Philippine Distribution Code 2016 Edition PDF

PHILIPPINE DISTRIBUTION PHILIPPINE DISTRIBUTIONCODE 2014 CODE EDITION 2016 EDITION November 2016 iv  FOREWORD As the Philippine economy continues to grow, the demand for sufficient, stable, safe...

PHILIPPINE DISTRIBUTION PHILIPPINE DISTRIBUTIONCODE 2014 CODE EDITION 2016 EDITION November 2016 iv  FOREWORD As the Philippine economy continues to grow, the demand for sufficient, stable, safe and reliable supply of electricity by business industries and households steadily increases. It is imperative that as the country expands its power generation capacity both in terms of renewable and non-renewable energy sources, the development, operation and maintenance of electric power distribution facilities meet the technical standards, rules and regulations to ensure a safe, reliable and efficient Distribution System in the country. The Philippine Distribution Code (PDC) 2016 Edition is the result of several years of technical review, analysis, and coordination work among the members and technical staff of the Distribution Management Committee, Inc. (DMC), in close collaboration with the stakeholders of the power distribution sector and guidance of the Energy Regulatory Commission (ERC). In the exercise of its mandate “to initiate and coordinate revisions of the Philippine Distribution Code and make recommendations to the Energy Regulatory Commission” (Section 2.2.1 (e), PDC 2001), the Distribution Management Committee, Inc. (DMC) initiated the review of the PDC in 2010 and invited Users of the Distribution System to propose amendments to the PDC. A thorough evaluation by the DMC and expository hearings and public consultations with stakeholders were then conducted in Luzon, Visayas and Mindanao. Moreover, with a vision of establishing an up-to-date set of national technical standards and guidelines that will serve as national code for Users of the Distribution System, the PDC 2016 Edition has taken into account the adoption in the Philippines of new and emerging technologies including Variable Renewable Energy (VRE), as well as best practices and experiences of foreign jurisdictions in the use of these technologies. This latest edition has been harmonized with related provisions of the Philippine Grid Code 2016 Edition, the Market Rules of the Wholesale Electricity Spot Market, and subsequent rules and guidelines issued by the ERC applicable to Distribution Systems. Likewise, the PDC 2016 Edition (or the Philippine Grid Code as amended), shall apply suppletorily to all matters not provided in the Philippine Small Grid Guidelines (PSGG) which was earlier approved by the ERC, or whenever necessary in interpreting the provisions of the PSGG. On _____________ ERC Resolution No. _____ was issued by the ERC approving and adopting the Philippine Distribution Code 2016 Edition, with the following salient features: (a) Connection and operational requirements for Embedded Generating plants, conventional or variable renewable energy source, are established; (b) The embedded generating plants are classified as large conventional, large VRE, medium, intermediate, small and micro Embedded Generating Plants according to their characteristics and installed capacity; (c) Established distinction between the Large Embedded Generating Plants in the PDC and Large Generating Plants in the PGC; (d) Procedures for new connection and modifications of existing connection are specified to guide prospective project proponents in connecting to the distribution system; i Foreword Philippine Distribution Code 2016 Edition (e) Restructuring of Chapter 7: Revenue Metering Requirements; (f) Restructuring of the Distribution Management Subcommittees; (g) Representation from the largest Distribution Utility and the Market Operator was added to the Distribution Management Committee; (h) Addition of Derogatory Provisions in Chapter 1: Philippine Distribution Code General Conditions; (i) Inclusion of “Customer Average Interruption Duration Index” or CAIDI in the Distribution Reliability Indices imposed upon all Distribution Utilities; (j) Deletion of the section on “Distribution Code Dispute Resolution”, and inclusion of a new section entitled “Application and Interpretation of Distribution Code Provisions”; (k) Deletion of the provision setting separate caps for Technical and Non- Technical Losses and giving the discretion to the ERC to decide and implement limits on losses; (l) Application of the PDC to “entities duly authorized to operate a distribution system within Economic Zones”; (m) Chapter 4: Financial and Capability Standards for Distribution and Supply is transferred as an Appendix to the PDC; (n) References to “Grid Owner” has been replaced with “Transmission Network Provider”; (o) Inclusion and definition of new terms; and (p) Inclusion of Section 33 of the Republic Act No. 7920 known as the “New Electrical Engineering Law” and any amendments thereto as an additional compliance in the PDC 2016 Edition. Henceforth, all Distribution Utilities, Embedded Generation Companies, Metering Service Providers and other Users of the Distribution System must secure a copy of the PDC 2016 Edition and are directed to use the PDC 2016 Edition as primary reference and national code in developing, operating and maintaining new and existing Distribution Systems. All Users of the Distribution System must comply with the technical specifications, performance standards and other requirements of the PDC 2016 Edition and shall submit to the ERC through the DMC within the periods provided in Chapter 8, a Compliance Report to the PDC 2016 Edition, following the requirements set forth in the PDC, and procedures under the DMC Rules to Govern the Monitoring of Compliance of Distribution Utilities to the PDC. Any claim or request for exemption from compliance with the requirements and standards of the PDC 2016 Edition must be applied with and approved by the ERC through the DMC at the soonest possible time for appropriate action. ii  Republic of the Philippines Energy Regulatory Commission Pasig City, Metro Manila Resolution No. ___, Series of 2017 ADOPTION OF THE PHILIPPINE DISTRIBUTION CODE 2016 EDITION WHEREAS, Section 2(b) of the Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001, provides the policy objective of the government to ensure the quality, reliability, security and affordability of electric power supply; WHEREAS, Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008, aims to promote the development, utilization and commercialization of renewable energy resources. It particularly provides for the establishment of the framework for the development and advancement of renewable energy resources and the development of a strategic program to increase utilization of said resources; WHEREAS, the provision of Section 2.2.1(f) of the Philippine Distribution Code (PDC), the Distribution Management Committee (DMC) is mandated to initiate and coordinate revisions of the PDC and recommend them to the Energy Regulatory Commission (ERC); WHEREAS, ERC Resolution No. 07, Series of 2013 approved and adopted the Addendum to Amendment No. 1 of the Philippine Grid Code (PGC) Establishing the Connection and Operational Requirements for Variable Renewable Energy (VRE) Generating Facilities to provide connection and operational requirements for identified renewable energy resources; WHEREAS, the DMC proposed revisions of the PDC incorporating the connection and operational requirements for embedded generators; WHEREAS, on 18 and 24 April 2012, the DMC conducted a series of expository presentation in Visayas and Luzon, respectively, and on 29 May 2012, it conducted a public consultation in Luzon, all intended for the stakeholders to present their comments/inputs on the proposed revisions which were considered in preparation for the issuance of the “Philippine Distribution Code 2016 Edition”; WHEREAS, another expository hearings and public consultations were held on 02 and 04 February 2016 in Luzon and Visayas, respectively, to enable the stakeholders to give their inputs on the proposed connection and operational requirements for embedded generators; iii Adoption of the Philippine Distribution Code 2016 Edition Philippine Distribution Code 2016 Edition WHEREAS, on 17 February 2017, the DMC submitted the final draft of the proposed “Philippine Distribution Code 2016 Edition” to the ERC for its approval; NOW THEREFORE, the ERC hereby RESOLVES to APPROVE and ADOPT, the “Philippine Distribution Code 2016 Edition”; attached hereto and made integral part hereof as Annex “A”. This Resolution shall take effect fifteen (15) days upon its publication in a newspaper of general circulation. Let copies of this Resolution be furnished the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR) and all Distribution Utilities (DUs). SO ORDERED. Pasig City, ______________ 2017. JOSE VICENTE B. SALAZAR Chairperson ALFREDO J. NON GLORIA VICTORIA C. YAP-TARUC Commissioner Commissioner JOSEFINA PATRICIA M. ASIRIT GERONIMO D. STA. ANA Commissioner Commissioner iv  PHILIPPINE DISTRIBUTION CODE 2016 EDITION TABLE OF CONTENTS Chapter Description Page Foreword................................................................................................................. i Adoption of the Philippine Distribution Code 2016 Edition............................ iii 1 Philippine Distribution Code General Conditions..............................................1 1.1 Purpose...............................................................................................................1 1.2 Authority and Applicability...............................................................................1 1.2.1 Authority...................................................................................................1 1.2.2 Applicability.............................................................................................1 1.3 Enforcement and Suspension of Provisions.......................................................1 1.3.1 Enforcement..............................................................................................1 1.3.2 Suspension of Provisions..........................................................................2 1.4 Derogations........................................................................................................2 1.4.1 Applicability.............................................................................................2 1.4.2 Request for Derogation.............................................................................2 1.5 Data, Notices, and Confidentiality.....................................................................3 1.5.1 Data and Notices.......................................................................................3 1.5.2 Confidentiality..........................................................................................3 1.6 Construction of References................................................................................3 1.6.1 References.................................................................................................3 1.6.2 Cross-Reference........................................................................................3 1.6.3 Definitions.................................................................................................3 1.6.4 Foreword, Table of Contents, and