Ngcp Comment

8/13/2019 Ngcp Comment

1/38

f ' , _.. : . . \ . - ~ ; _i ~ ~ ~ -

6Y.Republic of the PhilippinesSUPREME COURT 2 0 1 ~ JAN 20 P I 48Manila

EN BANCBayan Muna Representatives NERIJAVIER COLMENARES andCARLOS ISAGANI ZARATE,Gabriela Women's PartyRepresentatives LUZ ILAGAN andEMMI DE JESUS, Act TeachersParty-List RepresentativeANTONIO TINIO and KabataanParty-List Representatives TERRYRIDON, Petitioners,

-versus-

ENERGY REGULATORYCOMMISSION and MANILAELECTRIC COMPANY,Respondents.x x

NATIONAL ASSOCIATION OFELECTRIC CONSUMERS FORREFORMS, represented byPetronila L. Ilagan, FEDERATIONOF VILLAGE ASSOCIATIONS,represented by Siegfried A Veloso,FEDERATION OF LAS PINASHOMEOWNERS ASSOCIATION ,represented by Bonifacio Dazo, andRODRIGO C DOMINGO, JR.,Petitioners,

-versus-

G.R. No. 210245

G.R. No. 210255


2/38

MANILA ELECTRIC COMPANYENERGY REGULATORYCOMMISSION and, DEPARTMENTOF ENERGY Respondents.:x :x

CONSOLIDATED COMMENTThird-Party Respondent NATIONAL GRID CORPORATIONOF THE PHILIPPINES (NGCP), by counsel, and in compliance

with this Honorable Supreme Court's 10 January 2014 Order,respectfully submits its Consolidated Comment to the Petitions inG.R. No 210245 and 210255, and the Counter-Petition of ManilaElectric Company (MERALCO):PREFATORY STATEMENT

One of the landmark pieces of legislation enacted byCongress in recent years is the EPIRA. It established a new policy,legal structure and regulatory framework for the electric powerindustry. The new thrust is to tap private capital for the expansionand improvement of the industry as the large government debt andthe highly capital-intensive character of the industry itself have longbeen acknowledged as the critical constraints to the program. Toattract private investment, largely foreign, the jaded structure of theindustry had to be addressed. While the generation andtransmission sectors were centralized and monopolistic, thedistribution side was fragmented with over 130 utilities, mostlysmall and uneconomic. The pervasive flaws have caused a lowutilization of existing generation capacity; extremely high anduncompetitive power rates; poor quality of service to consumers;dismal to forgettable performance of the government power sector;high system losses; and an inability to develop a Clear strategy forovercoming these shortcomings.

Thus, the EPIRA provides a framework for the restructuringof the industry, including the privatization of the assets of theNational Power Corporation (NPC), the transition to a competitivestructure, and the delineation of the roles of various governmentagencies and the private entities. The law ordains the division ofthe industry into four (4) distinct sectors, namely: generation,transmission, distribution and supply.

2


3/38

Corollarily, the NPC generating plants have to privatize andits transmission business spun off and privatized thereafter.

BRIEF ST TEMENT OF F CTS1. On 8 June 2001, the Eleventh 11th) Congress of theRepublic of the Philippines enacted into law Republic Act No. 9136,otherwise known as the Electric Power Industry Reform Act(EPIRA) with the goal of restructuring the electric power industryand privatization of the assets of the National Power Corporation(NPC). 2 It established a new policy, legal structure and regulatoryframework for the electric power industry.3

2. Pursuant to Section 8 of the EPIRA, the NationalTransmission Corporation (TRANSCO) was created to assume thetransmission function of NPC. The EPIRA also provided aframework for the privatization of TRANSCO. Under Section 49 ofthe EPIRA, the Power Sector Assets and Liabilities ManagementCorporation (PSALM) was also created to manage the orderly sale,disposition, and privatization of NPC generation assets, real estateand other disposable assets, and IPP contracts with the objectiveof liquidating all NPC financial obligations and stranded contractcosts in an optimal manner.4 PSALM was also mandated underSection 21 of the EPIRA to plan and award in open competitivebidding the privatization of the operation of the transmissionfacilities, including grid interconnections and ancillary services ofTRANSCO to a qualified party.

3. Hence, in 2008, the National Grid Corporation of thePhilippines, a private company operating as a public utility wasawarded the concession contract to assume the powertransmission function of TRANSCO. Consequently, on 1 December2008, the Fourteenth 14th) Congress through R.A. No. 9511 5granted NGCP a congressional franchise to operate, manage andmaintain, and n connection therewith, to engage n the business oconveying or transmitting electricity through high voltage back- Freedom from Debt Coalition v. Energy Regulatory Commission, G.R. No.161113, 15June2 4;2 Enrique U. Betoy vs. The Board of Directors of the National PowerCorporation, G.R. Nos. 156556-57, 4 October 2011;3 Id4 ~ c t i o n 50, EPIRA;5 An Act Granting the National Grid Corporation of the Philippines a Franchiseto Engage in the Business of Conveying or Transmitting Electricity throughHigh Voltage Back-Bone System of Interconnected Transmission Lines,Substations and Related Facilities, and for other Purposes;

3


4/38

bone system of interconnected transmission lines, substations andrelated facilities, system operations, and other activities that arenecessary to support the safe and reliable operation of thetransmission system nd to construct, install, finance, manage,improve, expand, operate, maintain, rehabilitate repair andrefurbish the present nationwide transmission system of theRepublic of the Philippines, The Grantee shall continue to operateand maintain the subtransmission system which have not beendisposed by TRANSCO . 6

4. On 15 January 2009, NGCP assumed the authority andresponsibility of TRANSCO for the planning, construction,centralized operation and maintenance of the transmissionfacilities, and procurement of ancillary services.5. On 9 March 2009, NGCP was also granted itsCertificate of Public Convenience and Necessity CPCN) by theEnergy Regulatory Commission ERC).6. NGCP is a public utility Its transmission charges arefiled and approved by the ERC pursuant Section 19 of the EPIRA

in relation to Paragraph f), Section 43 of the same law whichprovides:SEC. 43 Functions of the ERG. - The ERG shallpromote competition, encourage market development,ensure customer choice nd penalize abuse of market

power in the restructured electricity industry. Inappropriate cases, the ERG is authorized to issuecease nd desist order after due notice nd hearing.Towards this end, it shall be responsible for thefollowing key functions in the restructured industry:

(f) In the public interest establish andenforce methodology for setting transmissionand distribution wheeling rates and retail rates forthe captive market o distribution utility takinginto account all relevant considerations includingthe efficiency or inefficiency o the regulatedentities. The rates must be such as to allow therecovery of just and reasonable costs and a6 Section 1 R.A. No. 9511;


