REF NO.

: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 1 of 17

ATTENDEES
Department/
Name Designation/Position
Company
1 Jesusito G. Morallos Member, Independent RCC
2 Fernando Martin Y. Roxas Member, Independent RCC
3 Jose Roderick F. Fernando Member, Independent RCC
4 Dixie Anthony R. Banzon Member, Generation Sector RCC
5 Cherry A. Javier Member, Generation Sector RCC
6 Carlito C. Claudio Member, Generation Sector RCC
7 Jessie Victorio Member (Alternate), Generation Sector RCC
8 Mark D. Habana Member, Generation Sector RCC
9 Michelle S. Tuazon Member (Alternate), Generation Sector RCC
10 Ryan S. Morales Member, Distribution Sector RCC
11 Nelson M. Dela Cruz Member, Distribution Sector RCC
12 Virgilio C. Fortich, Jr. Member, Distribution Sector RCC
13 Ricardo G. Gumalal Member, Distribution Sector RCC
14 Lorreto H. Rivera Member, Supply Sector RCC
15 Ambrocio R. Rosales Member, System Operator RCC
16 Isidro E. Cacho, Jr. Member, Market Operator RCC
17 John Mark S. Catriz RCC Secretariat PEMC
18 Karen A. Varquez RCC Secretariat PEMC
19 Divine Gayle C. Cruz RCC Secretariat PEMC
20 Dianne L. De Guzman RCC Secretariat PEMC
21 Kathleen R. Estigoy RCC Secretariat PEMC
22 Melanie Papa Observer DOE
23 Karen Anne H. Siruma Market Operator IEMOP
24 Arjon B. Valencia Market Operator IEMOP
25 Atty. Lilibeth Grace L. Vetus Market Operator IEMOP
26 Sergio Villafuerte Proponent NPC
27 Ken Trinidad Proponent NPC

Page 1 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 2 of 17

Agenda Agreements / Action Taken / Action Required

I. Call to Order • Upon request of RCC Chairperson Concepcion I. Tanglao, Atty.
Jesusito G. Morallos (Independent) presided the 198th Meeting
in her absence.
• Atty. Morallos called the meeting to order at 9:02 AM.

II. Determination of Quorum Fourteen (14) principal members and two (2) alternate members
were present during the meeting.

III. Adoption of Agenda The agenda was approved, as revised.

IV. Approval of Minutes of Previous • 193rd (Special) Meeting, 25 Mar 2022 – approved as
Meeting amended
• 193rd (Special) Meeting, 25 • 194th (Special) Meeting, 20 Apr 2022 – provisionally
Mar 2022 approved, subject to further comments from RCC until 19 July
• 194th (Special) Meeting, 20 2022 (Tuesday)
Apr 2022 • 197th (Regular) Meeting, 27 Jun 2022 - provisionally
• 197th (Regular) Meeting, 27 approved, subject to further comments by IEMOP (Mr. Edward
Jun 2022 I. Olmedo, regarding covered period of the percentage of
Pricing Error Notices due to input error mentioned in the
discussion) and the RCC until 19 July 2022 (Tuesday).
V. Matters Arising from Previous Meeting
5.1. Proposed Amendments to Presenter: Divine Gayle C. Cruz (Secretariat)
the WESM Manual on
Registration, Suspension Action Requested: For approval to defer deliberation
and De-registration Criteria
and Procedures regarding Proceedings:
Test and Commissioning
Penalty Framework • PEMC (proponent) requested to defer the deliberation of the
proposal in consideration of further consultations with PEMC
Management, the Market Surveillance Committee, and the
Compliance Committee on PEMC’s responses to the
comments received.

• Seven (7) entities submitted comments to the proposal:

1) Aboitiz Power Corp.

2) NGCP
3) Millennium Energy, Inc./Panasia Energy, Inc.
4) IEMOP
5) Technical Committee
6) MERALCO
7) First Gen
Page 2 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 3 of 17

Agenda Agreements / Action Taken / Action Required

Agreement:

• The proposal shall be tabled for deliberation during the 199th

(Regular) Meeting on 19 August 2022.

