'G\li,;.1Ofir-~

Republic of the

San Miguel Avenue, City ~.. .

On February Leyte V Electric Cooperative Inc. (LEYECO V) and FDC Utilities Inc. (FDCUI) filed a Joint Application, for approval of their Power Supply Agreement (PSA), with prayer for issuance of provisional authority. "

Relative to their prayer for provisional authority, Applicants alleged the following:

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19. The, Certificate of Closing and Effectivity for the turnover of the output of the Unified Leyte Geothermal Power Plant is scheduled to be issued on December FDCUI commences obligation on oo:ooH of December 26, the effectivity date of the,' IPPA Administra~ ERC CASE NO. RC ORDER/ APRIL

Agreement dated October A provisional approval of the PSAwith indicative rate, from the Honorable Commission will allow FDCUI to perform its obligation to supply the requirements of LEYECOV and for LEYECOV to receive power from the power plant. The issuance of the provisional authority will allow LEYECO V to charge and collect the respective fees enumerated in the PSA as well as authorize it to pass on the full amount to its consumers.

Pursuant to ERC rules of practice and procedures, the Honorable Commission may exercise its discretion by granting provisional authority or interim relief prior to a final decision.

It is understood that the interim relief sought by the Applicants that may be granted by Commission, shall be subject to adjustments and other conditions that the Commission may impose after hearing and final determination of the Honorable Commission.

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On April pursuant to the Commission's power to provisionally approve Power Supply Agreements (PSAs) as provided under Section 4 (e), Rule 3 of the Implementing Rules and Regulations of Republic Act No. 9136, or the Electric Power Industry Reform Act of (EPIRA-IRR), the Commission issued an Order granting Applicants provisional authority to implement their PSA,the dispositive portion of which reads:

WHEREFORE, the foregoing premises considered, the Commission hereby PROVISIONALLYAPPROVES the Power Supply Agreement (PSA) between Leyte V Electric Cooperative, Inc. (LEYECOV) and FDC Utilities, Incorporated (FDCUI), subject to the following conditions:

The apPli~7 generation rate shall be as fOllOWS:~ ERC CASE NO. RC ORDER/ APRIL

COMPONENT AMOUNT,(PHP KWH) Fixed Charge (O&MFee) Ener Char e Total

The Energy Charge shall be subject to adjustments based on the formula provided in the Independent Power Producer Administrator (IPPA) Agreement;

3. The Fixed Cost shall be based only on the actual metered quantity (MQ) attributable to the contracted capacity of MW (CY and MW (CY MW from the forty MW Strips of Energy pursuant to the PSALM billing multiplied by the provisionally approved rate;

4. The final generation cost that can be recovered shall be determined by the Commission in its Decision in the instant application; and

5. In the event that the final rate is higher than that provisionally granted, the resulting additional charges shall be collected by FDCUI from LEYECOV. On the other hand, if the final rate is lower than that provisionally granted, the amount corresponding to the reduction shall be refunded by FDCUIto LEYECOV.

SO ORDERED.

Inasmuch as the Commission has initiated the evaluation of the Application taking into consideration all submissions made by the parties before it, prudence dictates that a meticulous review of every detail thereof be made in furtherance of the policies of the State enunciated in Section of the EPIRA, to wit:

Section Declaration of Policy - It hereby ERC CASE NO. RC ORDER/ APRIL

(b) To ensure the quality, reliability, security and affordability of the supply of electric power;

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To protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power;

WHEREFORE, premises considered, the provisional authority granted to Applicants LEYECO V and FDCUI as embodied in the Order dated April is hereby EXTENDED until revoked or made permanent by this Commission.

Pasig City, April

Office of the Ch.,m.,

ALFRE 0 .NON c. YAP-TARDC Commissioner C mmissioner

JOSEFINA PATRI MAGPALE-ASIRIT G ONIMO D. STA. Co Commissioner ERC CASE NO. RC ORDER/ APRIL

Quiason, Makalintal, Barot, Torres, Ibarra and Sison Counselfor Applicant LEYECO V 21st Floor, Robinsons Equitable Tower, 4 ADB Avenue corner Poveda St., Pasig City

Counselfor Applicant FDCUI 23rd Floor, PBCom Tower, 6795 corner V.A. Rufino Street, Makati City

Applicant Barangay San Pablo, Ormoc City, Leyte

Applicant 23rd Floor, PBCom Tower, 6795 Ayala Avenue corner V.A. Rufino St., Makati City

134 , Legaspi Village, Makati City

Commonwealth Avenue, Quezon City

Senate Committee on Energy GSIS Bldg., Roxas Blvd., Pasay City

House of Representatives Committee on Energy Batasan Hills, Quezon City

Ormoc City, Leyte

Tabango, Leyte

Calubian, Leyte

Villaba, Leyte

s.n r.idro, Leytc ~ ERC CASE NO. RC ORDER/ APRIL

Palompon, Leyte

Matag-ob, Leyte

Isabel, Leyte

Merida, Leyte

Kananga, Leyte

Albuera, Leyte

Province of Leyte

3rd Floor, Chamber and Industry Plaza (CIP), 1030 Campus Avenue corner Park Avenue, McKinley Town Center, Fort Bonifacio, Taguig City

Regulatory Operations Service, Energy Regulatory Commission, Floor, Pacific Center, San Miguel Avenue, Pasig Ci~