Title
DOE Rules on WESM Disconnection Policy
Law
Doe Department Circular No. Dc 2010-08-0010
Decision Date
Aug 23, 2010
The Department of Energy establishes implementing rules and procedures to enforce a disconnection policy for non-compliance with the termination of the Default Wholesale Supplier Arrangement in the Wholesale Electricity Spot Market, aiming to enhance market discipline and ensure compliance among electric power industry participants.
A

Q&A (DOE DEPARTMENT CIRCULAR NO. DC 2010-08-0010)

Grounds include failure to register or suspension/deregistration from WESM, non-compliance with financial or technical obligations to NGCP or NSPs, failure to pay or restructure obligations with PSALM/NPC, and termination or expiration of supply contracts without renewal or WESM registration.

EPCs such as electric cooperatives, private investor-owned utilities, large customers directly connected to the grid, wholesale aggregators, economic zones; EPS like generation companies, PSALM/NPC, IPPAs, WAs; EPSPs and MO including PEMC, NGCP, NSPs, and other stakeholders.

The requesting party must issue a Notice of Disconnection to the EPC and submit a letter-request to NGCP for execution. The Notice must be consistent with DOE Circular, WESM Rules, OATS Rules, Grid Code, and existing agreements. NGCP must execute disconnection within 5 days unless delayed due to technical reasons.

Reconnection occurs upon compliance with WESM registration or reinstatement, full payment of dues to NGCP, Generation Company, IPPA or WA, securing new or renewed supply contracts, or execution of a restructuring agreement with PSALM/NPC along with payment of applicable reconnection fees.

NGCP executes the actual disconnection and reconnection of customers within prescribed periods after receipt of valid notice and letter-requests, prepares reports, considers power system impact, and must be indemnified from suits or damages related to these actions.

Through the formulation and enforcement of restructuring agreements that allow payment of arrearages in installments with interest, pursuant to PSALM's Restructuring Policy and guidelines included in the Implementing Rules and Procedures.

'Electric Power Supplier' means any generation company, IPPA, WA, or entity engaged in supplying or selling electric power; 'Electric Power Customer' collectively refers to any electric cooperative, private DU, economic zones, and other large or direct-grid-connected customers purchasing power for end-use or distribution.

Stakeholders in Visayas and Mindanao are exempted from WESM registration requirements as per the Implementing Rules and Procedures.


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