Titles..................................................4 1.6.5 Mandatory Provisions...............................................................................4 1.6.6 Singularity and Plurality...........................................................................4 1.6.7 Gender.......................................................................................................4 1.6.8 “Include” and “Including”........................................................................4 1.6.9 “Written” and “In Writing”.......................................................................4 1.6.10 Repealing Clause....................................................................................4 1.7 Definitions..........................................................................................................4 1.8 Abbreviations...................................................................................................19 2 Distribution Management...................................................................................22 2.1 Purpose.............................................................................................................22 2.2 Distribution Management Committee..............................................................22 2.2.1 Functions of the Distribution Management Committee..........................22 2.2.2 Membership of the DMC........................................................................22 2.2.3 Terms of Office of the DMC Members..................................................23 2.2.4 DMC Support Staff and Operating Cost.................................................23 2.2.5 DMC Rules and Procedures....................................................................24 2.3 Distribution Management Subcommittees.......................................................24 2.3.1 Distribution Planning Subcommittee......................................................24 v Table of Contents Philippine Distribution Code 2016 Edition 2.3.2 Distribution Operations Subcommittee...................................................25 2.3.3 Distribution Reliability and Protection Subcommittee...........................25 2.3.4 Compliance Subcommittee.....................................................................26 2.3.5 Rules Review Subcommittee..................................................................26 2.3.6 Other Distribution Subcommittees.........................................................26 2.4 Application and Interpretation of the Philippine Distribution Code Provisions..........................................................................................................................26 2.5 Philippine Distribution Code Enforcement and Revision Process..................27 2.5.1 Enforcement Process...............................................................................27 2.5.2 Fines and Penalties..................................................................................28 2.5.3 Unforeseen Circumstances......................................................................28 2.5.4 Philippine Distribution Code Amendment and Revision Process..........28 2.6 Distribution Management Reports...................................................................29 2.6.1 Quarterly and Annual Reports................................................................29 2.6.2 Significant Incident Reports...................................................................29 2.6.3 Special Reports.......................................................................................29 3 Performance Standards for Distribution and Supply......................................30 3.1 Purpose.............................................................................................................30 3.2 Power Quality Standards for Distribution Utilities..........................................30 3.2.1 Power Quality Problems.........................................................................30 3.2.2 Frequency Variations..............................................................................30 3.2.3 Voltage Variations..................................................................................30 3.2.4 Harmonics...............................................................................................31 3.2.5 Voltage Unbalance..................................................................................31 3.2.6 Flicker Severity.......................................................................................32 3.2.7 Transient Voltage Variations..................................................................32 3.3 Reliability Standards for Distribution Utilities................................................32 3.3.1 Criteria for Establishing Distribution Reliability Standards...................32 3.3.2 Distribution Reliability Indices...............................................................32 3.3.3 Inclusions and Exclusions of Interruption Events..................................33 3.3.4 Submission of Distribution Reliability Reports and Performance Targets....................................................................................................................33 3.4 System Efficiency Standards for Distribution Utilities...................................34 3.4.1 System Loss Classifications....................................................................34 3.4.2 System Loss Cap.....................................................................................34 3.4.3 Distribution Utility Use..........................................................................34 3.4.4 Power Factor at the Connection Point....................................................34 3.5 Customer Service Standards for Distribution Utilities and Suppliers.............34 3.5.1 Customer Service Standards...................................................................34 3.5.2 Measuring Customer Service Performance............................................35 3.5.3 Customer Service Standards for Distribution Utilities...........................35 3.5.4 Customer Service Standards for Suppliers.............................................35 3.6 Safety Standards for Distribution Utilities and Suppliers................................37 3.6.1 Adoption of PEC and OSHS...................................................................37 3.6.2 Compliance with Republic Act No. 7920...............................................38 3.6.3 Measurement of Performance for Personnel Safety...............................38 3.6.4 Submission of Safety Records and Reports............................................38 vi Philippine Distribution Code 2016 Edition Table of Contents 4 Distribution Connection Requirements.............................................................40 4.1 Purpose and Scope...........................................................................................40 4.1.1 Purpose....................................................................................................40 4.1.2 Scope of Application...............................................................................40 4.2 Distribution Technical, Design, and Operational Criteria...............................40 4.2.1 Power Quality Standards.........................................................................40 4.2.2 Frequency Variations..............................................................................40 4.2.3 Voltage Variations..................................................................................41 4.2.4 Power Factor...........................................................................................41 4.2.5 Harmonics...............................................................................................41 4.2.6 Voltage Unbalance..................................................................................42 4.2.7 Flicker Severity.......................................................................................42 4.2.8 Transient Voltage Variations..................................................................42 4.2.9 Protection Arrangements........................................................................42 4.2.10 Equipment Short Circuit Rating............................................................43 4.2.11 Grounding Requirements......................................................................43 4.2.12 Monitoring and Control Equipment Requirements...............................43 4.2.13 Equipment Standards............................................................................43 4.2.14 Maintenance Standards.........................................................................44 4.3 Procedures for Distribution Connection or Modification................................44 4.3.1 Connection Agreement...........................................................................44 4.3.2 Amended Connection Agreement...........................................................44 4.3.3 Distribution Impact Studies....................................................................44 4.3.4 Application for Connection or Modification..........................................47 4.3.5 Processing of Application.......................................................................47 4.3.6 Submittals Prior to the Commissioning Date..........................................48 4.3.7 Commissioning of Equipment and Physical Connection to the Distribution System...................................................................................49 4.4 Requirements for All Embedded Generation Companies................................49 4.4.1 Classification of Embedded Generating Plants.......................................49 4.4.2 Requirements Relating to the Connection Point.....................................50 4.4.3 Black Start Capability.............................................................................50 4.4.4 Fast Start Capability................................................................................51 4.4.5 Power Quality.........................................................................................51 4.4.6 Transformer Connection and Grounding................................................52 4.5 Requirements for Large Conventional Embedded Generating Plants.............52 4.5.1 Embedded Generating Unit Power Output.............................................52 4.5.2 Frequency Withstand Capability.............................................................52 4.5.3 Unbalance Loading Withstand Capability..............................................53 4.5.4 Performance Under Disturbances...........................................................53 4.5.5 Reactive Power Capability......................................................................53 4.5.6 Reactive Power Control and Excitation Control System........................53 4.5.7 Active Power Control.............................................................................54 4.5.8 Speed-Governing System........................................................................54 4.5.9 Protection Arrangements........................................................................54 4.5.10 Information Interchange........................................................................54 4.6 Requirements for Large VRE Embedded Generating