DOE extends submission of power utilities’ investment, expansion plans

By Myrna M. Velasco – July 27, 2020, 10:00 PM
from Manila Bulletin

The Department of Energy (DOE) has extended the deadline for the submission of Distribution Development Plan (DDP) of power utilities, or the plan that will detail out investments as well as their network expansion plans over the next 10 years.

In an advisory issued by DOE Undersecretary Emmanuel P. Juaneza, he apprised the distribution utilities (DUs) and electric cooperatives (ECs) that their extended submission date shall be until August 30 this year, instead of the earlier deadline of July 31.

But for the ECs, in particular, it was emphasized that they shall also abide by earlier submission of the 2020-2029 DDPs with the National Electrification Administration (NEA) by August 15; and then subsequently with the DOE on or before August 30.

For the privately-owned DUs, local government unit-owned-and-operated distribution systems or entities primarily those that have been authorized to operate within economic zones, the DOE specified that DDP submission shall be August 30 this year and must be channeled through the department’s Electric Power Industry Management Bureau.

The DDP requirement from DUs shall flesh out their 10-year program on the acquisition of sub-transmission assets, expansion and rehabilitation of distribution facilities as well as the costs or investments associated to these activities or facility installations.

Further, the distribution plan must factor in load growth in the service/franchise areas of these power utilities – and they must also set forecast on the expanded customers they shall be serving within the covered 10-year period; as well as the corresponding energy and demand requirements.

In the DOE advisory, Juaneza noted that the deadline extension had been in consideration of the community quarantine declarations of the government because of the coronavirus pandemic.

“This advisory shall only apply to the submission of the 2020-2029 DDP,” the department stated, albeit emphasizing that “DUs must consider and reflect the impact of the community quarantine declarations due to COVID-19 for the past three months in the preparation of the 2020 DDP.”

Apart from the DDP, the DUs and ECs had likewise been instructed to submit additional documents to underpin their network planning – and such shall include their 2020 power supply procurement plan; and a board resolution or a board secretary’s certificate approving their 2020-2029 DDP.

Another major requirement will be submission of their power supply agreements (PSAs), including attachments as may be required by the energy department.

The DUs are also mandated to submit “a normalized forecast of coincident peak demand in megawatts (MW), megawatt-hour (MWh) off-take and MWh input (in excel spreadsheet), without consideration to the community quarantine declarations due to COVID-19,” noting that such could be “a critical consideration to the forecast input in the succeeding DDPs.”

The power utilities were similarly directed to turn in documents “showing that the DU invoked that the force majeure provision in the power supply agreements due to COVID-19 community quarantine declarations.”