Annex 1
PIPPA Comments on the Proposed Amendments to the Administered Price Determination Manual
Title
Section
Provision
Proposed Amendment
Rationale
PIPPA Comments
General Comment:
The proposed amendment to Section 4.2.1 should be consolidated with the proposed amendments in the APDM submitted by 1590 Energy Corporation as both
proposals would address the indeterminate values of Administered Price. PIPPA would further like to propose that aside from the Generator Administered Prices, the
formula on Customer Settlement Amounts should also be updated so that no unnecessary charges will be attributed to the settlement amounts.
The proposed formulation will be equitable and fair to all customers. The concept is causers pay regardless of the location of the load because the generated price is
system-based
Title
Generator
Administere
d Prices –
Average ExPost Nodal
Energy Price
Section
4.2.1
Provision
4.2.1.1 For each generator
node, the administered price
will be computed as the load
weighted average of the expost nodal energy prices and
meter quantity of the four
most recent same-day xxx
4.2.1.2 In case of any of the
prices covered by the four
preceding same days have been
administered xxx
4.2.1.3 In cases where any of
the prices in the four
preceding same days reflect
Proposed Amendment
Additional:
4.2.1.4. If no administered price
can be determined for a generator
trading
node
because
the
generating plant associated with
that trading node had no actual
generation, i.e., no metered
quantity or MQ, the administered
price shall be determined as
follows:
4.2.1.4.1. The Ex-Post Price of the
immediately preceding same day,
same hour, non-administered price,
with actual generation, but not
earlier than one (1) year prior to
the trading day and hour being
considered shall be used in
Rationale
When the concerned
generating plant has
not
produced
electricity for the last
previous four weeks,
the computation for
the
administered
price values results to
indeterminate values.
This issue has been
raised by the PA in
their
findings,
PA.MS.3 and occurred
in the case of San
Roque Hydro Electric
Power Plant during
the Market Suspension
due
to
Typhoon
Glenda.
PIPPA Comments
Where:
EPP = Ex-Post Price
AP = Administered Price (based on
PIPPA Proposal)
i = Generator resources (Suppliers)
MQ = Meter Quantity
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Annex 1
Title
Section
Provision
xxx
Proposed Amendment
Rationale
PIPPA Comments
calculating the administered price.
4.2.1.4.2 In case Section 4.2.1.4.1
failed to determine a valid value for
administered price, it shall then be
computed by obtaining the simple
average of the ex-post nodal prices
of four preceding, same-day, samehour trading intervals that have not
been administered. This is set out in
the following formula:
SA = Settlement Amount
n = number of generator resources with
positive meter quantity
m = number of load resources with
negative meter quantity
j = Load resources (Customers)
Rationale:
Where:
EPP = Ex-Post Price
AP = Administered Price
D = number of historical trading
days to be considered
i = Generator resources
MQ = Meter Quantity
To ensure that no line rentals are
imputed to the customer BCQ when
prices are administered. The proposed
formula will correct double charging of
line rental in the present computation
and remove cross subsidy simply by
netting out BCQ quantities from WESM
Purchases. In effect, only WESM
purchases will be charged line rentals
and payments for BCQ quantities will
be based on the respective contract
prices of the load and Gencos.
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