WESM RULES Unofficial Copy October 2014 1
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7/25/2019 WESM RULES Unofficial Copy October 2014 1
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R.A. 9136
Electric Power Industry Reform Act of 2001
WHOLESALE ELECTRICITY SPOT MARKET
RULES
(As Amended)
This document incorportes the mendments to the !E"# Rules s ppro$ed ndpu%lished %y the &eprtment of Ener'y in $rious &eprtment (irculrs. The fore'oin'is not n officil copy of the mended !E"# Rules nd is circulted )*R RE)ERE+(E*) T,E P,I-IPPI+E E-E(TRI(IT #AR/ET (*RP*RATI*+ *+-. As such PhilippineElectricity #ret (orportion ssumes no li%ility with respect to use of the sme.
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FOREWORD
The !holesle Electricity "pot #ret !E"# Rules est%lishes the %sic rules
re4uirements nd procedures tht 'o$ern the opertion of the Philippine electricity
mret. The !E"# Rules identifies nd reco'ni5es nd sets the responsi%ilities of the
#ret *pertor "ystem *pertor !E"# Prticipnts nd the PE# ord. These
'roups shll comply with nd re %ound %y ll the pro$isions of the !E"# Rules. The
!E"# Rules re intended to %e complimentry with the 7rid (ode nd &istri%ution
(ode ll of which re ment to ensure the de$elopment of n pproprite e4uit%le
nd trnsprent electricity mret lon' with sfe reli%le nd efficient
opertion of the power system.
Repu%lic Act +o. 9136 lso nown s the 8Electric Power Industry Reform Act of 20018
Act mndtes the &eprtment of Ener'y &*E to est%lish the !E"# within one
1 yer from its effecti$ity. The Act lso mndtes the &*E ointly with the electric
power industry prticipnts to formulte the detiled rules for the !E"#.
The !E"# is the mret where trdin' of electricity will %e mde. It shll %e
'o$erned %y the Philippine Electricity #ret ord PE# ord. The PE# ord shll
pro$ide the policies nd 'uidelines of the !E"# contined in the Implementin' Rules
nd Re'ultions of the Act !E"# Rules nd such other rele$nt lws rules nd
re'ultions.
The #ret *pertor non:stoc non:profit or'ni5tion shll dminister the
opertion of the !E"# in ccordnce with the !E"# Rules. )or the first yer the
#ret *pertor;s functions shll %e pro$ided %y the Autonomous 7roup #ret*pertor A7#* under the dministrti$e super$ision of the +tionl Trnsmission
(orportion TRA+"(*. After the first yer the #ret *pertor shll %e n
independent entity. Therefter the dministrti$e super$ision of the TRA+"(* o$er
such entity shll cese.
The !E"# Rules is or'ni5ed into ele$en 11 (hpters. These re<
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(hpter 1. Introduction
(hpter 2. Re'istrtion
(hpter 3. The #ret
(hpter >. #eterin'
(hpter ?. #ret Informtion nd (onfidentility
(hpter 6. Inter$ention nd #ret "uspension
(hpter @. Enforcement nd &isputes
(hpter . Rules (hn'e Process
(hpter 9. Interprettion
(hpter 10. Trnsitory Pro$isions
(hpter 11. 7lossry
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WESM RULES
TABLE OF CONTENTS
Chape! Des"!#p#$n Pa%e
FOREWORD&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&'''iINTRODUCTION 1
' SCOPE OF CHAPTER 1' PURPOSE AND APPLICATION OF RULES 1
'' A*$+ he Ph#,#pp#nes Wh$,esa,e E,e"!#"#- Sp$ ma!.e R+,es 1'' P+!p$se $/ he WESM R+,es 1''0 The Re%+,a$!- F!ame1$!. 2''2 S"$pe $/ App,#"a#$n 3
''3 WESM O*4e"#5es 3'0 MARKET OPERATOR AND SYSTEM OPERATOR 3
'0' Resp$ns#*#,##es $/ he Ma!.e Ope!a$! 3'0' Ma!.e Ope!a$! Pe!/$!man"e ?'0'0 Resp$ns#*#,##es $/ he S-sem Ope!a$! 6
'2 6O7ERNANCE OF THE MARKET @'2' Ph#,#pp#ne E,e"!#"#- Ma!.e (PEM) B$a!d @'2' C$mp$s##$n $/ he PEM B$a!d @'2'0 App$#nmen $ he PEM B$a!d 11'2'2 7$#n% R#%hs 12'2'3 O*,#%a#$ns $/ he PEM B$a!d 13
'2'8 F$!ma#$n $/ C$mm#ees 1>'3 THE PHILIPPINES ELECTRICITY MARKET AUDITOR 1@
'3' App$#nmen $/ he PEM A+d#$! 1@'3' Resp$ns#*#,##es $/ he A+d#$! 1@(Amended as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99) 1@'3'0 Re5#e1 $/ WESM R+,es 1
'8 MARKET SUR7EILLANCE COMMITTEE 1'8' App$#nmen $ he Ma!.e S+!5e#,,an"e C$mm#ee 1'8' Resp$ns#*#,##es $/ he Ma!.e S+!5e#,,an"e C$mm#ee 1'8'0 Des#%n and P!$m+,%a#$n $/ Pena,#es 19
'; TECHNICAL COMMITTEE 20
';' App$#nmen $ he Te"hn#"a, C$mm#ee 20';' Resp$ns#*#,##es $/ he Te"hn#"a, C$mm#ee 20'< ENFORCEABILITY AND AMENDMENT OF THESE RULES 21
'<' En/$!"ea*#,#- 21'<' Chan%es $ he WESM R+,es 21
'= PUBLIC CONSULTATION PROCEDURES 21RE6ISTRATION 23
' SCOPE OF CHAPTER 23' 6ENERAL 23
'' S"$pe $/ App,#"a#$n 23'' Re%#s!a#$n 23
''0 Re%#s!a#$n #n M+,#p,e Cae%$!#es 2>''2 WESM mem*e!s 2>
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'0 CATE6ORIES OF WESM MEMBER 2>'0' 6ene!a#$n C$mpan- 2>'0' C+s$me! 26'0'0 T!ad#n% Pa!#"#pan 26'0'2 Ne1$!. Se!5#"e P!$5#de! 2
'0'3 An"#,,a!- Se!5#"es P!$5#de! 2'0'8 Mee!#n% Se!5#"es P!$5#de! 30'0'; S-sem $pe!a$! 30
'2 INDIRECT WESM MEMBERS 30'3 APPLICATIONS FOR RE6ISTRATION 30
'3' App,#"a#$n p!$"ess 30'3' P!e!e>+#s#es /$! app,#"ans 30'3'0 F+!he! #n/$!ma#$n $ assess app,#"a#$n 31'3'2 App!$5a, $/ app,#"a#$ns 31'3'3 N$#"e $/ app!$5a, $/ app,#"a#$n 32'3'8 N$#"e $/ n$n:app!$5a, $/ app,#"a#$n 32
'3'; Ma!.e Ope!a$! $ ma#na#n a ,#s 33'8 CEASIN6 TO BE A WESM MEMBER 33'8' N$#/-#n% he Ma!.e Ope!a$! 33'8' Dae $/ "essa#$n 33'8'0 N$#/-#n% a,, WESM mem*e!s33'8'2 Ma!.e Ope!a$! n$#/#"a#$n $/ "essa#$n 33
'; SUSPENSION 3>';' 6!$+nds /$! S+spens#$n 3>';' E//e" $/ a s+spens#$n n$#"e 3>
'< DERE6ISTRATION 3>'<' De!e%#s!a#$n $/ a T!ad#n% Pa!#"#pan 3>
'<' O*,#%a#$ns and ,#a*#,##es /$,,$1#n% de!e%#s!a#$n3>
'<'0 De!e%#s!a#$n p!$"ed+!e de5e,$pmen 3?'= INTENDIN6 WESM MEMBERS 3?
'=' Re%#s!a#$n as an Inend#n% WESM mem*e! 3?'=' App,#"a#$ns /$! !e%#s!a#$n 3?'='0 N$#"e $/ "essa#$n $/ !e%#s!a#$n 3?'='2 A"#5##es $/ Inend#n% WESM mem*e!s 3?'='3 R#%hs and $*,#%a#$ns $/ Inend#n% WESM mem*e!s 36
'9 MARKET FEES 36'9' Imp$s#n% Ma!.e Fees36'9' S!+"+!e and Le5e, $/ Ma!.e Fees 36'9'0 6+#d#n% P!#n"#p,es 36'9'2 C$mp$nens $/ Ma!.e Fees 3@'9'3 P+*,#"a#$n $/ Ma!.e Fees S!+"+!e 3@
' BUD6ET 3@'' S+*m#ss#$n $/ ann+a, saemens and $he! d$"+mens 3@
' FINANCIAL YEAR REPORT 3'' Ma!.e Ope!a$! $ p!epa!e !ep$! 3'' P!$5#d#n% "$p- $/ !ep$! 3
THE MARKET >00' SCOPE OF CHAPTER 0 >00' MARKET NETWORK MODEL? TRADIN6 NODES? AND PRICIN6@ONES >0
0'' Ma!.e Ne1$!. M$de, >1
0'' Ma!.e T!ad#n% N$des >20''0 C+s$me! P!#"#n% @$nes >3
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0'0 ANCILLARY SER7ICES >>0'0' In!$d+"#$n >>0'0' An"#,,a!- Se!5#"es C$n!a"#n% *- he S-sem $pe!a$! >?0'0'0 An"#,,a!- Se!5#"es A%!eemens >?0'0'2 Rese!5e Ma!.e A!!an%emens >@
0'0'3 An"#,,a!- Se!5#"es C$s Re"$5e!- >@0'0'8 P!$5#s#$n $/ An"#,,a!- Se!5#"es >90'0'; App!$5a,? Pe!#$d#" Re5#e1 and E5a,+a#$n $/ An"#,,a!- Se!5#"e
A!!an%emens >90'2 MARKET TRADIN6 INTER7AL AND TIMETABLE ?0
0'2' T!ad#n% Ine!5a,s ?00'2' T#mea*,e ?1
0'3 SUBMISSION OF OFFERS? BIDS? AND DATA ?10'3' C$mm+n#"a#$ns $/ O//e!s and B#ds?10'3' Ne1$!. Se!5#"e P!$5#de! Daa ?10'3'0 S-sem $pe!a$! Daa?2
0'3'2 L$ad F$!e"as#n% ?>0'3'3 6ene!a#$n O//e!s and Daa ??0'3'8 C+s$me! Demand B#ds ??0'3'; 6ene!a#$n C$mpan- Rese!5e O//e!s ?60'3'< C+s$me! Rese!5e O//e!s ?@0'3'= Re5#s#$n $/ Sand#n% O//e!sB#ds ?@0'3'9 In##a, se#n% $/ Ma!.e O//e!sB#ds?0'3' Re5#s#$n $/ Ma!.e O//e!sB#ds ?0'3' C$n/#!ma#$n $/ Re"e#p $/ 7a,#d O//e!s and B#ds 600'3'0 O5e!:!#d#n% C$ns!a#ns 60
0'8 MARKET DISPATCH OPTIMI@ATION MODEL 62
0'8' M$de, De/#n##$n62
0'8' C$ns!a#n 7#$,a#$n C$e//#"#ens 6?0'8'0 Ine!p!ea#$n $/ M$de, O+p+s 660'8'2 M$de,#n% App!$#ma#$ns 660'8'3 M$de, De5e,$pmen 6@0'8'8 Ma!.e Se,emen 6@
0'; MARKET PROECTIONS 6@0';' Wee. Ahead P!$4e"#$ns 60';' Da- Ahead P!$4e"#$ns 60';'0 P!epa!a#$n $/ Ma!.e P!$4e"#$ns 60';'2 P+*,#shed In/$!ma#$n @0
0'< SCHEDULIN6 AND DISPATCH IMPLEMENTATION @10'<' Resp$ns#*#,##es $/ he Ma!.e Ope!a$! @10'<' Resp$ns#*#,##es $/ he S-sem $pe!a$! @20'<'0 C$mm+n#"a#$n $/ a!%e ,$ad#n% ,e5e,s @30'<'2 D#spa"hed T!ad#n% Pa!#"#pans @30'<'3 Ramp Rae $/ T!ad#n% Pa!#"#pan @>0'<'8 De5#a#$ns /!$m he Ramp Rae @>0'<'; D#spa"h T$,e!an"es @>0'<'< San"#$ns $/ T!ad#n% Pa!#"#pans @?
0'= TREATMENT OF LOAD SHEDDIN6? ECESS 6ENERATION AND RESER7E 7IOLATION@?
0'=' D#!e"#$n $ C$nd+" L$ad Shedd#n% @?
0'=' Ma!.e Ope!a$! Ad5#"e $n L$ad Shedd#n% @?0'='0 S-sem $pe!a$! Resp$ns#*#,#- $ In##ae L$ad Shedd#n% @6
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0'='2 Ad5#s#n% $/ L$ad Shedd#n% @60'='3 Re5#s#n% F$!e"ass @60'='8 P!#"#n% E!!$! N$#"e @@0'='; Mana%emen $/ L$ad Shedd#n% @@0'='< Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n @@
0'='= Mana%emen P!$"ed+!es /$! Rese!5e 7#$,a#$n @0'9 DETERMINATION OF MARKET PRICES @9
0'9' Ca,"+,a#$n $/ P!#"es @90'9' Dee!m#na#$n $/ E:Ane N$da, Ene!%- P!#"e @90'9'0 Dee!m#na#$n $/ E:Ane @$na, Ene!%- P!#"es @90'9'2 P+*,#sh#n% E:Ane P!#"es A""$!d#n% $ T#mea*,e @90'9'3 P!#"#n% E!!$! N$#"e 00'9'8 Dee!m#na#$n $/ E:P$s N$da, Ene!%- P!#"e 00'9'; P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e 10'9'< Dee!m#na#$n $/ E:P$s @$na, Ene!%- P!#"es 20'9'= Dee!m#na#$n $/ E:Ane And E:P$s Ene!%- Se,emen P!#"es 2
0'9'9Dee!m#na#$n $/ @$na, Rese!5e P!#"e 30' MARKET INFORMATION 30'' Ma!.e In/$!ma#$n 30'' A""ess $ In/$!ma#$n >
0' FINANCIAL TRANSMISSION RI6HTS >0'' Ma!.e /$! T!ansm#ss#$n R#%hs >0'' P+*,#"a#$n $/ Rena, In/$!ma#$n >0''0 F+!he! T!ansm#ss#$n R#%hs ?0''2 Mae!s $ C$ns#de! #n Assessmen ?0''3 Iss+#n% T!ansm#ss#$n R#%hs ?0''8 A""$+n#n% /$! Ne In"$me 6
0'0 SETTLEMENT UANTITIES AND AMOUNTS6
0'0' S+*m#ss#$n $/ B#,ae!a, C$n!a" Daa 60'0' S+*m#ss#$n $/ T!ansm#ss#$n R#%h Daa @0'0'0 Daa /$! B#,ae!a, C$n!a"s and T!ansm#ss#$n R#%hs 0'0'2 @$na, Rese!5e Se,emen +an#-0'0'3 De/#n#n% he 6!$ss E:Ane Ene!%- Se,emen +an#- /$! Ma!.e T!ad#n%
N$des 0'0'8 De/#n#n% he 6!$ss E:P$s Ene!%- Se,emen +an#- /$! Ma!.e T!ad#n%
N$des 900'0'; Ene!%- Se,emen +an#- Ad4+smens /$! B#,ae!a, 910'0'< Dee!m#n#n% he E Ane Ene!%- T!ad#n% Am$+n910'0'= Dee!m#n#n% he E P$s Ene!%- T!ad#n% Am$+n 910'0'9 Dee!m#n#n% he Rese!5e T!ad#n% Am$+n 920'0' Dee!m#n#n% he Rese!5e C$s Re"$5e!- Cha!%e920'0' Ca,"+,a#$n $/ L#ne Rena, T!ad#n% Am$+ns 920'0'0
Dee!m#n#n% he T!ansm#ss#$n R#%hs T!ad#n% Am$+n 930'0'2 Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 930'0'8 T!eamen $/ Rema#n#n% Se,emen S+!p,+s 9?0'0'; Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 1#h B#,ae!a, C$n!a"s 9@
0'2 SETTLEMENT PROCESS 90'2' Se,emens Mana%emen *- Ma!.e Ope!a$! 90'2' E,e"!$n#" F+nds T!ans/e! 990'2'0 Pa-men $/ Se,emen Am$+n 99
0'2'2 P!e,#m#na!- Saemens 990'2'3 F#na, Saemens 100
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0'2'8 Pa-men *- T!ad#n% Pa!#"#pans 1010'2'; Pa-men $ T!ad#n% Pa!#"#pans 1010'2'< D#sp+es 1020'2'= Se,emen Re5#s#$ns 1030'2'9 Pa-men $/ Ad4+smens 10>
0'2' Pa-men De/a+, P!$"ed+!e 10?0'2' Ine!es $n O5e!d+e Am$+ns 10
0'3 PRUDENTIAL REUIREMENTS 100'3' P+!p$se100'3' P!$5#s#$n $/ Se"+!#-100'3'0 F$!m $/ Se"+!#- 1100'3'2 Am$+n $/ Se"+!#- 1110'3'3 Rep,a"emen Se"+!#- 1130'3'8 D!a1d$1n $/ Se"+!#- 11>0'3'; Re/+nd $/ Se"+!#- 11?0'3'< S+spens#$n $/ a WESM mem*e! 11?
0'3'= T!ad#n% L#m#s 11@0'3'9 M$n#$!#n% 110'3' Ma!%#n Ca,,s 1190'3' C$n/#den#a,#- 120
METERIN6 1212' SCOPE OF CHAPTER 2 1212' APPLICATION OF CHAPTER 1212'0 OBLI6ATIONS OF TRADIN6 PARTICIPANTS 121
2'0' O*,#%a#$ns 1212'0' E,e"#$n $/ a Mee!#n% Se!5#"es P!$5#de! *- a T!ad#n% Pa!#"#pan 1222'0'0 Mee!#n% Se!5#"es P!$5#de! O*,#%a#$ns 123
2'2 RE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS123
2'3 METERIN6 INSTALLATION 12>2'3' Mee!#n% Insa,,a#$n C$mp$nens 12>2'3' L$"a#$n $/ Mee!#n% P$#n 12?2'3'0 Mee! A""+!a"- 12?2'3'2 Use $/ Mee!s 12?2'3'3 Se"+!#- $/ Mee!#n% E>+#pmen 1262'3'8 Se"+!#- $/ Mee!#n% Daa He,d #n a Mee!#n% Insa,,a#$n 12@2'3'; Pe!/$!man"e $/ Mee!#n% Insa,,a#$ns 12@2'3'< Mee! T#me 12@
2'8 METERIN6 DATA 122'8' Chan%es $ Mee!#n% Daa 122'8' Daa T!ans/e! and C$,,e"#$n12
2'; DERE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS 1292';' Se,emen 1#h #na""+!ae mee!#n% #n/$!ma#$n 1292';' San"#$ns /$! #na""+!ae mee!#n% #n/$!ma#$n 1292';'0 N$#"e /$,,$1#n% mae!#a, *!ea"h $/ WESM R+,es 1292';'2 De!e%#s!a#$n /$,,$1#n% +neh#"a, a" 1292';'3 E//e" $/ de!e%#s!a#$n /$! +neh#"a, a" 130
2'< DATABASES 1302'<' Insa,,a#$n Daa*ases1302'<' Mee!#n% Daa*ase 1302'<'0 R#%hs $/ A""ess $ Mee!#n% Daa 131
2'<'2 C$n/#den#a,#-1312'<'3 Pa-men /$! A""ess $ Mee!#n% Daa 131
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2'= DATA 7ALIDATION AND SUBSTITUTION 1322'9 PROCESSES AND RE7IEW 1322' TRANSITORY PRO7ISION 132
MARKET INFORMATION AND CONFIDENTIALITY 1333' SCOPE OF CHAPTER 3 133
3' MARKET INFORMATION AND CONFIDENTIALITY 1333'' P!$5#s#$n $/ In/$!ma#$n 1333'' S-sems and P!$"ed+!es 13>3''0 Pa!#"#pan Daa 13?3''2 P,ann#n% and Des#%n Daa 13?3''3 In/$!ma#$n Re"$!ds 13?3''8 Ma!.e A+d# 13?
3'0 CONFIDENTIALITY 13@3'0' C$n/#den#a,#-13@3'0' E"ep#$ns 13@3'0'2 Indemn#- $ he Ma!.e Ope!a$! 1>0
3'0'3 S+!5#5a, 1>03'0'8 The Ma!.e Ope!a$! In/$!ma#$n 1>03'0'; T#mea*,e 1>1
INTER7ENTION AND MARKET SUSPENSION 1>28' SCOPE OF CHAPTER 8 1>28' O7ER7IEW 1>2
8'' P!epa!a#$n and Resp$nses 1>28'' Eemp#$n /!$m L#a*#,#- d+e $ Ma!.e S+spens#$n and Ine!5en#$n1>38''0 Adm#n#se!ed P!#"e Cap 1>>
8'0 EMER6ENCIES 1>>8'0' Eme!%en"- 1>>
8'0' Eme!%en"- P!$"ed+!es1>6
8'2 EMER6ENCY PLANNIN6 BY WESM PARTICIPANTS 1>8'2' WESM Pa!#"#pan Eme!%en"- C$na"s 1>8'2' WESM Pa!#"#pan P!$"ed+!es 1>8'2'0 Eme!%en"- P!$"ed+!es A1a!eness 1>
8'3 RESPONSE TO AN EMER6ENCY 1>98'3' De",a!a#$ns and D#!e"#$ns #n an Eme!%en"- 1>98'3' Ine!5en#$n D+e $ Eme!%en"- 1?1
8'8 SYSTEM SECURITY 1?18'8' S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes 1?18'8' N$#"e $/ Th!ea $ S-sem Se"+!#- 1?28'8'0 Resp$nse $ S-sem Se"+!#- Th!ea 1?38'8'2 Ma!.e Resp$nse $ Th!ea $ S-sem Se"+!#- 1?38'8'3 Ine!5en#$n D+e $ S-sem Se"+!#- Th!ea 1?>
8'; FORCE MAEURE 1??8';' F$!"e ma4e+!e e5en1??8';' F$!"e ma4e+!e e5en 1??8';'0 N$#/#"a#$n 1?68';'2 O*,#%a#$ns $/ WESM Pa!#"#pans 1?6
8'< BUSINESS CONTINUITY PLAN AND DISASTER RECO7ERY PROCEDURES OF THEMARKET OPERATOR 1?6
8'<' De5e,$pmen $/ B+s#ness C$n#n+#- and D#sase! Re"$5e!- P!$"ed+!es1?6
8'<' S#m+,a#$ns 1?@ 8'= MARKET SUSPENSION 1?
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8'=' C$nd##$ns /$! S+spens#$n $/ he Ma!.e 1?8'=' De",a!a#$n $/ Ma!.e S+spens#$n 1?8'='0 E//e" $/ Ma!.e S+spens#$n 1?8'='2 Ine!5en#$n Rep$! 1?98'='3 Ma!.e S+spens#$n Rep$! 160
ENFORCEMENT AND DISPUTES 161;' SCOPE OF CHAPTER ; 161;' ENFORCEMENT 161
;'' C$mp,#an"e 161;'' B!ea"hes $/ he WESM R+,es *- WESM mem*e!s' 162;''0 A,,e%ed B!ea"hes $/ he WESM R+,es *- he Ma!.e Ope!a$! $! S-sem
Ope!a$! 16>;''2 In5es#%a#$ns 16?;''3 San"#$ns 16@;''8 A"#$ns *- A%ens? Emp,$-ees $! O//#"e!s $/ Pa!#"#pans 16@;''; P+*,#"a#$n 16@
;''< App$#nmen $/ an En/$!"emen and C$mp,#an"e O//#"e! 16@;''= Des#%na#$n $/ a C$mp,#an"e O//#"e! /$! WESM Mem*e!? Ma!.e Ope!a$! andS-sem Ope!a$! 16@
;'0 DISPUTE RESOLUTION 169;'0' App,#"a#$n and 6+#d#n% P!#n"#p,es 169;'0' App$#nmen $/ D#sp+e Res$,+#$n Adm#n#s!a$! (DRA) 1@1;'0'0 D#sp+e Mana%emen P!$$"$, 1@2;'0'2 A""!ed#a#$n and Se,e"#$n $/ Med#a$!s and A!*#!a$!s 1@3;'0'3 D#sp+e Res$,+#$n P!$"ess 1@>;'0'8 D#sp+es A*$+ Pa-men 1@?;'0'; D#sp+es A//e"#n% F#na, Saemens 1@6
;'0'< Le%a, Rep!esena#$n1@6
;'0'= C$s $/ D#sp+e Res$,+#$n 1@6;'0'9 E//e" $/ Res$,+#$n 1@@;'0' Re"$!d#n% and P+*,#"a#$n 1@@;'0' L#m#a#$n $/ L#a*#,#-1@
RULE CHAN6E 1@9<' SCOPE OF CHAPTER < 1@9<' RULE CHAN6E COMMITTEE 1@9
<'' Esa*,#shmen $/ R+,e Chan%e C$mm#ee 1@9<'' C$mp$s##$n $/ R+,e Chan%e C$mm#ee 1@9<''0 Mem*e!sh#p !e>+#!emens : PEM B$a!d 1@9<''2 Te!m#na#$n 10<''3 App$#nmen e!m#na#$n 10<''8 Res#%na#$n 10<''; C$nd+" $/ mee#n%s 10<''< Ad5#"e and ass#san"e 10<''= R+,es Chan%e C,ass#/#"a#$n and P!$"ed+!es 11
<'0 REFERRAL OF MATTERS TO THE RULE CHAN6E COMMITTEE 11<'0' R+,e "han%e p!$p$sa,s 11<'0' F$!m $/ s+*m#ss#$n 11<'0'0 PEM B$a!d $*,#%a#$ns 12
<'2 CONSIDERATION OF PROPOSED RULES CHAN6E BY THE RULES CHAN6ECOMMITTEE 12
<'2' Assessmen $/ p!$p$sed R+,e "han%e 12<'2' D#s"!e#$ns 1hen assessmen p!$p$sed R+,e "han%e 12
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<'2'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a 13<'2'2 N$#/#"a#$n /$,,$1#n% sa#s/-#n% "!#e!#a 13<'2'3 S+*m#ss#$ns !e%a!d#n% p!$p$sed R+,e "han%e 13<'2'8 C$ns#de!a#$n $/ s+*m#ss#$ns 13<'2'; App!$5a, $/ p!$p$sed R+,e "han%e 1>
<'3 CONSIDERATION OF PROPOSED RULES CHAN6ES BY THE PEM BOARD 1><'3' PEM B$a!d assessmen $/ p!$p$sed R+,e "han%e 1><'3' PEM B$a!d d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e 1><'3'0 N$#/#"a#$n /$,,$1#n% +ns+""ess/+, p!$p$sa, 1><'3'2 App!$5#n% and s+*m##n% p!$p$sed R+,e "han%e /$! app!$5a, 1?
<'8 APPRO7AL OF PROPOSED RULE CHAN6ES BY THE DOE 1?<'8' DOE assessmen $/ p!$p$sed R+,e "han%e 1?<'8' DOE d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e 16<'8'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a 16<'8'2 App!$5a, $/ p!$p$sed R+,e "han%e 16<'8'3 Rep$! *- he R+,es Chan%e C$mm#ee 1@
<'; RULES CHAN6E COMMITTEE INDEMNITY 1INTERPRETATION 19=' 6ENERAL 19=' TIME AND DATES 190='0 ASSI6NMENT 191='2 WAI7ER 191='3 PAYMENT 191
='3' Meh$d $/ pa-men 191='3' Ine!es !aes 191
='8 NOTICES 192='8' P!$pe!,- %#5#n% n$#"es192
='8' N$#"es !eaed as *e#n% %#5en192
='8'0 F$!m $/ n$#"e193='8'2 Ca,"+,a#n% a spe"#/#ed pe!#$d /$! n$#"es 193='8'3 6ene!a, 19>
='; RETENTION OF RECORDS AND DOCUMENTS 19>='< SE7ERABILITY 19>
TRANSITORY PRO7ISIONS 19?9' PURPOSE AND SCOPE 19?
9'' P+!p$se19?9'' S"$pe $/ App,#"a#$n 19?
9' MARKET TRANSITION 19?9'' Esa*,#shmen $/ he Wh$,esa,e E,e"!#"#- Sp$ ma!.e19?9'' The Ma!.e Ope!a$! 19?9''0 The 6$5e!n#n% B$a!d 1969''2 Mem*e!sh#p $ he WESM 1969''3 P!#"e Dee!m#na#$n Meh$d$,$%- 19@
9'0 PRO7ISIONS FOR THE INTERIM WESM 19@9'0' Sp$ ma!.e T!ad#n% 19@9'0' An"#,,a!- Se!5#"es 199'0'0 Ma!.e D#spa"h Op#m#a#$n M$de, 199'0'2 Mee!#n% 19
9'2 ACTIONS TO BE TAKEN PRIOR TO SPOT MARKET COMMENCEMENT DATE 1999'2' S#%n#/#"an 7a!#a#$ns 199
9'2'Ma!.e Ope!a$! Pe!/$!man"e 1999'2'0F$!m+,a#$n $/ PEM B$a!d B-:,a1 200
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9'2'2Dee!m#na#$n $/ Ma!.e Ne1$!. M$de, 2009'2'3Dee!m#na#$n $/ Ma!.e T!ad#n% N$des 2019'2'8 Dee!m#na#$n $/ C+s$me! P!#"#n% @$nes 2019'2';An"#,,a!- Se!5#"es 2029'2'<T#mea*,e 20>
9'2'= L$ad F$!e"as#n% 20>9'2'9Ma!.e D#spa"h Op#m#a#$n M$de, 20>9'2' C$ns!a#n 7#$,a#$n C$e//#"#ens 20?9'2'D#spa"h T$,e!an"es 20?9'2'0 Mana%emen P!$"ed+!es D+!#n% L$ad Shedd#n% 2069'2'2 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n2069'2'3 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n2069'2'8 P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e 2069'2'; Eme!%en"- P!$"ed+!es 20@9'2'<Ha!m$n#a#$n 20@9'2'= The Te"hn#"a, W$!.#n% 6!$+p (TW6) 20@
6LOSSARY 209 APPENDICES 231APPENDI A 231APPENDICES TO CHAPTER 0 231Append# A'In/$!ma#$n $ *e S+pp,#ed 1#h O//e!s $ S+pp,- and $ B+- E,e"!#"#-
231A' 6ene!a#$n O//e!231A' Rese!5e O//e!s 231A'0 Demand B#ds 232
Append# A' In/$!ma#$n $ *e S+pp,#ed *- Ne1$!. Se!5#"e P!$5#de! 233APPENDI B 23>
APPENDICES TO CHAPTER 223>
Append# B' Mee!#n% Re%#se! 23>B' 6ene!a, 23>B' Mee!#n% !e%#se! #n/$!ma#$n 23>
Append# B' Insa,,a#$n 23?APPENDI C 23@APPENDICES TO CHAPTER ; 23@
Append# C : C,ass#/#"a#$n $/ R+,es 23@
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CHAPTER
INTRODUCTION
' SCOPE OF CHAPTER
Purpose of the WESM RulesC
% Prties %ound %y the WESM RulesC
c Responsi%ilities of the Market Operator
d Responsi%ilities of the System Operator
e (omposition nd functions of the PEM Board C
f Responsi%ilities of the PEM Auditor
' Responsi%ilities of the Market Surveillance CommitteeC
h Responsi%ilities of the Technicl (ommitteeC nd
i Pu%lic consulttion procedures.
' PURPOSE AND APPLICATION OF RULES
'' A*$+ he Ph#,#pp#nes Wh$,esa,e E,e"!#"#- Sp$ ma!.e R+,es
1.2.1.1 This document shll %e nown s the !holesle Electricity
Spot market Rules ("WESM Rules").
1.2.1.2 )ormulted ointly with electric power industry
prticipntsC
1.2.1.3 Promul'ted %y the OE C
1.2.1.> In the WESM Rules words nd phrses tht pper in
itlics re defined in the 'lossry in chpter 11.
1.2.1.? The WESM Rules shll %e interpreted in ccordnce with
the pro$isions of chpter 9 o%ecti$es of the Act ndother pro$isions of lw.
'' P+!p$se $/ he WESM R+,es
The WESM Rules re promul'ted to implement the pro$isions of the
Act its Implementin' Rules nd Re'ultions nd other relted lws s
well s to<
Promote competitionC
% Pro$ide n efficient competiti$e trnsprent nd reli%le spot
market!
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c Ensure efficient opertion of the WESM %y the Market Operator in
coordintion with the System Operators wy which<
1 #inimi5es d$erse impcts on system security C
2 Encour'es mret prticiptionC nd
3 En%les ccess to the spot market.
d Pro$ide cost:effecti$e frmewor for resolution of disputes
mon' WESM Participants nd %etween WESM Participants nd
the Market Operator
e Pro$ide for de4ute snctions in cses of %reches of the WESM
Rules
f Pro$ide efficient trnsprent nd fir processes for mendin' the
WESM Rules
' Pro$ide for the terms nd conditions to which entities my %e
uthori5ed to prticipte in the WESMC
h Pro$ide the uthority nd 'o$ernnce frmewor of the PEM Board C
nd
i Encour'e the use of en$ironment:friendly renew%le sources of
ener'y in ccordnce with the Act.
''0 The Re%+,a$!- F!ame1$!.
1.2.3.1 The Act mndtes the &eprtment of Ener'y OE to
promul'te the detiled rules for the WESM which it shll
formulte ointly with the Electric Power Industry
Prticipnts.
1.2.3.2 To ensure 'reter supply nd rtionl pricin' of
electricity the Act pro$ides the Ener'y Re'ultory
(ommission (ERC) the uthority to enforce the rules nd
re'ultions 'o$ernin' the opertions of the electricity spot
market nd the cti$ities of the spot Market Operator nd
other prticipnts in the spot market.
1.2.3.3 The WESM Rules form prt of the re'ultory frmewor
which is pplic%le to the owners opertors nd users of
the po#er system under the Act.
1.2.3.> *n mtters pertinin' to finncil nd technicl stndrds
set for $eneration Companies %RA&SCO! istri'utiontilities nd "uppliers inconsistencies %etween the
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WESM Rules the $rid Code nd the istri'ution Code
my %e referred to the ERC for resolution only.
''2 S"$pe $/ App,#"a#$n
Pursunt to "ection 30 of the Act ll WESM Participants shll comply
with the WESM Rules nd pplic%le lws or re'ultions of the
Philippines.
''3 WESM O*4e"#5es
The o%ecti$es of the spot market re to est%lish competiti$e
efficient trnsprent nd reli%le mret for electricity where<
A le$el plyin' field eBists mon' WESM ParticipantsC
%Trdin' of electricity is fcilitted mon' !E"# Prticipnts within
the spot mretC
c Third prties re 'rnted ccess to the power system in
ccordnce with the Act
d Prices re 'o$erned s fr s prctic%le %y commercil nd
mret forcesC nd
e Efficiency is encour'ed.
'0 MARKET OPERATOR AND SYSTEM OPERATOR '0' Resp$ns#*#,##es $/ he Ma!.e Ope!a$!
1.3.1.1 The Market Operator shll 'enerlly nd non:restricti$ely
h$e the followin' functions nd responsi%ilities<
Administer the opertion of the WESM in
ccordnce with the WESM RulesC
% Allocte resources to en%le it to operte nd
dminister the WESM on non:profit %sisC
c &etermine the disptch schedule of ll
fcilities in ccordnce with the WESM Rules. "uch
schedule shll %e su%mitted to the System
Operator .
d #onitor dily trdin' cti$ities in the mret.
e *$ersee trnsction %illin' nd settlement
proceduresC nd
f #intin nd pu'lis re'ister of ll WESMParticipants nd updte nd pu%lish the re'ister
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whene$er person or entity %ecomes or ceses to
%e WESM Participant.
1.3.1.2 In performin' cluse 1.3.1.1 d te Market Operator
shll<
&etermine whether or not such trdin' is performed
in ccordnce with the WESM RulesC
% Identify ny si'nificnt $ritions in nd %etween
tradin* intervalsC nd
c Identify ny pprent or suspected incidents of
anti+ competitive %eh$ior %y ny WESM Mem'er .
1.3.1.3 The Market Operator shll in consulttion with
WESM Participants! de$elop 'uidelines s to wht
constitutes si'nificnt $rition.
1.3.1.> If the Market Operator identifies ny si'nificnt $ritions
the Market Operator shll prepre nd pu'lis report
eBplinin' the identified si'nificnt $ritions within ten
'usiness days from the co'ni5nce thereof.
1.3.1.? The Market Operator shll pro$ide printed copy of the
completed report referred to in cluse 1.3.1.> to<
The OE nd the ERCC
% The PEM Board C nd
c WESM Mem'ers nd interested entities on re4uest.
1.3.1.6 !here the WESM Rules re4uire the Market Operator to
de$elop procedures processes or systems the Market
Operator shll do so fter tin' into considertion the
liely costs to WESM Participants of complyin' with those
procedures or processes nd of o%tinin' instllin' or
doptin' those systems s the cse my %e nd consistent
with the purpose set forth in cluse 1.2.2the Market
Operator my recommend chn'es to these
procedures in ccordnce with the Rule (hn'e process set
out in (hpter .
1.3.1.@ The Market Operator shll<
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(omply with ech of the re4uirements nd
o%li'tions imposed on it under the WESM Rules
$rid Code nd other pplic%le lws or re'ultionsC
% Implement the trnsitory pro$ision specified in
(hpter 10C
c Perform those ctions tht re re4uired to %e ten
prior to the spot market commencement date s
specified in the WESM Rules nd cluse 10.> hereofC
nd
d &e$elop pproprite cost reco$ery processes to
co$er its li%ilities in the e$ent of dm'e or inury
which my %e cused %y its cts or omissions in the
fithful performnce of its functions.
1.3.1. The Market Operator shll ensure tht the dispatc
scedules comply with ny constrints notified %y the
System Operator in ccordnce with cluse 6.6.1.
'0' Ma!.e Ope!a$! Pe!/$!man"e
1.3.2.1 In eBercisin' its discretions nd performin' its o%li'tions
under the WESM Rules the Market Operator shll<
Act in ccordnce with ny stndrd of
performnce pro$ided for %y ny sttute re'ultion
or autori,ation condition to which the Market
Operator is su%ectC
% Act in reson%le nd prudent mnnerC
c Act in 'ood fithC
d Te into considertion ct consistently with nd
use its reson%le ende$ors to contri%ute towrds
the chie$ement of the !E"# o%ecti$esC nd
e Ensure n udit tril of documenttion tht is fully
de4ute to su%stntite nd reconstruct ll
rele$nt ctions performed.
1.3.2.2 (luse 1.3.2.1 does not pre$ent the Market Operator
from performin' ny o%li'tion under the WESM Rules.
1.3.2.3 The PE# ord shll de$elop performnce stndrds whichmonitor nd pro$ide n indiction of the Market
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Operator-s performnce with respect to<(As amended *-
DOE DC N$' 99:90:9992 daed Ma!"h 99)
The Market Operator-s responsi%ilities under the
Act its Implementin' Rules nd Re'ultions IRR
the WESM Rules the Philippine 7rid (ode the 7rid
(ode nd ll other pplic%le lws rules nd
re'ultionsC(As amended *- DOE DC N$' 99:90:
9992 daed Ma!"h 99)
% The chie$ement of the o%ecti$es of the Act nd
the !E"#C nd (As amended *- DOE DC N$' 99:
90:9992 daed Ma!"h 99)
c The stndrds %y which the Market Operator hs
%een selected in ccordnce with terms of
reference ndDor the contrct of its selection s n
Independent #ret *pertor. (Added as pe! DOE
DC' N$' 99:90:9992 daed Ma!"h 99)
E$ery yer the PE# ord shll pu%lish #ret *pertor
Performnce Report in ccordnce with herein cluse.
(Added as pe! DOE DC' N$' 99:90:9992 daed
Ma!"h 99)
The #ret *pertors performnce stndrds shll %e
re$iewed nd ppro$ed %y the &*E. (Added as pe! DOE
DC' N$' 99:90:9992 daed Ma!"h 99)
'0'0 Resp$ns#*#,##es $/ he S-sem Ope!a$!
=nder these Rules the System Operator shll h$e the followin'
functions nd responsi%ilities<
e responsi%le for nd operte the po#er system in ccordnce
with the WESM Rules the $rid Code nd ny instruction issued %y
the Market Operator or the ERC.
% Pro$ide central dispatc to ll 'enertion fcilities nd lods
connected directly or indirectly to the trnsmission system in
ccordnce with the dispatc scedule su%mitted %y the Market
Operator.
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c (ontri%ute towrds the de$elopment of procedures processes or
systems or to ssist with ny spect of the opertion of the spot
market! in coordintion with the Market Operator .
d Implement the trnsitory pro$isions specified in (hpter 10C nd
e Perform those ctions tht re re4uired to %e ten prior to the
spot market commencement date s specified in the WESM Rules
nd cluse 10.>.
'2 6O7ERNANCE OF THE MARKET
The WESM 'o$ernnce is the process %y which decisions re mde nd
implemented within the mret to ensure ttinment of the !E"# o%ecti$es
under cluse 1.2.?.
'2' Ph#,#pp#ne E,e"!#"#- Ma!.e (PEM) B$a!d
1.>.1.1 The WESM shll %e 'o$erned nd its powers nd
functions eBercised %y the PEM Board .
1.>.1.2 In ddition to the powers of corportion under the
(orportion (ode nd those stted herein the PEM Board
shll h$e ll powers necessry con$enient nd incidentl
to the performnce of its functions nd responsi%ilities inccordnce with the WESM Rules.
1.>.1.3 In performin' its functions the PEM Board shll ct in
reson%le ethicl nd prudent mnner which fcilittes
n efficient competiti$e trnsprent nd reli%le spot
market nd is consistent with the WESM o%ecti$es.
1.>.1.> The PEM Board my dele'te ny of its functions
o%li'tions nd powers to committee or other entity in
circumstnces when it is reson%le t its ud'ment to
do so.
1.>.1.? The PEM Board shll conduct its %usiness cti$ity in ccordnce
with its Articles nd y:lws nd other pplic%le
lws rules or re'ultions.
'2' C$mp$s##$n $/ he PEM B$a!d
1.>.2.1 (omposition of the PEM Board shll %e in ccordnce with
the followin' criteri<
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Ech sectors of the electric power industry shll
%e represented in the PEM Board C
% The num%er of representti$es of ech sector of the
Philippine electric power industry should %e such
tht no one sector of the industry cn dominte
proceedin's or decision:min' %y the PEM Board C
nd %e selected in such wy tht dedlocs in
decision:min' processes should %e $oidedC
c There should %e sufficient independent directors
ppointed to the PEM Board to %lnce the num%er
of directors representin' the Philippines electric
power industryC nd
d e set out in detil in cluse 1.>.2.> so s to reflect
nd %e consistent with the criteri stted herein.
1.>.2.2 If t ny time the structure or si5e of the Philippine
electric power industry or ny sector within it chn'es so
tht the detiled composition of the PEM Board s set out
in cluse 1.>.2.> is no lon'er reflecti$e of or consistent
with cluse 1.>.2.1 cluse 1.>.2.> shll %e mended in
ccordnce with the Rules chn'e process in chpter nd
conse4uentil chn'es to the PEM Board shll %e mde s
soon s prctic%le so tht the PEM Board reflects nd is
consistent with the principles set out in cluse 1.>.2.1.
1.>.2.3 )or the purposes of this cluse 1.>.2 the electric power
industry is comprised of the followin' sectors $i5.<
&istri%utionC
% 7enertionC
c TrnsmissionC
d "upply sle nd purchse %y entities other thn those
which underte cti$ities in the distri%ution
'enertion nd trnsmission sectors.
1.>.2.> The PEM Board shll consist of<
*ne 1 &irector representin' the Market Operator
% *ne 1 &irector representin' the +tionlTrnsmission (ompny(%RA&SCO)
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c )our > irectors who re nominted %y WESM
mem'er s re'istered under cluse 2.3.> s
istri'ution tilities pro$ided tht<
1 Two 2 of those irectors re
representti$es of nd nominted %y Electric
CooperativesC nd
2 Two 2 of those irectors re
representti$es of nd nominted %y
istri'ution tilities which re not Electric
CooperativesC
d *ne 1 irector who is representti$e of nd
nominted %y Customers includin' %ut not limited
to "uppliersC
e )our > &irectors who re representti$es of nd
nominted %y 7enertion (ompnies re'istered
under cluse 2.3.1C
f )our > irectors who re<
1 Independent of the Philippines electric
power industry nd the 7o$ernmentC
2 +ot eli'i%le to %e ppointed s
representti$e under cluses1.>.2.3 %
c or dC nd
3 +ominted %y WESM mem'er sC
(*) A (hirperson who is one of the four independent
&irectors of the PEM Board nd who is elected %y
mority of ll mem%ers of the PEM Board . The
first (hirperson of the PEM Board howe$er shll
%e the OE "ecretry in ccordnce with the
Implementin' Rules nd Re'ultions of the Act.
All of the %o$e representti$es shll formlly %e
ppointed in ccordnce with cluse 1.>.3.
1.>.2.? A irector of the PEM Board my only ser$e on the PEM
Board t ny point in time s representti$e of one
cte'ory of representti$e under cluse 1.>.2.>.
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1.>.2.6 A compny firm or %usiness which is represented on the
PEM Board Fn one cte'ory under cluse 1.>.2.> my not
%e represented %y n indi$idul in ny other cte'ory
under cluse 1.>.2.> re'rdless of whether the compny
firm or %usiness hs interests in more thn one sector of
the Philippines electricity industry.
1.>.2.@ )or the purposes of this cluse 1.>.2 person is deemed
to %e independent of the Philippine electric power
industry if tht person<
Is not director officer employee contrctor
'ent mn'er or shreholder of WESM mem'er
(As amended *- DOE DC N$' 998:9:999 daed
9 an+a!- 998)
% Is not relti$e of person within the fourth ci$il
de'ree of consn'uinity or ffinity of director
officer mn'er shreholder of WESM mem'er
(As amended *- DOE DC N$' 998:9:999 daed
9 an+a!- 998)
c Is not n officer mn'er director or shreholder
'ent employee or contrctor of or is not person
directly or indirectly throu'h one or more
intermediries controls is controlled %y compny
ffilite or ny other entity relted to or ssocited
with !E"# mem%er where<(As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
1 A relted compny or %ody is prent
holdin' compny su%sidiry or ffilite of the
!E"# mem%erC nd(As amended *- DOE DC
N$' 998:9:999 daed 9 an+a!- 998)
2 An ssocite is person who is director
officer mn'er or shreholder of tht
relted compny or entity or relti$e of
such person within the fourth ci$il de'ree
of ffinity or consn'uinityC(As amended *-
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DOE DC N$' 998:9:999 daed 9
an+a!- 998)
d ,s not %een employed s n officer or ny
super$isory or mn'eril cpcity %y ny
electric power industry prticipnt or
compny or %ody relted to or ssocited with
!E"# mem%er within one yer prior to the
nomintion dteC nd(As amended *- DOE DC N$'
993::99 daed N$5em*e! 993 and
/+!he! amended *- DOE DC N$' 998:9:999
daed 9 an+a!- 998)
e A'rees not to %e employed %y nd does not ccept
employment with ny electric power industry
prticipnt or compny or %ody relted to or
ssocited with WESM mem'er s defined in
cluse 1.>.2.@ c within one yer fter the person
ceses to %e &irector.
The term shreholder s used in this (luse 1.>.2.@ %
nd c shll %e understood to eBclude(Added as pe! DOE
DC N$' 998:9:99 daed 9 an+a!- 998)
A mem%er of n Electric (ooperti$e who is not
in$ol$ed in the opertion nd mn'ement of the
sme Electric (ooperti$eC nd
% n End:user who is re4uired to su%scri%e to or to
purchse shre in &istri%ution =tility s n
incident to the pro$ision of ser$ice %y the sme
&istri%ution =tilityC pro$ided tht the interest of
the End: user %e not more thn the minimum
re4uired to $il of the &istri%ution =tilitys
ser$ices.
'2'0 App$#nmen $ he PEM B$a!d
1.>.3.1 The directors of the PEM Board shll %e ppointed %y the
OE in ccordnce with the re4uired composition of the
PEM Board s set out in cluse 1.>.2 h$in' re'rd to theeBpertise necessry for the PEM Board to crry out its
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functions nd ny rele$nt pro$isions of the (orportion
(odes of the Philippines in reltion to the ppointment of
directors.
1.>.3.2 !ith effect from the dte on which the Independent
Market Operator ssumes the duties functions nd
responsi%ilities of the A$MO ll new ppointments or re:
ppointments of irectors nd the Cairperson of the PE#
Board re to %e mde in ccordnce with the re4uired
composition of the PEM Board s set out in cluse 1.>.2.
'2'2 7$#n% R#%hs
1.>.>.1 =nless eBpressly stted otherwise herein pro$isions of
the (orportion (ode shll pply pro$ided tht<
A mority of the totl num%er of irectors ech
h$in' one $ote shll constitute 4uorum for the
trnsction of %usiness of the PEM Board .