5.2. Update on RCC Resolution Presenter: Divine Gayle C. Cruz (Secretariat)

No. 2022-09: Proposed
Amendments to the WESM Action Requested: For Discussion
Manual on Dispatch Protocol
regarding Non-security Over- Materials:
riding Constraints Annex A – Presentation Material

Proceedings:

• Ms. Cruz provided a background regarding the PEM Board’s

feedback on the subject proposal when it was presented to the
PEM Board during its 49th meeting last 29 June 2022. The PEM
Board’s agreement is as follows 1:

Deferred for further review/study.

The PEM Board concurred with Dir. Danel Aboitiz, that the
hydroelectric power plants can simply adjust their trading
strategy and that the current manual on dispatch protocol is still
working and need not be amended.

The Board then approved to defer the said proposal for further
review/study of the Committee.

Ms. Cruz proceeded to emphasize that the RCC, as indicated

in RCC Resolution No. 2022-09 submitted to the PEM Board
prior its meeting, in fact concurs with the comments of Dir.
Aboitiz. Per the RCC’s Resolution:

WHEREAS, notwithstanding the proposed amendments and

the RCC’s revisions thereto, the RCC noted that the NPC as
the dam operator is cognizant that: (i) strategizing offers is the
primary manner by which its Trading Participant could increase
the likelihood of being dispatched, and by extension facilitate
the pre-emptive release of stored water from the dams, and (ii)

1
PEMC Office of the Corporate Secretary. PEM Board directive. Received via email on 29 June 2022.
Page 3 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 4 of 17

Agenda Agreements / Action Taken / Action Required

NPC may need to change its coordination protocols with the
plant operator;

Ms. Cruz added that the minutes of the RCC deliberation

likewise documents that the NPC was sufficiently informed
about managing offers in order to be dispatched and the NPC’s
statement that they may need to change its internal procedures
with the plant operator.

Atty. Morallos, who presented the proposal to the PEM Board,

recounted that he even mentioned NPC’s arguments which are:
(i) relying solely on strategizing offers without the support of the
proposal is impractical, (ii) that the NPC assured it will not
abuse using the amendment should the proposal be approved,
and (iii) that the Trading Participant shall be a price-taker, for
emphasis. Atty. Morallos explained that the PEM Board might
be expecting the RCC to either augment the proposal or
withdraw it entirely.

• Prof. Roxas (Independent) sought clarification if the issue is not

merely about NPC’s coordination with its partner Trading
Participant, but about the possible bifurcation of interest that
may not always coincide between NPC, who is responsible for
ensuring dam safety, and the Trading Participant who is
concerned with the commercial aspect.

Ms. Javier (APC) responded that power generation is usually

the last priority when it comes to dam operations. For instance,
irrigation requirements or water requirements for consumption
are prioritized before power generation.

• Mr. Serge Villafuerte (NPC) confirmed that NPC as the dam

operator is not involved with the commercial operations of the
power plants nor concerned with maximizing its profits but is
only concerned with the safety of the dams. He stated that this
should arrest any concern that the NPC would abuse the
proposal. NPC expressed its intention to still pursue the
proposal in the PEM Board through the RCC.

Discussion on the Characteristics of NPC Dams

• Mr. Claudio (MEI/PEI) inquired (i) if NPC is also responsible for

dams with power plants that were already privatized (i.e.,
Page 4 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 5 of 17

Agenda Agreements / Action Taken / Action Required

Ambuklao, Binga, Magat, Pantabangan, Angat), and (ii) what is
unique with the Caliraya and San Roque Dams that NPC is
making this proposal. Ms. Javier reminded that CBK is still
government-owned via NPC-PSALM, so coordination between
NPC Dam Operations and NPC-PSALM is essentially an
internal process.

Atty. Morallos inquired if the uniqueness lies on the nature of

the dams themselves, or the ownership/management of the
power plants. Considering that CBK hydropower is still
government-owned, Atty. Morallos asked if the ownership
structure might have contributed to the difficulty of NPC in
coordinating with its Trading Participant on short notice.

Mr. Ken Trinidad (NPC) replied that Caliraya Dam is particularly

unique such that spilling operations through the spillway gates
has never been conducted for Caliraya since doing so may be
catastrophic to nearby communities.

Mr. Villafuerte expounded that one unique characteristic of

Caliraya is its short river channel downstream resulting to its
short distance from the populated area. Thus, water releases
coming from Caliraya Dam through the spillway gate would not
take long to reach the highly populated communities. Caliraya
is different from other dams like Ambuklao dam since the latter
has a large catchment area via the San Roque reservoir.

