Xxx XXX = XXX Equipment. xxx = XXX = XXX Ex-Ante. xxx XXX = XXX Ex-Ante Energy Settlement Quantity. xxx XxX XXX Excess Generation. Xxx XXX = XXX Facility. xxx XXX = XXX Feed-In Tariff Certificate of Compliance. xxx = XXX _~—-XXX Feed-In Tariff Rules. xxx XXX = XXX Feed-In Tariff Allowance (FIT-All) Guidelines. xxx = XXX = XXX === dc2024-06-0019-pages-08.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Feed-In Tariff (FIT)-Eligible Renewable Energy (RE) Plant. xxx Feed-In Tariff System (FIT) System. xxx = XXX = XXX Final Statement. xxx XXX = XXX Final WESM. xxx XXX —- XXX Financial Year. xxx XXX = XXX Force Majeure Event. xxx = XXX = XXX Formulation. xxx = XXX = XXX Franchise Area. Xxx XXX = XXX Frequency. xxx XXX = XXX Generating System. xxx XXX = XXX Generating Unit. xxx XXX =. XXX Generation. Xxx XXX = XXX Generation Company. xxx = XXX = XXX Generation Offer. xxx XXX = XXX Generator Market Trading Node. xxx XXX = XXX Government. xxx XXX —- XXX Government Authority. xxx = XXX = XXX Green Energy Option Program. xxx = XXX = XXX Grid. xxx XXX = XXX Grid Code. xxx XXX = XXX Grid Off-take Metering Point. xxx XXX = XXX Gross Energy Settlement Quantity. xxx = XXX = XXX Hour-Ahead Projection. xxx XXX = XXX HVDC. xxx XXX = XXX ICT Change Management Process or “ICMP”. xxx Xxx XXX XXX Page 8 of 58 XXX === dc2024-06-0019-pages-09.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 9 of 58 Independent Market Operator (IMO). xxx = XXX —-XXX Indirect WESM Member. xxx = XXX = XXX Installation Database. xxx = XXX = XXX Interest Rate. xxx XXX _—- XXX Interim WESM. xxx = XXX ~~ XXX Intermittent Renewable Energy Resource. xxx XXX = XXX Intending WESM Member. xxx XxX = XXX Interruptible Load. xxx XXX XXX Line Rental. xxx XXX = XXX Load. xxx XXX = XXX Load Forecast. xxx XXX XXX Load Shedding. xxx XXX = XXX Load Weighted Average. xxx XXX = XXX Loading Level. xxx XXX = XXX Local Supplier. xxx XXX = XXX Locationally Specific Reserve Requirement. xxx XXX = XXX Loss Differential. xxx XxX = XXX Margin Call. xxx = XXX ~~ XXX Market Bid. xxx XXX = XXX Market Dispatch Optimization Model. xxx = Xxx XXX Market Fees. xxx XXX _—XXX Market Horizon. xxx XXX — XXX Market Information Web Site. xxx XxX = XXX Market Intervention. xxx = XXX _—XXX Market Load. xxx XXX XXX === dc2024-06-0019-pages-10.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 10 of 58 Market Manual. xxx XXX _~—- XXX Market Network Lines. xxx XXX = XXX Market Network Model. xxx = XxX XXX Market Offer. xxx XXX = XXX Market Operator. xxx XXX = XXX Market Operator Board. xxx XXX ~—- XXX Market Price. xxx XXX = XXX Market Projections. xxx XXX = XXX Market Run. xxx XXX _—-XXX Market Surveillance Committee. xxx XXX —- XXX Market Suspension. xxx XXX = XXX Market Trading Nodes. xxx XXX = XXX Market Transaction. xxx XXX = XXX Maximum Available Output. xxx = Xxx = XXX Maximum Exposure. xxx XXX = XXX Meter. xxx XXX = XXX Metered Quantity. xxx XXX = XXX Metering. xxx XXX = XXX Metering Data. xxx XXX = XXX Metering Database. xxx XXX = XXX Metering Equipment. xxx Xxx = XXX Metering Installation. xxx = XXX XXX Metering Point. xxx XXX — XXX Metering Services Provider. xxx XXX = XXX Metering Register. xxx XXX = XXX === dc2024-06-0019-pages-11.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 11 of 58 MW. xxx XXX _— XXX Must-Run Unit (MRU). xxx = XxX XXX Must- Stop Unit (MSU). xxx = Xxx —-XXx Must Dispatch. xxx XXX = XXX Must Dispatch Generating Unit. xxx XXX XXX Nameplate Rating. xxx XXX = XXX National Power Corporation or "NPC". xxx = XXX XXX National Transmission Corporation or "TRANSCO". xxx = XXX XXX Net Load Forecast. xxx XXX XXX Net Settlement Surplus or Net Settlement Deficit. xxx = Xxx Xxx Network. xxx XXX = XXX Network Constraints. xxx XXX = XXX Network Lines. xxx XXX = XXX Network Service. xxx XXX XXX Network Service Provider. xxx XXX = XXX Nodal Energy Dispatch Price. xxx XxX = XXX Nodal Value of Lost Load (Nodal VoLL). xxx = XXX _—-XXX Node. xxx XXX = XXX Normal State. xxx = XXX = XXX Non-Scheduled Generating Unit. xxx = XXX = XXX Non-Working Day. xxx XXX = XXX Normal Operating State. xxx XXX = XXX Normally Off. xxx = XxX XXX Notice of Specified Penalty. xxx = XXX = XXX Opportunity Cost. xxx XXX XXX === dc2024-06-0019-pages-12.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 12 of 58 Out of Merit Dispatch. xxx = XxX = XXX Outage. xxx XXX = XXX Over-Riding Constraints. xxx XXX XXX Payment Date. xxx XXX = XXX PEM Audit Committee. xxx = XxX = XXX PEM Board. xxx XXX = XXX Philippine Competition Commission. xxx = XXX XXX Philippine Electricity Market Corporation or the Governance Arm. xxx = XXX XXX Plant. xxx = XXX XXX Pmax. XXX XXX XXX Power System. xxx XXX _—- XXX Pricing Error Notice. xxx XXX = XXX Priority Dispatch. xxx XXX = XXX Priority Dispatch Generating Unit. xxx = XXX XXX Projected Output. xxx XXX = XXX Projection. xxx XXX = XXX Prudential Requirements. xxx XXX = XXX Publish, Publication. xxx XXX = XXX Pumped-Storage Unit. xxx XxX XXX Qualified Generating Unit. xxx = Xxx = Xxx Qualified Interruptible Load. xxx XXX — XXX Ramp Rate. xxx XXX _—XXX Reactive Energy. xxx XXX = XXX Reactive Power. xxx XXX = XXX Reactive Support. xxx XxX = XXX === dc2024-06-0019-pages-13.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Receiving Node. xxx XXX = XXX Regulating Reserve. xxx XXX _—-XXX Reliability. xxx XXX = XXX REM Rules. xxx XXX = XXX Renewable Energy Act. xxx = XXX == XXX Renewable Energy Market or REM. xxx = XXX _=—XXX Renewable Energy Registrar or the RE Registrar. xxx Xxx Renewable Energy Resource. xxx XXX = XXX Reserve. XxX XXX = XXX Reserve Conformance Standards. xxx XXX = XXX Reserve Cost Recovery Amount. xxx = XXX = XXX Reserve Cost Recovery Charges. Xxx XXX = XXX Reserve Cost Recovery Zone. xxx XXX _~—-XXX Reserve Facility. xxx XXX = XXX Reserve Facility Category. xxx XXX = XXX Reserve Offer. xxx = XXX = XXX Reserve Price. xxx XXX = XXX Reserve Region. xxx XXX = XXX Reserve Requirement Constraint. xxx = XXX = XXX Reserve Settlement Quantity. xxx XXX —- XXX Reserve Trading Amount. xxx XXX —- XXX Retail Customer. xxx XXX _ —-XXX Retail Rules. xxx XXX —-XXX Rules Change Committee. xxx = XXX = XXX Safety Plan. xxx = XXX —- XXX XXX Page 13 of 58 === dc2024-06-0019-pages-14.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 14 of 58 Scenario. xxx XXX XXX Scheduled Generating Unit. xxx xxx xxx Scheduled Generation Company. xxx xxx xxx Scheduled Load. xxx xxx xxx Scheduling Point. xxx = xxx xxx Sending Node. xxx xxx xxx Settlement. xxx xxx Xxx Settlement Amount. xxx xxx xxx Settlement Interval. xxx xxx xxx Settlement Price. xxx xxx xxx Settlement Quantity. xxx xxx xxx Settlement Surplus. xxx = xxx xxx Settlement System. xxx xxx xxx Shadow Price. xxx xxx xxx Spot market. xxx xxx xxx Spot market Commencement Date. xxx xxx xxx Standing network data. xxx xxx Xxx Standing Offer/Bid. xxx xxx xxx Status. xxx XXX Xxx Supplier. xxx = xxx Xxx Supply. xxx XxX Xxx Suspension Notice. xxx xxx xxx System Blackout. xxx Xxx xxx System operator. xxx XXX XXX System Security. xxx xxx xxx === dc2024-06-0019-pages-15.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 15 of 58 System Security and Reliability Guidelines. xxx = XxX = XXX Target Loading Level. xxx XXX = XXX Technical Committee. xxx XXX = XXX Time Stamp. xxx = XXX ~—-XXX Timetable. xxx XXX = XXX Trading Amount. xxx = XXX —- XXX Trading Day. Xxx XXX = XXX Trading Limit. xxx XXX XXX Trading Participant. xxx XXX = XXX Transition Committee. xxx XXX = XXX Transmission Line. xxx XXX XXX Transmission Network. xxx = XXX = XXX Transmission Right. xxx XXX = XXX Transmission System. Xxx = XXX —- XXX Type. XXX = XXX = XXX Unrestrained Load. xxx XXX = XXX Variable Renewable Energy (VRE) Aggregated Generation Forecast. xxx Xxx Vital Loads. xxx XXX _—- XXX VoLL. xxx XXX _ ~—- XXX Voltage. xxx XXX ~—- XXX Week Ahead Projections. xxx XXX = XXX WESM Member. xxx XXX = XXX WESM Merit Order Table (WMOT). xxx = XXX _~—XXX WESM Penalty Manual. xxx = XXX XXX Working Day. xxx XXX XXX XXX === dc2024-06-0019-pages-16.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 16 of 58 Wholesale Electricity Spot Market ("WWESM"). xxx XXX XXX WESM Participants. xxx XXX = XXX WESM Rules. xxx = XXX XXX Zonal Energy Price. xxx XXX = XXX Section 2. Amendments to the WESM Manual on Dispatch Protocol. The following provisions of the WESM Manual on Dispatch Protocol are hereby amended to read as: SECTION 15 - Scheduling and Dispatch of Reserves 15.3 Responsibilities 15.3.1 The Market Operator is responsible for implementing the procedures in WESM Clauses 3.8.7.1 and 3.8.7.2 through a system and transmitting the generated data to the Enforcement and Compliance Office based on the provisions of the Ancillary Services Monitoring Manual. XXX XXX XXX SECTION 20 — Emergency Procedures XXX XXX XXX SECTION 21 — Amendment, Publication and Effectivity 21.1 Amendments XXX XXX XXX 21.2 Publication XXX XXX XXX 21.3 Effectivity XXX XXX XXX SECTION 22 — Appendix XXX XXX XXX Section 3. WESM Manual on Ancillary Services Monitoring. The following are provisions of the WESM Manuals on Ancillary Services Monitoring: === dc2024-06-0019-pages-17.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 17 of 58 SECTION 1 — Introduction 1.1 Background 1.1.1 The Department of Energy mandated the Market Operator and the WESM Governance Arm to submit rule changes necessary for the co- optimized energy and Reserve Market. It further required the Market Operator, in consultation with the System Operator and the Enforcement and Compliance Office, to develop Reserve Conformance Standards to be set forth in the relevant Market Manual, and to periodically review the same. The WESM Governance Arm, through its Enforcement and Compliance Office, is mandated to monitor, evaluate, assess, and enforce compliance and conformance of the Ancillary Services Providers with the schedule and dispatch instructions for energy and reserves issued by the Market Operator and System Operator and with the rule on submission of reserve offer capacity in the Reserve Market. The Market Operator shall implement the procedures for flagging probable breach through an automated system and shall transmit the generated data to the Enforcement and Compliance Office for its monitoring of compliance by the Ancillary Services Providers with the Reserve Conformance Standards and related rules. In conducting the compliance monitoring and enforcement of the rules, the Enforcement and Compliance Office shall ensure that the necessary verification or assessment of compliance or non-compliance is performed, and that due process is observed. Moreover, the Enforcement and Compliance Office shall report to the Department of Energy and the Energy Regulatory Commission the monthly results of its compliance monitoring of the Ancillary Services Providers. 1.2 Purpose and Scope 1.2.1. This Manual and the enforcement proceedings and actions set herein 122 apply to the conformance of the Ancillary Services Providers with the rules pertaining to submission of reserve offers and to compliance with reserve schedules and dispatch implementation. This Manual sets out the following — a. Reserve Conformance Standards and the related Reserve Offer Capacity Compliance; b. Procedures for identifying and checking non-conformance with the Reserve Conformance Standards and Reserve Offer Capacity Compliance; === dc2024-06-0019-pages-18.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 1.2.3 1.2.4 1.2.5 12.6 1.2.7 Page 18 of 58 c. Procedures for monitoring and notifying the Ancillary Services Providers of the non-compliance by their generating units or interruptible load facilities; and d. Applicable enforcement actions and/or necessary reserve amount adjustments relative to the determination of breach of the compliance rules. The term “reserve amount adjustment” as used in this Manual shall not modify the computation for the reserve trading amount as referred to in Clause 3.13.8 of the WESM Rules and shall not include matter or item that may be a subject of revisions in the Preliminary and Final Statements under Section 4.2 of the Billing and Settlement Manual. This Manual applies to and is binding on all Ancillary Services Providers. It shall likewise apply to the Market Operator, the System Operator, and the WESM Governance Arm with respect to their respective obligations in effectively implementing the trading of reserves in the WESM through scheduling reserve and energy capacities through co-optimization, monitoring, and enforcement of the applicable rules. This Manual also provides for the penalty system specifically applicable to the Ancillary Services Providers, including particularly the manner of assessment, and implementation of enforcement proceedings and enforcement actions. Except as specifically provided herein, the relevant provisions of the WESM Penalty Manual and the Enforcement and Compliance Manual on enforcement proceedings and actions shall remain in full force and effect. The provisions of the said Manuals, to the extent practicable, shall be suppletory to this Manual, including particularly the procedures relating to the filing of Request for Reconsideration and/or Appeal, and the utilization of penalties collected. This Manual likewise covers the determination of reserve amount adjustments that need to be made in the WESM settlements as a consequence of a breach or related enforcement proceedings. The provisions of the WESM Billing and Settlement Manual, to the extent practicable, shall be suppletory to this Manual. A claim relating to an error in the Preliminary and Final Statements that is not connected in any way to, or arising from, the finding of breach or results of compliance monitoring shall be governed by the relevant provisions of the WESM Dispute Resolution Manual and the WESM Billing and Settlement Manual. Any enforcement action taken under this Manual does not imply enforcement of the Philippine Grid Code, the Philippine Distribution Code, other rules and regulations which likewise govern or regulate the WESM, WESM Members, or Ancillary Services Providers, and therefore does not prejudice and is likewise not prejudiced by the taking of any action authorized under such codes, rules and regulations. This is === dc2024-06-0019-pages-19.