RePublic of the ENERGYREGULAToRYcovTUTSSIoN--- Sutt Miguel Avenue, Pasig CitY

AUTHORITY, ERC CASE NO. zorS-oz9 RC II ELECTRIC COOPERATfVE, INC. Promulg'arec (CEBECO rr), Applicant. MAR 2.-6 20rs x------'------x

ORDER

(CEBECO On z6 April zot8, Cebu II Electric Cooperative, Inc' filed an Applicqtiondated 19 Aprlt zffi seeking the II) -(Opplication) (:TGP "B") commission's upp.o*r of its Tiriff Glide Path "8" calculation po..ru.rt to Article vII of the RSEC-WI{ and Commission'i Resolution No. 8, Series of 2or1., with prayer for provisional authoritY.

On 16 July zot8, the Commission issued an Order and Nrrhce of public Hearin-g, setting the instant Application for initial hearing on z7 September zor8.

On 14 September zot8, CEBECO II filed an [Jrgent Motionfor Resetting tUotio") and. to Admit Amended AppLicgtioy due to di....pu"rrcy discovered in its metering facility which etffected its proposed TGP "B".

In the said Am ended Application, CEBECO II alleged the following, among others:

-.a..aa_ia_5aaa ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE z OF rz created and CEBECO II is an Electric Cooper-ative 1. Applicant Decree No' existing pursuant t Jsidential w tted at Malingin'Bogo ;;';;-;;;ded, by its General City, Cebu, Philip :rein led by rlrtue of Board Manager, LoweII o September 8' zol8 of Resolution N"'^'ri series of zorS dated attached hereto as the Board' of Directors, copy of which is Arrrt.* "A" and mad'e an iniegral part hereof; ThefilingoftheinstantApPlicationislikewiseauthorizedunder the aforecited Board Resolution; 2,Applicanthasbeengranted'by.theNationalElectrification Cainitti.t.ation (NEA) an authonty to electric light and power withinthe covera Citi"t of Eogo and Danao and the Mun , San Remigio, Tabogo Tuburan, Sogocl, Catmon, Carmen and Province of Cebu;

3.

4.

Higher Particulars Residential LowVoltage rVoltaqe Distribution Charges: 219.68 PhP/Kw o.7595 PhP/KWh o.5782 Supply Charges: PhP/cust/mo 42.92 42,92 PhP/kwh o.6oor Metering Charges: PhP/cust/mo 5.oo 35.94 35.94 PhP/KWh o.4gz6 ERC CASE NO. 2o18-o29 RC ORDER/o6 Marchzorg PAGE 3 OF rz

S.That,onApriltg,2oro,aPetitiontolnitiateRule-Makingonfor Glide Path Pursuant to Article MI of the Rules the Tariff (TGP ifr" Bf""tri" Cooperatives Wheeling Rates Rules) i-""G ( was filLd and docketed as ERC ase No' 2o1o-oo5;

the Electric cooperatives' Wheeling Rates;

T.That,pursuanttoArticleVIIoftheRSEC-\A,R,theERCadloptsi/' the Rules governing the.movement o1'the ;;-'p;;;ulgates be initial tariff arti"g the fegulator, period' which shall d.etermined by"up. the following formula: 66X)' Tariff x ft+Index "Il,'1!fficierrcA Factor t- P eriortnonce Inc entiu e " S " f ..I,, itr The IndeX, shall be an escalation factor to be usr:d ,al,r.tirg tt. ,tut* to reflect the combined impact of inflation factor "X,' tlr and. the fo"a There shall be an efficiency i-*th- their account for th? operational efficiency of the ECs.,in setting rates. rrr"r"'rt il ; performance incentive "S" which shalll reward o. p"ir"tire^ti the^EC for the above or below sta,dar'C performance, resPectivelY'

8. AccordinglY, on APril 30, 20 application for the aPProval calculation for the first to th period (TGP "A")docketed follows:

