ERC Case 2018-029.Pdf
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RePublic of the PhiliPPines ENERGYREGULAToRYcovTUTSSIoN--- Sutt Miguel Avenue, Pasig CitY AUTHORITY, ERC CASE NO. zorS-oz9 RC CEBU 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 DaanBantayan, 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<l by an employee of the Applicant and the first page of the Application bearing the receiving stamp of the aforementioned Offices as Annexes 3'J" and "K') respectively. Likerarise attached hereto as Annexes "L" and "M" are the Affidavit of Publication and the newspaper issue containing the published Application; 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.