Plants...........................55 4.6.1 Embedded Generating Unit Power Output.............................................55 4.6.2 Frequency Withstand Capability.............................................................55 4.6.3 Reactive Power Capability......................................................................56 vii Table of Contents Philippine Distribution Code 2016 Edition 4.6.4 Reactive Power Control..........................................................................56 4.6.5 Active Power Control.............................................................................57 4.6.6 Performance During Network Disturbances...........................................58 4.6.7 Protection Arrangements........................................................................61 4.6.8 Information Interchange..........................................................................62 4.7 Requirements for Medium Embedded Generating Plants...............................62 4.7.1 Embedded Generating Unit Power Output.............................................62 4.7.2 Frequency Withstand Capability.............................................................63 4.7.3 Reactive Power Capability and Control..................................................63 4.7.4 Active Power Control.............................................................................64 4.7.5 Performance During Network Disturbances...........................................64 4.7.6 Protection Arrangements........................................................................65 4.7.7 Information Interchange..........................................................................65 4.8 Requirements for Intermediate Embedded Generating Plants.........................65 4.8.1 Embedded Generating Unit Power Output.............................................65 4.8.2 Frequency Withstand Capability.............................................................66 4.8.3 Reactive Power Capability and Control..................................................66 4.8.4 Active Power Control.............................................................................67 4.8.5 Performance During Network Disturbances...........................................67 4.8.6 Protection Arrangements........................................................................67 4.8.7 Information Interchange..........................................................................68 4.9 Requirements for Small and Micro Embedded Generating Plants..................68 4.9.1 Embedded Generating Unit Power Output.............................................68 4.9.2 Frequency Withstand Capability.............................................................68 4.9.3 Reactive Power Capability and Control..................................................68 4.9.4 Performance During Network Disturbances...........................................69 4.9.5 Protection Arrangements........................................................................69 4.10 Requirements for Distribution Users.............................................................72 4.10.1 Requirements Relating to the Connection Point...................................72 4.10.2 Protection Arrangements......................................................................72 4.10.3 Transformer Connection and Grounding..............................................72 4.10.4 Underfrequency Relays for Automatic Load Dropping........................72 4.11 Fixed Asset Boundary Document Requirements...........................................73 4.11.1 Fixed Asset Boundary Document.........................................................73 4.11.2 Accountable Persons.............................................................................74 4.11.3 Preparation of Fixed Asset Boundary Document.................................74 4.11.4 Signing and Distribution of Fixed Asset Boundary Document............75 4.11.5 Modifications to an Existing Fixed Asset Boundary Document..........75 4.12 Electrical Diagram Requirements..................................................................75 4.12.1 Responsibilities of the Distribution Utility and Users..........................75 4.12.2 Preparation of Electrical Diagrams.......................................................76 4.12.3 Changes to Electrical Diagrams............................................................76 4.12.4 Validity of Electrical Diagrams............................................................76 4.13 Connection Point Drawing Requirements.....................................................77 4.13.1 Responsibilities of the Distribution Utility and Users..........................77 4.13.2 Preparation of Connection Point Drawings..........................................77 4.13.3 Changes to Connection Point Drawings...............................................77 4.13.4 Validity of the Connection Point Drawings..........................................78 4.14 Distribution Data Registration.......................................................................78 4.14.1 Data to be Registered............................................................................78 viii Philippine Distribution Code 2016 Edition Table of Contents 4.14.2 Stages of Data Registration...................................................................78 4.14.3 Data Forms............................................................................................79 5 Distribution Planning..........................................................................................80 5.1 Purpose.............................................................................................................80 5.2 Distribution Planning Responsibilities and Procedures...................................80 5.2.1 Distribution Planning Responsibilities...................................................80 5.2.2 Submission of Planning Data..................................................................80 5.2.3 Consolidation and Maintenance of Planning Data..................................81 5.2.4 Evaluation of Proposed Development....................................................81 5.2.5 Preparation of Distribution Development Plan.......................................82 5.3 Distribution Planning Studies..........................................................................82 5.3.1 Distribution Planning Studies.................................................................82 5.3.2 Voltage Drop Studies..............................................................................83 5.3.3 Short Circuit Studies...............................................................................83 5.3.4 System Loss Studies...............................................................................84 5.3.5 Distribution Reliability Studies...............................................................84 5.4 Standard Planning Data....................................................................................84 5.4.1 Energy and Demand Forecast.................................................................84 5.4.2 Embedded Generating Unit Data............................................................85 5.4.3 User System Data....................................................................................86 5.5 Detailed Planning Data....................................................................................88 5.5.1 Embedded Generating Unit Data............................................................88 5.5.2 User System Data....................................................................................91 6 Distribution Operations.......................................................................................92 6.1 Purpose.............................................................................................................92 6.2 Operational Responsibilities............................................................................92 6.2.1 Operational Responsibilities of the Distribution Utility.........................92 6.2.2 Operational Responsibilities of Embedded Generation Companies.......93 6.2.3 Operational Responsibilities of Large VRE Embedded Generation Companies..................................................................................................93 6.2.4 Scheduling and Dispatch.........................................................................94 6.2.5 Operational Responsibilities of Other Distribution Users......................94 6.3 Operational Arrangements...............................................................................94 6.3.1 Mutual Assistance...................................................................................94 6.3.2 Equipment and Inventory Sharing..........................................................95 6.3.3 Joint Purchases........................................................................................95 6.4 Distribution Operations Communications, Notices, and Reports....................95 6.4.1 Distribution Operations Communications..............................................95 6.4.2 Distribution Operations Notices.............................................................95 6.4.3 Distribution Operations Reports.............................................................96 6.5 Distribution Maintenance Program..................................................................96 6.5.1 Preparation of Maintenance Program.....................................................96 6.5.2 Submission and Approval of Maintenance Program..............................96 6.6 Demand and Voltage Control..........................................................................97 6.6.1 Demand Control Coordination................................................................97 6.6.2 Automatic Load Dropping......................................................................98 6.6.3 Manual Load Dropping...........................................................................98 ix Table of Contents Philippine Distribution Code 2016 Edition 6.6.4 Voluntary Demand Management............................................................99 6.6.5 Voltage Control.....................................................................................100 6.7 Emergency Procedures...................................................................................100 6.7.1 Preparation for Distribution Emergencies............................................100 6.7.2 Significant Incident Procedures............................................................100 6.7.3 Operation of Embedded Generating Unit in Island Grid......................101 6.7.4 Black Start and Resynchronization Procedures....................................101 6.8 Safety Coordination.......................................................................................102 6.8.1 Safety Coordination Procedures...........................................................102 6.8.2 Safety Coordinator................................................................................102 6.8.3 Safety Logs and Record of Inter-System Safety Precautions...............103 6.8.4 Location of Safety Precautions.............................................................103 6.8.5 Implementation of Safety Precautions..................................................104 6.8.6 Authorization