Tariff TariffGlide Approved Glide Path Path Rates Tyre of Particulars Unit Rates Consurner RSEC-Rates excluding S includinlr S o.6o+B Distribution PhP/kwh o.5782:. o.6447 o.6277 Supply PhP/KWh o.6ool o.66gr o.4525 Residential Metering PhP/kwh o.4326 o.+824 Metering PhP/meter/nro oo 5.58 5.23 o.7944 Distribution PhP/kwh o.7591; o.8468 LOW 44.89 Supply PhP/cust/mo 42.92 t2.86 VOLTAGE Metering PhP/meter/mo 35.94 40.o7 37.59 229.79 Distribution PhP/kw zrq.6[i 244.94 M.8q HIGHER Supply PhP/cust/mo 42.92 a2.86 VOLTAGE Metering PhP/meter/mo 3s.94 40.o7 27.59

g. Pending resolution of ERC Case No' 2015-086 RC, Applica-nt '' propo.J. the following Tariff Glide Path calculation for the io".tt to the sixth year-of tU. first regulatory period(TGP "B"):

g.a. Arnend-ed Ind.ex "I" Calculation

9.a.1. CPI Calculation (zor5-zo18) ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 4OB rz

CPI Particulars Average CPI

YEARn-r (zor5) r.4r.6o YEARn (zo16) r44.2o YEARn+r (zor7) 147.9o YEARn+z (zor8) 153.eq (zor5-2'o18) g.a.z. Arnend-ed Growth Rate Calculation

Particulars Total I(Wh Sales GR

YEARn-r (zor5) 279$77,r99 ro,z4%o YEARn (zo16) 3o8,r95,r45 l^z.z4%o YEARn+r (zor 345,9r5,557 YEARn+z g74,9o8,879 8.21.1Yo (zor 8) *X" 9.b. Efficiency Factor Calculation (zor5-zor8) 9.b.1. Calculation of Man-hours

zor13 Personnel 20L5 zor6 20t7 8o4,l3z PI.P,2'o8 Regular 7661060 765,568 Contractual Meter Reading 52,439 49,428 47J.oa .54rr1t4 Line Clearing 7,443 to,8oo L4,4oo '77,2oo Guard 96g6o ro8,8o4 rzo,89r 125,993 Meter Change 7,l.68 7rl-68 7rl.68 2135,2 ConsEuction 21352 2,352 Line Distribution rrr86,o35 -securitvTotal Man-hours 922,272 944,L2o 996,o44 g.b.2. FIE/CPE (zor5-zo18)

Particulars 2O15 zor,6 20L7 zorS 1r186'ro35 TOTAL MANHOURS 9221272 g441L20 996,o44

Full tirne equivalent man z,o8o z,o8o z,o8o 2,Or8O hours per Year FTE 443 454 479 570

Total nurnber of billed lzg,r.6l. rgz,769 a39,453 r44J96 connections (Yearend) 2!;4 CPE 278 293 29r

(' s calculatilon g . c.Arnende d. P erformance Incentive "

9.c.1. Arnended SAIDI Calculation (zo16-zo18)

zor6 2O17 zlorS Custorner Minutes go,736,6Z3r!4_ a27.23:5.n40.5o a32,o84;366.48 ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 5 OF rz

(:zo16-zo18) 9.c.2. Arnend.ed SAIFI Calculation

(zor5-zor8) 9.c.3. Antended SL Calcrrlation 20t7 zorS NTWH 2O15 zo16 4t9,5o6,745 kWh Purchased i3o7,592,625 34212831333 388,313,o49 374,9o8,879 kWh Sold 2791577,a99 3o8,r95,r45 345,9r5'557 gg,rg'7,866 Svstem Loss (in kwh) z8rot5r4z6 34,o88,188 42,397,492 lo.gz%o 9.4a% Systern Loss (in %) g.tt%" 9.96"/" Detailsoftheaforementionedgtnendedcalculationsare p.o"ia"a and' contained in Annex "B" hereof' ment in as observed, there is a ro.^- That, "S" tppii.ant's rates rlsdting in a ding ,,inif" t g.7to/o adjustm rates' as shown hereunder:"gative

B TGP B rrII ilxil ilsrt TGP (including S) (excluding S)

-iy.7t"l':t YEARzo16 o.oool, 3.7a%o 7..goo/o -t.i9to/o YEARzorT o.oool; o,oo%" t.goo/o t.g)oo/" o.oo"t'6 o.oool:, o.oo%" LqoY" t.9)oo/o o.oo96 YEARzorS -:t.7r9i, TOTAL Lcrgo/o rr. That, in support of the application, attached herewith in a separate bundle are the following:

As Annex Document

4C',) Arnended MFSR (Sections B & E) (zor+- zorZ) 66Dtt Arnend.ed Billing Determinants Template (kWh Sales, No. of customers, kW Demand (zor 4-zolr7)

65Ert Sample Bills (r per customer type for the years 2C14-2C17)

"F" Regional CPI for the years 2ot4-2o77 ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 6 OF rZ