% E$ery decision of t lest mority of $otes of
&irectors present in meetin' shll %e $lid s PEM
Board ct. If $otin' is e4ul the Cairperson hs
cstin' $oteC
c &irectors cnnot ttend or $ote %y proBy t %ord
meetin's.
1.>.>.2 A irector or the sector or compny tht he represents who<
,s direct or indirect mteril pecuniry interest
in mtter %ein' considered or is %out to %e
considered %y the PEM Board C nd
% The interest my or my reson%ly %e considered
to %e in conflict with the proper performnce of the
irector-s duties in reltion to the considertion of
the mtter shll s soon s prctic%le fter the
rele$nt fcts %ecome nown or ou'ht reson%ly
to h$e %een nown shll disclose the nture of
the interest t meetin' of the PEM Board .
1.>.>.3 A disclosure under cluse 1.>.>.2 shll %e recorded in the
minutes of the meetin' nd unless the PEM Board otherwise determines the &irector.
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"hll not %e present durin' ny deli%ertion of the
PEM Board in reltion to tht mtterC nd
% "hll not te prt in ny decision of the PEM Board
in reltion to tht mtter.
1.>.>.> +otwithstndin' cluse 1.>.>.2 irector ppointed to
the PEM Board s representti$e of sector of the
Philippine electric power industry is permitted to te into
considertion mtters rele$nt to tht sector of the
industry when considerin' nd decidin' on mtters %efore
the PEM Board .
'2'3 O*,#%a#$ns $/ he PEM B$a!d
1.>.?.1 The PE# ord shll t ll times<
)ulfill its o%li'tions under the WESM RulesC
% Act in mnner tht is consistent with the WESM
RulesC
c Perform ll thin's reson%ly necessry to
contri%ute towrd the chie$ement of the WESM
nd the Act-s o%ecti$esC
d &uly consider nd te into ccount the pro$isions
of the WESM Rules! when decidin' whether or not
to ppro$e ny mtter for which the PEM Board ;s
ppro$l or 'reement is re4uired under the WESM
RulesC
e Promptly notify the ERC of ll rele$nt informtion
reltin' to potentil %rech with recommendtion
on ction to %e tenC nd
f Perform ll other thin's tht the PEM Board
considers reson%ly necessry to promote the
WESM o%ecti$es nd impro$e the opertion of the
WESM s well s the WESM Rules.
1.>.?.2 The followin' re the powers nd duties of the PEM Board <
*$ersee nd monitor the cti$ities of the Market
Operator nd the System operator to ensure tht
they fulfill their responsi%ilities under the WESM
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Rules nd ctin' in mnner consistent with the
WESM RulesC
% )orm (ommittees in ccordnce with cluse 1.>.6C
c *$ersee nd monitor the cti$ities of the
worin' 'roups est%lished under cluse 1.>.6 to
ensure tht they fulfill their responsi%ilities under
nd in ccordnce with the WESM RulesC
d *$ersee nd monitor the cti$ities of WESM
mem'er s to scertin nd determine complince or
non:complince with the WESM RulesC nd
e *$ersee the process %y which chn'es to the WESM
Rules re proposed nd mde in ccordnce with
cluse .2 nd other cluses contined herein.
f Appro$e nd promul'te #ret #nuls includin'
mendments nd re$isions theretoC nd (Added as
pe! DOE DC N$'998::990 daed 9=N$5em*e!
998)
' Issue resolutions or d$isories on ny mtter relted
to the !E"#. (Added as pe! DOE DC N$'998::
990 daed 9=N$5em*e! 998)
'2'8 F$!ma#$n $/ C$mm#ees
The PEM Board shll form worin' 'roups nd ppoint 4ulified
personnel who shll ct s the followin'<
The PEM Auditor to conduct udits of the opertion of the spot
market nd of the Market Operator in ccordnce with cluse
1.?C
% A Market Surveillance Committee to monitor nd report on
cti$ities in the spot market in ccordnce with cluse 1.6C
c A %ecnical Committee to monitor nd re$iew technicl mtters
under nd in reltion to the WESM Rules the $rid Code nd
istri'ution Code in ccordnce with cluse 1.@C
d A Rules Can*e Committee to ssist the PEM Board nd the OE
in reltion to the re$ision nd mendment of the WESM Rules in
ccordnce with chpter nd the formultion re$ision ndmendment of mret mnuls procedures nd 'uidelinesC nd
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pro$ide timely nd effecti$e support nd ssistnce to the
PE# (ommittees.(Added as pe! DOE DC' N$' 998:9:
999 daed 9 an+a!- 998)
1.>.@.3 The #ret Assessment 7roup shll %e unit under the
*ffice of the President of the PEMC.(Added as pe! DOE
DC' N$' 998:9:999 daed 9 an+a!- 998)
1.>. The PEM Board shll crete n En/orcement and Compliance O//icer to
in$esti'te lle'ed %reches of nd enforce snctions 'inst the System
operator Market Operator nd other WESM mem'er s.
To ssist the En/orcement and Compliance O//icer n Enforcement nd
(omplince *ffice shll %e creted to perform the followin' functions<
(Added as pe! DOE DC' N$' 998:9:999 daed 9 an+a!- 998)
"er$e s technicl nd in$esti'ti$e support unit of the
En/orcement and Compliance O//icer
% Est%lish mechnism to promote consulttion nd $oluntry
complince of industry prticipntsC nd
c (ontinuously de$elop systems nd procedures to deter %reches
of the WESM Rules nd further e$ol$e enforcement of penlties
consistent with the o%ecti$es of the !E"#.
1.>.9 The mem%ers of the PE# ord re not li%le for ny loss or dm'e
suffered or incurred %y Prticipnt or ny other person unless the PE#
ord or ny of its mem%ers s the cse my %e cted with mlice
mnifest prtility %d fith 'ross incompetence or 'ross ne'li'ence.
(Added as pe! DOE DC N$' 998:9;:999 daed 9 +,- 998)
1.>.10 +otwithstndin' cluse 1.>.9 eBcept for li%ility risin' out of conduct
in$ol$in' mlice mnifest prtility %d fith 'ross incompetence or
'ross ne'li'ence if the PE# ord is or the mem%ers thereof re mde
li%le to py ny mount for loss or dm'e suffered or incurred in the
eBercise of its functions under the !E"# Rules nd !E"# #nuls the
PE# ord or the mem%ers thereof shll %e indemnified for the full
mount dud'edC nd for costs or eBpenses incurred %y tht person
defendin' himself in the relted proceedin's.
(Added as pe! DOE DC N$' 998:9;:999 daed 9 +,- 998)
'3 THE PHILIPPINES ELECTRICITY MARKET AUDITOR
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'3' App$#nmen $/ he PEM A+d#$!
1.?.1.1 The PE# ord shll ppoint PE# Auditor with such sills
nd eBpertise nd on such terms nd conditions s the
PE# ord reson%ly deems to %e pproprite tin' into
considertion the nture of the o%li'tions nd functions
of the PE# Auditor s set out in cluse 1.?.2 nd cluse
?.2.6. (Added as pe! DOE DC' N$' 99:90:9992 daed
Ma!"h 99)
1.?.1.2 The PE# Auditor shll not currently or hs not %een
employed within one yer prior to the nomintion dte %y
ny Philippine electric power industry prticipnts.(Added
as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)
1.?.1.3 The PE# Auditor must h$e sufficient rele$nt eBperience
in one or more of the followin' fields<(Added as pe! DOE
DC' N$' 99:90:9992 daed Ma!"h 99)
Power industryC
% EconomicsC
c Ris mn'ementC
d Informtion technolo'y nd informtion systemsC
ndDor
e In such other fields s my %e rele$nt to nd
re4uired in the performnce of udits.
'3' Resp$ns#*#,##es $/ he A+d#$!
(Amended as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)
The PEM Auditor shll<
(onduct nnul udits of the Market Operator nd the settlement
system nd ny other procedures persons systems or other
mtters rele$nt to the spot market
% Test nd chec ny new items or $ersions of softwre pro$ided %y
the Market Operator for use %y WESM mem'er sC
c Re$iew ny procedures nd prctices which re co$ered %y the
WESM Rules t the direction of the PEM Board C
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d Recommend chn'es to the WESM Rules where the PEM Auditor
detects deficiencies s conse4uence of n udit re$iew test
chec or other form of re$iewC nd
e Pu%lish on the mret informtion we%site the results of ny
findin's nd recommendtions under this cluse 1.?.1.
'3'0 Re5#e1 $/ WESM R+,es
The PEM Auditor my ppoint 4ulified tem of uditors to crry out
re$iew of the schedulin' nd central dispatc processes under the WESM
Rules. (Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h
99)
'8 MARKET SUR7EILLANCE COMMITTEE
'8' App$#nmen $ he Ma!.e S+!5e#,,an"e C$mm#ee
1.6.1.1 The PEM Board shll ppoint persons to form Market
Surveillance Committee in such num%er nd with such
sills nd eBpertise nd on such terms nd conditions s
the PEM Board reson%ly deems to %e pproprite tin'
into considertion the nture of the o%li'tions nd
functions of the Market Surveillance Committee s setout in cluse 1.6.2.
1.6.1.2 The mem%ers of the Market Surveillance Committee shll
%e independent of the Philippine electric power industry
nd the 7o$ernment.
'8' Resp$ns#*#,##es $/ he Ma!.e S+!5e#,,an"e C$mm#ee
The #ret "ur$eillnce (ommittee shll from time to time s necessry
nd pproprite nd whene$er the PEM Board directs<
#onitor cti$ities conducted %y !E"# Prticipnts in the spot
marketC
% Prepre periodic reports which outline<
1 Acti$ities of !E"# Prticipnts in the spot marketC
2 Apprent or suspected incidents of nti:competiti$e
%eh$ior %y ny !E"# PrticipntC nd
3 #tters concernin' the opertion of the spot market
'enerlly which reports shll %e su%mitted to the PEMBoard the &*E nd ERC upon completionC
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c &eleted nd intentionlly left %ln(As pe! DOE DC N$' 993::
99 daed N$5em*e! 993)
d Assist the PE# ord or the En/orcement and Compliance O//icer
to in$esti'te nd 'ther e$idence of<(As Amended *- DOE DC
N$' 998:9:99 daed 9 an+a!- 998)
1 =nusul or suspicious %eh$ior or cti$ities of WESM
mem'ers in the spot mretC
2 "uspected or lle'ed %reches of the WESM Rules %y WESM
Mem'ers nd
3 "uspected or lle'ed anti+competitive 'eavior!
e )rom time to time if the Market Surveillance Committee in its
discretion deems necessry or pproprite propose mendments
to the WESM Rules in ccordnce with chpter with $iew to<
1 Impro$in' the efficiency nd the effecti$eness of the
opertion of the WESMC nd
2 Impro$in' or enhncin' the prospects for the chie$ement
of the WESM o%ecti$esC
f Assist the Rules Can*e Committee in reltion to its ssessment
of proposls to mend the WESM Rules under chpter .
'8'0 Des#%n and P!$m+,%a#$n $/ Pena,#es
(Added as pe! DOE DC N$'998::990 daed 9=N$5em*e! 998)
The #ret "ur$eillnce (ommittee #"( will desi'n nd promul'te
the penlty le$els nd the pproprite rn'e of penlties for %reches
nd non:complince of !E"# Rules nti:competiti$e %eh$ior nd
%use of mret power.
The #"( will conduct consulttions with the Rules (hn'e (ommittee
nd the PE# ord in its formultion of the penlty le$els nd
pproprite rn'e of penlties.
The penlty scheme nd ny chn'es mde %y the #"( will %e pu%lished
in the #ret Informtion !e%site nd copy furnished to the PE#
ord nd the Rules of (hn'e (ommittee. The #"( shll specify the
dte when the penlties %ecome effecti$e which shll in no cse %e
erlier thn the dte of its pu%liction.
The penlty scheme will %e re$iewed %y the #"( nnully.
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2 =nintended or distortionry effects to the opertion of the
WESM
c Assist the PEM Board %y pro$idin' eBpertise in reltion to<
1 Informtion technolo'yC
2 Meterin* technolo'y nd meterin* dataC nd
3 Any other mtter of technicl nture reltin' to the spot
marketC
d )rom time to time if the Technicl (ommittee in its discretion
deems necessry or pproprite propose mendments to the
WESM Rules in reltion to technicl mtters in ccordnce with
chpter with $iew to<
1 Impro$in' the efficiency nd the effecti$eness of the
opertion of the spot marketC nd
2 Impro$in' or enhncin' the prospects for the chie$ement
of the WESM o%ecti$esC nd
e Assist the Rules Can*e Committee in reltion to its ssessment
of proposls of technicl nture to mend the WESM Rules
under chpter .
'< ENFORCEABILITY AND AMENDMENT OF THESE RULES
'<' En/$!"ea*#,#-
These Rules re enforce%le in ccordnce with chpter @.
'<' Chan%es $ he WESM R+,es
Amendments to the WESM Rules shll %e mde in ccordnce with
chpter .
'= PUBLIC CONSULTATION PROCEDURES
!here the WESM Rules identify mtters tht re su%ect to re$iew or
consulttion in ccordnce with the pu%lic consulttion procedures the PEM
Board shll ensure tht s minimum the followin' procedures re followed<
The PEM Board shll pu%lish in the mret informtion we%site
prticulrs of the mtter to WESM Participants nd other interested
persons in$itin' written su%missions concernin' the mtter to %e mde
%y specified dteC
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(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993)
% !here in the reson%le opinion of the PEM Board there is di$ersity
of $iews eBpressed in the written su%missions recei$ed under cluse
1.9the PEM Board shll in$ite !E"# Prticipnts nd other interested
persons to meetin' or meetin's t which those $iews my %e presented
nd discussed. +on:mem%ers who my %e deemed interested persons
my %e in$ited to ttend su%ect to the discretion of the PEM Board C
c )ollowin' its considertion of the mtter under consulttion the PEM
Board shll prepre report settin' out<
1 The mtter under consulttionC
2 The PEM Board ;s decision in reltion to the mtterC
3 The resons for the PEM Board ;s decisionC
> The findin's on mteril 4uestions of fct referrin' to e$idence
or other mteril on which those findin's were %sedC nd
? The procedures followed in considerin' the mtter.
d The PEM Board shll pro$ide copy of the report referred to in cluse 1.9
c to<
1 The OE nd the ERC on completion of the reportC nd
2 WESM Participants nd interested persons on re4uest.
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2.3.1.1 A $eneration Company with fcilities connected
to transmission or distri'ution system shll re'ister
with the Market Operator s WESM mem'er .
2.3.1.2 To re'ister s WESM mem'er $eneration Company
shll<
(lssify ech of the *eneratin* units which form
prt of the *eneratin* system it owns opertes or
controls or from which it otherwise sources
electricity s either<
1 A sceduled *eneratin* unitC or
2 A non+sceduled *eneratin* unitC or
3 A new nd renew%le ener'y +RE
*eneratin* unit with intermittent ener*y
resource
% "tisfy the Market Operator tht those *eneratin*
units nd the connection points for those
*eneratin* units comply with the rele$nt technicl
re4uirements set out in the WESM Rules the $rid
Code and istri'ution CodeC nd
c "tisfy the mem%ership criteri specified in cluse
2.3.3.>.
2.3.1.3 A *eneratin* unit or 'roup of *eneratin* units connected
t common connection point with nmeplte rtin' or
com%ined nmeplte rtin' of 'reter thn or one tenth
of one percent G 0.1H of the pe lod in prticulr
reserve re*ion shll %e clssified s sceduled
*eneratin* unit.
2.3.1.> A *eneratin* unit or 'roup of *eneratin* units connected
t common connection point with nmeplte rtin'
nd com%ined nmeplte rtin' of less thn one tenth of
one percent 0.1H of the pe lod in prticulr
reserve re*ion or less thn ten percent 10H of the si5e
of interconnection fcilities whiche$er is lower shll %e
clssified s non+sceduled *eneratin* unit %ut my tits option %e clssified s sceduled *eneratin* unit.
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2.3.3.2 "u%ect to cluses 2.3.3.3 nd 2.3.3.> %radin*
Participant re'istered s irect WESM mem'er is
permitted to prticipte in the spot market for ech
cte'ory in which tht %radin* Participant is re'istered.
2.3.3.3 A person or n entity shll not underte cti$ities or
prticipte in or in reltion to the spot market unless the
person or entity is &irect WESM mem'er re'istered s
Customer or $eneration Company with the Market
Operator .
'0'0'2 Mem*e!sh#p C!#e!#a
A person or n entity is not eli'i%le to %e re'istered s
%radin* Participant unless tht person or entity<
Is resident in or is permnently est%lished in
the PhilippinesC
% Is not under eBternl dministrtion s
defined in the JPhilippines (ompnies ActD(odeK
or under similr form of dministrtion under ny
lws pplic%le to tht person or entity in ny
urisdictionC
c Is not immune from suit in respect of the
o%li'tions of WESM mem'er under the WESM
RulesC
d Is cp%le of %ein' sued in its own nme in court
of the PhilippinesC nd
e "tisfies the prudential re1uirements.
2.3.3.? Prior to re'istrtion of %radin* Participant in respect of
sceduled *eneration unit or sceduled load /acility n
Intendin' WESM mem'er my see rulin' from the
System operator with respect to the dispatc tolerances to
%e pplied.
2.3.3.6 If no prior rulin' is sou'ht under cluse 2.3.3.? the
System operator shll me rulin' with respect to
dispatc tolerances upon re'istrtion of tht %radin*
Participant.
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2.3.3.@ The System operator my t ny time re$iew ny rulin'
mde under cluse 2.3.3.? or 2.3.3.6 in the li'ht of further
informtion or eBperience
2.3.3. A Sceduled $eneration Company my ppel to the PEM
Board in respect of rulin' pro$ided under this section
tht is rele$nt to tht person or entity.
2.3.3.9 If t ny time %radin* Participant ceses to %e eli'i%le to
%e re'istered s %radin* Participants ccordnce with
cluse 2.3.3.> tht %radin* Participant shll inform the
Market Operator ccordin'ly nd s soon s prctic%le
fter the Market Operator %ecomes wre tht %radin*
Participant is no lon'er eli'i%le to %e re'istered the
Market Operator shll issue suspension notice in respect
of tht %radin* Participant in ccordnce with cluse
3.1?.@.
'0'2 Ne1$!. Se!5#"e P!$5#de!
2.3.>.1 The %RA&SCO or the 7rid *wner s defined in the $rid
Code shll re'ister with the Market Operator s &et#ork
Service Provider.
2.3.>.2 A istri'ution tility shll re'ister with the Market
Operator s &et#ork Service Provider.
'0'3 An"#,,a!- Se!5#"es P!$5#de!
2.3.?.1 A %radin* Participant or &et#ork Service Provider
pro$idin' ancillary services in ccordnce with cluse 3.3<
"hll re'ister with the Market Operator s n
Ancillary Services Providers respect of<
1 Ech reserve /acility it opertesC
2 Ech reserve cate*ory it intends to pro$ide
from the reserve /acilities re'istered
under cluse 2.3.?.1 1 nd s
uthori5ed %y the System operator under
cluse 2.3.?.3C nd
3 The reserve /acility cate*ory pplic%le to
the reserves intended to %e pro$ided %yech of the reserve /acilities re'istered
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under cluse 2.3.?.1 1 nd s
uthori5ed %y the System operator under
cluse 2.3.?.3.
% #y %e re'istered either s &irect WESM mem'er
or n Indirect WESM mem'er in respect of its
cti$ities reltin' to the pro$ision of ancillary
services su%ect to stisfyin' the rele$nt
prere4uisites set out in cluse 2.3.
2.3.?.2 *nly n Ancillary Services Provider re'istered s irect
WESM mem'er my enter into n ancillary services
'reement with the System operator under cluse 3.3.3.
2.3.?.3 Prior to the re'istrtion of %radin* Participant or
&et#ork Services Provider s n Ancillary Services
Provider eli'i%le to pro$ide reserves in ccordnce with
cluse 2.3.?.1 the System operator shll<
(ertify tht the rele$nt reserve /acility is cp%le
of pro$idin' the reserve cate*ory for which
re'istrtion is sou'ht in ccordnce with the
$rid Code nd istri'ution Code
% (lssify ech reserve /acility for which re'istrtion
is sou'ht into reserve /acility cate*ory in respect
of ech reserve cate*ory tht is intended to %e
pro$ided %y tht reserve /acility
c &etermine to which reserve re*ion ech reserve
/acility for which re'istrtion is sou'ht my %elon'
dependin' on the %ility of tht reserve /acility to
pply reserve to meet the correspondin'
loctionlly specific reserve re1uirementC nd
d Pro$ide written uthori5tion to the Market
Operator which sets out the rele$nt informtion
determined under cluses 2.3.?.3 % nd c.
2.3.?.> A %radin* Participant nd +etwor "er$ices Pro$ider shll
not %e pid or compensted for pro$idin' ncillry ser$ices
or reser$es unless<
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Re'istered s n Ancillary Services Provider in
respect of the rele$nt fcility in ccordnce with
cluse 2.3.?.1C or
% Re'istered s n Ancillary Services Provider for
pro$ision of the rele$nt reserve cate*ory in tht
rele$nt reserve re*ion in ccordnce with cluse
2.3.?.1.
'0'8 Mee!#n% Se!5#"es P!$5#de!
2.3.6.1 A person or n entity intendin' to pro$ide meterin*
services in ccordnce with chpter > shll secure n
uthori5tion from the ERC.
2.3.6.2 A person or n entity uthori5ed %y the ERC to pro$ide
meterin* services shll re'ister with the Market Operator
s Meterin* Services Provider.
2.3.6.3 Initilly the %RA&SCO shll pro$ide the ser$ices re4uired
of the Meterin* Services Provider %ut this will not eBclude
other entities from doin' the sme pro$ided they meet
the re4uirements of chpter >.
'0'; S-sem $pe!a$!
The System operator of the %RA&SCO shll re'ister with the Market
Operator s System operator .
'2 INDIRECT WESM MEMBERS
A person or n entity who wishes to indirectly trde in the spot market shll
re'ister with the Market Operator s n 0ndirect WESM mem'er . ,owe$er n
0ndirect WESM mem'er my only trnsct throu'h direct WESM mem'er .
'3 APPLICATIONS FOR RE6ISTRATION
'3' App,#"a#$n p!$"ess
An ppliction for re'istrtion shll %e su%mitted to the Market
Operator in the form prescri%ed %y the Market Operator nd shll %e
ccompnied %y re'istrtion fee pu'lised %y the Market Operator .
'3' P!e!e>+#s#es /$! app,#"ans
If n pplicnt pplies for re'istrtion either s &irect WESM mem'er
or s n Indirect WESM mem'er tht pplicnt shll<
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'3'3 N$#"e $/ app!$5a, $/ app,#"a#$n
2.?.?.1 If the Market Operator ppro$es n ppliction under
cluse 2.?.>the Market Operator shll send written notice
of ppro$l to the pplicnt within fifteen Workin* ays
from receipt of< (As amended *- DOE DC N$' 90:90:
9993 daed Ma!"h 90)
The ppliction under cluse 2.?.1C or
% The dditionl informtion or fees if further
informtion or fees re re4uired under cluse 2.?.3.
2.?.?.2 The re'istrtion of the pplicnt shll te effect on the
dte specified in the notice of ppro$l which shll %e
dte not more thn se$en Workin* ays fter the dte on
which the Market Operator sends the notice of ppro$l
under cluse 2.?.?.1. (As amended *- DOE DC N$' 90:
90:9993 daed Ma!"h 90)
'3'8 N$#"e $/ n$n:app!$5a, $/ app,#"a#$n
2.?.6.1 If the #ret Operator does not ppro$e n ppliction for
re'istrtion the Market Operator shll send within fifteen
1? Workin* ays written notice to the pplicnt d$isin'
the pplicnt tht the ppliction is not ppro$ed nd the
Market Operator shll 'i$e resons for its decision.(As
amended *- DOE DC N$' 9:9<:99< daed 0 A+%+s
9) (As /+!he! amended *- DOE DC N$' 90:90:9993
daed Ma!"h 90)
2.?.6.2 The OE nd the ERC shll in ll instnces %e pro$ided
copy of such written notice within fi$e ? Workin* ays
fter issunce to the pplicnt.(As amended *- DOE DC
N$' 9:9<:99< daed 0 A+%+s 9) (As /+!he!
amended *- DOE DC N$' 90:90:9993 daed Ma!"h
90)
2.?.6.3 If n ppliction for re'istrtion is reected %y the Market
Operator under cluse 2.?.6.1 n pplicnt my<
Rectify the shortcomin's in his pre$ious ppliction
s notified %y the Market Operator s %ein' the
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resons for the ppliction %ein' unsuccessful
nd re:su%mit n ppliction for re'istrtionC or
% Refer the mtter for resolution s dispute under
cluse@.3.
'3'; Ma!.e Ope!a$! $ ma#na#n a ,#s
The Market Operator shll pu'lis nd eep current list of re'istered
WESM mem'er s the cte'ories in which they re re'istered nd detils
of the current sttus of pplictions to %ecome WESM mem'er in
ccordnce with cluse ?.2.3.
'8 CEASIN6 TO BE A WESM MEMBER
'8' N$#/-#n% he Ma!.e Ope!a$!
If person or n entity wishes to cese to %e re'istered<
In ny one or more cte'ories of WESM mem'er set out in cluse
2.3C or
% As n Indirect WESM mem'er it shll notify the Market Operator
in writin'.
'8' Dae $/ "essa#$n
In notice 'i$en under cluse 2.6.1 WESM mem'er shll specify< A dte upon which it wishes to cese to %e re'istered which dte
should not %e less thn thirty 30 'usiness days fter the dte on
which the WESM mem'er sends the noticeC nd
% The cte'ory or cte'ories in which the !E"# mem%ers no lon'er
wishes to %e re'istered.
'8'0 N$#/-#n% a,, WESM mem*e!s
*n receipt of notice under cluse 2.6.1 the Market Operator shll
notify ll WESM mem'er s tht the person or entity who '$e the notice
shll cese to %e re'istered s WESM mem'er in the rele$nt cte'ory
nd the dte on which tht will occur.
'8'2 Ma!.e Ope!a$! n$#/#"a#$n $/ "essa#$n
If the Market Operator pro$ides notice under cluse 2.6.3 tht WESM
mem'er shll cese to %e re'istered in the rele$nt cte'ory on
specified dte tht WESM mem'er shll cese ll cti$ities rele$nt to
tht cte'ory tht it ws permitted to underte %efore it cesed to %ere'istered s WESM mem'er in tht rele$nt cte'ory includin' %ut
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not limited to trdin' in the spot market if tht WESM mem'er ceses to
%e re'istered s %radin* Participant from tht dte.
'; SUSPENSION
';' 6!$+nds /$! S+spens#$n
The Market Operator my issue suspension notice to WESM
Participants %sed on the followin' 'rounds<
rech of the WESM Rules su%ect to cluse @.2.2C nd
% Pyment defult su%ect to 3.1>.11.
';' E//e" $/ a s+spens#$n n$#"e
If %radin* Participant who is either irect WESM mem'er or n
0ndirect WESM mem'er recei$es suspension notice from the Market
Operator in ccordnce with ny pro$ision of the WESM Rules tht
%radin* Participant is suspended from prticiption in the spot market
unless nd until the Market Operator declres the suspension notice to
%e re$oed in ccordnce with cluse 3.1?.@.
'< DERE6ISTRATION
'<' De!e%#s!a#$n $/ a T!ad#n% Pa!#"#pan2..1.1 If the Market Operator issues dere'istrtion notice to
ny %radin* Participant under the dere'istrtion process
the %radin* Participant is deemed to %e dere'istered s
%radin* Participant from the dte specified in the
dere'istrtion notice.
2..1.2 A %radin* Participant who is dere'istered shll not %e
llowed to re:re'ister within certin prescripti$e period
nd until it hs demonstrted tht such infrction will not
occur 'in.
'<' O*,#%a#$ns and ,#a*#,##es /$,,$1#n% de!e%#s!a#$n
+otwithstndin' tht person or n entity is no lon'er re'istered s
WESM mem'er for ny reson includin' cesin' to %e WESM mem'er or
%ein' suspended from the spot market tht person;s or entity;s
o%li'tions nd li%ilities which rose under the WESM Rules prior to the
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dte on which tht person or entity ws dere'istered remin unffected
%y the dere'istrtion.
'<'0 De!e%#s!a#$n p!$"ed+!e de5e,$pmen
Prior to spot market commencement date the Market Operator shll
de$elop procedures for dere'istrtion includin' 'rounds for
dere'istrtion nd prescripti$e period referred to in cluse 2..1.2 to %e
ppro$ed %y the PEM Board .
'= INTENDIN6 WESM MEMBERS
'=' Re%#s!a#$n as an Inend#n% WESM mem*e!
Any person or entity who intends to re'ister s WESM mem'er my
re'ister with the Market Operator s n Intendin' WESM mem'er if tht
person or entity cn stisfy the Market Operator of its %on fide intent
to commence n cti$ity within reson%le timefrme which would
entitle or re4uire tht person or entity to %e re'istered s WESM
mem'er once tht cti$ity is commenced.
'=' App,#"a#$ns /$! !e%#s!a#$n
Applictions for re'istrtion s n 0ntendin* WESM mem'er shll %e
su%mitted to the Market Operator in the form prescri%ed %y the MarketOperator nd shll %e ccompnied %y the re'istrtion fee if ny
pu%lished %y the Market Operator horn time to time.
'='0 N$#"e $/ "essa#$n $/ !e%#s!a#$n
The Market Operator my from time to time re4uire n 0ntendin* WESM
mem'er to stisfy the Market Operator tht it continues to meet the
criteri for re'istrtion in cluse 2.9.1 nd if the 0ntendin* WESM
mem'er is un%le to stisfy the Market Operator tht it remins entitled
to %e re'istered s n intendin* WESM mem'er then the Market
Operator shll send written notice to the rele$nt Intendin' WESM
mem'er to d$ise the rele$nt Intendin' WESM mem'er tht it will
cese to %e re'istered s n 0ntendin* WESM mem'er on the dte
specified %y the Market Operator in tht notice.
'='2 A"#5##es $/ Inend#n% WESM mem*e!s
An 0ntendin* WESM mem'er is ten to %e n 0ntendin* WESM mem'er
only insofr s its cti$ities relte to its intention to commence n
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cti$ity tht would entitle or re4uire tht person or entity to %e
re'istered s WESM mem'er .
'='3 R#%hs and $*,#%a#$ns $/ Inend#n% WESM mem*e!s
To the eBtent rele$nt nd pplic%le n 0ntendin* WESM mem'er
c4uires only the followin' ri'hts nd o%li'tions under the WESM Rules<
The ri'ht to o%tin informtion tht would %e mde ccessi%le to
WESM mem'er s in the cte'ory in which the Intendin' WESM
mem'er intends to %e re'isteredC
% The ri'ht to refer mtters for resolution ccordin' to the dispute
resolution process in cluse @.3C nd
c The o%li'tion to eep certin informtion confidentil
in ccordnce with cluse ?.3.
'9 MARKET FEES
'9'Imp$s#n% Ma!.e Fees
The cost of dministerin' nd opertin' the !E"# shll %e reco$ered %y
the Market Operator throu'h chr'e imposed on ll WESM mem'er s or
WESM trnsctions pro$ided such chr'e shll %e filed %y the Market
Operator with the ERC for ppro$l consistent with the Act.'9'S!+"+!e and Le5e, $/ Ma!.e Fees
2.10.2.1 Prior to the commencement of the spot market the
Market Operator shll de$elop the structure nd le$el of
mret fees in consulttion with WESM Participants.
2.10.2.2 In de$elopin' the structure nd le$el of market /ees the
Market Operator shll te into considertion the mnner
in which it intends to chr'e ech cte'ory of
WESM mem'er nd whether tht chr'in' proposl is
reson%le 'i$en the relti$e in$ol$ement of ech cte'ory
of WESM mem'er in the spot market.
2.10.2.3 =pon the ppro$l of the PEM Board the Market Operator
shll file the proposed structure nd le$el of market /ees
with the ERC for ppro$l.
'9'06+#d#n% P!#n"#p,es
The structure of market /ees should to the eBtent prctic%le %e
consistent with the followin' principles<
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The structure of market /ees should %e trnsprentC
% #ret fees shll consider the %ud'eted re$enue re4uirements for
the #ret *pertor nd the PE# ord determined under cluse
2.11C nd
c The structure nd le$el of market /ees should not f$or or
discriminte 'inst cte'ory or cte'ories of WESM mem'er .
'9'2C$mp$nens $/ Ma!.e Fees
The components of the market /ees shll include %ut re not limited to<
Re'istrtion fees comprisin' n nnul fee py%le %y ech
WESM mem'er for the cte'ory or cte'ories in which they re
re'isteredC
% Meterin* /ees to reco$er the Market Operator ;s %ud'eted re$enue
re4uirements for the collection stor'e nd processin' of
meterin* data
c illin' nd settlement fees to reco$er the Market Operator ;s
%ud'eted re$enue re4uirements for pro$idin' the %illin' nd
settlements ser$ice s descri%ed in chpter 3C
d Administrtion fees to reco$er the reminder of the Market
Operator ;s %ud'eted re$enue re4uirements not co$ered %y
% c nd dC nd
e (osts reson%ly incurred %y the PEM Board nd the committees
nd worin' 'roups tht the PEM Board ppoints under the WESM
Rules.
'9'3 P+*,#"a#$n $/ Ma!.e Fees S!+"+!e
=pon the ppro$l of ERC! the Market Operator shll pu'lis the
structure nd le$el of market /ees nd the methods used in determinin'
the structure prior to commencement of the spot market.
' BUD6ET
'' S+*m#ss#$n $/ ann+a, saemens and $he! d$"+mens
2.11.1.1 +o lter thn four months prior to the strt of ech
finncil yer the Market Operator shll su%mit n nnul
sttement of eBpected income nd eBpenses to the PEM
Board for ppro$l settin' out mon' others the
followin'<
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CHAPTER 0
THE MARKET
0' SCOPE OF CHAPTER 0
This chpter 3 sets out the rules which 'o$ern opertion of the spot market
nd relted mtters includin' %ut not limited to<
The definition of the market net#ork model pricin* ,ones reserve
cate*ories nd reserve re*ions tradin* interval nd timeta'leC
% The procedures to %e followed %y WESM mem'er s in su%mittin' offers
demand 'ids nd dt into the spot marketC
c The structure nd use of the market dispatc optimi,ation model
d The procedures for pro$ision of ancillary services nd for determinin'
pyment for those ser$icesC
e The procedures for preprin' #eek aead pro2ections nd day aead
pro2ections
f The procedures for scedulin* nd dispatc load seddin* nd e3cess
*eneration
' The determintion of market prices
h The re4uirement reltin' to the pu%liction of informtion in
ccordnce with the timeta'leC
i The procedures for determinin' settlements amounts nd for pyin' nd
recei$in' settlements
The determintion of prudential re1uirementsC nd
The procedures for supportin' transmission ri*ts.
0' MARKET NETWORK MODEL? TRADIN6 NODES? AND
PRICIN6@ONES
The price determination metodolo*y contined in this WESM Rules shll %e
su%ect to the ppro$l of ERC.
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0'' Ma!.e Ne1$!. M$de,
3.2.1.1 The Market Operator shll mintin nd pu'lis market
net#ork model! which will %e used for the purpose of
centrl schedulin' nd disptch pricin' nd settlement.
3.2.1.2 The market net#ork model shll represent firly nd in
mnner which will fcilitte consistent nd reli%le
opertion of the power system<
The transmission net#ork under the control of
the System Operator! nd
% "uch other spects of the po#er system which
when connected! my %e cp%le of mterilly
ffectin' dispatc of sceduled *eneratin* units or
pricin' within the spot market.
3.2.1.3 The market net#ork model my contin such
simplifictions pproBimtions e4ui$lencies or
dpttions s my fcilitte the dispatc pricin' or
settlement processes.
3.2.1.> !here pproprite the Market Operator in coordintion
with the System Operator shll me ltertions to the
Market &et#ork Model (As amended *- DOE DC N$' 92:
9<:998 daed A+%+s 92) so s to mintin<
The reltionship %etween the market net#ork
model nd the transmission net#ork nd
% (onsistency with market re4uirements
in ccordnce with cluses 3.2.1.2 nd 3.2.1.3.
3.2.1.? Any ltertion under (luse 3.2.1.> shll %e implemented
in ccordnce with the est%lished 0n/ormation and
Communications %ecnolo*y Can*e Mana*ement Process
(0CMP) of the Market Operator . The Market Operator shll
re'ulrly inform the PEM Board of ny chn'es mde to
the Market &et#ork Model (As amended *- DOE DC N$'
92:9<:998 daed A+%+s 92).
3.2.1.6 The Market Operator shll continuously dpt or
dust the representtion of the market net#ork modelto ccurtely reflect po#er system conditions within the
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dustments tht will %e implemented %y the Market
Operator nd the System operator . (As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
3.2.2.3A +odl Prices t #ret Trdin' +odes shll %e used for the
settlement of ener'y for %oth 'enertors nd customers.
(Added as pe! DOE DC N$'992:9;:99< daed ; +,-992)
3.2.2.> The Market Operator shll mintin pu%lish nd
continuously updte re'ister of market tradin* nodes
defined in ccordnce with cluse 3.2.2.1 so s to
ccurtely reflect chn'es in the mret networ model
nd the WESM mem'er responsi%le for ech markettradin* node.
0''0 C+s$me! P!#"#n% @$nes
3.2.3.1 (ustomer nodes my %e 'rouped into customer pricin'
5ones in ccordnce with the procedures to %e de$eloped
%y the #ret *pertor nd su%ect to the ppro$l of the
PE# ord. The #ret *pertor shll mintin nd pu%lish
the customer pricin' 5ones to %e used for the settlement
of ener'y for customers.(As amended *- DOE DC N$'
992:9;:99< daed ; +,- 992)
3.2.3.2 All customers within customer pricin' 5one shll fce the
sme price for electricity consumed.(Asamended *- DOE
DC N$' 992:9;:99< daed ; +,- 992)
3.2.3.3 As lon' s customer:pricin' 5ones re employed the
Market Operator shll conduct periodic re$iew nd
e$lution of eBistin' customer pricin' 5ones nd shll< "u%mit re$ised customer pricin* ,ones to the PEM
Board for ppro$lC nd
% Pu'lis ny re$ised customer pricin* ,ones
ppro$ed %y the PEM Board .
3.2.3.> The Market Operator shll in consulttion with WESM
Participants! continuously re$iew the procedures for
determinin' the market net#ork model! market tradin*
nodes nd customer pricin* ,ones set out in this chpter 3
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ancillary services to %e pro$ided %y Ancillary
Services Providers
% y the System Operator purchsin' ancillary
services in ccordnce with cluse 3.3.3.
0'0' An"#,,a!- Se!5#"es C$n!a"#n% *- he S-sem $pe!a$!
3.3.2.1 The System operator shll use reson%le ende$ors to
ensure tht sufficient fcilities re $il%le nd oper%le
to pro$ide for<
The mintennce or restortion of po#er system
security under emer*ency conditionsC
% The restortion of ll or ny prt of the po#er
system to its stisfctory opertin' stte followin'
n emer*ency thret to system security or /orce
ma2eure e$entC nd
c The $il%ility t ll times of the num%er of
independent power sources %le to pro$ide %lc
strt:up fcilities determined in ccordnce with
the procedures de$eloped %y the Market
Operator to scertin the 4untities of ancillary
services which the System operator shll purchse.
3.3.2.2 The System operator shll use reson%le ende$ors to
enter into ancillary services 'reements to pro$ide
sufficient ancillary services to meet the re4uirements of
cluse 3.3.2.1 su%ect to cluse 3.3.3.
0'0'0 An"#,,a!- Se!5#"es A%!eemens
3.3.3.1 The System operator shll rrn'e for the pro$ision of
de4ute reserves for ech re'ion in ccordnce with
cluse 3.3.3.2.
3.3.3.2 The System operator shll rrn'e for the pro$ision of
de4ute ancillary services for ech re'ion either<
y competiti$e tenderin' process dministered %y
the Market Operator where%y num%er of
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System operator ccordin' to the stndrd test procedures
est%lished under the $rid Code nd istri'ution Code.
3.3.3.@ Any dispute %etween the System operator nd the
Ancillary Services Provider in reltion to the determintion
of pyment for spot mret ancillary services shll %e
determined %y the ispute Resolution Administrator in
ccordnce with cluse @.3 unless otherwise pro$ided in
the Ancillary Services Procurement A*reement (ASPA). (As
amended *- DOE DC N$' 9:9:999 daed 3
Fe*!+a!- 9)
0'0'2 Rese!5e Ma!.e A!!an%emens
3.3.>.1 !hen reson%ly fesi%le the Market Operator in
coordintion with the System operator shll est%lish nd
dminister spot market for the purchse of certin
reser$e cte'ories.
3.3.>.2 The reserve cte'ories to %e trded in the spot market
shll include<
Re*ulatin* reserve %ein' the %ility to respond
to smll fluctutions in system fre4uency includin'
%ut not limited to fluctutions cused %y lod
fluctutionsC
% Contin*ency reserve! %ein' the %ility to respond to
si'nificnt decrese in system fre4uency includin'
%ut not limited to decrese in system fre4uency in
n interconnected A( networ s result of
credi%le contin'ency ffectin' one or more
$eneration Companies within tht net#ork! or
transmission flows into tht net#ork nd
c "uch other reserve cte'ories s my from time to
time %e proposed %y the Market Operator in
consulttion with the System operator nd with
WESM mem'er s nd ppro$ed %y the PEM Board .
0'0'3 An"#,,a!- Se!5#"es C$s Re"$5e!-
3.3.?.1 The System operator shll mintin nd pu'lis reservecost recovery ,ones within which reserve cost recovery
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car*es my %e reco$ered to meet ech loctionlly
specific re4uirement.
3.3.?.2 The costs of ncillry services re to %e reco$ered throu'h
the settlement mounts clculted %y the Market
Operator under cluse 3.13.10<
In ccordnce with the cost reco$ery formul to %e
de$eloped %y the System operator for the
cte'ories of reser$e which re defined in cluse
3.3.>.2C nd
% )rom those WESM mem'er s or others on whose
%ehlf the System operator is deemed to purchse
ech ancillary service! in proportion to the %enefits
which re considered to %e deri$ed %y those WESM
mem'er s in respect of ancillary services not
included in cluse 3.3.?.2 .
3.3.?.3 The costs of pro$idin' ech loctionlly specific reser$e
re4uirement shll %e llocted %y the Market Operator to
those %radin* Participants in the rele$nt reserve cost
recovery ,one in the form of reserve cost recovery car*es
to %e determined in ccordnce with the principles set out
in cluse 3.3.?.>.
3.3.?.> !hen lloctin' reserve cost recovery car*es to %radin*
Participants in prticulr reserve cost recovery ,one s
pu'lised in cluse 3.3.?.1 the Market Operator my
reco$er<
The cost of re*ulatin* reserve in ech reserve cost
recovery ,one! from<
1 Customers with lod /acilities connected in
tht reserve cost recovery ,one! under
formul which shll ccount for %oth the
relti$e si5e of the customer loads nd the
de'ree to which they contri%ute to
de$itions from their schedule within the
tradin* intervalC nd
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3.?.3.2 !here necessry the System operator shll in ccordnce
with the timeta'le promptly d$ise the Market Operator
to<
Lry the mret networ model representtion
employed for ny trdin' inter$l in the current
wee:hed mret hori5on to te ccount of
informtion recei$ed from &et#ork Service
Providers nd
% Apply or $ry ny system security constrints
o$er:ridin' constraints or reserve re1uirements
constraints to %e pplied in ny tradin* interval in
the current #eek+aead market ori,on to te
ccount of current or proected system
conditions.
3.?.3.3 In determinin' whether it is reson%ly necessry to d$ise
the Market Operator under cluse 3.?.3.2 the System
operator shll te into considertion its o%li'tions with
respect to mintinin' system security in ccordnce with
the WESM Rules the Act! the $rid Code nd istri'ution
Code or ny other rele$nt re'ultory instruments.
3.?.3.> In ctin' on such d$ice the Market Operator shll te
full ccount of its o%li'tions to WESM mem'er s with
respect to mintinin' the inte'rity of the mret nd the
market net#ork model s defined %y the WESM Rules
the Act! or ny other pplic%le re'ultory instruments.
3.?.3.? In ccordnce with the timeta'le ny re$ision under
cluse 3.?.3.2to the system representtion or constrints
to %e employed with respect to ny mret tradin*
interval shll te effect the neBt time mret disptch
optimi5tion model run is initited.
3.?.3.6 The System operator shll d$ise the Market Operator of
ny circumstnces which threten si'nificnt pro%%ility
of mteril d$erse chn'e in the stte of the net#ork! or
system! in ny tradin* interval of ny tradin* day in thecurrent #eek+aead market ori,on.
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3.?.>.> If lod sheddin' is eBpected to occur in ny trdin'
inter$l restrined net load /orecast for tht tradin*
interval shll %e prepred on the sme %sis %ut
ccountin' for load seddin* to the eBtent tht it is
eBpected to occur.
0'3'3 6ene!a#$n O//e!s and Daa
3.?.?.1 Ech Sceduled $eneration Company includin' $eneration
Companies with 'ilateral contracts shll su%mit stndin'
*eneration o//er for ech of its sceduled *eneratin* units
for ech tradin* interval in ech tradin* day of the wee
in ccordnce with the timeta'le.
3.?.?.2 Ech *eneration o//er shll include the informtion
specified in AppendiB A1.1.
3.?.?.3 Ech 7enertin' (ompny shll in consulttion with
the "ystem opertor su%mit chec dt to %e used %y the
#ret *pertor in ccordnce with cluse 3.?.12 to
ssist in determinin' the $lidity of ny 'enertion offer
which my %e su%mitted %y the "cheduled 7enertor.
3.?.?.> Ech +on:"cheduled 7enertion (ompny shll su%mit
stndin' schedule of lodin' le$els for ech of its non:
scheduled 'enertin' units for ech trdin' inter$l in
ech trdin' dy of the wee in ccordnce with the
timet%le.
3.?.?.? Ech &RE $eneration Company with intermittent ener*y
resource shll su%mit its proected output for ech of its
*eneratin* units for ech tradin* interval in ech tradin*
day of the wee in ccordnce with the timeta'le.
0'3'8 C+s$me! Demand B#ds
3.?.6.1 Ech Customer my su%mit stndin' demand 'id in
respect of ech tradin* interval for ech of its re*istered
sceduled load /acilities for ech tradin* day of the wee
in ccordnce with the timeta'le.
3.?.6.2 Ech demand 'id su%mitted under cluse 3.?.6.1 shll<
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(orrespond to lod which hs %een certified s
disptch%le in ccordnce with the $rid Code nd
istri'ution CodeC nd
% Include the informtion specified in AppendiB A1.3.
3.?.6.3 Ech Customer shll in consulttion with the System
operator su%mit chec dt for ech of its re*istered
sceduled load /acilities to %e used %y the Market
Operator in ccordnce with cluse 3.?.12 to ssist in
determinin' the $lidity of ny demand 'id which it my
su%mit.
0'3'; 6ene!a#$n C$mpan- Rese!5e O//e!s
3.?.@.1 This section shll pply only upon commencement of the
spot market for ancillary services est%lished under cluse
3.3.>.
3.?.@.2 !hen pplic%le su%ect to cluse 3.3.>.2 ech
Sceduled $enerator re'istered s n Ancillary Services
Provider in respect of reserve /acility in prticulr
reserve re*ion shll su%mit stndin' reserve o//er for
ech of its rele$nt reserve /acilities in respect of tht
reserve re*ion for ech tradin* interval for ech dy of
the wee in ccordnce with the timeta'le.
3.?.@.3 Ech reserve o//er su%mitted %y $eneration Company
under cluse 3.?.@.2 shll<
(orrespond to response cp%ility of the rele$nt
reserve /acility which hs %een certified s
meetin' the rele$nt reser$e response
stndrds for tht reserve /acility cate*ory!
in ccordnce with the $rid Code and istri'ution
Code nd
% Include the informtion specified in AppendiB A1.2.
3.?.@.> Ech $eneration Company re'istered s n Ancillary
Services Provider in respect of reserve /acility shll in
consulttion with the System operator su%mit chec dtto %e used %y the Market Operator in ccordnce with
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'id for ny tradin* interval in ny dy of the wee my %e
re$ised %y the rele$nt $eneration Company or Customer
in ccordnce with the timeta'le.
3.?.9.2 A stndin' *eneration o//er stndin' reserve o//er or
stndin' demand 'id which is re$ised under cluse 3.?.9.1<
"hll te effect the neBt time #eek aead
pro2ection is initited in ccordnce with the
timeta'leC nd
% "hll only ffect the offers employed in
market dispatc optimi,ation model runs used to
determine pro2ections! dispatc! or pricin* for
periods not lredy co$ered %y #eek+aead
pro2ections which h$e lredy %een pu'lised!
or whose preprtion hs lredy %een initited t
the time when the re$ised offer or %id is ccepted.
0'3'9 In##a, se#n% $/ Ma!.e O//e!sB#ds
!hen the Market Operator updtes mret proection under cluse
3.@ the standin* o//ers nd standin* 'ids shll %e effecti$e in the
%sence of re$ised market o//ers nd market 'ids for the correspondin'
tradin* interval nd dy of the wee.