Other than Caliraya, San Roque and Angat dams are also
subjects of concern since these dams have large capacities
with communities located downstream. Because of their large
capacities, water releases also tend to be huge in times of
calamities threatening the populated communities nearby.

• Mr. Villafuerte likewise confirmed that Caliraya and Kalayaan

use the same reservoir, while Botocan power plant is a separate
facility. He added that they are being operated by CBK Power
Corporation through a contract.

• Mr. Fortich (CEBECO 3) asked the following: whether the

operator of the CBK hydropower plant requested NPC to
maintain the dams or if it is NPC’s initiative, (ii) if the power plant
company is located near the dams, and (iii) if there is
communication between NPC and the power plant operators.
Page 5 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 6 of 17

Agenda Agreements / Action Taken / Action Required

Mr. Villafuerte explained that there are legal documents

mandating NPC to maintain and operate the dams under its
management. He also confirmed that the hydropower plant
companies are located downstream the dam reservoir. NPC
and the power company do communicate but not much
pertaining to operations during calamities as they seldom
happen. However, NPC is anticipating the extreme and risky
scenarios.

• Atty. Morallos summed up that the uniqueness of the dams

mentioned lies on their characteristics and not in the ownership
structure.

Discussion on System Operator Responsibility

• Mr. Rosales (NGCP-SO) clarified and emphasized again that

even if the proposal was approved, the System Operator still
has the final approval whether the request from hydropower
plants to be dispatched through the imposition of non-security
limit due to Dam Operations will be granted given that the
System Operator’s priority is the security of the grid. He also
pointed out that if water elevation has already reached critical
level and there is imminent weather disturbance, the standard
protocol for all dams is to gradually conduct spilling operations
prior the occurrence of the weather disturbance to prevent
damage to the dam infrastructure. The requirement for
hydropower plants in these situations is to operate the
generating units for 24 hours to avoid water wastage. In real-
time system operations, hydropower plants usually request for
maximum dispatch.

However when there are typhoons, other generating units are

already shutting down their plants in advance or operating at
minimum. If there are still requests for overriding constraints,
like this proposal would allow, during the passage of typhoon,
the System Operator will no longer permit this since dispatching
the plants would threaten the security of the grid. During these
times the System Operator, in coordination with the Market
Operator, would have already declared market intervention in
which case most of the generating units will be shut down due

Page 6 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 7 of 17

Agenda Agreements / Action Taken / Action Required

to loss of load, instability in the power system, and the difficulty
in maintaining the supply and demand balance.

• Mr. Villafuerte stated that while NPC do monitor weather

forecasts and use those of PAGASA’s for managing reservoir
elevation, these forecasts are not 100% accurate in reality. By
experience, there have been deviations from the forecasts but
NPC could only rely on the available information.

• As additional information, the Secretariat pointed out that

during market intervention or suspension (“MI/MS”), it is the
System Operator who shall determine the dispatch schedules
in the absence of a market. In these situations, Mr. Rosales
explained that during MI/MS, overriding constraints are not
applicable and RTD schedules are no longer considered.
During MI/MS, the System Operator and generating units may
still coordinate with each other but any such discussion is likely
about shutting down plants since the utmost priority at that point
is the security of the grid.

• Mr. Rosales stated that what is currently missing in the rules

and manuals is a documented provision to serve as the System
Operator’s basis to consider granting imposition of non-security
overriding constraints for the specific scenarios being
addressed by the proponent (i.e., dam operations during
calamities).

RCC Voting

Having heard the discussions, the RCC voted to pursue the subject
proposal for approval of the PEM Board, without modification:

o YES – 10 votes
o NO – 2 votes

Agreements:

• The RCC agreed to pursue endorsing the proposal to the PEM

Board, without modifications, with supplemental justifications
mentioned based on the discussions.

Page 7 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 8 of 17

Agenda Agreements / Action Taken / Action Required

• Messrs. Fortich, Rosales, and Claudio will provide assistance to
the drafting of supplemental justifications for the proposed
amendments.