RFSC/Reinvestment fund Iltilization for the years 2oL5-2OL7

Consumer Complaints (Summary or tracking form) for the years 2oLS-2otT

Audited Financial Statement (zot'-zor7)

COMPLIANCE WITH PRE-FILING REQUIREMENTS

rz. In compliance with Section z, Rule 6 of the BRC Rulers of Practice and Procedure, copies of this Application together rnrith all its annexes and accompanying documents had treen furnished by Applicant the Legislative Body of the City of Bogo where Applicant principally operates and the Legislative Bodly of the Province of Clebu. Likewise, the Application was published in a newspaper of general circulation within the franchise area of the Applicant.

$.As proof of cornpliance of the service of the copies of the Application together with all its annexes are the Certifications issued by the Authorized Representativr:s of the Local Government Un.its and/or the Affidavit of Service execute

14. Moreover, prior to the filing of this Application, a pre-filing conference with the concerned staff of the Commission was conducted pursuant to Section 4 of Rule 6, and for purpoSeS of determining completeness of the supporting documr:nts attached to the Application

APPLICATIONFOR PROVISIONAL AIJTHORITY

15. That the current rate is no longer responsiv,e ofrd adequate to the needs of the Applicant since the costs of providing electric service to the consumers increased significantly;

16. That, with this unresponsive current rate, an urgent remedy is imperative and s}'rould necessarily be implemented;

t7.That, considering the length of time to resolve the instant Application, it being not the only application to be resolvecl by the Commission, it is only appropriate and reasonable that a provisional auth,crity to immediately implement the proposed rate herein prayed for shall be granted;

rB. That, the provisional authority thus prayed for would bring forth relief on the financial constraints suffered b./ the Applicant, if ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 7 OF rz

not remedied, may resort to unreasonable operal-ional dec.line. Attached herewith is the judicial affidavit of the Finance Manager of the Applicant, Snowie R. Cogal, in support of the prayer for provisional authority marked as Annex "N". PRAYER

WHEREFORE, foregoing premises considered, it is most respectfully prayed of this Honorable Commission, after due notice and hearing:

1. To appror,,e the annended proposed Tariff (]lide Path "B" Rates (TCIP "8")calculated as follows:

TGP "A" TGP "B" Tariff Glide I'ath TarilT Glide Pa ,h calculation for the ca-lculation for tl IE Type of Provisionally first to the third year fourtlh to the six h Particulars Unit Approved Consumer of the first regulatory year of the fir st RSEC-Rates period regulatoryperiod including excluding incluLding; excludi tO S S t; t Distribution PhP/kwh o.rz9z o.6447 o.6o48 o.6sts o.s8z:: Supplv o.669t o.6277 Residential PhP/kwh o.6oor o.6i3za, o.6o4t Meterins PhP/kwh o.ag,z6 o.4824 o.4525 o.Aqrg o.4.351 Meterine PhP/meter/mo oo 5.58 5.2"3 5.(i9 5.o4 Distribution PhP/KWh o.76q6 o.846B o.79,+4 o.8697 o,764t LOW VOLTAGE Supolv PhP/cust/mo 42.92 47.86 44.8i9 a8,8r 4?.2? Meterine PhP/meter/mo 35.94 40.o7 37.59 ao.8t 16.zo Distribution PhP/kW 2rq.68 244.94 229.'79 zaq.8r 2'27..2F HIGHER VOLTAGE Supplv PhP/cust/mo 42.92 47.86 44.89 +8.8r /L3.2? Metering PhP/meter:/mo qq.q4 40.o7 37.59 40.87 36.2o

2. To issue an Order granting Applicant it provisiclnal authority to implement the proposed tariff glide path rates herein prayed for pending hearing and final evaluation of the application by the Honorable Commissir:n.

Other reliefs, just and equitable under the premises are likewise prayerd for.

Finding the said Motion in order, the same is herebl, GRANTED. Accordingly, t};.e Amended Application is admitted.