0'3' Re5#s#$n $/ Ma!.e O//e!sB#ds
3.?.11.1 Ech scheduled %radin* Participant which hs su%mitted
standin* o//ers or 'ids my re$ise ny of its market o//ers
or market 'ids for ny tradin* interval in ny tradin* day
of the current #eek+aead market ori,on in ccordnce
with the timeta'le nd su%ect to cluse 3.?.11.3 nd
ech re$ised market o//er or market 'id su%mitted shll
pro$ide the informtion set out in AppendiB A2.
3.?.11.2 Ech $eneration Company which hs su%mitted schedule
of loadin* levels for its non+sceduled *eneratin* units
shll re$ise its schedule of loadin* levels if it reson%ly
eBpects tht ny of its nticipted loadin* levels will
differ mterilly from those pre$iously su%mitted.
3.?.11.3 In ccordnce with the timeta'le re$ised market o//er or market 'id su%mitted under cluse 3.?.11.1 shll te
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to %e or to cuse mteril d$erse chn'e in
circumstnces for the purposes of cluse 3.?.11.6.
3.?.11. Ech mret offer or market 'id for prticulr tradin*
interval is deemed to stnd with effect from the time it is
initited under cluse 3.?.10 or re$ised under cluse
3.?.11 nd will %e used in preprin' ll market /orecasts
dispatc tr'ets or prices for tht tradin* interval unless
nd until $lid re$ision to the market o//er is ccepted
%y the Market Operator .
0'3'C$n/#!ma#$n $/ Re"e#p $/ 7a,#d O//e!s and B#ds
3.?.12.1 To %e $lid *eneration o//ers reserve o//ers or demand
'ids shll %e su%mitted %y the rele$nt %radin*
Participant<
In ccordnce with cluse 3.?.1
% In ccordnce with the timeta'leC nd
c (onsistent with the chec dt su%mitted %y
the %radin* Participant under cluses 3.?.?.3
3.?.6.3 nd 3.?.@.> s pproprite.
3.?.12.2 The #ret *pertor shll send to ech Trdin' Prticipnt
horn whom it hs recei$ed $lid 'enertion offer reser$e
offer or $lid demnd %id n electronic confirmtion of
receipt nd cceptnce of tht 'enertion offer reser$e
offer or demnd %id in ccordnce with the timet%le.
3.?.12.3 If %radin* Participant does not recei$e confirmtion of
receipt under cluse 3.?.12.2 from the Market Operator
in ccordnce with the timeta'le the %radin* Participant
shll contct the Market Operator to determine whether
or not the *eneration o//er reserve o//er or demand 'id
ws recei$ed.
3.?.12.> If the offer or %id is in$lid the Market Operator shll
promptly inform the %radin* Participant to resu%mit
corrected *eneration o//er! reserve o//ered demand 'id in
ccordnce with cluse 3.?.11.0'3'0O5e!:!#d#n% C$ns!a#ns
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3.?.13.1 "u%ect to cluse 3.?.13.3 the System Operator my
re4uire the Market Operator to impose constrints on the
power flow ener'y 'enertion of specific fcility in the
7rid to ddress system security thret to miti'te the
effects of system emer'ency or to ddress the need to
disptch 'enertin' units to comply with systems
re'ultory nd commercil tests re4uirements. The System
Operator my lso relB eBistin' constrints or system
re4uirements on power flows ener'y 'enertion nd
reser$es if the Market Operator is un%le to produce
fesi%le disptch schedule. As amended *- DOE DC
NO'92:9:99 daed 2 O"$*e! 92)
The System operator in consulttion with the Market
Operator nd the %radin* Participants shll de$elop the
criteri nd procedures for disptch of 'enertin' units
tht re re4uired to run s result of the imposition or
relBtion of constrints stted in the precedin'
pr'rph nd the mnner for compenstin' sid units.
(As amended *- DOE DC NO'998:9:999 and /+!he!
amended *- DOE DC N$' 998:93:9998 daed 3 Ma-
998)
3.?.13.2 In situtions where offers re structured in such wy tht
pro$ision of ny le$el of reser$e ser$ices prohi%its the
simultneous pro$ision of $ery low or hi'h le$els of
'enertion the System operator my lso recommend to
the Market Operator tht constrints should %e imposed or
relBed so s to llow *eneratin* systems to operte in
rn'e which llows increse of either reser$e lloction or
ener'y 'enertion s pproprite h$in' re'rd to<
(As amended *- DOE DC N$' 998:93:9998 daed 3 Ma-
998)
The commercil interests of %radin* ParticipantsC
nd
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tradin* interval reserve lloctions for the tradin*
interval ssocited ener*y prices t ll tradin* nodes in
the po#er system nd when pplic%le reserve prices for
ll reserve re*ions.
3.6.1.2 The Market Operator shll mintin nd pu'lis the
formultion of the market dispatc optimi,ation model!
nd the performnce stndrds in ccordnce with the
WESM o%ecti$es.
3.6.1.3 The o%ecti$e of the market dispatc optimi,ation model
shll %e to mBimi5e the $lue of dispatced load %sed on
dispatc 'ids! minus<
The cost of dispatced *eneration %sed on
dispatced o//ers
% The cost of dispatced reserves %sed on
reserves contrcted for or when pplic%le reserve
o//ersC nd
c The cost of constraint violation %sed on the
constraint violation coe//icients.
3.6.1.> In formultin' the market dispatc optimi,ation model
the Market Operator nd System operator shll ensure
tht the dispatc for ech tradin* interval is mde su%ect
to<
(onstrints representin' limits on 'enertion offer
demnd %id nd when pplic%le reser$e 4untities
s specified %y Trdin' Prticipnts in ccordnce
with cluse 3.? eBcept to the eBtent tht s they
my %e relBed in ccordnce with cluse 3.?.13C
% (onstrints representin' the technicl
chrcteristics of reser$e fcility cte'ories
includin' when pplic%le reser$e effecti$eness
fctors initilly set t one 1C
c Ener'y %lnce e4utions for ech node in the
mret networ model ensurin' tht the net lod
forecst for the end of the trdin' interval t ech
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market tradin* node s determined %y the Market
Operator is metC
d (onstrints representin' limittions on the rmp
rte from the plnt sttus deemed to
pply prior to the commencement of the
trdin' inter$lC
e (onstrints definin' power system reser$e
re4uirements s pro$ided %y the "ystem opertor
under cluse 3.?.3C
f +etwor constrints s implied %y the mret
networ model pro$ided %y the System operator
under cluse 3.?.3C
' -oss nd impednce chrcteristics of mret
networ lines s d$ised %y the "ystem opertor
under cluse3.?.3 nd defined in AppendiB A2C
h (onstrints on ,L&( lin opertions s d$ised %y
the "ystem opertor under cluse 3.?.3 nd
defined in AppendiB A2C
i Power flow e4utions s defined %y &(
pproBimtion to n A( power flow within A( su%:
systems or e4ui$lent mthemticl
representtionC(As amended *- DOE DC N$' 998:
9:999 daed 9 an+a!- 998)
Any o$erridin' constrints imposed on the
recommendtion of the "ystem opertor in
ccordnce with cluse 3.?.13C nd
Any dditionl constrints due to ncillry ser$ices
or system security re4uirements.
3.6.1.? The market dispatc optimi,ation model shll %e desi'ned
so tht su%ect to the pproBimtions nd dustments
pro$ided for %y cluse 3.6.><
It will produce n optimal dispatc 'i$en the
o%ecti$e defined %y cluse 3.6.1.3 nd the
constraint structure defined %y cluse 3.6.1.> ndspecifyin' dispatc tr'ets for ech sceduled
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*eneratin* unit sceduled load and reserve
/acility
% It will produce schedule of flows on ech
trnsmission line correspondin' to the optiml
disptch determined in ccordnce with cluse
3.6.1.? C
c It will produce ener'y prices for ech mret
trdin' node nd when pplic%le reser$e price for
ech reser$e re'ion so tht the recommended
disptch tr'ets for ech indi$idul Trdin'
Prticipnt would %e optiml for tht prticipnt t
those prices 'i$en their offers nd demnd %ids
nd fter ccountin' for other constrints which
my ffect tht Trdin' Prticipnt nd
d It will perform its functions in ccordnce with the
performnce stndrds ppro$ed %y the PEM Board .
0'8' C$ns!a#n 7#$,a#$n C$e//#"#ens
3.6.2.1 The constrint $ioltion coefficients shll<
e set so s to ensure tht the market dispatc
model will lwys find solution which stisfies ll
constraints! if such solution eBistsC
% e set so s to ensure tht %indin' constrints re
prioriti5ed such tht constrints resultin' in the
lowest reduction in the cp%ility of the networ
lod or 'enertin' units will occur firstC nd
c e set so s to ensure tht the prices produced %y
the mret optimi5tion l'orithm will %e
pproprite in ll the circumstnces tin'
into considertion the processes defined in section
3.10 to dust or o$erride those prices for
settlement purposes.
3.6.2.2 The constraint violation coe//icients my<
Lry ccordin' to the time of dy or on ny other
%sis s determined %y the #ret *pertor
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% Increse pro'ressi$ely s the constrint %ecomes
more se$ereC nd
c Increse or decrese s function of the len'th of
time for which the constraint hs %een $iolted.
3.6.2.3 The constraint violation coe//icients for the nodl ener*y
'alance e1uations referred to in cluse 3.6.1.> c<
!ill %e nown s the nodl $lue of lost lod nodl
Lo--C nd
% #y $ry from node to node ndDor %e set so s to
reflect lod sheddin' priorities.
3.6.2.> The Market Operator in coordintion with the "ystem
*pertor nd in consulttion with the !E"# #em%ers shll
re'ulrly re$iew the ppropriteness nd pplic%ility of
constrint $ioltion coefficients le$els in ccordnce with
cluse 10.>.11.1C nd re$ise s my%e necessry to ensure
tht it reflects the ctul conditions of the networ. "uch
re$isions shll %e ppro$ed %y the PE# ord nd shll %e
pu%lished in ccordnce with the timet%le. (Added as pe!
DOE DC' N$' 99:90:9992 daed Ma!"h 99)
0'8'0 Ine!p!ea#$n $/ M$de, O+p+s
The output of the market dispatc optimi,ation model is to %e
interpreted s pro$idin' ener*y nd when pplic%le reserve dispatc
tr'ets for the end of ech tradin* interval to which the market
dispatc optimi,ation model is pplied.
0'8'2 M$de,#n% App!$#ma#$ns
3.6.>.1 If the Market Operator deems it to %e pproprite in ll
the circumstnces the market dispatc optimi,ation
model my incorporte reson%le pproBimtions so s to
render the optimi5tion pro%lem sol$%le usin' n
est%lished optimi,ation metodolo*y such s liner
pro'rmmin'.
3.6.>.2 Any pproBimtions introduced in ccordnce with cluse
3.6.>.1<
#y in$ol$e producin' piece:wise linerpproBimtion to non:liner functionC
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% #y in$ol$e producin' con$eB pproBimtion to
non:con$eB functionC
c #y include utomted procedures to del with
situtions in which choice shll %e mde to
impose or relB certin constraints! s pro$ided for
in cluse 3.?.13C nd
d "hll preser$e under ll opertin' conditions n
ccurcy which is 'enerlly ccept%le to ll WESM
mem'er s nd prticulrly to ny %radin*
Participants directly ffected %y such
pproBimtions.
0'8'3 M$de, De5e,$pmen
)rom time to time the System operator nd the Market Operator shll
in$esti'te the scope for further de$elopment of the market dispatc
optimi,ation model %eyond the minimum re4uirements specified in
cluse 3.6.1 nd su%mit their recommendtions in report to the PEM
Board for consulttion with WESM mem'er s.
(As amended *- DOE DC N$'993::99 daed N$5em*e! 993)
0'8'8 Ma!.e Se,emen
The mret shll %e clered prices determined nd disptch
determined ccordin' to the model results for ech tradin* interval in
the form tht is written. The model results shll not %e chllen'ed eB:
post.
In the e$ent tht %radin* Participants identify solution inconsistencies
with the stted definition nd o%ecti$es of the model the Market
Operator will formulte pln to correct the model.
+otwithstndin' such model solution errors the spot market shll
continue to %e clered ccordin' to the model results until model
re$ision is put into ser$ice in ccordnce with cluse 3.6.?.
0'; MARKET PROECTIONS
The Market Operator shll prepre nd pu'lis #eek aead pro2ections nd
day aead pro2ections usin' the market dispatc optimi,ation model in
ccordnce with the timeta'le.
0';' Wee. Ahead P!$4e"#$ns
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3.@.1.1 Week aead pro2ections shll %e prepred %y the Market
Operator nd pu'lised dily in ccordnce with the
timeta'le to ssist %radin* Participants to nticipte nd
respond to the rn'e of spot market conditions which
mi'ht reson%ly %e eBpected to occur o$er the
forthcomin' wee.
3.@.1.2 Market pro2ections shll %e prepred for ll tradin*
intervals within the rele$nt market ori,on s defined in
the timeta'le.
0';' Da- Ahead P!$4e"#$ns
3.@.2.1 ay aead pro2ections shll %e prepred usin' the
market dispatc optimi,ation model %y the Market
Operator nd pu'lised re'ulrly throu'h the dy in
ccordnce with the timeta'le to ssist %radin*
Participants to nticipte nd respond to the rn'e of spot
market conditions which mi'ht reson%ly %e eBpected to
occur o$er the forthcomin' dy.
3.@.2.2 Market pro2ections shll %e prepred for ll tradin*
intervals within the rele$nt market ori,on s defined in
the timeta'le.
0';'0 P!epa!a#$n $/ Ma!.e P!$4e"#$ns
3.@.3.1 Ech market pro2ection shll te into considertion<
The net#ork service provider data prepred in ccordnce
with cluse 3.?.2C
% Reserve re1uirements the nticipted market net#ork
model con/i*uration! constraints and system security
re4uirements for ech reserve re*ion! s d$ised %y the
System operator in ccordnce with cluse 3.?.3C
c The forecst demnd informtion prepred in ccordnce
with cluse 3.?.>C
d The *eneration o//er informtion su%mitted %y ech
rele$nt %radin* Participant in ccordnce with cluse
3.?.?C
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e The loadin* levels for ech non:scheduled nd &RE
*eneratin* units with intermittent ener*y resource in
ccordnce with cluse3.?.?C nd
f !hen pplic%le the reserve o//er informtion su%mitted
%y ech rele$nt Trdin' Participant in ccordnce with
cluse3.?.@ nd 3.?..
3.@.3.2 Prior to the preprtion of ech set of market pro2ections
te Market Operator shll in consulttion with the System
operator prepre n eBpected unrestrined net load
/orecast in ccordnce with the procedures de$eloped
under cluse 3.?.> nd such num%er of other lod
scenarios s my %e determined in consulttion with !E"#
Participants nd ppro$ed %y the PEM Board .
3.@.3.3 The #ret *pertor shll prepre mret proection
correspondin' to ech lod scenrio de$eloped under
cluse 3.@.3.2.
3.@.3.> !hen pro%%ility of si'nificnt filure in the power
system hs %een d$ised to the "ystem opertor the
#ret *pertor my in consulttion with the "ystem
*pertor lso prepre mret proections in which the
constrint structure is modified to represent sitution in
which such filures occur.
3.@.3.? #ret proections shll %e prepred %y the #ret
*pertor throu'h the ppliction of the mret disptch
optimi5tion model to ll trdin' inter$ls within the
rele$nt mret hori5on s defined in the timet%le.
3.@.3.6 !hen preprin' market pro2ection the strtin'
conditions for ech successi$e tradin* interval shll %e
determined<
In respect of the first tradin* interval s the
ctul or eBpected po#er system conditions t the
time of the commencement of the market
pro2ectionC nd
% In respect of su%se4uent tradin* intervals s theproected po#er system conditions determined %y
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the market dispatc optimi,ation model for the
end of the pre$ious tradin* interval in tht market
pro2ection.
3.@.3.@ The #ret *pertor shll pu%lish dditionl updted
$ersions of mret proection in the e$ent of chn'es
which in the opinion of the #ret *pertor re mteril
nd which should %e communicted to Trdin'
Prticipnts.
3.@.3. The Market Operator shll document the eBct procedure
it uses for preprtion of market pro2ections nd me the
procedure $il%le to ll %radin* Participants.
0';'2 P+*,#shed In/$!ma#$n
3.@.>.1 sed on the informtion referred to in cluse 3.@.3 ech
market pro2ection pu'lised %y the Market Operator in
ccordnce with the timeta'le shll contin the followin'
informtion for ech tradin* interval in the period co$ered
%y the market pro2ection7
The ssumed net load /orecast t ech market
net#ork node! plus re4uired reserves for ech
reserve re*ion
% The re4uired le$el of reserve for ech reserve
re*ion
c Any modifictions to plant or net#ork $il%ility
which the Market Operator my h$e mde under
cluse 3.?.13 in formin' this proectionC
d Proected ''re'te dispatc of scheduled
*eneratin* units nd sceduled load t ech
market net#ork node
e Proected ''re'te clered reserve 1uantities for
reser$e re'ions nd reserve /acility cate*ories
f The proected market price for ech market
tradin* nodeC
' !hen pplic%le pro2ected reserve prices for ech
reserve re*ion ndh Identifiction nd 4untifiction of<
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1 Proected load seddin* re4uirementC
2 Proected violations o/ system security
3 Proected filure to meet reserve
re4uirementsC
> %radin* intervals for which low or
inde4ute cpcity mr'ins re proected
to pplyC nd
? Proected con'estion on market net#ork
linesC nd
6 Constraint violation coe//icients.
0'< SCHEDULIN6 AND DISPATCH IMPLEMENTATION
0'<' Resp$ns#*#,##es $/ he Ma!.e Ope!a$!
Prior to commencement of ech trdin' inter$l the Market Operator
shll in consulttion with the 7rid *pertor nd in ccordnce with the
timeta'le7
(As amended *- DOE DC N$'990::99 daed N$5em*e! 993) &etermine or estimte the sttus of ll 'enertion fcility for
tht tradin* intervalC
% Prepre forecst of the unrestrained net load eBpected t ech
market tradin* node for the end of tht tradin* intervalC
(As amended *- DOE DC N$'993::99 daed N$5em*e! 993)
c Adust tht unrestrained net load /orecast to ccount for load
seddin*! if re4uired in ccordnce with cluse 3.9.?C
d &etermine the most pproprite networ confi'urtion nd stte
to %e ssumed for the end of tht tradin* intervalC
e =se the market dispatc optimi,ation model to determine the
tar*et loadin* level in MW for ech sceduled *eneratin* unit or
sceduled load nd for ech reserve /acility for the end of tht
tradin* interval usin' the ltest dt from the System operator
nd %radin* ParticipantsC nd
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f "u%mit to the System operator the dispatc scedule continin'
the tr'et loadin* levels to %e chie$ed t the end of tht
tradin* interval determined in ccordnce with cluse 3..1 e.
0'<' Resp$ns#*#,##es $/ he S-sem $pe!a$!
3..2.1 &urin' ech tradin* interval the System Operator shll
use its reson%le ende$ors to<
Implement the dispatc tr'ets determined %y the
Market Operator
% #intin system security consistent with the
re4uirements of the $rid Code
c Implement load seddin* if necessry s pro$ided
%y cluse 3.9C
d &isptch Constrain+on or Constrain+o// 'enertors
or Must+Run nits if ll $il%le fre4uency
re'ultion nd contin'ency reser$es re eBhusted
durin' trdin' inter$l. The System Operator my
lso disptch 'enertors s Must+Run nits in
specific 'rid res which h$e %ecome isolted from
the rest of the 'rid nd in which the #ret
*pertor cnnot determine the 'enertor
schedulesC
e In reltion to d %o$e the System Operator shll
incorporte to its Ancillry "er$ice Procurement
Pln #ust:Run =nits s n dditionl type of
Ancillry "er$ice. )or this purpose the criteri nd
procedures de$eloped under (luse 3.?.13 shll %e
re$ised ccordin'lyC nd
f Inter$ene where necessry s pro$ided %y (luses
6.3 nd 6.?.
As amended *- DOE DC N$'92:9:99 daed
2 O"$*e! 92)
3..2.2 After ech Tradin* 0nterval in ccordnce with the
%imeta'le the System Operator shll d$ise the MarketOperator of<
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"itutions in which it %ecme necessry for disptch
instructions to de$ite from the disptch tr'ets
determined %y the Market Operator durin' the
tradin* intervalC
% 5oad Seddin* or other directions issued %y the
System operator durin' the %radin* 0ntervalC
(As amended *- DOE DC N$'993::99 daed
N$5em*e! 993)
c "i'nificnt incidents in which contin*ency reserve
ws clled upon durin' the tradin* intervalC
d &et#ork constraints which ffected dispatc durin'
the tradin* interval
e indin' security constrints which ffected disptch
durin' the trdin' inter$lC nd
f *pertionl irre'ulrities risin' durin' the
trdin' inter$l includin' %ut not limited to ny
circumstnces in which there ws prim fcie
e$idence of filure to follow disptch instructions.
The System Operator shll liewise pro$ide disptch
de$ition report to the Market Operator in ccordnce
with the %imeta'le! detilin' mon' others the
circumstnces nd disptch le$els of units tht were
Constrained+on or Constrained+o// or put on must:run
durin' %radin* 0nterval. As amended *- DOE DC
N$'92:9:99 daed 2 O"$*e! 92
0'<'0 C$mm+n#"a#$n $/ a!%e ,$ad#n% ,e5e,s
The System operator shll communicte the tr'et loadin* levels to
%radin* Participants for ech tradin* interval prior to the
commencement of tht tradin* interval in ccordnce with the
timeta'le nd consistent with the $rid Code.
0'<'2 D#spa"hed T!ad#n% Pa!#"#pans
%radin* Participants who re dispatced shll use reson%le ende$ors
to chie$e linear ramp rate o$er the tradin* interval rech the tr'et
loadin* level %y the end of tht tradin* interval nd within the dispatc
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tolerances specified in cluse 3..@ nd those %radin* Participants will
not %e re4uired to operte in ny different fshion unless re4uired to<
Respond in ccordnce with reserve or ancillary service
contrctsC or
% Respond to direction in ccordnce with cluses 6.3 nd 6.?.
0'<'3 Ramp Rae $/ T!ad#n% Pa!#"#pan
!here pplic%le %radin* Participants will %e ssumed to h$e linear
ramp rate o$er tht tradin* interval to rech the tr'et loadin* levels
%y the end of tht tradin* interval.
0'<'8 De5#a#$ns /!$m he Ramp Rae
If %radin* Participants in some prt of the po#er system de$ite in
''re'te from the ssumed 5inear Ramp Rate for ny reson or s
result of ny cuse includin' the initition of 5oad Seddin* under
(luse 3.9.3 these de$itions shll %e delt with %y the System
Operator utili5in' the Reserves! or other Ancillary Services scheduled to
del with such circumstnces in ccordnce with (luse 3.3.
%radin* Participants re re4uired to comply with liner rmpin' in ny
trdin' inter$lC otherwise the Market Operator or the System
Operator shll report the 'enertor to the Market Surveillance
Committee.
As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
0'<'; D#spa"h T$,e!an"es
3..@.1 ispatc tolerances shll %e set to llow limits on the
eBtent to which %radin* Participants my de$ite from
dispatc tr'ets issued %y the System operator .
3..@.2 The Market Operator shll mintin nd pu'lis dispatc
tolerances stndrds de$eloped %y the System operator for
ech type of plnt nd loction in ccordnce with the
$rid Code and istri'ution Code.
0'<'< San"#$ns $/ T!ad#n% Pa!#"#pans
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Any %radin* Participant who consistently fils to use its reson%le
ende$ors to ct in ccordnce with ispatc instructions issued under
(luse 3..3 or who %reches the ispatc %olerance stndrds
pu'lised under (luse 3..@.2 my %e li%le of snction imposed
under (luse @.2.
%radin* Participants tht re not complint to the ispatc Scedule or
liner rmpin' ssumptions tht h$e %een identified %y the System
Operator to cuse the constrinin':off of other 'enertin' units shll
compenste the isplaced $enerator or $enerators in ccordnce with
the mechnism to %e de$eloped %y the #ret *pertor under (luse
3.13.1>.3.
As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
0'= TREATMENT OF LOAD SHEDDIN6? ECESS 6ENERATION AND RESER7E
7IOLATION
(As amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
0'=' D#!e"#$n $ C$nd+" L$ad Shedd#n%The System Operator my direct WESM mem'er to conduct load
seddin* in response to<
(As amended *- DOE DC N$' 92:90:999; daed 8 Ma!"h 92)
An o$erll short'e of ener*y t node or in re'ion specified in
the market net#ork model or
% *ther net#ork conditions s determined %y the System operator s
ccordnce with the procedures est%lished under the $rid Code
and istri'ution Code.
0'=' Ma!.e Ope!a$! Ad5#"e $n L$ad Shedd#n%
In the e$ent tht<
ay aead pro2ections performed under cluse 3.@C or
% ispatc optimi,ation performed under cluse 3.indicte tht
nodl ener*y prices re eBpected to %e e4ul to or eBceed nodl
Lo-- t ny customer nodes in the market net#ork model then
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the Market Operator shll immeditely inform the System
operator of the lielihood of inititin' load seddin* t those
nodes.
0'='0 S-sem $pe!a$! Resp$ns#*#,#- $ In##ae L$ad Shedd#n%
The System Operator .
"hll if d$ised %y the #ret Operator under cluse 3.9.2
consider the need to initite load seddin* t those nodes or t
other nodes fter tin' ccount of the load seddin* tr'ets
from the rele$nt dispatc optimi,ation nd ny other
considertions which the System operator considers rele$nt
under the $rid Code and istri'ution Code nd ny other
pplic%le re'ultory instrumentC nd
% #y initite load seddin* in response to ny other circumstnces
which it reson%ly considers necessittes such ction under the
$rid Code and istri'ution Code or ny other pplic%le
re'ultory instrument.
0'='2 Ad5#s#n% $/ L$ad Shedd#n%
If it is nticipted tht load seddin* will occur in tradin* interval the
System operator shll s soon s possi%le d$ise its lod sheddin' plns
to<
The Market Operator C nd
% WESM mem'ers who re liely to %e directly ffected %y such
load seddin*. (As amended *- DOE DC N$' 92:90:999;
daed 8 Ma!"h 92)
0'='3 Re5#s#n% F$!e"ass
If d$ised %y the System operator of the lielihood of load seddin* in
ny tradin* interval under cluse 3.9.> the Market Operator shll s
soon s possi%le<
If prcticl within the time frme reminin' %efore the strt of
tht tradin* interval re$ise the load /orecasts to %e used to
determine the dispatc scedule for tht tradin* interval in
ccordnce with cluse 3.?.>.> to ccount for those load
seddin* plansC nd
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As amended *- DOE DC N$'92:9:99 daed 2
O"$*e! 92)
3.9..3 &urin' %radin* 0nterval if E3cess
$eneration is imminent or is detected in the Po#er
System %y the System Operator in ccordnce with the
$rid Code nd it is est%lished tht the E3cess $eneration
is %ein' cused %y $eneratin* System tht is not
followin' its disptch schedule or o%ser$in' liner rmp
rte then the $eneration Company representin' the
$eneratin* System in the mret my %e li%le of
snction under (luse @.2. The 7enertion (ompny
representin' the 7enertin' "ystem tht is not followin'
its ispatc Scedule or o%ser$in' liner rmp rte
howe$er shll compenste other $eneration System tht
hs %een constrined:off %y the System Operator . "uch
conditions shll lso %e considered in the procedures to %e
de$eloped under (luse 3.9..2.
As amended *- DOE DC N$'92:9:99 daed 2
O"$*e! 92)
0'='= Mana%emen P!$"ed+!es /$! Rese!5e 7#$,a#$n
(Added as pe! DOE DC N$' 998:9:999 daed 9 an+a!- 998)
3.9.9.1 "hould either the disptch optimi5tion or ny mret
proection indicte $ioltion of reser$e re4uirement
the Market Operator shll< (Added as pe! DOE DC N$'
998:9:999 daed 9 an+a!- 998)
Promptly d$ise the System operator tht it my %e
necessry to reduce the le$el of the reser$e
re4uirement.
% Reduce the reserve re4uirement %y the minimum
mount to le$el tht pre$ents $ioltion of tht
re4uirement.
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c "ol$e the market dispatc optimi,ation model with
the reduced reserve re4uirement.
3.9.9.2 The prices determined in cluses 3.10.2 3.10.6 nd
3.10.10 will %e deri$ed from the solution of the market
dispatc optimi,ation model pro$ided for in cluse 3.9.9.1
c (Added as pe! DOE DC N$' 998:9:999 daed 9
an+a!- 998)
0'9 DETERMINATION OF MARKET PRICES
0'9'Ca,"+,a#$n $/ P!#"es
)or ech tradin* interval the Market Operator shll clculte nd
pu%lish in ccordnce with the timeta'le<
E3+ante nodal ener*y prices in ccordnce with cluse 3.10.2C
% E3+ante ,onal ener*y prices in ccordnce with cluse 3.10.3C
c E3+post nodal ener*y prices in ccordnce with cluse 3.10.6C
d E3+post ,onal ener*y prices in ccordnce with cluse 3.10.C nd
e !hen pplic%le ,onal reserve prices in ccordnce with cluse
3.10.10.
0'9'Dee!m#na#$n $/ E:Ane N$da, Ene!%- P!#"eThe e3+ante nodal ener*y price for ech market tradin* node in ny
tradin* interval shll su%ect to cluse 3.10.? %e determined s the
sado# price on the ener*y 'alance e1uation or e4ui$lent
mthemticl formultion for tht market tradin* node formed in
ccordnce with cluse 3.6.1.> c in the dispatc optimi,ation
performed for tht tradin* interval in ccordnce with cluse 3..1. (As
amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
0'9'0Dee!m#na#$n $/ E:Ane @$na, Ene!%- P!#"es
E3+ante ,onal ener*y prices shll %e determined for ech customer
pricin* ,one.
0'9'2P+*,#sh#n% E:Ane P!#"es A""$!d#n% $ T#mea*,e
The Market Operator shll pu'lis the e3+ante nodal ener*y prices nd
te e3+ante ,onal ener*y prices! prior to the commencement of the
tradin* interval to which they pply in ccordnce with the timeta'le.
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0'9'3P!#"#n% E!!$! N$#"e
In the e$ent where no e3+ante prices cn %e determined or
communicted within the timefrme specified %y the timeta'le or the
clculted prices re %elie$ed to %e in error s result of load
seddin* occurrence of constraints violation coe//icients or for ny
other reson< (As amended *- DOE DC 993::99 daed
N$5em*e! 993)
The Market Operator my s soon s possi%le fter the end of
tradin* interval issue pricin* error notice in which cse the
e3+post 1uantities nd the e3 post prices determined ccordin' to
cluse 3.10.@ shll lso ser$e s eB:nte 4untities nd eB:nte
prices. If no eB:post prices cn %e determined or the clculted
prices re %elie$ed to %e in error s result of the imposition or
relBtion of constrints pursunt to cluse 3.?.13.1 the Market
Operator shll re:run the Market ispatc Optimi,ation Model.
(As amended *- DOE DC N$'993::99 daed N$5em*e!
993 and /+!he! amended *- DOE DC N$' 998:93:998 daed
3 Ma- 998)
The Market Operator shll de$elop nd pu%lish the procedures for
the determintion of the mret re:run prices. "uch procedures
shll pro$ide the criteri nd conditions for the mret re:run nd
the timet%le for implementtion. (As amended *- DOE DC
N$'99:90:9992 daed Ma!"h 99)
% If no pricin* error notice is issued within the time specified in the
fore'oin' pr'rph the e3+post prices nd 4untities shll ser$e
s eB:nte prices nd 4untities nd shll stnd irrespecti$e of
the outcome of ny su%se4uent in$esti'tions or resolutions of
ny dispute.
(As amended *- DOE DC N$' 993::99 N$5em*e! 993)
c "hould the pricin' error lso include reserves the reserve
4untity nd price determined in the e3+post run shll ser$e s
the reserve 4untity nd prices. (Added as pe! DOE DC N$'
993::99 N$5em*e! 993)
0'9'8 Dee!m#na#$n $/ E:P$s N$da, Ene!%- P!#"e
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The e3+post nodal ener*y price for ech market tradin* node shll %e
determined s the sado# price on the ener*y 'alance e1uation or
e4ui$lent mthemticl formultion for tht market tradin* node
formed in ccordnce with cluse 3.6.1.> c in e3+post dispatc
optimi,ation performed in ccordnce with the timeta'le to
determine tr'et dispatc le$els for the end of tht tradin* interval
ssumin'<(As amended *- DOE DC N$' 993::99 daed
N$5em*e! 993 and /+!he! amended *- DOE DC N$' 998:9:999
daed 9 an+a!- 998)
the plant sttus t the end of tht tradin* interval s determined
for the eB:post disptch optimi5tion or if lod sheddin' occurred
in tht tradin* interval the plant sttus which would h$e
pertined t the end of tht tradin* interval s indicted in the
tr'ets determined %y the eB:post disptch for tht tradin*
intervalC(As amended *- DOE DC N$' 993::99 N$5em*e!
? 993)
% The *eneration o//ers which pplied t the %e'innin' of tht
tradin* interval. (As amended *- DOE DC N$' 993::99
N$5em*e! ? 993)
c The unrestrained load determined from meterin* data or
estimted t the end of tht trdin' inter$l to pply t ech
market net#ork node for tht tradin* interval. (As amended *-
DOE DC N$' 993::99 N$5em*e! ? 993)
d A mret networ confi'urtion nd networ stte which the
#ret
*pertor in consulttion with the System operator in its
reson%le opinion determines to %est represent net#ork
conditions pertinin' for the durtion of the tradin* interval s
pro$ided for %y the procedures de$eloped under cluse 3.10.@C
nd
e Any rele$nt constrints recommended %y the System Operator
to represent system security conditions or ctul 'enertion
performnce o$er the tradin* interval s pro$ided for %y the
procedures de$eloped under cluse 3.10.@.0'9';P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e
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The Market Operator in consulttion with WESM participants nd
su%ect to ppro$l %y the PEM Board shll de$elop nd pu%lish the
procedures to %e employed in cluses 3.10.6 d nd e in est%lishin'
the networ confi'urtion nd other constrints to %e ssumed for the
determintion of e3+post nodal ener*y prices for circumstnces in which
power system conditions mterilly chn'e durin' the tradin* interval
with $iew to ensurin' tht<(As amended *- DOE DC N$' 993::99
daed N$5em*e! 993)
(onsistency is mintined %etween the mret networ
confi'urtion nd stte determined in ccordnce with cluse
3.10.6 d ny constrints determined in ccordnce with cluse
3.10.6 e nd the unrestrined net lods mesured or estimted
for ech mret networ node in ccordnce with cluse 3.10.6
cC nd
% The eB:post prices produced in ccordnce with cluse
3.10.6properly nd firly represent conditions t the end of the
trdin' inter$l'
0'9'<Dee!m#na#$n $/ E:P$s @$na, Ene!%- P!#"es
The e3+post ,onal ener*y prices for ech tradin* interval shll %e lod
wei'hted $er'e of the e3+post nodal ener*y pr ices within customer
pricin* ,one.
0'9'=Dee!m#na#$n $/ E:Ane And E:P$s Ene!%- Se,emen P!#"es
"u%ect to cluse 3.10.? the e3+ante ener*y settlement prices and e3+
post ener*y settlement prices for ech market tradin* node in ech
tradin* interval shll %e<
The e3+ante ,onal ener*y price and te e3+post ,onal ener*y
price for tht tradin* interval determined for tht customer
pricin* ,one in ccordnce with cluses 3.10.3 nd 3.10.
respecti$ely if tht node is deemed to %e customer node nd to
lie in defined customer pricin* ,one nd
% The e3+ante nodal ener*y price and te e3+post nodal ener*y price for tht node in tht tradin* interval determined in
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ccordnce with cluses 3.10.2 nd 3.10.6 respecti$ely for ll
other nodes.
0'9'9Dee!m#na#$n $/ @$na, Rese!5e P!#"e
!hen pplic%le the ,onal reserve price for ech market reserve ,one
in ech tradin* interval shll %e determined s the sado# price on the
rele$nt reserve re1uirement constraint defined in ccordnce with
cluse 3.6.1.> e in the dispatc optimi,ation for tht tradin* interval
nd pu'lised %y the Market Operator %efore the strt of tht tradin*
interval.
0' MARKET INFORMATION
0'' Ma!.e In/$!ma#$n
3.11.1.1 The Market Operator shll pu'lis the followin'<
&odal ener*y prices for ech market tradin* nodeC
% 8onal ener*y prices for ech customer ener*y
pricin* ,one
c !hen pplic%le reserve prices for ech reserve
re*ion nd
d indin' net#ork constraints! for ech tradin*interval in ccordnce with the timeta'le.
3.11.1.2 As prt of the informtion record under cluse ?.2.? the
Market Operator shll retin detils of<
)inl dispatc offers nd when pplic%le reserve
offersC
(As amended *- DOE DC N$'993::99 daed
N$5em*e! 993)
% )inl dispatc %idsC nd
c Actul $il%ilities of 'enertin' units nd
scheduled lod
d Includin' for ech trdin' interval nd disptch
offer nd disptch %id<
e The identifiction of the %radin*
Participant su%mittin' the dispatc %id or dispatc
offer
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(As amended *- DOE DC N$'993::99 daed
N$5em*e! 993)
f The disptch %id or disptch offer prices nd
4untitiesC nd
' The time t which ny finl disptch offer or
disptch %id ws mde.
3.11.1.3 Ech tradin* day in ccordnce with the timeta'le the
Market Operator shll pu'lis7
The sceduled *eneration or sceduled load nd
sceduled reserves for ech sceduled *eneratin*
unit nd sceduled load respecti$ely in ech
tradin* interval for the pre$ious tradin* day C nd
% A summry of the informtion pro$ided to it with
respect to ech tradin* interval %y the System
operator in ccordnce with cluse 3..2.2.
0'' A""ess $ In/$!ma#$n
3.11.2.1 All informtion reltin' to the opertion of the spot
market tht the Market Operator is re4uired to pu'lis in
ccordnce with the WESM Rules shll %e mde $il%le
%y the Market Operator $i the electronic communications
system.
3.11.2.2 If the Market Operator mes informtion $il%le under
cluse 3.11.2.1 %y dditionl mens other thn the
electronic communications system! the Market Operator
my t its discretion chr'e fee for ccess to tht
informtion pro$ided tht such fee reflects the Market
Operator ;s costs of pro$idin' tht informtion.
0' FINANCIAL TRANSMISSION RI6HTS
0''Ma!.e /$! T!ansm#ss#$n R#%hs
!hen necessry or reson%ly fesi%le the Market Operator shll
est%lish mret for transmission ri*ts s ppro$ed %y the PEM
Board .
0''P+*,#"a#$n $/ Rena, In/$!ma#$n
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The Market Operator shll re'ulrly pu'lis in summry form the rentls
ssocited with ech market net#ork line s clculted under cluse
3.13.12.
0''0F+!he! T!ansm#ss#$n R#%hs
)rom time to time nd t lest nnully the Market Operator shll
ssess the potentil for the issunce of further transmission ri*ts of
the form pro$ided for in the settlements process defined %y cluse 3.13.
0''2Mae!s $ C$ns#de! #n Assessmen
The ssessment shll te ccount of the<
&emnd for transmission ri*ts %etween prticulr loctions s
e$idenced %y WESM mem'er su%missionsC
% =ncommitted physicl cpcity %etween those loctions s
indicted %y the difference %etween the physicl cpcity of the
lines in$ol$ed nd the transmission ri*ts lredy issuedC nd
c Economic fesi%ility of supportin' further transmission ri*ts s
indicted %y the difference %etween the line rentl trdin'
mounts clculted for prticulr lines in ccordnce with cluse
3.13.12 nd the cost of supportin' transmission ri*ts
lredy issued s e$idenced %y the transmission ri*ts trdin'
mounts clculted in ccordnce with cluse 3.13.13.
0''3Iss+#n% T!ansm#ss#$n R#%hs
3.12.?.1 %ransmission ri*ts my %e issued %y the Market Operator
nd my %e settled $i the settlements system in
ccordnce with cluse 3.13.1? pro$ided<
The issuer of the transmission ri*t enters
into commitment to support tht
transmission ri*t! in ccordnce with cluse
3.13.2 dC
% The issuer of the transmission ri*t complies with
such prudential re1uirements s my %e ppro$ed
%y the PEM Board under cluse 3.1> tin' into
ccount the implied potentil eBposure of the
issuer to settlement price differences %etween
the nodes in$ol$edC
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c The transmission ri*t is defined %etween two
markets tradin* nodes nd
d The rele$nt detils of the transmission ri*ts re
notified to the Market Operator in ccordnce with
cluse 3.13.2.
3.12.?.2 A WESM mem'er my re4uest the Market Operator to
me $il%le transmission ri*t t n pproprite
price.
3.12.?.3 The issunce of transmission ri*t is not to %e
unreson%ly withheld.
0''8A""$+n#n% /$! Ne In"$me
The net income tht will %e deri$ed %y the Market Operator from the
trnsctions re4uired under cluse 3.13.16 or from the sle of
transmission ri*ts shll %e clerly ccounted for nd ten into
ccount when settin' the llow%le chr'es under ny re'ultory
instruments pplic%le to the Market Operator .
0'0 SETTLEMENT UANTITIES AND AMOUNTS
0'0' S+*m#ss#$n $/ B#,ae!a, C$n!a" Daa3.13.1.1 %radin* Participants who sell electricity pursunt to
'ilateral contracts nd wish those 'ilateral contracts to
%e ccounted for in settlements shll fter ech tradin*
day in ccordnce with the %illin' nd settlements
timet%le< (As amended *- DOE DC N$' 993::99
daed N$5em*e! 993)
"u%mit schedule to the Market Operator
specifyin' the
#!, 'ilateral sell 1uantities t ech relevant
market tradin* node in ech tradin* interval of
tht tradin* day
% Identify the counterprty to the %ilterl contrct
nd the prty tht will py the line rentl trdin'
mount ssocited with the %ilterl contrct
4untity su%mittedC pro$ided howe$er tht in cse
only one of the %ilterl counter prties is
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re'istered s irect WESM Mem'er! tht WESM
Mem'er shll %e the prty tht will py the line
rentl to the Market Operator C nd(As amended *-
DOE DC N$' 992:9;:99< daed ; +,- 992 and
/+!he! amended *- DOE DC N$' 998::990
daed 9= N$5em*e! 998)
c Pro$ide e$idence tht the counterprty to the
'ilateral contract 'rees with the su%mission mde
under this cluse 3.13.1.1. "uch e$idence shll %e
ttched to the su%mission of schedule in
3.13.1.1. (As amended *- DOE DC N$' 99:90:
9992 daed Ma!"h 99)
3.13.1.2 Bilateral sell 1uantities su%mitted in ccordnce with
cluse3.13.1.1 re to %e deemed to %e 'ilateral 'uy
1uantities for the prty identified in cluse 3.13.1.1 %
t the sme market tradin* node.
0'0'S+*m#ss#$n $/ T!ansm#ss#$n R#%h Daa
3.13.2.1 This section shll pply only upon commencement of the
transmission ri*ts mret est%lished under cluse
3.12.1.
3.13.2.2 %radin* Participants who hold transmission ri*ts nd wish
to h$e those transmission ri*ts ccounted for in
settlements shll fter ech tradin* day! in ccordnce
with the timeta'le su%mit to the Market Operator
schedule specifyin'<
The sendin* node nd receivin* node %etween
which ech transmission ri*t ppliesC
% The #!, 4untities of ech transmission ri*t in
eac tradin* interval of tht tradin* day s they
pply t the sendin* node
c The 'reed loss differentil ssocited with ech
transmission ri*t if ny s proportion of the
4untity specified in cluse3.13.2 %C nd
d Tht the System operator is in 'reement with thesu%mission mde under cluse 3.13.2 nd
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pro$idin' e$idence of tht 'reement nd will
co$er ny deficit in tht System operator ;s
settlements position with the spot market under
cluse 3.13.1?.1% risin' s result of honorin'
this transmission ri*t.
0'0'0Daa /$! B#,ae!a, C$n!a"s and T!ansm#ss#$n R#%hs
The Market Operator shll<
Inform the %radin* Participants which su%mitted dt under
cluse3.13 if ny of the dt pro$ided is in$lid or incompleteC
nd
% If the dt pro$ided under cluse 3.13 is $lid or complete
employ tht dt for settlements purposes in ccordnce with
cluses3.13.@ nd 3.13.13.
0'0'2 @$na, Rese!5e Se,emen +an#-
The ,onal reserve settlement 1uantity for ech %radin* Participant in
ech tradin* interval shll %e clculted s<
The ''re'te cross ll of the %radin* Participant;s fcilities in
the rele$nt reserve re*ion of the reserve tar*et determined %y
the dispatc optimi,ation performed prior to the %e'innin' of
tht tradin* interval in ccordnce with cluse 3..1C multiplied
%y
% The reserve e//ectiveness /actor for tht reserve /acility
cate*ory to %e determined %y the System operator .
0'0'3De/#n#n% he 6!$ss E:Ane Ene!%- Se,emen +an#- /$! Ma!.e
T!ad#n% N$des
3.13.?.1 )or ech tradin* interval the 'ross e3+ante ener*y
settlement 1uantity %efore %ein' dusted for %ilterl
contrcts for ech market tradin* node shll %e
determined %y the Market Operator s follows< (As
amended *- DOE DC N$' 90:90:9993 daed Ma!"h
90)
If the market tradin* node is defined under cluse
3.2.2.1 s lyin' on the %oundry of the po#er
system operted %y the System operator the 'rosse3+ante ener*y settlement 1uantity for tht market
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tradin* node is the $er'e of the net eBpected
flows into the po#er system operted %y the
System operator throu'h the ssocited meter!
s estimted %y the initil conditions ssumed
for the %e'innin' of the tradin* interval nd %y the
/orecast! or tr'et for the end of tht tradin*
interval for tht market tradin* node ssumed in
or estimted %y the dispatc optimi,ation
performed prior to the %e'innin' of tht tradin*
intervalC (As amended *- DOE DC N$' 90:90:
9993 daed Ma!"h 90)
% If the market tradin* node is defined under cluse
3.2.2.2 s *enerator node lyin' on the
interfce %etween net#orks! pprtus or
e4uipment operted %y prties other thn the
System operator the 'ross e3+ante ener*y
settlement 1uantity for the market tradin* node is
the $er'e of the net eBpected flows throu'h
the ssocited meter from the $eneratin*
Company to the Customer side of the meter! s
estimted %y the initil conditions ssumed for
the %e'innin' of tht tradin* interval nd %y the
tr'et 'enertion for the end of tht tradin*
interval for tht *enerator nodeC (As amended *-
DOE DC N$' 90:90:9993 daed Ma!"h 90)
nd
c If the market tradin* node is defined under cluse
3.2.2.2 s customer node lyin' on the
interfce %etween net#orks! pprtus or
e4uipment operted %y prties other thn the
System operator the 'ross e3+ante ener*y
settlement 1uantity for tht market tradin* node is
the ne'ti$e of the mount determined for the
correspondin' 'enertor node in cluse3.13.?.1 %.
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0'0'8De/#n#n% he 6!$ss E:P$s Ene!%- Se,emen +an#- /$! Ma!.e
T!ad#n% N$des
)or ech tradin* interval the 'ross e3+post ener*y settlement 1uantity
%efore %ein' dusted for %ilterl contrcts for ech market tradin*
node shll %e determined %y the Market Operator s follows<
If the market tradin* node is defined under cluse 3.2.2.1 s
lyin' on the %oundry of the po#er system operted %y the
System Operator the 'ross e3+post ener*y settlement 1uantity
for the market tradin* node is the net metered flow into the
po#er system operted %y the System operator throu'h the
ssocited meter pro$ided howe$er tht if the market tradin*
node is customer node! nd there is no ER(:re'istered
em%edded 'enertion fcility ssocited with tht node or the
source of inection cnnot %e trced ny inection shll not %e
ccounted for in determinin' the 'ross e3+post ener*y settlement
1uantity for tht nodeG (As amended *- DOE DC N$' 993::
99 daed N$5em*e! 993 and /+!he! amended *- DOE
C#!"+,a! N$' DC 90:9;:99; daed 8 +,- 90)
% If the market tradin* node is defined under cluse 3.2.2.2 s
*enerator node lyin' on the interfce %etween net#orks!
pprtus or e4uipment operted %y prties other thn the
System Operator the 'ross e3+post ener*y settlement 1uantity for
the market tradin* node is the net metered flows throu'h the
ssocited meter from the $eneration Company to the
Customer side of the meter C nd (As amended *- DOE DC N$'
993::99 daed N$5em*e! 993)
c If the market tradin* node is defined under cluse 3.2.2.2 s
customer node lyin' on the interfce %etween networs
pprtus or e4uipment operted %y prties other thn the
System operator the 'ross e3+post ener*y settlement 1uantity for
the market tradin* node is the ne'ti$e of the mount
determined for the correspondin' *enerator node in cluse
3.13.6.1%.
