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Questions and Answers
What must a newly commissioned generating plant declare during its application for a Connection Agreement?
What must a newly commissioned generating plant declare during its application for a Connection Agreement?
Which service can an embedded generator still provide if it cannot meet Primary Reserve requirements due to insufficient headroom?
Which service can an embedded generator still provide if it cannot meet Primary Reserve requirements due to insufficient headroom?
What is the most appropriate reserve service to manage fluctuations from an intermittent Variable Renewable Energy (VRE) source?
What is the most appropriate reserve service to manage fluctuations from an intermittent Variable Renewable Energy (VRE) source?
What action should the System Operator take if a newly commissioned plant does not specify its Black Start Capability?
What action should the System Operator take if a newly commissioned plant does not specify its Black Start Capability?
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Which of the following is a regulatory requirement for ancillary services provided by generators?
Which of the following is a regulatory requirement for ancillary services provided by generators?
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What potential issue arises from prolonged manual control in a generating unit?
What potential issue arises from prolonged manual control in a generating unit?
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What should be prioritized during the deployment of reserves if a Primary Reserve provider is unavailable due to maintenance?
What should be prioritized during the deployment of reserves if a Primary Reserve provider is unavailable due to maintenance?
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Which factor is not a concern for the Distribution Utility regarding an intermittent Variable Renewable Energy source?
Which factor is not a concern for the Distribution Utility regarding an intermittent Variable Renewable Energy source?
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What is the primary benefit of a plant having Black Start Capability?
What is the primary benefit of a plant having Black Start Capability?
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What could be a consequence for a qualified interruptible load that fails to activate during a disconnection event?
What could be a consequence for a qualified interruptible load that fails to activate during a disconnection event?
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What should a power distribution utility do if it disputes the asset valuation set by TRANSCO?
What should a power distribution utility do if it disputes the asset valuation set by TRANSCO?
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Who has the authority to resolve disputes related to the valuation of sub-transmission assets?
Who has the authority to resolve disputes related to the valuation of sub-transmission assets?
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What must occur for another company to use a generation company's limited transmission facilities for competitive purposes?
What must occur for another company to use a generation company's limited transmission facilities for competitive purposes?
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If the companies involved in a transmission asset valuation dispute cannot agree, what determines the fair market price?
If the companies involved in a transmission asset valuation dispute cannot agree, what determines the fair market price?
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What is a key factor that a plant should assess regarding its infrastructure?
What is a key factor that a plant should assess regarding its infrastructure?
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What must the load operator do to ensure compliance with reserve activation protocols in the future?
What must the load operator do to ensure compliance with reserve activation protocols in the future?
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What is the primary action the System Operator should take during a system-wide frequency dip caused by a generating unit overriding its Governor Control?
What is the primary action the System Operator should take during a system-wide frequency dip caused by a generating unit overriding its Governor Control?
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What is a regulatory requirement for Black Start providers when frequently requested to provide services?
What is a regulatory requirement for Black Start providers when frequently requested to provide services?
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To comply with regulatory requirements, what Power Factor should the generating unit operate at under increased demand conditions?
To comply with regulatory requirements, what Power Factor should the generating unit operate at under increased demand conditions?
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What consequences might a generating unit face for failing to comply with Power Factor limits?
What consequences might a generating unit face for failing to comply with Power Factor limits?
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During scheduled maintenance of the Primary Reserve provider, what should be in place to ensure frequency stabilization?
During scheduled maintenance of the Primary Reserve provider, what should be in place to ensure frequency stabilization?
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Which statement accurately reflects the obligations of generating units in relation to Governor Control?
Which statement accurately reflects the obligations of generating units in relation to Governor Control?
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What should the generating unit do to manage operational concerns when frequently called for Black Start services?
What should the generating unit do to manage operational concerns when frequently called for Black Start services?
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What is the expected output of a generating unit providing Reactive Power Support operating at a Power Factor of 0.80 lagging?
What is the expected output of a generating unit providing Reactive Power Support operating at a Power Factor of 0.80 lagging?
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What must a generating plant do to avoid penalties for non-compliance with performance standards?
What must a generating plant do to avoid penalties for non-compliance with performance standards?
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What provision does EPIRA offer to electric cooperatives unable to afford full acquisition of sub-transmission assets?
What provision does EPIRA offer to electric cooperatives unable to afford full acquisition of sub-transmission assets?
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What must a qualified buyer demonstrate before purchasing a transmission asset during privatization?
What must a qualified buyer demonstrate before purchasing a transmission asset during privatization?
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What happens if a generation company constructs a transmission line deemed necessary by TRANSCO?
What happens if a generation company constructs a transmission line deemed necessary by TRANSCO?
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What requirement must a local government unit fulfill to operate as a distribution utility under EPIRA?
What requirement must a local government unit fulfill to operate as a distribution utility under EPIRA?
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In the event of non-compliance with the Grid Code, what action can the ERC take?
In the event of non-compliance with the Grid Code, what action can the ERC take?
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What is a critical condition for ancillary services provided by a generating plant?
What is a critical condition for ancillary services provided by a generating plant?
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What must occur if parties cannot agree on the fair market value of an asset being transferred to TRANSCO?