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 19 of 58 notwithstanding that such codes, rules and regulations also impose sanctions on the same acts or omissions that constitute a Breach of the Market Rules or Market Manuals. SECTION 2 - Definitions, References and interpretation 2.1 Definitions 2.1.1 All terms and abbreviations used in this Manual that are defined in the Market Rules shall have the same meaning as defined in the said rules. 2.1.2 Where italicized, the term or abbreviation shall have the definition given in the Glossary in the Market Rules and Market Manuals and in this Manual, as follows — a. Ancillary Services - those services that are necessary to support the transmission capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice, the Grid Code and Distribution Code. b. Ancillary Services Provider — a Generation Company with ancillary service capability certified by the System Operator or any qualified third party and registered for the WESM Reserve Market. It may also be a customer registered for the provision of interruptible load and certified in accordance with the Grid Code and Distribution Code. c. Annual Ancillary Services Performance Evaluation — refers to a procedure that determines or measures the overall performance of an Ancillary Services Provider in terms of provision and delivery of the ancillary services over a period of one (1) year based on a set of criteria and guidelines developed for that purpose. d. Available Reserve Capacity - Equal to the certified reserve capacity of a reserve facility for a particular reserve type less outages, de-rated capacity due to technical constraints and weather disturbance that cause damage to said reserve facility or that would otherwise limit its ability to inject power to the grid or to support the transmission capacity and energy. e. Breach — non-compliance with the Reserve Conformance Standards or the Reserve Offer Capacity Compliance, as finally determined following the enforcement proceedings set forth in this Manual. f. Compliance Monitoring and Assessment Report — refers to the report that includes the final assessment of whether a particular Ancillary Services Provider violated or breached the relevant Market Rules and/or Market Manuals. === dc2024-06-0019-pages-20.ppm === Manual on Dispatch Protocol, DC on Adopting Further Amendments to the WESM Rules and WESM Regarding Reserve Market and Creation of WESM Manual on Ancillary Services Monitoring Compliance and Related Enforcement and Actions Page 20 of 58 g. Enforcement-Related Notices — Type of Notice Definition | _ Reserve Market Compliance Applicability | Notice of Probable Breach TA notice issued by the Market Operator to the Enforcement and Compliance Office. It specifies the dispatch intervals in which a probable breach of Reserve Conformance Standards __ is identified. It also specifies the amount adjusted or to be adjusted from the reserve trading amounts due from the System Operator as a result of Reserve Conformance Standards Non- Compliance Notice |_probable breach flagging. A notice issued by the Enforcement and Compliance Office to an Ancillary Services Provider for probable Breach of the Reserve Offer Capacity Compliance. — th Reserve Offer Capacity Compliance | Notice of Reserve Amount Adjustment A notice issued by the WESM Governance Arm to the Market Operator, the System Operator, and the Ancillary Services Provider that serves aS a directive to, and basis of the Market Operator to cause the revision or adjustment in the settlement on account of the findings of the Enforcement and Compliance Office concerning compliance with the Reserve Conformance Standards. Reserve Conformance Standards Notice of Confirmation of Breach | A notice issued to the Market Operator, the System Operator, and the Ancillary Services Provider by the WESM Governance Arm after due assessment and verification by the Enforcement and Compliance Office which contains confirmation of the finding/s of breach as initially flagged by the Market Operator. Reserve Conformance Standards === dc2024-06-0019-pages-21.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 21 of 58 Reserve Market | Compliance Applicability | — td Reserve i A notice issued by the WESM Hanionnanté Governance Arm to an Ancillary Standards and Services Provider found in Breach directing the payment of Definition Notice of Specified Penalty financial penalty to the WESM Governance Arm. Reserve Offer Capacity Compliance i h. Frequency-driven event — refers to a situation that activities or triggers the need for immediate response from Ancillary Services Providers to maintain the grid stability due to power system frequency variation. i. Request for Reassessment with Notice of Claim — refers to a request of an Ancillary Services Provider for an independent or separate evaluation, validation, and assessment of its claim relative to a finding of breach of Reserve Conformance Standards, accompanied by a request to recalculate and/or adjust the settlement amount on account of the reassessed findings. j. Reserve - ancillary services that are traded in the WESM. k. Reserve Amount Adjustment — the amount to be debited or credited to/from a WESM Member as a line-item adjustment to the reserve trading amount in connection with the results of the monitoring and assessment of the compliance of the Ancillary Services Providers with the reserve conformance standards. |. Reserve Conformance Standards — Standards that set the criteria and procedures for determining whether the Ancillary Services Providers comply with their reserve schedules, and which are required to be set out in a Market Manual in accordance with WESM Rules Clause 3.8.7. m. Reserve Facility - a facility capable of providing reserves. n. Reserve Offer — a standing offer or market offer to supply reserves submitted or revised by a Customer or Generation Company in accordance with WESM Rules Clauses 3.5.7, 3.5.8, 3.5.10 or 3.5.11; 0. Reserve Offer Capacity Compliance — pertains to the rule that all certified and registered Ancillary Services Providers shall submit reserve offers up to their registered maximum reserve capability for all reserve categories, whether or not the capacities are covered by Ancillary Service Procurement Agreements (ASPAs). === dc2024-06-0019-pages-22.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 22 of 58 p. Reserve Schedule — is the resulting reserve schedule for a particular reserve type based on the co-optimization of energy and reserve requirements of the power system produced by the Market Dispatch Optimization Model. q. WESM Reserve Market — a market within WESM that provides for a mechanism that allows trading of ancillary services and is integrated in the system of WESM that is designed to provide optimal solution for all available capacities when scheduling reserve and energy capacities through co-optimization. 2.2 References This Manual shall be read in conjunction with the Market Rules and other Market Manuals approved for use in the WESM, including but not limited to the documents listed in the Reference Documents table of this Manual. 2.3 Interpretation Unless otherwise stated in this Manual, the rules of interpretation set out in Chapter 9 of the WESM Rules shall also apply to this Manual. SECTION 3 — Responsibilities 3.1. Market Operator 3.1.1. The Market Operator shall establish a procedure for the monitoring or flagging of breach in accordance with the Reserve Conformance Standards and the rule pertaining to Reserve Offer Capacity Compliance through the use of an appropriate facility. 3.1.2 The Market Operator shall provide to the Enforcement and Compliance Office all the market data and information that the latter deems necessary for verification, validation, and final determination of the findings or results relative to the monitoring and enforcement of the Reserve Conformance Standards and the rule pertaining to Reserve Offer Capacity Compliance. 3.1.3 The Market Operator shall implement any notice that may be served upon it, and carry out the required action, if any, as a result of the enforcement proceedings prescribed in this Manual. 3.1.4 The Market Operator shall, on a quarterly basis, inform the Enforcement and Compliance Office and the System Operator of the status of suspension or re-application as Ancillary Services Provider of the entity that has previously been suspended or deregistered as such. === dc2024-06-0019-pages-23.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 23 of 58 3.2 System Operator 3.2.1 S22 3.2.3 The System Operator shall submit to the Market Operator data and reports that are necessary in initially determining occurrence of probable breach. The System Operator shall provide to the Enforcement and Compliance Office all the market data and information that the latter deem necessary for verification, validation, and final determination of the findings or results relative to the monitoring and enforcement of the Reserve Conformance Standards and the rule pertaining to Reserve Offer Capacity Compliance. The System Operator shall implement any notice that may be served upon it, and carry out the required action, if any, as a result of the enforcement proceedings prescribed in this Manual. The System Operator shall, for monitoring purposes, inform the Market Operator and the Enforcement and Compliance Office of any technical ground or reason for disqualification of an Ancillary Services Provider, such as but not limited to failure to pass the regular Ancillary Services certification test every two (2) years or failure to resolve the technical issues required for re-certification. 3.3. WESM Governance Arm The Enforcement and Compliance Office shall — 3.3:1 ce 3.3.3 3.3.4 Monitor the compliance of Ancillary Services Providers and impose the specified penalties based on the result of monitoring and assessment in accordance with Clause 7.2.5.2 of the WESM Rules, and this Market Manual. Develop or establish a monitoring tool, system, and procedures that would readily employ and provide practical application in terms of data migration from the Market Operator or System Operator, notification to concerned Ancillary Services Providers and user interface, and recalculation of initial results pertaining to possible non-compliance with the Reserve Conformance Standards and Reserve Offer Capacity Compliance. Coordinate with the Market Operator and the System Operator, as may be deemed necessary, to ensure that all the data and information needed for monitoring and assessment — and upon which the findings shall be based — are correct and complete. Submit the reports required under this Manual to the Energy Regulatory Commission, the Department of Energy, the PEM Board, and the Compliance Committee. === dc2024-06-0019-pages-24.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 24 of 58 3.3.5 Implement all other notices, resolutions, or decisions, as the case may be, pursuant to this Manual, and shall have custody of all notices, reports and records created and issued pursuant to this Manual. The President of the WESM Governance Arm shall — 3.3.6 Sign all notices pertaining to penalties and to other enforcement actions that are required to be issued under this Manual. 3.3.7 Upon signing of the Notice of Specified Penalty, direct or authorize the billing and collection of the penalty from the Ancillary Services Providers within the timeline set forth in Section 8.2.4 of this Manual. 