5/38

reasonable return on rate base (RORB) to enable theentity to operate viably. The ERG may adoptalternative forms o internationally-accepted ratesetting methodology as it may deem appropriate. Therate-setting methodology so adopted and applied mustensure a reasonable price o electricity. The ratesprescribed shall be non-discriminatory. To achieve thisobjective and to ensure the complete removal o crosssubsidies, the cap on the recoverable rate o systemlosses prescribed in Section 10 o Republic Act No.7832 is hereby amended and shall be replaced bycaps which shall be determined by the ERG based onload density, sales mix, cost o service, deliveryvoltage and other technical considerations it maypromulgate. The ERG shall determine such form orrate-setting methodology, which shall promoteefficiency. x x x7 Hence, in order to recover the costs necessary toprovide transmission services and to sustain its full operationalstrength, NGCP bills its customers transmission charges based onreasonable rates duly approved by the ERC after undergoing

series of publications and hearings.8 On 17 October 2012, NGCP filed before the ERC itsannual rate verification for the year 2013 (MAR2013) docketed asERC Case No 2012-109RC7 Said Application contains NGCP sproposed Maximum Allowable Revenue (MAR) or revenue cap forthe year 2013 and the corresponding rate translation for its SystemOperator (SO) charge, Metering Service Provider (MSP) charge,and Power Delivery Services (PDS) charge for the ERC s approval

to be charged and levied to NGCP s transmission customers(distribution utilities/electric cooperatives and directly connectedlarge/industrial customers).9 In compliance with the ERC s jurisdictional requirementunder the ERC Rules of Practice and Procedure, the MAR2013Application was published in the newspaper of general circulationand was also served to the different local government units. TheNotice of Hearing issued by the ERC dated 23 October 2012 was

1 In The Matter of the Application for the Approval of the Maximum AllowableRevenue for the Calendar Year 2013 and the Performance Incentive Schemein Accordance with the Alternative Form of Rate Setting Methodology Underthe Rules for Setting the Transmission Wheeling Rates, with Prayer forProvisional Authority;5


6/38

also published once a week for two (2) consecutive weeks in two(2) newspapers of general circulation. Furthermore, saidApplication undergone public hearings in Luzon, Visayas, andMindanao.10. On 17 December 2012, the ERC issued an Order fixingthe SO MSP, and PDS charges that NGCP. can charge itscustomers for the year 2013. Unlike the charges imposed bygenerators which is based on energy (kilowatt hour or kWh)consumed by the consumer and priced at Peso per kilowatt hour(P/kWh), NGCP charges its customer in the following manner:1 PDS Charge - Peso per kilowatt-month (P/kW-mo.)11 SO Charge - Peso per kilowatt-month (P/kW-mo.)111 MSP Charge - Peso per month/voltage level11. On 11 November 2013, the operation of theMalampaya Natural Gas was shut down as it underwent itsscheduled preventive maintenance. The shutdown lasted until 10December 2013 or for a total of thirty (30) days.

12. On 5 December 2013, MERALCO wrote the ERCrequesting for clearance and authority to: (i) collect gener tionch rge of P7.90 per kwh in its December 2013 billings to itscustomers; and (ii) defer to February 2014 the recovery ofP3Billion, representing a portion of the gener tion costs for thesupply month of November 2013 not passed on to customers inDecember 2013, subject to inclusion of the appropriate carryingcharge.

13. In response to the letter of MERALCO, on 9 December2013, in ERC Case No. 2013-092MC8 ERC granted MERALCOthe authority to implement a staggered collection of its gener tioncost for the November 2013 power supply.14. On 19 December 2013, the Party-List Representativesof Bayan Muna, Gabriela Women s, Act Teachers, and KabataanParty Lists filed a Petition against ERC and MERALCO before theSupreme Court docketed as G.R. No. 210245. In their Petition,

Petitioners questioned, among others, the increase in thegener tion cost for November 2013. On 20 December 2013, a8 In the Matter of the Implementation by the Manila Electric Company of theGeneration Rate Adjustment under Resolution No. 16 Series of 2009 for theSupply Period of November to December 2013;

6


7/38

similar petition was filed by NASECORE against ERC, DOE, andMERALCO docketed as G.R. No 201255. In its Petition,NASECORE assailed, among others, the automatic adjustment ofgeneration cost. The two Petitions were later consolidated by theSupreme Court considering the similarity of the issue raised by thePetitioners.15 On 9 January 2013, MERALCO filed a ConsolidatedComment dated 8 January 2014 and Counter Petition againstNGCP and several power industry participants from the generationsector.

16 In the Order of the Supreme Court dated 10 January2014, MERALCO s Counter-Petition is treated as in the nature of aThird-Party Complaint, and granted MERALCO s prayer to includeNGCP, among others, as Third-Party Respondent. In the sameOrder, NGCP was directed to file and serve a COMMENT on thePetitions and Counter-Petition by personal service no later than 20January 2014.17 Hence, this Consolidated Comment to the Petitions and

Comment (by way of Answer) to the Counter-Petition ofMERALCO.DISCUSSION

(AS TO THE PETITIONS UNDERG.R. NO 210245 AND G.R. NO 210255)18 A perusal of the two (2) Petitions would readily show

that the issues raised by the Petitioners may be summarized asfollows:a The approval by the ERC based in its 9December 2013 letter/Order of the staggered hugegeneration rate increases based on MERALCO s 5December 2013 letter is a violation of customers right to dueprocess as it failed to comply with Section 4 (e) Rule 3 of theEPIRA IRR9.

9 Any application or petition for rate djustment or for any relief affecting theconsumers must be verified, and accompanied with an acknowledgement ofreceipt of a copy thereof by the LGU Legislative Body of the locality where theapplicant or petitioner principally operates together with the certification of thenotice of publication thereof in a newspaper of general circulation in the samelocality.


8/38

b. The 9 December 2013 letter of ERC approvingthe staggered huge gener tion rate increases is in violationof Section 4310 of the EPIRA on ERC s mandate to protectthe public from anti-competitive practices and abuse ofmarket behaviour of industry players.c. Section 6 and 29 2 of the EPIRA declaring thatpower generation s beyond ERC regulation areunconstitutional.

The ERC may grant provisionally or deny the relief prayed for not later thanseventy five (75) calendar days from the filing of the application or petition,based on the same and the supporting documents attached thereto and suchcomments or pleadings the consumers or the LGU concerned may have filedwithin thirty (30) calendar days from receipt of a copy of the application orpetition or from the publication thereof as the case may be.Thereafter, the ERC shall conduct a formal hearing on the application orpetition, giving proper notices to all parties concerned, with at least one publichearing in the affected locality, and shall decide the matter on the merits notlater than twelve (12) months from the issuance of the aforementionedprovisional order.This Section 4(e) shall not apply to those applications or petitions already filedas of 26 December 2001 in compliance with Section 36 of the Act.10 The ERC shall promote competition, encourage market development, ensurecustomer choice and penalize abuse of market power in the restructuredelectricity industry. In appropriate cases, the ERC is authorized to issue ceaseand desist order after due notice and hearing. Towards this end, it shall beresponsible for the following key functions in the restuctured industry: xxx

s) Inspect, on its own or through duly authorizedrepresentatives, the premises, books of accounts and records of anyperson or entity at any time, in the exercise of its quasi-judicial powerfor purposes of determining the existence of any anti-competitivebehavior and/or market power abuse and any violation of rules andregulations issued by the ERC;

Generation of electric power, a business affected with public interest, shallbe competitive and open.xxx xxx xxxAny law to the contrary notwithstanding, power generation sh ll not beconsidered a public utility operation. For this purpose, any person or entityengaged or which shall engage in power generation and supply of electricityshall not be required to secure a national franchise.2 The supply sector is a business affected with public interest. Except fordistribution utilities and electric cooperatives with respect to their existing

8


9/38

d The Automatic Generation Rate AdjustmentAGRA) Rules is null and void due to violation of dueprocess.19 Suffice it to say that that the above-mentionedallegations do not specifically pertain to transmission charges. Thearguments and issues raised in the two 2) subject petitions, innature, relates to the utom tic increases of generation ch rgeswhich are passed on the end-consumers without being the subjectof rate application filed before the ERC.

i The tr nsmission sectorunder the EPIRA is aregulated commonelectricity c rrier business,subject to the ratemakingpowers of the ERC.20 The transmission sector is a highly regulated industrywhose operation, revenues and charges are fixed and supervised

by the ERC. It is bound by the restrictions that the said regulatorybody may impose, specifically on its transmission charges.21 The regulation of NGCP is expressly provided in theEPIRA. Section 7 of the EPIRA provides that: the transmission ofelectric power shall be regulated common electricity carrierbusiness, subject to the ratemaking powers of the ERC. It wasreiterated in ection 2 paragraph yy) of the same law that:Transmission Charge refers t the regulated cost or charges for the

use of a transmission system which may include the availment offranchise areas, all suppliers of electricity to the contestable market shallrequire a license from the ERC.

