PHILIPPINEPHILIPPINE DISTRIBUTION DISTRIBUTION CODE CODE 2014 201EDITION6 EDITION November 2016 iv FOREWORD As the Philippine economy continues to grow, the demand for sufficient, stable, safe and reliable supply of electricity by business industries and households steadily increases. It is imperative that as the country expands its power generation capacity both in terms of renewable and non-renewable energy sources, the development, operation and maintenance of electric power distribution facilities meet the technical standards, rules and regulations to ensure a safe, reliable and efficient Distribution System in the country. The Philippine Distribution Code (PDC) 2016 Edition is the result of several years of technical review, analysis, and coordination work among the members and technical staff of the Distribution Management Committee, Inc. (DMC), in close collaboration with the stakeholders of the power distribution sector and guidance of the Energy Regulatory Commission (ERC). In the exercise of its mandate “to initiate and coordinate revisions of the Philippine Distribution Code and make recommendations to the Energy Regulatory Commission” (Section 2.2.1 (e), PDC 2001), the Distribution Management Committee, Inc. (DMC) initiated the review of the PDC in 2010 and invited Users of the Distribution System to propose amendments to the PDC. A thorough evaluation by the DMC and expository hearings and public consultations with stakeholders were then conducted in Luzon, Visayas and Mindanao. Moreover, with a vision of establishing an up-to-date set of national technical standards and guidelines that will serve as national code for Users of the Distribution System, the PDC 2016 Edition has taken into account the adoption in the Philippines of new and emerging technologies including Variable Renewable Energy (VRE), as well as best practices and experiences of foreign jurisdictions in the use of these technologies. This latest edition has been harmonized with related provisions of the Philippine Grid Code 2016 Edition, the Market Rules of the Wholesale Electricity Spot Market, and subsequent rules and guidelines issued by the ERC applicable to Distribution Systems. Likewise, the PDC 2016 Edition (or the Philippine Grid Code as amended), shall apply suppletorily to all matters not provided in the Philippine Small Grid Guidelines (PSGG) which was earlier approved by the ERC, or whenever necessary in interpreting the provisions of the PSGG. On _____________ ERC Resolution No. _____ was issued by the ERC approving and adopting the Philippine Distribution Code 2016 Edition, with the following salient features: (a) Connection and operational requirements for Embedded Generating plants, conventional or variable renewable energy source, are established; (b) The embedded generating plants are classified as large conventional, large VRE, medium, intermediate, small and micro Embedded Generating Plants according to their characteristics and installed capacity; (c) Established distinction between the Large Embedded Generating Plants in the PDC and Large Generating Plants in the PGC; (d) Procedures for new connection and modifications of existing connection are specified to guide prospective project proponents in connecting to the distribution system; i Foreword Philippine Distribution Code 2016 Edition (e) Restructuring of Chapter 7: Revenue Metering Requirements; (f) Restructuring of the Distribution Management Subcommittees; (g) Representation from the largest Distribution Utility and the Market Operator was added to the Distribution Management Committee; (h) Addition of Derogatory Provisions in Chapter 1: Philippine Distribution Code General Conditions; (i) Inclusion of “Customer Average Interruption Duration Index” or CAIDI in the Distribution Reliability Indices imposed upon all Distribution Utilities; (j) Deletion of the section on “Distribution Code Dispute Resolution”, and inclusion of a new section entitled “Application and Interpretation of Distribution Code Provisions”; (k) Deletion of the provision setting separate caps for Technical and Non- Technical Losses and giving the discretion to the ERC to decide and implement limits on losses; (l) Application of the PDC to “entities duly authorized to operate a distribution system within Economic Zones”; (m) Chapter 4: Financial and Capability Standards for Distribution and Supply is transferred as an Appendix to the PDC; (n) References to “Grid Owner” has been replaced with “Transmission Network Provider”; (o) Inclusion and definition of new terms; and (p) Inclusion of Section 33 of the Republic Act No. 7920 known as the “New Electrical Engineering Law” and any amendments thereto as an additional compliance in the PDC 2016 Edition. Henceforth, all Distribution