In view thereof, the instant Application is hereby set ianew for' the determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference, and presentation oI evidence on 22 May z,org (wednesday) at nine o'clock in the morning (9:oo AM), at CEBECO fl's Principal Office at Malingin, Bogo City, Cebu. ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 8 OF rz

CEBECO II is heneby directed to:

r) cause the publication of the attached Notice of public Hearing in two (z) newspapers of nationwide circulation in the Philippines at its own expense, twice (zx) with:in two (z) successive lveeks, the dates of publication not treing less than seven (il days apart and the date of the la.st publication to be made not later than ten (ro) days before the date of the scheduled initial hearing;

z) Furnish the offices of the Provincial Governor, the city and Municipal Mayor, and the Local Government Unit (LGU) legislative bodies within the affected franchise area with copies of this order and the attached Notice of public Hearing for the appropriate posting thereof on their respective bulletin boards ;

3) Inform the consumers within the affected franchise area of the filing of the Application, its reasons therefor, and of the scheduled hearing thereon, by any other means available and appropriate;

4) Furnish the Office of the Solicitor General (OSG), the Commission on Audit (COA), and the Committees on Energy of brcth Houses of congress with copies of this order and the attached Notice of Public Hearing. They are hereby roqur:sted, if they so desire to send their duly authorized representatives at the scheduled hearin;g; and

5) Furnish all those making requests with copies of the Application and its attachments, subject to reimbursement of reasonable photocopying costs.

on the date of the initial hearing, cEBECo II must submit to the Commission its r,rritten compliance with the aforementioned jurisdictional requirements attaching therewith, methodically arranged and duly marked the following:

t) The evidence of publication of the attached Notice of Public Hearing consisting of affidavits of the Editors or Business Managers of the newspapers where the said Notice of Public Hearing were published, and the complete issues of the said newspapers;

z) The evidence of actual posting of this order and the attached Notice of Public Hearing consisting of ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE 9 OF rz

certifications issued to that effect, signed by the afore- mentioned Governor, Mayors, and LGU legislative bodies or their duly authorized representatives, bearing the seals of their offices;

3) The evidence of the means employed by Applicant to inform the c:onsumers within the affected franchise area of the filing of the Application, its reasons therefor, and of the schedule,d hearing thereon;

4) The evidence of receipt of copies of this Order: and the attached Notice of Public Hearing by the OSG, COA, and the Commitl.ees on Energy of both Houses of Congress;

5) The evidence of receipt of copies of the Applicatton and its attachments by all those making requests therefrrr, if any; and

6) Such other proof of compliance with the requirements of the Commission.

CEBECO II ancl all interested parties are also required to submit, at least five (S) days before the date of initial hearing and Pre- Trial Conference, their respective Pre-Trial Briefs containing, among others:

t) A summary of admitted facts and proposed stipulation of facts;

z) The issues to be tried or resolved;

g) The documents or exhibits to be presented, stating the purposes and proposed markings therefor; and

4 The number and names of the witnesses, with their written testimonies in a Judicial Affidavit form attached to the Pre- trial Brief.

Failure of CEBECO II to submit the required Pre-Trial Brief and Judicial Affidavits of its witnesses within the prescribed period shall be a ground for cancellation of the scheduled hearing, and the resetting of which shall be six (6) months from the said date of cancellation. ERC CASE NO. 2o18-o29 RC ORDER/o6 March zorg PAGE ro OF rz

CEBECO II must also be prepared to make an e:xpository presentation of the instant Application, aided by whatever communication medium that it may deem appropriater for the purpose, in order to put in plain words and explain, for the benefit of the consumers and other concerned parties, the nature of the Application, with relevant information and pertinent details substantiating the reasons and justifications being cited in support thereof.

SO ORDERED.

Pasig City, o6 Merch zor9.

FORAND BYAUIHORITY OF THE COMMISSION:

JOSEFINA PATRIC GPALE--ASIRIT Comn'llsli

Copy Furnished:

1. A.C. Gaviola Law Office Counselfor Applicant CEBECO II Room 2o3, 2nd Floor, Cror,rryr Port View Hotel 3.d Avenue, North Reclamation Area,

2. Cebu II Electric Cooperative, Inc. (CEBECO II) Applicant Malingin, Bogo City, Cebu

3. Office of the City Mayor Bogo City, Cebu

4. Office of the Local Government Unit (LGU) legislative body Bogo City, Cebu

5. Office of the City Mayor Danao City, Cebu

6. Office of the LGU legislatirre body Danao City, Cebu

7. Office of the Municipal MzLyor Medellin, Cebu

8. Office of the LGU legislative body Medellin, Cebu

9. Office of the Municipal Mayor DaanBantayan, Cebu

ro, Office of the LGU legislative body DaanBantayan, Cebu ERC CASE NO. 2o1i8-o29 RC ORDER/o6 March:zor9 PAGE rr OF rz

