Republic of the ENERGY REGULATORYCOMMISSION San Miguel Avenue, Pasig City

IN THE MATTER OF THE APPLICATION FOR APPROVAL OF OVER/ UNDER RECOVERIES BASED ON THE FORMULA ON THE VARIOUS AUTOMATIC COST ADJUSTMENTS AND TRUE- UP MECHANISMS AND CORRESPONDING CONFIRMATION PROCESS PURSUANT TO ERC RESOLUTION NO. 16, SERIES OF 2009, AS AMENDED BY ERC RESOLUTION NO. 20, SERIES OF 2010 FOR THE PERIOD JANUARY 2014 TO DECEMBER 2016,

ERC CASENO. 2017-034 CF

CAMARINES SUR II ELECTRIC COOPERATIVE, INC. (CASURECO 11), Applicant. )(------J(

NOTICE OF PUBLIC HEARING

TO ALL INTERESTED PARTIES:

Notice is hereby given that on 30 March 2017, an Application dated 17 March 2017 was filed by applicant II Electric Cooperative, Inc. (CASURECO II) seeking the Commission's approval of (over)/under-recoveries based on the formula on the various automatic cost adjustments and true-up mechanisms and corresponding confirmation process, pursuant to ERC Resolution No. 16, Series of 2009, as amended by ERC Resolution No. 20, Series of 2010 for the period January 2014 to December 2016.

CASURECO II alleged the following in its Application: ERC CASE NO. 2017-034 CF NOTICE OF PUBLIC HEARING/ 29 AUGUST 2017 PAGE20FS

1. Applicant is an electric cooperative duly organized and existing under and by virtue of the laws of the Philippines, with principal office at Del Rosario, Naga City represented in this application by its Project Supervisor / Acting General Manager, Orlando M. Andres, per Board Resolution attached hereto as Annex "A";

2. It is the exclusive franchise holder issued by the National Electrification Administration (NEA), to operate an electric and power distribution service in the City of Naga and the Municipalities of Pili, , , , , Bombon, , and , all in the province of Camarines Sur.

3. Under ERe Resolution No. 16, Series of 2009 as amended by ERC Resolution No. 21, Series of 2010, Distribution Utilities (DUs) and Electric Cooperatives (ECs) are required to file their respective consolidated applications for the approval of their over and under recoveries on the implementation of various automatic cost adjustments and true-up mechanism, such as: Automatic Generation Rate (GR) and Systems Loss Adjustment Mechanism, Transmission Rate (TR) Adjustment Mechanism, Lifeline Rate Recovery Mechanism, Calculation of Over/Under Recovery in the Implementation of Systems Loss Rate (SLR) by DUs and Calculation of the Over/Under Recovery in the Implementation of Senior Citizen Subsidy J Discount;

4, Applicant adopted and applied the various formulas provided under Resolution 16, Series of 2009 as amended by Resolution 21, Series of 2010, in determining the overJunder recoveries on the implementation of the foregoing automatic cost adjustments and true-up mechanisms.

5. A summary of the pass true cost vis-a.-vis the actual sales on the above-mentioned implementation of various automatic cost adjustments and true-up mechanisms from January 2014 until December 2016 are presented hereunder, as follows:

GRAND TOTAL RECOVERABLE ACTUAL PARTICULAR (OVER)/UNDER COST (Php) REVENUE(Phn) Generation Char.e;e 3,679,307,182.32 3,629,175,879.68 50,131,302.65 Transmission Charge 822,841,450.60 877,702,872 ..15 (54,861,421.75) Systems Loss Charge 681,707,891.58 703d7..9...1-58.70 (21,471,707.12) Lifeline Subsidy/Discount Charge 4~,661,4_':l3.88 43,973,492.96 (312,.Q59~ Senior Citi7.en Subsidy/Discount Charge 423,405.15 305,185.84 118,219.31 TOTAL 5,227,941,363.53 5,254,337,029.52 (26,395,666.00)

The respective computations for the foregoing are attached and made integral parts hereof as Annexes "B" to "F", respectively;

6. Below are the proposed schemes of refund and collect for the following charges. ERC CASE NO. 2017-034 CF NOTICE OF PUBLIC HEARING/ 29 AUGUST 2017 PAGE30FS

