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Rect to the Best of My Knowledge; And Republic of the Philippines ENERGY REGULATORY COMMISSION Pacific Center Building San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR APPROVAL OF ADJUSTMENT IN RATESCOVERING THE FIRST TO THIRD REGULATORY YEARS OF THE SECONDREGULATORY PERIOD FOR THE SECOND ENTRANT GROUP UNDER THE TARIFF GLIDE PATH (TGP) RULES, WITH PRAYER FOR PROVISIONAL AUTHORITY ERC Case No. 2017- 04q RC PANGASINAN III ELECTRIC COOPERATIVE (PANELCO III) ENERGY REGULATORY COMMISSION Applicant. x-------------------------------------- x EC EVE Date;2ft1 Time R By: DD Doe APPLICATION APPLICANT PANGASINAN III ELECTRIC COOPERATIVE.(PANELCO III), through counsel, unto this Honorable Commission, respectfully alleges, that: THE APPLICANT 1. Applicant is an electric cooperative duly organized and existing under and by the virtue of the laws of the Republic of the Philippines, with principal office at Brgy. Nancayasan, Urdaneta City, Pangasinan; 2. It is the holder of an exclusive franchise issued by the National Electrification Commission (NEC), to operate an electric light and power distribution services in the sixteen (16) municipalities, namely the Municiplaities of Asingan, Balungao, Binalonan, Laoac, Mapandan, Natividad, Pozorrubio, Rosales, San Manuel, San Nicolas, San Quintin, Sta. Maria, Sto. Tomas, Tayug, Umingan, Villasis; One (1) city namely; Urdaneta City and Barangay Inamotan of Manaoag in the Province of Pangasinan; 1Page NATURE OF THE APPLICATION The instant Application is being filed for the approval of Applicant's proposed adjustment in its Distribution, Supply and Metering (DSM) Rates covering the First to Third Regulatory Years of the Second Regulatory Period for Electric Cooperatives belonging to the Second Entrant Group under the Tariff Glide Path Rules (TGP Rules), as well as other pertinent laws and rules. STATEMENT OF FACTS 1. Sometime in year 2014, Applicant filed with the Honorable Commission an application for approval of proposed adjustment in its DSM Rates pursuant to the TGP Rules, docketed as ERC Case No. 2014-067 RC. 2. In the said application, Applicant prayed for approval of either of the following two (2) proposed alternative DSM rates, to be implemented effective January 2015, to wit: A.WITH PERFORMANCE INCENTIVE "S" LOW HIGHER TGP-A RESIDENTIAL VOLTAGE VOLTAGE DISTRIBUTION CHARGES Demand Charge Php/kW 226.84 Distribution System Charge Php/kWh 0.5971 0.7843 SUPPLY CHARGES: Retail Customer Charge Php/Customer/Mo. 44.32 44.32 Supply System Charge Php/kWh 0.6197 METERING CHARGES: Retail Customer Charge Php/Customer/Mo. 5.16 37.11 37.11 Metering System Charge Php/kWh 0.4467 B. EXCLUDING PERFORMANCE INCENTIVE "S" LOW HIGHER TGP-A (EXCLUDING S) RESIDENTIAL VOLTAGE VOLTAGE DISTRIBUTION CHARGES Demand Charge Php/kW 215.42 Distribution System Charge Php/kWh 0.5670 0.7448 SUPPLY CHARGES: Retail Customer Charge Php/Customer/Mo. 42.09 42.09 21 P a g e Supply System Charge Php/kWh 0.5885 METERING CHARGES: Retail Customer Charge Php/Customer/Mo. 4.90 35.24 35.24 Metering System Charge Php/kWh 0.4242 3. Foregoing application was Applicant's initial application for DSM rate adjustment pursuant to the TGP Rules, under which electric cooperatives are given an opportunity to adjust their rates once every three (3) years, which may occur at the start of the fourth year of the First Regulatory Period and every three years thereafter. 4. Applicant belongs to the Second Entrant Group under the TGP Rules, whose first regulatory period is from January 1, 2012 to December 31, 2017. Having filed its initial application for DSM rate adjustment in 2014 which is the third regulatory year of the First Regulatory Period, the cooperative is filing the instant application this present year 2017, which is the third regulatory year of the Second Regulatory Period, for the proposed adjustment of its DSM ratescovering the first to third regulatory years of the Second Regulatory Period for the SecondEntrant Group. 5. The hearing on jurisdictional requirements, expository presentation and presentation of evidence on Applicant's first TGP application under ERG Case No. 2014-067 RC had been completed. Also, it had already submitted its Formal Offer of Evidence and the application is now submitted for evaluation of the Honorable Commission. Despite the pendency of ERG Case No. 2014-067 RC, Applicant is constrained to adopt and use the proposed DSM rates in said pending application as bases in computing the proposed adjustment in the instant Application. THE PROPOSED DSM RATE ADJUSTMENT 6. Under the TOP Rules, the concerned electric cooperative shall use the following formula in determining the TOP for the fourth to sixth years of the Regulatory Period, to wit: TGPB= TGP + TGP+1 TGP+2 where TGP= l—X+s n= the fourth year of ther Regulatory Period and succeeding Regulatory Periods The TGP calculated for each of the three years will be summed to determine the possible rate adjustment starting on the First Year of the next Regulatory Period. 