of Testing.......................................................................105 6.8.7 Cancellation of Safety Precautions.......................................................105 6.9 Distribution Testing and Monitoring.............................................................105 6.9.1 Testing Requirements...........................................................................105 6.9.2 Monitoring of User Effect on the Distribution System.........................106 6.10 System Test..................................................................................................106 6.10.1 System Test Requirements..................................................................106 6.10.2 System Test Request...........................................................................106 6.10.3 System Test Group..............................................................................107 6.10.4 System Test Program..........................................................................108 6.10.5 System Test Report.............................................................................109 6.11 Embedded Generating Unit Capability Tests..............................................109 6.11.1 Test Requirements For Large and Medium Embedded Generating Units..................................................................................................................109 6.11.2 Tests to be Performed for Large and Medium Embedded Generating Units.........................................................................................................110 6.11.3 Test Requirements for Intermediate, Small and Micro Embedded Generating Units......................................................................................112 6.12 Site and Equipment Identification...............................................................114 6.12.1 Site and Equipment Identification Requirements...............................114 6.12.2 Site and Equipment Identification Label............................................114 7 Distribution Revenue Metering Requirements...............................................116 7.1 Purpose and Scope.........................................................................................116 7.1.1 Purpose..................................................................................................116 7.1.2 Scope of Application.............................................................................116 7.2 Metering Requirements..................................................................................116 7.2.1 Metering Equipment.............................................................................116 7.2.2 Metering Point Location.......................................................................116 7.2.3 Metering Responsibility........................................................................117 7.2.4 Active Energy and Demand Metering..................................................117 7.2.5 Reactive Energy and Demand Metering...............................................117 7.2.6 Requirements for Instrument Transformers..........................................118 7.2.7 Requirements for Distribution Revenue Meters...................................118 7.2.8 General Requirement for Grounding System.......................................120 7.2.9 Meter Test Block or Switch..................................................................120 7.2.10 Other Accessories...............................................................................120 x Philippine Distribution Code 2016 Edition Table of Contents 7.3 Requirements for Commissioning, Testing and Maintenance of Metering Facilities and Equipment................................................................................120 7.3.1 Readiness of a Distribution System Metering Facility for Service.......120 7.3.2 Instrument Transformer Testing...........................................................121 7.3.3 Meter Calibration and Testing..............................................................121 7.3.4 Operation and Maintenance of Metering Facilities and Equipment.....122 7.3.5 Traceability of Metering Standard........................................................122 7.4 Meter Reading and Metering Data.................................................................123 7.4.1 Requirements for Metering Data..........................................................123 7.4.2 Meter Data Collection and Delivery.....................................................123 7.4.3 Meter Register Reading........................................................................123 7.4.4 Validation and Substitution of Metering Data......................................123 7.4.5 Storage and Availability of Metering Data...........................................124 7.4.6 Persons or Entities Authrorized to Receive Metering Data..................124 7.4.7 Security of Metering Facilities, Equipment and Data...........................124 8 Philippine Distribution Code Transitory Provisions......................................126 8.1 Purpose...........................................................................................................126 8.2 Compliance with the Philippine Distribution Code 2016 Edition.................126 8.2.1 Compliance of Distribution Utilities and Users....................................126 Chapter Description Page A Financial Capability Standards For Distribution And Supply......................128 1.1 Purpose and Scope.........................................................................................128 1.1.1 Purpose..................................................................................................128 1.1.2 Scope of Application.............................................................................128 1.2 Definitions......................................................................................................128 1.3 Financial Standards for Distribution utilities.................................................129 1.3.1 Financial Ratios....................................................................................129 1.3.2 Leverage Ratios....................................................................................129 1.3.3 Liquidity Ratios....................................................................................130 1.3.4 Financial Efficiency Ratios...................................................................130 1.3.5 Profitability Ratios................................................................................131 1.3.6 Submission and Evaluation...................................................................131 1.4 Financial Standards for Suppliers..................................................................131 1.4.1 Prudential Requirements.......................................................................131 1.4.2 Financial Requirements........................................................................132 1.4.3 Credit Standards....................................................................................132 1.4.4 Financial Standards for Customer Protection.......................................132 1.4.5 Certification Standards..........................................................................133 1.4.6 Financial Standards for Billing, Collection, and Profitability..............133 1.4.7 Organizational and Managerial Resource Requirements......................135 1.4.8 Submission and Evaluation...................................................................135 B Formula..............................................................................................................138 1.1 Customer Average Interruption Duration Index (CAIDI).............................138 1.2 Long Term Flicker Severity...........................................................................138 1.3 Momentary Average Interruption Frequency Index (MAIFI).......................138 xi Table of Contents Philippine Distribution Code 2016 Edition 1.4 System Average Interruption Duration Index (SAIDI).................................139 1.5 System Average Interruption Frequency Index (SAIFI)...............................139 1.6 Total Demand Distortion (TDD)...................................................................140 1.7 Total Harmonic Distortion (THD).................................................................140 1.8 Voltage Unbalance.........................................................................................140 C Sample Computation for Indices......................................................................142 xii  CHAPTER 1 PHILIPPINE DISTRIBUTION CODE GENERAL CONDITIONS 1.1 PURPOSE (a) To establish regulatory framework for the promulgation and enforcement of the Philippine Distribution Code; (b) To specify the general rules pertaining to data and notices that apply to all Chapters of the Philippine Distribution Code; (c) To specify the rules for interpreting the provisions of the Philippine Distribution Code; and (d) To define the common and significant terms and abbreviations used in the Philippine Distribution Code. 1.2 AUTHORITY AND APPLICABILITY 1.2.1 Authority The Act provides the Energy Regulatory Commission (ERC) the authority to promulgate the Philippine Distribution Code. 1.2.2 Applicability The Philippine Distribution Code applies to all Users of the Distribution System, unless provided otherwise in a particular Chapter or Article, including: (a) Distribution Utilities; (b) Other Distribution Utilities connected to Distribution Systems; (c) System Operator; (d) Embedded Generation Companies; (e) Metering Service Providers; (f) Suppliers; (g) Entities duly authorized to operate a Distribution System within the Economic Zones; (h) Other duly authorized entities engaged in the Distribution of Electricity; and (i) End-Users. 1.3 ENFORCEMENT AND SUSPENSION OF PROVISIONS 1.3.1 Enforcement 1.3.1.1 The Act assigns to the ERC the responsibility of enforcing the Philippine Distribution Code. 1.3.1.2 The ERC established the Distribution Management Committee (DMC) to monitor the Philippine Distribution Code compliance at the planning and operations level and to submit regular and special reports pertaining to Distribution planning and operations. 1 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition 1.3.1.3 The DMC shall initiate an enforcement process for any perceived violations of the Philippine Distribution Code provisions and recommend to the ERC the appropriate fines and penalties for such violations. 1.3.2 Suspension of Provisions Any provision of the Philippine Distribution Code may be suspended, in whole or in part, when the Grid is not operating in the Normal State and the System Operator has issued an Alert Warning to the Distribution Utility, or pursuant to any directive given by the ERC or the appropriate government agency. 1.4 DEROGATIONS 1.4.1 Applicability 1.4.1.1 If a User finds that it is, or will be unable to comply with any provision of the Philippine Distribution Code, then it shall, without delay, report such non-compliance to the ERC through the DMC and shall make such reasonable efforts as are required to correct such non-compliance as soon as reasonably practicable. 