fr Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue Pasig City F n OFFICE rc C It h Ufa IN THE MATTER OF THE 15TH 6y J2 1 c O n A APPLICATION FOR THE RECOVERY OF THE INCREMENTAL COSTS ON T MAY O 2 NuIL FOREIGN CURRENCY EXCHANGE RATE TIME 2 iP P FLUCTUATIONS UNDER THE 0 INCREMENTAL CURRENCY EXCHANGE CONTROL 440 z 93 I RATE ADJUSTMENT 15 ICERA WITH PRAYER FOR PROVISIONAL AUTHORITY ERC CASE NO 2010 067 RC IN THE MATTER OF THE 16 d APPLICATION FOR THE RECOVERY OF THE INCREMENTAL COSTS ON FOREIGN CURRENCY EXCHANGE RATE FLUCTUATIONS UNDER THE D O C K E T E D INCREMENTAL CURRENCY EXCHANGE Date DE 2 RATE ADJUSTMENT 16 ICERA WITH C v PRAYER FOR PROVISIONAL AUTHORITY ERC CASE NO 2010 073 RC NATIONAL POWER CORPORATION NPC AND POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION PSALM Applicants x x DECISION Before the Commission for resolution are the applications filed by the National Power Corporation NPC and the Power Sector Assets and Liabilities Management Corporation PSALM for the recovery of their incremental costs on foreign currency exchange rate fluctuations under the Incremental Currency Exchange Rate Adjustment 15 and 16 ICERA with prayer for provisional authority l 5 L
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T MAY O 2 NuIL TIME 2 iP P EXCHANGE CONTROL 440 93 I … · Republic of the Philippines ... Infrastructure Fees for Bakun Hydroelectric Power Plant and San Roque Multipurpose Project
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fr
Republic of the PhilippinesENERGY REGULATORY COMMISSION
San Miguel Avenue Pasig CityF n
OFFICE rc CIt h Ufa
IN THE MATTER OF THE 15TH 6y J21cOnAAPPLICATION FOR THE RECOVERY OFTHE INCREMENTAL COSTS ON T MAY O 2 NuILFOREIGN CURRENCY EXCHANGE RATE TIME 2 iP PFLUCTUATIONS UNDER THE
0INCREMENTAL CURRENCY EXCHANGE CONTROL 440 z 93 IRATE ADJUSTMENT 15 ICERA WITHPRAYER FOR PROVISIONAL
AUTHORITYERC CASE NO 2010067 RC
IN THE MATTER OF THE 16d APPLICATION FOR THE RECOVERY OF
THE INCREMENTAL COSTS ON
FOREIGN CURRENCY EXCHANGE RATEFLUCTUATIONS UNDER THE D O C K E T E D
INCREMENTAL CURRENCY EXCHANGE Date DE2RATE ADJUSTMENT 16 ICERA WITH Cv
PRAYER FOR PROVISIONAL
AUTHORITY
ERC CASE NO 2010073 RC
NATIONAL POWER CORPORATION
NPC AND POWER SECTOR ASSETSAND LIABILITIES MANAGEMENT
CORPORATION PSALMApplicants
x x
DECISION
Before the Commission for resolution are the applications filed by the
National Power Corporation NPC and the Power Sector Assets and Liabilities
Management Corporation PSALM for the recovery of their incremental costs on
foreign currency exchange rate fluctuations under the Incremental Currency
Exchange Rate Adjustment 15 and 16 ICERA with prayer for provisional
authority
l 5L
ERC CASE NOS 2010 067 RC and 2010073 RC
DECISION March 26 2012Page 2 of 24
In the said applications NPC and PSALM alleged among others the
following
1 NPC filed the instant applications in its capacity as theimplementing agency for the unbundled generation rates as statedin the Orders of the Commission dated September 6 and 20 2002in ERC Case No 2001 901 revised generation charges in theOrders dated September 3 2004 and April 13 2005 in ERC CaseNo 2004178 provisionally approved generation charges in theOrders dated February 16 2009 and March 23 2009 for theLuzonMindanao and Visayas Grids respectively under ERC CaseNo 2009004 RC and the provisionally approved deferred chargesin ERC Order dated December 15 2008 under ERC Case Nos
2008 043 RC and 2008054 RC and the Order dated January 192009 under ERC Case No 2008064 RC PSALM filed the same inits capacity as transferee owner and administrator of the
generating assets of NPC pursuant to Section 49 of Republic ActNo 9136 RA 9136 otherwise known as the Electric PowerIndustry Reform Act or EPIRA