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d If the net metered flows re'istered throu'h meter is
inconsistent with the eBpected power flows t the market tradin*
node to which tht meter is ssocited the Meterin* Services
Provider shll determine nd shll notify the Market Operator
nd the rele$nt %radin* Participant the pproprite mnner of
determinin' the 'ross e3+post settlement 1uantity for tht
market tradin* node. (Added pe! DOE C#!"+,a! N$' DC 90:9;:
99; daed 8 +,- 90)
0'0'; Ene!%- Se,emen +an#- Ad4+smens /$! B#,ae!a,
)or settlement purposes the eB:nte ener'y settlement 4untity for ny
market tradin* node in ny tradin* interval shll %e determined %y the
Market Operator %y dustin' the 'ross :eB:nte ener'y settlement
4untity for tht market tradin* node nd ny tradin* interval s
mesured in ccordnce with cluse 3.13.? for %ilterl contrct
4untities notified to the Market Operator under cluse 3.13.1.1 or
inferred %y the Market Operator under cluse 3.13.1.1 nd ccepted s
$lid under cluse 3.13.1.2 %y< (As amended *- DOE DC N$' 993::
99 daed N$5em*e! 993) (As amended *- DOE DC N$' 90:90:
9993 daed Ma!"h 90)
"u%trctin' ll 'ilateral sell 1uantities notified for tht node in
tht tradin* interval from the mesured or estimted
'ross ener*y settlement 1uantity for tht node in tht tradin*
intervalC nd
% Addin' ll 'ilateral 'uy 1uantities inferred for tht node in tht
tradin* interval to the mesured or estimted 'ross ener*y
settlement 1uantity for tht node in tht tradin* interval.
0'0'<Dee!m#n#n% he E Ane Ene!%- T!ad#n% Am$+n
)or settlement purposes the e3+ante ener*y tradin* amount for ech
market tradin* node nd tradin* interval will %e determined s the e3+
ante ener*y settlement price for tht node in tht tradin* interval
multiplied %y the e3+ante ener*y settlement 1uantity in #!h for tht
node in tht tradin* interval.
0'0'=Dee!m#n#n% he E P$s Ene!%- T!ad#n% Am$+n
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)or settlement purposes the e3 post ener*y tradin* amount for ech
market tradin* node nd tradin* interval will %e determined s<
The e3+post ener*y settlement price for tht node in tht tradin*
interval multiplied %y the 'ross e3+post ener*y settlement
1uantity for tht node in tht tradin* interval in #!h s
dusted in ccordnce with cluse >.?.2.2C (As amended *- DOE
DC N$' 90:90:9993 daed Ma!"h 90) minus
% The e3+post ener*y settlement price for tht node in tht tradin*
interval multiplied %y the 'ross e3+ante ener*y settlement
1uantity for tht node in tht tradin* interval in #!h. (As
amended *- DOE DC N$' 90:90:9993 daed Ma!"h 90)
0'0'9 Dee!m#n#n% he Rese!5e T!ad#n% Am$+n
3.13.10.1 )or settlement purposes the reserve+tradin* mount for
ech %radin* Participant who supplies reserve to
prticulr reserve re*ion in tradin* interval will %e
determined s the ,onal reserve price for tht reserve
re*ion in tht tradin* interval multiplied %y the ,onal
reserve settlement 1uantity for tht %radin* Participant in
tht reserve re*ion for tht tradin* interval.
3.13.10.2 &urin' the initil opertion of the interim WESM the
reserve tradin* mount shll %e clculted %sed on the
cost of reserves contrcted for %y the System operator .
0'0' Dee!m#n#n% he Rese!5e C$s Re"$5e!- Cha!%e
The reserve cost recovery car*e for settlement purposes will %e
determined for ech %radin* Participant in ech tradin* interval in
ccordnce with the procedures de$eloped under cluse 3.3.?.
0'0' Ca,"+,a#$n $/ L#ne Rena, T!ad#n% Am$+ns
The Market Operator shll clculte the line rentl trdin' mounts for
ech %ilterl contrct ssocited with the deli$ery of the %ilterl
contrct 4untities (M throu'h the transmission line in the market
net#ork model s< (As amended *- DOE DC N$' 90:90:9993 daed
Ma!"h 90)
The eBpected flow of ener'y out of the receivin* node o/ te
market net #ork line s determined %y the market dispatcoptimi,ation model multiplied %y the e3+ante nodal ener*y
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settlement price t tht nodeC less (As amended *- DOE DC N$'
993::99 daed N$5em*e! 993)
% The eBpected flow of ener'y into the sendin' node multiplied %y
the e3+ante nodal ener*y settlement price t tht node of the
market net#ork line s determined %y the market dispatc
optimi,ation model.
0'0'0 Dee!m#n#n% he T!ansm#ss#$n R#%hs T!ad#n% Am$+n
)or settlement purposes the transmission ri*t tradin* amount for
ech transmission ri*t in ech tradin* interval is to %e determined s<
The #!h cpcity of tht transmission ri*t in tht tradin*
interval s notified under cluse 3.13.2 multiplied %y the e3
ante ener*y settlement price for the receivin* node in tht
tradin* intervalC minus the sum of
% The #!h cpcity of tht transmission ri*t in tht tradin*
interval s notified under cluse 3.13.2 multiplied %y the e3
ante ener*y settlement price t the sendin* node in tht tradin*
intervalC plus
c The #!h cpcity of tht transmission ri*t in tht tradin*
interval s notified under cluse 3.13.2 multiplied %y the
'reed loss differentil for tht transmission ri*t s notified
under cluse 3.13.2 multiplied %y the e3 ante ener*y settlement
price t the receivin* node in tht tradin* interval.
0'0'2 Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans
3.13.1>.1 )or ech 'illin* period the Market Operator shll
determine the settlement amount for ech %radin*
Participant s the sum of the ''re'te trdin' mounts
for the tradin* intervals in tht 'illin* period determined
in ccordnce with cluse 3.13.1>.2< plus (As amended *-
DOE DC N$' 993::99 daed N$5em*e! 993)
Any mount py%le %y the Market Operator to tht
%radin* Participant in respect of tht %illin' period
nd not ccounted for in cluse 3.13.1>.2
includin' pyment for ny ancillary services
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purchsed on %ehlf of the System operator less
the sum of
% Any market /ees which tht %radin* Participant is
re4uired to py in respect of tht %illin' period s
determined in ccordnce with cluse 2.10C plus
c Any other mounts py%le %y tht %radin*
Participant to the Market Operator in respect of
tht %illin' period includin' ny ancillary services
cost recovery car*es.
3.13.1>.2 The ''re'te trdin' mount for %radin* Participant for
tradin* interval e4uls the sum of<
The e3+ante ener*y tradin* mounts for ech
market tradin* node for which tht Trdin'
Participant is responsi%le clculted in ccordnce
with cluse 3.13. which will typiclly %e positi$e
for $eneration Company nd ne'ti$e for
Customer)C plus
% The e3+post ener*y tradin* amounts for ech
market tradin* node for which tht %radin*
Participant is responsi%le clculted in ccordnce
with cluse 3.13.9 which my %e positi$e or
ne'ti$e for ny %radin* ParticipantC plus
c The reserve tradin* amounts for ech reserve
re*ion into which tht %radin* Participant
contri%utes reserve clculted in ccordnce
with cluse 3.13.10 which will lwys %e positi$e
for %oth $eneration Companies nd Customers)C
plus
d The transmission ri*t tradin* amounts for ech
transmission ri*t held %y the WESM Participant
clculted in ccordnce with cluse3.13.13 which
will typiclly %e positi$e for ny %radin*
ParticipantCless the sum of
e The reserve cost recovery car*e determined fortht %radin* Participant with respect to ny reserve
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nd support the mret for )inncil Trnsmission
Ri'hts su%ect to the ppro$l of the PE# ordC
nd
(As amended *- DOE DC N$' 992:9;:99< daed ;
+,- 992)
% "hll %e clerly ccounted for nd ten into
ccount when settin' the llow%le chr'es under
ny re'ultory instruments pplyin' to the Market
Operator nd the System operator .
3.13.16.3 The #ret *pertor shll< (Amended *- DOE DC N$'
992:9;:99< daed ; +,- 992)
Pu%lish re'ulr summry reports on the mount of
ny net settlement surplus %ein' 'enertedC
% within one yer from spot mret commencement
dte nd e$ery yer therefter pu%lish re$iew of
the underlyin' fctors 'i$in' rise to ny net
settlement surplus nd ttempt to identify ny
%indin' constrints which my h$e cused or
contri%uted to such net settlement surplusC
c &etermine in consulttion with Trdin' Prticipnts
nd +etwor "er$ice Pro$iders nd su%ect to
ppro$l %y the PE# ord whether the net
settlement surplus 'enerted %y ny prticulr set
of constrints is of such m'nitude s to ustify
de$elopment of re'ime similr to tht
implemented in the !E"# Rules with respect to
trnsmission line rentls nd trnsmission ri'hts.
d &e$elop procedures on the possi%le uses of net
settlement surplus su%ect to ppro$l %y the PE#
ordC nd
e (ontinuously re$iew the procedures on possi%le uses
of net settlement surplus to the eBtent the #ret
*pertor considers it to %e reson%ly necessry to
promote !E"# o%ecti$es. Any chn'es mde on
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the procedures shll h$e ppro$l from the PE#
ord.
0'0';Se,emen Am$+ns /$! T!ad#n% Pa!#"#pans 1#h B#,ae!a, C$n!a"s
(Added as pe! DOE DC N$' 992:9;:99< daed ; +,- 992)
3.13.1@.1 )or ech %illin' period the #ret *pertor shll
determine the settlement mount for ech trdin'
prticipnt with %ilterl contrct s the sum of the
''re'te trdin' mounts for the trdin' inter$ls in tht
%illin' period determined in ccordnce with cluse
3.13.1@.2 plus (As amended *- DOE DC N$' 90:90:
9993 daed Ma!"h 90)
Any mount py%le %y the #ret *pertor to tht
Trdin' Prticipnt in respect of tht %illin' period
nd not ccounted for in cluse 3.13.1@.2 includin'
pyment for ny ncillry ser$ices purchsed on
%ehlf of the "ystem opertor less the sum of
% Any mret fees which tht Trdin' Prticipnt is
re4uired to py in respect of tht %illin' period s
determined in ccordnce with cluse 2.10C plus
c Any other mounts py%le %y tht Trdin'
Prticipnt to the #ret *pertor in respect of
tht %illin' period includin' ny ncillry ser$ices
reco$ery chr'es.
3.13.1@.2 The ''re'te trdin' mount for Trdin' Prticipnt for
trdin' inter$l e4uls the sum of<
The eB:nte ener'y trdin' mounts for ech
mret trdin' node for which the Trdin'
Prticipnts is responsi%le clculted in ccordnce
with cluses 3.13.@nd 3.13. which will typiclly
%e positi$e for 7enertion (ompny nd ne'ti$e
for (ustomerC plus
% The eB:post ener'y trdin' mounts for ech
mret trdin' node for which the Trdin'
Prticipnt is responsi%le clculted in ccordncewith cluses 3.13.@ nd 3.13.9 which will typiclly
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%e positi$e or ne'ti$e for ny Trdin' PrticipntC
plus
c The line rentl trdin' mount correspondin' to the
4untity of %ilterl contrct of tht Trdin'
Prticipnt clculted in ccordnce with cluse
3.13.12C plus
d The reser$e trdin' mounts for ech reser$e
re'ion into which tht Trdin' Prticipnt
contri%utes reser$e clculted in ccordnce with
cluse 3.13.10 which will lwys %e positi$e for
%oth 7enertion (ompnies nd (ustomersC plus
e The trnsmission ri'ht trdin' mounts for ech
trnsmission ri'ht held %y the !E"# Prticipnt
clculted in ccordnce with cluse 3.13.13 which
will lwys %e positi$e for %oth 7enertion
(ompnies nd (ustomers plus
f The reser$e cost reco$ery chr'e determined for
tht Trdin' Prticipnt with respect to ny reser$e
cost reco$ery 5one within which it hs ny fcility
connected clculted in ccordnce with the
procedures de$eloped under cluse 3.3.> which
will %e positi$e for ny Trdin' PrticipntC nd
' Any other ncillry ser$ice cost reco$ery chr'es
determined for tht Trdin' Prticipnt in
ccordnce with the procedures de$eloped under
cluse 3.3.>.
0'2 SETTLEMENT PROCESS
0'2'Se,emens Mana%emen *- Ma!.e Ope!a$!
The Market Operator shll determine the settlement mount py%le %y
WESM mem'er s nd fcilitte the %illin' nd settlement of trnsctions
%etween itself nd the WESM mem'er s under the WESM Rules in
ccordnce with this cluse 3.1>.
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0'2'E,e"!$n#" F+nds T!ans/e!
3.1>.2.1 The Market Operator shll ensure tht n E)T fcility is
pro$ided nd mde $il%le for ll WESM mem'er s for the
purposes of fcilittin' settlements nd the collection nd
pyment of ll market /ees.
3.1>.2.2 =nless otherwise uthori5ed %y the Market Operator ll
WESM Mem'ers shll use the E)T fcility pro$ided %y
the Market Operator under cluse 3.1>.2.1 for the
settlement of trnsctions nd the pyment of market
/ees.
0'2'0Pa-men $/ Se,emen Am$+n
3.1>.3.1 !here the settlement mount for WESM mem'er is
ne'ti$e mount the !E"# mem'er shll py tht mount
to Market Operators ccordnce with cluse
3.1>.6.3.1>.3.2 !here the settlement mount for
WESM mem'er is positi$e mount Market Operator shll
py tht mount to te WESM Mem'er in ccordnce with
cluse 3.1>.@.
0'2'2P!e,#m#na!- Saemens
3.1>.>.1 !ithin @ days fter the end of ech %illin' period the
Market Operator shll 'i$e ech WESM mem'er who hs
en''ed in market transactions in tht %illin' period
preliminry sttement which sets out the market
transactions of tht WESM mem'er in tht %illin' period
nd the settlement mount py%le %y or to tht WESM
mem'er . (As amended *- DOE DC N$' 90:90:9993
daed Ma!"h 90)
If the se$enth dy flls on &on+Workin* ay the issunce
of the preliminry sttements shll %e mde durin' the
neBt immedite Workin* ay . (Added pe! DOE DC N$'
90:90:9993 daed Ma!"h 90)
3.1>.>.2 The sttements issued under this cluse 3.1>.> shll
include supportin' dt for ll mounts py%le sufficient
to en%le ech WESM mem'er to udit the clcultion of the mount py%le %y or to tht WESM mem'er .
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3.1>.>.3 If the WESM mem'er reson%ly %elie$es there ws n
error or discrepncy in the preliminry sttement 'i$en to
the !E"# #em%er %y the Market Operator under this
cluse 3.1>.> the WESM mem'er shll notify the Market
Operator s soon s prctic%le of tht error or
discrepncy nd the Market Operator s hll re$iew the
preliminry sttement.
3.1>.>.> If the Market Operator considers tht preliminry
sttement contins n error or discrepncy fter re$iewin'
the preliminry sttement s notified %y WESM mem'er
pursunt to cluse 3.1>.>.3 or s independently identified
%y the Market Operator the Market Operator shll ensure
tht correction of ny error or discrepncy is reflected in
the rele$nt finl sttements pro$ided tht corrections
re4uirin' the input of n eBternl prty re recei$ed %y
the Market Operator t lest two Workin* ays %efore the
dedline of the issunce of the finl sttements. If the
Market Operator recei$es notice of n error discrepncy
or correction of n erlier identified error fter their
rele$nt dedlines cluse 3.1>.9.2 shll pply. (As
amended *- DOE DC N$' 90:90:9993 daed Ma!"h
90)
0'2'3F#na, Saemens
3.1>.?.1 +o lter thn ei'hteen days fter the end of ech %illin'
period the Market Operator shll 'i$e to ech WESM
mem'er who hs en''ed in market transactions in tht
%illin' period finl sttement sttin' the mounts
py%le %y the WESM mem'er to the Market Operator or
py%le %y the Market Operator to the WESM mem'er in
respect of the rele$nt %illin' period. (As amended *-
DOE DC N$' 90:90:9993 daed Ma!"h 90)
If the ei'hteenth dy flls on &on+Workin* ay! theissunce of the finl sttements shll %e mde durin' the
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neBt immedite Workin* ay . (Added pe! DOE DC N$'
90:90:9993 daed Ma!"h 90)
3.1>.?.2 The sttements issued under this cluse 3.1>.? shll
include supportin' dt for ll mounts py%le which
shll %e sufficient to en%le ech WESM mem'er to udit
the clcultion of the mount py%le %y or to tht WESM
mem'er .
0'2'8Pa-men *- T!ad#n% Pa!#"#pans
+o lter thn 3.00 pm on the twenty:fifth dy of the clendr month
followin' the %illin' period ech WESM mem'er shll py to the MarketOperator in clered funds the settlement amount if ny stted to %e
py%le to the Market Operator %y tht WESM mem'er in tht WESM
mem'er ;s finl sttement whether or not the WESM mem'er disputes
or continues to dispute the mount py%le. (As amended *- DOE DC
N$' 90:90:9993 daed Ma!"h 90)
If the twenty:fifth dy of the clendr month followin' the %illin' period
flls on +on+Workin* ay the pyment due dte shll %e mo$ed to the
neBt immedite Workin* ay . (Added pe! DOE DC N$' 90:90:9993
daed Ma!"h 90)
0'2';Pa-men $ T!ad#n% Pa!#"#pans
*n the followin' Workin* ay fter the Market Operator is to %e pid
under cluse 3.1>.6 nd in ccordnce with the schedule set in the%illin' nd settlements timet%le the Market Operator shll py to ech
WESM mem'er in clered funds the settlement mount if ny stted to
%e py%le in tht WESM mem'er ;s finl sttement. (As amended *-
DOE DC N$' 993::99 daed N$5em*e! 90 and /+!he!
amended *- DOE DC N$' 90:90:9993 daed Ma!"h 90)
The mBimum totl pyment which the Market Operator is re4uired to
py in respect of ny %illin' period is e4ul to the ''re'te of:
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a) the totl pyments ctully recei$ed from WESM Mem'ers in
ccordnce with cluse 3.1>.6C plus
') the totl mount tht the Market Operator is %le to ctully
drw from the prudentil security of the defultin' WESM
Mem'ers in ccordnce with cluse 3.1? if one or more WESM
Mem'er is in defultC plus
c) other sources of funds which the PE# ord my ppro$e to %e
the pid to the !E"# #em%ers if the totl mount drwn from
the prudentil security deposit of the defultin' !E"# #em%ers
is insufficient to co$er the defulted mounts.
If it %ecomes necessry for the Market Operator to drw upon the
prudentil security of defultin' WESM Mem'er in ccordnce with
cluse 3.1? the correspondin' pyments to the WESM Mem'ers entitled
to %e pid shll %e mde only fter the Market Operator is ctully %le
to drw on the prudentil security %ut not lter thn the dte specified
in the %illin' nd settlement time t%le.
If the totl pyments ctully recei$ed or drwn from the prudentil
security %y the Market Operator for prticulr %illin' period is
insufficient to py for the totl mounts py%le to the WESM Mem'ers
the totl pyments recei$ed nd drwn shll %e distri%uted nd pid to
the rele$nt WESM Mem'ers in proportion to the mount py%le to
them for tht %illin' period.
The shortfll shll %e pid upon collection from the defultin' WESM
Mem'er %ut not lter thn the dte specified in the %illin' nd
settlement time t%le.
(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993
and /+!he! amended *- DOE DC N$' 998::990 daed 9=
N$5em*e! 998)
0'2'<D#sp+es
3.1>..1 If dispute rises %etween WESM mem'er nd the
Market Operator concernin' either<
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The settlement mount stted in ny preliminry
sttement pro$ided under cluse 3.1>.> to %e
py%le %y or to itC or
% The supportin' dt they shll ech use reson%le
ende$ors to resol$e the dispute within fifteen
'usiness days fter the end of the rele$nt %illin'
period.
3.1>..2 &isputes in respect of /inal statements or the supportin'
dt pro$ided with them in ccordnce with cluse 3.1>.?
shll %e rised within twel$e months of the rele$nt %illin'
period.
3.1>..3 &isputes rised under this cluse 3.1>. shll %e resol$ed
%y 'reement or pursunt to the dispute resolution
procedures set out in cluse @.3.
0'2'= Se,emen Re5#s#$ns
3.1>.9.1 If n mount in /inal statement issued under cluse 3.1>.?<
,s %een the su%ect of dispute nd the dispute
hs %een resol$edC or
% !s su%ect of pendin' cse %efore (ourt of
competent urisdiction nd tht sid (ourt hs
lredy rendered finl nd eBecutory &ecisionC
If ny of the %o$ementioned cses hs cused different
mount py%le s set out in the /inal statement the
Market Operator shll issue to ech WESM Mem'er
ffected n dustment to the /inal statement for the
rele$nt %illin' period settin' out<
The mount py%le %y the WESM Mem'er to the
Market Operator or the mount py%le %y the
Market Operator to the WESM Mem'er nd
% Interest clculted on dily %sis t the interest
rte for the /inal statement to which the
dustment reltes to the pyment dte pplic%le
to the re$ised sttement issued under this cluse
3.1>.9.1.
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The Market Operator shll issue the dustment to the
/inal statement not lter thn twel$e 12 clendr
months fter the resolution of the dispute or receipt of the
rele$nt finl nd eBecutory *rder unless prties to %e
%illed 'rees tht the issunce of the prticulr !E"# %ill
dustment shll %e t lter time.
(As amended *- DOE DC N$' 9::99 daed
De"em*e! 9)
3.1>.9.2 If the Market Operator %ecomes wre of n error in n
mount stted in /inal statement issued under cluse
3.1>.? nd in the Market Operator ;s reson%le opinion
WESM Mem'er would %e mterilly ffected if re$ision
to the /inal statement ws not mde to correct the error
then the Market Operator shll issue the Re$ised
"ttement not lter thn siB 6 clendr months from
receipt of the Market Operator of written notice of error
from the prticipnt or from the Market Operator4s
disco$ery of the sme.
(As amended *- DOE DC N$' 9::99 daed
De"em*e! 9)
0'2'9 Pa-men $/ Ad4+smens
3.1>.10.1 The Market Operator shll specify the time nd dte on
which pyment of n dustment under re$ised
sttement issued under cluse 3.1>.9 is due which dte
shll %e not less thn ten 'usiness days nd not more thn
fifteen 'usiness days fter the issue of tht re$ised
sttement.
3.1>.10.2 y no lter thn the time nd dte specified %y te Market
Operator pursunt to cluse 3.1>.10.1 ech WESM
mem'er shll py to the Market Operator in clered funds
the net mount if nystted to %e py%le %y tht
WESM mem'er in the re$ised sttement issued to it under
cluse 3.1>.9.
3.1>.10.3 *n the followin' Workin* ay on which the MarketOperator is to %e pid under cluse 3.1>.10.2 the Market
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Operator shll py to ech !E"# #em%er in clered funds
the net mount if ny stted to %e py%le to tht WESM
mem'er in the re$ised sttement issued to it under cluse
3.1>.9. (As amended *- DOE DC N$' 90:90:9993 daed
Ma!"h 90)
0'2' Pa-men De/a+, P!$"ed+!e
3.1>.11.1 Ech of the followin' e$ents is defult e$ent in reltion
to WESM mem'er .
The WESM mem'er does not py ny money due for
pyment %y it under the WESM Rules %y the
ppointed time on the due dteC
% The Market Operator does not recei$e pyment in
full of ny mount climed %y the Market Operator
under ny credit support in respect of WESM
mem'er within ninety minutes fter the due time
for pyment of tht climC
c The WESM mem'er fils to pro$ide credit support
re4uired to %e supplied under the WESM Rules %y
the ppointed time on the due dteC
d It is or %ecomes unlwful for the WESM mem'er to
comply with ny of its o%li'tions under the WESM
Rules or ny other o%li'tion owed to the Market
Operator or it is climed to %e so %y the WESM
mem'er
e It is or %ecomes unlwful for ny Credit Support
Provider in reltion to the WESM mem'er to comply
with ny of its o%li'tions under the WESM Rules or
ny other o%li'tion owed to the Market Operator
or it is climed to %e so %y tht Credit Support
Provider!
f An uthori5tion from 'o$ernment uthority
necessry to en%le the !E"# mem%er or (redit
"upport Pro$ider which hs pro$ided credit support
for tht !E"# mem%er to crry on their respecti$e
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principl %usinesses or cti$ities ceses to h$e full
force nd effectC
' The !E"# mem%er or (redit "upport Pro$ider
which hs pro$ided credit support for tht !E"#
mem%er ceses or is liely to cese to crry on its
%usiness or su%stntil prt of its %usinessC
h The !E"# mem%er or (redit "upport Pro$ider
which hs pro$ided rrn'ement includin'
scheme of rrn'ement composition or
compromise with or ssi'nment for the %enefit of
ll or ny clss of their respecti$e creditors or
mem%ers or mortorium in$ol$in' ny of themC
i The !E"# mem%er or (redit "upport Pro$ider
which hs pro$ided credit support for tht !E"#
mem%er sttes tht it is un%le to py from its own
money its de%ts s nd when they fll due for
pymentC
A recei$er or recei$er nd mn'er is ppointed in
respect of ny property of the !E"# mem'er or
Credit Support Provider which hs pro$ided credit
support for tht WESM mem'er
An dministrtor pro$isionl li4uidtor li4uidtor
trustee in %nruptcy or person h$in' similr or
nlo'ous function is ppointed in respect of the
!E"# mem%er or (redit "upport Pro$ider which
hs pro$ided credit support for tht !E"# mem%er
or ny ction is ten to ppoint ny such personC
I An ppliction or order is mde for the windin' up
or dissolution or resolution is pssed or ny steps
re ten to pss resolution for the windin' up or
dissolution of the !E"# mem%er or (redit "upport
Pro$ider which hs pro$ided credit support for tht
!E"# mem%er
m The !E"# mem%er or (redit "upport Pro$iderwhich hs pro$ided credit support for tht !E"#
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mem%er dies or is dissol$ed unless such notice of
dissolution is dischr'edC nd
n The !E"# mem%er or (redit "upport Pro$ider
which hs pro$ided credit support for tht !E"#
mem%er is ten to %e insol$ent or un%le to py its
de%ts under ny pplic%le le'isltion.
3.1>.11.2 !here defult e$ent hs occurred in reltion to WESM
mem'er the Market Operator my<
Issue defult notice which specifies<
1 The nture of the lle'ed defultC nd
2 If the Market Operator considers tht the
defult is cp%le of remedy tht the WESM
mem'er shll remedy the defult within 2>
hours of the issue of the defult noticeC
ndDor
% Immeditely issue suspension notice in
ccordnce with cluse 3.1?. if the Market
Operator considers tht the defult is not cp%le
of remedy nd tht filure to issue suspension
notice would %e liely to eBpose other WESM
mem'er s to 'reter ris nd to notify in writin'
the pproprite re'ultory nd dministrti$e
%odies concerned of such suspensionC ndDor (As
amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
c If it hs not lredy done so me clim upon ny
credit support held in respect of the WESM mem'er
for such mount s the Market Operator determines
represents the mount of ny money ctully or
contin'ently owin' %y the WESM mem'er to the
Market Operator pursunt to the WESM Rules.
3.1>.11.3If<
The Market Operator considers tht defult e$ent
is not cp%le of remedyC or
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% A defult e$ent is not remedied within 2> hours of
the issue of the defult notice or ny lter dedline
'reed to in writin' %y the Market Operator or
c The Market Operator recei$es notice from the
defultin' WESM mem'er tht it is not liely to
remedy the defult specified in the defult notice
then the Market Operator my issue suspension
notice in ccordnce with cluse 3.1?.@ under
which the Market Operator notifies the defultin'
WESM mem'er tht it is prohi%ited from
prticiptin' in the spot market.
0'2' Ine!es $n O5e!d+e Am$+ns
If %radin* Participant fils to py ny mount due nd py%le %y it
under the WESM Rules such o$erdue mount shll %er the defult
interest rte reconed from the first dy such mount is due nd
py%le up to nd includin' the dte on which pyment is mde with
interest computed %sed on 360:dy yer.
0'3 PRUDENTIAL REUIREMENTS0'3' P+!p$se
The purpose of the prudential re1uirements is to ensure the effecti$e
opertion of the spot market %y pro$idin' le$el of comfort tht WESM
mem'er s will meet their o%li'tions to me pyments s re4uired
under the WESM Rules.
0'3' P!$5#s#$n $/ Se"+!#-
3.1?.2.1 "u%ect to cluse 3.1?.2.2 WESM mem'er wishin' to
prticipte in Market %ransactions shll pro$ide
nd mintin security complyin' with the re4uirements
of (luse 3.1?.2. (As amended *- DOE DC N$' 92:90:
999< daed 8 Ma!"h 92)
3.1?.2.2 The Market Operator my eBempt WESM mem'er s from
the re4uirement to pro$ide security under cluse
3.1?.2.1if<
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the Market Operator %elie$es it is liely tht the
mount py%le %y the Market Operator to tht
WESM Mem'er under the !E"# Rules will
consistently eBceed the mount py%le to the
Market Operator %y tht WESM mem'er under the
WESM Rules in respect of tht periodC or
% the Market Operator %elie$es it is unliely tht the
WESM mem'er will %e re4uired to py ny mounts
to the Market Operator C or
c &eleted (As pe! DOE DC N$' 992:9;:99< daed ;
+,- 992)
3.1?.2.3 The Market Operator my $ry or cncel the eBemption
'i$en pursunt to cluse 3.1?.2.2 %o$e in reference to
(luse 3.1?.2.1 t ny time %y 'i$in' written notice of
the $rition or cncelltion of the eBemption to the
WESM mem'er . (As amended *- DOE DC N$' 92:90:
999< daed 8 Ma!"h 92)
3.1?.2.> A WESM mem'er who is eBempt from pro$idin' security
deposit under (luse 3.1?.2.2 shll %e re4uired to py the
totl ne'ti$e settlement mount due if ny within three
3 #orkin* days %efore the due dte s pro$ided under
(luse 3.1>.6. (Added pe! DOE DC N$' 92:90:999<
daed 8 Ma!"h 92)
3.1?.2.? )ilure to comply with (luse 3.1?.2.> shll %e 'round
for the cncelltion of eBemption nd sid filure shll
cuse the WESM mem'er to %e ssessed nd %e re4uired to
put up Prudential Re1uirements. =pon written re4uest of
the WESM mem'er the Market Operator my lift the
cncelltion of eBemption from Prudential Re1uirements
pro$ided tht the !E"# mem%er<
hs settled ll its outstndin' o%li'tions includin'
interest if nyC nd
% hs no record of defult in pyment or non:complincewith the Prudential Re1uirements for the immeditely
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precedin' siB 6 %illin' periods from the cncelltion of
eBemption. (Added pe! DOE DC N$' 92:90:999< daed
8 Ma!"h 92)
0'3'0 F$!m $/ Se"+!#-
(As amended *- DOE DC N$' 92:90:999< daed 8 Ma!"h 92)
The security pro$ided %y the WESM Mem'er under this cluse 3.1? shll
%e in ccordnce with the followin' hierrchy of preferred forms of
security <
(shC or
% Another immedite irre$oc%le nd unconditionl commitment in
form nd from %n or other institution ccept%le to the
Market Operator C or
c "urety %ond issued %y surety or insurnce compny duly
ccredited %y the *ffice of the Insurnce (ommissioner of the
PhilippinesC or
d "uch other forms of security or 'urntee s my %e
ccept%le nd llowed %y the Market Operator.(Added as pe!DOE DC N$'998:9;:999 daed 9 +,- 998)
Pro$ided howe$er tht in ll cses where the security deposit pro$ided is
other thn in the form of (sh the followin' conditions shll pply in
determinin' whether or not the Market Operator will llow such lternti$e
form of security<
*nly in the e$ent tht the #ret *pertor determined tht the
mount of defult cn %e immeditely drwn on due dte from
such form of securityC nd
% SaidWESM member proposing to post a security deposit in a form
other than Cash has no record of default in payment or non-
compliance with the Prudential Requirements for the immediately
preceding six (6) billing periods.
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0'3'2 Am$+n $/ Se"+!#-
=sin' $il%le historicl dt the Market Operator shll determine the
initil Prudential Re1uirements of new WESM mem'er correspondin'
to the portion of its demnd tht is not co$ered %y 'ilateral contracts
or ten percent 10H of its totl demnd if fully co$ered %y 'ilateral
contracts multiplied %y the $er'e ctul mret price of the pre$ious
twel$e 12 %illin' periods. (Added pe! DOE DC N$' 92:90:999<
daed 8 Ma!"h 92)
3.1?.>.1 "u%ect to cluse 3.1?.2.2 prior to the end of ech
6inancial 9ear! the Market Operator shll determine nd
pro$ide written confirmtion to ech WESM mem'er of its
Ma3imum E3posure to the Market Operator in respect of
%illin' period in the followin' 6inancial 9ear. The mount
of security to %e pro$ided %y ech WESM mem'er pursunt
to (luse 3.1?.2.1 nd 3.1?.2.2 shll %e e4ui$lent to the
Ma3imum E3posure.
=pon the re4uest of WESM mem'er the Market
Operator my consider replcement month in the
computtion of Ma3imum E3posure within the 26th #rch
to 2?th "eptem%er %illin' periods h$in' the sme num%er
of clendr dys if<
There is dis'reement %etween the Market Operator
nd the WESM Participant on the 6inal Statement durin'
the months co$ered in the computtion of the Ma3imum
E3posureC or
% There is positi$e settlement mount in ny %illin'
period in the computtion of the Ma3imum E3posure.
If there is chn'e in the 'ilateral contract of WESM
mem'er the Ma3imum E3posure shll %e computed %sed
on the settlement mounts estimted %y the MarketOperator usin' the $er'e ctul mret price %sed on
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the %illin' period of 26th #rch to 2?th "eptem%er. In no
cse shll the Ma3imum E3posure %e less thn ten percent
10H of the totl demnd. A$er'e ctul mret price
shll refer to the rtio of the totl spot market pyment of
WESM mem'er which my include Spot Market ener'y
nd reser$e trnsctions nd 5ine Rental mount for
contrcted 4untities to the totl metered 4untities net
of 'ilateral contract 4untities for ech %illin' month.
If WESM mem'er tht is eBempt from the Prudential
Re1uirements under (luse 3.1?.2.2 %ecomes net %uyer
nd fils to py its o%li'tions the prudentil security tht
shll %e imposed pursunt to (luse 3.1?.2.? shll %e
computed %sed on<
the $er'e of the pre$ious siB 6 ne'ti$e settlement
mounts for the pst twel$e 12 consecuti$e %illin'
periodsC or
% in the %sence of the pre$ious siB 6 ne'ti$e
settlement mounts the $er'e of the $il%le ne'ti$e
settlement mounts for the pst twel$e 12 consecuti$e
%illin' periods.
If the Market Operator determines tht the security
pro$ided %y WESM mem'er is %elow the ssessed
Ma3imum E3posure the Market Operator shll re4uire
such WESM mem'er to increse its security deposit up to
the le$el of its Ma3imum E3posure within three 3
#orkin* days fter the receipt of the written notifiction
of the nnul ssessment. If the WESM mem'er fils to
comply within the prescri%ed dte or ny lter dte 'reed
to in writin' with the Market Operator then the Market
Operator shll issue defult notice under (luse
3.1>.11.1.c.
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(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
3.1?.>.2 The #ret *pertor my re$iew its method of
determintion of WESM mem'er-s Ma3imum E3posure t
ny time pro$ided tht ny chn'e to WESM mem'er-s
Ma3imum E3posure will pply no erlier thn thirty 30
dys followin' receipt of written notifiction from the
Market Operator %y WESM mem'er of tht chn'e or
such erlier period 'reed to in writin' %y the PEM Board .
(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
3.1?.>.3 Ech !E"# mem%er shll ensure tht t ll times the
''re'te undrwn nd unclimed mounts of current nd
$lid security held %y the Market Operator in respect of
tht WESM mem'er is not less thn tht WESM mem'er-s
Ma3imum E3posure.
3.1?.>.> To diminish the possi%ility of incurrin' Mar*in Call under
(luse 3.1?.10 WESM mem'er my pro$ide security or
securities in ccordnce with cluse 3.1?.3 for n
''re'te mount tht eBceeds its Ma3imum E3posure.
If sid dditionl security or securities is not in the form of
(sh the WESM mem'er shll secure the prior written
determintion nd ppro$l of the Market Operator.
0'3'3 Rep,a"emen Se"+!#-
3.1?.?.1 If<
An eBistin' security pro$ided %y WESM mem'er
under this cluse 3.1? is due to eBpire or terminteC
nd
% After tht security eBpires or termintes the
mBimum mount which the Market Operator will%e entitled to %e pid in ''re'te under ny
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reminin' security or securities pro$ided %y the
WESM mem'er under this cluse 3.1? will %e less
thn WESM mem'er ;s Ma3imum E3posure!
then the WESM mem'er shll deli$er to the Market
Operator t lest ten 10 #orkin* days prior to
the time t which tht eBistin' security is due to
eBpire or terminte replcement security which<
1 Is of sufficient $lue to en%le the WESM
mem'er to comply with cluse 3.1?.>.3C
2 (omplies with the re4uirements of this
cluse 3.1?C nd
3 "hll te effect no lter thn the dte on
which the eBistin' security is due to eBpire
or terminte.
(As amended *- DOE DC N$' 92:90:999< daed
8 Ma!"h 92)
3.1?.?.2 If<
A WESM mem'er fils to comply with cluse
3.1?.?.1C nd
% Tht WESM mem'er does not remedy tht filure
within three 3 #orkin* days fter %ein' notified
%y the Market Operator of the filure
then the WESM mem'er is deemed to %e in defult nd the
Market Operator shll 'i$e the WESM mem'er
Suspension &otice in ccordnce with cluse 3.1?.@.
(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
0'3'8 D!a1d$1n $/ Se"+!#-
3.1?.6.1 The Market *pertor shll notify WESM mem%er in
writin' once the Market Operator eBercises its ri'hts in
ccordnce with (luse 3.1? under security pro$ided %y
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sid WESM mem'er . (As amended *- DOE DC N$' 92:
90:999< daed 8 Ma!"h 92)
3.1?.6.2 If s result of the Market Operator eBercisin' its ri'hts
under security pro$ided %y WESM mem'er under this
(luse 3.1? the mBimum mount which the Market
Operator is entitled to %e pid under the security or
securities pro$ided %y the WESM mem'er under this (luse
3.1? is less thn the WESM mem'er ;s Ma3imum E3posure
then within three 3 #orkin* days from receipt of the
written notice under (luse 3.1?.6.1 the WESM mem'er
shll pro$ide n dditionl security to ensure tht t ll
times it complies with the re4uirements of this (luse
3.1?. (As amended *- DOE DC N$' 92:90:999< daed
8 Ma!"h 92)
3.1?.6.3 If WESM mem'er fils to comply with cluse 3.1?.6.2
within the time period referred to in tht cluse then the
Market Operator shll 'i$e the WESM mem'er suspension
notice in ccordnce with cluse 3.1?.@.
0'3'; Re/+nd $/ Se"+!#-
=pon written re4uest from the WESM mem'er the Market Operator
shll refund the prudentil security under the followin' conditions<
if the Market Operator hs lifted the cncelltion of eBemption fter
the WESM mem'er complied with its o%li'tions under (luse
3.1?.2.?C or
% if the security deposit of WESM mem'er consistently eBceeds the
Ma3imum E3posure in pre$ious siB 6 consecuti$e %illin' period.
The refund of security deposit shll %e llowed %y the Market Operator
fter the ssessment of the mount of refund pro$ided tht the WESM
mem'er hs no record of defult nd non:complince with the
Prudential Re1uirements in pre$ious siB 6 consecuti$e %illin' periods.
(As pe! DOE DC N$' 92:90:999< daed 8 Ma!"h 92)
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0'3'< S+spens#$n $/ a WESM mem*e!
3.1?..1 As soon s prctic%le fter Suspension &otice is issued
%y the Market Operator under the WESM Rules the
Market Operator shll<
Pu'lis the suspension noticeC nd
(As amended *- DOE DC N$'993::99 daed
N$5em*e! 993)
% Plce notice in newspper of 'enerl circultion
tht the WESM mem'er hs %een suspended.
c +otify in writin' the ERC the OE nd &ational
Electri/ication Administration of such suspension.
(As pe! DOE DC N$' 92:90:999< daed 8 Ma!"h
92)
3.1?..2 The Market Operator shll re$oe Suspension &otice if<
In the cse of defult e$ent the defult e$ent is
remediedC or
% In the cse of filure to mintin complince with
prudentil re4uirements under this cluse 3.1?
tht filure hs %een remediedC nd
c There re no other circumstnces in eBistence
which would entitle the Market Operator to issue
Suspension &otice.
The Market Operator shll not re$oe Suspension &otice
more thn one month fter it ws issued. (As amended *-
DOE DC N$' 92:90:999< daed 8 Ma!"h 92)
3.1?..3 If suspension notice is re$oed the #ret *pertor
shll pu%lici5e tht fct in the sme mnner in which the
suspension notice ws pu%lici5ed in ccordnce with cluse
3.1?.@.1.
3.1?..> )rom the time tht the Market Operator issues written
Suspension &otice to WESM mem'er under the WESM
Rules the WESM mem'er is ineli'i%le to prticipte in thespot market until such time s the Market Operator
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notifies the WESM mem'er nd ll other rele$nt WESM
mem'ers! in writin' tht the Suspension &otice hs %een
re$oed. (As amended *- DOE DC N$' 92:90:999<
daed 8 Ma!"h 92)
3.1?..? A WESM mem'er shll comply with suspension notice
issued to it under the WESM Rules.
3.1?..6 If<
The Market Operator hs issued Suspension
&otice to WESM mem'er due to defult e$ent
nd in the #ret *pertor;s reson%le
determintion the WESM mem'er is incp%le of
rectifyin' the defult e$ent for ny resonC or
% The Market Operator hs issued suspension notice
to WESM mem'er due to filure %y the WESM
mem'er to continue to stisfy the Prudential
Re1uirements nd in the Market Operator-s
reson%le determintion the WESM mem'er is
incp%le of rectifyin' tht filure for ny reson
The Market Operator! in either cse shll dere'ister tht
WESM mem'er s soon s prctic%le nd promptly
pu'lis notice of tht fct.
(As amended *- DOE DC N$'993::99 daed
N$5em*e! 993 and /+!he! amended *- DOE DC N$'
92:90:999< daed 8 Ma!"h 92)
0'3'= T!ad#n% L#m#s
3.1?.9.1 "u%ect to cluse 3.1?..2 the #ret *pertor shll set
trdin' limit for ech !E"# mem%er who prticiptes in
mret trnsctions.
3.1?.9.2 If under cluse 3.1?.2.2 the #ret *pertor hs
eBempted Trdin' Prticipnt from the re4uirement to
pro$ide security under cluse 3.1?.2.1 for period then
the #ret *pertor shll not set trdin' limit for tht
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!E"# #em%er for the period durin' which tht eBemption
pplies.
3.1?.9.3 The trdin' limit for WESM mem'er! t ny time shll
%e e4ul to the totl $lue of the security includin'
0nterest Rate! if ny pro$ided %y the WESM mem'er to the
Market Operator under (luses 3.1?.3 to c.
(As amended *- DOE DC N$'998:9;:999 daed 9
+,- 998 and /+!he! amended *- DOE DC N$' 92:
90:999< daed 8 Ma!"h 92)
0'3'9 M$n#$!#n%
3.1?.10.1 The #ret *pertor shll re$iew on monthly %sis its
ctul eBposure to ech WESM mem'er in respect of
pre$ious %illin' periods in ccordnce with the WESM
Rules. (As amended *- DOE DC N$' 92:90:999< daed
8 Ma!"h 92)
3.1?.10.2 In clcultin' the Market Operator-s ctul eBposure to
WESM mem'er under (luse 3.1?.9.1 the Market
Operator shll te into ccount<
*utstndin' settlement mounts for the WESM mem%er
in respect of pre$ious %illin' periodsC nd
% "ettlement mounts for the WESM mem%er for the
%illin' period tht will %e due on the period in which the
re$iew occurs %sed on the $il%le settlement
sttement.
(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
3.1?.10.3 If the Market Operator clcultes tht its ctul eBposure
eBceeds the WESM mem'er ;s trdin' limit then te
Market Operator shll notify the WESM mem'er in writin'.
(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
3.1?.10.> If the #ret *pertor clcultes tht its ctul eBposure
to !E"# #em%er eBceeds the !E"# #em%er;s trdin'
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limit then the #ret *pertor shll notify the !E"#
#em%er ccordin'ly.
0'3' Ma!%#n Ca,,s
3.1?.11.1 If the Market Operator clcultes tht its eBposure to
WESM mem'er eBceeds the WESM mem'er ;s tradin* limit
then the Market Operator shll me #r'in (ll on tht
WESM mem'er %y notice to the WESM mem'er in writin'
#r'in (ll +otice. (As amended *- DOE DC N$' 92:
90:999< daed 8 Ma!"h 92)
3.1?.11.2 If the Market Operator mes Mar*in Call on WESM
mem'er under cluse 3.1?.11.1 then the WESM mem'er
must stisfy the Mar*in Call %y pro$idin' the mount of
shortfll within three 3 #orkin* days from receipt of the
#r'in (ll +otice %y either<
Pro$idin' to the Market Operator n dditionl
security or securities complyin' with the
re4uirements of this (luse 3.1? or
% Prepyin' the mount py%le or which will %ecome
py%le.
(As amended *- DOE DC N$' 92:90:999< daed 8 Ma!"h
92)
3.1?.11.3 If WESM mem%er fils to stisfy mr'in cll %y
pro$idin' dditionl security or min' prepyment
under cluse 3.1?.11.2 then the Market Operator shll
issue the WESM mem'er Suspension &otice in writin'.
(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92)
In the e$ent of suspension ll the settlement sttements
issued to such WESM mem'er includin' n estimte of the
ccrued trdin' mounts shll %ecome immeditely duend demnd%le.
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(As amended *- DOE DC N$' 92:90:999< daed 8
Ma!"h 92 and /+he! amended *- DOE DC N$' 92:
90:999< daed 8 Ma!"h 92)
0'3' C$n/#den#a,#-
All informtion pro$ided %y WESM mem'er in reltion to its finncil
circumstnces shll %e treted %y the Market Operator s confidentil
informtion in ccordnce with cluse ?.2.
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CHAPTER 2
METERIN6
2' SCOPE OF CHAPTER 2
This chpter > sets out the<
*%li'tions of %radin* ParticipantsC
% Re4uirements in reltion to the instlltion use nd security of meters
c #nner in which meterin* data is to %e used nd mn'edC
d #ethod of dere'istrtion of Meterin* Services ProvidersC
e #nner in which meterin* data'ases re to %e mn'edC nd
f #nner in which new technolo'ies re to %e dopted.
2' APPLICATION OF CHAPTER
This chpter > pplies to<
A Customer in respect of ny market tradin* node tht is ssi'ned to it
throu'h which it purchses electricity from the spot market (As
amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
% A $eneration Company in respect of market tradin* node tht is
ssi'ned to it throu'h which it sells electricity to the spot mret nd
(As amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
c #eterin' "er$ices Pro$iders in respect of meterin' instlltions for which
they re responsi%leC nd
d All WESM mem'er s s fr s pplic%le.
2'0 OBLI6ATIONS OF TRADIN6 PARTICIPANTS
2'0' O*,#%a#$ns
>.3.1.1 efore %radin* Participant who is irect WESM Mem'er
will %e permitted %y the Market Operator to prticipte in
the spot market in respect of market tradin* node the
%radin* Participant shll ensure tht< (As amended *-
DOE DC N$' 998:9:999 daed 9 an+a!- 998)
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Ech of its ssi'ned market tradin* node hs
meterin' instlltionC (As amended *- DOE DC N$'
998:9:999 daed 9 an+a!- 998)
% Ech meterin* installation hs %een instlled in
ccordnce with this chpter> nd in ccordnce
with the $rid Code and istri'ution CodeC nd
c Ech meterin* installation is re'istered with the
Market Operator .
>.3.1.2 The Market Operator my refuse to permit %radin*
Participant who is irect WESM mem'er to prticipte in
the spot market in respect of ny ssi'ned market tradin*
node if the meterin* installation ssocited with tht
market tradin* node does not comply with the pro$isions
of this chpter > the $rid Code nd istri'ution Code.(As
amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998)
>.3.1.3 The Market Operator shll promptly d$ise the ERC of ny
refusl mde under cluse >.3.1.2.
2'0' E,e"#$n $/ a Mee!#n% Se!5#"es P!$5#de! *- a T!ad#n% Pa!#"#pan
>.3.2.1 A %radin* Participant who is &irect WESM mem'er shll<
Elect Meterin* Services Provider who will h$e
responsi%ility for rrn'in' for the pro$ision
instlltion testin' cli%rtion nd mintennce of
ech meterin' instlltion for which tht %radin*
Participant is finncilly responsi%leC
% Enter into n 'reement with the Meterin* Services
Provider s which includes the terms nd
conditions for the pro$ision instlltion nd
mintennce of the rele$nt meterin* installation
%y the Meterin* Services Provider! nd
c Pro$ide the Market Operator with the rele$nt
detils of the meterin* installation in ccordnce
with AppendiB 2 within 10 'usiness days of
enterin' into n 'reement with the Meterin*Services Provider(s) under cluse >.3.>%.