Office of the Municipal Mayor San Remigio, Cebu

Office of the LGU legislative body San Remigio, Cebu

Office of the Municipal Mayor , Cebu

14. Office of the LGU legislative body Tabogon, Cebu

15. Office of the Municipal I\4ayor Borbon, Cebu

16. Office of the LGU legisla[ive body Borbon, Cebu

17. Office of the Municipal l\{ayor Tabuelal, Cebu

rB. Office of the LGU legislative body , Cebu

19. Office of the Municipal l\Iayor Tuburan, Cebu

zo. Office of the LGU legislal,ive body Tuburan, Cebu

zr. Office of the Municipal IVIayor Sogod, Cebu

zz. Office of the LGU legislative body Sogod, Cebu

23. Office of the Municipal Vtayor Catmon, Cebu

24. Office of the LGU legislative body Catmon, Cebu

25. Office of the Municipal M.ayor Carmen, Cebu

26. Office of the LGU legislative body Carmen, Cebu

27. Office of the Municipal Mayor Compostela, Cebu

28. Office of the LGU legislative body Compostela, Cebu

29. Office ofthe Governor Province of Cebu

3o. Office of the LGU legislative body Province of Cebu

3r. Office of the Solicitor General r34 Amorsolo Street, Legaspi Village, Makati City

32. Commission on Audit Commonwealth Avenue, Quezon City

Jg. Senate Committee on Energy GSIS Bldg. Roxas Blvd., iPasay City ERC CASE NO. 2o1g-o29 RC ORDER/o6 March zorg PAGE rz OF rz

34. House Committee on ErLergy Batasan Hills, Quezon City

35. Philippine Chamber of Commerce and Industry (pCCI) Floor, 3'd Chamber and Industry Plaza (CIP), io3o ca:mpus Avenue corner l?ark Avenue, McKinley Town Center, Fort Bonifacio, Taguig City

36. Regulatory Operations Service rTtt Floor Pacific Center, San Miguel Avenue, pasig City. Republic of the Philippines ENERGY REGUI-ATORY COMMISSION San Miguel Avenue, Pasig City

IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE TARIFF GLrDE PATH ,,B" (TGP 6(8") CALCUI-ATION PURSUANT TO ARTICLE VII OF THE RSEC.\MR AND ERC RESOLUTTON NO. g, SERTES OF 2otr) WITH PRAYER FOR PROVISIONAL AUTHORITY,

ERC CASE NO. zor8-oz9 RC CEBU II ELECTRIC COOPERATfYE, INC. (CEBECO rr), [rAR Applicant. 2 6 2019

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIES:

Notice is hereby given that on z6 April zor8, cebu II Electric cooperative, Inc. (cEBECo II) filed an Application dated 19 April 2918 (Application) seeking the commission's approval of its Taliff Glide Path "B" (TGP "B") calculation, pursuant to article vII of the RSEC-WR and commission's Resolution No. 8, Series of zorr, with prayer for provisional authority.

on 14 september zor8, cEBECo II filed an (rrgent Motionfor Resetting and to Admit Amended Application due to discrepancy discovered in its metering facility ,,8,,. whlih affected its propo..a rci,

In the said Am ended Application, cEBECo II alleged the following, among others:

1. Applicant cEBECo II is an Electric cooperative created and existing pursuant to the pror.isions of pre:sidential Decree No. ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HEARING/o6 March zolg PAGE z OF 8

269 as amended,.with principal office located at Maringin,Bogo City, Cebu, Philippines, represented herein by its General Manager, Lowell o. Belcifia, duly authorized by virtue of Board Resolution No. 92, series of zor8 dated september g, zorg of the Board of Directors, copy of which is ittached hereto as Annex "A" and made an integral part het:eof;

The filing of the instant Application is likewise authorized. under the aforecited Board Resolution;

2. Applicant has been granted by the National Electrification Administration (NEA) an authority to operate and distribute electric light and p_ower within the coverage area comprising the cities of Bogo and Danao and the Municipalities of^ vr"dJlli.r, Da_anBantayan, San Remigio, Tabogon, Borbon, Tabuelan, Tuburan, Sogod, Catmon, Carmen and {lompostela, all in the Province of Cebu;