3.4 Ancillary Services Providers 3.4.1 Ancillary Services Providers shall submit to the System Operator the following real-time data for purposes of monitoring compliance with the Reserve Conformance Standards: a. Generator mode of operations b. Dead band setting 34.2 Ancillary Services Providers shall comply with the Reserve Conformance Standards and the rule on Reserve Offer Capacity Compliance as set forth in this Manual and related Market Manuals. 3.4.3 Ancillary Services Providers shall coordinate with the Enforcement and Compliance Office for matters, data, or information necessary for the latter to establish, validate, and verify the incidents or circumstances relating to the non-compliance with the Reserve Conformance Standards and the rule on Reserve Offer Capacity Compliance. 3.4.4 An Ancillary Services Provider that is served a notice, resolution, or decision pursuant to this Manual shall faithfully and timely comply with the requirements or directives thereunder, including but not limited to the payment of financial penalties, taking of remedial actions or measures and compliance with other directives. Failure to comply with such requirements or directives shall be subject to additional penalties pursuant to Section 8.4 of this Manual. 3.5 Other Service Providers Other service providers in the WESIM, including but not limited to the Network Service Providers and the Metering Service Providers, shall faithfully and timely implement any action or measure required of them under any notice that is issued and served pursuant to this Manual. === dc2024-06-0019-pages-25.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 25 of 58 SECTION 4 -— Reserve Offer Capacity Compliance 4.1 Overview 4.1.1. This Section applies to and is binding on all Ancillary Services Providers. By having been certified as an Ancillary Services Provider by the System Operator or any qualified third-party capability testing entity accredited by the Energy Regulatory Commission, and by being registered in the WESM as Ancillary Services Provider, an Ancillary Services Provider is bound to comply with the Market Rules and Market Manuals. 4.1.2 All Generation Companies registered in the WESM shall offer their available capacities at all times in accordance with the requirements of the co-optimized energy and Reserve Market as prescribed under the WESM Rules and its Market Manuals and subject to the reserve capacities, as certified by the System Operator or any other entity duly designated to conduct testing and certification of ancillary services capability of generating load and facilities, as applicable. 4.1.3 Each Generation Company registered as an Ancillary Services Provider shall submit a standing reserve offer for each of its relevant reserve facilities in a reserve region for each dispatch interval for each day of the week in accordance with the timetable. The standing reserve offer shall apply until revised or updated by the said Ancillary Services Provider. 4.1.4. Each Customer registered as an Ancillary Services Provider in respect of a reserve facility in a particular reserve region may likewise submit a standing reserve offer for each of its interruptible load facilities in respect of that reserve region for each dispatch interval for each day of the week in accordance with the timetable. 4.2 Reserve Offer Submission 4.2.1 Subject to the existing rule on the submission of available capacity for energy under Clause 3.5.5 of the WESM Rules, an Ancillary Services Provider shall submit offers for each of its reserve facility equivalent to the certified reserve capacity for all types of reserve categories as registered in the WESM, whether or not the capacities are covered by an ancillary services procurement agreement with the System Operator. For instance, if a generating unit has a registered capacity of 1 1OMW but is certified and registered in the WESM as having a regulating reserve capacity of 100MW, a contingency reserve capacity of 100MW, and a dispatchable reserve of 105MW, the Ancillary Services Provider should submit energy and reserve offers as follows: === dc2024-06-0019-pages-26.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 4.3 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 Page 26 of 58 (B) Reserve Offer A) Energy Offer Z (A) a | Regulating Contingency Dispatchable Reserve Reserve Reserve 110MW 1400MW 100MW 105MW + An Ancillary Services Provider shall notify the Enforcement and Compliance Office of any circumstances which may prevent it from providing ancillary services in any dispatch interval of any trading day in a particular week-ahead market horizon. Such notice shall be accompanied by supporting documents or records and shall be submitted within five (5) business days from the occurrence of the event or incident. The Ancillary Services Provider shall provide a reason or explanation whenever the submitted reserve offers are cancelled or are less than the certified capacity of its reserve facility. An Ancillary Services Provider that fails to submit the available reserve capacity in consideration of Section 4.2.2 above shall constitute a breach of the Reserve Offer Capacity Compliance. The submission of the report, data, reasons and explanations pursuant to the preceding sections shall also serve as compliance by the Ancillary Services Provider with its reporting obligation under Section 6.3.1 of this Manual and Clause 7.2.2.2 of the WESM Rules. The reserve offers shall be submitted through the market participant interface of the Market Management System in accordance with the WESM timetable, procedures and requirements set forth in the Dispatch Protocol Manual, including but not limited to, format, content, data inputs and information requirements. Review of the Rule on Reserve Offer Capacity Compliance 4.3.1 The Market Operator, in consultation with the System Operator, the WESM Governance Arm, and the WESM Members registered as Ancillary Services Providers shall review the Reserve Offer Capacity Compliance and the procedures set out in this Manual annually, or as may be necessary, and shall provide appropriate recommendation to the Department of Energy. SECTION 5 — Reserve Conformance Standards 5.1 Background 5.1.1 This Section applies to Ancillary Services Providers scheduled to provide a specific reserve type in any dispatch interval. === dc2024-06-0019-pages-27.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 5.2 5.4.2 5.1.4 B10 5.1.6 Page 27 of 58 in view of the integration of trading of ancillary services in the WESM, it is expected that harmonized reserve conformance standards be established for all Ancillary Services Providers whether their reserve capacities are contracted by the System Operator or are traded in the spot market. All Ancillary Services Providers shall ensure adequate and timely response during specific frequency-driven events or dispatch instructions, that may be required for each specific reserve type. Reserve facilities scheduled to provide regulating reserve oF contingency reserve shall respond to frequency-driven events or comply with any of the following: a. Reaction through Governor Control Mode (GC); b. Commands via Automatic Generation Control (AGC); or c. Dispatch instructions from the System Operator. Reserve facilities scheduled to provide dispatchable reserve shall respond to dispatch instructions provided by the System Operator. The accuracy and timeliness of the response provided by reserve facilities shall be monitored for each billing period and/or for each dispatch interval based on the considerations set out in the succeeding sections. Provision of Data for Monitoring and Reporting 5.2.1 The System Operator shall submit to the Market Operator data and reports that may be necessary in initially determining probable breach, such as but not limited to the following: amas of Provision Generator mode of operation Real-Time (e.g., Automatic Generation Control (AGC), Governor Control Mode (GCM), Manual Dispatch Instruction Real-Time Speed droop Generator Status Real-Time Dispatch instructions By 1200H of the next day for all instructions of the current trading da Outages By 1200H of the next day for all instructions of the current trading da “Power System Frequency ___ ower System Frequenc Control Dead band Real-Time === dc2024-06-0019-pages-28.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 28 of 58 For other data or reports not enumerated in the foregoing table, the Market Operator and the System Operator shall, from time to time, agree on the manner and schedule of submission. 5.3 Reserve Conformance Standards for Regulating Reserves 5.3.1 Reserve facilities scheduled to provide regulating reserve while operating on GCM shall conform to the standards set out in Section 5.6 of this Market Manual. 5.3.2 Reserve facilities scheduled to provide regulating reserve while receiving AGC commands shall conform to the standards set in Section 5.7 of this Market Manual. 5.3.3 Reserve facilities scheduled to provide regulating reserve shall also ensure that they meet the following requirements during the relevant dispatch interval: a. Dead band is 0.15 Hz or lower if operating on GCM or AGC; b. Speed-droop characteristic is 5% or lower; and c. Provision of reserve is sustainable for the entire dispatch interval. 5.3.4 A reserve facility providing regulating reserve that fails to maintain an average response accuracy as set out in Sections 5.6.1 and 5.7.1 or an average response time as set out in Sections 5.6.3 and 5.7.3 in any dispatch interval during the monitoring period shall be flagged as non- compliant. Once flagged as non-compliant, a reserve facility will be assessed further based on the following: a. Compliance with the response accuracy for each dispatch interval; and b. Compliance with the response time for each dispatch interval. 5.3.5 Considering the provisions of Section 5.3.4, the relevant reserve facility that fails to meet either: (a) the required response accuracy of at least 80% or 75% or (b) the required response time of not more than 5 or 25 seconds, as applicable in accordance with Sections 5.6 and 5.7 at any dispatch interval, will be considered in breach of the reserve conformance standards for regulating reserves for that dispatch interval. 5.3.6 Notwithstanding the standards set forth in Sections 5.3.4 and 5.3.5, a reserve facility that fails to comply with any of the following: (a) the required dead band setting, (b) speed droop characteristics, and (c) sustainability requirement as prescribed under Section 5.3.3 for any dispatch interval shall also be considered in breach of the reserve conformance standards for regulating reserves for that dispatch interval. 5.3.7 Whena frequency-driven event occurs during the provision of regulating reserve ancillary service, the count of breach for response accuracy shall === dc2024-06-0019-pages-29.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 5.4 5.3.8 Page 29 of 58 begin from the dispatch interval in which the frequency event occurred and shall continue until the dispatch interval in which the frequency event ends, provided that the relevant intervals have a reserve schedule. lf multiple frequency-driven events occur within a single dispatch interval, all instances within the interval shall be assessed in accordance with this Section. A breach in any or all of the events which occurred within a dispatch interval shall be counted as one (1) breach. When a frequency-driven event occurs during the provision of regulating reserve ancillary service, the count of breach for response time shall be counted only in the dispatch interval that the frequency event started. Reserve Conformance Standards for Contingency Reserves 5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6 Reserve facilities scheduled to provide contingency reserve while operating on GCM shall conform to the standards set in Section 5.6 of this Market Manual. Reserve facilities scheduled to provide contingency reserve while receiving AGC commands shall conform to the standards set in Section 5.7 of this Market Manual. Reserve facilities scheduled to provide contingency reserve receiving dispatch instructions from the System Operator manually are expected to comply within ten (10) minutes from issuance of the dispatch instructions. Reserve facilities scheduled to provide contingency reserve shall also ensure that they meet the following requirements during the relevant dispatch interval: a. Dead band is greater than 0.15 Hz but less than 0.30 Hz if operating on GCM or AGC; b. Speed-droop characteristic is 5% or lower, and c. Provision of reserve is sustainable for the entire dispatch interval. A reserve facility providing contingency reserve that fails to maintain an average response accuracy as set out in Sections 5.6.1 and 5.7.1 or an average response time as set out in Sections 5.6.3 and 5.7.3 for the entire monitoring period shall be flagged as non-compliant. Once flagged as non-compliant, a reserve facility will be assessed further based on the following: a. Compliance with the response accuracy for each dispatch interval, and b. Compliance with the response time for each dispatch interval. Considering the provisions of Section 5.4.5, the relevant reserve facility that fails to meet either: (a) the required response accuracy of at least === dc2024-06-0019-pages-30.