ERC seeks more comments on revised rules for issuance of COCs

By MYRNA M. VELASCO
January 8, 2010, 2:54pm

The Energy Regulatory Commission (ERC) is rounding up until January 18 this year its solicitation of comments from stakeholders on the proposed rules revision for the issuance of certificates of compliance (COC) for generation companies and facilities.

The proposed amendments to the rules have been intended to clarify some requirements and procedures on applications filing as well as on renewals of COCs.

The ERC noted this is already the second round it would be gathering inputs from industry stakeholders, and it deems such a necessary exercise prior to finalizing the rules.

A COC is a requirement that must be secured by a generation company from the ERC before it can set its facility for commercial operations.

For newly constructed projects, developers are given two months leeway for commissioning run, without yet a COC. Beyond that period though, a COC shall already be required as the plant would already be declared on commercial operation phase.

The ERC noted that a COC issued to a generation company “shall include all of its generating facilities situated in one contiguous area, which are in operation at the time of issuance.”

However, any expansion, conversion or re-powering of any of the generation company’s facilities, or an acquisition of a new generating facility and any stand-by or back-up facilities being operated, must require a separate COC.

Under the rules, the existing generation facilities required to apply for COCs are: spin-off facilities of state-run National Power Corporation or their transferees, including those transferred and subsequently privatized by the Power Sector Assets and Liabilities Management Corporation; Agus and Pulangui complexes; and the facilities owned and operated by the NPC-Small Power Utilities Group.

The others would be: Facilities under build-operate-transfer (BOT) arrangements; facilities owned or operated by a distribution utility; generation companies/facilities under contract with a DU; self-generation facilities’ operating in economic zones and isolated areas.

Newly constructed facilities are also required to secure COCs, including those under BOT arrangement with government-run entities and those operating in isolated areas.

For COC applications, the ERC is expected to render a ruling on specific filings within 60 days, “provided all the requirements shall have been complied with.”

The ERC noted that it has the right to deny COC issuance to any generation company “if the applicant fails to submit all the information and other requirements within the period allowed.”

Apart from application form and company profile, the accompanying documents for COC filing must include certificate of accreditation from NPC or the Department of Energy (DoE) when applicable; three-year operational history; and sworn statement to compliance on industry rules and policies, such as the Philippine Grid Code, Philippine Distribution Code and the Wholesale Electricity Spot Market (WESM) Rules.