3Page TGPB "l"(B) "S"(B) TGP B (excluding S) YEAR 288% 0.00% 2.00% 4.88% 2.88% 2015 YEAR 0.00% 3.91% 1.60% -2.31% -3.91% 2016 YEAR 0.00% 0.00% 2.30% 2.30% 0.00% 2017 TOTAL 4.87% -1.03% 7. Applying the methodology embodied in the TGP Rules, herein Applicant calculated the values of the "I", "X" and "S" and came up with the following results, to wit: 8. Utilizing the above values will result in adjustments in the cooperative's DSM Rates covering the first to third years of the second regulatory period for electric cooperatives belonging to the Second Entrant Group, as follows: A.WITH PERFORMANCE INCENTIVE "S" CUSTOMER TYPE Low Higher UNITS Residential Voltage Voltage Distribution Charges: Demand Ph P1kW 237.89 Charge Distribution PhP/kWh 0.6261 0.8224 System Charge Supply Charges: Retail Customer PhP/CustomerlMo 46.48 46.48 Charge Supply System PhPIkWh 0.6498 Charge Metering Charges: Retail Customer PhP/MeterlMo. 5.41 38.93 38.92 Charge Metering PhP/kWh 0.4685 System Charge 41 P a g e B. EXCLUDING PERFORMANCE INCENTIVE "S" CUSTOMER TYPE Higher UNITS Residential Low Voltage Voltage Distribution Charges: Demand Charge PhP/kW 213.20 Distribution System PhP/kWh 0.5611 0.7311 Charge Supply Charges: Retail Customer PhP/Customer/Mo Charge 41.65 41.65 Supply System PhP/kWh 0.5824 Charge Metering Charges: Retail Customer PhP/Meter/Mo. Charge 4.85 34.88 34.88 Metering System PhP/kVVh 0.4198 Charge 9. Consequently, Applicant respectfully prays that it be allowed to implement either of the above two calculated alternative DSM rates, effective January 1, 2018 and up to December 31, 2020. SUPPORTING DATA AND DOCUMENTS 10. In support of the foregoing computations, Applicant is submitting herewith the following documents, which are being made integral parts hereof, to wit: Annex Nature of Document Markings Proposed TGP Calculations and supporting documents using the prescribed templates: V. A to C Index UIfl Calculation Efficiency Factor "X" Calculation Performance Incentive "S" Calculation VI MFSR - Sections B and E (201 3-2016) Billing Determinants Template (2013-2016) VII (kWh Sales, No. of Customers, kW Demand) VIII Sample Bills per customer type (2013-2016) IX Regional CPI (201 3-2016) X RFSC Utilization (2014-2016) XI Consumer Complaints Summary or Tracking Form (2014-2016) XII Audited Financial Statements (2014-2016) 5 I P a g e B) EXCLUDING PERFORMANCE INCENTIVE "S" CUSTOMER TYPE Low Higher UNITS Residential Voltage Voltage Distribution Charges: Demand Charge PhP/kW 213.20 Distribution System 0.5611 0.7371 Charge PhP/kWh Supply Charges: Retail Customer 41.65 41.6 Charge PhP/Customer/Mo Supply System Charge PhP/kWh 0.5824 Metering Charges: Retail Customer 4.85 34.88 34.88 Charge Ph P/Meter/Mo. Metering System 0.419 Charge 1PhP/kWh Other reliefs, just and equitable in the premises are likewise prayed forQuezon City,Philippines, this 16th day of April 2017. ,ENO,N$. SUPEZ oups(for Pifioner Web-Jet B'dg. 64 Quezon Ave. /.506or.BMA St. Quezon City PTR No. 8582064 2/13/17 Cal. City IBP LRN 01592 6/24/99 Pasig City Roll No. 25041 MCLE Compliance No. lV-0002676 Tel. No. (02) 416-4551 7JPage VERIFICATION AND CERTIFICATION OF NON-FORUM SHOPPING I, ENGR. ALLAN G. CASEM, Filipino, of legal age, and with office address at Pangasinan Ill Electric Cooperative (PANELCO III), Nancayasan, Urdaneta City, Pangasinan, after having been duly sworn to in accordance with law, depose and state, that: I am the General Manager of Pangasinan Ill Electric Cooperative (PANELCO Ill), a co-applicant in the filing of the APPROVAL OF THE APPLICATION OF ADJUSTMENT IN RATES PURSUANT TO THE TARIFF GLIDE PATH (TGP) RULES; 2. I have caused the preparation and filing of the Joint Application; 3. I have read the contents thereof and all the allegations contained therein are true and correct to the best of my knowledge; and 4. I further certify that I have not filed any action involving the same issues in the Supreme Court, Court of Appeals, or any other courts or tribunals. If ever there is a case pending before the said courts or tribunals involving the same issues, I undertake to inform the Honorable Commission of such fact within five (5) days from knowledge thereof. AFFIANT FURTHER SAYETH NAUGHT. Allan G. Casem Affiant SUBSCRIBED AND SWORN to before me this 17th day of April, 2017 in Urdaneta City, Pangasinan. Affiant personally appeared and exhibited to me his Social Security Number 33-1505941-3 issued at Urdaneta City Pangasinan as his competent proof of identity. t. Doc. No. '&5 NOTAfiY PBLU Page No Book No. cLq; / hLW11 O T PM4ELCO til URDNET-I .
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