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 5.5 5.4.7 5.4.8 5.4.9 Page 30 of 58 80% or 75% or (b) the required response time of not more than five (5) or twenty-five (25) seconds, as applicable in accordance with Section 5.6 and Section 5.7 at any dispatch interval will be considered breach of the reserve conformance standards for contingency reserves for that dispatch interval. Notwithstanding the standards set forth in Sections 5.4.5 and 5.4.6, a reserve facility that fails to comply with any of the following: (a) the required dead band setting, (b) speed droop characteristics, and (c) sustainability requirement as prescribed under Section 5.4.4 for any dispatch interval shall also be considered breach of the reserve conformance standards for contingency reserves for that dispatch interval. When a_ frequency-driven event occurs during the provision of contingency reserve ancillary service, the count of breach for response accuracy shall begin from the dispatch interval in which the frequency event occurred and shall continue until the dispatch interval in which the frequency event ends, provided that the relevant intervals have a reserve schedule. lf multiple frequency-driven events occur within a single dispatch interval, all instances within the interval shall be assessed in accordance with this Section. A breach in any or all of the events which occurred within a dispatch interval shall be counted as one (1) breach. When a frequency-driven event occurs during the provision of contingency reserve ancillary service, the count of breach for response time shall be counted only in the dispatch interval that the frequency event started. Reserve Conformance Standards for Dispatchable Reserves 5.5.1 5.52 §.5.3 5.5.4 Reserve facilities scheduled to provide dispatchable reserve must be offline unless there is a dispatch instruction from the System Operator, or it was scheduled for energy dispatch in the WESM. Reserve facilities scheduled to provide dispatchable reserve shall synchronize within fifteen (15) minutes from receipt of the dispatch instructions from the System Operator. After synchronization, the dispatchable reserve facility shall deliver the MW capacity instructed by the System Operator within fifteen (15) minutes from synchronization. A reserve facility that fails to comply with the provisions set out in Sections 5.5.1, 5.5.2, or 5.5.3 at any dispatch interval shall be considered in breach of the reserve conformance standards for dispatchable reserves for that dispatch interval. === dc2024-06-0019-pages-31.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 5.6 5.7 Page 31 of 58 Measuring Reserve Response Compliance of Generators on Governor Control Mode 5.6.1 A reserve facility responding to a frequency-driven event through GCM shall maintain a response accuracy of at least 80% for the entire monitoring period. 5.6.2 A reserve facility's response accuracy via GCM shall be calculated as follows. R A _ Actual MW Response C apacity x 100% esponse Accuracy ~ Fnected MW Response Capacity ° Where: Actual MW Response Capacity = Highest Actual MW Output — MW Output Prior to Frequency-Driven Event Expected MW Response Capacity = Static Gain x Frequency Change Frequency Change = Worst Frequency Highest/Lowest — Frequency Prior to Frequency- Driven Event Frequency Prior to Frequency-Driven Event = Nominal Frequency + Dead band Setting Scheduled MW Capacity j ins es Sen nase 1 0, STearEG Ee Droop Setting x N ominal Frequency x 100% 5.6.3 Areserve facility responding to a frequency-driven event or to a dispatch instruction, while on GCM shall have an average response time of not more than five (5) seconds for the entire monitoring period. Measuring Reserve Response Compliance of Generators on Automatic Generation Control 5.7.1 Areserve facility responding to a frequency-driven event or to dispatch instructions, through commands received from the System Operator's Energy Management System (EMS) via AGC shall comply to at least 75% of such AGC commands for the entire monitoring period. 5.7.2 Areserve is deemed compliant to an AGC command if: Actual MW Generation 2 (Desired MW Generation — Control Dead band); and Actual MW Generation s (Desired MW Generation + Control Dead band). === dc2024-06-0019-pages-32.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 5.8 5.9 Page 32 of 58 5.7.3 A reserve facility responding to a frequency-driven event, or dispatch instructions, through AGC commands shall also have an average response time of not more than twenty-five (25) seconds for the entire monitoring period. 5.7.4 Areserve facility's response time is computed from the time of the AGC command until the actual generation reaches contro! dead band (i.e., desired generation + the dead band). Summary Table of Reserve Conformance Standards for Each Reserve Type 7 For Regulating Reserves Pe At least 80% Response Accuracy On AGC _| At least 75% . | OnGcm_| not more than 5 seconds Response Time | OnaGc | not more than 25 seconds Dead band Setting 0.15 Hz or lower Sustainability for the entire dispatch interval ” For Contingenc Reserves Response Tr OnGCM _| At least 80% Accurac’ [_OnAGC __| At least 75% not more than 5 seconds OnaGc not more than 25 seconds greater than 0.15 Hz but less than 0.30 Hz 5% or lower Sustainability for the entire dispatch interval must be offline unless there is a dispatch instruction from the System Operator, or it was scheduled for energ dispatch in the WESM. thin 15 minutes upon advice from the System Operator Synchronization After synchronization, the dispatchable reserve facility shall deliver the MW capacity instructed by the System Operator within 15 minutes Review of the Reserve Conformance Standards The Market Operator, in consultation with the System Operator, the WESM Governance Arm and the WESM Members registered as Ancillary Services Providers shall review the Reserve Conformance Standards and the procedures set out in this Manual annually, or as may be necessary, and shall provide appropriate recommendation to the Department of Energy. === dc2024-06-0019-pages-33.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 33 of 58 SECTION 6 — Monitoring of Compliance with Reserve Offer Capacity Compliance 6.1 6.2 6.3 Monitoring of Reserve Offer Capacity Compliance 6.1.1 The Enforcement and Compliance Office shall, based on the data or information received from the Market Operator or System Operator, determine, evaluate, and assess the compliance of the Ancillary Services Providers with the Reserve Offer Capacity Compliance set forth in Section 4 hereof. 6.1.2 If the Enforcement and Compliance Office finds the data or information inadequate or incomplete as would prevent it from proceeding with any further actions as set out in the succeeding sections, it shall immediately coordinate with the Market Operator or System Operator to ensure that the data or information to be used in the enforcement proceedings are complete and correct. issuance of Non-Compliance Notice 6.2.1 If the Enforcement and Compliance Office determines that there is a probable breach of the Reserve Offer Capacity Compliance, it shall issue a Non-Compliance Notice to the concerned Ancillary Services Providers through their respective WESM Compliance Officers. The Notice of Non-Compliance shall be issued on a weekly basis or in such frequency as may be deemed practicable taking into account the availability and completeness of the data and information obtained from the Market Operator or the System Operator. 6.2.2 The Non-Compliance Notice is not yet conclusive until the final determination of the breach by the Enforcement and Compliance Office following the procedures set forth in Sections 6.3 of this Manual. Reply, Validation and Assessment 6.3.1 Within five (5) business days from receipt of the Non-Compliance Notice, the concerned Ancillary Services Provider shall submit its reply thereto including the supporting documents that would substantiate the explanation provided in the said reply. The Ancillary Services Provider may, in coordination with the Enforcement and Compliance Office, be allowed to submit supporting documents before the period specified for the completion of assessment under Section 6.3.2. The Enforcement and Compliance Office shall, for this purpose, establish a detailed process OF procedure of compliance monitoring and assessment and prescribe a reply format or template that may be accomplished by the Ancillary Services Provider as part of the monitoring process as well as the facility through which the reply and supporting documents shall be submitted. === dc2024-06-0019-pages-34.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 6.4 6.5 6.6 Page 34 of 58 6.3.2 The Enforcement and Compliance Office shall assess, validate, and verify the responses and documents submitted by the Ancillary Services Provider. It may also consult the Market Operator, the System Operator, or the Metering Service Provider, as necessary, to ascertain the truthfulness of the claim or allegations of the Ancillary Services Provider. The Enforcement and Compliance Office shall perform the recalculation, as may be appropriate. The assessment, validation, and verification of the responses referred to in the preceding paragraph shall be consolidated to cover one billing period. \t shall be completed within fifteen (15) business days from the end of the calendar month of the covered monitoring period regardless of whether a reply oF confirmation is submitted by the concerned Ancillary Services Provider. For instance, the assessment for the August Billing Period shall be completed on or before 15 September. Compliance Monitoring and Assessment Reports 6.4.1 The Enforcement and Compliance Office shall issue the monthly Compliance Monitoring and Assessment Report to each Ancillary Services Provider that has been issued a Non-Compliance Notice, which report shall: a. contain or provide, among others, a finding whether the concerned Ancillary Services Provider is compliant with the Market Rules or Market Manuals, b. contain the penalty amount as computed under Section 8; c. be issued to the concerned Ancillary Services Provider with respect to each reserve facility oF plant that is subject of monitoring, as applicable; and d. be issued within five (5) business days from completion of validation and assessment as prescribed under Section 6.3.2. Request for Reconsideration oF Appeal and implementation of Enforcement Actions The filing of any request for reconsideration or appeal concerning compliance with the Reserve Offer Capacity Compliance as well as the procedure for the implementation of enforcement actions shall be governed by the relevant provisions of the WESM Enforcement and Compliance Manual. Reporting Results 6.6.1 The Enforcement and Compliance Office shall submit a consolidated monthly report to the Department of Energy, Energy Regulatory Commission, PEM Board, and Compliance Committee, containing the status of the compliance of each Ancillary Services Provider with the Reserve Offer Capacity Compliance. === dc2024-06-0019-pages-35.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 35 of 58 SECTION 7 — Monitoring of Compliance with Reserve Conformance Standards 7.1 7.2 Monitoring of Reserve Conformance Standards 7.1.1 The Enforcement and Compliance Office shall, based on the data or information received from the Market Operator or System Operator, determine, evaluate, and assess the compliance of the Ancillary Services Providers with the Reserve Conformance Standards set forth in Section 5 hereof. 7.1.2 Incase of inadequacy of the data or information, upon which the flagging or initial determination of breach is based, the provision of Section 6.1.2 shall apply. Flagging of Breach of Reserve Conformance Standards 7.2.1. The Market Operator shall, through a dedicated monitoring facility, flag a breach of the Reserve Conformance Standards by the Ancillary Services Provider based on the parameters set in Section 5, and shall notify the System Operator, the Ancillary Services Provider, and the Enforcement and Compliance Office of the same. 7.2.2 The Market Operator and the System Operator shall provide copies of the data or information to the Enforcement and Compliance Office which will be used by the latter as basis for the validation or confirmation of breach of the Reserve Conformance in accordance with the procedures set out in Section 7.5. The Enforcement and Compliance Office shall generate monitoring results for reconciliation with the results generated by the Market Operator. 