Any law to the contrary notwithstanding, supply of electricity to the contestablemarket shall not be considered a public utility operation.For this purpose, any person or entity which shall engage in the supply ofelectricity to the contestable market shall not be required to secure a nationalfranchise. The prices to be charged by suppliers for the supply ofelectricity to the contest ble m rket sh ll not be subject to regul tion bythe ERC.


10/38

ancillary services. And again in ection 9 of the same law: Thetransmission charges o the TRANSCO shall be filed with andapproved by the ERG pursuant to Paragraph (f) o Section 43hereof.

22 To facilitate the regulation of NGCP, Section 43 of theEPIRA mandated the ERC to: In the public interest, establish andenforce a methodology for setting transmission and distributionwheeling rates and retail rates for the captive market o adistribution utility, taking into account all relevant considerations,including the efficiency or inefficiency o the regulated entities.

23 Thus, ERC adopted internationally acceptedmethodologies for the regulation of transmission wheeling chargesand revenues through the implementation of the: i) Rules forSetting the Transmission Wheeling Rates RTWR); and the OpenAccess Transmission Service OATS) Rules, among others.24 These regulatory laws are used by the ERC to regulateand fix the power rates to be charged by NGCP to its customers.

ii The transmission chargesare all approved y the ERCin accordance with theEPIRA and its ImplementingRules and RegulationsEPIRA IRR).25 As discussed above, the EPIRA was enacted torestructure the electric power industry in the Philippines. One of thesignificant reorganization introduced by the EPIRA is theorganization of the four 4) diverse sectors in the power industry,namely:i) Generation;ii) Transmission;iii) Distribution; andiv) Supply.26 The disposition of transmission business is that it is aseparate and distinct entity from the other sectors as crossownership with any sector is strictly prohibited in the EPIRA. NGCPcannot in any manner be an affiliate with any generation company

1


11/38

or distribution utility in accordance with Paragraph 2 Section 45of the EPIRA viz:

No generation company, distribution utility, or itsrespective subsidiary or affiliate or stockholder orofficial o a generation company or distribution utility, orother entity engaged in generating and supplyingelectricity specified by ERG within the fourth civildegree o consanguinity or affinity, shall be allowed tohold any interest, directly or indirectly, nTRANSCO or its concessionaire. Emphasissupplied)27. Further, the transmission charges are separated orunbundled from the charges imposed by other sectors pursuant toSection 36 of the EPIRA, viz:Section 36: Unbundling o Rates and Functions.

Within six (6) months from the effectivity o thisAct, NPG shall file with the ERG its revised rates. Therates o NPG shall be unbundled between transmissionand generation rates and the rates shall reflect therespective costs o providing each service. Inter-gridand intra-grid cross subsidies for both the transmissionand the generation rates shall be removed inaccordance with this Act.28. To fully understand the nature and mandate of the vitalsectors of the power industry in the Philippines, the EPIRAdescribes them as follows:

a. The GENERATION sector13 refers to thegeneration of electric power, a business affected with publicinterest, shall be competitive and open. It is a businessaffected by public interest but not considered as a publicutility and its generation rates are not subject to theregulatory powers of ERC.b. The TRANSMISSION sector refers to theNational Grid Corporation of the Philippines that assumed thetransmission assets of TRANSCO. It is responsible for the

3 Section 6 EPIRA;


12/38

planning, construction and central operation andmaintenance on the high voltage transmission facilitiesincluding purchase of the required ancillary services. NGCPis a regulated entity, its transmission wheeling rates arebased on formula, rates and charges duly approved by theERC.c. The DISTRIBUTION sector14 refers to thedistribution of electricity to end-users shall be a regulatedcommon carrier business requiring a national franchise.d. The SUPPLY sector15 on the other hand, refersto the business affected with public interest. Except fordistribution utilities and electric cooperatives with respect totheir existing franchise areas, all suppliers of electricity to thecontestable market shall require a license from the ERC.

29. The transmission charges are divided into five (5)components. They are defined under the OATS Rules promulgatedby the ERC, as follows :

Power Delivery Service(PDS)

System Operator (SO)

Metering ServiceProvider (MSP)

14 Section 22 EPIRA;15 Section 29 EPIRA;

The Power Delivery Service Chargesrecover that proportion of thetransmission provider s [NGCP] annualrevenue requirement approved by ERCunder the TWRG [RTWR] that isassociated with the cost of conveyingelectricity to or from connection pointsand is payable by Generation Customersand Load Customers. F Al 1.1The System Operator Charge (SOC)recovers that portion of the TransmissionProvider s Maximum Annual RevenueCap, and any other costs approved byERC, that are associated with the cost ofS stem 0 eration. F All 1.1The Metering Service Provider Chargerecovers that portion of the TransmissionProvider s Maximum Annual RevenueCap, and any other cost approved by theERC, that are associated with the cost ofmeterin services. [F(Alll)1.1

2


13/38

Connection Chargeand ResidualSubtransmissionCharge (CC/RSTC)

Ancillary Services (AS)

The Connection Charge recovers thereasonable costs, as defined in Section1.6.3 of the TWRG, associated withconnecting the Transmission CustomersFacilities to the Transmission Provider sfacilities. [F(AIV)1.1]The Residual Sub-transmission Chargerecovers the reasonable costs, as definedin Section 1.6.3 of the TWRG, associatedwith sub-transmission assets that is nototherwise recovered through theConnection Charge [F(AV)5.1]This is a pass through charge, allocatedfor the payment of its obligation with theAS providers

The diagram below shows the composition of NGCP s transmissioncharges:

The approval process for thePDS. SO and MSP Charges.30. The PDS SO and MSP charges are determined andapproved by the ERC through different regulatory resetapplications as well as annual rate verification.31. Pursuant to Sections 9 and 43 f) of the EPIRA, theERC promulgated the Rules for Setting Transmission WheelingRates for 2003 t around 2027 (RTWR) . It sets the methodology,pricing principles, the regulatory reset and annual rate verificationadjustment processes and the performance targets. These data willbe used for the setting of NGCP s transmission wheeling rates.