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2'0'0 Mee!#n% Se!5#"es P!$5#de! O*,#%a#$ns
The Meterin* Services Pro$ider shll<
Ensure tht its meterin* installations re pro$ided instlled
tested cli%rted nd mintined in ccordnce with this
chpter > the $rid Code and istri'ution Code nd ll pplic%le
lws rules nd re'ultionsC
% Ensure tht the ccurcy of ech of its meterin* installations
complies with the re4uirements of chpter > nd the $rid Code
and istri'ution CodeC nd
c If the Market Operator re4uires rrn'e for the pro$ision of
remote monitorin' fcilities to lert the Market Operator of ny
filure of ny components of the meterin* installation which
mi'ht ffect the ccurcy of the meterin* data deri$ed
from tht meterin* installation.
2'2 RE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS
>.>.1 *ther thn the %RA&SCO Meterin* Services Provider is person or n
entity who<
Is uthori5ed %y the ERC to pro$ide meterin* servicesC% Is re'istered with the Market Operator s Meterin* Services
Provider nd
c Is re4uired to h$e the 4ulifictions nd dhere to ny
performnce stndrds specified %y the Market Operator in
reltion to Meterin* Services Providers.
>.>.2 A $eneration Company or Customer which is in$ol$ed in the trdin' of
ener*y shll not %e re'istered s Meterin* Services Provider for ny
market tradin* node ssi'ned to it. (As amended *- DOE DC N$' 993:
:99 daed N$5em*e! 993 and /+!he! amended *- DOE DC N$'
998:9:999 daed 9 an+a!- 998)
>.>.3 If %radin* Participant is Customer nd lso &et#ork Service
Provided! the %radin* Participant my re'ister s Meterin* Services
Provider only for connection points tht it does not own.
Pro$ided howe$er tht if such %radin* Participant is lso Meterin*
Services Provider nd there is only one Meterin* Services Provider
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re'istered with the Market Operator in the Trnsmission -e$el then it
shll %e llowed to pro$ide meterin* services on n interim %sis for
market tradin* node ssi'ned to it or connection point tht it owns
until nother Meterin* Services Provider %ecomes uthori5ed %y the
ERC and is re'istered with the Market Operator upon which the
meterin* services shll %e trnsferred to nother Meterin* Services
Provider followin' the pplic%le procedures. (As amended +nde! DOE
C#!"+,a! N$' DC 90:9;:998 daed 8 +,- 90)
2'3 METERIN6 INSTALLATION
2'3' Mee!#n% Insa,,a#$n C$mp$nens
A meterin* installation shll<
e ccurte in ccordnce with this chpter > nd the $rid Code
and istri'ution Code
% ,$e fcilities to en%le meterin* data to %e trnsmitted from
the meterin* installation to the meterin* data'ase nd %e
cp%le of communiction with the meterin* data'aseC This
re4uirement my %e relBed durin' the opertion of the interim
WESM.c (ontin de$ice which hs $isi%le or n e4ui$lently ccessi%le
disply of meterin* data or which llows the meterin* data to %e
ccessed nd red t the sme time %y port%le computer or
other e4uipment of type or specifiction reson%ly ccept%le
to ll entities who re entitled to h$e ccess to tht meterin*
data
d e secureC
e ,$e electronic dt recordin' fcilities such tht ll meterin'
dt cn %e mesured nd recorded in tradin* intervalsC
f e cp%le of seprtely re'isterin' nd recordin' flows in ech
direction where %i:directionl active ener*y flows occurC
' ,$e meter h$in' n internl or eBternl data lo**er cp%le
of storin' the meterin* data for t lest 60 dys nd h$e %c
up stor'e fcility en%lin' meterin* data to %e stored for >
hours in the e$ent of eBternl power filureC nd
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h ,$e n cti$e ener*y meter nd if re4uired in ccordnce with
the $rid Code and istri'ution Code recti$e ener*y meter
h$in' %oth n internl or eBternl data lo**er.
2'3' L$"a#$n $/ Mee!#n% P$#n
>.?.2.1 The Meterin* Services Provider shll ensure tht the
meterin* point is locted s close s prctic%le to the
market tradin* node. (As amended *- DOE DC N$' 998:
9:999 daed 9 an+a!- 998)
>.?.2.2 The %radin* Participant the &et#ork Service Provider nd
the Market Operator shll use their %est ende$ors to
'ree to dust the meterin* data to llow for physicl
losses %etween the ctul meterin* point nd the
rele$nt market tradin* node. (As amended *- DOE DC
N$' 998:9:999 daed 9 an+a!-998)'
>.?.2.3 The meterin* installation shll %e ccessi%le to the
Meterin* Service Provider t ll times.
2'3'0 Mee! A""+!a"-
The clss of meterin* installation nd the ccurcy re4uirements for
meterin' point re to %e determined %y the PEM Board in ccordnce
with the $rid Code and istri'ution Code nd ccordin' to the nnul
mount of active ener*y tht psses throu'h the meterin* point of tht
%radin* Participant.
2'3'2 Use $/ Mee!s
>.?.>.1 The re'istered meterin' instlltion shll %e used %y the
#ret *pertor s the primry source of meterin' dt
for %illin' purposes.
>.?.>.2 +otwithstndin' ny other pro$ision of this cluse >.> the
Market Operator will not %e li%le to ny person or entity
in respect of ny inccurcies discrepncies or other
defects in meterin* data includin' meterin* data
which is stored in the meterin* data'ase pro$ided tht
these do not rise from the 'ross ne'li'ence or willful
misconduct of the Market Operator .
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>.?.>.3 !here meterin* installation is used for purposes in
ddition to the pro$ision of meterin* data to the Market
Operator then<
Tht use shll not %e inconsistent with or cuse
ny WESM mem'er to %rech ny re4uirements of
the WESM Rules the $rid Code nd istri'ution
Code or ny pplic%le lwsC nd
% The Meterin* Services Provider shll coordinte
with the entities tht use the meterin* installation
for such other purposes to ensure tht cluse
>.>.>.3 is complied with.
2'3'3 Se"+!#- $/ Mee!#n% E>+#pmen
>.?.?.1 The #eterin' "er$ices Pro$ider shll use reson%le
ende$ors to protect the meterin' instlltion from
unuthori5ed interference %oth intentionl nd
ind$ertent %y pro$idin' secure housin' for meterin'
e4uipment or otherwise ensurin' tht security t the
meterin' point is de4ute to protect 'inst such
interference.
>.?.?.2 If !E"# mem%er hs reson to %elie$e tht the meterin'
instlltion hs %een interfered with or the ccurcy
thereof mi'ht h$e %een ffected %y ny tmperin' he
shll inform the Meterin* Services Provider who shll test
the meterin* installation to ensure tht the meterin*
e1uipment opertes within the pplic%le ccurcy
prmeters descri%ed in the $rid Code and istri'ution
Code.
>.?.?.3 If e$idence of tmperin' with meterin* installation
is found or disco$ered %y WESM mem'er ll ffected
Prticipnts shll %e notified of tht fct %y tht WESM
mem'er nd the PEM Board s soon s reson%ly possi%le.
>.?.?.> The PEM Auditor in consulttion with the Market
Operator nd Meterin* Services Providers shll re$iew
the security rrn'ements nd re4uirement of meterin* installations nnully.
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2'3'8 Se"+!#- $/ Mee!#n% Daa He,d #n a Mee!#n% Insa,,a#$n
The Meterin* Services Provider shll ensure tht meterin* data held in
meterin* installation is protected from locl or remote electronic ccess
or mnipultion of dt %y the instlltion of suit%le security electronic
ccess controls includin' if re4uired %y the Market Operator
psswords.
2'3'; Pe!/$!man"e $/ Mee!#n% Insa,,a#$ns
>.?.@.1 The Meterin* Services Provider shll use ll reson%le
ende$ors to ensure tht meterin* data is cp%le of %ein'
trnsmitted to the meterin* data'ase from its meterin*
installations<
!ithin the pplic%le ccurcy prmeters
descri%ed in the $rid Code and istri'ution Code
nd
% !ithin the time re4uired for settlement t le$el
of $il%ility of t lest 99H per nnum or s
otherwise 'reed %etween the Market Operator nd
the Meterin* Services Provider.
>.?.@.2 If meterin' instlltion mlfunction or defect occurs the
#eterin' "er$ices Pro$ider shll ensure tht repirs shll
%e mde s soon s prctic%le nd in ny e$ent within
two %usiness dys unless eBtended %y the #ret
*pertor.
>.?.@.3 A !E"# Participant who %ecomes wre of meterin*
installation mlfunction or other defect shll d$ise the
Market Operator within 3 hours from the time it ws
detected.
2'3'< Mee! T#me
>.?..1 The Meterin* Services Provider shll ensure tht ll
meterin* installation nd data lo**er clocs re
referenced to Philippines "tndrd Time.
>.?..2 The meterin* data'ase time shll %e set within n
ccurcy of plus or minus fi$e ? seconds of Philippines
"tndrd Time.
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2'8 METERIN6 DATA
2'8' Chan%es $ Mee!#n% Daa
The Meterin* Services Provider shll not me cuse or llow ny
ltertion to the ori'inl stored dt in meterin* installation. It shll
lso use reson%le ende$ors to ensure tht no other person or entity
does the sme.
2'8' Daa T!ans/e! and C$,,e"#$n
>.6.2.1 The #"P tht is contrcted %y the #TP for prticulr
meterin' point shll retrie$e the meterin' dt from the
meter nd trnsmit the dt to the #ret *pertor for
%illin' nd settlement.
,owe$er the #"P shll not me cuse or llow ny
ltertion to the ori'inl stored meter dt s retrie$ed in
the meterin' instlltion.
At its option the #ret *pertor my lso directly
retrie$e the meter dt.
The #"P with (ertificte of Authority from ER( nd
re'istered with #* must %e cp%le of sendin' meter dt
in the re4uired formt of #*. An #"P must h$e its own#eter &t Retrie$l "ystem nd compti%le with the #*
#eter &t (ollection "ystem.
(As amended *- DOE DC N$'998:9;:999 daed 9 +,-
998)
>.6.2.2 Ech WESM mem'er shll use its reson%le ende$ors to
ensure tht the Market Operator is 'i$en ccess to or is
pro$ided with the meterin* data.
>.6.2.3 The Meterin* Services Provider shll t its own cost
ensure tht meterin* data deri$ed from meterin*
installation for which it is responsi%le shows the time nd
dte t which it is recorded nd is cp%le of %ein'
trnsmitted from the meterin* installation to the
meterin* data'ase in ccordnce with the Market
Operator ;s reson%le re4uirements.
>.6.2.> The Market Operator my use dt collection systems totrnsfer meterin* data to the meterin* data'ases.
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>.6.2.? !ithout preudice to the 'enerlity of this cluse >.? the
Meterin* Services Provider shll ensure tht ech of
its meterin* installations h$e de4ute communiction
fcility tht will en%le the Market Operator to o%tin
remote ccess to the meterin* data from the meterin*
data'ase. This re4uirement howe$er my %e relBed
durin' the initil opertion of the !E"#.
>.6.2.6 In cses where the meterin* installation hs no cp%ility
to trnsmit the meterin* data electroniclly to the
meterin* data'ase! the WESM Participant must use its
reson%le ende$ors to ensure tht the Market Operator
is 'i$en lternti$e ccess to or is pro$ided with the
meterin* data in ccordnce with the procedures
est%lished under the $rid Code and istri'ution Code.
2'; DERE6ISTRATION OF METERIN6 SER7ICES PRO7IDERS
2';' Se,emen 1#h #na""+!ae mee!#n% #n/$!ma#$n
The Market Operator shll de$elop detiled process for settlin'
ccounts retrocti$ely to correct incorrect meterin' informtion ndmarket settlements tht results from meter tmperin' meter %ypss
meter filure dt loss unethicl conduct eBcessi$e inccurcy or
other cuses.
2';' San"#$ns /$! #na""+!ae mee!#n% #n/$!ma#$n
The Market Operator shll de$elop process of penlties nd snctions
for Meter Services Providers nd WESM Participants whose meter dt is
incorrect %eyond reson%le limits for whte$er reson.
2';'0 N$#"e /$,,$1#n% mae!#a, *!ea"h $/ WESM R+,es
If Meterin* Services Provider mterilly %reches the WESM Rules the
Market Operator shll send to tht Meterin* Services Provider notice in
writin' settin' out the nture of the %rech nd if the Meterin* Services
Provider remins in %rech for period of more thn @ 'usiness days
fter notice from the Market Operator the Market Operator my
dere'ister the Meterin* Services Provider.
2';'2 De!e%#s!a#$n /$,,$1#n% +neh#"a, a"
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The Market Operator my dere'ister Meterin* Services Provider for
unethicl ct or %eh$ior.
2';'3 E//e" $/ de!e%#s!a#$n /$! +neh#"a, a"
If the Market Operator dere'isters Meterin* Services Provider in
ccordnce with cluse 2.6.2 nd su%ect to cluse 2.@ the Market
Operator shll<
+otify the ERC nd the WESM Participants of this ction nd %sis
for decisionC nd
% Pu'lis detils of the dere'istrtion.
2'< DATABASES
2'<' Insa,,a#$n Daa*ases
>..1.1 The Meterin* Services Provider shll crete mintin
nd dminister n installation data'ase in reltion to ll
its meterin* installations.
>..1.2 The Meterin* Services Provider shll ensure tht ech
ffected Prticipnt nd the Market Operator is 'i$en
ccess to the informtion in its installation data'ase t ll
reson%le times nd<
In the cse of dt siBteen months old or lesswithin se$en 'usiness days of recei$in' written
notice from the person or entity seein' ccessC
nd
% In the cse of dt more thn siBteen months old
within thirty dys of recei$in' written notice from
the person or entity seein' ccess.
>..1.3 The Meterin* Services Provider shll ensure tht its
installation data'ase contins the informtion specified in
AppendiB 2.
2'<' Mee!#n% Daa*ase
>..2.1 The #ret *pertor shll crete mintin nd dminister
meterin' dt%se which shll include meterin'
re'ister continin' informtion for ech meterin'
instlltion re'istered with the #ret *pertor.
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>..2.2 The meterin' dt%se shll include meterin' dt ener'y
dt dt su%stituted in ccordnce with this cluse >.@
nd ll clcultions mde for settlement purposes.
>..2.3 &t shll %e stored in the meterin* data'ase7
)or 16 months in ccessi%le formtC nd
% )or 10 yers in rchi$e.
2'<'0 R#%hs $/ A""ess $ Mee!#n% Daa
The only entities entitled to h$e either direct or remote ccess to
meterin* data on red only %sis from the meterin* data'ase or the
meterin* re*ister in reltion to meterin* point re<
Ech %radin* Participant whose settlement mounts re
determined %y reference to 4untities of ener*y flowin' throu'h
tht meterin* point!
% The Meterin* Services Provider who is responsi%le for the
meterin* installation t tht meterin* point!
c A &et#ork Service Provider ssocited with the meterin* point!
d The Market Operator nd its uthori5ed 'entsC nd
e Any (ustomer with respect to the meterin* data in reltion to the
meterin* point re'istered to itC (As amended *- DOE DC N$'
998:9:999 daed 9 an+a!- 998)
f The Market Surveillance CommitteeC nd
' The ERC.
2'<'2 C$n/#den#a,#-
"u%ect to cluse >.@.3 meterin' dt is confidentil nd ech WESM
mem'er nd Meterin* Services Provider shll ensure tht such dt is
treted s confidentil informtion in ccordnce with the WESM Rules.
2'<'3 Pa-men /$! A""ess $ Mee!#n% Daa
All reson%le costs includin' without limittion telecommunictions
chr'es incurred %y the Meterin* Services Provider in pro$idin' ccess
to meterin* data t meterin* installation or %y the Market Operator in
pro$idin' ccess to informtion in the meterin* data'ase shll %e pid
%y the WESM mem'er whom the meterin* data or informtion wspro$ided.
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2'= DATA 7ALIDATION AND SUBSTITUTION
The Market Operator is responsi%le for the $lidtion nd su%stitution of
meterin* data fter %ein' furnished settlement:redy meterin* data %y theMeterin* Services Provider nd shll de$elop dt $lidtion procedures in
consulttion with WESM Participants nd in ccordnce with AppendiB (1.2 d.
2'9 PROCESSES AND RE7IEW
The Market Operator shll underte periodic re$iew of the pro$isions of this
chpter > in ccordnce with the pu%lic consulttion procedures includin' %ut
not limited to<
+ew technolo'ies nd the impct of new technolo'ies on nd in reltion
to technicl stndrds for meterin' in the WESM Rules the $rid Code
and istri'ution Code
% (ontest%ility in the pro$ision nd types of meters usedC nd
c !hether the pro$isions of this chpter > h$e the effect of elimintin'
the use of lternti$e types of meters.
2' TRANSITORY PRO7ISION&urin' the initil opertion of the !E"# the TRA+"(* shll pro$ide the
ser$ices re4uired of the #eterin' "er$ices Pro$ider %ut this shll not eBclude
other entities from doin' the sme pro$ided they meet the re4uirements
pro$ided herein.
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CHAPTER 3
MARKET INFORMATION AND CONFIDENTIALITY
3' SCOPE OF CHAPTER 3
This chpter ? sets out<
Procedures for delin' with spot market informtion includin'<
1 "ystems nd procedures for the pro$ision nd stor'e of spot
market informtionC nd
2 A re4uirement to udit spot market informtionC nd
% Procedures for delin' with confidentil informtion includin'1 EBceptions to the 'enerl rule tht confidentil informtion shll
not %e disclosedC nd
2 (onditions of disclosure of confidentil informtion.
3' MARKET INFORMATION AND CONFIDENTIALITY
3'' P!$5#s#$n $/ In/$!ma#$n
?.2.1.1 The pro$isions of this chpter re lwys su%ect to the
ri'hts nd o%li'tions of the Market Operator nd WESM
mem'er s in reltion to confidentil informtion s set out
in cluse ?.3.
?.2.1.2 In ddition to ny specific o%li'tion of the Market
Operator under the WESM Rules to pro$ide informtion
the Market Operator .
"hll upon written re4uest me $il%le to
%radin* Participants ny informtion concernin' the
opertion of the spot market pro$ided tht
sid informtion is not confidentil or
commercilly:sensiti$eC nd
% #y chr'e fee reflectin' the cost of pro$idin'
such informtion.
?.2.1.3 The Market Operator shll me pu%lic nd electroniclly
post informtion on the market price s well s resons for
ny si'nificnt mo$ement thereon nd pro$ide hrd copies
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of such informtionl mterils upon re4uest nd
reim%ursement of cost to produce the sme.
?.2.1.> The Market Operator shll me $il%le to the ERC ll
pertinent informtion which would help the ltter
effecti$ely perform its re'ultory nd o$ersi'ht functions.
?.2.1.? The Market Operator shll me $il%le to the OE ll
pertinent informtion which would help the ltter
effecti$ely perform its ener'y policy:min' function.
3'' S-sems and P!$"ed+!es
?.2.2.1 Informtion re4uired co$ered or otherwise contemplted
%y the !E"# Rules such s those pro$ided %y !E"#
mem%ers to the #ret *pertor or those pro$ided %y the
#ret *pertor to !E"# mem%ers shll %e pro$ided %y
mens of n electronic communiction system unless the
!E"# Rules specify otherwise or chn'ed or modified %y
the #ret *pertor.
?.2.2.2 Informtion pro$ided %y mens of n electronic
communiction system shll %e in ccordnce with the
templtes included in the sid electronic communication
system unless otherwise chn'ed or modified %y the
Market Operator s ppro$ed %y the PEM Board .
?.2.2.3 As fr s prctic%le the #ret *pertor shll
incorporte %indin' cnowled'ement receipt in its
electronic communiction system which would est%lish
the time the pertinent informtion is ctully recei$ed.
?.2.2.> Informtion is deemed to %e pu%lished %y the #ret
*pertor when the informtion is posted on the mret
informtion we%site.
?.2.2.? The #ret *pertor shll mintin nd pu%lish
electronic communiction procedures under which<
Informtion shll %e pro$ided %y WESM mem'er s to
the Market Operator
% Informtion shll %e pro$ided %y the Market
Operator to WESM mem'er sC nd
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c Informtion pu'lised on the mret in/ormation
#e'site my %e ccessed %y %radin* Participants.
?.2.2.6 )rom time to time the Market Operator in consulttion
with WESM Mem'ers! my re$iew nd lter<
The re4uirements for electronic communiction
systemsC nd
% Electronic communication procedures.
?.2.2.@ The Market Operator shll pro$ide the ERC nd OE ll
necessry fcilities to effecti$ely monitor the opertion of
the WESM on rel:time nd for re$iew purposes.
3''0 Pa!#"#pan Daa
The Market Operator shll mintin periodiclly updte s it considers
reson%ly necessry from time to time nd pu%lish<
A list of ll WESM mem'er s identifyin' those of them tht re
tradin* Participants
% A list of ll mem%ership pplicnts to the WESM nd identifyin'
those pplyin' to %ecome %radin* Participant
c A list of ll former WESM mem'er s nd the time tht ech cesed
to %e WESM mem'er sC nd
d A list of ll suspended %radin* Participants nd the time t which
ech ws suspended.
3''2 P,ann#n% and Des#%n Daa
?.2.>.1 (onsistent with the $rid Code the System operator is to
mintin re'ister of dt pro$ided %y %radin* Participants
and &et#ork Service Providers for plnnin' nd desi'n
purposes.
?.2.>.2 The System operator shll pro$ide on re'ulr %sis copy
of the re'ister of dt prepred under cluse ?.2.>.1 to the
Market Operator in form specified %y the Market
Operator .
3''3 In/$!ma#$n Re"$!ds
The Market Operator shll retin ll informtion pro$ided to it under the
WESM Rules for t lest ten yers in form it deems pproprite for
reson%le ccess s my %e re4uired %y the ERC or the OE.3''8 Ma!.e A+d#
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?.2.6.1 The PE# Auditor shll rrn'e for spot mret udit to %e
performed once ech 4urter or such other period s
determined %y the PE# Auditor.(As amended *- DOE DC
N$' 99:90:9992 daed Ma!"h 99)
?.2.6.2 The spot market udit shll co$er nd re$iew complince %y
the Market Operator with its procedures nd the
effecti$eness nd ppropriteness of systems utili5ed in the
opertion of the spot market! includin' %ut not limited to<
Llid udit certifictes for the current re$isions of
ll numeric softwreC
% The clcultions nd lloctions performed %y the
meterin* nd settlements systemsC
c illin' nd informtion systemsC
d The schedulin' nd dispatc processesC
e The processes for softwre mn'ement includin'
the Informtion nd (ommunictions Technolo'y
(hn'e #n'ement Process or NI(#PO instituted %y
the Market Operator su%ect to the conduct of
re'ulr udits s my %e determined under the
WESM RulesC
f The Market Operator ;s complince with the WESM
Rules.
The sid mret udit shll lso co$er ll new softwre nd
modifictions to the eBistin' softwre implemented throu'h
the I(#P.
(As amended *- DOE DC N$' 9::99 daed
De"em*e! 9)
?.2.6.3 The PE# Auditor my en''e su%ect to the PEM Board
ppro$l the ser$ices of 4ulified third prty Auditor s
outlined in cluse 1.?.2 nd cluse ?.2.6.2. The selection of
third prty Auditors shll %e ppro$ed %y the PEM Board .
(Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h
99)
?.2.6.> The PE# Auditor shll prepre report on the results of thespot market udit. The sid report shll %e mde $il%le
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to the OE the ERC the PEM Board nd WESM mem'ers.
(As amended *- DOE DC N$' 99:90:9992 daed
Ma!"h 99)
3'0 CONFIDENTIALITY
3'0' C$n/#den#a,#-
?.3.1.1 Ech WESM mem'er nd the Market Operator shll eep
confidentil ny confidentil informtion which comes
into their control possession or otherwise %e wre of.
?.3.1.2 A WESM mem'er nd the Market Operator <
"hll not disclose confidentil informtion to ny
person or entity eBcept s permitted %y the WESM
RulesC
% "hll only use or reproduce confidentil informtion
for the purpose for which it ws disclosed or for
purpose contemplted %y the WESM RulesC nd
c "hll not permit unuthori5ed persons to h$e
ccess to confidentil informtion.
?.3.1.3 Ech WESM mem'er nd the Market Operator shll use llreson%le ende$ors to<
Pre$ent unuthori5ed ccess to confidentil
informtion which is in its possession or controlC
nd
% Ensure tht ny person to whom it discloses
confidentil informtion o%ser$es the pro$isions of
this cluse ?.3 in reltion to tht informtion.
3'0' E"ep#$ns
"u%ect to cluse ?.3.3.1 this cluse ?.3 does not pre$ent<
The disclosure of informtion confidentil or otherwise %etween
nyone or more of the followin'<
1 The ERC nd the OE
2 The System operator
3 The Market Surveillance CommitteeC nd
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> Any other person or entity includin' %ut not limited to
committee ppointed %y the PEM Board in ccordnce with
the WESM Rules for the purposes of<
? The opertion security nd plnnin' of the power system
in ccordnce with the 7rid (odeC
6 (omplyin' with ny other instrument includin'
ny contrctul instrument or understndin' 'o$ernin'
the reltionship %etween the prties detiled in cluses
?.3.2 1 to ?C nd
@ Any other circumstnce which in the reson%le opinion
of the #ret *pertor is necessry to ssist the #ret
*pertor in est%lishin' nd opertin' the !E"# in
ccordnce with the WESM o%ecti$esC
% The disclosure use or reproduction of informtion if the rele$nt
informtion is t tht time 'enerlly nd pu%licly $il%le other
thn s result of %rech of this cluse ?.3C
c The disclosure of informtion %y WESM mem'er or the Market
Operator or %y persons to whom the WESM mem'er or the
#ret *pertor s the cse my %e hs disclosed tht
informtion to such s<
1 An employee or officer of the !E"# mem%er or
2 A le'l or other professionl d$iser uditor or other
consultnt of the !E"# mem%er or the #ret *pertors
the cse my %eC or
3 "imilr persons or entities
for purposes of complyin' with the WESM Rules or d$isin' the
WESM mem'er or the Market Operator in reltion to the WESM
Rules pro$ed tht the person recei$in' the informtion
undertes in writin' not to further disclose tht informtion to
ny other personC
d The disclosure use or reproduction of informtion with the
written consent of the person or persons who pro$ided the
rele$nt informtion under the WESM RulesC
e The disclosure use or reproduction of informtion to the eBtentre4uired %y lw or %y lwful re4uirement of<
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1 The ERC nd the OE C or
2 Any 'o$ernment uthority h$in' urisdiction o$er WESM
mem'er or the Market Operator
f The disclosure use or reproduction of informtion if necessry in
ccordnce with the lwful re4uirements of or in connection with
le'l proceedin's r%itrtion eBpert determintion or
other dispute resolution mechnisms reltin' to the WESM Rules
or for the purpose of d$isin' person in reltion thereto
pro$ided tht those to whom the informtion is disclosed
undertes in writin' not to further disclose tht informtion to
ny other personC
' The disclosure of informtion to the eBtent re4uired to protect
the sfety of personnel or e4uipmentC
h The disclosure use or reproduction of informtion %y or on %ehlf
of WESM mem'er or the Market Operator to the eBtent
reson%ly re4uired in connection with the WESM mem'er ;s or
the Market Operator ;s finncin' rrn'ements s the cse my
%e in$estment in WESM mem'er or disposl of WESM
mem'er ;s ssets pro$ided tht those to whom the informtion is
disclosed si'ns written undertin' not to further disclose tht
informtion to ny other personC
i The disclosure of informtion to the ERC nd OE nd ny other
'o$ernment uthority h$in' urisdiction o$er WESM mem'er
pursunt to the WESM Rules or otherwise.
The disclosure of i settlement mounts unpid %y the end of the
month nd ii the specific WESM mem'er tht filed to py the
settlement mounts. (As amended *- DOE C#!"+,a! N$' DC 90:
9;:99< daed 8 +,- 90)
3'0'0 C$nd##$ns
?.3.3.1 Any entity who recei$es informtion disclosed in
ccordnce with cluse ?.3.2 <
"hll not disclose the informtion to ny person
eBcept s pro$ided %y the !E"# RulesC nd
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% "hll only use the informtion for the purposes for
which it ws disclosed under cluse ?.3.2.
?.3.3.2 In the cse of disclosure under cluse ?.3.2c ?.3.2f
or ?.3.2i the WESM mem'er or the Market Operator s
the cse my %e who wishes to me the disclosure shll
prior to min' the disclosure inform the proposed
recipient of the informtion tht it is confidentil
informtion nd shll te pproprite precutions
includin' t the $ery lest securin' written undertin'
from the recipient tht such recipient will eep the
informtion confidentil to ensure tht the recipient eeps
the informtion confidentil in ccordnce with the
pro$isions of this cluse ?.3 nd does not use the
informtion for ny purpose other thn tht permitted
under cluse ?.3.2.
3'0'2 Indemn#- $ he Ma!.e Ope!a$!
Ech WESM mem'er indemnifies the Market Operator 'inst ny clim
ction dm'e loss li%ility eBpense or out'oin' which the Market
Operator pys suffers incurs or is li%le for in respect of ny %rech of
this cluse ?.3 %y tht WESM mem'er or ny officer 'ent or employee
of tht WESM mem'er . Pro$ided tht no !E"# Prticipnt shll %e li%le
for ny of the fore'oin' to the eBtent they rise from the 'ross
ne'li'ence or willful misconduct of the Market Operator .
3'0'3 S+!5#5a,
+otwithstndin' ny other pro$ision of the WESM Rules person shll
continue to comply with this cluse ?.3 fter tht person hs cesed to
%e WESM mem'er .
3'0'8 The Ma!.e Ope!a$! In/$!ma#$n
The Market Operator shll de$elop nd to the eBtent prctic%le
implement procedure ppro$ed %y the PEM Board to<
Protect informtion which it c4uires pursunt to the Market
Operator functions from use or ccess which is contrry to the
pro$isions of the WESM RulesC
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% Protect informtion which is commercilly sensiti$e from use or
ccess %y mem%ers of the PEM Board who re officers directors
or employees of WESM mem'er C nd
c &isseminte such informtion in ccordnce with its ri'hts
powers nd o%li'tions in mnner which promotes ese of entry
into nd the orderly opertion of the spot market.
3'0'; T#mea*,e
The #ret *pertor shll de$elop the timet%le for the pu%liction of
mret informtion in ccordnce with (hpter ? of the !E"# Rules.
(Added as pe! DOE DC' N$' 99:90:9992 daed Ma!"h 99)
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CHAPTER 8
INTER7ENTION AND MARKET SUSPENSION
8' SCOPE OF CHAPTER 8
This chpter 6 sets out<
The procedures which shll %e est%lished %y the Market Operator
System operator nd WESM Participants to ensure tht they re %le to
te ll necessry ctions in n emer*ency
% The procedures to %e followed %y the Market Operator System operator
nd WESM Participants in n emer*ency
c The procedures which re to te effect in the e$ent of thret to
system security (As amended *- DOE DC N$' 90::99< daed 8
De"em*e! 90)
d The circumstnces nd mnner in which the ERC throu'h the Market
Operator my intervene or suspend the spot marketC nd (As amended
*- DOE DC N$' 90::99< daed 8 De"em*e! 90)
e The responsi%ilities of the Market Operator to de$elop simulte nd
implement 'usiness continuity pln nd disaster recovery procedures.
(Added pe! DOE DC N$' 90::99< daed 8 De"em*e! 90)
8' O7ER7IEW
8'' P!epa!a#$n and Resp$nses
6.2.1.1 The System operator is responsi%le for 'i$in' directions
nd coordintin' the ctions which re to %e ten %y
WESM Participants and Market Operator whenthere is market suspension or intervention.
6.2.1.2 !here 0ntervention is wrrnted when the 'rid or
portion of the 'rid is in eBtreme stte condition s
est%lished in the $rid Code risin' from<
An emer*ency
% A thret to system security or
c An e$ent of /orce ma2eure.
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As amended *- DOE DC N$'92:9:99 daed 2
O"$*e! 92)
6.2.1.3 Inter$ention my %e wrrnted if there re interruptions in
the opertions of mret softwre used %y the Market
Operator to support $rious processes in the !E"# durin'
the simultion of the 'usiness continuity pln nd
disaster recovery procedures of the Market Operator
de$eloped under (luse 6...1. (Added pe! DOE DC N$'
90::99< daed 8 De"em*e! 90)
6.2.1.> &urin' intervention or market suspension the System
Operator nd Market Operator shll coordinte their
ctions to restore norml opertion of the po#er system
nd the mret.(Ren+m*e!ed pe! DOE DC N$' 90::
99< daed 8 De"em*e! 90)
6.2.1.? WESM Participants cnowled'e tht<
The opertion of the po#er system in$ol$es riss to
pu%lic sfety nd property nd therefore ccepts
tht the pro$isions of this chpter 6 re pproprite
nd reson%leC
% Their %usiness interests will %e su%ordinte to the
need for the Market Operator nd System operator
to implement emer*ency procedures in ccordnce
with the $rid Code nd cluse 6.3.2 nd to me
declrtions nd issue emer*ency directions under
cluse 6.? in n emer*ency
c "u%ect to cluse 6.2.1.1 the System operator shll
issue emer*ency directions in ccordnce with the
$rid Code! nd shll report such ction to the
Market Operator .
(Ren+m*e!ed pe! DOE DC N$' 90::99< daed 8
De"em*e! 90)
8'' Eemp#$n /!$m L#a*#,#- d+e $ Ma!.e S+spens#$n and Ine!5en#$n
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6.2.2.1 In the e$ents of market suspension or intervention ny
ction of the ERC! Market Operator! System operator or
WESM Participant in complince with the emer'ency
procedures pro$ided in this (hpter shll not constitute
%rech of the WESM Rules eBcept in the cse of n ct
committed in %d fith or 'ross ne'li'ence shll not %e
li%le for ny loss incurred %y WESM Participant s
result of ny ction ten %y the System operator or
Market Operator under this chpter 6.
6.2.2.2 +othin' in this chpter 6 is to %e ten to limit the %ility
of the System operator or Market Operator to te ny
ction or procedure under this chpter 6 which either the
System operator or Market Operator considers in their
%solute discretion to %e necessry to protect the pu%lic
or property.
8''0 Adm#n#se!ed P!#"e Cap
&urin' market suspension nd intervention the Market Operator shll
impose n administered price to %e used s %sis for settlements.
Prior to the spot market commencement date the Market Operator
shll de$elop nd pu%lish the methodolo'y for determinin' the
administered price to %e used durin' market suspension or intervention
of the spot market. "id administered price is to %e endorsed %y the
PEM Board for ERC approval. (As amended *- DOE DC N$' 993::99
daed N$5em*e! 993)'
8'0 EMER6ENCIES
8'0' Eme!%en"-
6.3.1.1 The System operator shll declre n emer*ency when it
determines the eBistence of sitution which hs n
d$erse mteril effect on electricity supply or which
poses s si'nificnt thret to system security. The
System operator shll report n emer*ency to the ERC.
6.3.1.2 An emer*ency my include<
A si'nificnt electricity supply cpcity shortfll
%ein' condition where there is insufficient
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*eneration or supply options $il%le to securely
supply in one or more re'ions of the po#er system
liely to %e ffected %y the e$entC
% A po#er system distur%nce due to n out'e
in the transmission net#ork or *eneratin* system
for which mret processes re inde4ute for
reco$eryC
c A si'nificnt en$ironmentl phenomenon
includin' wether storms or fires which re liely
to or re si'nificntly ffectin' the po#er system
for which market processes re inde4ute for
reco$eryC
d A system %lcout or si'nificnt po#er system
under $olt'e conditionC
e #teril dm'e to distri'ution system which hs
or is liely to d$ersely ffect the opertion of the
transmission system or to render the spot market
ineffecti$eC nd
f A sitution which the 7o$ernment proclims or
declres n emer'ency.
6.3.1.3 A WESM Participant shll notify the System operator s
soon s prctic%le of<
Any e$ent or sitution of which the WESM
Participant %ecomes wre where in the
reson%le opinion of the WESM Participant
tht e$ent or sitution is of ind descri%ed in
cluse6.3.1.2C nd
% Any ction ten %y the WESM Participant under its
sfety procedures or otherwise in response to tht
e$ent or sitution in ccordnce with the $rid
Code and istri'ution Code.
6.3.1.> The "ystem opertor my from time to time specify
procedures for communictin' the eBistence of n
emer'ency nd ll rele$nt informtion reltin' to theemer'ency to the !E"# Prticipnts.
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6.3.1.? +otwithstndin' ny other pro$ision contined in these
Rules the ER(&*E or the PE# ord my in$esti'te or
re4uire eBplntions re'rdin' n emer'ency direction
'i$en %y the "ystem opertor.
6.3.1.6 Ech !E"# Prticipnt shll use its %est ende$ors to
ensure tht its sfety pln permits it to comply with
emer'ency directions.
6.3.1.@ !hen the "ystem opertor hs determined tht n
emer'ency or the effect thereof hs ended the "ystem
opertor shll notify the #ret *pertor who in turn shll
notify ll !E"# Prticipnts nd the &*E tht the
emer'ency or the effect of such emer'ency hs ended.
8'0' Eme!%en"- P!$"ed+!es
6.3.2.1 &urin' the period when the po#er system my %e or is
ffected %y n emer*ency the System operator shll crry
out ctions in ccordnce with the system security nd
relia'ility *uidelines nd its o%li'tions if ny concernin'
sensiti$e lods to<
Identify the impct of the emer*ency on system
security in terms of the cp%ility of *eneratin*
units transmission systems or distri'ution systems
nd
% Identify nd implement the ctions re4uired to
restore the po#er system to its stisfctory
opertin' stte.
6.3.2.2 Emer*ency procedures re the procedures to %e ten %y
or t the direction of the System operator to<
#intin system security
% A$ert or reduce the effect of n emer*ency
c Issue notifictions nd wrnin's to Market
Operator te PEM Board! the OE nd ERC where
ppropriteC nd
d Restore the po#er system to stisfctory
opertin' stte immeditely fter n emer*ency.
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6.3.2.3 Emer'ency procedures my re4uire !E"# Prticipnt to
te ction or not to te ction in ccordnce with
emer'ency directions 'i$en %y the "ystem opertor.
6.3.2.> Prior to spot market commencement date the System
operator in consulttion with the Market Operator shll<
&e$elop pproprite emer'ency procedures in
ccordnce with the 7rid (ode nd &istri%ution
(ode. "uch procedures shll %e su%ect to ppro$l
of the PE# ordC nd
% Pu%lish detils of the ppro$ed emer'ency
procedures.
6.3.2.? The "ystem opertor shll in consulttion with the #ret
*pertor re$iew the emer'ency procedures from time to
time.
6.3.2.6 Ech WESM mem'er shll promptly<
(omply with ny emer'ency direction 'i$en %y the
"ystem opertor includin' emer'ency
directions re4uirin' the disconnection of
e4uipment from trnsmission system or
distri%ution system for reli%ility purposes unless
the !E"# Prticipnt reson%ly %elie$es tht n
emer'ency direction 'i$en %y the "ystem opertor
poses rel nd su%stntil ris of dm'e to its
e4uipment to the sfety of its employees or the
pu%lic or of undue inury to the en$ironmentC
% +otify the "ystem opertor if it intends not to
follow the emer'ency direction for ny of the
resons descri%ed in cluse6.3.2.6 C nd
c (omply with the "ystem opertor;s direction to the
fullest eBtent possi%le without cusin' the hrms
descri%ed in cluse 6.3.2.6 .
6.3.2.@ The System operator shll me $il%le copy of the
emer'ency procedures to ll WESM Participants within
se$en @ dys fter ech occsion on which theemer'ency procedures h$e %een updted.
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8'2 EMER6ENCY PLANNIN6 BY WESM PARTICIPANTS
8'2' WESM Pa!#"#pan Eme!%en"- C$na"s
6.>.1.1 Ech WESM Participant shll pro$ide the Market Operator nd System operator with<
An effecti$e mens of communiction %y which
representti$e of the WESM Participant my %e
contcted %y the Market Operator 2> hours dyC
nd
% The nme nd title of the WESM Participants
representti$e who cn %e contcted %y usin' tht
mens of communiction.
6.>.1.2 The representti$e of ech WESM Participant nominted
under cluse 6.>.1.1 shll %e person h$in' pproprite
uthority nd responsi%ility within the WESM Participant-s
or'ni5tion to act s the primry contct for the System
operator in the e$ent of n emer*ency.
6.>.1.3 Ech WESM Participant shll immeditely notify the
Market Operator nd System operator of chn'e to thedetils pro$ided under cluse 6.>.1.1.
8'2' WESM Pa!#"#pan P!$"ed+!es
6.>.2.1 Ech %radin* Participant nd &et#ork Service Provider
shll est%lish nd mintin its own internl sfety
procedures necessry to en%le it nd its Customers to
comply with emer*ency directions under this chpter.
6.>.2.2 Ech %radin* Participant nd &et#ork Service Provider
shll ensure tht the sfety procedures it est%lishes under
cluse 6.>.2.1 re consistent with the emer'ency
procedures est%lished under cluse 6.3.2.> nd the $rid
Code.
8'2'0 Eme!%en"- P!$"ed+!es A1a!eness
6.>.3.1 Ech %radin* Participant shll t ll times ensure tht ll
of its responsi%le officers nd stff nd their Customers
re fmilir with %oth the sfety nd the emer'ency
procedures.
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6.>.3.2 )or the purposes of cluses 6.>.3.1 nd 6.?.1 responsi%le
officers nd stff re those whose functions or res of
responsi%ility re such tht they re liely to %e re4uired
to me decisions or te ction in n emer*ency.
8'3 RESPONSE TO AN EMER6ENCY
8'3' De",a!a#$ns and D#!e"#$ns #n an Eme!%en"-
6.?.1.1 &urin' n emer*ency7
The System operator shll in coordintion with the
Market Operator issue emer*ency directions s it
reson%ly considers necessry which my include
%ut need not %e limited to directions to<
1 "witch off or re:route ener'y deli$ery from
$eneration Company
2 (ll e4uipment into ser$iceC
3 Te e4uipment out of ser$iceC
> (ommence opertion or mintin increse
or reduce cti$e or recti$e power outputC
? (urtil shut down or otherwise $ryopertion or outputC
6 "hed or restore lodC nd
@ "u%ect to cluse 6. do ny other ct or
thin' necessry to %e done for resons of
pu%lic sfety or the security of the power
system or of undue inury to the
en$ironment.
% The System operator shll lso<
(As amended *- DOE DC N$' 993::99 daed
N$5em*e! 993)
1 Implement ny load seddin* in mnner
consistent with the system security nd
relia'ility *uidelines nd
2 To the eBtent possi%le determine rottin'
outa*e pln nd rotte ny load seddin* re4uirements.
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6.?.1.2 !hen n emer'ency rises the System operator shll<
Immeditely notify the #ret *pertor
% +otify the ER( nd the &*E s soon s reson%ly
prctic%leC
c +otify !E"# Prticipnts s soon s reson%ly
prctic%le of the commencement nture eBtent
nd eBpected durtion of the emer'ency nd the
wy in which the "ystem *pertor reson%ly
nticiptes it will ct in response to the emer'encyC
nd
d +otify the ERC! the OE! nd WESM Participants of
ny mteril chn'es in the nture eBtent nd
eBpected durtion of n emer*ency.
6.?.1.3 =pon %ein' notified of n emer'ency ech WESM
Participant shll d$ise ll responsi%le officers nd stff
s defined in cluse 6.>.3.2 nd their Customers! of the
eBistence nd nture of the emer*ency.
6.?.1.> Ech WESM Participant shll su%ect to cluse 6.?.1.?<
(omply with sfety procedures the emer'ency
procedures pplic%le to the !E"# Prticipnt in
the circumstnces this chpter nd ll emer'ency
directions 'i$en %y the "ystem *pertor nd
% (ooperte with the #ret *pertor nd the "ystem
opertor to en%le the "ystem *pertor to
implement the emer'ency procedures.
6.?.1.? !here there is conflict %etween these Rules nd<
The re4uirements of !E"# Prticipnt;s sfety
proceduresC
% The emer'ency procedures pplic%le to the !E"#
Prticipnt in the rele$nt circumstncesC
c This chpterC
d Any procedures de$eloped %y the "ystem opertor
or
e An emer'ency direction 'i$en %y the "ystemopertor the "ystem opertor shll decide which of
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those re4uirements or prt of those re4uirements is
to pre$il nd d$ise the rele$nt !E"#
Prticipnts ccordin'ly.
8'3' Ine!5en#$n D+e $ Eme!%en"-
6.?.2.1 If in the %est ud'ment of the System operator
insufficient time eBists for the spot market to ddress n
emer'ency the System operator shll te ny mesures it
considers to %e reson%le nd necessry to o$ercome the
emer*ency! includin' without limittion<
Increse the 'enertion or supply cp%ility such s
re4uestin' $il%le %ut not committed 'enertin'
units to strt:up or recll trnsmission e4uipment
out'esC
% &isconnect one or more connection points s
considered %y the "ystem opertor to %e necessryC
c &irect in ccordnce with cluse 6.?.1
(ustomer te such steps s re reson%le to
immeditely reduce its lodC
d (onstrin:on or constrin:off 7enertion
(ompnyC nd
e Re4uire !E"# Prticipnts to do ny reson%le ct
or thin' which the "ystem Operator %elie$es
necessry in the circumstnces.
Therefter the System operator shll report in detil to
the PEM Board in detil re'rdin' the ctions nd
circumstnces under which the inter$ention ws mde.
8'8 SYSTEM SECURITY
8'8' S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes
6.6.1.1 In consulttion with WESM Participants nd the Market
Operator the System operator shll de$elop nd
periodiclly updte system security nd relia'ility
*uidelines su%ect to ppro$l of the PEM Board .
6.6.1.2 The system security nd relia'ility *uidelines de$elopedunder cluse 6.6.1.1 shll %e pro$ided to<
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The ERC nd the OE on completion nd fter ny
updte thereonC
% WESM ParticipantsC nd
c Interested persons upon re4uest.
6.6.1.3 If the System operator proposes chn'e to the system
security nd relia'ility *uidelines which in the System
operator ;s reson%le opinion is mteril chn'e then
prior to its implementtion tht proposed chn'e shll %e
re$iewed in ccordnce with the $rid Code and
istri'ution Code.
8'8' N$#"e $/ Th!ea $ S-sem Se"+!#-
6.6.2.1 =pon determintion of the eBistence or the liely
possi%ility of thret to system security the System
operator shll without dely notify the WESM Participants
nd the Market Operator of such thret. "id notice shll
include the detils of tht thret s well s<
The nture nd 'enerl m'nitude of the thret to
system security includin' n estimte of the liely
durtion thereof nd the liely shortfll in supply
liely to occur durin' tht periodC
% The timefrme in which the "ystem opertor will
need to inter$ene in the spot mret if the thret
to system security does not su%side without
inter$ention %y the "ystem opertor nd
c The re'ions of the power system in which the thret
to system security is liely to %e locted.
6.6.2.2 If the System operator pro$ides the notice with detils of
thret to system security to WESM Participants in
ccordnce with cluse 6.6.2.1 the System operator my
issue instructions re4uirin' ech WESM Participant to
pro$ide %est estimtes of the followin'<
A "cheduled 7enertion (ompny;s plnt $il%ility
to either increse or decrese 'enertionC nd
% A (ustomer;s %ility to either increse or decresemarket load.
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6.6.2.3 &espite cluse ?.3 !E"# Prticipnt shll not withhold
informtion re4uired %y the "ystem opertor in ccordnce
with cluse 6.6.2.2. The !E"# Prticipnt shll comply
with the instructions nd pro$ide the informtion re4uired
s soon s prctic%le.
6.6.2.> The "ystem opertor shll tret ll informtion pro$ided to
it %y !E"# Prticipnt under cluse 6.6.2.2 s
confidentil informtion nd my only use tht informtion
for the followin' purposes<
#intinin' or re:est%lishin' system
security %y issuin' emer'ency directions under
cluses 6.6.> nd 6.6.?C
% #in' decision under cluse 6.6.3C nd
c Re'ultory reportin'.
6.6.2.? The "ystem opertor shll inform !E"# Prticipnts nd
the #ret Operator immeditely when it reson%ly
considers thret to system security to %e t n end.
8'8'0 Resp$nse $ S-sem Se"+!#- Th!ea
6.6.3.1 If the "ystem opertor hs identified thret to system
security nd reson%ly considers tht sufficient time
eBists for the thret to su%side without inter$ention the
"ystem opertor shll in ccordnce with the procedures
set out in cluse 6.6.> fcilitte spot mret response
to o$ercome the thret to system security.
6.6.3.2 If the "ystem opertor hs identified thret to system
security nd it does not %elie$e tht sufficient time eBists
for the thret to su%side without intervention then the
System operator shll<
Te ny mesures it %elie$es to %e reson%le nd
necessry to mintin or restore system security
includin' those set out in cluse 6.6.?C nd
% Act t ll times in ccordnce with the system
security nd relia'ility *uidelines.