THE APPLICATION AND ITS PURPOSE

3. That, on Septembet 23, 2oog, the Honorable Commission issued urrq approved Resolution No. 20 Series of 2oo9, otherwise known as "RULES FoR SETTING THE ELECTzuC COOPERATIVES WHEELING RATES (RSEC-WR), which established a new rate setting methodology for Electric cooperatives, the issuance of which was madJpursuant to its authority as provided under section 4s(f.) of Republic Act No. 9L86, otherwise known as the "Electric power Industry Reform Act of 2oo1" (EPIRA) and Section 5 (a), Rule iS of its Implementing Rules and Regulations (IRR;

4. That, pursuant to the afore-mentioned ERC Resolution, Applicant filed an Appiication for approval of the Rate adjustment pursuant to the new rate setting methodology, as provided under Resolution No. zo dated September 23, 2oo9 on October 21, 2oo9. Accordingly, after the required public hearing, ERC in its Order dated January rr, ioro granted Applicant the following provisional rates:

Particulars Residential LowVoltage Higher Voltaee Distribution Charges: PhP/Kw zrg.68 PhP/kwh o.5782 o.7595 Supply Charges: PhP/cust/mo 42.92 42.92 PhP/kwh o.6oor Metering Charges: PhP/cust/mo 5.OO 35.94 35.94 PhP/kwh o.4tz6

5. That, on Aplil Lg, 2oLo, a Petition to Initiate Rule-Making on the Tariff Glide llath Pursuant to Article vII of the Rules for setting the Electr:ic cooperatives wheeling Rates (TGp Rules) was filed and docketed as ERC Case No. zoro-oo5; ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HEARING/o6 March z.olg PAGE s OF 8

6. That, after series of public consultations conducted by the ERC in Luzon, Visayas and Mindanao, in its Resolution No. g, dated May z, zot pt the "Rules Governing the Tariff Glide e VII ,rf the Rules for Setting the Electric Rates;

,7

Tariff x [t+Index "l"-EfficiencA Foctor ..X', + P erfortnantce Inc entiu e,,S uJ

The Index, "I" shall be an escalation factor to be used in adjusting the rates to reflect the combined impact of inflation and the load growth. There shall be an efficierrcy factor "X" to account for the operational efficiency of t.he ECs in setting their rates. There shall be a performance incentive "s" which shail reward or penalize the EC for the above or below standard. performance, respectively.

8. Accordingly, on April 30, 2015, Applicant cEBECo II filed an application for the approval of the proposed Tariff Glide path calculation for the first to the third year of the first regulatory period (TGP "A")docketed as ERC Case: No. zo15-oS6 nC as follows:

Tariff Type of Tariff Glide Particulars Unit Approved Glide Path Consumer RSEC-Rates Rates Path Rates excluding S includine S Distribution PhP/kwh o.szt3z o.6aaz o.6o+8 Supply Residential PhP/kwh o.6oor o.66qr o.6zzz Meterine PhP/kwh o.43:26 o.4824 o.4525 Meterine PhP/meter/mo 5.o() 5.58 5.23 Distribution LOW PhP/kwh o.75<)5 o.8468 o.7944 VOLTAGE Supply PhP/cust/mo 42.q2 t2.86 aa.8q Metering PhP/meter/mo 35.94 40.o7 37.59 Distribution HIGHER PhP/KW zr9.(i8 244.q4 229.79 Supply VOLTAGE PhP/cust/mo 42.q2 t2.86 44.89 Meterins PhP/meter/mo 35.94 40.o7 37.59 g. Pending re-solution of ERC case No. 2015-086 RC, Applicant-fbr proposes the following Tariff Glide path calculation the fourth to the sixth year of the first regulatory period(TGp ,.B,,): g.a, Arnendedlndex',I,,Calculation

9.a.7. CPI Calculation (zor5-zorB)

Particulars Average CPI CPI

YEARn-r (zors) r4r,6o YEARn (zo16) 1.44.2O r,8+% ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HEARING/o6 March 201,9 PAGE + OF 8

9.a.2. Arnended Growth Rate Calculation (zor5-zor8)

Particulars Total KWh Sales GR YEARn-r (zors) 279,577,L99 YEARn (zo16) 3o8,195,r45 to.z4%" YEARn+r (zorz) 345,945,557 rz,z4%o YEAR n+z (zor8) 874,go8,879 8.zt% 9.b. Efficiency Factor "X" Calculation 9.b.r. Calculation of Man-hours (zor5-zor8)