3


14/38

32. Under the RTWR, NGCP must undergo a regulatoryreset process every five (5) years, and an annual rate verification.

33. At present, NGCP is on its Third 3rd) regulatory periodcovering calendar years 2011-2015. For the information of theHonorable Supreme Court, the ERC has substantially compliedwith the regulatory reset and procedural due processes provided inthe RTWR, as explained below:33.1 On 16 February 2009, ERC published an IssuesPaper. After consultation meetings on the Issues Paper withdifferent power industry participants, the ERC issue its

Position Paper dated 9 September 2009 that contains its finalview on the regulatory reset process and the requirement forNGCP to submit its application for a regulatory reset review,including all the data, reports, forecasts and informationrequired therefor under the RTWR.33.2 Pursuant thereto, on 18 December 2009, NGCPfiled its reset application (Reset Application) for the approvalof its Maximum Allowable Revenue docketed as ERC Case

No. 2009-1 BORC.33.3 In its Initial Order dated 21 December 2009, theERC invited all parties having interest in the ResetApplication to participate in the reset process. On differentdates, the Manila Electric Company (MERALCO) anddifferent consumer groups filed their petitions for intervention.33.4 During NGCP s presentation of evidence,numerous whole day hearings were conducted. NGCPpresented nineteen (19) witnesses to testify on the data,reports, forecasts and information submitted by NGCPpursuant to the RTWR and position paper. All intervenorswere allowed to cross-examine all witnesses.33.5 On 15 June 2010, NGCP filed its formal offer ofexhibits, and on different dates, the intervenors filed theirrespective comments. The ERC admitted all the documentaryevidence offered as relevant and material to the resolution ofthe application.

4


15/38

33.6 Pursuant to Article 7.1.7 of the RTWR, the ERCon 15 July 2010 issued its initial evaluation on the ResetApplication through the issuance of the Draft Determination(DD). The ERC invited all interested parties to comment onNGCP s DD. A public consultation was conducted to solicitcomments on the DD on 17 August 2010 in Cebu City, 18August 2010 in Pasig City and 20 August 2010 in Davao City.33. 7 Thereafter, after hearing the different viewsduring the public consultation and evaluation of the writtencomments of interested parties, ERC issued a Decision dated22 November 2010 and the NGCP s Final Determination (FD)for calendar year 2011-2015. The FD enumerated theunsmoothed maximum allowed revenue that NGCP mustrecover during calendar years 2011 until 2015.

34. However, before NGCP could translate the approvedmaximum allowable revenue into transmission charges, NGCP filesannual rate verification application. This is done through the filingof another rate application on or before the th day of October ofevery year to validate the maximum allowable revenue (MAR) ofNGCP for the immediately succedding regulatory year. The MARalready covers the PDS SO and MSP charges. This rateapplication also undergoes the rigors of publication and extensivefull blown trial and hearing pursuant to Rule 3 Section 4 (e) of theEPIRA IRR to provide the public end consumers an opportunity toevaluate the application.35. For instance, in the evidentiary hearings in NGCP sMAR2013 Application filed on 17 October 2012, intervenors werealso given the full opportunity to cross-examine NGCP s witnessesand adequate means to evaluate documentary exhibits presented.36. In its Order dated 17 December 2012, the ERCapproved and fixed NGCP s MAR2013 in the amount ofPhP44,567.18Mn Million, including the translated PDS SO andMSP charges. The MAR2013 remain the same throughout the year2013, including the month of November 2013.

5


16/38

The approval process for theCC/RS TC

37. The CC/RSTC are those associated with the use by thetransmission customer of the transmission facility categorized asconnection and subtransmission assets.38. Under Section 1.6.3 of the Rules for SettingTransmission Wheeling Rates (RTWR) and Annex IV Module F ofthe Open Access Transmission Service (OATS) Rules, NGCP isrequired to file a separate rate application for the recovery of thereasonable cost incurred in providing efficient sub-transmission

services from its customers.39. Thus, in November each year, NGCP files anapplication for the approval of its proposed CC/RSTC. Similar toNGCP s filing of its annual rate verification, the evaluation ofCC/RSTC proposals undergoes series of publications and hearingspursuant to Rule 3 Section 4 (e) of the EPIRA IRR to provide thepublic end consumers an opportunity to evaluate the application.40. At present, NGCP still bills its customers the CC/RSTCusing the ERC approved 2009 CC/RSTC level pursuant to theERC s Consolidated Decision dated 6 July 2011 in ERC Case No.2008-066RC and ERC Case No. 2009-153RC. This means that theCC/RSTC imposed and levied to NGCP customers remained thesame and have not changed from 2009 up to present.

The approval process for the ASCharges41. On the other hand, AS charges are associated with theprocurement by NGCP of ancillary services. These services arenecessary to support the transmission of capacity and energy fromresources to loads while maintaining reliable operation of thetransmission system in accordance with good utility practice andthe Grid ode 6 Such services are essential in ensuring reliabilityin the operation of the transmission system and resultantly, in thereliability of the electricity supply in the Luzon, Visayas andMindanao grids.

6 Section 4b, EPIRA;

6


17/38

42. In the ERC Order dated 9 March 2006 in ERC CaseNo. 2002-253, the ERC approved Ancillary Services ProcurementPlan ( ASPP ) which directed TRANSCO to file a separateapplication for the approval of the Ancillary Services-CostRecovery Mechanism ( AS-CRM ).43. In the Decision dated 3 October 2007 in ERC Case No.2006-049RC, the ERC approved the AS-CRM on the condition thatall contracts for the procurement of ancillary services shall besubmitted to this Honorable Commission for approval.44. Since December 2012, NGCP has contracted Ancillary

Services Procurement Agreement (ASPA) with qualified ASproviders with the lowest possible rate for the benefit of theconsumer. In the negotiation for the AS rates, NGCP usedmethodology called the New Built approach. It uses the cost thatwould have been incurred in building a new plant that could providethe required ancillary services. This structure has alreadybenefitted the consumers by reducing AS charges by thirty to fortypercent (30-40%) from the rates prior to 2012. NGCP has alreadydisregarded the opportunity cost previously adopted in formerASPAs.45. Similar to the other transmission charges, the approvalof AS charges undergo rigors and expense of publications and afull blown trial pursuant to Rule 3 Section 4 (e) of the EPIRA IRRto provide the public end consumers an opportunity to evaluate theapplication.46. At present, the AS charges are all approved by the

ERC.47. Base on the foregoing, it is clear that the NGCPcharges imposed upon its customers and even ~ h transmissioncharges billed to MERALCO for the month of November 2013obtained the prior approval by the ERC after undergoing series ofpublications and hearings. More importantly, these approvedcharges remain the same all throughout the year 2013 until newcharges were approved by the ERC for the year 2014 after

undergoing the same requirements of publications and hearings.48. Indubitably, there are no automatic rate increasesinsofar as the transmission charges of NGCP are concerned.

7


18/38

49. It should be stressed that unlike generation companieswhich invariably have variable cost attributable to fuel purchaseswhich causes the varying generation cost depending on the pricesof fuel, NGCP has no variable cost and therefore, its transmissioncharges remain fixed for the entire year.NGCP cannot collude with MERALCOor any generation company.

50. As will be noted from the allegations in the petitions andcounter petition, there is no allegation of collusion by NGCP withthe generation and distribution sector for the generation rateincrease. This is because NGCP is mandated under the EPIRA tomaintain a frontier of independence from other power industryparticipants. NGCP is not allowed to hold any interest, directly orindirectly, in any generation company of distribution utility.