5.3. RCC Review of Internal Presenter: Kathleen R. Estigoy (Secretariat)

Rules
• Draft RCC Resolution No. Action Requested: For discussion and approval
2022-10
Proceedings:

• The salient changes to the draft RCC Internal Rules

incorporated by the Secretariat were related to:

o RCC Form/Template for submission of new proposals – to

ensure completeness of material information for new
proposals

o Facilitation of caucus discussions using the RCC Channel

in the MS Teams as pre-work prior regular meetings. The
caucus discussion intends to unburden or minimize
lengthy deliberation of proposals during regular meetings,
focused only on the most contentious or important issues
since pre-work has already been done.

Depending on the complexity and nature of a proposal, a

caucus meeting(s) involving a core group of RCC
members as appointed by the RCC Chairperson based on
their specialization or interest (as volunteer) on the subject
matter may also be conducted if deemed necessary.

Agreement:

The RCC approved the RCC Resolution No. 22-10 and the
changes to the RCC Internal Rules, as amended.

VI. New Business

6.1. RCC Semestral Report (Jan Presenter: Kathleen R. Estigoy (Secretariat)
to Jun 2022)
Action Requested: For approval to submit to the PEM Board

Proceedings:
Page 8 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 9 of 17

Agenda Agreements / Action Taken / Action Required

• The Secretariat presented the revised draft Semestral Report,

which was emailed to the RCC on 06 July 2022, providing the
accomplishments of the RCC from January to June 2022,
summarized as follows (as of reporting time):

o 6 new proposals submitted to RCC

o 4 proposals approved
o 16 documents (rules or manuals) amended
o 4 proposals carried-over from previous reporting time
approved

• The Report likewise provides an update on the proposals

promulgated by the DOE and the RCC 2022 Work Plan.

Agreement:

The draft Semestral Report was approved, as amended, for

submission to the PEM Board.
VII. Other Matters
7.1. Updates on Rules Change Presenter: Divine Gayle C. Cruz (Secretariat)
Webpages
Action Requested: For information / Comments

Proceedings:

• The Secretariat introduced the following enhancements to the

RCC-related webpages:

o WESM Rules and Manuals Map – presents the relationship

of the chapters of the WESM Rules with corresponding
WESM Manuals
o New Rules Change Proposals – provides a more complete
documentation of proposals, from submission of proposal
up to the final approval of the DOE or ERC
o Submission of Proposals and Comments (through website)
– facilitates easier submission of proposals and comments,
and more organized receipt of the same by the Secretariat

• The Secretariat likewise demonstrated the MS Teams RCC

Channel that will facilitate the caucus discussions of the RCC
regarding proposals.
Page 9 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 10 of 17

Agenda Agreements / Action Taken / Action Required

7.2. DOE Updates Presenter: Ms. Melanie Papa (DOE Observer)
• Schedules of Public
Consultation Action Requested: For information
• Proposals for
Promulgation Proceedings:

• Public consultations are scheduled for the proposals regarding

(1) Green Energy Option Program, and (2) System Security and
Reliability regarding Reserve Market on the following dates:

o Luzon (Taguig City) – July 19

o Visayas (Bacolod City) – July 26
o Mindanao (General Santos City) – August 02

• Five (5) newly signed DOE Circulars are soon to be published,

which include the urgent proposals whose effectivity of
implementation has expired. These proposals were based on
the following RCC Resolutions:

1) 2021-07 (Dispute Resolution)

2) 2021-14 (Market Operator and System Operator
Procedures)
3) 2021-18 (Application Process of New WESM Members)
4) 2021-19 (ERC Directives on Additional Compensation
Process)
5) 2021-22 (ERC Directives on Automatic Pricing Re-runs for
Under-generation and Over-generation)

7.3. NGCP’s Letter on Request Action Requested: For information

for Derogation on its
Reference for Issuing Grid Proceedings:
Alert Notices (Matter arising
from the RCC’s deliberation NGCP is still coordinating internally on their submission to ERC.
on NGCP’s proposed
amendments to the WESM
Manual on System Security
and Reliability Guideline)

7.4. Caucus Schedule and Presenter: Dianne L. De Guzman (Secretariat)

Members
• Additional Action Requested: For discussion
Compensation Proposal
by IEMOP
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REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 11 of 17

Agenda Agreements / Action Taken / Action Required

Proceedings/Agreements:

• Secretariat shall identify issues/concerns on the proposal after

comments have been received
• Caucus members will be designated through RCC Channel/chat
board.
• Caucus meeting (if necessary) – August 12