7.2.3 The Market Operator shall consolidate the initial monitoring results relating to compliance with the Reserve Conformance Standards for the relevant billing period on or before the end of the month of the covered billing period. It shall then confer with the System Operator and the Enforcement and Compliance Office its findings referred to in Section 7.2.1. They shall endeavor to reconcile and/or confirm the results of monitoring within five (5) calendar days after the end of the billing period. 7.2.4 lf the performance of a reserve facility of an Ancillary Services Provider affects both its compliance under the Ancillary Services Procurement Agreement and the Reserve Market, the System Operator and the Market Operator shall jointly determine the extent of breach committed and be able to allocate or determine which part of the reserve amount adjustments and penalty corresponds to the contractual obligation and to the reserve market compliance. 7.2.5 \f it becomes impossible to allocate the exact amount for settlement adjustments or penalty in accordance with the preceding paragraph, by === dc2024-06-0019-pages-36.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 7.3 1:28 teat Page 36 of 58 reason of indivisibility of the breach committed by Ancillary Services Provider, the same shall be determined based on the scheduled capacity for reserves under the Ancillary Services Procurement Agreement and the Reserve Market. If no feedback or confirmation is received from the System Operator or no reconciliation is made after the lapse of the period set in Section 7.2.3, the Market Operator shall proceed with the finalization of the monitoring breach of the reserve conformance standards. The finding of breach of reserve conformance standards, aS determined in accordance with Section 7.2 hereof, shall have the effect of non- payment of the reserve amount to the Ancillary Services Provider for the intervals found in breach for which purpose, the Market Operator is herein authorized to automatically deduct the reserve amount for the intervals found in breach from the settlement amount specified in Section 7.3.1 (a). Settlement Amount Due from the System Operator After Monitoring Tac Upon reconciliation or confirmation of the results of the monitoring of the Reserve Conformance Standards following the procedure referred to in Section 7.2, the Market Operator shall: a. calculate the settlement amount due from the System Operator taking into account the finding of breach of the reserve conformance standards on ofr before the due date for the issuance of preliminary settlement statements, as set in the Billing and Settlement Manual. For this purpose, the Market Operator is authorized to automatically deduct from the settlement amount the reserve amount to the Ancillary Services Provider pertaining to the intervals where an_ initial determination of breach was flagged; and b. send the Notice of Probable Breach to the Enforcement and Compliance Office, which shall perform the necessary validation and assessment and shall issue the Compliance Monitoring and Assessment Report, as set out in Section 7.5 and Section 7.6. 7.3.2 The Notice of Probable Breach of the Reserve Conformance Standards shall contain, at a minimum, the specific intervals, resource unit/s, and the type of reserve that is found in breach and the amount that is not considered in determining the reserve amount due, and thus, not paid to the Ancillary Services Providers as a consequence of the breach. === dc2024-06-0019-pages-37.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 37 of 58 7.4 Request for Reassessment with Notice of Claim by Ancillary Services Providers 7.4.1 7.4.2 7.4.3 7.4.4 The Ancillary Services Provider may file a Request for Reassessment with Notice of Claim with the Enforcement and Compliance Office not later than ten (10) calendar days from receipt of the Preliminary Settlement Statement from the Market Operator. A copy thereof shall be furnished by the Ancillary Services Provider to the System Operator and the Market Operator. The Request for Reassessment with Notice of Claim shall be filed online or through a facility that may be developed by the Enforcement and Compliance Office for this purpose. The Request for Reassessment with Notice of Claim shall indicate the following: a. Date of receipt of the Preliminary Settlement Statement from the Market Operator, b. The specific intervals, resource unit/s, and the type of reserve covered by the request; The ground/s for reassessment; The correct data or value in case the ground for reassessment includes data variance or discrepancies, including the source of the data to be used in the recalculation; e. Data, information, records, or documents to support the request or claim; and f. The amount being claimed and sought to be adjusted in favor of the Ancillary Services Provider. 29 The Request for Reassessment with Notice of Claim shall be accompanied by a certification under oath attesting to the authenticity of the documents submitted in relation thereto. A scanned copy of the notarized certification may be submitted in lieu of the printed copy as an integral part of the request. However, the Enforcement and Compliance Office may, as it deems necessary, request a printed copy of such notarized certification or any documents filed in relation thereto. The Enforcement and Compliance Office shall, for this purpose, establish or prescribe a format or template that may be accomplished by the Ancillary Services Provider in filing the said request. The filing of Request for Reassessment with Notice of Claim beyond the period allowed under Section 7.4.1 or the failure to comply with the requirements set out in Sections 7.4.2 and 7.4.3 shall cause the outright dismissal thereof. === dc2024-06-0019-pages-38.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 7.5 7.6 Page 38 of 58 Validation and Assessment 7.5.1 Upon receipt of the Request for Reassessment with Notice of Claim, the Enforcement and Compliance Office shall validate and assess the findings of breach or claim of the Ancillary Services Provider. 7.5.2 The Enforcement and Compliance Office, during verification and assessment, may also consult the Market Operator, the System Operator, or the Metering Service Provider, as necessary, to ascertain the truthfulness of the claim or allegations of the Ancillary Services Provider. The Enforcement and Compliance Office shall perform the recalculation, as may be appropriate. 7.5.3 The assessment, validation, and verification of the information gathered in relation to the request shall be completed not later than the end of the billing month following the covered monitoring period. For instance, if the request for reassessment pertains to the August Billing Period, the validation and assessment shall be completed on OF before 25 September. Compliance Monitoring and Assessment Reports 7.6.1 If Notice of Probable Breach is received by Enforcement and Compliance Office, and no Request for Reassessment with Notice of Claim is filed by the concerned Ancillary Services Provider within the allowable period to file the same under Section 7.4.1, the Enforcement and Compliance Office shall issue a Compliance Monitoring and Assessment Report based on its monitoring and assessment, and after reconciliation of the findings with the Market Operator. The said report and a Notice of Specified Penalty shall be issued not later than the end of the month following the covered monitoring period. For instance, if the Notice of Probable Breach pertains to the August Billing Period, the compliance monitoring and assessment report shall be issued on oF before 30 September. 7.6.2 The Enforcement and Compliance Office shall, after due validation and assessment conducted in relation to the Request for Reassessment with Notice of Claim, prepare the Compliance Monitoring and Assessment Report which shall: a. contain or provide, among others, a finding whether the concerned Ancillary Services Provider is compliant with the Market Rules or Market Manuals; b. contain the amount to be adjusted or revised, if any, in the settlement for the particular billing period; c. be issued to the concerned Ancillary Services Provider with respect to each reserve facility or plant that is subject of monitoring, as applicable; and === dc2024-06-0019-pages-39.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 7.7 Page 39 of 58 d. be issued within five (5) calendar days from completion of validation and assessment as prescribed under Section 7.5.3. 7.6.3 If there is a finding of breach based on the validation and assessment conducted by the Enforcement and Compliance Office, the Compliance Monitoring and Assessment Report shall likewise be accompanied by the following: a. A Notice of Confirmation. Such notice shall indicate a statement confirming a finding of breach, as determined by the Market Operator under Section 7.2. b. A Notice of Specified Penalty. This notice shall indicate the penalty, as computed under Section 8 of this Manual, and shall be served upon the Ancillary Services Provider in accordance with the provisions of this Manual. 7.6.4 Ifthe Enforcement and Compliance Office found, after due validation and assessment, that no breach was committed by the Ancillary Services Provider, the Compliance Monitoring and Assessment Report shall indicate such findings and shall be accompanied by the Notice of Reserve Amount Adjustment. The Notice of Reserve Amount Adjustment shall indicate the amount to be adjusted by the Market Operator in favor of the Ancillary Services Provider. 7.6.5 The Compliance Monitoring and Assessment Report and the notices specified in the preceding sections shall be issued by the Enforcement and Compliance Office within the period provided under Section 7.6.2 (d) to the Ancillary Services Provider, Market Operator, and System Operator. 7.6.6 No request for reconsideration or appeal of the findings concerning compliance with the Reserve Conformance Standards shall be filed with, or entertained by, the Enforcement and Compliance Office. Action on Notice of Reserve Amount Adjustment 7.7.1 The Market Operator shall reflect in the settlement statement the adjustments as specified in the Notice of Reserve Amount Adjustment received from the Enforcement and Compliance Office under Section 7.6.4 hereof. 7.7.2 The reserve amount adjustment shall be accounted for, and reflected in, the immediately succeeding Preliminary Statement, provided that the Notice of Reserve Amount Adjustment is received by the Market Operator at least four (4) calendar days prior to the issuance of that Preliminary Statement, otherwise, the same shall be deferred until the next billing period. For instance, if the Notice of Reserve Amount Adjustment is received by the Market Operator on 28 August or four (4) calendar days before the issuance of the Preliminary Statement on 01 === dc2024-06-0019-pages-40.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 7.8 Page 40 of 58 September, the adjustment shall be reflected in said Preliminary Statement. If the Notice is received on 31 August 2023, the same will be accounted for in the Preliminary Statement to be issued on 02 October. 7.7.3 The Market Operator shall, for monitoring purposes, notify the Enforcement and Compliance Office of the status of implementation of the Notice of Reserve Amount Adjustments including other information relevant to the enforcement of the Reserve Conformance Standards on a monthly basis. Reporting Results The Enforcement and Compliance Office shall submit a consolidated monthly report to the Department of Energy, Energy Regulatory Commission, PEM Board, and Compliance Committee, containing the status of the compliance of each Ancillary Services Provider with the Reserve Conformance Standards. SECTION 8 - Penalties and Sanctions 8.1 Enforcement Actions 8.1.1 The Penalty amount shall be computed for each billing period or applicable period in case of Breach of Reserve Conformance Standards or Reserve Offer Capacity Compliance. 8.1.2 Penalties or Sanctions. In determining the penalty or sanction for a Breach committed by the Ancillary Services Provider, the following shall be considered: a. By Reserve Facility. Where an obligation is required to be performed for each registered Reserve Facility, one count of breach is committed for each Reserve Facility for which an obligation is not performed. For generating units and customer facilities, the identification of the Reserve Facility shall be in accordance with how such is represented in the market network model prevailing at the time the Breach occurred. Thus, for a generating plant that is represented by its component units or by blocks or by aggregated units, a Breach is determined for each unit, or block, or aggregated units that is found in breach. b. By Reserve Type. Where a Reserve Facility is certified to provide more than one (1) type of reserve, the occurrence of a breach shall be determined per reserve category in which it is registered in the WESM. The penalty is assessed separately for each type of reserve: regulating, contingency, and/or dispatchable. c. By Occurrence. The persistence of the Ancillary Services Providers in committing non-compliance, intentional or otherwise, in terms of frequency or number of times that the non-compliance === dc2024-06-0019-pages-41.