51. As discussed above, NGCP is the successor-in-interestof TRANSCO and assumed the following duties andresponsibilities:Section : Functions and Responsibilities.Upon the effectivity of this Act, the TRANSCOshall have the following functions and responsibilities:a. Act as the system operator o thenationwide electrical transmission and subtransmissionsystem, to be transferred to it by NPC;b. Provide open and non-discriminatoryaccess to its transmission system to all electricityusers;c. Ensure and maintain the reliability,adequacy, security, stability and integrity o thenationwide electrical grid in accordance with theperformance standards for the operations andmaintenance o the grid, as set forth in a Grid Code tobe adopted and promulgated by the ERG within six (6)

months from the effectivity o this Act;d. Improve and expand its transmissionfacilities, consistent with the Grid Code and theTransmission Development Plan TOP) to be

8


19/38

promulgated pursuant to this Act to adequately servegeneration compames distribution utilities andsuppliers requmng transmission service and/orancillary services through the transmission system:Provided That TRANSCO shall submit any plan forexpansion or improvement of its facilities for approvalby the ERG;

e. Subject to technical constraints the gridoperator of the TRANSCO shall provide centraldispatch of all generation facilities connected directlyor indirectly to the transmission system in accordancewith the dispatch schedule submitted by the marketoperator taking into account outstanding bilateralcontracts; and

f TRANSCO shall undertake the preparationof the TOP.52 Based on the foregoing, NGCP s primary mandate is topreserve the reliability and integrity of the high-voltagetransmission highway in the Philippines and . o ensure that

sufficient electricity flows within. Although, it is required to providethe central dispatch of all generation facilities based on the meritorder table (MOT) issued by the Philippine Electicity Spot Marketoperator (PEMC, it cannot be said to have participated in any act ofcollusion. The MOT is submitted by the PEMC to NGCP to serveas the schedule of dispatch of the generation plants for a particulartime interval to meet the demand. The MOT merely provides for thelist of power plants cleared by the market for dispatch and does notcontain the bid prices of the generators, nor the market clearingprice.53 Based on the foregoing, NGCP has no means ofcolluding with the generation companies. In particular, NGCP hasnothing to do with the bid prices of the generators during theMalampaya shutdown. Again, NGCP s function is merely to assurethe reliability and security of transmission highways.

COMMENT TO MERALCO S COUNTER-PETITION(BY WAY OF ANSWER)

54 NGCP reiterates and repleads the allegationsmentioned above.

9


20/38

55 For the month November 2013 under Power Bill No8000004971, NGCP billed MERALCO the ERC approvedtransmission charges in the amount of PhP2.029Bn. However,MERALCO merely paid NGCP the amount of PhP1 911 Bn anddeferred the payment of PhP111.38Mn. MERALCO in its letter toNGCP dated 23 December 2013 explained that the partial paymentwas made pursuant to the 23 December 2013 TemporaryRestraining Order (TRO) issued by the Supreme Court whichallegedly also enjoined the collection of other pass throughcharges, including the related transmission charges.56 Despite full knowledge of the regulatory framework ofthe power industry, MERALCO in complete bad faith deliberately

concluded that NGCP's transmission charges are included in theTRO.I

DMISSIONS

57 NGCP admits paragraph 6.10 but only in so far asMERALCO deferred payment of PhP111.40Mn for NGCP'sNovember 2013 billing; and58 NGCP admits paragraph 6.12.10 of the Counter-Petition but only in so far as NGCP is a transmission company andthe system operator granted a franchise to operate, manage andexpand the electric transmission business of the Philippines.

IISPECIFIC DENI LS

59 NGCP specifically DENIES the allegations inparagraphs 6 1 to 6.14 for lack of knowledge to form a belief as tothe truth or falsity thereof considering that the allegations containedtherein pertain to facts and transactions between and amongpetitioners, MERALCO and other generation companies, to whichNGCP is not privy.60 NGCP specifically DENIES the allegation in 6.12.1O

that it is the system operator of the WESM. The truth of the matteris that pursuant to Section 9 of the EPIRA, NGCP is the systemoperator of the nationwide electrical transmission andsubtransmission system.

2


21/38

Ill.SPECIAL AND AFFIRMATIVE DEFENSES61. NGCP respectfully restates and repleads theallegations mentioned above insofar as they may be relevant andmaterial hereunder.62. As discussed above, on 9 January 2.013 MERALCOfiled a Consolidated Comment dated 8 January 2014 to the two (2)Petitions, and a Counter-Petition against NGCP and several powerindustry participants from the generation sector.63. Essentially, the main issue in MERALCO s Counter

Petition is whether NGCP is an indispensable party that wouldstand to be injured by the outcome of the two 2) Petitions.64. At the outset, it must be stressed that. a perusal of theTRO issued by the Honorable Supreme Court on 23 December2013 reveals that it only enjoined the following:

(i) The ERC, its agents, representatives, or personsacting in its place and stead, from implementing itsDecember 9 2013 Order and acting further on the letter-request of MERALCO dated 5 December 2013; and(ii) MERALCO, its agents, representatives, orpersons acting in its place and stead, from increasing therates it charges to its consumers based on the matters itraised in its 5 December 2013 letter.

65. The 5 December 2013 letter of MERALCO to ERCmentioned in the TRO merely pertains to the request of MERALCOfor authority on the following:(1) Collect a generation charge of P7.90 per kwh inits December 2013 billings to its customers; and(2) Defer to February 2014 the recovery of P3 Billion,representing a portion of the generation costs for the supplymonth of November 2013 not passed on to customers inDecember 2013, subject to inclusion of the appropriate

carrying charge.66. Based on the foregoing, the TRO issued by theSupreme Court is limited to the generation charges and does not

2


22/38

include NGCP's transmission charges or other pass-throughcharges .

67. This being so it is very clear that NGCP is not anindispensable party in this case.68. Rule 3 Section 7 of the 1997 Rules of Court states:

Section 7 Compulsory joinder ofindispensable parties - Parties-in-interest withoutwhom no final determination can be had of an actionshall be joined either as plaintiffs or defendants .69. The Honorable Supreme Court in oston EquityResources, Inc. vs. Court Of Appeals, et al G.R. No. 173946

June 19, 2013 citing Lagunilla v. Velasco, G.R. No. 169276, 16June 2009, ruled that:

An indispensable party is one who has such aninterest in the controversy or subject matter of a casethat a final adjudication cannot be made in his or herabsence, without injuring or affecting that interest. Heor she is a party who has not only an interest in thesubject matter of the controversy, but 'an interest ofsuch nature that a final decree cannot be made withoutaffecting that interest or leaving the controversy insuch a condition that its final determination may bewholly inconsistent with equity and good conscience. Ithas also been considered that an indispensable partyis a person in whose absence there cannot be adetermination between the parties already before thecourt which is effective, complete or equitable.'Further, an indispensable party is one who must beincluded in an action before it may properly proceed.70. Applying the foregoing pronouncements to the case atbar it is clear that NGCP is not an indispensable party, neither anecessary party to the two (2) subject petitions for the simplereason that the allegations therein and MERALCO's counterpetition do not specifically pertain to transmission charges. Thearguments and issues raised by the Petitioners and MERALCO, innature, relate only to the automatic increases of generationcharges which are passed on the end-consumers without being thesubject of rate application filed before the ERG.

22


23/38

71. It bears repreating that there is nothing in the NGCPpower bill that pertains to generation charges that may be coveredby the TRO. Therefore, there is absolutely no basis forMERALCO s to include NGCP as third-party respondent in thesePetitions.72. It is very clear that the baseless arguments advancedby MERALCO are just mere afterthought. MERALCO desperateattempt to include NGCP as an indispensable party by simplyincluding the phrase other pass through adjustments r chargesevery time that the term generation cost is mentioned.73. It is also NOT correct for MERALCO to state that thetransmission charges contributed to the increase of generation costand other related charges as mention in paragraph 6.10 of itsCounter-Petition.74. As exhaustively discussed above, NGCP s maximumallowable revenue is fixed annually, and the transmission chargesand generation charges are separate and unbundled. Thus, the

transmission charges do not have any effect on the generationcharges imposed by the generation companies, and vice versa.75. As mentioned above, the evaluation of everyapplication of transmission charges undergo the rigors ofpublication and expenses of a full blown trial pursuant to Rule 3Section 4 (e) of the EPIRA IRR to provide the public endconsumers an opportunity to evaluate the application. After theERC approves the maximum allowable revenue of NGCP, it is

translated into transmission charges through its allocation to theLuzon, Visayas and Mindanao grid customers based on thespecific customer s demand meter registration in kW-month for agiven month. Any increase in demand (kW) or energy (kWh)registered in the transmission system would not have any effect onthe revenue of NGCP.76. These charges are billed by NGCP separate from thegeneration charges imposed by the generation companies. There

is no way that NGCP could increase of affect the generationcharges.