8'8'2 Ma!.e Resp$nse $ Th!ea $ S-sem Se"+!#-
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6.6.>.1 If the System operator %elie$es tht sufficient time eBists
for thret to system security to su%side without
intervention the System operator shll<
If it hs not lredy done so pro$ide WESM
Participants with the informtion set out under
cluse 6.6.2.1C nd
% Ad$ise the Market Operator nd those WESM
Participants who the System operator considers
would %e re4uired to te ction or cese tin'
ction if the thret to system security is not
resol$ed without inter$ention of the followin'
informtion<
1 The eBistence of the thret to system
security C nd
2 The liely nture of ny re4uirement of the
7rid *pertor if the System operator
determines tht it should intervene.
6.6.>.2 The ction or cesstion of ction re4uired under cluse
6.6.>.1% my include %ut is not limited to chn'es %y
the #ret *pertor to the pre:disptch schedule
ffectin' scheduled 'enertin' units schedule networ
ser$ices ndDor scheduled lod.
6.6.>.3 The #ret *pertor my<
In$ite %radin* Participants to re$ise or re:%id
their physicl cp%ilities su%mitted %y such
%radin* Participants in ccordnce with cluse
3.> in respect of the rele$nt tradin* intervalC nd
% +otify ll %radin* Participants of si'nificnt
chn'es to the informtion pro$ided under this
cluse 6.6.>.
6.6.>.> WESM Participants shll comply with ll re4uests nd
directions issued %y the Market Operator under this cluse
6.6.>.
8'8'3 Ine!5en#$n D+e $ S-sem Se"+!#- Th!ea
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6.6.?.1 If in the %est ud'ment of the System operator
insufficient time eBists for the spot market to ddress
thret to system security the System operator shll te
ny mesures it considers to %e reson%le nd necessry
to o$ercome the thret to system security includin'
without limittion<
Increse the *eneration or supply cp%ility such s
re4uestin' $il%le %ut not committed *eneratin*
units to strt:up or recll transmission e4uipment
outa*es
% &isconnect one or more connection points s
considered %y the System operator to %e necessryC
c &irect in ccordnce with cluse 6.?.1 Customer
to te such steps s is reson%le to immeditely
reduce its lodC
d (onstrin:on or constrin:off $eneration
Company C nd
e Re4uire WESM Participants to do ny reson%le ct
or thin' which the System Operator %elie$es
necessry in the circumstnces.
6.6.?.2 Therefter the System operator shll report in detil to
the PEM Board in detil re'rdin' the ctions nd
circumstnces under which the inter$ention ws mde.
8'; FORCE MAEURE
8';' F$!"e ma4e+!e e5en
A /orce ma2eure is the occurrence in tradin* interval of n e$ent or
e$ents not within the reson%le control directly or indirectly of the
Market Operator nd WESM mem'er to the eBtent tht such e$ent
despite the eBercise of the reson%le dili'ence cnnot %e or %e cused
to %e pre$ented or remo$ed nd hs resulted in reduction in the
norml cpcity of prt or ll of the power transmission system durin'
tht tradin* interval nd such reduction is liely to mterilly ffect the
opertion of the spot market or mterilly threten system security.
8';' F$!"e ma4e+!e e5enE$ents of /orce ma2eure shll include<
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1 #or networ trou%le tht cused prtil or system:wide
%lcoutC
2 #ret system hrdwre or softwre filure tht mes it
impossi%le to recei$e or process mret offerD%id informtion or
produce mret schedules due to erroneous rel:time sttus input
dt or disptch the system in ccordnce with the WESM RulesC
nd
3 Any other e$ent circumstnce or occurrence in nture of or
similr in effect to ny of the fore'oin'.
As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
8';'0 N$#/#"a#$n
6.@.3.1 The !E"# Prticipnt shll notify the #ret *pertor s
soon s reson%ly possi%le of the occurrence of ny force
meure e$ent.
6.@.3.2 The Market Operator shll notify ll %radin* Participants
s soon s reson%ly possi%le of the nture of the /orce
ma2eure nd the eBtent to which the /orce ma2eure
ffects the opertion of the spot market.
8';'2 O*,#%a#$ns $/ WESM Pa!#"#pans
WESM Participants shll use ll reson%le ende$ors to<
Ensure tht they do not cuse or eBcer%te /orce ma2eure
e$entC nd
% #iti'te the occurrence nd effects of /orce ma2eure e$ent.
8'< BUSINESS CONTINUITY PLAN AND DISASTER RECO7ERY PROCEDURES OF
THE MARKET OPERATOR (Added pe! DOE DC N$' 90::99< daed 8
De"em*e! 90)
8'<' De5e,$pmen $/ B+s#ness C$n#n+#- and D#sase! Re"$5e!- P!$"ed+!es
6..1.1 In consulttion with the System Operator! the Market
Operator shll de$elop nd implement usiness (ontinuity
Pln nd &isster Reco$ery Procedures to ensure
opertionl continuity of the !E"# in cses of
emer'encies nd force meure e$ents. Pro$ided tht the
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sid pln nd procedures shll %e ppro$ed %y the PEM
Board.
6..1.2 The Market Operator shll re$iew nd updte the usiness
(ontinuity Pln nd &isster Reco$ery Procedures s my
%e necessry pro$ided tht ny chn'es thereto shll %e
ppro$ed %y the PEM Board.
8'<' S#m+,a#$ns
6..2.1 The Market Operator shll re'ulrly simulte the
procedures set forth in the usiness (ontinuity Pln s well
s the &isster Reco$ery Procedures to ensure the
prepredness of the Market Operator! System Operator
nd %radin* Participants in the e$ent of emer'encies
ffectin' mret opertions. The Market Operator shll
e$lute the results of the simultion eBercise nd shll
identify deficiencies in the procedures if ny. In cses of
deficiencies in the procedures the Market Operator shll
recommend correcti$e mesures for ppro$l of the PEM
Board. Therefter the Market Operator shll pro$ide
report to the PEM Board! OE! nd ERC on the result of
the simultion nd the implementtion of the usiness
(ontinuity Pln nd &isster Reco$ery Procedures.
6..2.2 The Market Operator shll inform the %radin* Participants
nd the System Operator of the simultions t lest thirty
30 dys prior to the conduct of the sme.
6..2.3 The Market Operator shll lso notify ll %radin*
Participants nd the System Operator s soon s
reson%ly possi%le if the simultion or implementtion of
its usiness (ontinuity Pln nd &isster Reco$ery
Procedures my interrupt the opertions of mret
softwre used %y the Market Operator to support $rious
processes in the !E"#. The Market Operator shll use ll
efforts to minimi5e ny possi%le mret interruption in
the conduct of the simultion or implementtion of the
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usiness (ontinuity Pln nd &isster Reco$ery
Procedures.
8'= MARKET SUSPENSION
(Ren+m*e!ed pe! DOE DC N$' 90::99< daed 8 De"em*e! 90)
8'=' C$nd##$ns /$! S+spens#$n $/ he Ma!.e
6.9.1.1 Pursunt to "ection 30 of the Act! the ERC shll suspend
the opertion of the spot market or declre temporry
wholesle electricity spot market filure in cses of<
+turl clmitiesC or
% )ollowin' officil declrtion of ntionl nd
interntionl security emer'ency %y the President
of the Repu%lic.
8'=' De",a!a#$n $/ Ma!.e S+spens#$n
6.9.2.1 The spot market cn only %e suspended %y declrtion
%y the ERC under cluse 6..1.1 nd if the spot market is
suspended<
The ERC shll notify the Market Operator nd
% The Market Operator shll notify ll WESMParticipants! s soon s possi%le.
6.9.2.2 The spot market is deemed suspended t the strt of the
tradin* interval in which the ERC d$ises the Market
Operator tht the spot market is suspended.
6.9.2.3 )ollowin' declrtion %y the ERC under cluse 6.9.1.1
the spot market is to remin suspended until the ERC
notifies the Market Operator tht spot market opertion is
to resume.
6.9.2.> The Market Operator shll promptly notify ll WESM
Participants tht spot market opertion is to resume nd
the time t which spot market opertion is to resume.
6.9.2.? +otwithstndin' suspension of the spot market the
Market Operator my issue emer'ency directions to WESM
Participants in ccordnce with cluse 6.?.1.
8'='0 E//e" $/ Ma!.e S+spens#$n
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6.9.3.1 The market price durin' tradin* interval in which the
ERC hs declred the spot market to %e suspended nd up
to the time tht the mret resumes in ccordnce with
6..2.> is to %e determined %y the Market Operator in
ccordnce with cluse 6.2.3.
6.9.3.2 &urin' tradin* interval in which the spot market is
suspended the WESM Rules will continue to pply with
such modifictions s the Market Operator reson%ly
determines to %e necessry tin' into considertion the
circumstnces nd conditions 'i$in' rise to the
decision %y the ERC to suspend the spot market.
8'='2 Ine!5en#$n Rep$!
6.9.>.1 =pon the concurrence of one or more of the followin'
e$ents<
An intervention
% An e$ent which in the System operator ;s
reson%le opinion is or my %e thret to system
security
c A force meure e$entC or
d An emer'ency
the PE# ord shll within ten dys thereof direct the
#ret "ur$eillnce (ommittee to in$esti'te the
circumstnces of tht e$ent nd prepre report to
ssess<
The de4ucy of the rele$nt pro$isions of the
!E"# Rules in reltion to the e$ent or e$ents which
occurredC
% The ppropriteness of ctions ten %y the "ystem
opertor nd the #ret *pertor in reltion to the
e$ent or e$ents which occurredC
c The costs incurred %y !E"# mem%ers s
conse4uence of respondin' to the e$ent or e$entsC
nd
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d Any findin' of potentil fult of ny !E"#
Prticipnt includin' preliminry recommendtion
for further e$lution %y the PE# Auditor.
6.9.>.2 A copy of the report prepred under cluse 6.9.>.1 shll %e
pro$ided to<
The PE# ordC
% The ER( nd the &*EC nd
c !E"# Prticipnts nd interested persons on
re4uest.
8'='3 Ma!.e S+spens#$n Rep$!
6.9.?.1 !ithin ten 'usiness days followin' declrtion %y the
ERC under cluse 6.9.1.1 the Market Surveillance
Committee shll in$esti'te the circumstnces of tht
e$ent nd prepre report to ssess<
The de4ucy of the pro$isions of the !E"# Rules
rele$nt to the e$ent or e$ents which occurredC
% The ppropriteness of ctions ten %y the #ret
*pertor in reltion to the e$ent or e$ents which
occurredC nd
c The costs incurred %y the !E"# mem%ers s
conse4uence of respondin' to the e$ent or e$ents.
6.9.?.2 A copy of the report prepred under cluse 6.9.?.1 shll %e
pro$ided to<
The PE# ordC
% The ER( nd the &*E on completion of the reportC
nd
c !E"# Prticipnts nd interested persons on
re4uest.
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CHAPTER ;
ENFORCEMENT AND DISPUTES
;' SCOPE OF CHAPTER ;
In line with the principles of self:'o$ernnce eBpeditious ust nd lest
eBpensi$e disposition of disputes nd considerin' the continuous nture of the
trnsctions nd opertions of the WESM this chpter sets out<
The responsi%ilities for ensurin' tht ll WESM mem'er s comply with the
WESM RulesC
% The procedures on how the lle'ed %reches will %e delt with
includin'<
1 The correct prty to whom notice of n lle'ed %rech of the
WESM Rules %y WESM mem'er shll %e 'i$enC
2 The mnner in which n lle'ed %rech is to %e in$esti'tedC
3 The mnner in which %rech is to %e snctionedC
c *ther pro$isions on how disputes re to %e resol$edC nd
d The ppointment of n En/orcement and Compliance O//icer ispute
Resolution Administrator nd selection of meditors nd r%itrtors tht
shll form prt of the r%itrtion pnel. (As amended *- DOE DC N$'
998:9:999 daed 9 an+a!- 998 and /+!he! amended *- DOE DC
N$' 9:9:999 daed 3 Fe*!+a!- 9)
;' ENFORCEMENT
;'' C$mp,#an"e
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The PEM Board in consulttion with the Market Operator nd the
System operator shll do ll thin's reson%ly necessry to ensure tht
ll WESM mem'er s comply with the WESM Rules.
;'' B!ea"hes $/ he WESM R+,es *- WESM mem*e!s'
(As amended *- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
@.2.2.1 If WESM mem'er or the Market Operator hs reson%le
'rounds to %elie$e tht nother WESM mem'er my h$e
committed or my %e committin' %rech of the WESM
Rules the WESM mem'er or the Market Operator shll
notify the PEM Board of the lle'ed %rech in writin' s
soon s possi%le.
@.2.2.2 The PE# ord shll direct the En/orcement and
Compliance O//icer to in$esti'te the lle'ed %rech s
soon s possi%le when< (As amended *- DOE DC N$'
998:9:999 daed 9 an+a!- 998)
A WESM mem'er or the #ret *pertor notifies
the PEM Board of n lle'ed %rech of the WESM
Rules in ccordnce with cluse @.2.2.1C or
% The PEM Board hs reson%le 'round to %elie$e
tht the WESM mem'er hs committed or is
committin' n ct pro%%ly in $ioltion of te
WESM RulesC or
c The #ret "ur$eillnce (ommittee su%mits
report showin' suspected %reches of the !E"#
Rules %y !E"# mem%ers.(Added as pe! DOE DC N$'
998:9:999 daed 9 an+a!- 998
@.2.2.3 The En/orcement and Compliance O//icer shll issue
written notice to the WESM mem'er who is lle'ed to %e
in %rech of the WESM Rules within fi$e clendr dys
upon receipt of notice from the PEM Board '(As amended
*- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
@.2.2.> The sid notice issued %y the En/orcement and Compliance
O//icer shll< (As amended *- DOE DC N$' 998:9:999
daed 9 an+a!- 998)
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"pecify the nture of the %rech nd the snctions
tht my %e imposed if the %rech is not remediedC
% Re4uire the WESM mem'er to eBplin in writin' the
lle'ed %rech within ten 10 clendr dys from
receipt thereofC nd
c *rder the !E"# #em%er who is in lle'ed
%rech to immeditely remedy the ct or omission
comprisin' the lle'ed %rech or some other
remedil mesure if in the opinion of the
En/orcement and Compliance O//icer! eBercisin'
due nd necessry dili'ence %elie$es tht some
remedil or pre$enti$e mesure should %e ten to
%te the effects of the ct or omission complined
ofC Pro$ided tht i complyin' with the order shll
not %e deemed s n dmission of 'uilt of the ct or
omission complined of nd ii shll %e reco'ni5ed
s miti'tin' fctor if the complyin' prty is lter
determined to %e in %rech.(As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
@.2.2.? The notice shll %e copy furnished to<
The PEM Board C JndK
% The ERC!
% the mret opertor(Added as pe! DOE DC N$'
998:9:999 daed 9 an+a!- 998)
within fi$e 'usiness days from issunce of notice.
@.2.2.6 The En/orcement and Compliance O//icer fter ccordin'
the prties due process shll determine whether the WESM
mem'er in 4uestion is in %rech of the WESM Rules. (As
amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998)
@.2.2.@ If the En/orcement and Compliance O//icer determines
tht WESM mem'er hs indeed %reched WESM Rule
the En/orcement and Compliance O//icer shll re4uire in
writin' the WESM mem'er to remedy the %rech within reson%le period of timeC Provided tat the period to
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remedy s determined %y the En/orcement and
Compliance O//icer shll te in considertion ll the
ttendnt circumstnces surroundin' the %rech includin'
the nture nd eBtent of dm'es or inuries cused s
well s the 4uicest possi%le time re4uired to correct the
%rech. (As amended *- DOE DC N$' 998:9:999 daed
9 an+a!- 998)
@.2.2. The En/orcement and Compliance O//icer my further
recommend to the PE# ord tht the !E"# mem%er
determined to %e in %rech %e suspended in ccordnce
with cluse 3.1?.@ if the sid #em%er hs< As amended
*- DOE DC N$' 998:9:999 daed 9 an+a!- 998)
(ommitted such %rech of the WESM Rules nd
tht the %rech cnnot %e rectifiedC
% (ontinued to %rech the WESM Rules o$er period
of timeC or
c )iled to remedy %rech fter it hs %een
re4uired to do so.
The En/orcement and Compliance O//icer my recommend
to the PE# ord for ppro$l the suspension of the prty
in %rech in ccordnce with cluse 3.1?.@.
@.2.2.9 If the %rech is of such nture tht pyment of
compenstion to ffected prties is re4uired the Market
Operator on %ehlf of the ffected prty my me
demnd for pyment under the WESM Rules without
preudice to the fines nd penlties tht the ERC my
impose.
;''0 A,,e%ed B!ea"hes $/ he WESM R+,es *- he Ma!.e Ope!a$! $! S-sem
Ope!a$!
@.2.3.1 If WESM mem'er hs reson%le 'rounds to %elie$e tht
te Market Operator or System operator is in %rech of
the WESM Rules the WESM mem'er shll notify in writin'
the PEM Board of the %rech.
@.2.3.2 If the PEM Board considers tht the Market Operator orSystem Operator hs committed %rech of the WESM
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Rules the PEM Board shll direct the En/orcement and
Compliance O//icer to in$esti'te the lle'ed %rech s
soon s possi%le. (As amended *- DOE DC N$' 998:9:
999 daed 9 an+a!- 998)
@.2.3.3 The Enforcement nd (omplince *fficer shll issue
written notice to the #ret *pertor or the "ystem
opertor within fi$e %usiness dys upon receipt of notice
from the PE# ord. (As amended *- DOE DC N$' 998:
9:999 daed 9 an+a!- 998)
@.2.3.> The notice which the Enforcement nd (omplince *fficer
is re4uired to issue under cluse @.2.3.3 shll< (As
amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998)
"pecify the nture of the %rech nd the snctions
which my %e imposed if the %rech is not
remediedC nd
% Re4uire the Market Operator or the System
operator to eBplin in writin' the lle'ed %rech
within reson%le period of time.
@.2.3.? The notice issued under cluse @.2.3.3 shll %e copy
furnished to<
The PE# ordC nd
% The ER(.
@.2.3.6 If the %rech is of such nture tht pyment of
compenstion to ffected prties is re4uired the PE#
ord on %ehlf of the ffected prty my me demnd
for pyment from the #ret *pertor or the "ystem
opertor under the !E"# Rules without preudice to the
fines nd penlties tht the ER( my impose.
@.2.3.@ If %rech %y the Market Operator is not rectified within
reson%le time from the notice issued under cluse
@.2.3.3 or is incp%le of rectifiction the PEM Board my
file forml complint to the ERC.
;''2 In5es#%a#$ns
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@.2.>.1 The En/orcement and Compliance O//icer my re4uest
from the WESM mem'er who is lle'ed to %e in %rech of
the WESM Rules ll informtion reltin' to the %rech. (As
amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998)
@.2.>.2 If the En/orcement and Compliance O//icer mes
re4uest for informtion under cluse @.2.>.1 it shll
pro$ide to the WESM mem'er to whom the re4uest is
mde the resons for the re4uest. (As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
@.2.>.3 If WESM mem'er fils to comply with directi$e or
re4uest %y the Enforcement nd (omplince *fficer for
informtion under cluse @.2.>.1 the Enforcement nd
(omplince *fficer my re4uest the #ret
"ur$eillnce (ommittee to in$esti'te the mtter nd to
prepre report or such other documenttion s the
Enforcement nd (omplince *fficer my determine. (As
amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998)
@.2.>.> A !E"# #em%er shll cooperte with the #ret
"ur$eillnce (ommittee to underte the in$esti'tion nd
to prepre the report or other documenttion under cluse
@.2.>.3 nd shll t the re4uest of the #ret "ur$eillnce
(ommittee use its %est ende$ors to ensure tht third
prties me $il%le such informtion s the person my
reson%ly %e re4uired for the purpose of the
in$esti'tion.
@.2.>.? In the e$ent tht n lle'ed %rech eBists the prticipnt
in %rech shll %er the cost of the in$esti'tion nd
preprtion of the report or other documenttion under
cluse @.2.>.3.
@.2.>.6 Any report or other documenttion referred to in this
cluse @.2.> my%e used in ny proceedin' under or in
reltion to the WESM Rules or for the purpose of commencin' ny such proceedin'.
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@.2.>.@ All informtion pro$ided under this cluse @.2.> shll %e
treted in ccordnce with cluse ?.3.
;''3 San"#$ns
@.2.?.1 The ERC shll h$e the ori'inl nd eBclusi$e urisdiction
o$er ll cses contestin' rtes fees fines nd penlties
imposed %y the ERC in the eBercise of its powers functions
nd responsi%ilities nd o$er ll cses in$ol$in' disputes
%etween nd mon' prticipnts or plyers in the ener*y
sector.
@.2.?.2 In line with the principles stted in cluse @.1 the PEM
Board my impose snctions on ny prticipnt of the
WESM for %rech of ny pro$ision of the WESM RulesC
Pro$ided tht this is without preudice to the uthority of
ERC to impose fines nd penlties pursunt to "ection>6 of
the Act.
;''8 A"#$ns *- A%ens? Emp,$-ees $! O//#"e!s $/ Pa!#"#pans
The ct of omission of ny prtner 'ent officer employee or ny
person ctin' for or in %ehlf of WESM mem'er or the Market
Operator constitutin' %rech of the WESM Rules shll %e considered
the ct or omission of the WESM mem'er .
;''; P+*,#"a#$n
"u%ect to cluse ?.3 the En/orcement and Compliance O//icer shll
pu'lis monthly report settin' out summry for the period co$ered
%y the report of ll ctions nd rulin's mde durin' tht period in
reltion to the enforcement of the WESM Rules. (As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
;''< App$#nmen $/ an En/$!"emen and C$mp,#an"e O//#"e!
(Added as pe! DOE DC N$' 998:9:999 daed 9 an+a!- 998)
@.2..1 The President of PE#( shll ppoint person to ct s
Enforcement nd (omplince *fficer with the concurrence
of the PEM Board . (Added as pe! DOE DC N$' 998:9:
999 daed 9 an+a!- 998)
;''= Des#%na#$n $/ a C$mp,#an"e O//#"e! /$! WESM Mem*e!? Ma!.e
Ope!a$! and S-sem Ope!a$!(Added as pe! DOE DC N$' 99:9;:999< daed 09 +ne 99)
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@.2.9.1 Ech !E"# #em%er the Market Operator the System
Operator #eterin' "er$ice Pro$ider nd ny other !E"#
"er$ice Pro$iders shll desi'nte (omplince *fficer in
their respecti$e or'ni5tions. (Added as pe! DOE DC N$'
99:9;:999< daed 09 +ne 99)
@.2.9.2 The (omplince *fficer shll< (Added as pe! DOE DC N$'
99:9;:999< daed 09 +ne 99)
#onitor nd underte necessry cti$ities to
ensure the full complince of their respecti$e
or'ni5tion to the EPIRA the EPIRA Implementin'
Rules nd Re'ultions WESM Rules nd the !E"#
#ret #nulsC nd de$elop necessry procedures
nd 'uidelines for this purpose. (Added as pe! DOE
DC N$' 99:9;:999< daed 09 +ne 99)
% )rom time to time if the (omplince *fficer deems
it necessry or pproprite propose policies or
mendments to the WESM Rules ndDor !E"#
#ret #nuls to enhnce or de$elop the !E"#
enforcement nd complince with the o%ecti$e of
promotin' 'ood commercil nd technicl
prctices. (Added as pe! DOE DC N$' 99:9;:
999< daed 09 +ne 99)
c e responsi%le in fcilittin' nd coordintin' with
the !E"# Enforcement (omplince *ffice E(* ll
mtters reltin' to the enforcement nd
complince of their respecti$e or'ni5tion
includin' the pro$ision of the necessry informtion
nd dt s my %e re4uired %y ny of the !E"#
7o$ernnce (ommittees nd %y the E(*. (Added as
pe! DOE DC N$' 99:9;:999< daed 09 +ne
99)
d "u%mit report to the E(* concernin' their
respecti$e or'ni5tions complince with WESM
Rules nd !E"# #ret #nuls on n nnul %sisor s my %e determined %y the E(* or ny of the
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!E"# 7o$ernnce (ommittees. (Added as pe! DOE
DC N$' 99:9;:999< daed 09 +ne 99)
;'0 DISPUTE RESOLUTION
;'0' App,#"a#$n and 6+#d#n% P!#n"#p,es
@.3.1.1 The dispute resolution procedures set out in this cluse @.3
pply to ll disputes reltin' to or in connection with
trnsctions in the WESM which my rise %etween or
mon' ny of the followin'<
The Market Operator C
% The System Operator C
c The PEM Board nd its !orin' 7roups eBcept the
ispute Resolution Administrator
d WESM mem'er sC
e Intendin' WESM mem'er sC
f Persons who h$e %een notified %y the Market
Operator under cluse 2.?.6.1 on the followin'
'rounds<
1 n ppliction for re'istrtion s WESMmem'er hs %een unsuccessfulC
2 the ppliction or interprettion of the WESM
RulesC
3 the ppliction under or in reltion to
contrct %etween two or more persons or
entities referred to in cluses @.3.1.1 to f
where tht contrct pro$ides tht the dispute
resolution procedures under the WESM Rules
re to pply to ny dispute under or in reltion
to the contrct with respect to the ppliction
of the WESM RulesC
> dispute under or in reltion to the rules nd
re'ultions issued %y the ERC nd the OE
under the Act where such rules nd re'ultions
pro$ide tht the dispute resolution proceduresunder the WESM Rules re to pply to ny
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dispute under or in reltion to tht industry
code or rules nd re'ultionsC (As amended *-
DOE N$' 993::99 daed N$5em*e!
993)
? the filure of n entity or entities referred to in
cluses @.3.1.1 to e to ct or %eh$e in
mnner consistent with the WESM RulesC
6 n o%li'tion to settle pyment under the
WESM RulesC
The forementioned prties shll %ind themsel$es with the
effect of su%mittin' ny dispute contro$ersy or clim
risin' out of or reltin' to WESM trnsction to which
they re or will %e prty for settlement %y r%itrtion in
ccordnce with the dispute resolution pro$isions pro$ided
herein.
(As amended *- DOE DC N$' 9:9:999 daed 3
Fe*!+a!- 9)
@.3.1.2 )or the $oidnce of dou%t the dispute resolution
procedures set out in this cluse @.3 pply to disputes
%etween two or more entities from nd within ech of the
cte'ories set out in cluses @.3.1.1 to e nd fs
pproprite.
@.3.1.3 !here dispute of ind set out in cluse @.3.1.1 rises
the prties concerned shll comply with the dispute
mn'ement protocol set out in this (hpter.(As amended
*- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
@.3.1.> !E"# #em%ers shll comply with the dispute resolution
process of the !E"# Rules %efore filin' forml complint
to the ER(.
@.3.1.? It is intended tht the dispute resolution re'ime set
out in or implemented in complince with the WESM
Rules nd descri%ed in detil in cluse @.3 should to the
eBtent possi%le<
e 'uided %y the o%ecti$es set out in cluse 1.2.2C% e simple 4uic nd ineBpensi$eC
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c Preser$e or enhnce the reltionship %etween the
prties to the disputeC
d Te ccount of the sills nd nowled'e tht re
re4uired for the rele$nt dispute or issueC
e *%ser$e the rules of lwC
f Plce emphsis on conflict $oidnceC nd
' Encour'e resolution of disputes without forml
le'l representtion or relince on le'l
procedures.
;'0' App$#nmen $/ D#sp+e Res$,+#$n Adm#n#s!a$! (DRA)
(As amended *- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
@.3.2.1 The PEM Board shll ppoint person to ct s the ispute
Resolution Administrator who shll h$e the followin'
responsi%ilities<
Administer nd ensure the effecti$e
implementtion nd opertion of the WESM dispute
resolution processC
% &etermine preliminry if the dispute flls under the
WESM dispute resolution processC
c &rft nd issue stndrd forms nd documents to
help eBpedite the resolution of disputesC
d )cilitte the ccredittion process of meditors
nd r%itrtorsC
e =pdte the list of ccredited meditors nd
r%itrtors pu%lished in the we%siteC
f Refer the cse to the meditor selected %y the
prties in dispute from the ccredited pool of
meditorsC nd
' Refer the cse to the r%itrtion pnel composed of
r%itrtors selected %y the prties in dispute from
the ccredited list of r%itrtors.
(As amended *- DOE DC N$' 998:9:999 daed 9
an+a!- 998 and /+!he! amended *- DOE DC N$' 9:
9:999 daed 3 Fe*!+a!- 9)
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@.3.2.2 The ispute Resolution Administrator shll h$e the
followin' 4ulifictions<
At lest fi$e yers eBperience in lternti$e
dispute resolution prctice nd procedures which do
not in$ol$e liti'tionC
% At lest fi$e yers eBperience in the electricity
power industryC nd
c +ot %een employed %y ny electric power
industry prticipnt or compny or %ody relted
to or ssocited with WESM Participant t lest
one yer %efore ppointment.
The RA 'rees not to %e employed %y nd does not
ccept employment with ny electric power industry
prticipnt or compny or %ody relted to or ssocited
with WESM mem'er within one yer fter the person
ceses to %e ispute Resolution Administrator.
(As amended *- DOE DC N$' 998:9:999 daed
9an+a!- 998 and /+!he! amended *- DOE DC N$'
9:9:999 daed 3 Fe*!+a!- 9)
@.3.2.3 If the ispute Resolution Administrator does not in the
reson%le opinion of the PEM Board continue to meet the
re4uirements of cluse@.3.2.2 the PEM Board my
terminte the ppointment of the ispute Resolution
Administrator nd select replcement ispute
Resolution Administrator who meets the re4uirements set
out in cluse @.3.2.2.
;'0'0 D#sp+e Mana%emen P!$$"$,
(As amended *- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
@.3.3.1 Prior to the referrl of dispute to the RA dispute
mn'ement protocol &#P shll first %e implemented %y
ll prties co$ered %y the WESM dispute resolution
process.
The &#P is system to %e followed %y the disputin'
prties nd shll form prt of the ne'otition st'e of theWESM dispute resolution frmewor. The 'ol of the &#P
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is to llow the prties to ne'otite throu'h desi'nted
&#P contct persons within period of forty fi$e >? dys
from the time forml notice is recei$ed %y the Market
Operator or WESM Mem'er .
)or this purpose the &#P of the Market Operator nd
ech WESM Mem'er shll pro$ide<
the &#P contct person who will %e the first point
of contct for the notifiction of disputesC
% the mode of ser$ice nd receipt of notice of dispute
nd other relted noticesC nd
c the mode of respondin' to re4uests for informtion
from other WESM Mem'er:s in reltion to
dispute.(As amended *- DOE DC N$' 9:9:
999 daed 3 Fe*!+a!- 9)
@.3.3.2 The Market Operator nd ll WESM Mem'ers shll su%mit
copy of its dispute mn'ement protocol to the RA which
shll %e posted %y the RA in the mret we%site.(As
amended *- DOE DC N$' 9:9:999 daed 3
Fe*!+a!- 9)
;'0'2 A""!ed#a#$n and Se,e"#$n $/ Med#a$!s and A!*#!a$!s
(Added as pe! DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
@.3.>.1 The ispute Resolution Administrator shll recommend to
the PEM Board the procedure for the ccredittion of the
meditors nd r%itrtors from certified lternti$e dispute
resolution A&R pro$iders.
The PEM Board shll ppro$e the process of ccredittion
nd shll therefter ccredit the RA:recommended
meditors nd r%itrtors %sed on the sid ccredittion
process.
The RA shll ensure tht n updted list of ccredited
meditors nd r%itrtors shll %e pu%lished in the WESM
we%site.(Added as pe! DOE DC N$' 9:9:999 daed
3 Fe*!+a!- 9)
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@.3.>.2 In cse of filure of the ne'otition process nd upon
preliminry determintion %y the ispute Resolution
Administrator tht the dispute flls under the WESM
dispute resolution process the RA shll pro$ide the
prties with list of ccredited meditors to'ether with
their respecti$e eBpertise.(Added as pe! DOE DC N$' 9:
9:999 daed 3 Fe*!+a!- 9)
@.3.>.3 In the e$ent of filure of the medition process the RA
shll pro$ide the prties with list of ccredited r%itrtors
to'ether with their respecti$e eBpertise.(Added as pe! DOE
DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
;'0'3 D#sp+e Res$,+#$n P!$"ess
@.3.?.1 If dispute rises to which the dispute resolution
procedures under this cluse @.3 pply the prties to the
dispute shll ct in 'ood fith nd use ll reson%le
ende$ors to resol$e the dispute throu'h the procedures
nd lternti$e dispute mechnisms which re $il%le to
the prties throu'h their dispute mana*ement system.
@.3.?.2 If the prties to the dispute re un%le to resol$e the
dispute in ccordnce with cluse @.3.>.1 ny prty who
is in$ol$ed in the dispute cn refer the dispute to the
&ispute Resolution Administrtor in ccordnce with cluse
@.3.>.3.
@.3.?.3 If prty wishes to refer dispute to the &ispute
Resolution Administrtor under cluse @.3.>.2 tht prty
shll notify in writin' the &ispute Resolution Administrtor
nd ll of the other prties to the dispute of which the
prty is wre<
*f the eBistence of disputeC nd
% "ettin' out %rief history of the dispute includin'<
1 The nmes of the prties to the disputeC
2 The 'rounds of the disputeC nd
3 The results of ny pre$ious disputeresolution processes underten pursunt to
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the WESM Rules in respect of the disputeC
nd
> The listin' of ll unresol$ed issues nd
detil description thereof.
@.3.?.> If the ispute Resolution Administrator recei$es notice
of dispute under cluse @.3.>.3 the ispute Resolution
Administrator shll notify ll other rele$nt prties of the
dispute nd shll re4uest from those other prties their
own short written history of the dispute or ny rele$nt
ssocited written comments nd if the ispute Resolution
Administrator re4uests such informtion from prty to
the dispute tht informtion shll %e pro$ided %y tht
prty within ten %usiness dys.
@.3.?.? If mtter hs %een referred to the &ispute Resolution
Administrtor under cluse @.3.>.2 then %efore tin' ny
ction to resol$e the dispute the ispute Resolution
Administrator shll determine whether it is reson%le
tht the dispute is one to which this cluse @.3 pplies nd
shll d$ise the prties in writin' of its decision.
@.3.?.6 If the ispute Resolution Administrator is not reson%ly
stisfied tht the dispute is one to which cluse @.3.1.1
pplies the ispute Resolution Administrator shll issue
written order sttin' tht the clim is not dispute
co$ered under cluse @.3.1.1.(As amended *- DOE DC N$'
9:9:999 daed 3 Fe*!+a!- 9)
@.3.?.@ If the &ispute Resolution Administrtor is reson%ly
stisfied tht the dispute is one to which cluse @.3.1.1
pplies the &ispute Resolution Administrtor shll issue
written direction sttin' preliminrily tht the clim flls
under the WESM dispute resolution process.(As amended
*- DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
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If dispute rises %etween WESM mem'er nd the Market Operator in
respect of finl sttements or the supportin' dt pro$ided with them in
ccordnce with cluse 3.1>.? then
The dispute shll %e referred to the ispute Resolution
Administrator in ccordnce with cluse @.3.>.3 within twel$e
months of the dispute risin'C
% The ispute Resolution Administrator shll notify ll WESM
mem'er s who my %e ffected %y the resolution of the dispute
includin' %ut not limited to WESM mem'er s whose finl
sttement my %e mended s conse4uence of the resolution of
the disputeC nd
c Those pyments shll %e settled without preudice on the dte
specified for pyment in the rele$nt finl sttement
notwithstndin' dispute re'rdin' the mount.
;'0'; D#sp+es A//e"#n% F#na, Saemens
!here n mount stted to %e py%le in finl sttement is the
su%ect of dispute nd the resolution of the dispute ffects the mount
py%le then<
!hen the dispute is resol$ed in ccordnce with this cluse @.3
the #ret *pertor shll issue re$ised finl sttement to
replce ech finl sttement ffected %y the resolution of the
dispute in ccordnce with cluse 3.1>.?C nd
% The mount specified s py%le %y WESM mem'er in re$ised
/inal statement if ny shll %e pid %y the rele$nt WESM
mem'er whether or not tht WESM mem'er is prty to the
dispute on the dte specified in the re$ised /inal statement.
;'0'< Le%a, Rep!esena#$n
Relince on le'l representtion in dispute resolution proceedin's my
%e permitted whene$er the meditor ndDor r%itrtor pnel considers
it pproprite nd desir%le. (As amended *- DOE DC N$' 9:9:
999 daed 3 Fe*!+a!- 9)
;'0'= C$s $/ D#sp+e Res$,+#$n
=nless otherwise 'reed upon %y the prties the reson%le costs of the
proceedin's my %e llocted %y the meditor or r%itrtors forpyment %y one or more prties s prt of the 'reement or wrd s
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my %e pplic%le. The followin' re considered costs of the
proceedin's<
Professionl fees of the meditor nd r%itrtorsC
% -e'l eBpensesC nd
c Administrti$e costs. (As amended *- DOE DC N$' 9:9:999
daed 3 Fe*!+a!- 9)
;'0'9E//e" $/ Res$,+#$n
@.3.10.1 A resolution of the dispute resolution panel is %indin' on
the prties to the dispute includin' without limittion
ny pro$ision of the resolution reltin' to the settlement
of pyment %y ny of the prties nd ny pro$ision s to
the performnce of ctions %y ny of the prties.
@.3.10.2 A re4uirement tht prty to the dispute settle pyment
under<
An 'reement reched %etween the prties to
dispute under cluse @.3.>.1C or
% A resolution of the dispute resolution pnel is n
o%li'tion under the WESM Rules to settle
pyments.
@.3.10.3 All persons referred to in cluses @.3.1.1 to e
ffected %y n 'reement reched durin' the medition
st'e or n wrd of the r%itrtion pnel shll comply
with the 'reement or wrd to the eBtent such
'reement or wrd pplies to them notwithstndin' tht
they were not prties to the dispute.
The RA shll prior to the medition or r%itrtion
process notify in writin' nd throu'h postin' in the
mret we%site ll persons who my %e ffected s
conse4uence of the resolution of the dispute. (As
amended *- DOE DC N$' 9:9:999 daed 3
Fe*!+a!- 9)
@.3.10.> If prty to dispute is not stisfied with the resolution of
the dispute resolution panel! the prty my file forml
complint to the ERC.;'0'Re"$!d#n% and P+*,#"a#$n
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@.3.11.1 !hene$er dispute is resol$ed the meditor or the
r%itrtion tri%unl s my %e pplic%le shll send
written detils of the resolution of the dispute to the
ispute Resolution Administrator the PEM Board the
&*E the ERC nd the Market Operator s soon s
prctic%le.(As amended *- DOE DC N$' 9:9:999
daed 3 Fe*!+a!- 9)
@.3.11.2 "u%ect to cluse ?.3 the detils nd results of ech
dispute which the meditor ndDor r%itrtion pnel
resol$es s the cse my %e eBcept confidentil
informtion shll %e pu'lised nd mde $il%le to
WESM Mem'er s s soon s prctic%le.(As amended *-
DOE DC N$' 9:9:999 daed 3 Fe*!+a!- 9)
@.3.11.3 (lims for confidentility of informtion disclosed in the
dispute resolution process shll %e delt with in
ccordnce with the pro$isions reltin' to use of
informtion in cluse ?.3.
;'0'L#m#a#$n $/ L#a*#,#-
The ispute Resolution Administrator is not li%le for ny loss or dm'e
suffered or incurred %y Participant or ny other person s
conse4uence of ny ct or omission of those persons unless the ispute
Resolution Administrator cted with mlice mnifest imprtility %d
fith 'ross incompetence or 'ross ne'li'ence.(As amended *- DOE DC
N$' 9:9:999 daed 3 Fe*!+a!- 9)
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CHAPTER <
RULE CHAN6E
<' SCOPE OF CHAPTER <
=pon the ctul commercil opertion of the spot market chn'es
mendments nd modifictions of the WESM Rules shll %e underten in
ccordnce with the pro$isions of this chpter.
This chpter sets out<
The composition nd mnner of ppointment of the Rule Can*eCommitteeC
% The procedure for effectin' chn'e to the WESM RulesC nd
c The procedure for ppro$l of chn'e to the WESM Rules.
<' RULE CHAN6E COMMITTEE
<'' Esa*,#shmen $/ R+,e Chan%e C$mm#ee
The PEM Board shll est%lish Rule Can*e Committee in consulttion
with industry prticipnts.
<'' C$mp$s##$n $/ R+,e Chan%e C$mm#ee
.2.2.1 The Rule Can*e Committee shll %e comprised in
mnner tht is consistent with the composition of the PEM
Board eBcept tht the persons representin' ech of the
sectors nd other 'roups on the Rule Can*e Committee
shll not %e the sme persons s those who re irectors
on the PEM Board .
.2.2.2 The principles pplic%le to the composition nd opertion
of the PEM Board s set out in cluse 1.>.2 pply lso to
the composition of the Rule Can*e Committee. (As
amended *- DOE DC N$' 993::99 daed
N$5em*e! 993)
<''0 Mem*e!sh#p !e>+#!emens : PEM B$a!d
Ech mem%er of the Rule Can*e Committee shll<
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e ppointed %y the PEM Board in consulttion with industry
prticipntsC nd
% )or the sectorl mem%er or other 'roups not %e mem%er of the
PEM Board .
(As amended *- DOE DC N$' 998::990 daed 9= N$5em*e!
998)
<''2 Te!m#na#$n
The PEM Board my terminte the ppointment of ny person ppointed
to the Rule Can*e Committee t ny time if<
The person %ecomes insol$ent or under dministrtionC
% The person %ecomes of unsound mind or person whose person or
estte is li%le to %e delt with in ny wy under lw reltin' to
mentl helthC
c The person ceses to represent the sectorl 'roup or other
'roups or the compny to which he hs %een ppointedC or
(As amended *- DOE DC N$' 998::990 daed 9= N$5em*e!
998)
d The person fils to dischr'e the o%li'tions of their office.
<''3 App$#nmen e!m#na#$n
If the PEM Board decides to terminte person;s ppointment in
ccordnce with cluse .2.> the PEM Board shll ppoint nother
representti$e from the sme mem%ership cte'ory to fill tht person;s
plce on the Rule Can*e Committee within 20 %usiness dys.
<''8 Res#%na#$n
A person my resi'n from the Rule Can*e Committee %y 'i$in' notice in
writin' to the PEM Board .
<''; C$nd+" $/ mee#n%s
The Rule Can*e Committee shll meet nd re'ulte its meetin's nd
conduct its %usiness in mnner which does not conflict with the WESM
Rules.
<''< Ad5#"e and ass#san"e
The Rule Can*e Committee my o%tin such d$ice or other ssistnce
s it thins pproprite includin' without limittion d$ice or
ssistnce from persons with eBperience rele$nt to ny chn'e to the
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WESM Rules which the Rule Can*e Committee is considerin' nd from
WESM mem'er s who re liely to %e ffected %y ny chn'e.
<''= R+,es Chan%e C,ass#/#"a#$n and P!$"ed+!es
(Added as pe! DOE DC N$' 993::99 daed N$5em*e! 993)
"u%ect to cluse .6.>.2 the Rule Can*e Committee will
recommend for ppro$l of the PEM Board system of
clssifiction of chn'es to the WESM Rules.
% "u%ect to ppro$l %y the PEM Board the Rule Can*e
Committee will de$elop nd pu'lis detiled 'uidelines nd
procedures to %e employed in the considertion ppro$l
pu%liction nd effecti$ity of ny proposed chn'e to the WESM
Rules. These 'uidelines nd procedures will s fr s prctic%le
%e consistent with the pro$isions of this chpter pro$ided
howe$er tht the (ommittee my est%lish procedures time
periods nd mnner of pu%liction nd effecti$ity other thn s
stted in this chpter dependin' on the clssifiction of the
proposed chn'e.
<'0 REFERRAL OF MATTERS TO THE RULE CHAN6E COMMITTEE<'0' R+,e "han%e p!$p$sa,s
The Market Operator the 7o$ernment or ny WESM mem'er nd other
interested prties my su%mit proposls for chn'es to the WESM Rules
to the PEM Board .
<'0' F$!m $/ s+*m#ss#$n
Proposls for chn'e or chn'es to the WESM Rules shll<
e in writin' nd ddressed to the PEM Board C
% Include the nme nd ddress of the pplicntC
c &emonstrte tht the chn'e to the WESM Rules is<
1 (onsistent with the WESM o%ecti$esC
2 )esi%leC
3 +ot unreson%ly costly to implementC nd
> A more pproprite or %etter mens of chie$in' the
criteri set out in cluses .3.2 c 1 to c 3 where the
effect of the chn'e to the WESM Rules will %e to replce
n eBistin' pro$ision of the WESM RulesC
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d Include %rief sttement of the resons why chn'e to the
WESM Rules is necessry or desir%leC nd
e (ontin sufficient informtion to permit proper considertion
%y the Rule Can*e Committee of those resons includin' the
pu%lic %enefit if ny of min' the chn'e to the WESM Rules.
<'0'0 PEM B$a!d $*,#%a#$ns
The PEM Board shll<
/eep re'ister of ll proposls for chn'e in the WESM Rules
su%mitted to itC nd
% 7i$e due course to the proposl within ? %usiness dys from
receipt thereof.
<'2 CONSIDERATION OF PROPOSED RULES CHAN6E BY THE RULES CHAN6E
COMMITTEE
<'2' Assessmen $/ p!$p$sed R+,e "han%e
!ithin 10 'usiness days from the referrl from the PEM Board the Rules
Can*e Committee shll ssess whether the proposed chn'e to the
WESM Rules is<
(onsistent with the WESM o%ecti$esC
% )esi%leC
c +ot unreson%ly costly to implementC nd
d A more pproprite or %etter mens of chie$in' the criteri set
out in cluses .>.1 to c where the effect of the chn'e to
the WESM Rules will %e to replce n eBistin' rule.
<'2' D#s"!e#$ns 1hen assessmen p!$p$sed R+,e "han%e
In considerin' whether proposed rule chn'e stisfies the criteri
which re set out in cluse .>.1 the Rules Can*e Committee my<
Te into ccount ny informtion nd documents which the
Rules Can*e Committee reson%ly considers to %e rele$nt to
its considertion of the proposed chn'e to the WESM RulesC
% (onsult with such persons s the Rules Can*e Committee
reson%ly considers will %e liely to %e ffected %y the proposed
chn'e to the WESM Rules
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c "ee such informtion nd $iews from ny person in reltion to
the proposed chn'e to the WESM Rules s my %e prctic%le
under the circumstncesC nd
d Refer the proposed chn'e to the WESM Rules to worin'
'roup comprisin' of persons h$in' such eBpertise s the
Rules Can*e Committee in its %solute discretion considers to
%e reson%le in ll the circumstnces for the purpose of
dele'tin' to tht worin' 'roup ny o%li'tion or ts of the
Rules Can*e Committee set out in cluses .>.2.>.> nd .>.6
other thn this cluse .>.2 d.
<'2'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a
If the Rules Can*e Committee concludes tht proposed chn'e to the
WESM Rules does not stisfy the criteri set out in cluse .>.1 the
Rules Can*e Committee shll notify the proponent nd the PEM Board
within 10 %usiness dys fter receipt of proposl of its non:doption of
the proposl includin' the reson for its decision.
<'2'2 N$#/#"a#$n /$,,$1#n% sa#s/-#n% "!#e!#a
If the Rules Can*e Committee concludes tht proposed chn'e to the
WESM Rules stisfies the criteri which re set out in cluse .>.1 the
Rules Can*e Committee shll<
+otify the PEM Board ll WESM mem'er s nd ll other interested
prties of the proposed chn'e to the WESM RulesC nd
% In$ite such prties to me written su%missions re'rdin' the
proposed chn'e to the WESM Rules within the neBt 30 'usiness
days fter receipt of proposed rule chn'e.
<'2'3 S+*m#ss#$ns !e%a!d#n% p!$p$sed R+,e "han%e
To %e $lidly considered written su%mission mde in response to
proposed chn'e to the WESM Rules in$ited under cluse .>.> % must
%e recei$ed %y the Rules Can*e Committee no lter thn 30 'usiness
days fter the notice referred to in cluse .>.> is 'i$en.
<'2'8 C$ns#de!a#$n $/ s+*m#ss#$ns
The Rules Can*e Committee shll consider ll $lid su%missions which it
recei$es within 60 'usiness days from the dte the notifiction is 'i$enunder cluse .>.>.
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c The OE nd the ERC!
within 10 'usiness days of rechin' tht conclusion nd
shll pro$ide resons for its decision.
.?.3.2 If the PEM Board determines tht the processes nd
procedures set out in cluse .> h$e not %een duly
followed the PEM Board shll<
Refer the proposed chn'e to the !E"# Rules %c
to the Rules (hn'e (ommittee so tht the
procedurl error cn %e rectified within the erliest
possi%le time in ccordnce with cluse .>C nd
% Te such steps s it considers reson%ly necessry
nd pproprite in ll the circumstnces to ensure
tht the Rules (hn'e (ommittee dheres to the
processes nd procedures set out in cluse .> in
the future.
<'3'2 App!$5#n% and s+*m##n% p!$p$sed R+,e "han%e /$! app!$5a,
(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993)
If the PEM Board concludes tht the proposed chn'e to the WESM Rules
stisfies the criteri which re set out in cluse .>.1 nd tht the
processes nd procedures set out in cluse .> h$e %een duly followed
the PEM Board
shll su%mit the proposed chn'e to the WESM Rules to the &*E
for ppro$l if the proposed chn'e re4uires ppro$l %y the OE
under the clssifiction system ppro$ed pursunt to cluse
.6.>.2C or
% shll cuse pu%liction of the ppro$ed rule chn'e if the
proposed rule chn'e re4uires ppro$l of the PEM Board only.