2 In its Order dated February 24 2003 in ERC Case No 200344 theCommission issued and adopted the Implementing Rules for theICERA providing among others the required mechanisms for therecoveryrefund of the deferred incremental costssavings onforeign currency exchange rate fluctuations and carrying charges
3 The instant applications cover the billing period July 2009 toDecember 2009 and January 2010 to April 2010 They have fullycomplied with the ICERAs monthly reportorial requirements tosupport the calculated allowable costs covering the billing periodas evidenced by the submitted reportscompliances duly received
4 by the Commission
4 They propose to recoverrefund the Deferred AccountingAdjustments DAAs corresponding to additional costs or savingsfrom foreign exchange fluctuations in the settlement of DebtService principal repayment portion and Operating ExpenseOPEX and pertaining to the difference between actual andallowable Capacity and Infrastructure Fees for BuildOperateTransfer BOT plants and the billed amounts under the basicgeneration charge as well as the corresponding carrying chargesfor the billing periods July 2009 to December 2009 and January2010 to April 2010 for the Luzon Visayas and Mindanao Grids
5 Pursuant to the Commissions directive in its Order datedNovember 23 2005 approval of 4 ICERA DAA the proposedICERA DAA charges are calculated on a per Grid basis
6 On February ie 2009 and March 23 2009 the Commission issuedan Order grantin I provisional authority PA to
11141implement new is generation rates of PhP43648kWh for
V
J
ERC CASE NOS 2010067 RC and 2010073 RCDECISIONMarch 26 2012
Page 3 of 24
Luzon PhP37255kWh for Visayas and PhP28177kWh forMindanao The PA authorized NPC PSALM to implement the newbase rates corresponding to the revised revenue requirementstarting the billing month of March 2009
7 Based on the components of the new revenue requirement andenergy sales in the February 16 2009 Order the new base ratesfor capacity fees were deduced which then served as the basis inthe DAA calculations for the Luzon and Mindanao grids
As established in the CommissionsOrder in ERC Case No 20084 019 RM dated December 14 2009 and to be consistent with the
approval of their previous ICERA applications in their debt serviceDAA calculation they used the BSP FOREX Rate ofPhP440494US100while the Yen to Peso rate was pegged atPhP04096JPY100
8 For foreigndominated operating expenses the DAA calculationsconsidered a new base rate on Calendar Year CY 2007 weightedaverage foreign exchange rate PhP417430US100consistentwith the CommissionsOrder in ERC Case No 2008019 RM
9 They used a base foreign exchange rate of PhP440494 for the USdollar and PhP04096 for the Japan Yen in the calculation of thedebt service DAA
10 The calculation for the recoveryrefund of Capacity andInfrastructure Fees for Bakun Hydroelectric Power Plant and SanRoque Multipurpose Project was pegged at PhP38299kWh asfollows
101 Bakun Hydro Electric Power Plant
The capacity fee was calculated based on the CommissionsDecision in ERC Case No 2001 813 dated August 24 2006which provides that any amount in excess of thePhP38299kWh the rate considered by NPC as capacity fee forBakun in ERC Case No 2004178 shall be part of the energycharge and shall be considered as allowable cost under theGeneration Rate Adjustment Mechanism GRAM
It should be noted that the capacity fee component of Bakun inthe provisionally approved basic generation charge under ERCCase No 2009004 excludes the 0 M costs Any amount inexcess of the PhP38299 plus the 0 M costs were recoveredunder the GRAM
102 San Roque Multipurpose Project
