Title
Rules for Grid Management Committee Operations
Law
Erc
Decision Date
Mar 10, 2004
A Philippine law establishes the Grid Management Committee (GMC) to monitor compliance with the Grid Code, handle disputes, and recommend standards, with funding provided by TRANSCO and a governance structure subject to annual review.
A

Key Definitions

  • DOE: Supervises electricity industry restructuring.
  • Distribution Utility/Distributor: Entities with franchise to operate distribution systems.
  • Dispute Resolution Panel: GMC-appointed panel for dispute matters.
  • Electric Cooperative: Cooperative authorized under specific laws.
  • ERC: Independent regulatory body enforcing grid-related codes.
  • Grid Code: Rules for safe, reliable operation of the high voltage Transmission System.
  • Grid Owner: Owns and maintains the high voltage Transmission System.
  • GMC: Committee established by ERC to administer and oversee Grid Code functions.
  • Large Customer/Generator and Small Generator: Categorized by capacity and demand thresholds.
  • Market Operator: Manages Wholesale Electricity Spot Market.
  • NEA: Supports Electric Cooperatives.
  • TRANSCO: Manages the high-voltage Transmission System.
  • Significant Incident and Notice: Serious Grid or User system events and respective notices.
  • Supplier: Authorized entity selling electricity to end-users.
  • System Operator: Responsible for dispatch, ancillary services, and Grid operation.
  • User: Entity using the Grid or Distribution System.

Interpretation Principles

  • Rules align with the Grid Code and do not contradict existing laws or government regulations.

Functions of the GMC

  • Monitor Grid Code compliance and Grid operations.
  • Recommend standards, procedures related to Grid connection and development.
  • Coordinate dispute resolution, enforcement, and Grid Code revisions.
  • Prepare reports for ERC or relevant agencies.

Composition of the GMC

  • Members nominated by various sectors: System Operator, Grid Owner, Market Operator, Large and Small Generators, Distributors, Electric Cooperatives, Suppliers, and Large Customers.
  • Representatives from ERC, DOE, and NEA as non-decision-making advisors.

Terms and Removal of GMC Members

  • Regular Members serve three years, non-renewable except initial appointees.
  • Removal for cause requires two-thirds GMC vote and ERC approval.
  • Vacancies filled via sector nominations, with successors serving remainder of terms.

Meeting Procedures and Quorum

  • Regular meetings monthly; special meetings called by Chairman or eight Members.
  • Meetings via physical presence or approved remote methods.
  • Notices issued seven days prior with agenda.
  • Quorum: majority with affirmative votes for decisions; consensus preferred for contentious enforcement matters.

GMC Officers and Administration

  • Election of Vice Chairman, Secretary, Treasurer from different organizations.
  • Duties of officers defined; officers assist efficient GMC functioning.
  • Management staff handles day-to-day operations.
  • Budget preparation and ERC-approved funding via TRANSCO for ongoing operations.

Subcommittees Established

  • Permanent: Grid Planning, Operations, Reliability and Protection Subcommittees.
  • Each has defined responsibilities related to standards, reports, procedures, and incidents.
  • Ad hoc and other subcommittees may be created with ERC approval for specific tasks.
  • Subcommittees provide recommendations subject to GMC approval.

Grid Code Dispute Resolution

  • Applies to System Operator, Grid Owner, Market Operator, and Users.
  • Excludes billing/commercial disputes under Market Rules.
  • Process involves informal resolution attempts, committee formation, Dispute Resolution Panel creation.
  • Panel consists of 3-5 technically qualified members chosen by raffle; panels exclude related parties.
  • Panel conducts hearings, documents recommendations sent to GMC and ERC.
  • Costs shared based on resolution outcome; fees imposed to cover administrative costs; bonds may be required.

Grid Code Enforcement and Revision

  • Complaints filed with ERC or GMC directed to enforce Grid Code.
  • Enforcement steps: notice, response within 30 days, GMC evaluation, ERC final decision.
  • ERC imposes fines and penalties under established guidelines for violations.
  • Unforeseen circumstances handled by System Operator with consultation and GMC/ERC oversight.
  • Procedure for Grid Code revision includes proposal submission, GMC/subcommittee evaluation, recommendations to ERC.

Reporting Requirements

  • Quarterly and annual reports submitted to ERC.
  • Significant Incident reports filed within one week by System Operator with follow-up validation and recommendations.
  • Special reports produced upon ERC or other agency order or User request (at User expense).

Amendments, Separability, and Effectivity

  • Amendments require GMC consensus and ERC approval.
  • Invalid provisions severable without affecting remaining rules.
  • Rules effective 15 days after publication in two newspapers of general circulation.

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