3


24/38

CONCLUDING STATEMENT77. The following are the pertinent and necessary facts for

the solution of the issue raised against NGCP:a. NGCP is not an indispensable party.b. NGCP was dragged into the case based on thefalse conclusion of MERALCO that transmission charges areincluded in the TRO.c. The 5 December 2013 letter of MERALCO, 9

December 2013 Order of the ERC and the 23 December2013 TRO of the Honorable Supreme Court merely mentionof generation charges.d. The transmission charges are based on demandof a customer imposed by NGCP. On the other hand,generation charges are based on actual consumption ofelectricity imposed by generation companies that providedthe power. These separate charges are unbundled inMERALCO s power bill to its end consumers. Thus, it isimpossible for the transmission charges in any way affect orincrease generation charges.e. NGCP is a regulated entity. Thus, it transmissionpower charges are all approved by the ERC after the rigorsand expenses of a full blown trial pursuant to Rule 3 Section4 (e) of the EPIRA IRR to provide the public end consumersan opportunity to evaluate the application.f. NGCP has no means of colluding with thegeneration companies. NGCP has nothing to do with thegeneration charges imposed by the generation companiesupon generation customers. Its function is merely to assurethat the transmission highways are reliable and secured.

PRAYER

WHEREFORE premises considered, it is respectfully prayedthat the Petitions and Counter-Petition be dismissed againstNGCP.

24


25/38

NGCP prays other equitable relief.Quezon City for Pasig City, 17 January 2014.

Office of the General CounselNATIONAL GRID CORPORATION OF THE PHILIPPINESNGCP Building, Quezon Avenue corner

By:

BIR Road, Diliman, Quezon [email protected]

c= s0LUIS MANUEL U BUGAYONGPTR No 9032666 01.02.2014 Quezon CityIBP Lifetime No 010191/RSMMCLE Compliance No IV-0006555Roll of Attorneys No 38002P CONPTR No 32660 01.02. zon CityIBP Lifetime No 04995/ RSMMCLE Compliance No IV-0006558Roll of Attorneys No 40065

5 A ~PTR No 9032 61 1.02.14 Quezon CityIBP Lifetime No 04 14/ Misamis OrientalMCLE Compliance No IV-0006559Roll of Attorneys No 45707< : : : : ; ; ~ ~ ~ ~ L D O V I N OPTR No 90 56 01.02.14 Quezon City

I ifetime No 010195/ RSMLE Compliance No IV-0006565Roll of Attorneys No 50672

5


26/38

Copy furnished by personal service: DEPARTMENT OF ENERGY .Office of th Secretar; iDEPARTMENT OF ENERGYc/o Secretary Carlos Jericho L. PetillaEnergy Center, Rizal DriveBonifacio Global City, Taguig City

fO)r : N ~ ; 0 1 : ~ ~ i 1 ~ l 1.l1=J L::JU v l. .::J l_lJl y: \ M q c>1a.-.. l_ OTS No. IMASINLOC POWER PARTNERS CO. LTD18/F Bench Tower, 30th Street corner Rizal DriveBonifacio Global CityTHERMA LUZON, INC.NAC Tower, 32 d StreetBonifacio Global City, TaguigAP RENEWABLES, INC.15/F NAC Tower, 32 d StreetBonifacio Global City, Taguig City

...

o r. : .........

6


27/38

Atty. RENE A. V. SAGUISAGCounsel for Petitioners in G R No 2102554045 Bigasan St., Brgy. PalananMakati City

Atty. NELSON A. LOYOLACounsel for Petitioners in G R No 210255Suite 201 Carreon Building2746 Zenaida St., Brgy. PoblacionMakati City

The SOLICITOR GENERAL134 Amorsolo St., Legaspi VillageMakati City 1229f D @ { b ~ [ ] W r R \lf\ 1590 ENERGY CORPORATION; 2 O JAN 2014 Unit 107 First Midland Office Condominium Building, Gamboa Street, Legaspi Village MakatiP rn..... -- ------sE'M-CALACA POWER CORPORATION

2/F DMCI Plaza Building2281 Don Chino Roces ExtensionBrgy. Magallanes, Makati City

P . ~ 0 r r n n n. . . , . .

NELSON ;\. LOYOLAC: ":.S)OCJ.ATE5

POWER SECTOR ASSE S > c : ; : ~ ~ ~ ~ ~ ~ - 1 J ~ r r w s M A N A G E M E N TCORPORATION R . lo EOih Floor Bankmer Building JAN 20 20146756 Ayala Avenue, Makati City TRANS-ASIA POWER G E N E R ~ ~ ~ ~ 0 R P O R ~ ; ~ ~ - ~ / i?:-_ -t.11th Floor PHINMA Plaza / / D1 1f Q39 Plaza Drive, Rockwell Center ()/-?JJ-/ -f .. / ;CDOtvtMakati City 1200 et.JRy L f ~

~ ~ f M ~ ~ I V A N T STA. CLARA NORTHERN RENEWABLESORPORATIONL 0 JAN 2014 nit 107, 1st Midland Office Condominium BuildingGamboa Street, Legaspi Village:k,_ i ~ Makati City

u ----QUEZON POWER (PHILS.) LTD. CO.62 H. dela Costa, MaubanQuezon Provincec/o Atty. Joshua Gilbert F. Paraiso12/F VGP Center6722 Ayala AvenueMakati City 1226, Philippines

GENERAL

7


28/38

ENERGY REGULATORY COMMISSIONPacific Centre BuildingSan Miguel Avenue Pasig City

MANILA ELECTRIC COMPANY; \ Lopez Building Ortigas Avenue Pasig City.,,.i ~ @ :D ~ PHILIPPINE ELECTRICITY MARKET CORPORATION o. nu_ 0 9th and 18th Floor Robinsons Equitable Towerl--1 . cb - - . . . : . ~ - l ADB Avenue Ort1gas enterD Pasig City 1600l J I ..;r ' lo - ~ r 0 I ,_

( ;(. ---. r-1 1 :;::l;1 ;: c::> 1nlf IRST GAS POWER CORPORATION J ~ I 1 C'J t: J X> /F Benpres Building

; : ; ~ \_., h)g xchange Road cor. MERALCO Avenuet \... --. rtigas Center Pasig City~ r1 - ~ - i - n..u, J ~

: :::s..