1.4.1.2 When a User believes either that it would be unreasonable to require it to correct non-compliance, the User shall promptly submit to the ERC, through the DMC, a request for derogation from such provision. 1.4.2 Request for Derogation 1.4.2.1 A request by a User for derogation from any provision of the Philippine Distribution Code shall contain: (a) Sections and provisions of the Philippine Distribution Code against which the non-compliance or predicted non-compliance was identified; (b) The reason or rationale for the non-compliance or expected non- compliance; (c) Proposed corrective actions, if any; and (d) The date of completion by which compliance could be achieved (if corrective actions of the non-compliance is possible). 1.4.2.2 On receipt of any request for derogation, the DMC shall promptly review such request, provided that it considers that the grounds for the derogation are reasonable or sufficiently justified. The ERC, based on DMC’s recommendation, shall decide on such derogation. 1.4.2.3 To the extent of any derogation granted in accordance with 1.4.2.2, the User, as the case may be, shall be relieved from any obligation to comply with the applicable provision of the Philippine Distribution Code and shall not be liable for failure to so comply, but shall comply with any alternative provisions identified in the derogation. 1.4.2.4 The DMC shall: (a) Keep a register of all requests for derogations, including those denied and those which have been granted, and in the latter case, identifying the name of the person and User in respect of whom the derogation has been granted, the relevant provision of the Philippine Distribution Code and the period of the derogation; and 2 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions (b) On request from any User, provide a copy of such register of derogations to such requesting party. 1.4.2.5 The ERC may on its own initiative or at the request of the DMC or a User: (a) Review any existing derogations; and (b) Review any derogation under consideration, and establish whether the ERC considers such request is justified. 1.5 DATA, NOTICES, AND CONFIDENTIALITY 1.5.1 Data and Notices 1.5.1.1 The submission of any data under the Philippine Distribution Code shall be done through electronic format or such format prescribed/required by the DMC and agreed upon by the concerned parties. 1.5.1.2 Written notices under the Philippine Distribution Code shall be served by hand delivery, registered first-class mail, or facsimile transfer. 1.5.2 Confidentiality 1.5.2.1 Data submitted by any User to the Distribution Utility in compliance with the data requirements of the Philippine Distribution Code shall be treated by the Distribution Utility as confidential. These include data requirements for connection to the Distribution System and those that are required in the planning, operation, and maintenance of the Distribution System. 1.5.2.2 Aggregate data shall be made available by the Distribution Utility when requested by a User. These data shall be used only for the purpose specified in the request and shall be treated by the User as confidential. 1.6 CONSTRUCTION OF REFERENCES 1.6.1 References Unless the context otherwise requires, any references to a particular Chapter, Article, Section, Subsection, or Appendix of the Philippine Distribution Code shall be applicable only to that Chapter, Article, Section, Subsection, or Appendix to which the reference is made. 1.6.2 Cross-Reference A cross-reference to another document shall not in any way impose any condition or modify the material contained in the document where such cross-reference is made. 1.6.3 Definitions Terms which are capitalized shall be interpreted in accordance with the Definitions under Section 1.7. When a word or phrase that is defined in Article 1.7 is more particularly defined in another Article, Section, or Subsection, the particular definition in that Article, Section, or Subsection shall prevail if there is any inconsistency. 3 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition 1.6.4 Foreword, Table of Contents, and Titles The Foreword was added to present the historical background of the Philippine Distribution Code 2016 Edition and highlight the significant changes introduced therein. The Table of Contents and the titles were added as a guide for the convenience of the users of the Philippine Distribution Code. The Foreword, the Table of Contents, and the titles of the Chapters, Articles, and Sections shall be ignored in interpreting the Philippine Distribution Code provisions. 1.6.5 Mandatory Provisions The word “shall” refers to a rule, procedure, requirement, or any provision of the Philippine Distribution Code that requires mandatory compliance. 1.6.6 Singularity and Plurality In interpreting any provision of the Philippine Distribution Code and unless otherwise specified, the singular shall include the plural, and vice versa. 1.6.7 Gender Any reference to a gender shall include all other genders. Any reference to a person or entity shall include an individual, partnership, company, corporation, association, organization, institution, and other similar groups. 1.6.8 “Include” and “Including” The use of the word “include” or “including” to cite an enumeration shall not impose any restriction on the generality of the preceding words. 1.6.9 “Written” and “In Writing” The words “written” and “in writing” refer to the hardcopy of a document that is generally produced by typing, printing, or other methods of reproducing words in a legible format. 1.6.10 Repealing Clause All existing rules and regulations, orders, resolutions, and other similar issuances, or parts thereof, which are inconsistent with the provisions of the Philippine Distribution Code 2016 Edition and its Appendices are hereby repealed or modified accordingly. 1.7 DEFINITIONS In the Philippine Distribution Code the following words and phrases shall, unless more particularly defined in an Article, Section, or Subsection of the Philippine Distribution Code, have the following meanings: Accountable Person. A person who has been duly authorized by the Distribution Utility (or User) to sign the Fixed Asset Boundary Documents on behalf of the Distribution Utility (or User). Act. Republic Act No. 9136 also known as the “Electric Power Industry Reform Act of 2001,” which mandated the restructuring of the electricity industry, the privatization of the National Power Corporation, and the institution of reforms, including the promulgation of the Philippine Grid Code and the Philippine Distribution Code. 4 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions Active Energy. The integral of the Active Power with respect to time, measured in Watt-hour (Wh) or multiples thereof. Unless otherwise qualified, the term “Energy” refers to Active Energy. Active Power. The time average of the instantaneous power over one period of the electrical wave, measured in Watts (W) or multiples thereof. For AC circuits or systems, it is the product of the root-mean-square (RMS) or effective value of the voltage and the RMS value of the in-phase component of the current. In a three- phase systems, it is the sum of the Active Power of the individual phases. Adverse Weather. A weather condition that results in abnormally high rate of Forced Outages for exposed Components while such condition persists, but does not qualify as a Major Storm Disaster. An Adverse Weather condition can be defined for a particular System by selecting the proper values and combinations of the weather conditions reported by the weather bureau including thunderstorm, wind velocity, precipitation, and temperature. Alert Warning. A notice issued by the System Operator, including Yellow Alert, Blue Alert, and Red Alert, to notify the Users of the Grid that an alert state exists. Amended Connection Agreement. An agreement between a User and the Distribution Utility, which specifies the terms and conditions pertaining to the renovation or modification of the User System or Equipment at an existing Connection Point in the Distribution System. Ancillary Service. Support services such as Primary Reserve, Secondary Reserve, Tertiary Reserve, Reactive Power support, and Black Start Capability which are necessary to support the transmission capacity and Energy that are essential in maintaining Power Quality and the Reliability of the Grid or as defined in the latest edition of the Philippine Grid Code. Apparent Power. The product of the root-mean-square (RMS) or effective value of the current and the root-mean-square value of the voltage. For AC circuits or systems, it is the square root of the sum of the squares of the Active Power and Reactive Power, measured in volt-ampere (VA) or multiples thereof. Automatic Generation Control (AGC). The regulation of the power output of Generating Units in response to a change in system frequency, so as to maintain the power system frequency within the predetermined limits. Automatic Load Dropping (ALD). The process of automatically and deliberately removing pre-selected Loads from a power system in response to an abnormal condition in order to maintain the integrity of the System. It can be classified as: 1) Under-frequency Load Shedding (UFLS); and 2) Under-voltage Load Shedding (UVLS). Backup Protection. A form of protection that operates independently of the specified Components in the primary protection system. It may duplicate the primary protection or may be intended to operate only if the primary protection fails or is temporarily out of service. Black Start. The process of recovery from Total System Blackout using a Generating Unit with the capability to start and synchronize with the System without an external power supply. Central Dispatch. The process of scheduling generation facilities and issuing Dispatch Instructions to industry participants, considering the energy demand, operating reserve requirements, Security constraints, Outages and other contingency plans, to achieve an economic operation while maintaining Power Quality, Stability, and the Reliability and Security of the Grid. 5 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition Circuit Breaker. A mechanical switching device, which is capable of making, carrying, and breaking current under normal circuit conditions and also capable of making, carrying for a specified time and breaking current under specified abnormal circuit conditions, such as a short circuit. Committed Project Planning Data. The data pertaining to a User Development once the offer for a Connection Agreement or an Amended Connection Agreement is accepted. Completion Date. The date, specified in the Connection Agreement or Amended Connection Agreement, when the User Development is scheduled to be completed and be ready for connection to the Distribution System. Component. A piece of equipment, a line or circuit, a section of line or circuit, or a group of items, which is viewed as an entity for a specific purpose. Connected Project Planning Data. The data which replaces the estimated values that were assumed for planning purposes, with validated actual values and updated estimates for the future and by updated forecasts, in the case of forecast data. Connection Agreement. An agreement between a User and the Distribution Utility, which specifies the terms and conditions pertaining to the connection of the User System or Equipment to a new Connection Point in the Distribution System. Connection Point. The point of connection