Personnel 2O15 zot6 2OL7 zorS Regular 766,o6o 765,568 8o4,l.3z 919,ZO8 Contractual Meter Reading 52,439 49,428 47,L01 54,Lr4 Line Clearing 7,443 to,8oo 14,4oo 77)2OO Security Guard 96.,36o ro8,8o4 rzo,89r 425,993 Meter Change 7,l.68 7,l.68 7rt68 Construction 21352 21352 2,352 Disribution Line Total Man-hours 922,272 944,L20 996,o44 r,186,o35

g.b.z. FIE/CPE (zor5-zo18)

Particulars 2O75 zol.6 2C)17 zorS TOTAL MANHOURS 922,272 944,,.20 996,o44 rr186,o35 FuIl time equivalent rnan hours per year z,o8o zro8o zroSo z,o8o

FtE 443 454 479 570 Total nurnber of billed connections (yearend) tz3,r.6r. rS2,Z6g r39,453 r44,79t6 CPE 278 293 294 254

9 . c.Arnend.e d. P erformance Incentive " S " Calculation g.c.r. Atnended SAIDI Calculation. (zo16-zo18)

zot6 2017 zo18 Custorner Minutes Affected 9o,756,67s.r4 l.27,235,,,.40.5O rgz.o8a.r66.a8 No. of Billed Customers 13o,56z 137,O33 1.42,472 SAIDI 6g+.gz gz8.so 927.tJg ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HEARING/o6 Marrch zo1.g PAGE s OF 8

9.c.2. Arnended SAIFI Calculation (zot6-zor8)

zot6 2Ot7 zo18

Custorners Affected 1..2,'.7'.7.4,2q.10 qqt.l|6o.6t r.zr8.rgs.6o Custorners served 13o,s6z 13i"033 r42,4.72 SAIFI 10.55 6.qq 8.ss 9.c.3. Arnended SL Calculation (zor5-zor8)

IyIWTI 2o15 zot6 2ot7 zorS

kWh Purchased 3o7,592,625 342,283;333 388,313,o49 4r7y,5o6,745 kWh Sold 279$77tL99 3o8,195,r45 345,9r5,557 374;3o8,879 System Loss (in kWh) 28,ot5,426 34,o88,188 42,397,492 39,t97,866 Systern Loss (in %) 9.tt%" 9.96% to.9z%o 9.48"/"

Details of the aforementioned annended. calculations are provided and contained in Annex "B" hereof.

ro. That, as observed, there is a minimal upward adjustment in Applicant's rates resulting in a t.gg%oadjustment including "S" while negative J.Jto/o adjustment excluding "S" on the rates, as shown hereunder:

ilIrt Ixrt ilsil :TGP B TGP B (including S) (excluding S)

YEAR zo16 o.ooo/o l.lt%" t.goo/o -r,8r%" *.7LYo YEARzorT o.ooo/o o.oo%" t.go%" t.go%" o.o

rr. That, in support of the application, attached herewith in a separate bundle are the following:

As Annex Document "C') - Arnend.ed MFSR (Sections B & E) (zor+- zorT) "D') - Arnended Billing Determinants Template (kWh Sales, No. of customers, kW Demand (zor 4-zor7)

,.E)) - Sample Bills (r per customer type for the years zol^4-zo17)

"F" - Regional CPI for the years 2or4-2ot7

$G" - RFSC/Reinvestment fund Utilization for the years 2ot5-2or7

"H)) - Consumer Complaints (Summary or tracking form) for the years 2orS-2oLT ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HnemNG/o6 March 2or9 PAGE 6 OF 8

..lr) Audited Financial Statenrent (zotl-zor7)

WITH

rz. In compliance with Section Practice and Procedure, coPie all its annexes and accom furnished bY APPlicant the Le where Applicant principally oper-a in the province of Clbu. t it

13.As proof of compliance of the service - - epplication together with a! it9 annexe isiued bY the Authorized RePresen Government Units and/or the Affidavit an emploYee of the APPlicant Application bearing the receiving O-ffices as Annexes "J') and attached hereto as Annexes "L" Publication and the newspaper issue containing the published Application; a pre-filing 14. Moreover, ^*itttprior to the filing of thiq A'pplication, conferen"" the concerned staff of the Commission was conducted. pursuant to Section 4 of Rule 6, and. for purposes of determinin-g completeness of the supporting documents attached to the APPlication

to r5.-" That the current rate is no longer_ responsive and adequate th; needs of the Applicant since the costs of providing electric service to the co.tsumers increased significantly; is 16. That, with this unresponsive current rate, an urgent remedy imperative and should necessarily be implemented;

