Business Mirror
TUESDAY, 03 APRIL 2012 20:38 PAUL ANTHONY A. ISLA / REPORTER
THE Energy Regulatory Commission (ERC) said on Tuesday that it has recently approved a resolution amending Section 2.6 and 2.7 of the Distribution Services and Open Access Rules (DSOAR).
The ERC said the two sections pertain to the modifications and new physical connections for residential customers modifications and new physical connections for nonresidential customers.
The ERC added that the amendments are intended to, among others, clarify gray areas and harmonize DSOAR with related rules and regulations, including the Magna Carta for Residential Electricity Consumers.
The amendments, among others, clarified that cost of installation or extension of lines and facilities that are included in the distribution utility’s capital expenditures program as approved by the ERC must be shouldered by the utilities, which is regardless of the location of the electricity consumer requesting line facilities in the DU’s franchise area.
It also made it clear that when other electricity end-users connect to lines and facilities paid for by nonresidential customer as contribution in aid of construction (CIAC), the lines and facilities will form part of the distribution utility’s regulatory asset base (RAB).
ERC said the distribution utility must refund the CIAC to the concerned nonresidential customer.
The amendment noted the exemption from advancing the costs of lines and facilities even if the project is not viable is accorded to socialized housing projects under the Urban Land and Housing Development Act, including relocation or resettlement projects of concerned agencies of the local and national government.
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