of the User System or Equipment to the Distribution System (for Users of the Distribution System) or to the Grid (for Users of the Grid). Connection Point Drawings. The drawings prepared for each Connection Point, which indicate the Equipment layout, common protection and control, and auxiliaries at the Connection Point. Control Center. A facility used for monitoring and controlling the operation of the Grid, Distribution System, or a User System. Conventional Generating Facility. Any Generating Unit/Plant which is not a Variable Renewable Energy facility. Conventional Generation Company. Refers to a Generation Company that is authorized by the ERC to operate a facility used in the Generation of Electricity which is not a Variable Renewable Energy facility. Current Transformer. An instrument transformer intended to have its primary winding connected in series with the conductor carrying the current to be measured or controlled. Customer. Any person or entity supplied with electric service under a contract with a Distribution Utility or Supplier. Customer Average Interruption Duration Index (CAIDI). Represents the average time required to restore service. Customer Demand Management. The reduction in the Supply of Electricity to a consumer of electricity or the disconnection of a Customer in a manner agreed upon for commercial purposes, between a Customer and its Generation Company, Distribution Utility, or Supplier. Customer Rating Approach. The process of evaluating a Distribution Utility’s (or Supplier’s) Customer Service Program by using a statistically valid Transactions Survey. Customer Self-Generating Plant. A Customer with one or more Generating Units not subject to Central Dispatch, to the extent that it operates exclusively to supply all or part of its own electricity requirements, and does not export electrical power using the Distribution System. 6 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions Customer Services. The day-to-day transactions between a Distribution Utility (or Supplier) and its Customers including payment of bills, application for connection, and Customer complaints. It also includes any activity that the Distribution Utility (or Supplier) does to add value or efficiency to these transactions. Customer Service Program. The totality of the Customer Services offered by a Distribution Utility (or Supplier). Customer Service Standards. A listing of Customer Services that measure how effectively a Distribution Utility (or Supplier) conducts its day-to-day transactions with its Customers. Customer Service Standards are intended to ensure customer satisfaction. Declared Data. The data provided by the Generation Company in accordance with the latest/current Generating Unit parameters. Dedicated Feeder. A feeder utilized by a single User, either a Customer or an Embedded Generation Company. Degradation of the Distribution System. A condition resulting from a User Development or a Distribution System expansion project that has a Material Effect on the Distribution System or the System of other Users and which can be verified through Distribution Impact Studies. Demand. The average value of power or a related quantity over a specified interval of time. Demand is expressed in kilowatts, kilovolt-amperes, kilovars, or other suitable units. Demand Control. A reduction in Demand for the control of the Frequency when the Grid is in the Emergency State. This includes Automatic Load Dropping, Manual Load Dropping, reduction in Demand upon instruction by the System Operator, and Voluntary Load Management. Demand Control Imminent Warning. A warning from the System Operator, not preceded by any other warning, which is issued when a reduction in Demand is expected within the next 30 minutes. Demand Forecast. An estimate of the future system peak Demand expressed in kW or MW of a particular Connection Point in the Distribution System. Department of Energy (DOE). The government agency created pursuant to Republic Act No. 7638 which is provided with the additional mandate under the Act of supervising the restructuring of the electricity industry, developing policies and procedures, formulating and implementing programs, and promoting a system of incentives that will encourage private sector investments and reforms in the electricity industry and ensuring an adequate and reliable Supply of Electricity. Detailed Planning Data. Additional data, which the Distribution Utility requires, for the conduct of a more accurate distribution system planning study. Disconnection. The opening of an electrical circuit to isolate an electrical system or equipment from a power source. Dispatch. The process of apportioning the total Demand of the Grid through the issuance of Dispatch Instructions to the Scheduled Generating Units and the Generating Units providing Ancillary Services in order to achieve the operational requirements of balancing Demand with generation that will ensure the Security of the Grid. Dispatch Instruction. Refers to the instruction issued by the System Operator to the Generation Companies with Scheduled Generating Units and the Generation 7 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition Companies whose Generating Units will provide Ancillary Services to implement the final Dispatch Schedule in real time. Dispatch Schedule. The target loading levels in MW for each Scheduled Generating Unit or scheduled loads and for each reserve facility for the end of that trading interval determined by the Market Operator through the use of a market dispatch optimization model. Dispatch Scheduling and Dispatch Parameters. Refers to the technical data pertaining to the Scheduled Generating Units, which are taken into account in the preparation of the Dispatch Schedule. Distribution Development Plan (DDP). The expansion, reinforcement and rehabilitation program of the Distribution System which is prepared by the Distribution Utility and submitted to the DOE for integration with the PDP and PEP. In the case of Electric Cooperatives, such plans shall be submitted through the NEA for review and consolidation. Distribution Impact Studies. A set of technical studies which are used to assess the possible effects of a proposed expansion, reinforcement, or modification of the Distribution System or a User Development and to evaluate Significant Incidents. Distribution of Electricity. The conveyance of electric power by a Distribution Utility through its Distribution System. Distribution System. The system of wires and associated facilities belonging to a franchised Distribution Utility, extending between the delivery points on the transmission, sub-transmission system, or generating plant connection and the point of connection to the premises of the End-User. Distribution Utility. Refers to any Electric Cooperative, private corporation, government-owned utility, or existing local government unit, which has an exclusive franchise to operate a Distribution System in accordance with its franchise and the Act. Distribution Utility Use. Refers to the Energy used in the proper operation of the Distribution System. Economic Zone (EZ). Selected areas which are being developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers. An EZ may refer but not limited to any of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones (FTZs), Information Technology Parks and Tourist/Recreational Centers, such as those managed, administered, or operated by the Bases Conversion Development Authority (BCDA), Cagayan Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), Phividec Industrial Authority (PIA), and Zamboanga City Economic Zone Authority (ZCEZA). Electric Cooperative. Refers to a Distribution Utility organized pursuant to Presidential Decree No. 269, as amended, or otherwise provided in the Act. Electrical Diagram. A schematic representation using standard electrical symbols, which shows the connection of Equipment or power system components to each other or to external circuits. Embedded Generating Plant. Has the same meaning as Embedded Generators. Embedded Generating Unit. A Generating Unit within an Embedded Generating Plant. 8 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions Embedded Generation Company. A person or entity that generates electricity using an Embedded Generating Unit. Embedded Generation Company shall also include Net Metering customers and customers with self-generating plant. Embedded Generator. Refers to Generating Units that are indirectly connected to the Grid through the Distribution Utilities’ system or industrial Generation Facilities that are synchronized with the Grid. Emergency State. The Grid operating condition when either a Single Outage Contingency or a Multiple Outage Contingency has occurred without resulting in Total System Blackout, but there is generation deficiency or Operating Margin is zero, grid transmission voltage is outside the limits of ±10% of the nominal value; or the loading level of any transmission line or substation Equipment is above 115% of its Operational Thermal Limit Capacity exists or as defined in the latest edition of the Philippine Grid Code. End-User. Any person or entity requiring the supply and delivery of electricity for its own use. Energy. Amount of work that the system is capable of doing. Generally, it refers to electrical energy and is measured in kilowatt-hours (kWh). Energy Forecast. An estimate of the future system energy requirement expressed in kWh or MWh related to each Connection Point in the Distribution System. Energy Regulatory Commission (ERC). The independent, quasi-judicial regulatory body created pursuant to Republic Act No. 9136, which is mandated to promote competition, encourage market development, ensure customer choice, and penalize abuse of market power in the restructured electricity industry and among other functions, promulgate and enforce the Philippine Grid Code and the Philippine Distribution Code. EPC Contractor. A company contracted by the Generation Company to carry out the engineering, procurement and construction (EPC) works of a Conventional or VRE Generating Facility. Equipment. All apparatus, machines, conductors, etc., used as part of, or in connection with, an electrical installation. Equipment Identification. The system of numbering or nomenclature for the identification of Equipment at the Connection Points in the Distribution System. Event. An unscheduled or unplanned occurrence of an abrupt change or disturbance in a power system due to fault, equipment outage, Adverse Weather condition, or natural phenomenon. Fast Start. The capability of a Generating Unit or Generating Plant to start and synchronize with the Grid within 15 minutes. Fault Clearance Time. The time interval from fault inception until the end of the arc extinction by the Circuit Breaker. Fault Level. The expected current, expressed in kA or in MVA, that will flow into a short circuit at a specified point on the Grid, Distribution System, or any User System. Fixed Asset Boundary Document. A document containing information and which defines the ownership and/or operational responsibilities for the Equipment at the Connection Point. Flicker. The impression of unsteadiness of visual sensation induced by a light stimulus whose luminance or spectral distribution fluctuates with time. Forced Outage. An Outage that results from emergency conditions directly associated