The ppro$ed rule chn'e will %ecome effecti$e fter its
pu%liction on such dte nd for such period s the PEM Board
determines.
<'8 APPRO7AL OF PROPOSED RULE CHAN6ES BY THE DOE
(As amended *- DOE DC N$' 993::99 daed N$5em*e! 993)
<'8' DOE assessmen $/ p!$p$sed R+,e "han%e
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If the PEM Board su%mits proposed chn'e to the WESM Rules to the
OE! for ppro$l in ccordnce with cluse .>.> the OE shll ssess
whether the proposed chn'e to the WESM Rules stisfies the criteri
which re set out in cluse .>.1.
<'8' DOE d#s"!e#$ns 1hen assess#n% p!$p$sed R+,e "han%e
In considerin' whether proposed chn'e to the WESM Rules stisfies
the criteri which re set out in cluse .>.1 the OE my<
Te into ccount ny informtion nd documents which
the &*E reson%ly considers to %e rele$nt to its considertion
of the proposed chn'e to the WESM RulesC
% (onsult with such persons s the OE reson%ly considers will
%e liely to %e ffected %y the proposed chn'e to the WESM
RulesC nd
c "ee such informtion nd $iews from ny person in reltion to
the proposed chn'e to the WESM Rules s my %e prctic%le in
the circumstnces.
<'8'0 N$#/#"a#$n /$,,$1#n% /a#,+!e $ sa#s/- "!#e!#a
If the OE concludes tht proposed chn'e to the WESM Rules does not
stisfy the criteri which re set out in cluse .>.1 the OE shll
notify<
The PEM Board C
% The person who proposed the chn'e to the WESM RulesC nd
% Any prty who mde written su%missions to the Rules Can*e
Committee under cluse .>.>
within 10 'usiness days of rechin' tht conclusion nd shll pro$ide
resons for its decision.
<'8'2 App!$5a, $/ p!$p$sed R+,e "han%e
.6.>.1 If the &*E concludes tht proposed chn'e to the WESM
Rules is consistent with the Act nd the pu%lic interest nd
stisfies the criteri which re set out in cluse .>.1 it
shll ppro$e the mendment nd cuse its pu%liction.
The chn'e to the WESM Rules ppro$ed %y the &*E will
te effect within fifteen dys from its pu%liction or on
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such lter dte s the &*E determines. (As amended *-
DOE DC N$' 993::99 daed N$5em*e! 993)
.6.>.2 =pon recommendtion of the Rules (hn'e (ommittee
the PE# ord shll rtify the clssifiction system of rule
chn'e proposls de$eloped %y the (ommittee pursunt to
cluse .2.9 tht will delinete proposls tht cn %e
implemented upon PE# ords ppro$l nd proposls
tht will re4uire &*Es ppro$l prior to implementtion.
(As amended *- DOE DC N$' 993::99 daed
N$5em*e! 993 and /+!he! amended *- DOE DC N$'
99:90:9992 daed Ma!"h 99)
All !E"# Rules chn'es implemented prior to &*Es
ppro$l shll %e processed nd su%mitted to the &*E for
ppro$lC otherwise the effecti$ity of such !E"# Rules
chn'es shll %e no more thn siB 6 months. (Added as
pe! DOE DC N$' 99:90:9992 daed Ma!"h 99)
E$ery yer such clssifictions shll %e re$iewed nd
mended if necessry.(Added as pe! DOE DC N$' 99:
90:9992 daed Ma!"h 99)
This clssifiction shll %e ppro$ed %y the &*E.
<'8'3 Rep$! *- he R+,es Chan%e C$mm#ee
The Rules Can*e Committee nd the PEM Board shll de$elop nd me
$il%le to WESM mem'er s periodic report which sets out<
All WESM Rule chn'e proposls which h$e %een mde in the
pre$ious siB:month periodC
% The pro'ress of those WESM Rule chn'e proposls in ccordnce
with the procedures prescri%ed in this chpter C
c The reson for ny delys in reltion to the pro'ress of those
WESM Rule chn'e proposls nd ny ction the Rules Can*e
Committee the PEM Board or the OE hs ten to o$ercome
those delysC nd
d Any other mtter which the Rules Can*e Committee the PEM
Board or the OE reson%ly considers to %e rele$nt to the
pro'ress of WESM Rule chn'e proposls includin' %ut not
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limited to ny policies de$eloped %y the Rules Can*e
Committee the PEM Board or the OE in reltion to<
1 The wy in which it intends to del with ny procedure
specified in this chpter C nd
2 The fcts mtters or circumstnces which the Rule
Can*e Committee the PEM Board or the OE my te
into ccount in min' decision nd otherwise
dischr'in' its functions nd o%li'tions under this chpter
Pro$ided tht nothin' in this cluse .6.? is to %e ten
to limit the eBercise %y the Rules Can*e Committee the
PEM Board or the OE s the cse my %e of its
discretion under this chpter .
<'; RULES CHAN6E COMMITTEE INDEMNITY
The Rules Can*e Committee nd its mem%ers nd ny worin' 'roup to whom
ny ts or o%li'tion is dele'ted under cluse .> re not to %e personlly
li%le in ny wy for ny chn'e which is mde to the WESM Rules.
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CHAPTER =
INTERPRETATION
=' 6ENERAL
In the WESM Rules unless the conteBt otherwise re4uires<
,edin's re for con$enience only nd do not ffect the interprettion
of the WESM RulesC
% !ords importin' the sin'ulr include the plurl nd $ice $ersC
c !ords importin' 'ender include ny 'enderCd !here itlici5ed word or phrse hs the definition 'i$en to tht word
or phrse in chpter 10C
e *ther prts of speech nd 'rmmticl forms of word or phrse
defined in the WESM Rules h$e correspondin' menin'C
f An eBpression importin' nturl person includes ny le'l entity
compny prtnership oint $enture ssocition corportion or other
%ody corporte nd ny 'o$ernment uthorityC
' A reference to ny thin' includin' %ut not limited to ny ri'ht
includes prt of tht thin'C
h A reference to cluse pr'rph prt nneBure eBhi%it or schedule
is reference to cluse nd pr'rph nd prt of nd n nneBure
eBhi%it nd schedule to the WESM Rules nd reference to the WESM
Rules includes ny nneBure eBhi%it nd scheduleC
i A reference to sttute re'ultion proclmtion order in council
ordinnce or %y:lw includes ll sttutes re'ultions proclmtions
orders in council ordinnces or %y:lws mendin' consolidtin' or
replcin' it nd reference to sttute includes ll re'ultions
proclmtions orders in council ordinnces nd %y:lws issued under
tht sttuteC
A reference to the WESM Rules or to document or pro$ision of
document includes n mendment or supplement to or replcement or
no$tion of the WESM Rules or tht document or tht pro$ision of tht
documentC
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A reference to person includes tht person;s eBecutors dministrtors
successors su%stitutes includin' without limittion persons tin' %y
no$tion nd permitted ssi'neesC
I A reference to %ody other thn WESM mem'er or the Market
Operator includin' without limittion n institute ssocition or
uthority whether sttutory or not<
1 !hich ceses to eBistC or
2 !hose powers or functions re trnsferred to nother %odyis
reference to the %ody which replces it or which su%stntilly
succeeds to its powers or functionsC nd
m A reference in the conteBt of ny pro$ision of the WESM Rules to
8representti$e8 of ny person is reference to ny director officer or
employee of tht person or ny 'ent consultnt or contrctor
ppointed or en''ed %y tht person for purposes connected with the
su%ect mtter of the rele$nt pro$ision of the WESM Rules.
=' TIME AND DATES
9.2.1.1 =nless the conteBt otherwise re4uires reference in the WESM
Rules< To clendr dy such s 1 Qnury or dy of the wee
such s "undy is to the dy which %e'ins t 00<00 hours
on tht dyC
% To wee is to the period from 00<00 hours on dy until
00<00 hours on the se$enth dy followin'C
c To month or num%er of months or clendr month is
to the period from 00<00 hours on dy in one month until
00<00 hours on the sme dy of the month which follows
or follows %y the rele$nt num%er of months or if there
is no such dy in tht month 00<00 hours on the first dy
of the neBt followin' monthC
d To yer is to the period from 00<00 hours on dy in one
yer until 00<00 hours on the sme dy or where the dy
in the first yer ws 29 )e%rury on 1 #rch in the
followin' yer nd reference to clendr yer such s199@ is to %e construed ccordin'lyC nd
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e To times of the dy re to Philippines stndrd time.
9.2.1.2 =nless the conteBt otherwise re4uires period of time<
!hich dtes from 'i$en dy or the dy of n ct or e$ent
is to %e clculted eBclusi$e of tht dyC or
% !hich commences on 'i$en dy or the dy of n ct or
e$ent is to %e clculted inclusi$e of tht dy.
9.2.1.3 !here under ny pro$ision of the WESM Rules person is re4uired
to pro$ide ny informtion %y certin dte or time the rele$nt
pro$ision is to %e ten to include re4uirement tht tht the
rele$nt informtion shll %e 'i$en s soon s possi%le nd no
lter thn the dte or time 'i$en.
='0 ASSI6NMENT
=nless otherwise eBpressly permitted %y the WESM Rules WESM mem'er shll
not ssi'n or trnsfer nd shll not purport to ssi'n or trnsfer ny of its ri'hts
or o%li'tions under the WESM Rules.
='2 WAI7ER
A person does not wi$e its ri'hts powers nd discretions under the WESMRules %y<
)ilin' to eBercise its ri'htsC
% *nly eBercisin' prt of its ri'htsC or
c &elyin' the eBercise of its ri'hts.
='3 PAYMENT
='3' Meh$d $/ pa-men
=nless otherwise pro$ided in the WESM Rules ny pyment to %e mde
under the WESM Rules shll %e mde either %y the E)T fcility or in csh
or %y drft or chec drwn %y %n s defined in le'isltion
pplic%le to the conduct of %nin' cti$ities in the Philippines.
='3' Ine!es !aes
=nless the conteBt otherwise re4uires reference in the WESM Rules to
n interest rte pu%lished in respect of specified dy shll if tht
interest rte is not pu'lised! uthori5ed or otherwise $il%le in
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respect of tht dy %e ten to %e the rele$nt interest rte pu'lised
immeditely prior to tht dyC nd if tht interest rte is suspended
modified discontinued or its method of clcultion su%stntilly lters
or if the rele$nt pu%liction ceses to pu%lish tht interest rte for
more thn se$en consecuti$e dys the Market Operator shll pro$ide
su%stitute rte of interest tht in the Market Operator ;s reson%le
opinion is the nerest e4ui$lent to the interest rte nd tht su%stitute
rte of interest shll %e ten to %e the pplic%le interest rte.
='8 NOTICES
='8' P!$pe!,- %#5#n% n$#"es
A notice is properly 'i$en under the WESM Rules to person if<
It is personlly ser$edC
% A letter continin' the notice is sent %y re'istered mil to the
person t n ddress if ny supplied %y the person to the sender
for ser$ice of notices or where the person is WESM mem'er n
ddress shown for tht person in the re'ister of WESM mem'er s
mintined %y the Market Operator or where the ddressee is
the Market Operator the re'istered office of the MarketOperator
c It is sent to the person %y fcsimile or electronic mil to
num%er or reference which corresponds with the ddress referred
to in cluse 9.6.1% or which is supplied %y the person to the
Market Operator for ser$ice of notices nd if sent %y electronic
mil the person sendin' the notice lso sends copy of the
notice %y letter or fcsimile to the person on the sme dyC or
d The person ctully recei$es the notice %y ny other mens.
='8' N$#"es !eaed as *e#n% %#5en
A notice is treted s %ein' 'i$en to person %y the sender<
!here sent %y re'istered mil to n ddress in the centrl
%usiness district of re'ion in the Philippines on the second
'usiness day fter the dy on which it is postedC
% !here sent %y post in ccordnce with cluse 9.6.1% to ny
other ddress on the third 'usiness day fter the dy on which itis postedC
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c !here sent %y fcsimile in ccordnce with cluse 9.6.1c nd
complete nd correct trnsmission report is recei$ed<
1 !here the notice is of the type in reltion to which the
ddressee is o%li'ed under the WESM Rules to monitor the
receipt %y fcsimile outside of s well s durin' %usiness
hours on the dy of trnsmissionC nd
2 In ll other cses on the dy of trnsmission if 'usiness
day or if the trnsmission is on dy which is not
'usiness day or is fter >.00 pm ddressee;s time t 9.00
m on the followin' 'usiness day
d !here sent %y electronic mil in ccordnce with cluse 9.6.1
c<
1 !here the notice is of type in reltion to which the
ddressee is o%li'ed under the WESM Rules to monitor
receipt %y electronic mil outside of s well s durin'
%usiness hours on the dy when the notice is recorded
s h$in' %een first recei$ed t the electronic mil
destintionC nd
2 In ll other cses on the dy when the notice is recorded
s h$in' %een first recei$ed t the electronic mil
destintion if
Business day or if tht time is fter >.00 pm ddressee;s
time or the dy is not 'usiness day! t 9.00 m on the
followin' 'usiness day or
e In ny other cse when the person ctully recei$es the notice.
='8'0 F$!m $/ n$#"e
Any notice to or %y person under the WESM Rules<
"hll %e in le'i%le writin' nd in En'lishC nd
% !here the sender is compny shll %e si'ned %y responsi%le
employee or officer thereof or under the corporte or officil sel
of the sender eBcept where the notice is sent %y electronic
mil.
='8'2 Ca,"+,a#n% a spe"#/#ed pe!#$d /$! n$#"es
!here specified period includin' without limittion prticulrnum%er of dys is pro$ided for purposes of clcultin' the num%er of
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dys indicted in the period the first dy shll %e eBcluded while the
lst dy is included in sid computtion.
='8'3 6ene!a,
In this cluse 9.6 reference to<
An ddressee includes reference to n ddressee;s officers
'ents or employees or ny person reson%ly %elie$ed %y the
sender to %e n officer 'ent or employee of the ddresseeC nd
% A notice includes ny re4uest demnd consent or ppro$l or
other communiction to or %y person under the WESM Rules.
='; RETENTION OF RECORDS AND DOCUMENTS
=nless otherwise specified in the WESM Rules ll records nd documents
prepred for or in connection with the WESM Rules shll %e retined for
period of t lest se$en yers.
='< SE7ERABILITY
Ech prt or ll of pro$ision of the WESM Rules<
!ill %e construed so s to %e $lid nd enforce%le to the
'retest eBtent possi%leC nd
% #y %e so construed or deleted if necessry re'rdless of the
effect which tht my h$e on the pro$ision in 4uestion or ny
other pro$ision or the WESM Rules s whole.
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CHAPTER 9
TRANSITORY PRO7ISIONS
9' PURPOSE AND SCOPE
9''P+!p$se
To pro$ide 'uidelines for the trnsition of the electric power industry
from the eBistin' structure to the new structure s specified in the ActC
9''S"$pe $/ App,#"a#$n
This (hpter pplies to the followin'<
Market Operator % System operator
c $eneration Companies
d Ancillary Services Provider!
e istri'ution tilities
f Suppliers
' Meterin* Services Providers
h ul =sersDEnd:usersC nd
i *ther similr entities uthori5ed %y the ERC to %ecome mem%ers
of the WESM.
9' MARKET TRANSITION
9''Esa*,#shmen $/ he Wh$,esa,e E,e"!#"#- Sp$ ma!.e
10.2.1.1 !ithin one 1 yer from the effecti$ity of the Act the
&*E shll est%lish WESM composed of the WESM
participants. The mret shll pro$ide the mechnism for
identifyin' nd settin' the price of ctul $ritions from
the 4untities trnscted under contrcts %etween sellers
nd purchsers of electricity.
10.2.1.2 The OE shll constitute the Autonomous $roup Market
Operator("A$MO; initilly under the dministrti$e
super$ision of the %RA&SCO.
9''The Ma!.e Ope!a$!
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10.2.2.1 The !E"# shll %e primrily operted %y #ret
*pertor su%ect to the o$erll super$ision of the PE#
ord nd in ccordnce with the !E"# Rules.
10.2.2.2 The A7#* shll underte the preprtory wor nd
initil opertion of the !E"# for period of twel$e
months from the spot mret commencement dte nd
for the $oidnce of dou%t durin' tht initil twel$e:
month period ll references in the WESM Rules to 8Market
Operator 8 shll %e construed to men "A$MO;.
10.2.2.3 +ot lter thn one 1 yer fter the implementtion of
the WESM n Independent Market Operator("0MO;) shll
%e formed nd the functions ssets nd li%ilities of the
A$MO shll %e trnsferred to such entity with the oint
endorsement of the OE nd the electric power industry
prticipnts. Therefter the dministrti$e super$ision of
the %RA&SCO o$er such entity shll cese.
9''0The 6$5e!n#n% B$a!d
10.2.3.1 The !E"# shll %e 'o$erned nd its powers nd functions
eBercised %y 'o$ernin' %ody with e4uit%le
representtion from electric power industry prticipnts.
The representti$es of the A7#* 'o$ernin' %ody shll %e
selected in ccordnce with the !E"# Rules. The &*E
"ecretry shll chir the A7#* 'o$ernin' %ord.
10.2.3.2 The A7#* 'o$ernin' %ord shll 'o$ern the opertion of
the A7#* until the formtion or selection of n 0MO. =ntil
such time ll references in the WESM Rules to 8PEM Board ;
shll %e construed to men 8 A$MO 'o$ernin' %ordO.
9''2Mem*e!sh#p $ he WESM
10.2.>.1 "u%ect to complince with the mem%ership criteri ll
7enertin' (ompnies &istri%ution =tilities "uppliers
ul consumersDEnd:users nd *ther "imilr Entities
uthori5ed %y the ER( shll %e eli'i%le to %ecome
mem%ers of the !E"#. The ER( my uthori5e other
similr entities to %ecome eli'i%le s mem%ers eitherdirectly or indirectly of the !E"#.
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10.2.>.2 A $eneration Company shll comply with the mem%ership
criteri s prescri%ed under the WESM Rules s set forth in
Rule 9 of the IRR of the Act on WESM.
10.2.>.3 Pursunt to "ection 9 e of the Act $eneration
Company with fcilities connected to 7rid shll me
informtion $il%le to the Market Operator to en%le
the Market Operator to implement the pproprite
dispatc schedulin' nd shll comply with the sid
schedulin' in ccordnce with the WESM Rules. A
$eneration Company shll liewise me informtion
$il%le to the System operator to fcilitte centrl
disptch %y the System operator .
10.2.>.> )or the first fi$e ? yers from the est%lishment of the
WESM! istri'ution tilities shll source t lest ten
percent 10H of its totl demnd from the spot market.
)or this purpose ech istri'ution tility my su%mit
demand 'id correspondin' to lod which hs %een
certified s disptch%le in ccordnce with the $rid
Code nd istri'ution Code.
10.2.>.? &EA my in eBchn'e for de4ute security nd
'urntee fee ct s 'urntor for purchses of
electricity in the WESM %y ny Electric Cooperative or
smll istri'ution tility to support their credit stndin'
consistent with the pro$ision hereof.
9''3 P!#"e Dee!m#na#$n Meh$d$,$%-
The price determination metodolo*y contined in the WESM Rules shll
%e su%ect to the ppro$l of ERC.
9'0 PRO7ISIONS FOR THE INTERIM WESM
The followin' pro$isions shll %e pplic%le durin' the opertion of the interim
WESM.
9'0' Sp$ ma!.e T!ad#n%
10.3.1.1 Initilly only ener*y shll %e trded upon commencement
of the interim WESM.
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10.3.1.2 The composition of the market net#ork model my %e
limited in scope durin' the opertion of the interim WESM.
9'0'An"#,,a!- Se!5#"es
10.3.2.1 The System operator shll rrn'e for the pro$ision of
de4ute ncillry ser$ices for ech re'ion either<
y competiti$e tenderin' process dministered %y
the Market Operator where%y num%er of
Ancillary Services Pro$iders cn pro$ide prticulr
cte'ory of ancillary services or
% y ne'otitin' contrcts directly with n Ancillary
Services Provider who is irect WESM mem'er
where only one Ancillary Services Provider cn
pro$ide the re4uired ancillary servicesC or
c !here pplic%le %y competiti$e spot
market trdin' in ccordnce with cluse 3.3.>.
10.3.2.2 The reserve+tradin* amount shll %e %sed on the cost of
reserves contrcted for %y the System operator .
10.3.2.3 !hen pplic%le nd reson%ly fesi%le the Market
Operator shll est%lish spot market mechnism for
competiti$e spot market trdin' in the purchse of certin
reserve cate*ories. The OE shll declre the
commencement of the spot market ancillary services.
9'0'0Ma!.e D#spa"h Op#m#a#$n M$de,
The interim market dispatc model is of lesser scope thn the finl
market optimi,ation model nd determines dispatc tr'ets for the end
of tradin* interval reserve lloctions for the tradin* interval
ssocited ener*y prices t ll tradin* nodes in the po#er system nd
reserve prices for ll reserve re*ions.
9'0'2 Mee!#n%
10.3.>.1 The instlltion nd mintennce of meterin* installations
shll initilly %e crried out %y the %RA&SCO.
10.3.>.2 A %radin* Participant who is direct WESM mem'er shll<
Arrn'e with the %RA&SCO for the pro$ision
instlltion nd mintennce of ech meterin*
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installation for which tht %radin* Participant;s
finncilly responsi%leC
% Enter into n 'reement with the %RA&SCO for the
pro$ision instlltion nd mintennce of the
rele$nt meterin* installation %y the %RA&SCO nd
c Pro$ide the Market Operator with the rele$nt
detils of the meterin' instlltion in ccordnce
with AppendiB 2 within ten 10 'usiness days of
enterin' into n 'reement with the %RA&SCO
under cluse >.3.> %.
10.3.>.3#eterin' Instlltion (omponents
The followin' re4uirements my %e relBed durin' the
opertion of the interim !E"#<
)cilities to en%le meterin* data to %e trnsmitted
from the meterin* installation to the meterin*
data'ase nd %e cp%le of communiction with
the meterin* data'aseC nd
% Ade4ute communiction fcility tht will en%le
the Market Operator to o%tin remote ccess to the
meterin* data from the meterin* data'ase.
9'2 ACTIONS TO BE TAKEN PRIOR TO SPOT MARKET COMMENCEMENT DATE
9'2' S#%n#/#"an 7a!#a#$ns
The Market Operator shll in consulttion with WESM Participants
de$elop 'uidelines s to wht constitutes si'nificnt $rition in nd
%etween tradin* intervals su%ect to the ppro$l of the PEM Board .
9'2'Ma!.e Ope!a$! Pe!/$!man"e
10.>.2.1. Prior to the spot market commencement date! the
Market Operator shll de$elop performnce indictors
which pro$ide n indiction of nd monitor the Market
Operator ;s performnce under the WESM Rules in respect
of<
The Market Operator ;s responsi%ilities under the
WESM RulesC nd
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% The chie$ement of the WESM o%ecti$es s defined
in cluse 1.2.?.
10.>.2.2. The performnce indictors de$eloped under cluse
10.>.2.1 shll %e ppro$ed %y the PEM Board .
9'2'0F$!m+,a#$n $/ PEM B$a!d B-:,a1
Prior to the spot market commencement date nd if pplic%le su%ect
lwys to ny rele$nt lw or re'ultion of the Philippines in reltion to
processes nd procedures of corporte entities or the formultion of
corporte constitutions the OE shll formulte the %y:lw of the PEM
Board which shll set out mon' others the followin'<
(onduct of meetin's includin' %ut not limited to the fre4uency
of meetin's the 4uorum re4uired to conduct meetin' the
mnner in which meetin' my %e conducted nd the loction of
meetin'sC
% Appointments on the PEM Board C
c Tenure of irectors ppointed to the PEM Board C
d Allownce if ny to %e mde to irectors ppointed to the PEM
Board C
e &isclosure of informtion %y nd %etween irectors ppointed to
the PEM Board C
f &etiled procedures for $otin'C
' )ormultion of %ud'et for the PEM Board C
h Appointment of (hief EBecuti$e *fficer or 7enerl #n'er to
conduct the dily %usiness of the PEM Board if necessry nd
ppropriteC
i Procedure to %e followed %y the PEM Board for mendin' its own
%y:lwC nd
Any other mtter considered rele$nt %y the OE.
9'2'2Dee!m#na#$n $/ Ma!.e Ne1$!. M$de,
10.>.>.1. Prior to the spot market commencement dte the Market
Operator in consulttion with WESM Participants nd the
System operator shll<
In ccordnce with cluses 3.2.1.2 nd 3.2.1.3
recommend the composition of the market net#orkmodelC
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% "ee ppro$l of the market net#ork model from
the PEM Board C nd Pu'lis detils of the market
net#ork model once ppro$ed.
9'2'3Dee!m#na#$n $/ Ma!.e T!ad#n% N$des
10.>.?.1. Prior to the spot market commencement d te! the
Market Operator shll in ccordnce with cluses
3.2.2.1 3.2.2.2 nd 3.2.2.3 determine the identity of
ech market tradin* node for trdin' nd settlement
purposes.
10.>.?.2. Prior to the spot market commencement date the
Market Operator shll pu'lis re'ister of market tradin*
nodes nd of the %radin* Participant responsi%le for ech.
9'2'8 Dee!m#na#$n $/ C+s$me! P!#"#n% @$nes
10.>.6.1. !hen (ustomer Pricin' ones re dopted nd prior to
the spot mret commencement dte the #ret
*pertor shll< (As amended *- DOE DC N$' 992:9;:99<
daed ; +,- 992)
Prtition the set of customer nodes into
pricin* ,ones for Customers! to %e clled
customer pricin* ,onesC
% &etermine formul to clculte e3 ante ,onal
ener*y prices nd e3 post ,onal ener*y prices s the
pproprite tod:wei'hted $er'es of nodal
ener*y prices for nodes within ech customer
pricin* ,one
c &etermine the nture of informtion to %e
pu'lised for ech customer pricin* ,one
d "u%mit to the PEM Board for ppro$l rele$nt
detils of ll customer pricin* ,ones lloction of
market tradin* nodes to ech customer pricin*
,one nd price clcultion formulC nd
e After o%tinin' the ppro$l of the PEM Board
under cluse 10.>.6.1d pu'lis the followin'<
1 Customer pricin* ,onesC nd2 Alloction of market tradin* nodes.
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10.>.6.2. The PEM Board shll de$elop nd therefter shll
pu'lis *uidelines re'rdin'<
The lloction of mret trdin' nodes to customer
pricin' 5onesC nd
% Any other mtter rele$nt to pricin* ,ones.
9'2';An"#,,a!- Se!5#"es
9'2';'' An"#,,a!- Se!5#"es A%!eemens
10.>.@.1.1 The System operator shll prior to the spot
market commencement date nd in
consulttion with the Market Operator
de$elop nd pu'lis procedures in reltion
to ny competiti$e tenderin' process for
ancillary services or ny other procedure
which the System operator plns to de$elop
for the pro$ision of ancillary services.
10.>.@.1.2. Prior to the spot market commencement
dte the System operator shll<
In consulttion with the Market
Operator nd WESM Participants
de$elop<
1 Ancillary service
rrn'ements nd interim
market contrct re4uirementsC
2 Ancillary service cate*ories
includin' reserve cate*ories
3 Reserve /acility cate*ories
> Reserve e//ectiveness /actors
? Reserve re*ions
6 Reserve cost recovery ,onesC
nd
@ Ancillary service cost recovery
/ormula to %e de$eloped in
ccordnce with the principles
set out in cluse 3.3.?.>C
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% "u%mit to the PE# ord to endorse
to the ER( for ppro$l rele$nt
detils of ech of the mtters set out
in cluse 10.>.@.1.2 C nd
c After o%tinin' the ppro$l of the
ERC under cluse 10.>.@.1.2 %
pu'lis the followin'<
1 Ancillary service rrn'ements
nd ancillary service
cate*ories includin' reserve
cate*ories!
2 Reserve cost recovery ,ones
3 Alloction of market tradin*
nodes to reserve cost
recovery ,ones nd
> Reserve cost recovery /ormula.
10.>.@.2. Reser$e #ret Arrn'ements
10.>.@.2.1. !hen reson%ly fesi%le the
Market Operator in consulttion with
the System operator shll est%lish
market for the purchse of certin reserve
cate*ories.
10.>.@.2.2. The System operator shll define<
Reserve cate*ories
% 7enerl re4uirements reltin' to ech
reserve cate*ory C nd
c The criteri to %e stisfied %y $rious
reserve /acility cate*ories o//erin*
reserve to meet those re4uirements
in ccordnce with the $rid Code and
istri'ution Code.
10.>.@.3. The System operator in consulttion with the Market
Operator shll<
Est%lish loctionlly specific re4uirements for echreserve cate*ory
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% "pecify reserve e//ectiveness /actors for
ech reserve /acility cate*ory
c Est%lish reserve re*ions within which reserve
o//ers my %e ccepted to meet ech such
loctionlly specific re4uirementC
d &etermine correspondin' set of loctionlly
specific reserve re1uirements constraints to
%e incorported into the dispatc
optimi,ationC nd
e Est%lish reserve cost recovery ,ones within which
reserve cost recovery car*es my %e reco$ered to
meet ech loctionlly specific re4uirement.
10.>.@.>. The Market Operator shll<
&eclre the form in which reserve o//ers for ech
reserve cate*ory will %e ccepted from $rious
reserve /acility cate*ories nd
% &etermine the fre4uency with which nd process
%y which reserve o//ers my %e updted.
9'2'<T#mea*,e
10.>..1. Prior to the spot market commencement date the
Market Operator in consulttion with the System
Operator and WESM Participants! shll de$elop
timeta'le for opertion of the spot market.
10.>..2. The Market Operator shll pu'lis the timeta'le su%ect
to the ppro$l of the PEM Board .
9'2'= L$ad F$!e"as#n%
Prior to the spot market commencement date the Market Operator
shll in consulttion with the System operator nd with the ppro$l of
the PEM Board de$elop procedures for preprtion of net lod forecsts
s re4uired %y cluse 3.?.>.
9'2'9Ma!.e D#spa"h Op#m#a#$n M$de,
10.>.10.1. Prior to te spot market commencement date the
Market Operator shll de$elop the formultion of the
market dispatc optimi,ation model to %e used for the
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purposes of centrl schedulin' nd dispatc! nd pricin* in
ccordnce with cluses 3. nd 3.10.
10.>.10.2. Prior to the spot market commencement dte the
Market Operator shll de$elop performnce stndrds
includin' stndrds for reli%ility nd processin' time
which shll %e met %y the market dispatc optimi,ation
model! once implemented.
10.>.10.3. The formultion of the market dispatc
optimi,ation model de$eloped under cluse 10.>.10.1
nd the performnce stndrds de$eloped under cluse
10.>.10.2 re to %e ppro$ed %y the PEM Board h$in'
%een certified s complint with the WESM Rules %y n
independent re$iewer ppointed %y the PEM Board .
10.>.10.>. The Market Operator shll pu%lish detils of the market
dispatc optimi,ation model once ppro$ed %y the PEM
Board under cluse 10.>.10.>.
9'2' C$ns!a#n 7#$,a#$n C$e//#"#ens
10.>.11.1. Prior to the spot market commencement date the
Market Operator shll de$elop nd pu'lis constraint
violation coe//icients or procedures for clcultin'
constraint violation coe//icients for ech constraint
detiled in cluse 3.6.1.> to %e used in the market
dispatc optimi,ation model.
10.>.11.2. The constraint violation coe//icients shll %e<
&e$eloped in consulttion with WESM ParticipantsC
% Approprite for nd commensurte with the
prticulr constraint to which it is to %e ppliedC
nd
c Appro$ed %y the PEM Board .
9'2'D#spa"h T$,e!an"es
Prior to the spot market commencement date! the Market Operator
shll su%ect to PEM Board ppro$l de$elop 'uidelines on dispatc
tolerances for ech type of plant! nd loction tin' into ccount
plant chrcteristics locl net#ork conditions nd ny other mtter
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considered rele$nt for purposes of schedulin' nd disptch nd in
ccordnce with the $rid Code and istri'ution Code
9'2'0 Mana%emen P!$"ed+!es D+!#n% L$ad Shedd#n%
Prior to the spot market commencement date! the System operator nd
the Market Operator in consulttion with WESM Participants nd
su%ect to ppro$l %y the PEM Board shll de$elop nd pu'lis detiled
procedures for the mn'ement of ll spects of dispatc nd pricin*
durin' periods when load seddin* is re4uired under cluse 3.9.@.
9'2'2 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n
Prior to the spot market commencement dte the System operator nd
the Market Operator in consulttion with WESM Participants nd
su%ect to ppro$l %y the PEM Board shll ech de$elop nd pu%lish
the procedures which they pln to dopt with respect to the
mn'ement of ll spects of dispatc and pricin* should it %e necessry
to shut down *eneratin* systems under cluse 3.9..1.
9'2'3 Mana%emen P!$"ed+!es /$! E"ess 6ene!a#$n
Prior to the spot market commencement date the System operator nd
the Market Operator in consulttion with WESM Participants nd
su%ect to ppro$l %y the PEM Board shll ech de$elop nd pu'lis
the procedures which they pln to dopt with respect to the
mn'ement of ll spects of dispatc and pricin* should it %e necessry
to shut down *eneratin* systems in the e$ent the dispatc optimi,ation
or ny market pro2ection indicte e3cess *eneration t ny node.
9'2'8 P!$"ed+!es /$! E:P$s N$da, Ene!%- P!#"e
Prior to the spot market commencement date the Market Operator in
consulttion with WESM Participants nd su%ect to ppro$l %y the
PEM Board shll de$elop nd pu%lish the procedures to %e employed in
cluses 3.10.6 d nd e in est%lishin' the net#ork con/i*uration nd
other constraints to %e ssumed for the determintion of e3+post nodal
ener*y prices for circumstnces in which po#er system conditions
mterilly chn'e durin' the tradin* interval with $iew to ensurin'
tht<
(onsistency is mintined %etween the market net#ork
confi'urtion nd stte determined in ccordnce with cluse3.10.6 d ny constraints determined in ccordnce with
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cluse 3.10.6 e nd the unrestrained net loads mesured or
estimted for ech market net#ork node in ccordnce with
cluse 3.10.6 cC nd
% The e3+post prices produced in ccordnce with cluse 3.10.6
properly nd firly represent $er'e conditions o$er the tradin*
interval.
9'2'; Eme!%en"- P!$"ed+!es
The System operator in consulttion with the Market Operator shll
de$elop pproprite emer*ency procedures in ccordnce with the $rid
Code and istri'ution Code. "uch procedures shll %e su%ect to
ppro$l of the PEM Board .
9'2'<Ha!m$n#a#$n
,rmoni5tion of WESM Rules with the $rid Code istri'ution Code nd
other rules nd re'ultions issued %y the OE nd ERC shll %e
underten upon promul'tion of these Rules.
9'2'= The Te"hn#"a, W$!.#n% 6!$+p (TW6)
9'2'='' C!ea#$n $/ he TW6
The OE shll crete nd chir Technicl !orin' 7roup 8T!78 to %e
composed of the $overnment nd industry prticipnts immeditely
fter the promul'tion of these Rules.
Industry Prticipnts for purposes of this cluse shll %e composed of
indi$idul representti$es comin' from<
1 Philippine Independent Power Producers; Assocition PIPPAC
2 Pri$te Electric Plnt *wners Assocition PEP*AC
3 Philippine Rurl Electric (ooperti$e Assocition P,I-RE(AC
> #nil Electric (ompny #ERA-(*C
? +tionl Power (orportion +P(C
6 +tionl Trnsmission (ompny TRA+"(*C
@ Power "ector Assets nd -i%ilities #n'ement (orp. P"A-#C
9'2'=''Resp$ns#*#,##es
To ensure smooth trnsition from promul'tion of these Rules to ctul
commercil opertion of the spot market the T!7 shll recommend to
the OE for its pproprite ction supplementl modifictoryclrifictory nd other mendments or dditionl pro$isions to the
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WESM Rules which the T!7 finds necessry nd reson%le includin'
%ut not limited to<
Refinements in the dispute resolution processC
% 7o$ernnce issuesC
c )inncil trnsmission ri'htsC
d Market net#ork modelC nd
e Market dispatc optimi,ation modelC
9'2'='0' App,#"a*#,#-
(onsistent with cluse .1 tht specified Rules chn'e procedure will
pply when the WESM is in ctul opertion the proposed mendments
of the T!7 nd the correspondin' officil issunces %y the OE shll
not %e co$ered %y the pro$isions of the Rules chn'e process contined
in (hpter .
9'2'='2' Ten+!e
The T!7 shll %e constituted s soon s possi%le meet s often s
prctic%le nd shll continue to underte its functions until the ctul
opertion of the spot market.
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CHAPTER
6LOSSARY
AC' Alterntin' current.
A"' Refers to Repu%lic Act +o. 9136 lso nown s the 8Electric Power Industry Reform
Act of 20018.
A"#5e Ene!%-' A mesure of electricl ener*y flow %ein' the time inte'rl of the
product of $olt'e nd the in:phse component of current flow cross connection
point eBpressed in !tt hours !h nd multiples thereof.
A"+a, Ep$s+!e' The totl mount of o%li'tion tht WESM mem'er is re4uired to
py on due dte. (Added pe! DOE DC N$' 92:0:999< daed 8 Ma!"h 92)
Adm#n#se!ed P!#"e' A price imposed %y the #ret *pertor to the Trdin'
Prticipnts durin' market suspension nd intervention to %e used for settlements
which price is determined in ccordnce with the methodolo'y de$eloped nd
pu%lished %y the #ret *pertor nd ppro$ed %y the ERC. (As amended *- DOE DC
N$' 993::99 daed N$5em*e! 993)
A//e"ed Pa!#"#pans. A WESM mem'er who is ffected %y decision or hs
pecuniry interest in decision.
A6C' Automtic 7enertion (ontrol.
An"#,,a!- Se!5#"es. Those ser$ices tht re necessry to support the trnsmission of
cpcity nd ener*y from resources to lods while mintinin' reli%le opertion of
the transmission system in ccordnce with 'ood utility prctice the $rid Code and
istri'ution Code.
An"#,,a!- Se!5#"es A%!eemen. An 'reement under which WESM mem'er
re'istered s n Ancillary Service Provider 'rees to pro$ide ancillary services.An"#,,a!- se!5#"es "$s !e"$5e!- "ha!%e. The chr'e py%le %y WESM mem'er s for
reco$ery of the cost incurred %y the Market Operator for the pro$ision of Ancillary
Services.
An"#,,a!- Se!5#"es P!$5#de!' A person or n entity pro$idin' ancillary services nd
re'istered with the Market Operator .
An#:C$mpe##5e Beha5#$!' This refers to nti:competiti$e %eh$ior s defined in the
Act! IRR nd other rules nd re'ultions tht ERC my promul'te.
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A+h$!#a#$n' A permit consent ppro$l license or other form of uthority issued
under the Act which my %e re4uired s prere4uisite for undertin' certin
cti$ities in the Philippines electric power industry.
A+$n$m$+s 6!$+p Ma!.e Ope!a$! $! A6MO' The Autonomous 7roup Market
Operator constituted %y the OE under "ection 30 of the Act! which shll underte
the preprtory wor nd initil opertion of the WESM for period of twel$e months
from the spot market commencement date initilly under the dministrti$e
super$ision of the %RA&SCO. )or the $oidnce of dou%t durin' tht initil twel$e
month period ll references in the WESM Rules to 8Market Operator 8 shll %e
construed to men "A$MO-.
B#,ae!a, "$n!a". A contrct %etween prties the net effect of which is tht
defined 4untity of electricity hs %een sold %y one prty to nother t prticulr
node.
B#,,#n% Pe!#$d. The period of one month commencin' t 00<00 hours of the twenty
siBth 26th dy of ech clendr month to 2><00 hours of the Twenty:fifth 2? th
dy of the neBt clendr month' (As amended *- DOE DC N$'998:9;:999 daed
9+,- 998)
B,a". Sa! Capa*#,#-' In reltion to *eneratin* unit the %ility to strt nd
synchroni5e without usin' supply horn the po#er system.B,a". Sa!:+p Fa"#,##es' )cilities which pro$ide %lc strt cp%ility.
B+s#ness Da-' Any dy on which the spot mret is open for %usiness. (As amended *-
DOE DC N$' 993::99 daed N$5em*e! 993)
B+s#ness C$n#n+#-' Refers to the cti$ity performed %y the Market Operator to
ensure tht criticl %usiness functions will %e $il%le to the %radin* Participants!
System Operator! Meterin* Services Provides! ERC! OE! nd other entities tht must
h$e ccess to those functions. (Added pe! DOE DC N$' 90::99< daed 8
De"em*e! 90)
Cen!a, D#spa"h' The process of schedulin' %y the Market Operator nd issuin' direct
instructions to electric power industry prticipnts %y the System operator chie$e
the economic opertion of the transmission system while mintinin' its 4ulity
st%ility reli%ility nd security.
Cha#!pe!s$n' The person ppointed %y the OE to chir meetin's of the PEM Board .
Che". daa' &t supplied to the Market Operator %y %radin* Participant in
ccordnce with cluse 3.?.?.3 for the purpose of checin' the $lidity of ny future
offer or demnd %id in ccordnce with cluse 3.?.12.
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C$n/#den#a, In/$!ma#$n' Informtion which is or hs %een pro$ided to or %y
Prticipnt or the Market Operator under or in connection with the WESM Rules nd
is stted under the WESM Rules to %e or is clssified %y the Market Operator s
confidentil informtion or is otherwise confidentil or commercilly sensiti$e
informtion or is informtion which is deri$ed from ny such informtion.
C$nne"? C$nne"ed? C$nne"#$n. To form physicl lin to or throu'h the
transmission net#ork or distri'ution net#ork in such wy s to llow trnsmission
of electricity in ccordnce with the stndrds set out in the $rid Code.
C$nne"#$n Asses' Any component of transmission system or distri'ution system
which in the reson%le opinion of the Market Operator is ssocited with
connection point includin' meterin* installations.
C$nne"#$n P$#n. The 'reed point of supply est%lished %etween &et#ork Service
Provider nd %radin* Participant.
C$ns!a#n:$// . In respect of 'enertin' unit the output of tht *eneratin* unit is re:
disptched 'y te System Operator 'elo# its Real+%ime ispatc scedule in
accordance #it te WESM Merit Order %a'le. As amended *- DOE DC N$'92:9:
99 daed 2 O"$*e! 92)
C$ns!a#n:$n' In respect of *eneratin* unit the output of tht *eneratin* unit is re:
disptched %y the "ystem *pertor %elow its Real+%ime ispatc scedule in
accordance #it te WESM Merit Order %a'le. As amended *- DOE DC N$'92:9:
99 daed 2 O"$*e! 92)
C$ns!a#n' A limittion on the cp%ility of ny com%intion of net#ork elements
loads! *eneratin* units or Ancillary Service Providers such tht it is or is deemed %y
the System operator to %e unccept%le to dopt the pttern of trnsfer
consumption 'enertion or production of electricl power or other ser$ices tht
would %e most desir%le if the limittion were remo$ed.
C$ns!a#n 5#$,a#$n. A constrint is $iolted when the lodin's of net#ork elements
lods *eneratin* units or Ancillary Service Providers in$ol$ed in tht constraint
com%ine in such wy s to eBceed the limit specified %y tht constraint.
C$ns!a#n 7#$,a#$n C$e//#"#ens. (oefficients set %y the Market Operator in
ccordnce with cluse 3.6.2. The Market Operator is to ensure tht if constrints
shll %e $iolted such $ioltion will occur in pproprite priority order.
C$nesa*,e Ma!.e. Refers to the electricity End:users who h$e choice of
"upplier of electricity s my %e determined %y the ERCin ccordnce with the Act.
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C$n#n%en"- Rese!5e. The %ility to respond so s to rrest si'nificnt drop in
system fre4uency such s would rise s result of credi%le contin'ency ffectin'
one or more *eneratin* units within re'ion or trnsmission flows into re'ion.
C!ed# S+pp$!. An o%li'tion owed to the Market Operator %y third prty
supportin' the o%li'tions of %radin* Participant under cluse 3.1>.11.
C!ed# S+pp$! P!$5#de!. The prty which ssumes credit support o%li'tions to the
Market Operator under cluse 3.1>.11.
C+s$me!' A person who<
en''es in the cti$ity of purchsin' electricity supplied
throu'h trnsmission or distri%ution system other thn where ll
tht person;s electricity re4uirements re purchsed from "upplier
nd
% re'isters with the Market Operator in tht cpcity under cluse 2.3.2.
C+s$me! N$de' A market tradin* node t which electricity will normlly %e
purchsed from the spot market nd which is clssified s customer node in
ccordnce with cluse 3.2.2.2.
C+s$me! P!#"#n% @$ne. A 5one within which ll customers will fce the sme price for
electricity consumed s pu%lished %y the Market Operator in ccordnce with cluse
3.2.3.1.
Daa C$,,e"#$n S-sem. All e4uipment nd rrn'ements tht lie %etween the
meterin* data'ase nd the point where the meterin* data enters the pu%lic
telecommunications net#ork.
Daa L$%%e!' A de$ice tht collects ener*y data nd is cp%le of %ein' ccessed
electroniclly %y the Market Operator $i the dt collection system.
Da- Ahead P!$4e"#$ns. Proections of market conditions for the dy hed
determined nd pu'lised %y the Market Operator in ccordnce with cluse 3.@.2.
DC' &irect (urrent.
De/a+, E5en' Any one or more of the e$ents listed in cluse 3.1>.11.1.
De/a+, Ine!es Rae' An interest rte of three percent 3H per nnum or the
ppro$ed defult interest %y the PEM Board in ddition to the 0nterest Rate to %e
pplied to the reminin' defult mount. (As amended *- DOE DC N$' 92:0:999<
daed 8 Ma!"h 92)
De/a+, N$#"e' A notice issued %y the Market Operator under cluse 3.1>.11.2.
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Demand B#d. A standin* 'id! or market 'id to %uy electricity su%mitted or re$ised %y
Customer in ccordnce with cluse 3.?.6 3.?.9 3.?.12 or 3.?.13 nd continin'
the informtion specified in AppendiB A1.
Depa!men $/ Ene!%- $! DOE' The 'o$ernment 'ency creted pursunt to
Repu%lic Act +o. @63 whose eBpnded functions re pro$ided in the Act.
De!e%#se!ed WESM mem*e!' A person who is re'istered s WESM mem'er until
dere'istered under cluses 2.? nd 2.6.
D#!e" WESM mem*e!. A person or n entity who is re'istered with the Market
Operator under cluse 2.3.
D#!e"$!' A mem%er of the PEM Board ppointed %y the OE under cluse 1.>.3 h$in'
duty to mon' other mtters perform the duties of mn'ement of the PEM Board
in ccordnce with cluse 1.>.?.
D#sase!' Refers to nturl or mn:mde e$ent tht results in physicl dm'e
destruction of property or loss of life. &issters shll include %ut re not limited to
erth4ues typhoons floods storms fires %om% threts cts of terrorism or
s%ot'e power system %lcouts or ci$il distur%nces. (Added pe! DOE DC N$'
90::99< daed 8 De"em*e! 90)
D#sase! Re"$5e!-' Refers to su%set of %usiness continuity. This is the process
policies nd procedures tht re relted to preprin' for reco$ery or continution of
technolo'y infrstructure which re $itl to the Market Operator fter nturl or
humn:induced disster. (Added pe! DOE DC N$' 90::99< daed 8 De"em*e!
90)
D#s"$nne"' The opertion of switchin' e4uipment or other ction so s to pre$ent the
flow of electricity t connection point.
D#spa"h' The ct %y which the System operator initites ll or prt of the response
offered or %id %y scheduled *eneratin* unit or sceduled load in ccordnce with
cluse 3..2.
D#spa"h S"hed+,e' The tr'et loadin* levels in #! for ech scheduled *eneratin*
unit or sceduled load nd for ech reserve /acility for the end of tht tradin*
interval determined %y the Market Operator throu'h the use of marketdispatc
optimi,ation model in ccordnce with cluse 3..1.
D#spa"h T$,e!an"es' -imits on the eBtent to which %radin* Participants my de$ite
from dispatc tr'ets determined %y the System operator in ccordnce with cluse
3..@.
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D#spa"ha*,e L$ad' A lod which is %le to respond to disptch instructions nd so my
%e treted s scheduled lod; in the disptch process.
D#spa"ha*,e Rese!5e' The %ility to respond to re:disptch performed %y the
System operator durin' tradin* interval on either re'ulr or n d hoc %sis.
D#sp,a"ed 6ene!a$!. A 'enertin' unit identified nd instructed %y the System
Operator in n Out o/ Merit ispatc to reduce the pro$ision of ener'y specified in its
Real %ime ispatc instruction eBclusi$ely cused %y eBcess 'enertion due to non:
complince of 'enertors to disptch instructions nd use of recti$e support reser$e.
As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
D#sp+e Mana%emen P!$$"$, $! DMP' The &#P is system to %e followed %y the
disputin' prties nd shll form prt of the ne'otition st'e of the !E"# dispute
resolution frmewor. (As amended *- DOE DC N$' 9:9:999 daed 3
Fe*!+a!- 9)
D#sp+e Res$,+#$n Adm#n#s!a$!. A person ppointed %y the PEM Board under cluse
@.3.2.1.