Utilities, Embedded Generation Companies, Metering Service Providers and other Users of the Distribution System must secure a copy of the PDC 2016 Edition and are directed to use the PDC 2016 Edition as primary reference and national code in developing, operating and maintaining new and existing Distribution Systems. All Users of the Distribution System must comply with the technical specifications, performance standards and other requirements of the PDC 2016 Edition and shall submit to the ERC through the DMC within the periods provided in Chapter 8, a Compliance Report to the PDC 2016 Edition, following the requirements set forth in the PDC, and procedures under the DMC Rules to Govern the Monitoring of Compliance of Distribution Utilities to the PDC. Any claim or request for exemption from compliance with the requirements and standards of the PDC 2016 Edition must be applied with and approved by the ERC through the DMC at the soonest possible time for appropriate action. ii Republic of the Philippines Energy Regulatory Commission Pasig City, Metro Manila Resolution No. ___, Series of 2017 ADOPTION OF THE PHILIPPINE DISTRIBUTION CODE 2016 EDITION WHEREAS, Section 2(b) of the Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001, provides the policy objective of the government to ensure the quality, reliability, security and affordability of electric power supply; WHEREAS, Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008, aims to promote the development, utilization and commercialization of renewable energy resources. It particularly provides for the establishment of the framework for the development and advancement of renewable energy resources and the development of a strategic program to increase utilization of said resources; WHEREAS, the provision of Section 2.2.1(f) of the Philippine Distribution Code (PDC), the Distribution Management Committee (DMC) is mandated to initiate and coordinate revisions of the PDC and recommend them to the Energy Regulatory Commission (ERC); WHEREAS, ERC Resolution No. 07, Series of 2013 approved and adopted the Addendum to Amendment No. 1 of the Philippine Grid Code (PGC) Establishing the Connection and Operational Requirements for Variable Renewable Energy (VRE) Generating Facilities to provide connection and operational requirements for identified renewable energy resources; WHEREAS, the DMC proposed revisions of the PDC incorporating the connection and operational requirements for embedded generators; WHEREAS, on 18 and 24 April 2012, the DMC conducted a series of expository presentation in Visayas and Luzon, respectively, and on 29 May 2012, it conducted a public consultation in Luzon, all intended for the stakeholders to present their comments/inputs on the proposed revisions which were considered in preparation for the issuance of the “Philippine Distribution Code 2016 Edition”; WHEREAS, another expository hearings and public consultations were held on 02 and 04 February 2016 in Luzon and Visayas, respectively, to enable the stakeholders to give their inputs on the proposed connection and operational requirements for embedded generators; iii Adoption of the Philippine Distribution Code 2016 Edition Philippine Distribution Code 2016 Edition WHEREAS, on 17 February 2017, the DMC submitted the final draft of the proposed “Philippine Distribution Code 2016 Edition” to the ERC for its approval; NOW THEREFORE, the ERC hereby RESOLVES to APPROVE and ADOPT, the “Philippine Distribution Code 2016 Edition”; attached hereto and made integral part hereof as Annex “A”. This Resolution shall take effect fifteen (15) days upon its publication in a newspaper of general circulation. Let copies of this Resolution be furnished the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR) and all Distribution Utilities (DUs). SO ORDERED. Pasig City, ______________ 2017. JOSE VICENTE B. SALAZAR Chairperson ALFREDO J. NON GLORIA VICTORIA C. YAP-TARUC Commissioner Commissioner JOSEFINA PATRICIA M. ASIRIT GERONIMO D. STA. ANA Commissioner Commissioner iv PHILIPPINE DISTRIBUTION CODE 2016 EDITION TABLE OF CONTENTS Chapter Description Page Foreword ................................................................................................................. i Adoption of the Philippine Distribution Code 2016 Edition ............................ iii 1 Philippine Distribution Code General Conditions ..............................................1 1.1 Purpose ...............................................................................................................1 1.2 Authority and Applicability ...............................................................................1 1.2.1 Authority ...................................................................................................1