with a Component requiring that it be taken out of service immediately, 9 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition either automatically or as soon as switching operations can be performed. Also, an Outage caused by human error or the improper operation of Equipment. Franchise Area. A geographical area assigned or granted to a Distribution Utility for the Distribution of Electricity. Free Governor Mode (Frequency-control mode or governor control mode). It refers to the “unblocked” turbine speed control of the generating unit. Frequency. The number of complete cycles of a sinusoidal variation per unit time, usually measured in cycle per second or Hertz. Frequency Control. A strategy used by the System Operator to maintain the Frequency of the Grid within the limits prescribed by the Philippine Grid Code by the timely use of Primary Reserve, Secondary Reserve, Tertiary Reserve and Demand Control or as defined in the latest edition of the Philippine Grid Code. Frequency Variation. The deviation of the fundamental system frequency from its nominal value. Generating Plant. A facility, consisting of one or more Generating Units, where electric energy is produced from some other form of Energy by means of a suitable apparatus. Generating Unit. A conversion apparatus including auxiliaries and associated Equipment, functioning as a single unit, which is used to produce electric energy from some other form of energy. Generation Company. A person or entity authorized by the ERC to operate a facility used in the Generation of Electricity. Generation of Electricity. The production of electricity by a Generation Company. Grid. The High Voltage backbone System of interconnected transmission lines, substations, and related facilities, located in each of Luzon, Visayas, and Mindanao, or as may be determined by the ERC in accordance with Section 45 of the Act. Grounding. A conducting connection by which an electrical circuit or Equipment is connected to earth or to some conducting body of relatively large extent that serves as ground. Guaranteed Standards. Refer to the Customer Services that will penalize a Distribution Utility (or Supplier) for failure to provide the required level of service by making payment to affected Customers. Harmonics. Sinusoidal voltages and currents having Frequencies that are integral multiples of the fundamental Frequency. High Voltage (HV). A voltage level exceeding 34.5 kV up to 230 kV. IEC Standard. The international standard for electro-technical Equipment approved and published by the International Electrotechnical Commission. Implementing Safety Coordinator. The Safety Coordinator assigned by the Distribution Utility (or the User) to establish the requested Safety Precautions in the User System (or the Distribution System). Installed Capacity. Expressed in MW (or kW), it refers to the sum of rated generating capacity of each Generating Unit. Interruption. The loss of service to a Customer or a group of Customers or other facilities. An Interruption is the result of one or more component outages. Island Grid. A Generating Plant or a group of Generating Plants and its associated Load, which is isolated from the rest of the Grid but is capable of generating and 10 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions maintaining a stable supply of electricity to the Customers within the isolated area. Isolation. The electrical separation of a part or Component from the rest of the electrical system to ensure safety when that part or Component is to be maintained or when electric service is not required. Large Customer. A Customer with a demand of at least 1 MW or the threshold value specified by the ERC. Threshold value other than one 1 MW shall be reported by the Distribution Utility to the ERC within 60 days from the effectivity of the revised Philippine Distribution Code. Large Embedded Generation Company. A Generation Company whose generating facility at the Connection Point has an aggregate Installed Capacity of 10 MW or more. Load. An entity or an electrical equipment that consumes or draws electrical energy. Local Safety Instructions. A set of instructions regarding the Safety Precautions on MV or HV Equipment to ensure the safety of personnel carrying out work or testing on the Distribution System or the User System. Long Duration Voltage Variation. A variation of the RMS value of the voltage from nominal voltage for a time greater than 1 minute. Long Term Flicker Severity. A value derived from twelve successive measurements of Short Term Flicker Severity over a two-hour period. It is calculated as the cube root of the mean sum of the cubes of twelve individual measurements. Loss of Mains. A situation in which, due to an incident and/or abnormal situation, a portion of the distribution network, to which the Embedded Generating Plant is connected, separates from the main Distribution System forming an island. Low Voltage (LV). A voltage level not exceeding 1000 volts. Maintenance Program. A set of schedules, which are coordinated by the Distribution Utility and the System Operator, specifying planned maintenance for Equipment in the Distribution System or in any User System. Manufacturer. A person or organization that manufactures Embedded Generating Units and also ‘packages’ Components manufactured by others to make a Generating Plant which can be Type Tested to meet the requirements of the Philippine Distribution Code. Major Event. Designates an Event that exceeds reasonable design and/or operational limits of the electric power System. A Major Event includes at least one Major Event Day (MED). Major Event Day. A day in which the daily SAIDI exceeds a threshold value, TMED. For the purpose of calculating daily system SAIDI, any Interruption that spans multiple calendar days is accrued to the day on which the Interruption began. Statistically, days having a daily system SAIDI greater than TMED are days on which the energy delivery system experienced stresses beyond that normally expected (such as severe weather). Activities that occur on major event days should be separately analyzed and reported. Major Storm Disaster. A weather condition wherein the design limits of Equipment or Components are exceeded, and which results in extensive mechanical fatigue to Equipment, widespread customer interruption, and unusually long service restoration time. Manual Load Dropping (MLD). The process of manually and deliberately removing pre-selected Loads from a power system, in response to an abnormal condition, and in order to maintain the integrity of the System. 11 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition Market Operator. The entity responsible for the operation of the Wholesale Electricity Spot Market (WESM) in accordance with the WESM Rules. Material Effect. A condition that has resulted or expected to result in problems involving any of the following: Power Quality, System Reliability, System Loss, and safety. Such condition may require extensive work, modification, or replacement of Equipment in the Grid, Distribution System, or the System of any User. Medium Voltage (MV). A voltage level exceeding 1 kV up to 34.5 kV. Meter. A device, which measures and records the consumption or production of electricity. Metering Data. Measurement data obtained from metering facilities for purposes of commercial settlements, operational monitoring and planning. Metering Equipment. The apparatus necessary for measuring electrical Active and Reactive Power and Energy, inclusive of a multi-function meter and the necessary instrument potential, current and phase shifting transformers and all wiring and communication devices provided. Metering Point. Location where the Metering Equipment is installed. Metering Service Provider. A person or entity authorized by the ERC to provide metering services. Minimum Load. The arithmetic average of the registered daily minimum Loads at a specific location during the previous year. Minimum Stable Loading (Pmin). The minimum net output in MW that a Generating Unit, generating block or module, can continuously and reliably sustain based on the Generating Unit capability tests. Modification. Any actual or proposed replacement, renovation, or construction in the Distribution System or the User System that may have a Material Effect on the Distribution System or the System of any User. Momentary Average Interruption Frequency Index (MAIFI). Indicates the average frequency of Momentary Interruptions. Momentary Interruption. A single operation of an interrupting device that results in a voltage zero. For example, two operations of Circuit Breaker or recloser (each operation being an open followed by a close) that momentarily interrupt service to one or more customers is defined as two Momentary Interruptions. Multiple Outage Contingency. An Event caused by the failure of two or more Components of the Grid including those enumerated in the related Philippine Grid Code provisions. National Electrification Administration (NEA). The government agency created under Presidential Decree No. 269, whose additional mandate includes preparing Electric Cooperatives in operating and competing under a deregulated electricity market, strengthening their technical capability, and enhancing their financial viability as electric utilities through improved regulatory policies. National Power Corporation (NPC). The government corporation created under Republic Act No. 6395, as amended, whose generation assets, real estate, and other disposable assets, except for the assets of SPUG and for IPP contracts, shall be privatized, and whose transmission assets shall be transferred to the Power Sector Assets and Liabilities Management Corporation (PSALM). Net Declared Capacity. The capacity of a Generating Unit or Generating Plant less the MW consumed by the Generating Unit or Generating Plant as declared by the Generation Company. 