PSALM seeks ERC approval on agreements with Visayas utilities

Manila Bulletin 
By Myrna M. Velasco 
Published: June 18, 2013 
The Power Sector Assets and Liabilities Management Corporation (PSALM) is seeking the Energy Regulatory Commission’s (ERC) approval on the letters of agreement (LOA) that will set legal justification on its continuous supply of power to private distribution utilities and electric cooperatives in the Visayas grid.
The LOAs serve as extension of the transition supply contracts (TSCs) of PSALM with these power utilities; of which duration already lapsed December last year.
The company sought that, on the strength of the LOAs, it was able to stretch the duration of its supply of power to these utilities from December 26, 2012 to June 25, 2013.
The agreements have been with 20 electric cooperatives in Antique, Biliran, Cebu I and II; Central Negros; Don Orestes Romualdez; Eastern Samar; Iloilo II and III;  Leyte II, III, IV and V; Negros Occidental; Negros Oriental I; Northern Samar; Samar I and II; Visayan Electric Company and VMC Rural Electric Coop.
“It is prayed that a provisional authority be issued authorizing PSALM to implement the subject LOAs with the concerned DUs in the Visayas grid,” the company has stated in its petition to the ERC.
It has been explained that the LOAs were executed between the parties “in cases of changes in the provisions of the CSEE (contract for the supply of electric energy) other than the terms and conditions appearing in the template for the TSC.”
These changes, it was further noted, could include duration of the CSEE or TSC and the monthly contracted energy.
PSALM, in its filing though, has emphasized that the terms and conditions of the previous CSEE/TSC “remain applicable, and have not been changed by these subsequent LOAs.”
Nevertheless, the company indicated that some applicable provisions of the contracts may be “deemed modified by the applicable WESM Rules.”
For the contract energy, it has been stipulated in the LOAs that “the customer shall nominate month-ahead its hourly and daily energy quantity requirements three days before the start of the next billing period.”
It was further prescribed that “on a day-to-day transaction, the customer shall confirm the schedule of hourly energy requirements to PSALM on the day ahead.”
Similarly, “PSALM shall declare to WESM the schedule of hourly energy requirements delivered to customers immediately on the day after.”   source