Rate Proposed Term Billing Particular (Over)/Under Per Determinant of Monlh Refund/Collect (MFSR2016)

Generation Charge 50,131,302.65 5 years 288,231,677.52 0.0029

Transmission Charge (54,861,421.75) 5 years 288,231,677.52 (0.0032)

Systems Loss Charge (21,471,707.12) 5 years 288,231,677.52 (0,0012)

Lifeline Subsidy/Discount Charge (312,059.08) 1month 24,019,306-46 (0.0130)

Senior Citizen Subsidy/Discount 118,219.31 1month 24,019,306-46 0.0°49 Charge

TOTAL (26,395,666.00)

7. In support of this application, Casurcco II is submitting herewith the following data and documents covering the period January 2014 to December 2016 (36 months) marked as follows:

Annex Particular G upplier and Transmission Data G-l WESM Power Bills G-l A WESM Official Receipt G-I-B WESM Adjustments G-2 AES Power Bills G-2-A AES Official Receipt G-2-B Debit / Credit Memo G-3 BGl Power Bills G-3-A BGI Official Receipt G-4 SMEC Power Bills G-4-A SMEC Official Receipt G-S BHPC Power Bills G-S-A BUPC Official Receipt G-6 NGCP Power Bills G 6-A NGCP Official Receipt H tatistical Data H-J Monthly Financial & Statistical Report (MFSR) section B H-2 Monthly Financial & Statistical Report (MFSR) section C I mplemented Rates I 1 Lifeline Discount I-I-A Non-Lifeliner's Sample Bills I-I-B Lifeliner's Sample Bills 12 Senior Citi;r,ensDiscount Sheet I-2-A Senior Citizen's Sample Bills J Generation Rate K System's Loss Rate L ransmission Rate M Lifeline Rate subsidy & Discount N Senior Citizen's subsidy & discount ERC CASE NO. 2017-034 CF NOTICE OF PUBLIC HEARING/ 29 AUGUST 2017 PAGE40F5

8. In compliance with the ERe Rules of Practice and Procedure, Applicant is likewise submitting the following documents to wit:

Annex Particular Certification of the Sangguniang Panlalawigan of Camarines 0 Sur and Sangguniang Panlungsod ng Naga on the receipt and Dostilll!: of the aoolication Publication of the Application in a newspaper of general p circulation within the franchise area of CASURECO II or where it nrincinallv onerates

PRAYER

WHEREFORE, premises considered, it IS respectfully prayed of the Honorable Commission that:

Applicant CASURECO II be allowed to refnnd or collect the over/under recoveries that may be finally determined by the Honorable Commission for the period January 2014 to December 2016.

All other reliefs, just and equitable are likewise prayed for.

The Commission has set the Application for determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference, and presentation of evidence on 8 November 2017 at two o'clock in the afternoon (2:00 P.M.), at the ERC Hearing Room, 15th Floor, Pacific Center Building, San Miguel Avenue, Pasig City.

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 Intervene at least five (5) days prior to the initial hearing and subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure, indicating therein the docket number and title ofthe case and stating the following:

1) The petitioner's name and address;

2) The nature of petitioner's interest in the subject matter of the proceeding and the way and manner in which such interest is affected 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 subject matter of the case may file ERC CASE NO. 2017-034 CF NOTICE OF PUBLIC HEARING/ 29 AUGUST 2017 PAGESOFS their Opposition or Comment thereon at any stage of the proceeding before Applicant rests its case, subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure. No particular form of Opposition or Comment is required, but the document, letter, or writing should contain the following:

1) The name and address of such person;

2) 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 request from Applicant that it be furnished with the same, prior to the date of the initial hearing. Applicant is hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours.

WITNESS, the Honorable Officer-In-Charge Chairman and C;:EOALFREDO J. NON, and the Honorable Commissioners GLORIA VICTORIA C. YAP-TARUC and GERONIMO D. STA. ANA, Energy Regulatory Commission, this 29th day of August 2017 in Pasig City.

FORAND BYAUTHORITY OF THE COMMISSION:

JOSEFINA PATRIC AGPALE-ASIRIT Oversight Co ioner for Legal

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