12 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions Net Metering. A system, appropriate for distributed generation, in which a distribution grid user has a two-way connection to the grid and is only charged or credited, as the case may be, the difference between its import energy and export energy. Non-Technical Loss. The component of System Loss that is not related to the physical characteristics and functions of the electrical system, and is caused primarily by human action, whether intentional or not. Non-Technical Loss includes the Energy lost due to pilferage, tampering of Meters, and erroneous Meter reading. Normal State. The Grid operating condition when the system frequency, voltage, and transmission line and equipment loading are within their normal operating limits, the Operating Margin is sufficient, and the grid configuration is such that any fault current can be interrupted and the faulted equipment isolated from the Grid. Operating Margin. The available generating capacity in excess of the sum of the system demand plus losses within a specified period of time or as defined in the latest edition of the Philippine Grid Code. Operational Thermal Limit Capacity. The maximum capacity of transmission facilities determined and declared by the System Operator and Transmission Network Provider which is submitted to GMC for validation annually. Outage. The state of a Component when it is not available to perform its intended function due to some Event directly associated with that Component. An Outage may or may not cause an Interruption of service to Customers. Overall Standards. Refer to the Customer Services where it is not appropriate to give individual guarantees but where Customers have a right to expect the Distribution Utility (or Supplier) to deliver a predetermined reasonable level of performance. Overvoltage. A Long Duration Voltage Variation where the RMS value of the voltage is greater than or equal to 110% of the nominal voltage. Partial System Blackout. The condition when a part of the Grid is isolated from the rest of the Grid and all generation in that part of the Grid has Shutdown. Philippine Distribution Code. The set of rules, requirements, procedures, and standards governing Distribution Utilities and Users in the operation, maintenance, and development of their Distribution Systems. It also defines and establishes the relationship of the Distribution Systems with the facilities or installations of the parties connected thereto. Philippine Electrical Code (PEC). The electrical safety code that establishes basic materials quality and electrical work standards for the safe use of electricity for light, heat, power, communications, signaling, and for other purposes. Philippine Grid Code. The set of rules, requirements, procedures, and standards to ensure the safe, reliable, secured and efficient operation, maintenance, and development of the High Voltage backbone Transmission System and its related facilities. Philippine Energy Plan (PEP). The overall energy program formulated and updated yearly by the DOE and submitted to Congress pursuant to R.A. 7638. Photovoltaic (PV). A method of generating electrical energy by converting solar radiation into direct current electricity using semiconductors that directly produce electricity when exposed to light. Photovoltaic Generation System (PVS). A power system which is made up of one or more solar panels, a controller or inverter, and the interconnections and 13 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition mounting for the other components, which is connected to the system at a single Connection Point. Planned Activity Notice. A notice issued by a User to the Distribution Utility for any planned activity, such as a planned Shutdown or Scheduled Maintenance of its Equipment, at least 3 days prior to the actual Shutdown or maintenance. Point of Grounding. The point on the Distribution System or the User System at which Grounding can be established for safety purposes. Point of Isolation. The point on the Distribution System or the User System at which Isolation can be established for safety purposes. Power Development Program (PDP). The indicative plan for managing Demand through energy-efficient programs and for the upgrading, expansion, rehabilitation, repair, and maintenance of power generation and transmission facilities, formulated and updated yearly by the DOE in coordination with generation, transmission and Distribution Utility companies. Power Factor. The ratio of Active Power to Apparent Power. Power Quality. The quality of the voltage, including its frequency and resulting current, that is measured in the Grid, Distribution System, or any User System. Preliminary Project Planning Data. The data relating to a proposed User Development at the time the User applies for a Connection Agreement or an Amended Connection Agreement. Prescriptive Approach. The process of evaluating a Distribution Utility’s (or Supplier’s) Customer Service Program by comparing its actual performance with the targets approved by the ERC. Primary Response. The autonomous response of a Generating Unit to frequency changes typically provided by the action of the speed governors of a synchronous Generating Unit. To achieve Primary Response, Primary Frequency Control is provided in the first few seconds following a Frequency change and is maintained to a new settling Frequency until it is replaced by Automatic Generation Control action or as defined in the latest edition of the Philippine Grid Code. Primary Reserve. Synchronized generating capacity that is allocated to stabilize the system frequency and to cover the loss or failure of a Synchronized Generating Unit or a transmission line or the power import from a single circuit interconnection or as defined in the latest edition of the Philippine Grid Code. Rated Capacity. The continuous load-carrying ability of transmission, distribution or other electrical equipment expressed in either megavolt-amperes (MVA), or megavolt-amperes reactive (MVAR), or megawatt (MW). Reactive Energy. The integral of the Reactive Power with respect to time, measured in VARh, or multiples thereof. Reactive Power. The component of electrical power representing the alternating exchange of stored energy (inductive or capacitive) between sources and loads or between two Systems, measured in VAR, or multiples thereof. For AC circuits or Systems, it is the product of the RMS voltage and the RMS value of the quadrature component of alternating current. In three-phase systems, it is the sum of the Reactive Power of the individual phases. Reactive Power Capability Curve. A diagram which shows the Reactive Power capability limit versus the Real Power within which a Generating Unit is expected to operate under normal conditions. 14 Philippine Distribution Code 2016 Edition Philippine Distribution Code General Conditions Red Alert. An alert notice issued by the System Operator when the Primary Reserve is zero, a generation deficiency exists, or there is critical loading or imminent overloading of transmission lines or equipment. Reliability. The probability that a System or Component will perform a required task or mission for a specified time in a specified environment. It is the ability of a power system to continuously provide service to its Customers. Requesting Safety Coordinator. The Safety Coordinator assigned by the Distribution Utility (or the User) when it requests that Safety Precautions be established in the User System (or the Distribution System). Safety Coordinator. A person designated/authorized by the Distribution Utility (or the User) to be responsible for the coordination of Safety Precautions at the Connection Point when work or testing is to be carried out on a System which requires the provision of Safety Precautions for MV or HV Equipment. Safety Log. A chronological record of messages relating to safety coordination sent and received by each Safety Coordinator. Safety Precautions. Refers to the Isolation and Grounding of MV or HV Equipment when work or testing is to be done on the Distribution System or User System. Safety Rules. The rules that seek to safeguard personnel working on the Distribution System (or User System) from the hazards arising from the Equipment or the Distribution System (or User System). Safety Tag. A label conveying a warning against possible interference or intervention as defined in the safety clearance and tagging procedures. Scheduled Generating Plant. A Generating Plant whose Generating Units are subject to Central Dispatch by the System Operator. Scheduled Generating Unit. A Generating Unit within a Scheduled Generating Plant. Scheduled Maintenance. The Outage of a Component or Equipment due to maintenance, which is coordinated by the Distribution Utility or User, as the case may be. Secondary Response. The centralized automatic response through Automatic Generation Control of a qualified generating unit to raise or lower signal automatically through SCADA of the System Operator, with the aim of maintaining the Frequency at a pre-established value and/or returning the Frequency to nominal values. Secondary Reserve. Synchronized generating capacity that is allocated to restore the system frequency from the quasi-steady state value as established by the Primary Responses of Generating Units to the nominal Frequency of 60 Hz. Security. The continuous operation of a power system in the Normal State, ensuring safe and adequate supply of power to End-Users, even when some parts or Components of the System are on Outage. Short Duration Voltage Variation. A variation of the RMS value of the voltage from its nominal value for a time greater than one-half cycle of the power frequency but not exceeding one minute. Short Term Flicker Severity. A measure of the visual severity of Flicker derived from a time-series output of a flicker meter over a 10-minute period. Shutdown. The condition of an Equipment when it is de-energized or disconnected from the System. 15 Philippine Distribution Code General Conditions Philippine Distribution Code 2016 Edition Significant Incident. An Event on the Distribution System or the System of any User that has a serious or widespread effect on the Distribution System and/or the System of the User. Significant Incident Notice. A notice issued by the Distribution Utility or any User if a Significant Incident has transpired on the Distribution System or the System of the User, as the case may be. Site. Refers to a substation or switchyard in the Grid, Distribution System or the User System where the Connection Point is situated. Small Power Utilities Group (SPUG). The functional unit of NPC created to pursue the missionary electrification function. Spot Market. Has the same meaning as the Wholesale Electricity Spot Market. Stability. The ability of the dynamic Components of the power system to return to a normal or stable operating point after being subjected to some form of change or disturbance. Standard Planning Data. The general data required by the Distribution Utility as part of the application for a Connection Agreement or Amended Connection Agreement. Start-Up. The process of bringing a Generating Unit from Shutdown to synchronous speed. Supplier. Any person or entity authorized by the ERC to sell, broker, market, or aggregate electricity to the End-Users. Supply of Electricity. The sale of electricity by a party other than a Generation Company or a Distribution Utility in the Franchise Area of a Distribution Utility using the wires of the Distribution Utility concerned. Sustained Interruption. Any Interruption not classified as a part of a momentary Event. That is, any interruption that lasts more than 5 minutes. Synchronized. The state when connected Generating Units and/or interconnected AC Systems operate at the same Frequency and where the phase angle displacements between their voltages vary about a stable operating point. System. Refers to the Grid or Distribution System or any User System. Also, a group of Components connected or associated in a fixed configuration to perform a specified function. System Average Interruption Duration Index (SAIDI). Indicates the total duration of Interruption for the average Customer during a predefined period of time. It is commonly measured in customer minutes or customer hours of interruption. System Average Interruption Frequency Index (SAIFI). Indicates how often the average Customer experiences a Sustained Interruption over a predefined period of time. System Loss. In a Distribution System, it is the difference between the electric energy delivered to the Distribution System and the Energy delivered to the End-Users and other entities connected to the System. System Operator. The party responsible for generation dispatch, the provision of Ancillary Services, and operation and control to en