Definitions Part 2

September 30, 2021 8 minutes • 1625 words

Name	Definition
^yy Lifeline Rate	The subsidized rate given to Marginalized/low-income Captive Market End-users who cannot
afford to pay at full cost
^zz Marginalized End-users	Low-income, captive, household electricity consumers who cannot afford to pay at full cost and have levels of electricity consumption below a threshold level to be determined by the ERC
^aaa Market Fees	The charges imposed on all market members by the Market Operator to cover the cost of administering and operating the WESM, as approved by the ERC
^bbb Market Operator	Either the “Autonomous Group Market Operator” or “AGMO” constituted by the DOE under Section 30 of the Act, with equitable representation from Electric Power Industry Participants, initially under the administrative supervision of the TRANSCO, which shall assume the functions, assets and liabilities of the AGMO or the IMO, the entity jointly endorsed by the DOE and Electric Power Industry Participants to assume the functions, assets
and liabilities from AGMO pursuant to Section 30
^ccc Merit Order Dispatch Instructions	The dispatch schedule that will be submitted by the Market Operator to the Grid/system operator for the purpose of providing Central Dispatch
^ddd Missionary Electrification	the provision of basic electricity service in Unviable Areas with the ultimate aim of bringing the operations in these areas to viability levels
^eee National Electrification Administration or NEA	the government agency created under PD 269, as amended
^fff NAPOCOR	The government corporation created under RA 6395, as amended
^ggg National Transmission Corporation or TRANSCO	The corporation organized pursuant to the Act to acquire all the
transmission assets of the NAPOCOR
^hhh Open Access	The system of allowing any qualified Person the use of transmission, and/or Distribution System and associated facilities subject to the payment of transmission and/or distribution retail wheeling rates duly approved by the ERC. For this purpose, qualified Persons shall include all WESM Participants
ⁱⁱⁱ Person	A natural or juridical person
^jjj Philippine Energy Plan or PEP	the overall energy program formulated and updated yearly by the DOE and submitted to Congress pursuant to RA 7638
^kkk Philippine Stock Exchange or PSE	The corporate body licensed to operate as a securities exchange by the SEC
^lll Power Commission	The Joint Congressional Power Commission created pursuant to Section 62
^mmm Power Development Program or PDP	The indicative plan for managing electricity demand through energy-efficient programs and for the upgrading, expansion, rehabilitation, repair and maintenance of power generation and transmission facilities, formulated and updated yearly by the DOE in coordination with the generation, transmission and Distribution Utility companies
ⁿⁿⁿ PSALM	The corporation created pursuant to Section 49
^ooo Privatization	The sale, disposition, change and transfer of entire ownership and control of all assets and IPP contracts from the Government or a government corporation to a private Person or entity
^ppp Qualified DUs” refer to DUs that are technically and financially capable of owning, operating,
maintaining, upgrading and expanding subtransmission facilities in
accordance with the requirement
^qqq Referendum	An electoral process which Bonafide Members of ECs register their respective vote on the issue of conversion, through secret balloting, in designated voting centers, the conduct of
which shall be under the supervision of NEA;
^rrr Related Group	A Person and any business entity Controlled by that Person, along with the Affiliates of such business entity, and the directors and officers of the business entity or its Affiliates, and relatives by consanguinity or affinity, legitimate or common law, within the fourth civil degree, of the Person or any of the
foregoing directors or officers
^sss Renewable Energy Resources	Energy resources that do not have an upper limit on the total quantity to be used. Such resources are renewable on a regular basis and the renewable rate is rapid
enough to consider availability over an indefinite time. These include,
among others, biomass, solar, wind, hydro and ocean energy;
^ttt Restructuring	The process of reorganizing the electric power industry in order to introduce higher efficiency, greater innovation and End-user choice. It shall be understood as covering a range of alternatives enhancing exposure of the industry to competitive market forces
^uuu Retail Rate	The total price paid by End-users consisting of
the charges for generation, transmission and related Ancillary
Services, distribution, supply and other related charges for electric
service;
Page 15 of 100(vvv) “Retail Competition” refers to the provision of electricity to a
Contestable Market by Suppliers through Open Access;
(www) “Return-On-Rate-Base” or “RORB” refers to the rate setting
methodology as determined by the ERC whereby TRANSCO or its
Buyer or Concessionaire and DUs are allowed to
recover just and reasonable costs and earn a reasonable return so as
to enable such entities to operate viably;
(xxx) “Rural Electrification” refers to the delivery of basic electric
services, consisting of power generation, subtransmission and/or
extension of associated power delivery system that would bring about
important social and economic benefits to the countryside;
(yyy) “Rural Electrification Loan” refers to financial obligations strictly