D#s!#*+#$n C$de' The set of rules re4uirements procedures nd stndrds
'o$ernin' istri'ution tilities nd users in the opertion mintennce nd
de$elopment of their distri%ution systems. It lso defines nd est%lishes the
reltionship of the distri%ution systems with the fcilities or instlltions of the prties
connected thereto.
D#s!#*+#$n L#ne' A po#er line includin' under'round c%les tht is prt of
distri'ution net#ork.
D#s!#*+#$n Ne1$!.' A net#ork which is not transmission net#ork.
D#s!#*+#$n Se!5#"e' The ser$ices pro$ided %y istri'ution tility which re
ssocited with the con$eynce of electric power from transmission /acilities or
em%edded 'enertors to End:users %y istri'ution tility throu'h its distri%ution
system pursunt to the pro$isions of the Act nd the IRR.
D#s!#*+#$n S-sem' The system of wires nd ssocited fcilities %elon'in' to
frnchised istri'ution tility eBtendin' %etween the deli$ery points on the
transmission or su'+transmission system! or 'enertor connection nd the point of
connection to the premises of the End:=ser.
D#s!#*+#$n U#,#-' An Electric Cooperative pri$te corportion 'o$ernment:owned
utility or eBistin' locl 'o$ernment unit tht hs n eBclusi$e frnchise to operte
distri'ution system in ccordnce with its frnchise nd the Act nd re'istered withthe Market Operator s &et#ork Service Provider under cluse 2.3.>.
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E"$n$m#" Rena,' #ens for constrint in the market dispatc optimi,ation model
where the constraint is in liner pro'rmmin' cnonicl form tht is for
ma3imi,in* optimi,ation model7 the sum of the $ri%le terms less thn or e4ul to
the constnt term the sado# price of the constraint multiplied %y the constnt
term of the constraint.
EFT Fa"#,#-' An electronic funds trnsfer fcility.
E,e"!#" C$$pe!a#5e. A cooperti$e or corportion uthori5ed to pro$ide electric
ser$ices pursunt to Presidentil &ecree +o. 269 s mended nd Repu%lic Act +o.
693 within the frmewor of the ntionl rurl electrifiction pln.
E,e"!$n#" C$mm+n#"a#$n P!$"ed+!es. The procedures est%lished %y the Market
Operator nd updted from time to time in ccordnce with cluse ?.2.2.?.
E,e"!$n#" C$mm+n#"a#$n S-sem. A system used %y %radin* Participants nd the
Market Operator for eBchn'e of informtion in ccordnce with cluse ?.2.2.1.
Em*edded 6ene!a$!s' $eneratin* units tht re indirectly connected to the 7rid
throu'h the istri'ution tilities- lines or industril *eneration /acilities tht re
synchroni5ed with the 7rid.
Eme!%en"-' An e$ent or sitution descri%ed in cluses 6.3.1.1 nd 6.3.1.2.
Eme!%en"- D#!e"#$ns' &irections issued %y the Market Operator in n emer*ency
under cluse 6.?.1.
End:+se!. Any person or entity re4uirin' the supply nd deli$ery of electricity for its
own use.
Ene!%-' 7enerlly active ener*y ndDor reactive ener*y %ut for the purposes for
chpter 3 mens cti$e ener'y only.
Ene!%- Ba,an"e E>+a#$n' An e4ution determined %y the Market Operator in
ccordnce with cluse 3.6.1.> c representin' the %lnce %etween 'enertion
lod and transmission /lo#s t prticulr node of the market net#ork model.
Ene!%- Daa' The dt tht results from the mesurement of the flow of electricity in
power conductor. The mesurement is crried out t meterin* point.
Ene!%- Re%+,a$!- C$mm#ss#$n $! ERC' The independent 4usi:udicil re'ultory
%ody creted under the Act.
En/$!"emen and C$mp,#an"e O//#"e!' A person tsed to perform complince nd
enforcement functions pursunt to cluse @.2 includin' the in$esti'tion of lle'ed
%rech of the WESM Rules nd imposition of pproprite snctions nd such other
functions s my from time to time %e ssi'ned to him %y PE#(. (Added as pe! DOEDC N$' 998:9:999 daed 9 an+a!- 998)
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E:Ane' A mtter determined in reltion to tradin* interval %efore tht tradin*
interval commences.
E:Ane D#spa"h. The dispatc tar*ets set for the end of tradin* interval
immeditely precedin' the %e'innin' of tht tradin* interval.
E:Ane Ene!%- Se,emen P!#"e' The e3+ante nodal ener*y price or the e3+ante
,onal reserve price! s my %e pproprite determined in ccordnce with cluse
3.10.12.
E:Ane Ene!%- Se,emen +an#-. The 'ross mount determined %y the Market
Operator in ccordnce with cluse 3.13.? nd dusted for 'ilateral contracts in
ccordnce with cluse 3.13.@.
E:Ane N$da, Ene!%- P!#"e'The price determined %y the Market Operator for
prticulr market net#ork node nd tradin* interval immeditely prior to
commencement of tht tradin* interval directly from the disptch optimi5tion for
tht tradin* interval in ccordnce with cluse 3.10.2.
E:Ane @$na, Ene!%- P!#"e. The price determined %y $er'in' e3+ante nodal ener*y
prices in ccordnce with cluse 3.10.3.
E"ess 6ene!a#$n' 7enertions which my %e scheduled to occur in eBcess of lod
re4uirements e$en thou'h market ener*y prices h$e fllen to the market price floor
nd which shll then %e delt with in ccordnce with cluse 3.9..
E:p$s' A mtter determined in reltion to tradin* interval fter tht tradin*
interval concludes.
E:P$s Ene!%- Se,emen P!#"e' The e3+post nodal ener*y price or the e3+post ,onal
ener*y price! s pproprite determined in ccordnce with cluse 3.10.12.
E:P$s Ene!%- Se,emen +an#-. The mount determined %y the #ret
Operator in ccordnce with cluse 3. 13.6.. (As amended *- DOE DC N$' 90:90:
9993 daed Ma!"h 90)
E:P$s N$da, Ene!%- P!#"e' The price determined %y the Market Operator for
prticulr market node nd tradin* interval fter the end of tht tradin* interval in
ccordnce with cluse 3.10.6.
E:P$s @$na, Ene!%- P!#"e' A price determined %y $er'in' e3+post nodal ener*y
prices in ccordnce with cluse 3.10.11.
Fa"#,#-' A 'eneric term ssocited with pprtus e4uipment %uildin's nd necessry
supportin' resources for the 'enertion trnsmission supply sle nd consumption of
electricity.F#na, Saemen. A sttement issued %y the Market Operator under cluse 3.1>.?.
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F#na, WESM' The spot market operted %y n independent entity to which the
functions ssets nd li%ilities of the A$MO re trnsferred in ccordnce with
"ection 30 of the Act.
F#nan"#a, Yea!' A period referrin' to clendr yer tht commences on Qnury 1 nd
ends on &ecem%er 31 of the sme yer . (As amended *- DOE C#!"+,a! N$' DC90:
98:999 daed 0 Ma- 90)
F$!"e Ma4e+!e E5en' An e$ent risin' from mor networ trou%le tht cused prtil
or system:wide %lcout mret system softwre filure nd ny other e$ent
circumstnce or occurrence in nture of or similr in effect to ny of the fore'oin'.
F$!m+,a#$n' A mthemticl specifiction of n optimi5tion model.
F!an"h#se A!ea' A 'eo'rphicl re eBclusi$ely ssi'ned or 'rnted to istri'ution
tility for distri%ution of electricity.
F!e>+en"-' )or lterntin' current electricity the num%er of cycles occurrin' in ech
second. The term ,ert5 ,5 corresponds to cycles per second.
6ene!a#n% S-sem. A system comprisin' one or more *eneratin* units.
6ene!a#n% Un#. A sin'le mchine 'enertin' electricity nd ll the relted
e4uipment essentil to its functionin' s sin'le entity nd h$in' nmeplte rtin'
of 1 #lDID or more.
6ene!a#$n' The production of electricl power %y con$ertin' one form of ener*y to
nother in *eneratin* unit.
6ene!a#$n C$mpan-. A person or entity uthori5ed %y the ERC to operte fcilities
used in the 'enertion of electricity nd re'istered with the Market Operator in tht
cpcity in ccordnce with cluse 2.3.1.
6ene!a#$n O//e!. A standin* o//er or market o//er to supply electricity su%mitted or
re$ised %y $eneration Company in ccordnce with cluses 3.?.? 3.?.9 3.?.10 or
3.?.11.
6ene!a$! N$de. A market tradin* node t which electricity will normlly %e sold to
the spot market nd which is clssified s *enerator node in ccordnce with cluse
3.2.2.2.
6$5e!nmen' The 7o$ernment of the Philippines.
6$5e!nmen A+h$!#-. Any 'o$ernment or 'o$ernmentl semi:'o$ernmentl
dministrti$e or udicil %ody deprtment commission uthority tri%unl 'ency
or entity.
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6!#d' The hi'h $olt'e %c%one system of interconnected transmission lines
su%sttions nd relted fcilities locted in ech of -u5on Lisys nd #indno or
s my otherwise %e determined %y the ERC in ccordnce with "ection >? of the Act.
6!#d C$de' The set of rules re4uirements procedures nd stndrds to ensure the
sfe reli%le secured nd efficient opertion mintennce nd de$elopment of the
hi'h $olt'e %c%one Trnsmission "ystems nd its relted fcilities.
6!$ss E:AneE:P$s Ene!%- Se,emen +an#-. The e3+ante:e3+post ener*y
settlement 1uantity determined in ccordnce with cluses 3.13.?D3.13.6 for
market tradin* node in tradin* interval %efore ny dustment for %ilterl
contrcts.
H7DC' ,i'h Lolt'e &irect (urrent.
ICT Chan%e Mana%emen P!$"ess $! JICMP' The process instituted %y the Market
Operator tht ensures proper nd timely re$iew ppro$l implementtion
monitorin' nd documenttion of ll I(T chn'es re4uirements of the Market
Operator .(Added as pe! DOE DC N$' 9::99 daed De"em*e! 9)
Ind#!e" WESM mem*e!. A person or n entity who wishes to indirectly trde in the
spot market. ,owe$er n Indirect WESM mem'er my only trnsct throu'h direct
WESM mem'er .
Insa,,a#$n Daa*ase' The dt%se which Market Operator is re4uired to eep in
respect of its meterin* installations pursunt to cluse >.@.
Ine!es Rae' In reltion to ny period for which n interest rte is to %e determined
hereunder rte per nnum e4ul to the lendin' rte pu%lished %y the n'o "entrl
n' Pilipins t the time of pyment. (As amended *- DOE DC N$' 92:0:999<
daed 8 Ma!"h 92)
Ine!#m WESM' The spot market operted %y A$MO for period of twel$e months
from the spot market commencement date or until such time tht A$MO ceses to
eBist.
Inend#n% WESM member ' A person who wishes to %ecome WESM mem'er nd who
re'isters with the Market Operator under cluse 2.9.
Ine!!+p#*,e L$ad' #ens lod tht Customer is %le to interrupt t $ery short
notice in response to<
A /re1uency de$itionC or
% A re4uest of the System operator
in order to meet contin'ency reserve re4uirements su%ect to the re4uirements of the $rid Code and istri'ution Code.
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Ine!5en#$n' A mesure ten %y the System Operator when the 'rid is in eBtreme
stte condition s est%lished in the $rid Code risin' from thret to system
security /orce ma2eure event or emer*ency! or %y the Market Operator in reltion to
the simultion or implementtion of the 'usiness continuity or disaster recovery
procedures de$eloped in ccordnce with (luse 6..1. &urin' such e$ent the
administered price cap shll %e used for settlements (As amended *- DOE DC N$'
90::99< daed 8 De"em*e! 90)
L#ne Rena,' The economic rentl risin' from the use of transmission line
clculted s the difference in $lue %etween flows out of the receivin* node of tht
line nd flows into the sendin* node! in ccordnce with cluse 3.13.12.
L$ad' The mount of ener*y consumed in defined period $i node.
L$ad F$!e"as. ,s the sme menin' s net load /orecast.
L$ad Shedd#n%. Reducin' or disconnectin' lod horn the po#er system.
L$ad We#%hed A5e!a%e. An $er'e produced %y multiplyin' ech nodal ener*y price
%y the lod t tht node summin' the results nd then di$idin' %y the sum of the
lods in$ol$ed.
L$ad#n% Le5e,' The instntneous le$el of output or consumption in #! of
*eneratin* unit or load.
L$"a, S+pp,#e!. In reltion to locl re the Market Customer who is responsi%le for
the supply of electricity to frnchise customers in tht locl re.
L$"a#$na,,- Spe"#/#" Rese!5e Re>+#!emen. A re4uirement for prticulr reserve
cate*ory to %e met t prticulr loction %y reserve /acilities in prticulr
reserve re*ion in ccordnce with cluse 3.3.? nd with costs to %e reco$ered from
prticulr reserve cost recovery ,one in ccordnce with cluse 3.3.?.
L$ss D#//e!en#a,. ,s the sme menin' s 'reed loss differentil.
Ma!%#n Ca,,' An mount which the Market Operator clls to %e pid %y %radin*
Participant in ccordnce with cluse 3.1?.10.1 to me up ny nticipted shortfll
%etween tht %radin* Participant;s trdin' limit nd the Market Operator ;s eBposure in
respect of tht %radin* Participant.
Ma!.e B#d' A demand 'id for prticulr tradin* interval of prticulr tradin* day
in the current market ori,on! whether formed from stndin' %id in ccordnce with
cluse 3.?.10 or re$ised %y the rele$nt %radin* Participant in ccordnce with cluse
3.?.11.
Ma!.e D#spa"h Op#m#a#$n M$de,' The optimi,ation model which contins themthemticl l'orithm ppro$ed %y the PEM Board to %e used for the purposes of
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determinin' disptch schedules nd ener*y prices nd preprin' market pro2ections
%sed on the price determintion methodolo'y ppro$ed %y ERC.
Ma!.e Fees. The chr'es imposed on ll WESM mem'er s %y the Market Operator to
co$er the cost of dministerin' nd opertin' the !E"# s ppro$ed %y the ER(.
Ma!.e H$!#$n. A period for which day+aead or #eek+aead pro2ections re
performed s defined in the timeta'le.
Ma!.e In/$!ma#$n We* S#e. A fcility to %e est%lished %y the Market Operator on
the electronic communication system on which it my pu%lish informtion which is
then $il%le to nd my %e ccessed %y WESM mem'er s.
Ma!.e L$ad' The electricity deli$ered to connection point nd purchsed %y
Customer horn the spot market.
Ma!.e Man+a,s' A mnul of specific procedures systems or protocols for the
implementtion of the !E"# Rules.(Added as pe! DOE DC N$'998::990 daed 9=
N$5em*e! 998)
Ma!.e Ne1$!. L#nes. Actul or notionl networ lines oinin' market net#ork nodes
within the market net#ork model.
Ma!.e Ne1$!. M$de,. A mthemticl representtion of the po#er system! which
will %e used for the purpose of determinin' dispatc scedules nd ener*y prices nd
preprin' market pro2ections.
Ma!.e O//e!' A *eneration o//er for prticulr tradin* interval of prticulr
tradin* day in the current market ori,on whether formed from standin* o//er in
ccordnce with cluse 3.?.10 or re$ised %y the rele$nt %radin* Participant in
ccordnce with cluse 3.?.11.
Ma!.e Ope!a$!' The entity responsi%le for the opertion of the spot market
'o$erned %y the PEM Board in ccordnce with cluse 1.> which for the $oidnce of
dou%t is the A$MO for period of twel$e months from the spot market
commencement date nd therefter the entity to which the functions ssets nd
li%ilities of the A$MO re trnsferred in ccordnce with section 30 of the Act.
Ma!.e P!#"e. A 'eneric term co$erin' prices for ener*y nd reserv e e3+ante or e3+
post! nodal or ,onal! s pproprite.
Ma!.e P!$4e"#$ns. Week aead or day aead pro2ections of spot market conditions
performed in ccordnce with cluse 3.@.
Ma!.e S+!5e#,,an"e C$mm#ee. The (ommittee ppointed under cluse 1.6.
Ma!.e S+spens#$n' An e$ent wherein the ERC declres the opertion of the spotmarket to %e suspended in cses of nturl clmities or ntionl nd interntionl
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security emer'encies. &urin' such e$ent the administered price cap shll %e used for
settlements.
Ma!.e T!ad#n% N$des. Those nodes t which electricity will %e either %ou'ht or sold
from the spot market defined in ccordnce with cluse 3.2.2.
Ma!.e T!ansa"#$n. A sle or purchse of electricity or other ser$ices mde throu'h
the spot market.
Ma#m+m Ep$s+!e' The ma3imum e3posure o/ WESM mem'er shll men the
computed $er'e monthly settlement mount of the %illin' periods co$erin' 26 #rch
throu'h 2? "eptem%er prior to the end of the 6inancial 9ear multiplied %y the fctor
3?D30 nd shll set the le$el of security deposit tht WESM mem'er is re4uired to
mintin. (As pe! DOE DC N$' 92:0:999< daed 8 Ma!"h 92)
Mee!' A de$ice which mesures nd records the consumption or production of
electricity.
Mee!ed +an#-. The 4untity of electricity sold or purchsed from the spot market
s pplic%le determined %y the Market Operator horn meterin* data.
Mee!#n%' Recordin' the production or consumption of electrical ener*y.
Mee!#n% Daa' The dt o%tined or deri$ed from meterin* installation.
Mee!#n% Daa*ase. The dt%se ept %y the Market Operator pursunt to cluse >.@.
Mee!#n% Insa,,a#$n. The meter nd ssocited e4uipment nd instlltions instlled
or to %e instlled for the collection of meterin' dt re4uired for settlement
purposes.
Mee!#n% P$#n. The point of physicl connection of the de$ice mesurin' the current
in the power conductor.
Mee!#n% Se!5#"es P!$5#de!. A person or entity uthori5ed %y the ERC to pro$ide
meterin* services nd re'istered with the Market Operator in tht cpcity in
ccordnce with cluse 2.3.6.
Mee!#n% Re%#se!. A re'ister of informtion reltin' to meterin* installations ept %y
the Market Operator nd formin' prt of the meterin* data'ase.
MW. #e' !tt.
M+s:R+n Un# (MRU)' A 'enertin' unit identified nd instructed %y the System
Operator to either come on:line or % pro$ide dditionl ener'y on prticulr
%radin* 0nterval %ut the disptch of which is sid to %e *ut of #erit to ddress
System Security re4uirements. )or clrity #R= shll %e utili5ed only fter the System
Operator hs eBhusted ll $il%le Ancillary Services. #R=s re clssified sfollows< . "cheduled #R= : #R= desi'nted %y the "ystem *pertor %efore the
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trdin' inter$l nd included in the Rel Time &isptch schedule throu'h the
imposition of "ecurity -imit s defined in the !E"# &isptch Protocol #nul. % Rel:
Time #R= : #R= desi'nted %y the System Operator within tradin* interval. As
amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
M+s: S$p Un# (MSU)' A 'enertin' unit identified nd instructed %y the System
Operator to reduce the pro$ision of ener'y due to its non complince of the ispatc
Scedule to ddress or pre$ent possi%le thret to the "ystem "ecurity re4uirements of
the 7rid. As amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
Namep,ae Ra#n%' The mBimum continuous output or consumption in #! of n item
of e4uipment s specified %y the mnufcturer.
Na#$na, P$1e! C$!p$!a#$n $! NPC' The 'o$ernment corportion creted under
Repu%lic Act +o. 639? s mended.
Na#$na, T!ansm#ss#$n C$!p$!a#$n $! TRANSCO' The corportion or'ni5ed
pursunt to the Act to c4uire ll the trnsmission ssets of the +P(.
Ne L$ad F$!e"as. A /orecast! prepred in ccordnce with the procedures to %e
de$eloped under cluse 3.?.> of the load! net of ny non:scheduled 'enertion to %e
mtched lon' with ny sceduled load %y 'enertion from scheduled *eneration
/acilities.
Ne Se,emen S+!p,+s. The settlement surplus reminin' fter ll mret
trnsctions h$e %een ccounted for includin' the ssi'nment of transmission line
rentals to &et#ork Service Providers. This reminder is ssumed to %e ttri%ut%le to
economic rentls risin' from other %indin' constraints! nd ccounted for in
ccordnce with cluse 3.13.16.
Ne1$!.' The pprtus e4uipment nd plnt used to con$ey nd control the
con$eynce of electricity to customers whether wholesle or retil eBcludin' ny
connection e4uipment. In reltion to &et#ork Service Provider net#ork owned
operted or controlled %y the &et#ork Service Provider.
Ne1$!. C$ns!a#ns. Constraints representin' net#ork chrcteristics such s limits
on transmission line /lo#s to %e included in the market dispatc optimi,ation model
in ccordnce with cluse 3.6.1.> f.
Ne1$!. L#nes' The<
transmission lines
% distri'ution lines
c trans/ormer elementsC ndd other plnt ssocited with trnsmission lines nd distri%ution lines.
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Ne1$!. Se!5#"e' %ransmission services or distri'ution services ssocited with the
con$eynce nd with controllin' the con$eynce of electricity throu'h the net#ork.
Ne1$!. Se!5#"e P!$5#de!. A person who en''es in the cti$ity of ownin'
controllin' or opertin' transmission or distri'ution system nd who is re'istered
with the Market Operator s tht cpcity under cluse 2.3.>.
N$da, Ene!%- P!#"e. The ener*y price t node determined e3 ante or e3+post.
N$da, 7a,+e $/ L$s L$ad (N$da, 7$LL)' #ens the constraint violation coe//icient of
the ener*y 'alance e1uations for ech node set %y the Market Operator in ccordnce
with cluse 3.6.2.3.
N$de. A connection point on net#ork or unction point within net#ork model
whether physicl or notionl.
N$n:S"hed+,ed 6ene!a#n% Un#' A *eneratin* unit or 'roup of *eneratin* units
connected t common point with nmeplte rtin' nd com%ined nameplate
rtin' of less thn one tenth of one percent 0.1H of the peak load in prticulr
reserve re*ion or less thn ten percent 10H of the si5e of the interconnection
/acilities whiche$er is lower.
N$n:W$!.#n% Da-' A dy which is not !orin' &y. (Added pe! DOE DC N$' 90:90:
9993 daed Ma!"h 90)
N$!ma,,- O//' A sitution in which lod does not eBist unless it is %id into the spot
market.
NRE 6ene!a#n% Un# 1#h Ine!m#en Ene!%- Res$+!"e' A new nd renew%le
ener'y *eneratin* unit or 'roup of units connected to common connection point
whose ener*y resource is loction specific nd hs nturl $ri%ility which renders
the output unpredict%le nd the $il%ility of the resource inherently
uncontroll%le which include plnts utili5in' wind or ocen ener*y.
Opp$!+n#- C$s' The economic loss suffered %y some prty s result of losin' n
opportunity such s the opportunity to sell ener'y to the spot market.
O+ $/ Me!# D#spa"h: &isptch instructions issued %y the "ystem *pertor tht is not
in ccordnce with the !E"# #erit *rder T%le to ddress "ystem "ecurity. As
amended *- DOE DC N$'92:9:99 daed 2 O"$*e! 92)
O+a%e' Any full or prtil un$il%ility of e4uipment or fcility.
O5e!:R#d#n% C$ns!a#ns' Constraints imposed in the market dispatc optimi,ation
model %y the Market Operator t the recommendtion of the System operator with
the intention of o$er:ridin' the effect of %radin* Participant;s offers or demnd %idsin ccordnce with cluse 3.?.13.
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Pa-men Dae' The rele$nt dte on which %radin* Participant shll py to the
Market Operator the settlement mount in ccordnce with cluse 3.1>.9.
PEM A+d#$!' The uditor ppointed %y the PEM Board under cluse 1.>.6 to underte
functions s set out in cluse 1.?.
PEM B$a!d' The 'roup of irectors ser$in' from time to time on the %ord tht is
responsi%le for 'o$ernin' the WESM.
Ph#,#pp#ne E,e"!#"#- Ma!.e C$!p$!a#$n $! PEMC' The corportion incorported
upon the inititi$e of the OE composed of ll WESM mem'er s nd whose ord of
&irectors will %e the PEM Board . (Added as pe! DOE DC N$' 998:9:999 daed 9
an+a!- 998)
P,an' Any e4uipment in$ol$ed in 'enertin' utili5in' or trnsmittin' electricl
ener*y.
P$1e! S-sem' The inte'rted system of transmission nd distri'ution net#orks for
the supply of electricity in the Philippines.
P!#"#n% e!!$! n$#"e. A notice issued in ccordnce with cluse 3.9.6 d$isin' the
market tht the e3 ante prices for prticulr tradin* interval re un$il%le or
in$lid.
P!$4e"#$n' A set of results deri$ed in ccordnce with cluse 3.@ from series of
mret dispatc optimi,ation model runs descri%in' proected market conditions o$er
day+aead or #eek+aead market ori,on for prticulr scenrio of net /orecast
load nd set of ssumptions with respect to $il%ility of ey system elements.
P!+den#a, Re>+#!emens. The re4uirements imposed on %radin* Participant to
pro$ide nd mintin security in ccordnce with cluse 3.1?.
P+*,#sh? P+*,#"a#$n' To me $il%le informtion.
Ramp Rae. The rte of chn'e in electricity production or consumption from
*eneratin* unit or sceduled load.
Rea"#5e Ene!%-. A mesure in $rhours $rh of the lterntin' eBchn'e of stored
ener*y in inductors nd cpcitors which is the time inte'rl product of $olt'e nd
the 4udrture component of current flow cross connection point.
Rea"#5e P$1e!' The rte t which recti$e ener*y is trnsferred produced or
purchsed %y Customer.
Rea"#5e S+pp$!. =nutili5ed sources of recti$e power rrn'ed %y the Market
Operator to %e $il%le to cter for the possi%ility of un$il%ility of nother source
of recti$e power or incresed re4uirements for recti$e power.
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Re"e#5#n% n$de. )or trnsmission line the node from which there is net /lo# of
electricity out of tht line in prticulr tradin* interval to %e ccounted for in
determinin' the line rental! in ccordnce with cluse 3.13.12. )or transmission
ri*t the node to which the issuer of the transmission ri*t is deemed to 'urntee
trnsfer of electricity to %e d$ised to the Market Operator in ccordnce with cluse
3.13.2 nd ccounted for in ccordnce with cluse 3.13.1?.
Re%+,a#n% Rese!5e' The %ility to dust 'enertion continuously in response to smll
fre4uency chn'es so so s to co$er lod fluctutions or minor %redowns defined
s n ancillary service in cluse 3.3.>.2 .
Re,#a*#,#-' The pro%%ility of system de$ice plnt or e4uipment performin' its
function de4utely for the period of time intended under the opertin' conditions
encountered.
Rese!5e' Contin*ency reserve or re*ulatin* reserve.
Rese!5e Cae%$!-. A prticulr ind or clss o/ reserve s under cluse 3.3.>.2.
Rese!5e C$s Re"$5e!- Cha!%es. (hr'es to reco$er the costs incurred in purchsin'
reserve to %e determined %y formul ppro$ed %y the ERC.
Rese!5e C$s Re"$5e!- @$ne' A 5one within which reserve cost recovery chr'es my
%e reco$ered to meet ech loctionlly specific re4uirement.
Rese!5e E//e"#5eness Fa"$!. A fctor to define the effecti$eness of reserve from
prticulr type of reser$e pro$ider in meetin' re4uirements for prticulr reserve
cate*ories.
Rese!5e Fa"#,#-' A fcility cp%le of pro$idin' reserves.
Rese!5e Fa"#,#- Cae%$!-. A prticulr type of reserve /acility chrcteri5ed %y its
technolo'y e' interrupti%le lod synchroni5ed *eneration! non:synchroni5ed
*eneration) which is reflected in the type of offer it cn me nd the reserve
e//ectiveness /actor.
Rese!5e O//e!. A standin* o//er or market o//er to supply reserves! su%mitted or
re$ised %y Customer or $eneration Company in ccordnce with cluse 3.?.@ 3.?.
3.?.10 or 3.?.11.
Rese!5e Re%#$n' A 5one of the power system from which prticulr reser$e cte'ory
cn %e supplied to meet prticulr loctionlly specific re4uirement.
Rese!5e Re>+#!emen C$ns!a#n A mthemticl representtion of loctionlly
specific reser$e re4uirement nd included in the mret disptch optimi5tion model
in ccordnce with cluse 3.6.1.> e.
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R+,es Chan%e C$mm#ee. The committee of tht nme est%lished in ccordnce
with cluse .2 nd which cts in ccordnce with chpter .
R+n' A prticulr instnce of the market dispatc optimi,ation model performed for
prticulr tradin* interval or set of such instnces model performed for ll the
tradin* intervals in market ori,on.
Sa/e- P,an. A pln which shll %e de$eloped %y certin WESM mem'er s in ccordnce
with the $rid Code and istri'ution Code nd pplic%le sfety le'isltion nd
re'ultions in the Philippines.
S"ena!#$. A net load /orecast co$erin' market ori,on.
S"hed+,ed 6ene!a#n% Un#. A *eneratin* unit so clssified in ccordnce with cluse
2.3.1.2 1. A *eneratin* unit or 'roup of *eneratin* units connected t
common connection point with nmeplte rtin' or com%ined nmeplte rtin' of
'reter thn or one tenth of one percent G0.1H of the pe lod in prticulr
reserve re*ion.
S"hed+,ed 6ene!a#$n C$mpan-. A $eneration Company tht is re4uired to ply n
cti$e role in the spot market %y su%mittin' *eneration o//ers! nd %ein' su%ect to
centrl disptch.
S"hed+,ed L$ad' A lod which is %le to respond to disptch instructions nd hs
%een %id into the spot market usin' demand 'id nd so my %e scheduled nd
disptched $i the schedulin' nd disptch procedures.
Send#n% n$de. )or transmission line the node into which there is net flow of
electricity out of tht line in prticulr tradin* interval to %e ccounted for in
determinin' the line rentl in ccordnce with cluse 3.13.12. )or transmission
ri*t the node from which the issuer of the transmission ri*t is deemed to
'urntee trnsfer of electricity to %e d$ised to the Market Operator in ccordnce
with cluse 3.13.2 nd ccounted for in ccordnce with cluse 3.13.1?.
Se,emen' The cti$ity of producin' %ills nd credit notes for WESM mem'er s in
ccordnce with cluse 3.13 nd with the processes defined in cluse 3.1>.
Se,emen Am$+n' The mount py%le %y or to %radin* Participant or &et#ork
Service Provider! in respect of %illin' period s determined %y the Market Operator
under cluse 3.13.1> or cluse 3.13.1?.
Se,emen P!#"e' An e3+ante or e3+post ener*y settlement price.
Se,emen +an#-' An e3+ante or e3+post ener*y settlement 1uantity! or a ,onal
reserve settlement 1uantity.
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Se,emen S+!p,+s' The settlement surplus reminin' fter ll mret trnsctions
h$e %een ccounted for nd is ssumed to %e ttri%ut%le to economic rentls risin'
from other %indin' constrints. (As amended *- DOE DC N$' 992:9;:99< daed ;
+,- 992)
Se,emen S-sem' The system includin' the computeri5ed system for conductin'
settlements.
Shad$1 P!#"e' #ens the mr'inl net %enefit from unit relBtion of the cpcity
limittion of constrint in the market optimi,ation model.
Spot market. ,s the sme menin' s the WESM.
Spot market C$mmen"emen Dae. The dte on which the spot market commences
opertion s declred %y the OE.
Sand#n% ne1$!. daa' "tndin' dt descri%in' prticulr net#ork pro$ided %y
the rele$nt &et#ork Service Provider dt in ccordnce with cluse 3.?.2.
Sand#n% O//e!B#d. A stndin' offer to sell ener*y or reserve! or %id to %uy ener'y
su%mitted %y the rele$nt %radin* Participant in ccordnce with cluse 3.?.? 3.?.6
3.?.@ or 3.?. nd re$ised from time to time in ccordnce with cluse 3.?.9 nd
effecti$e until o$er:ridden %y su%mission of specific market o//er in ccordnce with
cluse 3.?.11.
Sa+s' The ctul opertin' condition of *eneration unit or /acility includin' its
current commitment stte 'enertion le$el nd A7( cti$tion sttus.
S+pp,#e!' Any person or entity licensed %y the ERC to sell %roer mret or ''re'te
electricity to End:users nd re'istered with the Market Operator s Customer under
cluse 2.3.2.
S+pp,-' The sle of electricity %y prty other thn $eneration Company or a
istri'ution tility in the frnchise re of istri'ution tility usin' the wires of
such istri'ution tility.
S+spens#$n N$#"e' A notice issued %y the Market Operator under cluse 3.1?.@.
S-sem B,a".$+. The %sence of $olt'e on ll or si'nificnt prt of the
transmission system or within re'ion followin' mor supply disruption fter one
or more *eneratin* systems nd si'nificnt num%er of customers.
S-sem $pe!a$!' The prty identified s the System operator pursunt to the $rid
Code which is the prty responsi%le for *eneration dispatc the pro$ision of ancillary
services nd opertion nd control to ensure sfety power 4ulity st%ility
reli%ility nd security of the 'rid.
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S-sem Se"+!#-' The sfe schedulin' opertion nd control of the po#er system on
continuous %sis in ccordnce with the system security nd reli%ility 'uidelines
est%lished under the $rid Code.
S-sem Se"+!#- and Re,#a*#,#- 6+#de,#nes. The stndrds 'o$ernin' system security
nd reli%ility of the po#er system which my include %ut re not limited to
stndrds for the fre4uency of the po#er system in opertion nd ancillary services
includin' 'uidelines for ssessin' re4uirements nd utili5tion de$eloped %y the
Market Operator nd System operator s ccordnce with the $rid Code.
Ta!%e L$ad#n% Le5e,. The loadin* level determined s n end:of:period tr'et for
scheduled 'enertor or lod %y the Market Operator s ccordnce with cluse 3..1e.
T#me Samp' The mens of identifyin' the time nd dte t which dt is trnsmitted
or recei$ed.
T#mea*,e' The timeta'le prepred %y the Market Operator for opertion of the spot
market in ccordnce with cluse 3.>.2.
T!ad#n% Am$+n. The mount to %e pid %y or pid to %radin* Participant or
&et#ork Service Provider in respect of ener*y! reserve line rentls or transmission
ri*ts clculted in ccordnce with cluses 3.13.@ 3.13. 3.13.9 3.13.10 or
3.13.1> respecti$ely.
T!ad#n% Da-' The 2>:hour period commencin' ccordin' to the %imeta'le. %radin*
interval. A 1:hour period commencin' on the hour.
T!ad#n% L#m#' In respect of %radin* Participant t ny time mens the lst trdin'
limit set %y the Market Operator for the %radin* Participant under cluse 3.1?..
T!ad#n% Pa!#"#pan. A Customer or $eneration Company.
T!ansm#ss#$n L#ne. #ens po#er line tht is prt of transmission net#ork.
T!ansm#ss#$n Ne1$!.. A net#ork operatin* t nominl $olt'es of 220 L nd %o$e
plus<
ny prt or networ opertin' t nominl $olt'es %etween 66L nd
220L tht opertes in prllel to nd pro$ides support to the hi'her
$olt'e transmission net#ork
% ny prt of networ opertin' t nominl $olt'es %etween 66 L nd
220L tht does not operte in prllel to nd pro$ide support to the
hi'her $olt'e transmission net#ork %ut is deemed %y the $overnment
to %e prt of the transmission net#ork.
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T!ansm#ss#$n R#%h. The ri'ht to finncil compenstion %sed on differences %etween
nodal ener*y prices t different market tradin* nodes s notified under cluse 3.13.2
nd settled in ccordnce with cluse 3.13.1?.
T!ansm#ss#$n S-sem. The transmission net#ork to'ether with the connection ssets
ssocited with the transmission net#ork which is connected to nother transmission
or distri'ution system.
T-pe. ,s the sme menin' s reserve /acility cate*ory.
Un!es!a#ned L$ad' #ens the unscheduled lod which mi'ht h$e %een eBpected %y
the Market Operator t ny prticulr point in time with no load seddin* nd
ssumin' sceduled loads normlly off.
7#a, L$ads. -ods defined s sensiti$e %y the %radin* Participants.
7$LL' ,s the sme menin' s +odl Lo--.
7$,a%e' The electronic force or electric potentil %etween two points tht 'i$e rise to
the flow of electricity.
Wee. Ahead P!$4e"#$ns. The proections performed for the #eek+aead market
ori,on %y the Market Operator s ccordnce with cluse 3.@.1.
WESM mem*e!. A person who is re'istered with the Market Operator in ccordnce
with cluses 2.3 nd 2.>.
WESM Me!# O!de! Ta*,e (WMOT) : for purposes of disptch protocol under the !E"#
defined %sed on the 7rid (ode with n ddition of unscheduled 'enertin' units
rrn'ed %sed on price offersC the !#*T is %sed on sin'le mret. As amended *-
DOE DC N$'92:9:99 daed 2 O"$*e! 92)
W$!.#n% Da-' A dy eBcludin' "turdys nd "undys on which %ns nd finncil
institutions re open in the city or municiplity where the principl offices of the
#ret *pertor re locted. (Added pe! DOE DC N$' 90:90:9993 daed Ma!"h
90? and /+!he! amended pe! DOE DC N$' 90:9:993)
Wh$,esa,e E,e"!#"#- Spot market (WESM)' The electricity mret est%lished %y
the OE in ccordnce with the Act.
WESM Pa!#"#pans. All $eneration Companies! istri'ution tilities "uppliers
A''re'tors End:users the %RA&SCO or its uyer or (oncessionire IPP
Administrtors nd other entities uthori5ed %y the ERCto prticipte in the WESM in
ccordnce with the Act.
WESM R+,es' The detiled rules tht 'o$ern the dministrtion nd opertion of the
WESM.@$na, Ene!%- P!#"e. An e3+ante or e3+post ,onal ener*y price.
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@$na, Rese!5e P!#"e. The price for reserve in prticulr supply 5one nd tradin*
interval determined in ccordnce with cluse 3.10.10.
@$na, Rese!5e Se,emen +an#-. The mount of reser$e deemed to h$e %een
supplied %y reser$e supplier in prticulr reser$e re'ion nd tradin* interval
determined in ccordnce with cluse 3.13.>.
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APPENDICES
APPENDI A
APPENDICES TO CHAPTER 0
Append# A' In/$!ma#$n $ *e S+pp,#ed 1#h O//e!s $ S+pp,- and $
B+- E,e"!#"#-
A' 6ene!a#$n O//e!
7enertion offers<
"hll include the loction of the connection point nd rele$nt market net#ork
nodeC
% "hll include the pricin* ,one of the connection point!
c #y include up to ten 10 ener*y o//er %locs per ''re'te unit. The
mBimum com%ined cpcity of *eneration nd reserve o//ers must not %e less
thn the mBimum $il%le cpcity of the 'enertor. (As amended *- DOE
DC N$' 998:9:999 daed 9 an+a!- 998)
d "hll %e for minimum %loc si5e of one 1 #!C (As amended *- DOE DC N$'
90:90:9992 daed Ma!"h 90)
e "hll h$e monotoniclly incresin' prices strtin' from ,ero *eneration
f #y include ne'ti$e pricesC
' "hll include mBimum upDdown ramp rates
h "hll include $lidity period of offers e.'. $lid for specified period or $lid
until offer is re$ised.C nd
i "hll include n opertin' rn'e upper nd lower limit.
A' Rese!5e O//e!s
Re'ultion reser$e offers from 7enertors shll consist of<
A mBimum response le$el for the rele$nt reser$e cte'ory #!C
% A minimum nd mBimum ener*y dispatc le$el #! t which ny A7( reser$e
response will %e $il%leC
c =p to 3 reser$e offer %locs per ''re'te unit #!D%locCd A minimum %loc si5e of one 1 #!C
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e #onotoniclly incresin' prices strtin' from 5ero for the first offer %loc
which shll correspond to the mndtory reserve cp%ility re4uired from tht
$eneration Company under its connection 'reementC nd
f "hll include $lidity period of reserve o//ersC nd
(ontin'ency reserve o//ers from $eneration Companies shll consist of<
A mBimum response le$el for the rele$nt reserve cate*ory #!C
% A minimum ener*y dispatc le$el #! t which tht mBimum reserve
response will %e $il%leC
c =p to 3 reserve offer %locs per ''re'te unit #!D%locC
d A minimum %loc si5e of one 1 #!C(As amended *- DOE DC N$' 90:90:
9992 daed Ma!"h 90)
e #onotoniclly incresin' prices strtin' from 5ero to the first offer %loc which
shll correspond to the mndtory reserve cp%ility re4uired from tht
$eneration Company under its connection 'reement.
f "hll include $lidity period of reserve o//ers nd
' *pertin' rn'e upper nd lower limit
(ontin'ency reserve o//ers from (ustomers shll consist of< (As amended *- DOE DC
N$' 90:90:9992 daed Ma!"h 90)
h A mBimum response le$el for the rele$nt reserve cate*ory #!C
i A mBimum proportion of the forecstDsceduled load which my%e
interrupted
=p to 3 reserve o//er %locs #!D%loc
A minimum %loc si5e of one 1 #!C
l #onotoniclly incresin' pricesC nd
m "hll include $lidity period of reser$e offers.
A'0 Demand B#ds
&emnd %ids<
"hll h$e up to 10 %id %locs per te:off pointC
% "hll h$e minimum %loc si5e of one 1 #!C
c "hll h$e monotoniclly decresin' pricesC
d "hll strt from 5ero offteC
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e #y h$e %id prices tht re ne'ti$eC nd
f "hll include $lidity period of %ids.
Append# A' In/$!ma#$n $ *e S+pp,#ed *- Ne1$!. Se!5#"e P!$5#de!
Ne1$!. Cha!a"e!#s#"s
#ost of these informtion will %e supplied s stndin' dt which will %e updted only
s re4uired for tradin* interval.
&et#ork Service Providers dt su%mitted re to consist of<
Topolo'y of the market net#ork model
% Impednces of lines nd other system componentsC
c -oss functions for ech line nd system component eBpressed s 4udrtic
functionC nd
d -imits on lines nd other system components includin'<
1 Therml limits for norml opertionsC
2 Therml o$erlod limits of specific durtionC nd
3 (ontin'ency limits.
e -imits on the opertion of ,L&( e4uipment
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APPENDI B
APPENDICES TO CHAPTER 2
Append# B' Mee!#n% Re%#se!
B' 6ene!a,
The meterin* re*ister forms prt of the meterin* data'ase nd holds meterin*
informtion reltin' to meterin* installations.
The purpose of the meterin* re*ister is to fcilitte<1 The re'istrtion of connection points meterin* points nd ffected
PrticipntsC
2 The $erifiction of complince with the WESM RulesC nd
3 The udit flow of chn'es to the re'istered informtion.
B' Mee!#n% !e%#se! #n/$!ma#$n
#eterin' informtion to %e contined in the meterin* re*ister should include
such informtion s the Market Operator considers reson%ly necessry nd
%y wy of eBmple my include the followin'<
Meter identifiction<
1 Meterin* installation identifiction num%erC nd
2 Identifiction of e4uipment relted to nd ssocited with the
meterin* installation.
% -oction in spot market
1 Trnsmission or distri%ution connection point identifictionC nd
2 &etils of the site t which the meter is locted includin' the
owner of the site.
c Associted prties<
1 Meterin* data 'ency identifictionC
2 Meterin* Services Provider identifictionC
3 #ret %radin* Participant settlin' ccount identifictionC
> 5ocal Supplier identifictionC nd
? Rele$nt &et#ork Service Provider identifiction.
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d &t $lidtion nd su%stitution processes 'reed %etween
ffected Prticipnts includin'<
2 Al'orithmsC
3 &t comprison techni4ues
> Processin' nd lrmsC nd
? Alternte dt sources.
Append# B' Insa,,a#$n
Ech installation data'ase shll contin the followin' instlltion informtion
nd such other instlltion informtion s specified %y the Market Operator .
Meterin* Point reference detils includin'
1 -oction nd reference detils e.'. drwin' num%ersC
2 "ite identifiction nmesC
3 "tndrd e4uipment identifiction num%erin' "EI+ in
ccordnce with the $rid Code and istri'ution Code.
> &etils of a//ected Participants ssocited with the #eterin'
pointC nd
? The Meterin* Services Provider
% The identify nd chrcteristics of meterin' e4uipments includin'<
2 "eril num%ersC
3 Meterin* installation identifiction nmeC
> Meterin* installation types nd modelsC
? (urrent test nd cli%rtion pro'rmme detils test results nd
references to test certifictes s re4uired under the $rid Code
and istri'ution Code
6 (li%rtion t%les where pplied to chie$e meterin' instlltion
ccurcy re re4uired under the 7rid (ode nd &istri%ution (odeC
nd
@ &t re'ister codin' detils.
c &t communiction detils includin'C
Telephone num%ers or fre4uency detils in cse of telemetric
e4uipment for ccess to dt.
% (ommuniction e4uipment type nd seril num%ers.
c (ommuniction protocol detils or referencesC
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d &t con$ersion detilsC
e =ser identifiction nd ccess ri'hts nd
f N!riteO pssword to %e contined in hidden or protected
fields.
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APPENDI C
APPENDICES TO CHAPTER ;
Ba".%!$+nd N$e $
Append# C : C,ass#/#"a#$n $/ R+,es
The followin' c'round +ote is included for informtion purposes only : it
does not form prt of the WESM Rules. It is intended to pro$ide 'enerl
indiction of the %sis on which the clssifiction of the WESM Rules hs %een
mde nd 'uide only for the clssifiction of future new Rules.
The A"
The Act pro$ides for the ERC to h$e responsi%ility for<
The enforcement of the WESM Rules nd s conse4uenceC
% The imposition of fines nd penlties for %reches of the WESM Rules.
To fcilitte its responsi%ility in this re'rd the WESM Rules h$e %een
clssified into three cte'ories s follows<
Administrti$e penlty pro$isionsC
% (onduct pro$isionsC
c Re'ultory pro$isions.
Althou'h the initil clssifiction of the WESM Rules is included s prt of this
c'round +ote for informtion purposes only to pro$ide n indiction of the
nture of pro$isions which re liely to %e clssified into ech cte'ory it is
importnt to note tht re'ultions mde under the Act my %e mde which
lter this initil clssifiction. The clssifiction of the WESM Rules is $ery
much policy issue which my in$ol$e consider%le consulttion. ,owe$er
this clssifiction my ssist in tht process or %e dopted if tht process does
not proceed.
The t%le %elow summri5es the informtion contined in this c'round +ote.
C,ass#/#"a#$n $/ R+,es Wh$ "an *!#n% a"#$n Na+!e $/ san"#$n
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(#mp$sed *- ERC)
Administrti$e Penlty
Pro$isions
ER( Penlties
Re'ultory Pro$isions ER( Inunction declrtion
(onduct Pro$isions Any person
&m'es inunction
declrtion
Provisions Requiring Classification
Those pro$isions of the WESM Rules which impose n o%li'tion on person h$e %een
clssified. !here pro$ision of the WESM Rules llows discretion on the rele$nt
person s to whether or not to do somethin' tht pro$ision hs not %een clssifieds it will not %e %rech of tht pro$ision if the person decides not to perform in
ccordnce with tht pro$ision.
Administrative Penalty Provisions
Administrti$e penlty pro$isions re pro$isions the %rech of which is re'rded s
most serious. 7enerlly they re pro$isions which shll %e complied with in order to
ensure tht the spot market nd the WESM Rules wor properly.
Administrti$e penlty pro$isions re enforce%le only %y the ERC who my %rin'
proceedin's for the le$y of dministrti$e penlty i.e. fine for n offence pro$%le
on the %lnce of pro%%ilities. Any person cn d$ise the ERC of n lle'ed %rech of
dministrti$e penlty pro$ision lthou'h it is up to the ERC to te the mtter
further. (luse @.2.2 of the WESM Rules lso pro$ides mechnism %y which the
Market Operator on its own ccount or on the d$ice of WESM mem'er cn decide
to %rin' n lle'ed %rech to the ttention of the ERC.
Conduct Provisions
A conduct pro$ision is pro$ision in$ol$in' n o%li'tion to %e performed %y person
where the conse4uences of %rech re less serious thn for dministrti$e penlty
pro$ision. #ost pro$isions of the WESM Rules tht re not of n dministrti$e nture
or re to %e performed %y the Market Operator will %e clssified s conduct
pro$isions. ,owe$er 'enerlly n o%li'tion to py money includin' one imposed on
the Market Operator will %e clssified s conduct pro$ision.
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(onduct pro$isions re enforce%le %y ny person %y %rin'in' inunction proceedin's.
In ddition nyone who suffers loss or dm'e %y conduct in contr$ention of
conduct pro$ision will lso h$e sttutory ri'ht to reco$er the loss or dm'e in
ci$il ction 'inst the person whose %rech of the WESM Rules cused it. ,owe$er
this ri'ht is su%ect to the dispute resolution procedures in cluse @.3 which re4uire
Prticipnt to te ny ction reltin' to the WESM Rules in ccordnce with those
top related