UTH PREMIERE POWER CORPORATION8 Building MERALCO Avenue corner General Lim Streetigas Center Pasig

SAN MIGUEL CORPORATION808 Building MERALCO Avenue corner General Lim StreetOrtigas Center Pasig

FGP CORPORATION3/F Benpres BuildingExchange Road cor. MERALCO AvenueOrtigas Center Pasig City JBAC-MAN ENERGY DEVELOPMENT CORPORATION/ ]BAC-MAN GEOTHERMAL INC.38/F One Corporate CentreJulia Vargas corner MERALCO AvenueOrtigas Center Pasig City -

FIRST GEN HYDRO POWER CORPORATION J3/F Benpres BuildingExchange Road corner MERALCO AvenueOrtigas Center Pasig City

GNPOWER MARIVELES COAL PLANT LTD. CO.1905 Orient Square BuildingDon Francisco Ortigas Jr. RoadOrtigas Center Pasig City

PANASIA ENERGY HOLDINGS INC.2nd Floor 808 BuildingMERALCO Avenue Pasig City 1600 ~ : ~ r " ' . : : : : : : ; ~ ~ ; E R 11:. ; ; ; = u 2 0 ~ 4PHILIPPINE STOCK EXCHANGE CEN : ... - . IORTIGAS PASIG CITY ;J -- - ~ v . STRATEGIC POWER DEVELOPMENT CORPORATION2nd Floor 808 Building / ~ ~ . . . . nMERALCO Avenue corner General Lim Street V'J\J\ 0 l.. . ..UVSan Antonio Village Pasig City 1600 \ \rJ r

28


29/38

Atty. MARIA CRISTINA P YAMBOTCounsel for Petitioners in G.R. No. 21 24545 K ih St. Brgy. West KamiasQuezon City

Atty. RONNIE B RODILLASCounsel for Petitioners in G.R. No. 21 255137 Libis Gochico St. Circumferential Road 3Caloocan City

THERMA MOBILE INCORPORATEDGround Floor Philippine Fisheries DevelopmentAuthority Complex BuildingNavotas Metro Manila

Pfc I / / i -OP l l#Szcjiy

9


30/38

Annex A-VerificationREPUBLIC OF THE PHILIPPINES)CITY OF QUEZON ) S.S.

SECRETARY'S CERTIFICATEI KAREN S ONG, of legal age, Filipino, and with office address at Power

Center, Quezon Avenue corner BIR Road, Diliman, Quezon City, Metro Manila, afterhaving been duly sworn in accordance with law, hereby certify that:

1. I am the Corporate Secretary of NATIONAL GRID CORPORATION OF THEPHILIPPINES (the Corporation ), a corporation duly organized and existingunder the laws of the Republic of the Philippines, with office address atPower Center, Quezon Avenue corner BIR Road, Diliman, Quezon City,Metro Manila;

2. The NG P Board of Directors has approved and adopted the followingresolutions:

NOW THEREFORE, BE IT RESOLVED, AS IT SHEREBY RESOLVED, that Office of the General Counsel of theCorporation is hereby authorized to file necessary and appropriatepleadings in the following cases now pending before the SupremeCourt:

'1. Bayan Muna Representatives Neri JavierColmenares and Carlos lsagani Zarate, Gabriela Women'sParty Representatives Luz Ilagan and Emmi De Jesus, ActTeachers Party-List Representative Antonio Tinio, andKabataan Party-List Representative Terry Ridon versusEnergy Regulatory Commission and Manila ElectricCompany, docketed as G.R. No. 210245; and

'2. National Association of Electric Consumers forReforms, represented by Petronila L Ilagan, Federation ofVillage Associations, represented by Siegfriedo A. Veloso,Federation of Las Pinas Homeowners Associations,represented by Bonifacio Dazo and Rodrigo C. Domingo, Jr.versus Energy Regulatory Commission, Manila Electric

ompany and the Department of Energy, docketed as G.R.No. 210255';RESOLVED, FURTHER, that the Corporation is hereby

authorized to file necessary and appropriate pleadings against the


31/38

Secretary s Certificate WC]c P (]Joara o [ u t i o n }lutfwrity of fi Office of fze qenera Counse[ on :M F.


32/38

REPUBLIC OF THE PHILIPPINES )Quezon City ) S. S.

VERIFICATION AND CERTIFICATION OFNON-FORUM SHOPPINGI LUIS MANUEL U. BUGAYONG, after having been duly sworn

to in accordance with law, hereby depose and state that:1. I am the General Counsel of the National Grid Corporationof the Philippines (NGCP);2. I am duly authorized to sign this Verification and

Certification of Non-Forum Shopping for and in behalf of NGCP asevidenced by the Secretary's Certificate, hereto attached as Annex AVerification ;3. I have caused the preparation of the foregoing ConsolidatedComment;4. I have read the foregoing Consolidated. Comment and Iattest that the allegations therein are true and correct of my personalknowledge and based on authentic records;5. I further attest that NGCP has not theretofore commencedany action or filed any claim involving the same issues in any court,tribunal or quasi-judicial agency and, to the best of my knowledge, nosuch other action or claim is pending therein;6. If I should thereafter learn that the same or similar action orclaim has been filed or is pending, I shall report that fact to theHonorable Court within five (5) days there from.IN WITNESS WHEREOF, I have hereunto affixed my signaturethis 1 h day of January 2014, in Quezon City, Philippines.

L U I S M A ~ O N GAffiantSUBSCRIBED ANDJanuary 2014, affiant exhibited to me his Driv019556 issued at Quezon City.

Doc N o ~ ;Page No. ;Book No. ;Series of 2014.t;ty. RICO AGA R.Aotary Public, A ointi:nent No. 070Commission until 31 December 20 l 5PTR No.9032599; 01-02-14; Quezon Cil {IBP LifecimE No. 08c:.,110; BulacanRoll of Attorney's No. 53664MCLE Compliance No.IV 0006563; 7 04 12

Unit 305, J. Rosa CondominiumMatimtiman St., Teacher's Village .;:c,:;tDiliman, Quezon City


33/38

Republic of the PhilippinesQuezon City S.S.

AFFIDAVIT OF SERVICE

I ALBERTO I. MAPA of legal age with address at National Grid Corporation of thePhilippines, Quezon Ave., corner BIR Road Diliman, Quezon City after having duly sworn inaccordance with law hereby depose and state that on I personally served a copy of theConsolidated Comment in CA-G.R. No. 210245, entitled: Bayan Muna Representatives NeriJavier Colmenares, et al v. Energy Regulatory Commission, et. al. and in G.R. No. 210255,entitled: National Association o Electric Consumers for Reforms, Inc. et al vs. Manila ElectricCompany, et al pending.before the Supreme Court, to the following:

1. Atty. RENE A V. SAGU/SAGCounsel for Petitioners in G.R. No. 2102554045 Bigasan St., Brgy. PalananMakati City

2. Atty. NELSON A LOYOLACounsel for Petitioners in G.R. No. 210255Suite 201 Carreon Building2746 Zenaida St., Brgy. PoblacionMakati City

3. The SOLICITOR GENERAL134 Amorsolo St. Legaspi VillageMakati City 1229

4. 1590 ENERGY CORPORATIONUnit 107 First Midland Office Condominium BuildingGamboa Street, Legaspi Village Makati

5. SEM-CALACA POWER CORPORATION2/F DMCI Plaza Building2281 Don Chino Roces ExtensionBrgy. Magallanes, Makati City

6. POWER SECTOR ASSETS LIABILITIES MANAGEMENT CORPORATION7th Floor Bankmer Building6756 Ayala Avenue, Makati City

7 TRANS-ASIA POWER GENERATION CORPORATION11th Floor PHINMA Plaza39 Plaza Drive, Rockwell CenterMakati City 1200

8. VIVANT STA. CLARA NORTHERN RENEWABLES GENERAL CORPORATIONUnit 107 1st Midland Office Condominium BuildingGamboa Street, Legaspi VillageMakati City

9 QUEZON POWER PH/LS.) LTD. CO.clo Atty. Joshua Gilbert F. Paraiso12/F VGP Center6722 Ayala AvenueMakati City 1226, Philippines


34/38

I further declare that the documents hereto submitted electronically inaccordance with the Efficient use of Paper Rule is complete and true copy of the documentsfiled with the Supreme Court.