incurred for Rural Electrification;
(zzz) “Rural Electrification Program” refers to the National Government
plan to achieve total electrification of the countryside for the purpose
of fostering economic development and uplifting the living standards
of the Filipino people;
(aaaa) “Self-Generation Facility” refers to a power Generation Facility
owned and constructed by an End-user for such End-user’s own
consumption or internal use excluding Generation Facilities for use
by households, clinics, hospitals and other medical facilities;
(bbbb)
“Small Power Utilities Group” or “SPUG” refers to the
functional unit of NAPOCOR created to pursue Missionary Electrification
function;
(cccc) “Small Distribution Company” refers to a Distribution Utility whose
peak demand is equal to or less than ten (10) megawatts;
(dddd)
“Stock Cooperative” refers to a duly-registered association of
Persons with a common bond of interest, who have voluntarily joined
together to achieve a lawful common social or economic end, making
equitable contributions to the capital required and accepting a fair
share of the risks and benefits of the undertaking in accordance with
the universally-accepted cooperative principles as defined under
Article 4, Chapter 1 of Republic Act No. 6938, otherwise known as the
“Cooperative Code of the Philippines;”
(eeee) “Stock Corporation” refers to an artificial being created by operation
of law with capital stock divided into shares and authorized to
distribute to its shareholders dividends out of its surplus profits,
having the right of succession and the powers, attributes and
properties expressly authorized by law or incident to its existence;
(ffff)
“Stranded Contract Costs of Eligible Contracts of Distribution
Utilities” refer to the excess of the contracted cost of electricity under
eligible contracts of DUs over the actual selling price
of the contracted energy output of such contracts that would be
incurred upon Retail Competition and Open Access. For this purpose,
Page 16 of 100“eligible contracts” are contracts which have been approved by the
ERB as of 31 December 2000;
(gggg) “Stranded Contract Costs of NAPOCOR” refer to the excess of the
contracted cost of electricity under eligible contracts of NAPOCOR over the
actual selling price of the contracted energy output of such contracts
in the market. Such contracts shall have been approved by the ERB
as of 31 December 2000;
(hhhh)
“Stranded Debts of NAPOCOR” or “Stranded Debts ” refer to any
unpaid financial obligations of NAPOCOR which have not been liquidated by
the proceeds from the sales and Privatization of NAPOCOR assets: Provided,
however, That such obligations include any of such obligations
refinanced by PSALM: Provided, further, That such refinancing of such
unpaid obligations shall not result in increasing the Universal Charge
burden;
(iiii) “Subtransmission Assets” refer to the facilities related to the power
delivery service below the transmission voltages and based on the
functional assignment of assets including, but not limited to step-
down transformers used solely by load customers, associated
switchyard/substation, control and protective equipment, reactive
compensation equipment to improve customer power factor, overhead
lines, and the land where such facilities/equipment are located.
These include NAPOCOR assets linking the transmission system and the
Distribution System which are neither classified as generation nor
transmission;
(jjjj) “Subtransmission System or
Subtransmission Assets;
refers
to
systems
comprised
of
(kkkk) Supplier	Any Person licensed by the ERC to sell, broker, market or aggregate electricity to End-users;
(llll) Supplier’s Charge	The charge imposed by Suppliers for the sale of electricity to End-users, excluding the charges for generation, transmission and distribution wheeling
^mmmm Supply of Electricity	The sale of electricity by a party other than a Generation Company or a Distribution Utility in the Franchise Area of a Distribution Utility using the wires of such DU
(nnnn) Technical Constraints	The line, equipment, and other limitations as defined in the WESM Rules, Grid Code and Distribution Code
^oooo Transmission Charge	The regulated cost or charges for the use of a transmission system which may include the availment of Ancillary Services
^pppp Transmission Development Plan or TDP	The program for managing the transmission system through efficient
planning for its expansion, upgrading, rehabilitation, repair and maintenance, to be formulated by DOE and implemented by the
TRANSCO or its Buyer or Concessionaire pursuant to the Act
(qqqq) “Transmission of Electricity” refers to the conveyance of electricity
through the high voltage backbone system
^rrrr Universal Charge	The charge, if any, imposed for the recovery of the Stranded Debts, Stranded Contract Costs of NAPOCOR, and Stranded Contract Costs of Eligible Contracts of DUs
and other purposes pursuant to Section 34
^ssss Unviable Area	A geographical area within the Franchise Area of a Distribution Utility where immediate extension of distribution line is not feasible
^tttt WESM	The Wholesale Electricity Spot Market
^uuuu WESM Participants	All Generation Companies, DUs, Suppliers, Aggregators, End-users, the
TRANSCO or its Buyer or Concessionaire, IPP Administrators, and other entities authorized by the ERC to participate in the WESM
^vvvv WESM Rules	The detailed rules that govern the administration and operation of the WESM.

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