Show cause orders issued to NGCP, units of SMCGP

BY LENIE LECTURA – NOVEMBER 4, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) issued show cause orders to the National Grid Corporation of the Philippines (NGCP) and the units under SMC Global Power Holdings Corp. (SMCGP) for allegedly violating the Philippine Grid Code during the September 12 unplanned power outage in Luzon.

In separate orders, the NGCP was told to submit within 15 days its explanation and to show cause why no administrative penalty should be imposed upon it for possible violation of the PGC.

It can be recalled that the NGCP declared a red and yellow alert status for the Luzon grid. The major generation deficiency that occurred in the grid resulted from having seven generating units with total capacity of 3,241MW on unplanned outage and three generating units were operating on derated state with total derated capacity of 226MW.

The agency’s task force, based on its investigation, determined that the Nagsaag 50kV line 1 tripped due to “a line-to-neutral fault caused by the breach of line clearance between towers 138 and 139,” and that “a bamboo shoot” between the towers was identified as the cause of the breaching. The incident then cascaded the tripping of four power transformers in Bolo substation and the Bolo-Nagsaag 500kV line 2.

The tripping of both transmission lines then resulted in the overloading of the Bolo-Balingueo 230kV line which trigged the implementation of Northwestern II System Integrity Protection Scheme (SIPS) to prevent the grid from further degradation.

The ERC said “the bamboo shoot issue should have been prevented had NGCP complied with its obligation” under Section 8 of Republic Act 11361, otherwise known as the “Anti-Obstruction of Power Lines Act.,” which states that the owner or operator of the power lines will have the primary responsibility to remove power line obstruction to ensure the continuous and uninterrupted conveyance of electricity.

Meanwhile, Team Sual Corp.’s unit 2 tripped due to the activation of SIPS. However, the ERC observed that TSC’s unit 1, which is not part of the SIPS, also tripped.

According to the ERC, TSC’s unit 1 recorded system frequency was below the frequency withstand capacity for conventional generating plants as per PGC. “TSC Unit 1, therefore, should have remained online,” the ERC said.

As such, “the Commission is of the view that TSC Unit 1 is in violation of GCR 4.4.2.2.1 of the PGC when it failed to remain on-line.”

TSC was also ordered to submit its explanation in 15 days.

The ERC also found that Masinloc Power Partners Ltd. Co.’s  (MPPCL) Unit 2 should have remained online. It said that at the time of the incident, Unit 2’s system voltage was still within the allowable voltage variation.

“Considering the absence of any of the exempting circumstances, the Commission is of the view that MPPCL Unit 2 violated PST 3.2.3.4 and GO 6.3.3.5 of the PGC as it failed to remain online,” the ERC ruled.

MPPCL was also told to submit its explanation within 15 days upon receipt of the order.

The NGCP and the power units had not issued their comment on the show cause orders as of press time.

Meanwhile, the NGCP clarified that the extension on the submission of an explanation in relation to the show cause order it received last September 30 pertains to the grid operator’s alleged violation of the Philippine Grid Code, AS Procurement Plan, and EPIRA in relation to NGCP’s contracting of ancillary services and implementation of automatic load dropping during identified days in 2021 and 2022.