The capacity fee for San Roque was calculated based on ERCCase No 2001 816 which pegged the power purchase powercost of San Roque Multipurpose Project at the effective rate ofthe Luzon Grid or the purchased power cost under the
4agreement hichever is lower Any amount in excess of thePhP38299 h which is the rate considered by NPC as
t
ERC CASE NOS 2010067 RC and 2010073 RC
DECISIONMarch 26 2012Page 4 of 24
capacity fee for the San Roque Power Plant in ERC Case No2004178 shall be part of the energy charge which shall beconsidered as allowable cost under the GRAM
11 The instant applications likewise include the recoveryrefund ofthe allowable capacity costs of Kalayaan Unit Nos 3 and 4 andMindanao Coal STEAG based on the CommissionsDecision inERC Case No 2007159 dated November 17 2008 and ERC Case
No 2001 811 dated February 2 2009 respectively
12 On the calculation of the DAA for capacity fees for the test periodJuly 2009 to December 2009 and covering the billing period May2009 to October 2009 the DAA refers to the difference between theallowable capacity fees and the amounts recovered through thebasic generation rates per ERC Case No 2009004
13 The instant applications do not include any unrecovered or unrefunded balance from the previous ICERA applicationsconsidering that the same are still pending resolution by theCommission and Capacity Fee and Infrastructure Fee after theeffective date of transfer of the contracted capacities under thefollowing IPP contracts to its IPP Administrator IPPA
IPP Effective Date
Pagbilao October 1 2009Sual November62009
San Roque HEP January 26 2010Bakun Luzon Hydro February 23 2010
14 Considering the foregoing and pursuant to all the relevantDecisions and Orders issued by the Commission they havecalculated the total deferred costs for recovery under the instantapplications comprising of deferred debt service OPEX andcapacity fees for BOT plants and the corresponding carryingcharges for the Luzon Visayas and Mindanao grids covering thetest period July 2009 to December 2009 and January 2010 to April2010 Shown below is the summary of the total deferred FOREXcosts
Total Deferred FOREX Costs in Pesos
Test Period July 2009 to December 2009in Pesos LUZON VISAYAS MINDANAO
TOTAL DAA 8098211049 211823633 180766622
Test Period January 2010 to April 2010In PhP LUZON VISAYAS MINDANAO
TOTAL DAA 39019888Q 65608722 117277643l
1 I
ERC CASE NOS 2010067 RC and 2010 073 RC
DECISIONMarch 26 2012
Page 5 of 24
15 The applications seek the Commissions approval for therecoveryrefund of the above stated total current deferred FOREXcosts for the test period July 2009 to December 2009 and January42010 to April 2010 through the imposition of the following proposedDAA charges
Proposed 15 ICERA DAA Charges P kWh
in PhPkWh LUZON VISAYAS MINDANAO
TOTAL DAA 06361 00704 00399
Proposed 16 ICERA DAA Charges PkWh
In PhPkWh LUZON VISAYAS MINDANAO
TOTAL DAA 00461 00326 00383
16 In accordance with ERC Resolution No 20 Series of 2005 theValue Added Tax VAT to be imposed on the consumers will bebased on gross receipts or the total amount paid for electricity soldfrom non renewable energy portion of the generation mixcorresponding to the billing period under recoveryrefund
17 They likewise seek the approval of the Commission to recover theabove stated deferred costs over the following recovery periods
Proposed Spread No of Months 15 ICERALuzon Visayas Mindanao
6 6 6
Proposed Spread No of Months 16 ICERALuzon Visayas Mindanao
4 4 4
18 As authorized under the Implementing Rules of the ICERA theyutilized the carrying charge interest rates as shown below
I
ERC CASE NOS 2010 067 RC and 2010 073 RCDECISION March 26 2012Page 6 of 24
Allowable Carrying Charge Interest Rates
Prevailing 91 Authorized AllowableBilling Period
day TBill Ratett Allowance