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 41 of 58 or Breach occurred in a particular Billing Period or applicable period. The frequency level, reference period, and corresponding penalty level for each type of circumstance are set out in the Frequency of Occurrence Matrix below. 1 - 864 dispatch intervals over the Billing Period More than 864 dispatch intervals over the Billing Period More than 1,440 dispatch intervals over the Billing Period i. The frequency of occurrence is determined within a Billing Period and is counted by the number of occurrences of Breach regardless of whether it is consecutive or not. ii. The counting of frequency of occurrence is reset every Billing Period. For instance, the Breach that is committed eight hundred sixty-four (864) times within the September Billing Period will warrant Level 1 application. If twenty-four (24) counts of Breach occur in October Billing Period, the same shall be counted anew for the said Billing Period, thus, warranting Level 1 application only. iii. If the Breach count reaches Level 2 penalty and the count continues as would warrant application of Level 3 penalty, the Level 2 penalty shall be imposed without prejudice to the imposition of Level 3 penalty under Section 8.1.2 (d) of this Manual. iv. Notwithstanding the provision on resetting of count for penalty level application purposes, as provided in the preceding Section, the overall performance of Ancillary Services Provider based on the number of compliances and non- compliances within the year or applicable period shall nonetheless be considered in the annual performance evaluation pursuant to Section 8.1 2 (e) (iii) of this Manual. d. Financial Penalty. The financial penalty may be a pre-set amount or formula-based. The financial penalty may be escalated depending on the frequency of occurrence of Breach as specified in Table 1 of this Manual. === dc2024-06-0019-pages-42.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 42 of 58 (i) For Breach of Reserve Offer Capacity Compliance. Level 1: The amount of One Thousand Pesos (PHP1,000) for each count of Breach. Level 2: The amount of Two Thousand Pesos (PHP2,000) for each count of Breach. (ii) For Breach of Reserve Conformance Standards Level 1: The amount that may be computed based on the following: Penalty Amountp;,a = 50% of = (SCp * ARcra) Where: n Refers to the number of dispatch intervals within a settlement interval, which is 12 for a five-minute market SCp i Refers to the scheduled capacity of the Ancillary Services Provider p for dispatch interval i ARcra refers to the Applicable Rate for type of contract c for reserve category rin reserve region a Applicable rate: Reserve Applicable Catego ___. Rate Regulating Reserve PHP3.00/kWh a | PHP2,251KWh Reserve PHP2.25/kWh Dispatchable REcErVE PHP1.25/kWh Level 2: Two (2) times the amount of the penalty computed in Level 1. e. Suspension (i) The penalty of suspension shall be imposed if the Breach count reaches Level 3 based on the Frequency of Occurrence set forth in Table 1 of this Manual. (ii) The penalty of suspension would disallow the Generation Company to trade its ancillary services capacity in the Reserve Market for a period of one month counting from the implementation of the Notice of Specified Penalty by the === dc2024-06-0019-pages-43.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 43 of 58 Market Operator as provided for in Section 8.2.4 (b) of this Manual. The suspension shall not, in any way, affect the participation of the concerned Generation Company with respect to its energy offers in the WESM. (iii) The penalty of suspension will be applied if either of the two (2) types of Breach reaches Level 3 penalty. For instance, if the Ancillary Services Provider was imposed a Level 3 penalty for Breach of the rule on Reserve Offer Capacity Compliance but only Level 2 penalty for Breach of the Reserve Conformance Standards, a Level 3 penalty shall nonetheless be applied. (iv) If the penalty of suspension will affect the contractual obligations of the System Operator based on the ancillary services procurement agreement with the Ancillary Services Providers, or would, in any way, impair the obligations of an existing contract, the System Operator shall inform the Market Operator and the Enforcement and Compliance Office thereof. Upon assessment and/or confirmation of the possible impairment of a contract, the issuance of a notice of suspension shall be issued with such qualification that the suspension will be implemented only in regard to its participation in the Reserve Market. (v) If the notice of suspension is qualified in accordance with the preceding paragraph, the Ancillary Services Provider may submit offers for reserve through the market participant interface only to the extent permitted under its day-ahead ancillary service schedule as provided to it by the System Operator based on their ancillary services procurement agreement. (vi) Any reserve schedules resulting from the reserve offer submission by Ancillary Services Provider despite being suspended from Reserve Market shall not be accounted for in the settlement of the reserve trading amounts during the effectivity of the suspension. f. Deregistration The penalty of deregistration as Ancillary Services Provider shall be imposed under any of the following conditions: (i) If the Ancillary Services Provider has previously been found in breach with at least Level 2 penalty and the breach at the same level of penalty has been committed for ‘at least three (3) months, consecutive or not. For instance, the Ancillary Services Provider was found in breach with Level 2 penalty in January, April, and June billing months, the Ancillary Services Provider will be deregistered beginning July 2023 or on such date as may be determined by the Market Operator under Section 8.2.7 of this Manual. === dc2024-06-0019-pages-44.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 44 of 58 (ii) If the facility registered as Ancillary Services Provider has been unavailable due to forced or unplanned outage exceeding ninety (90) consecutive days. (iii) If the Ancillary Services Provider fails to pass the Annual Ancillary Services Performance Evaluation taking into account the compliance monitoring results for a period of one (1) year from the date of participation of the Ancillary Services Provider in the Reserve Market. For this purpose, the Market Operator and the Enforcement and Compliance Office, in consultation with the System Operator, shall formulate guidelines and procedures for conducting the Annual Ancillary Services Performance Evaluation. A former Ancillary Services Provider whose facility was deregistered under the provisions of this Manual may re-register or reapply for membership in the WESM as Ancillary Services Provider, provided that all the requirements for registration provided under the relevant Market Manual are fully complied with. 8.2 Notice of Specified Penalty 8.2.1 8.2.2 8.2.3 8.2.4 A Notice of Specified Penalty shall be served on the concerned Ancillary Services Provider upon issuance of the Compliance Monitoring and Assessment Report by the Enforcement and Compliance Office or within the timeline specified under Section 6.4.1 (d) and Section 7.6.2 (d). A Notice of Specified Penalty required to be issued in accordance with this Manual shall be issued and signed by the President of the WESM Governance Arm in accordance with Section 3.3.5 of this Manual. The following shall also be furnished a copy of the Notice of Specified Penalty — a. The finance unit of the WESM Govemance Arm b. The Market Operator c. The System Operator The Notice of Specified Penalty shall be implemented within (5) business days from receipt thereof from the WESM Governance Arm: a. The finance unit of the WESM Governance Arm with respect to the billing and collection of financial penalty by sending the === dc2024-06-0019-pages-45.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions 8.2.5 8.2.6 8.2.7 8.2.8 Page 45 of 58 invoice, billing statement or its equivalent to the Ancillary Services Provider, and b. The Market Operator or System Operator with respect to the other enforcement actions such as, but not limited to, suspension OF deregistration of the Ancillary Services Providers. The concerned Ancillary Services Provider shall pay the Penalty amount as billed within fifteen (1 5) business days from receipt of the billing statement from the WESM Governance Arm. If the penalty imposed upon the Ancillary Services Provider is suspension or deregistration, a clear statement to that effect shall be indicated in the Notice of Specified Penalty. It shall serve as the authority of the Market Operator or the System Operator to implement the procedures that would give effect to the sanctions as a consequence of a finding of Breach. The Market Operator shall issue a notice of suspension or deregistration to the concerned Ancillary Services Provider indicating the start of the suspension OF deregistration in consideration of the guidelines set forth in the WESM Registration, Suspension and De-Registration Criteria and Procedures Manual. All notices required to be issued by the WESM Governance Am shall be sent through personal service, private courier, postal mail, electronic mail or such other acceptable, speedy, and effective form of communication. The WESM Governance Arm shall ensure that all notices are received or acknowledged by the intended recipients. 8.3 Remedial Measures 8.3.1 8.3.2 An Ancillary Services Provider may be required to implement remedial measures by the Enforcement and Compliance Office, the Compliance Committee, or the PEM Board to mitigate or prevent the adverse impact of Breach or to prevent recurrence of the Breach. The relevant provisions on remedial measures under Section 7.14 of the Enforcement and Compliance Manual shall, to the extent applicable, apply to Ancillary Services Providers. The Enforcement and Compliance Office, in coordination with the System Operator or the Market Operator, shall monitor the compliance by the concerned Ancillary Services Provider of the remedial measures required of it. === dc2024-06-0019-pages-46.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 46 of 58 8.4 Non-payment of Penalties or Non-Compliance with Remedial Measures 8.4.1 A penalty interest shall be additionally imposed upon the concerned Ancillary Services Provider in case of non-payment by the Ancillary Services Providers of the financial penalties imposed on it as a consequence of a Breach. For this purpose, the prevailing legal interest rate shall apply in computing the additional penalty and shall be computed from the date the payment becomes due up to the actual payment of penalty. 8.4.2 A penalty of One Hundred Thousand Pesos (PHP100,000) shall be imposed in case of non-compliance by an Ancillary Services Provider with the remedial measures required to be implemented by it under a Notice of Specified Penalty or other notices issued under Section 7.4 of this Manual. 8.4.3 The aforesaid penalty interest under Section 8.4.1 or the penalty under Section 8.4.2 shall be imposed automatically by the WESM Governance Arm upon failure to pay the financial penalty on the due date or to comply with the required remedial measures. 8.5 Enforcement Action Monitoring Report 8.5.1 The Enforcement and Compliance Office shall maintain a complete and updated record of notices issued in relation to the enforcement actions made pursuant to this Manual including the respective status and updates thereof as of a particular period. 8.5.2 To the extent practicable, the WESM Governance Arm shall endeavor to develop a process, tool, or system, that would promote practical and seamless interface among the Enforcement and Compliance Office, the Market Operator, the System Operator, and the Ancillary Services Provider with respect to monitoring of enforcement actions imposed as a consequence of Breach, as well as the status of their implementation. SECTION 9 — Amendment, Repealing Clause, Publication and Effectivity 9.1. Amendments 9.1.1. Amendments to this Manual may be initiated by the WESM Governance Committees, the Enforcement and Compliance Office, the Market Operator, the System Operator or any other WESM Member following procedures for changes to Market Manuals set out in the WESM Rules and in the relevant Market Manual. However, any proposed amendments that pertain to the === dc2024-06-0019-pages-47.