What must occur if parties cannot agree on the fair market value of an asset being transferred to TRANSCO?
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What action will the ERC take if two distribution utilities cannot agree on forming a consortium for sub-transmission asset operation?
What action will the ERC take if two distribution utilities cannot agree on forming a consortium for sub-transmission asset operation?
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What must TRANSCO submit before upgrading its high-voltage transmission facilities?
What must TRANSCO submit before upgrading its high-voltage transmission facilities?
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What must a generation company do to connect to the grid if its facilities do not comply with the TDP?
What must a generation company do to connect to the grid if its facilities do not comply with the TDP?
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What financial assistance does EPIRA provide to electric cooperatives acquiring sub-transmission assets?
What financial assistance does EPIRA provide to electric cooperatives acquiring sub-transmission assets?
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After acquiring a sub-transmission asset, what must a distribution utility ensure regarding service quality?
After acquiring a sub-transmission asset, what must a distribution utility ensure regarding service quality?
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What is one of the obligations of a concessionaire operating TRANSCO’s transmission facilities under the Grid Code?
What is one of the obligations of a concessionaire operating TRANSCO’s transmission facilities under the Grid Code?
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Which of the following is true regarding subscription rights for distribution utilities in a consortium?
Which of the following is true regarding subscription rights for distribution utilities in a consortium?
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What is the consequence if a distribution utility fails to provide quality service after acquiring a sub-transmission asset?
What is the consequence if a distribution utility fails to provide quality service after acquiring a sub-transmission asset?
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Study Notes
Sub-transmission Asset Acquisition and Dispute Resolution
- If a power distribution utility (DU) disagrees with the value of a sub-transmission asset set by TRANSCO, the dispute should be resolved through negotiation.
- If negotiation fails, the Energy Regulatory Commission (ERC) has the authority to resolve the dispute.
- The ERC is responsible for resolving issues related to valuation and disposal of sub-transmission assets.
Competitive Use of Limited Transmission Facilities
- If limited transmission facilities are required for competitive purposes, ownership of these assets must be transferred to TRANSCO at a fair market price.
- If the involved parties disagree on the valuation, the ERC will determine the fair market price.
Consortium Formation for Sub-transmission Assets
- When two distribution utilities (DUs) connected to the same sub-transmission asset cannot agree on forming a consortium for its operation and maintenance, the ERC will resolve the issue.
- The ERC will ensure the consortium is formed in accordance with EPIRA.
- The subscription rights for each DU should be proportional to their load requirements, unless otherwise agreed.
Transmission Facility Expansion Approval
- Before TRANSCO proceeds with expansion or improvement of its facilities, it must submit its plans to the ERC for approval.
- These expansions must be consistent with the Grid Code and the Transmission Development Plan (TDP), which is integrated into the Philippine Energy Plan.
Connecting Generation Plants to the Grid
- If a generation company's dedicated transmission facilities don't align with the current Transmission Development Plan (TDP), the company must seek prior authorization from the ERC.
- If the ERC deems the facilities necessary for grid connection, the company may proceed.
Electric Cooperative Acquisition of Sub-transmission Assets
- EPIRA provides concessional financing over a 20-year period for electric cooperatives acquiring sub-transmission assets from TRANSCO.
Quality of Service Following Acquisition
- When a distribution utility (DU) acquires a sub-transmission asset from TRANSCO, it must ensure the takeover does not diminish service quality for end-users.
- This is a mandatory requirement under EPIRA.
Obligations of Transmission Facility Concessionaires
- The concessionaire must comply with the Grid Code and the Transmission Development Plan (TDP) approved by the ERC.
- Failure to meet these obligations could result in penalties or sanctions imposed by the ERC.
Generating Plant Ancillary Service Penalties
- If a generating plant doesn't meet the performance standards set by the Grid Code for ancillary services, the ERC can impose penalties for non-compliance.
- Ancillary services must maintain grid reliability, and failure to do so will result in sanctions.
Special Provisions for Rural Electric Cooperatives
- Electric cooperatives operating in rural areas and facing financial difficulties in acquiring assets from TRANSCO can benefit from concessional financing provided by EPIRA over a 20-year period.
- These cooperatives can prioritize installment payments from the net income generated by the assets.
Compliance with Grid Code During Privatization
- Buyers of transmission assets during TRANSCO’s privatization process must demonstrate financial and technical capability, with proven experience in managing transmission systems of comparable capacity.
- Compliance with the Grid Code and related performance standards is required to avoid penalties.
Ownership Transfer for Competitive Lines
- If a generation company constructs a transmission line connecting its plant to the grid, and TRANSCO asserts that the line is necessary for competitive purposes, ownership must be transferred to TRANSCO at a fair market price.
- If the parties cannot agree on the price, the ERC will determine the fair market value.
Local Government Unit Obligations Under EPIRA
- Local government units operating as distribution utilities must maintain a national franchise and comply with ERC regulations, as electricity distribution is a regulated common carrier business.
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Description
Test your understanding of the processes involved in the acquisition and dispute resolution of sub-transmission assets. This quiz covers negotiation procedures, the role of the Energy Regulatory Commission, and the competitive use of transmission facilities. Prepare to explore how disputes are resolved regarding asset valuations and consortium formations.