17. That, considering the Application, it being n the Commission, it is provisional authoritY to immer iate herein prayed for shall be granted; bring fortlt_ 18.-- That, the provisional authority thus prayed_f9r wguld relief on the financial constraints sufferred by the Applicant, if not remedied., may resort to unreasonable operational decline' Attached herewitir is the judicial alfidavit of the Finance fufu"u!". of the Applicant, Snowie R. Cogal, in supp-ort of the prayer"for provisional authorib marked as Artnex "N"' ERC CASE NO. 2o18-o29 RC NOTICE OF PUBLIC HEARINGIo6 March 2or9 PAGE Z OF 8

PRAYER

WHEREFORE, foregoing premises considered, it is most respectfully prayed'of this Honorable Commission, after due notice and hearing:

1. To approve the amendedpropos_ed Tariff Glide Path 'B" Ratel (rGP "B")calculated as follows:

TGP.'A" TGP "B,' Tariff Glide Path Tariff Glide Path calculation for the calculation for the Provisionally first to the third Year fourth to the sixth Type of Particulars Unit Approved ofthe first regulatory year of the frrst Consumer RSEC-Rates neriod requlatory period including excluding including excluding S S s s o.64.+7 o.6o4B Distribution PhP/kwh o.s78z o.6szi o.s8z.q o.669r o.6277 Suppiv PhP/kwh o.6oor o.6824 o.6o+4 Residential o.4824 o.4525 Metering PhP/kwh o.+gz6 o.4919 o.4357 Metering PhP/meter/mo 5.OO 5.511 5.23 r.6s 5.o4 o.8468 o.7944 Distribution PhP/KWh o.7595 o.8637 o.t6tg LOW Supply PhP/cust/mo 42.92 47.tt6 44.89 +8.8r 43.23 VOLTAGE g6.zo Metering PhP/meter/mo its.94 40.o7 37.59 40,87 244.94 229.79 Distributiorr PhP/kw 2r9.68 2rtg.81 22L.25 HIGHER PhP/cust/mo 42.92 47.tt6 44.89 a8.8r 43,23 VOLTAGE Supply Meterinq PhP/meter/mo i\5.94 40.o7 37.59 ao.8z r6.zo 2. To issue an order granting Applicant a provisional authority to implement the proposed tariff glide path rates herein piayed for pending hearing and fi1al evaluation of tire applicatiora by the Honorable Commission.

other reliefs, just and equitable under the premises are likewise PraYed for.

The Commission has set the Appliccttton for determination of compliance with the jurisdictional requirements, expository pres^entation, Pre-trial Conference, and presentation of evidence on zz May 2otg (Wednesday) at nine o'clock in the morning (g:oo AM), at QEBECO II's Principal office at Malingin, Bogo CiW, Cebu.

All persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission a verified Petition to Intenrene at least five (.S) days prior to the initial hearing and subject to the requirements under Rule 9 of the zoo6 ERC Rules of Piactice and Procedure, indicating therein the docket number and title of the case and stating the following: ERC CASE NO. 2o18-o29 RC NOTICEOFPUBLICHEARINGIo6MaTch2o1r9 PAGE 8 OF 8

r) The petitioner's name and address; z) The nature of petitioner's interest in the subject-matter of the p.o.""ding and the way and manner in which such interesi is affeJted by the issues involved in the proceeding; and 3) A statement of the relief desired'

All other persons who may want their views known to the Commission with resPect to the s their Opposition or Comment ther before Applicant rests its case, Rule g of the 2c,c,6 ERC Rul purti.rifu. form of Opposition or Comment is required, but the 'do.u-.rrt, letter, o. *rltit g should contain the following:

r) The name and address of such person; z) A concise statement of the Opposition or Comment; and 3) The grounds relied uPon.

All such persons who wish to have a copy- of-the Application may ..q"".t fr^om Applicant that they be-.furnished with the same p-.io. to tfre date of the initial hearing. Applicant is hereby directed to ?urnish all those making such request with copies of the^Applicatton and its attachments, sirbject to the reimbursement of reasonable photo.opyrng costs. Any such person q3y likewise examine the Zppticaiibn ind other p-ertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable chairperson and cEo AGNES vsT DEVANADERA, and the Honorable commissioners ALEXIS M. LUMBATAN ANd PAUL CHRISTIAN M. CERVAT'{TES, nt Regulatory Commission, this o6th day of March zoLg in Pasig City."tgy

JOSEFINA PATRI GPALI].ASIRIT Ouersight Com ionerLl)rLv, t","""*;\for Leqol