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 47 of 58 penalty provisions of this Manual shall be submitted to the Market Surveillance Committee pursuant to Clause 7.2.5.5 of the WESM Rules. 9.1.2 Without limiting the grounds or basis upon which this Manual may be amended, amendments to this Manual shall be made to make this Manual consistent with — a. Amendments to the EPIRA and its Implementing Rules and Regulations affecting enforcement and compliance in the WESM; b. Amendments to the Market Rules affecting enforcement and compliance in the WESM; c. Issuances of the Energy Regulatory Commission concerning enforcement of the WESM Rules; and d. Issuances of the Department of Energy affecting enforcement and compliance in the WESM. 9.1.3 Amendments to this Manual shall be approved and promulgated by the Department of Energy. 9.2 Effectivity and Publication 9.2.1. This Ancillary Services Monitoring Manual shall become effective upon approval of the Department of Energy and fifteen (15) days following its publication in at least two (2) newspapers of general circulation and shall remain in effect until otherwise revoked. 9.2.2 This Manual shall likewise be published on the market information website. SECTION 10 — Transitory Provision The provisions pertaining to the imposition and amount of sanctions and/or penalties as a consequence of breach shall be subject to a six-month relaxation period, without prejudice to extension, with the end in view of encouraging participation and compliance of Ancillary Services Providers. This notwithstanding, the provision on non-payment of reserve trading amounts under Sections 7.2.7 and 7.3.1 of this Manual shall be binding upon the commercial operation of the WESM Reserve Market. SECTION 11 - Appendices Appendix | — Process Flowchart for Reserve Offer Capacity Compliance Monitoring Appendix Il — Process Flowchart for Reserve Conformance Standards Monitoring Appendix Ill - Sample Penalty Computation for Reserve Offer Capacity Compliance (ROCC) and Reserve Conformance Standards (RCS) === dc2024-06-0019-pages-48.ppm === DC on Adopting Further Amendments to the WESM Rules and WESM Manual on Dispatch Protocol, and Creation of WESM Manual on Ancillary Services Monitoring Regarding Reserve Market Compliance and Related Enforcement and Actions Page 48 of 58 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. Repealing Clause. Except insofar as may be manifestly inconsistent herewith, nothing in this Circular shall be construed as to repeal any mechanisms already existing or responsibilities already provided for under existing rules. Section 6. Effectivity. This Circular shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation. A copy of this Circular shall be filed with the University of the Philippines Law Center — Office of the National Administrative Register. issued this JUN 1 0 2024 at the DOE, Energy Center, Rizal Drive cor. 34° Street, Bonifacio Global City, Taguig City, Metro Manila. RAPHALL P.M. LOTILLA ¥@ Secretary === dc2024-06-0019-pages-49.ppm === APPENDIX I: PROCESS FLOWCHART FOR RESERVE OFFER CAPACITY COMPLIANCE Issue Non- Compliance Notice (NCN) (by ECO) Daily/weekly Respond to NCN (by ASP) §BD from NEN receipt Validate and 45BD from Assess (by ECO) EOM Issue CMAR (by aac ECO) validation Does ASP file RR/Appeal? ~ (A) YES Is it filed on time/ are the requirements met/complete? Proceed with ¥ES RR/Appeal (per Penalty Manual) (by ECO/CC) NO Per Timeline ASP — Ancillary Service Provider BD — Business Days CC — Compliance Committee CMAR — Compliance Monitoring and Assessment Report ECM — Enforcement and Compliance Manual ECO - Enforcement and Compliance Office MO — Market Operator NCN — Non-Compliance Notice PM — Penalty Manual RR — Request for Reconsideration WGA — WESM Governance Arm ) | ¢ ‘ I Final and Executory i rl (per ECMI) : ‘ ; Issue NSP (if with Breach) per PM (by WGA) Per Timeline under PM Implement ne enforcement action, JiaMaan eae as appropriate (by PM/ECM WGA/MO/SO) under PM === dc2024-06-0019-pages-50.ppm === Flagging and determination of breach of RCS and reconciliation of findings with SO (by MO) APPENDIX Il: PROCESS FLOWCHART FOR RESERVE CONFORMANCE STANDARDS Flagging and determination of BD ~ Business Days 5CD from breach of RCS and 5CD from CD — Calendar Days end obey reconciliation of eee CMAR — Compliance Monitoring and Assessment Report ECO - Enforcement and Compliance Office MO — Market Operator NSP — Notice of Specified Penalty RRA/NC — Request for Reassessment with Notice of Claim SO — System Operator WGA — WESM Governance Arm findings with ECO (by MO) Issue Preliminary Settlement Statement (by MO) Implement enforcement action (by WGA/MO) 5BD from receipt of NSP Issue CMAR and NSP (by WGA) Does ASP file RRA/NC? EO of Month 5CD from completion of F Issue CMAR and veudetion dine! ere the Validate and Is there a Notice of : A finding of Confirmation and reesei “ne assess (by WGA) breach? Notice of Specified P Penalty (by WGA) Upon receipt of RRAING Reflect the adjustments per Notice of Reserve Amount Adjustments in the next Preliminary Statement (by MO) Issue CMAR and Notice of Reserve Amount Adjustment (by WGA) Dismiss RRA/NC Upon receipt of RRA/NG Not later than 28” of the month following the covered monitoring period. Per Billing and Settlement Manual END === dc2024-06-0019-pages-51.ppm === APPENDIX Ill-A: SAMPLE PENALTY COMPUTATION FOR RESERVE OFFER CAPACITY COMPLIANCE (ROCC) A. Involving One Reserve Type Assumption 1: All intervals indicated here are found in breach of ROCC. The total count of breaches for October billing period is less than 864 intervals. The reserve type for which the breach of ROCC is found is Contingency Reserve (CR) ne se y Registatad Reserve _— Penalty Amount, . Billing Period Resource ID Delivery Date Reserve Type Ancillary Finding Penalty Level , Running Total, PhP Service, MW PhP October 01RESOURCE G01 10/11/2023 0:00 CR Level 1 | _P1,000.00 | 1,000.00 _—sixs | October (|| ~~ ORESOURCE G01 10/11/2023 0:05 CR of sreach | Level 1 P1,000.00 | 2,000.00 _—i| October O1RESOURCE G01 10/14/2023 0:10 CR 400 Breach Level 1 1,000.00 | _——s«P3,000.00, i October O1RESOURCE G01 10/11/2023 0:15 ee Level 1 1,000.00 4,000.00 October 01RESOURCE_G01 10/11/2023 4:25 ee Breach Level 1 1,000.00 54,000.00 October 01RESOURCE_G01 10/11/2023 4:30 CR 100 0 Breach Level 1 |__P 4,000.00 55,000.00 Assumption 2: All intervals indicated here are found in breach of ROCC. The total count of breaches for October billing period exceeded 864 intervals. The reserve type for which the breach of ROCC is found is Contingency Reserve (CR) Registered Total Billing Period Resource ID Delivery Date Reserve Type Ancillary Lircagiee Finding Breach Penalty Level COREE EM Running Total, PhP Service, MW ba Count October | 01RESOURCE G01 10/11/2023 0:00 CR +00 _ 0 Breach fi Level 1 P 1,000.00 1,000.00 October 01RESOURCE G01 10/11/2023 0:05 CR 100 0 Breach 2 | itevelt 1,000.00 2,000.00 October 01RESOURCE G01 10/11/20230:10 | cr | 100. ~| 0 | Breach 3 [| teveli1 | ——_—=P1,000.00 3,000.00 October 01RESOURCE G01 tonw2o230:15 | cr | 100 | o | Breach | 4 | Levelt | 1,000.00 P4,000.00 October 01RESOURCE G01 10/11/2023 0:20 —— 100 0 Breach | 5 | Level1 | 1,000.00 5,000.00 October 01RESOURCE_ G01 10/11/2023 0:25 CR 100 | _o | Breach | 6 | Levelt | 1,000.00 P6,000.00 October 01RESOURCE G01 10/14/20230:15 | cR | 100 ‘| 0 Breach | 868 | Level2 | P2,000.00 872,000.00 October | __ O1RESOURCE_G01 10/14/20230:20 | cr | to | oo | Breach | 869 | Level2 | 2,000.00 P874,000.00 === dc2024-06-0019-pages-52.ppm === APPENDIX III-A: SAMPLE PENALTY COMPUTATION FOR RESERVE OFFER CAPACITY COMPLIANCE (ROCC) October O1RESOURCE_G01 10/14/2023 0:25 2,000.00 | 876,000.00 _| B. Involving Two Reserve Types Assumption 1: All intervals indicated here are found in breach of ROCC. The reserve types for which the breach of ROCC is found are Contingency Reserve (CR) and Regulating Reserves (RR). All the breaches were committed during the billing month of October. The total count of breaches for each reserve type is less than 864 intervals. ss Registered Total CR Total RR 5 Billing 7 Reserve zs Reserve oa CR Penalty RR Penalty CR Penalty RR Penalty CR Running RR Running Total Penalty Period Resource ID Delivery Date Type ee aw Offer,MW Finding Breach pie Level Level Amount, PhP Amount, PhP Total, PhP Total, PhP Amount, PhP ; 100 0 Breach 1 0 Level 1 ni 1,000.00 P0.00 P 1,000.00 P0.00 P 1,000.00 a c 100 Level 4 1,000.00 P0.00 4,000.00 P0.00 4,000.00 Level 1 P1,000.00 PO.00 5,000.00 P0.00 5,000.00 CR 100 Level 1 na P 1,000.00 P0.00 P6,000.00 0.00 6,000.00 — P0.00 P7,000.00 0.00 P7,000.00 | {| | Po00 | P8,000.00 P0.00 P8,000.00 9,000.00 0.00 9,000.00 P10,000.00 0.00 10,000.00 October | O1RESOURCE G01 | 10/11/2023 0:00 | October | O1RESOURCE_G01 | 10/11/2023 0:05 O1RESOURCE_G01 O01RESOURCE_G01 October 10/11/2023 0:10 October 10/11/2023 0:15 Breach 4 October | 01RESOURCE_G01 Breach 2S October | 01RESOURCE_GO01 10/11/2023 0:20 10/11/2023 0:25 10/11/2023 0:30 wD CR 10! oO October | 01RESOURCE_GO1 Level 4 nia P1,000.00 01RESOURCE_G01 October | 01RESOURCE_G01 | October | O1RESOURCE_Go1 | 10/11/2023 0:45 | October | O1RESOURCE_GO1 | 10/11/2023 0:50 October | 01RESOURCE_G01 | 10/11/2023 0:55 October | 01RESOURCE_GO1 | 10/11/2023 1:00 October | 01RESOURCE_GO1 | 10/11/2023 1:05 | October | O1RESOURCE G01 | 10/11/2023 4:10 CR na P 1,000.00 P 1,000.00 10/11/2023 0:35 Oo a R 100 100 100 10/11/2023 0:40 Level 1 1,000.00 | Breach | rT P 1,000.00 11,000.00 0.00 11,000.00 | Breach | 12 0 1,000.00 12,000.00 0.00 12,000.00 Breach 2 n/a Level 1 | ooo” 1,000.00 12,000.00 1,000.00 Breach 12 Level 1 P0.00 P 1,000.00 12,000.00 2,000.00 | Breach | 12 Level 1 P0.00 P1,000.00 P12,000.00 3,000.00 1?) a 100 100 oO a 13,000.00 14,000.00 P15,000.00 October | 01RESOURCE_GO1 | 10/11/2023 1:15 | Breach | 12 | = | Level 1 P0.00 | p1000.00 | 12,000.00 | 4,000.00 16,000.00 [ October | o1RESOURCE_Go1 | 10/11/2023 1:20 400 Breach 12 ; | po00 += | Pt.00.00 | P12,000.00 | 5,000.00 P17,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 1:25 400 Breach 2 | P0.00 P1,000.00 P 12,000.00 P 6,000.00 P 18,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:30 | t00 | | Breach | 12 ; Level 1 PO.00 P1,000.00 12,000.00 P7,000.00 19,000.00 100 oO Breach P oz | Level 4 PO.00 P 1,000.00 12,000.00 8,000.00 20,000.00 | October | O1RESOURCE_GO1 | 10/11/2023 1:35 === dc2024-06-0019-pages-53.ppm === APPENDIX III-A: SAMPLE PENALTY COMPUTATION FOR RESERVE OFFER CAPACITY COMPLIANCE (ROCC) P9,000.00 10,000.00 21,000.00 22,000.00 Level 1 P1,000.00 P 12,000.00 10/11/2023 1:40 10/11/2023 1:45 10/11/2023 1:50 | ore | 40/11/2023 1:55 October | 01RESOURCE_G01 October | 01RESOURCE_GO1 P12,000.00 11,000.00 P12,000.00 23,000.00 24,000.00 October | 01RESOURCE_G01 12,000.00 October | 01RESOURCE_GO1 P12,000.00 Assumption 2: All intervals indicated here are found in breach of ROCC. The reserve types for which the breach of ROCC is found are Contingency Reserve (CR) and Regulating Reserves (R). All the breaches were committed during the billing month of October. The total count of breaches for each reserve type is: (a) RR = less than 864 intervals; and (b) CR = more than 864 intervals. === dc2024-06-0019-pages-54.ppm === APPENDIX Ill-A: SAMPLE PENALTY COMPUTATION FOR RESERVE OFFER CAPACITY COMPLIANCE (ROCC) Billin i Reserve Registered Reserve es Total CR Total RR CR Penal RR Penal Pen: unni RR Runnin Total Penal ce mesource:|D Delivery. Date Type seats tow Offer, MW Finding oe ane Level » | ee Piven pene goons eg PhP Amount, mi October | O1RESOURCE_G01 | 10/11/20230:00 | cr | 0 | levelt1 | na | —sPi,oo0.00 +=] ~~ Po.o0 ~~ | ~=—SsP,000.00 ‘| 1,000.00 O1RESOURCE_GO1 | 10/11/2023 0:05 CR 100 0 Breach | teveli | na | —-Pt,o0000 +~=~| ooo | 2,000.00 | 0.00 P2,000.00 | October | O1RESOURCE_GO1 | 10/11/2023 0:10 CR 100 0 Breach [tevel1 | na _——i| ~——s1,00000 +=] = Po.00 ~~ | ~—P 3,000.00 _—*| 0.00 P3,000.00 | October | OIRESOURCE_GO1 | 10/11/2023 0:15 0 Breach | tevelt [| wa «| ——sPt,000.00_—s=*' P0.00 4,000.00 | 4,000.00 __| | October | O1RESOURCE_GO1 | 10/11/2023 0:20 0 Breach | 5 | | Levelt _| na 1,000.00 ne P5,000.00 | _P5,000.00 | | October | 01RESOURCE_GO1 | 10/11/2023 0:25 | o | Breach | 6 ‘| | Levelt | nla 1,000.00 0.00 6,000.00 | _P6,000.00 | | October | O1RESOURCE_GO1 | 10/11/2023 0:30 | o | Breach | 7 | | Levelt | nla 1,000.00 P0.00 P7,000.00 | _P7,000.00 | [0 | tever [a | October | 01RESOURCE_GO1 | 10/11/2023 0:35 0 | _Pi,000.00 i 0.00 P8,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 0:40 0 | level1 | nas] ——sPt,000.00_—s=*”| 0.00 P9,000.00 | October | O1RESOURCE_GO1 | 10/11/2023 0:45 0 Breach 10 Level 1 nla 1,000.00 | 10,000.00 _| 0.00 10,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 0:50 CR 100 0 Breach 1 a nia 1,000.00 | 11,000.00 _| P0.00 11,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 0:55 CR 100 0 Breach 12 | Oo | Levelt | 1,000.00 P0.00 12,000.00 | _P 12,000.00 | | October | O1RESOURCE_GO1 | 10/11/2023 1:00 RF 100 0 a ee eee ee P0.00 1,000.00 12,000.00 1,000.00 13,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 1:05 RR 100 0 | 2 Level 1 0.00 | P1,000.00 | 12,000.00 | 14,000.00 | October | O1RESOURCE G01 | 10/11/2023 1:10 + Sf Beret] 3 Wa Level 1 P0.00 | P1,000.00 | 12,000.00 3,000.00 P 15,000.00 | October | 01RESOURCE_GO1 | 10/11/2023 1:15 Breach 12 ———————— P 1,000.00 12,000.00 4,000.00 16,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:20 a 42 5 [ ma | _itevel? | P0000 ~——*(||~——«P 1,000.00 12,000.00 5,000.00 | 17,000.00 | October | O1RESOURCE_GO1 | 10/11/2023 1:25 RR | — Breach 12 ——} 3} 81 +} oe P1,000.00 12,000.00 6,000.00 18,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:30 RE 100 Breach | 12 | ~- | na | Levelt | P1,000.00 12,000.00 7,000.00 P19,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:35 RF 4100 ——— Level 4 1,000.00 P 12,000.00 P8,000.00 20,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:40 —— Breach | 12 | 23 | Level 1 P1,000.00 12,000.00 9,000.00 21,000.00 October | 01RESOURCE_GO1 | 10/11/2023 1:45 Breach | 12 | 19 | na | Levelt P0.00 1,000.00 P 12,000.00 P10,000.00 22,000.00 October | O1RESOURCE_GO1 | 10/11/2023 1:50 RR | 0 | Breach | 12 [| 3: | mwa | Levelt 0.00 1,000.00 12,000.00 11,000.00 23,000.00 F October | OARESOURCE GOT | 10/11/2025 155 [0 [breach [a2 wa | _tevel | 0.00 | P.000.00 | 12,000.00 | 12,000.00 | 24,000.00 | october | o1RESOURCE_Got | _10/1%/2023200 | cA a A October | O1RESOURCE_GO1 | 10/11/2023 2:05 CR 100 Breach 14 | 12 | stevel1 [| = rva——s|Pt000.00~—s*Y P0.00 12,000.00 26,000.00 air eres | aaaeneaent | eet — eat | ee ee 12,000.00 | _P27,000.00 ee a pp: |: f: f=: P : ft : [ : [October | OFRESOURCE_Got | Toraroxs ris | _cR | 100 SS a a [Poco ___|_Pa72,o0000 | Pr2,000.00 | _Pe84,000.00_| | October | O1RESOURCE_GO1 | 10/14/2023 1:20 CR Breach 369 | 12 | tevet2 | 2,000.00 | 0.00 _| 874,000.00 | 12,000.00 | 886,000.00 | | October | O1RESOURCE_GOt | 10/14/2023 1:25 | __CR j—seseh_|__20__] 2 | teva | ma | 2,000.00 | Po.00 | P876,000.00 | P12,000.00 | 888,000.00 _| [october [ o1RESOURCE Gor | 10/4/2029 1:30 | CR _| preach [__ ai 2 tevei2 | Wa | 2,000.00 | 0.00 | 878,000.00 | 12,000.00 | _Pa90,000.00_| === dc2024-06-0019-pages-55.ppm === APPENDIX III-B: SAMPLE PENALTY COMPUTATION FOR RESERVE CONFORMANCE STANDARDS (RCS) A. Involving One Reserve Type Assumption 1: All intervals indicated here are found in breach of RCS. The total count of breaches for October billing period is 864 intervals. The reserve type for which the breach of RCS is found is Contingency Reserve (CR) Scheduled Capacity, MW Breach Count (Running Total) Applicable Rate, PhP / kWh Penalty Amount, PhP* Billing Period Resource ID Delivery Date Running Total, PhP Penalty Level October 01RESOURCE_G01 10/11/2023 0:00 P8,062.50 1 Level 1 | October _| 01RESOURCE_G01 10/11/2023 0:05 | __ Breach | 8,062.50 P16,125.00 2 Level 1 October 01RESOURCE_G01 10/11/2023 0:10 Breach P8,062.50 P24,187.50 3 Level 1 October 01RESOURCE_G01 10/11/2023 0:15 Breach 8,062.50 32,250.00 4 Level 1 October 01RESOURCE_G01 10/11/2023 0:20 ; [Breach =| 8,062.50 = | Ss 40,312.50 5 Level 1 ee a Ee NE 3 ; : | October _—_—_—| OARESOURCE_G01 10/13/2023 23:55 [ocr Of S| reach 8,062.50 P6,966,000.00 864 Level 1 Assumption 2: All intervals indicated here are found in breach of RCS. The total count of breaches for the October billing period exceeded 864 intervals. The reserve type for which the breach of RCS is found is Contingency Reserve (CR) ae A . Reserve Billing Period Resource ID Delivery Date | on October 01RESOURCE_G01 10/11/2023 0:00 | October _—_—_—| O1RESOURCE_G01 10/11/2023 0:05 | October _—_—_—‘| O1RESOURCE_GO1 10/11/2023 0:10 October 01RESOURCE_G01 10/11/2023 0:15 October 01RESOURCE_G01 10/11/2023 0:20 October 01RESOURCE_G01 10/11/2023 0:25 Scheduled Capacity, MW Applicable Rate, PhP / kWh Breach Count (Running Total) Finding Penalty Amount, PhP Running Total, PhP Penalty Level Level 1 Level 1 Sf — 28 Breach 8,062.50 cR [2s 86 Breach 8,062.50 [ ocR. | 86 Breach 8,062.50 2 [ck Tk 86 Breach 8,062.50 P8,062.50 P16,125.00 P24,187.50 P32,250.00 40,312.50 P48,375.00 Level 1 Level 1 Level 1 Level 1 | October _—_—| O1RESOURCE_G01 10/13/2023 23:55 CR 2.25 86 Breach 8,062.50 P6,966,000.00 864 Level 1 | October ~——| OARESOURCE_G01 10/14/2023 0:00 cR Breach 16,125.00 P6,982,125.00 Level 2 October 04RESOURCE_GO1 10/14/2023 0:05 cR 2.25 86 Breach P16,125.00 P6,998,250.00 Level 2 1 /Scheduled Capacity in MW x Applicable Rate in kWh ea 12 2 *Note: Formula for Penalty Amount: Penalty Amount = === dc2024-06-0019-pages-56.ppm === APPENDIX Ill-B: SAMPLE PENALTY COMPUTATION FOR RESERVE CONFORMANCE STANDARDS (RCS) B. Involving Two (2) Reserve Types Assumption 1: All intervals indicated here are found in breach of RCS. The reserve types for which the breach of RCS is found are Contingency Reserve (CR) and Regulating Reserves (8). All the breaches were committed during the billing month of October. The total count of breaches for each reserve type is less than 864 intervals. ee Resource 1D | tne one | a Rate PRP ‘capacity, nna | ‘Breach ‘sr rach a. a, Peel A CR ee Total, RR Pony mourns RR ia Total, October 01RESOURCE_G01 10/11/2023 0:00 cR 2.25 86 | Breach [| 1 2 | Level 4 Levelt | 8,062.50 =| ~——P 8,062.50 P0.00 P0.00 October 01RESOURCE_GO01 10/11/2023 0:05 Breach 2 Level 1 oe P8,062.50 16,125.00 PO.00 October O1RESOURCE_GO1 10/11/2023 0:10 Breach 3. | o | tevelt | Levelt | 78,062.50 24,187.50 PO.00 October O1RESOURCE_G01 10/11/2023 0:15 Breach 4 | 0 | tevel1 | Level? | 8,062.50 32,250.00 P0.00 P0.00 October 01RESOURCE_G01 10/11/2023 0:20 Breach 5 a Level 1 P8,062.50 40,312.50 P0.00 P0.00 October O1RESOURCE_GO1 40/11/2023 0:55 | o | tevel1 | Leveli | 8,062.50 P96,750.00 fcgle | PO.00 October 01RESOURCE_GO1 10/41/2023 1:00 | 7 | tevelt [Levelt =| Ss P.ooS——s||S96,750.00__—i'| 10,750.00 P 10,750.00 10/11/2023 1:05 10/11/2023 1:10 10/11/2023 1:15 10/11/2023 1:20 |__ October _| | October _| 01RESOURCE_G01 01RESOURCE_G01 01RESOURCE_G01 01RESOURCE_G01 Level 4 Level 1 Level 4 Level 1 PO.00 | _ 96,750.00 | Level 1 Level 1 P0.00 96,750.00 | 2 | tevelt =| Levelt P0.00 96,750.00 3 P0.00 | Breach | 12 24 Level 1 Level 1 P0.00 96,750.00 October O1RESOURCE_G01 40/11/2023 2:55 10,750.00 21,500.00 P96,750.00 10,750.00 P32,250.00 P43,000.00 P53,750.00 10,750.00 10,750.00 10,750.00 258,000.00 Assumption 2: All intervals indicated here are found in breach of RCS. The reserve types for which the breach of RCS is found are Contingency Reserve (CR) and Regulating Reserves (iR®). All the breaches were committed for the billing month of October. The total count of breaches for each reserve type is: (a) RR = less than 864 intervals; and (b) CR = more than 864 intervals. 354,750.00 === dc2024-06-0019-pages-57.ppm === APPENDIX III-B: SAMPLE PENALTY COMPUTATION FOR RESERVE CONFORMANCE STANDARDS (RCS) sais Appli heduled Total CR | Total RR . : mite Resource ID Delivery Date _ Soageny eee |e ome Breach ee i enue nn CR ae Total, RR Renal seamen RR sai y Total, kWh MW Count Count ? October 01RESOURCE_G01 10/14/2023 0:00 ee ee 1 0 Level 1 Level 1 8,062.50 P8,062.50 0.00 0.00 October 01RESOURCE_G01 10/11/2023 0:05 cr. | 225 | 86 | Breach | 2 0 Level 1 Level 1 8,062.50 16,125.00 0.00 P0.00 October OIRESOURCE Goi | tovz0230:10 | cr | 225 | 86 | Breach | 3 | 0 | Levelt | tevela_ [| pa.cez.so_ | 2a.te7.s0__— 0.00 0.00 | October | _01RESOURCE_GO1 10/11/2023 0:15 CR [228 _{ a8 _|_rezeh_{ if _ Levelt | Levelt | ‘8,062.50 32,250.00 P0.00 0.00 October 01RESOURCE_G01 10/11/2023 0:20 cR 2 | 86 | Breach | 5 Levelt | Level? | 98,062.50 _—i| 40,312.50 P0.00 0.00 October O1RESOURCE_G01 | 10/11/2023 0:25 CR 2.25 86 | Breach | 6 | 0 | Levelt | Levelt | 78,062.50 | 48,375.00 P0.00 P0.00 October 01RESOURCE_G01 10/11/2023 0:30 [ok | a5 [ss resem {7 fof tevelt fever P56,437.50 P0.00 P0.00 October OIRESOURCE_G01 | 10/41/2023 0:35 CR 225. | 86 | Breach | 8 | Levelt | Levelt | 8,062.50 | 64,500.00 _—i| P0.00 P0.00 | October__| _01RESOURCE_GO1 10/11/2023 0:40 CR 2.25 86 | Breach | 9 | 0 | Levelt | Levelt | 8,062.50 | P72,562.50 P0.00 P0.00 October 01RESOURCE_G01 10/41/2023 0:45 CR 2.25 86 | Breach | 10 | O | Levelt | Levelt | 8,062.50 80,625.00 0.00 P0.00 October 01RESOURCE_G01 10/11/2023 0:50 | 22 | 86 | Breach | 17 [| 0 | tevel1 | Levelt 8,062.50 88,687.50 0.00 0.00 | _October__| _O01RESOURCE_GO1 10/11/2023 0:55 See Level 1 8,062.50 P96,750.00 0.00 P0.00 | October | O1RESOURCE Got _[ 10/11/2023 1:00 3 | 66 | Breach | 12 | ' | tevel1 | tevelt | 0.00 | 96,750.00 P 10,750.00 10,750.00 October 01RESOURCE_G01 10/11/2023 1:05 = 86 [Beech | 2 2 | Levelt | Levelt | Pooo | 96,750.00 10,750.00 21,500.00 October 01RESOURCE_GO1 10/11/2023 1:10 3 86 Breach | 12 | 3 | tevelt | Levelt 0.00 96,750.00 10,750.00 32,250.00 October 01RESOURCE_G01 10/11/2023 1:15 aS eee Level 1 Level 1 P0.00 |___ 96,750.00 __—i| 10,750.00 43,000.00 October 01RESOURCE_G01 10/11/2023 1:20 3 | 86 | Breach | 12 | Level 1 96,750.00 10,750.00 P53,750.00 October 01RESOURCE_G01 10/41/2023 1:25 3 | 86 | Breach | 12 | 56 | Levelt Level 1 96,750.00 10,750.00 64,500.00 01RESOURCE_G01 10/11/2023 1:30 3 86 | Breach | 12 | 7 | Levelt Level 1 | 996,750.00 | 10,750.00 75,250.00 | October | _01RESOURCE_GO1 10/11/2023 1:35 3 86 | Breach | 12 | 8 | Levelt Level 1 | P96,750.00 __—i«| 10,750.00 86,000.00 | October | _O1RESOURCE_GO1__| 10/11/2023 1:40 [3 | 8 | Breach | 12 | © [| level? | Levelt | _P96,750.00 ‘| 10,750.00 96,750.00 Ocober | O1RESOURCE Gor | 70/11/2023 1.45 ps8 reach | epee tev | poo | ae.7s0.00 | _Pto.rs0.00 107,500.00 | October | _01RESOURCE_GO1 10/11/2023 1:50 | 3 | 8 | Breach | 12 [ Level? | Levelt? [| Poco —si*T P96 ,750.00 10,750.00 118,250.00 | October | _O01RESOURCE_GO1 10/11/2023 1:55 2 ee 12 Level 1 Levelt | POD Si” 96,750.00 10,750.00 129,000.00 | October | _01RESOURCE_GO1 10/14/2023 2:00 3 [86 | Breach | 12 | 3 Level 1 [tet | P 10,750.00 139,750.00 F october | _o1REsoURCE cor | 40/11/2023 205 a 10,750.00 50,500.00 | October | O1RESOURCE_GO1 | 10/11/2023 2:10 3 | 86 | Breach | 12 | ‘5 | Levelt | Levelt ae 96,750.00 10,750.00 161,250.00 October 01RESOURCE_G01 40/11/2023 2:15 3 | a6 | Breach | 12 | “& | Levelt | Levelt 0.00 P96,750.00 10,750.00 172,000.00 October 01RESOURCE_G01 10/11/2023 2:20 3 86 Seat 7 Levelt | Leveli | 0.00 | 96,750.00 —si| P 10,750.00 P182,750.00 | _October | _O01RESOURCE_G01 10/11/2023 2:25 | ke 3 86 | Breach | 12 Level 4 0.00 | _P96,750.00 _—i| 10,750.00 193,500.00 | October | _O01RESOURCE_GO1 10/11/2023 2:30 RR | —_3__| _s8 __}_resen_{ 2 Level 1 Level 1 0.00 96,750.00 10,750.00 204,250.00 | October | _01RESOURCE_GO1 10/11/2023 2:35 Re [2 | 8} sreaeh 12 2 | teveli | Poon =i 96,750.00 10,750.00 215,000.00 October OIRESOURCE_GO1__| 10/11/2023 2:40 R 3 [86 | Breach | 12 [| 2 | level1 | level? | 000 | 96,750.00 __—i| 10,750.00 225,750.00 October OIRESOURCE_GO1__| 10/11/2023 2:45 3 86 [| Breach | 12 [| 2 Level 1 Level 1 | _P96,750.00 | P 10,750.00 236,500.00 | October | _01RESOURCE_GO1 10/11/2023 2:50 R 3 86 | Breach | 12 | Level 1 Level 1 P0.00 P96,750.00 10,750.00 247,250.00 _| | October | 01RESOURCE_GO1 10/11/2023 2:55 : 3 | 86 | Breach | 12 [| 2 Levelt? | Level? | POO si” 96,750.00 10,750.00 258,000.00 | October | _01RESOURCE_GO1 10/11/2023 3:00 2.25 86 | Breach | 13 [| 24 | Levelt 306250 | Ptosei2so | 000 (| 258,000.00 | October 01RESOURCE_G01 10/41/2023 3:05 2.25 86 | Breach | ‘4 | 24 | Levelt 8,062.50 P112,875.00 0.00 258,000.00 October O1RESOURCE_GO1 _| 10/11/2023 3:10 2.25 | 66 | Breach | 15 | 24 | Levelt | 8,062.50 120,937.50 P0.00 258,000.00 === dc2024-06-0019-pages-58.ppm === APPENDIX Ill-B: SAMPLE PENALTY COMPUTATION FOR RESERVE CONFORMANCE STANDARDS (RCS) Applicable Scheduled Total CR | Total RR Billin ¥ - a a CR Pi i mount, | RR Running Total, hese Resource ID Delivery Date a I Coney, Finding Maem pee bette al al Aaron PRP mS oe me RR ur : PhP October 01RESOURCE_G01 10/11/2023 3:15 2.25 86 Breach 16 24 Level 1 Level 1 8,062.50 129,000.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 1:50 2.25 86 Breach 863 24 Level 1 Level 1 8,062.50 P6,957,937.50 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 1:55 2.25 86 Breach 864 24 Level 1 Level 1 8,062.50 P6,966,000.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 2:00 2.25 86 Breach 865 24 Level 1 16,125.00 P6,982,125.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 2:05 2.25 86 Breach 866 24 Level 2 Level 4 16,125.00 P6,998,250.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 2:10 2.25 86 Breach 867 24 Level 2 Level 1 P16,125.00 P7,014,375.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 2:15 2.25 86 Breach | 24 | P16,125.00 P7,030,500.00 0.00 258,000.00 October 01RESOURCE_GO01 10/14/2023 2:20 2.25 86 Breach -—2_}_tevel2 Level 1 P16,125.00 P7,046,625.00 0.00 258,000.00 October 01RESOURCE_G01 10/14/2023 2:25 2.25 86 a [| 24 | _Level2 Level 1 16,125.00 P7,062,750.00 0.00 258,000.00 Total oa P7,320,750.00