VIII. Schedule of Next Meetings Presenter: Kathleen R. Estigoy (Secretariat)

Action Requested: For information

The RCC noted the following schedules:

• RCC Meetings
o 19 Aug 2022
o 16 Sep 2022
o 21 Oct 2022

• BRC Meeting
o 18 Jul 2022

• PEM Board Meeting

o 27 Jul 2022

• EMX & AGMM

o 20 Jul 2022

IX. Adjournment The meeting was adjourned at 12:14 PM.

Page 11 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 12 of 17

Prepared by: Reviewed by:

DIVINE GAYLE C. CRUZ KAREN A. VARQUEZ

Senior Specialist, Rules Review Division Manager, Rules Review Division
Market Assessment Group Market Assessment Group

Noted by:

JOHN MARK S. CATRIZ

Head, Market Assessment Group

Approved by:

CONCEPCION I. TANGLAO JESUSITO G. MORALLOS

Chairman, Independent Member, Independent

FERNANDO MARTIN Y. ROXAS JOSE RODERICK F. FERNANDO

Member, Independent Member, Independent

DIXIE ANTHONY R. BANZON CHERRY A. JAVIER

Member, Generation Sector Member, Generation Sector
Masinloc Power Partners Co. Ltd. (MPPCL) Aboitiz Power Corp. (APC)

CARLITO C. CLAUDIO MARK D. HABANA

Member, Generation Sector Member, Generation Sector
Millennium Energy, Inc. / Panasia Energy, Inc. Vivant Corporation – Philippines (Vivant)
(MEI/PEI)

Page 12 of 17
REF NO.: RCC-MIN-22-10

MEETING MINUTES
Subject/Purpose : 198th Rules Change Committee (Regular) Meeting
Date & Time : 15 July 2022, 09:00 AM
Venue : Online via Microsoft Teams
Page : 13 of 17

RYAN S. MORALES VIRGILIO C. FORTICH, JR.

Member, Distribution Sector Member, Distribution Sector
Manila Electric Company (MERALCO) Cebu III Electric Cooperative, Inc. (CEBECO III)

RICARDO G. GUMALAL NELSON M. DELA CRUZ

Member, Distribution Sector Member, Distribution Sector
Iligan Light and Power, Inc. (ILPI) Nueva Ecija II Area 1 Electric Cooperative, Inc.
(NEECO II – Area I)

LORRETO H. RIVERA ISIDRO E. CACHO, JR.

Member, Supply Sector Member, Market Operator
TeaM (Philippines) Energy Corporation (TPEC) Independent Electricity Market Operator of the
Philippines (IEMOP)

AMBROCIO R. ROSALES
Member, System Operator
National Grid Corporation of the Philippines
(NGCP)

Page 13 of 17
RCC-MIN-22-10

ANNEX – Way Forward on Proposal regarding Non-security Overriding Constraints

BACKGROUND

• RCC approved proposal perRCC Resolution No. 2022-09 dated 17 June 2022

Page 14 of 17
RCC-MIN-22-10

ANNEX – Way Forward on Proposal regarding Non-security Overriding Constraints

BACKGROUND

BACKGROUND

• Presented to PEM Board during 49th Meeting on 29 June 2022

RCC Proposed Amendment PEM Board Action/Directive

RCC Resolution No. 2022 -09 entitled Deferred for further review/study.
Proposed Amendments to the WESM
Manual on Dispatch Protocol regarding The PEM Board concurred with Dir. Danel Aboitiz,
Non-security Over-riding Constraints that the hydroelectric power plants can simply
adjust their trading strategy and that the current
manual on dispatch protocol is still working and
need not be amended.

The Board then approved to defer the said proposal

for further review/study of the Committee.

Page 15 of 17
RCC-MIN-22-10

ANNEX – Way Forward on Proposal regarding Non-security Overriding Constraints

BACKGROUND

• Excerpt from RCC Resolution No. 2022-09:

FOR DISCUSSION

• When there is market = dispatch based on offers (default)

• When market suspension/intervention is declared = dispatch based on SO instructions

 SO may need basis to dispatch hydropower plants during market suspension/intervention

Page 16 of 17
RCC-MIN-22-10

ANNEX – Way Forward on Proposal regarding Non-security Overriding Constraints

FOR DISCUSSION

• WESM Manual on Dispatch Protocol

Page 17 of 17