L

SUBSCRIBED AND SWORN TO before me this 2affiant exhibiting to me his Tax Identification No. 121120637 ry 2 14 at Quezon City,

Doc No iPage No.Book No. ;Series of 14

ttWRICO Rotary Public, App trnent \lo. 070Commission until 31 December 20: ;PTR No.9032599; 01 02 P; Qu1? zon Ci ::IBP Lifetime No. oghliCi; B 1 : l i ~ : a nRoll of l l . . t : t o r n e v ~ . \i1), ;,-;:-, 4MCLE Compliance NO.J\.1-\it


35/38

Republic of the Philippines )Quezon City ) S.S.


I ROMELYN A. DOLOR of legal age, with address at National Grid Corporation of thePhilippines, Quezon Ave., corner BIR Road, Diliman, Quezon City after having duly sworn inaccordance with law, hereby depose and state that on, I personally served a copy of theConsolidated Comment in CA-G.R. No. 210245, entitled: Bayan Muna Representatives NeriJavier Colmenares et al v. Energy Regulatory Commission et. al. and in G.R. No. 210255,entitled: National Association o Electric Consumers for Reforms Inc. et al vs. Manila ElectricCompany et al pending before the Supreme Court, to the following:

1. Atty. MARIA CRISTINA P. YAMBOTCounsel for Petitioners in G.R. No. 21024545 K-7th St. Brgy. West KamiasQuezon City

2. Atty. RONNIE B. RODILLASCounsel for Petitioners in G. R. No. 210255137 Libis Gochico St. Circumferential Road 3Calooc.an City

3. THERMA MOBILE INCORPORATEDGround Floor Philippine Fisheries DevelopmentAuthority Complex BuildingNavotas Metro Manila

R O M E L Y ~ L O RA ~ a ~ t OSUBSCRIBED AND SWORN TO before me thisaffiant exhibiting to me her Tax Identification No. 1514109

D o c . N o . ~ ~Page No. Book No. ;Series of 2014.

fy; RICO CAGARAotary Public, Ap ntr:nent No. 070Commission until 31December2015PTR No. 9032599; 01 02 11; Que7.on CityIBP Lifetime No. 08600; BulacanRoll of Attornev s No. 53664MCLE Compliance No.IV-0006563; 7. 04 l 2Unit 305, J Rosa Condomi.niurr, ,44 Matimtiman St., Teacher s V1llayt:. 1::2stDiliman, Quezon City


36/38

Republic of the Philippines )Quezon City ) S.S.

FFID VIT OF SERVICE

I, KRIZ DIANE S. DIZON of legal age, with address at National Grid Corporation of thePhilippines, Quezon Ave., corner BIR Road, Diliman, Quezon City after having duly sworn inaccordance with law, hereby depose and state that on, I personally served a copy of theConsolidated Comment in CA-G.R. No. 210245, entitled: Bayan Muna Representatives NeriJavier Colmenares et al v. Energy Regulatory Commission et. al. and in G.R. No. 210255,entitled: National Association of Electric Consumers for Reforms Inc. et al vs. Manila ElectricCompany et al pending before the Supreme Court, to the following:

1. DEPARTMENT OF ENERGYclo Secretary Carlos Jericho L. PetillaEnergy Center; Rizal DriveBonifacio Global City Taguig City

2 MASINLOC POWER PARTNERS CO LTD18/F Bench Tower 30th Street corner Rizal DriveBonifacio Global City

3. THERMA LUZON INC.NAG Tower 32nd StreetBonifacio Global City Tagu.ig

4. P RENEWABLES INC.15/F NAG Tower 32nd StreetBonifacio Global City Taguig City

5 SN ABOITIZ POWER - BENGUET INC.SN ABOITIZ POWER - MAGAT INC.10/F NAG Tower 32nd StreetBonifacio Global City Taguig

KRIZ l ~ Z O N~SUBSCRIBED ND SWORN TO before me this 20affiant exhibiting to me her Tax Identification No. 401070477.

o c N o ~ -Page No. :E -1"/Book No. ,Series of 0 .

tty: RICOtary Public, Ap 1ntment No. 070omrnission until 31 December 2015

PTR No.9032599; 01-02-1 -i; Quezon CityIBP Lifetime No og600; E JlacanRoll of Attorney s i\lo. 53664MCLE Compliance No.JV-0006563;7.04.12Unit 305, J Rosa Condominium44 Matimtiman St., Teacher s Village EastDiliman, Quezon City


37/38

Republic of the PhilippinesQuezon City S.S.


I RICHIEL B. BUMENLAG of legal age, with address at National Grid Corporation ofthe Philippines, Quezon Ave., corner BIR Road, Diliman, Quezon City after having duly sworn inaccordance with law, hereby depose and state that on I personally served a copy of theonsolidated omment in CA-G.R. No. 210245, entitled: Bayan Muna Representatives NeriJavier Colmenares, et al v. Energy Regulatory Commission, et. al. and in G.R. No. 210255,entitled: National Association of Electric Consumers for Reforms, Inc., et al vs. Manila ElectricCompany, et al pending before the Supreme Court, to the following:

1. ENERGY REGULATORY COMMISSIONPacific Centre BuildingSan Miguel Avenue, Pasig City

2 MANILA ELECTRIC COMPANYLopez Building, Ortigas Avenue, Pasig City

3. PHILIPPINE ELECTRIC/TY MARKET CORPORATION9th and 18th Floor, Robinsons Equitable TowerADB Avenue, Ortigas CenterPasig City 1600

4. FIRST GAS POWER CORPORATION3/F Benpres BuildingExchange Road cor. MERALCO AvenueOrtigas Center, Pasig City

5 SOUTH PREMIERE POWER CORPORATION808 Building, MERALCO Avenue corner General Lim StreetOrtigas Center, Pasig

6 SAN MIGUEL CORPORATION808 Building, MERALCO Avenue corner General Lim StreetOrtigas Center, Pasig

7. FGP CORPORATION3/F Benpres BuildingExchange Road cor. MERALCO AvenueOrtigas Center, Pasig City

8. BAC MAN ENERGY DEVELOPMENT CORPORATIONBAC MAN GEOTHERMAL, INC.38/F One Corporate CentreJulia Vargas corner MERALCO AvenueOrtigas Center, Pasig City

9 FIRST GEN HYDRO POWER CORPORATION3/F Benpres BuildingExchange Road corner MERALCO AvenueOrtigas Center, Pasig City


38/38

10. GNPOWER MAR/VELES CO L PL NT LTD. CO1905 Orient Square BuildingDon Francisco Ortigas Jr RoadOrtigas Center Pasig City

11. PANAS/A ENERGY HOLDINGS INC.2nd Floor 808 BuildingMERALCO Avenue Pasig City 1600

12. STRATEGIC POWER DEVELOPMENT CORPORATION2nd Floor 808 BuildingMERALCO Avenue corner General Lim StreetSan Antonio Village Pasig City 1600

R I C H I J t . ~ ~ GAffiantSUBSCRIBED AND SWORN TO before me this 20 Janaffiant exhibiting to me her Tax Identification No. 270664944.

Doc. ofliPage No. Book No. ;Series of 2014. 1: ,,lr.;1.:an

Roll of Atr:ornt /

Ngcp Comment

Documents

Transcript of Ngcp Comment