12 Rate
July 2009 41730 300 71730
August 2009 39480 300 69480
September 2009 39920 300 69920
October 2009 38730 300 68730
November 2009 38090 300 68090
December 2009 38870 300 68870
January 2010 39060 300 69060
February 2010 39280 300 69280
March 2010 38800 300 68800
April 2010 38430 300 68430
1 Source Bangko Sentra ng Pilipinas2 As authorized in the ICERA Implementing Rules
t 19 The proposed ICERA DAA is fair and reasonable as it allows therecovery of deferred costs consistent with the principles of a freeand competitive electricity market as provided under R A No9136
20 They pray for the issuance of a provisional authority to implementrates for the recoveryrefund of the following
a DAA under these applications and
b The estimated DAA balances under the 12 to 15 ICERA forLuzon and the 9 to 15th ICERA for the Visayas andMindanao grids in order to mitigate the accumulated DAA tocustomers and improve NPCs financial standing
21 They further pray for the early resolution of the ICERA applicationsfiled before the Commission in view of the required Final Filingunder GRAMICERA and Article VI of ERC Resolution No 19 asamended by ERC Resolution No 25 Series of 2009 The saidResolution requires that an application for recovery of all unfiledand unverified DAAs shall be submitted within one hundred twenty120 days from effectivity of the Rules or on or before June 272010
22 To date they are implementing the 11 ICERA charges in Luzonpending resolution of the 12th to 14th ICERA applications For theVisayas they are implementing the 8 ICERA charges pendingresolution by the Commission of the 9 to 15 ICERA applicationsThe 8 ICERA DAA for the Mindanao grid was fullyrecovered refunded hence starting the billing month July 262009 to August 25 2009 no ICERA charge was imposed on theelectricity consum r in the Mindanao grid
n i
ERC CASE NOS 2010067 RC and 2010073 RCDECISION March 26 2012
Page 7 of 24
23 Consistent with ERC Case No 200344 adopting the ImplementingRules for the Recovery of Incremental Currency ExchangeRecovery Adjustments ICERA and Section 4e Rule 3 of the IRRof the EPIRA the following deferred costs refund recovery periodand proposed Deferred Accounting Adjustment DAA chargescovering the current DM be approved
15 ICERA
Particulars Luzon Visayas Mindanao
Total DAA for Recovery in PhP 8098211049 211823633 180766622
Total DAA Charge in PhPkWh 06361 00704 00399
Proposed Recovery Period Months 6 6 6
16 ICERA
Particulars Luzon Visayas Mindanao
Total DAA for Recovery in PhP 390198880 65608722 117277643
Total DAA Charge On PhPkWh 00461 00326 00383
Proposed Recovery Period Months 4 4 4
24 The instant applications seek to obtain the approval for therecoveryrefund of the total deferred FOREX fluctuation costs andthe balance of previously approved ICERA DAAs through theimposition of the proposed ICERA DM charges in PhPkWh and
25 They pray that the proposed DAA charges for Luzon Visayas andMindanao Grids be approved by the Commission
Having found the said applications sufficient in form and in substance with
the required fees having been paid several Orders and Notices of Public
Hearings were issued setting the instant applications for jurisdictional hearings
expository presentations pretrial conferences and evidentiary hearings
4
The Office of the Solicitor General OSG the Commission on Audit
COA and the Committees on Energy of both Houses of Congress were
furnished with copies of the Orders and the Notice of Public Hearings and were
requested to have their respective duly authorized representatives present at the
aforesaid initial hearings
ERC CASE NOS 2010 067 RC and 2010073 RCDECISION March 26 2012Page 8 of 24
Likewise the Offices of the Mayors of Quezon City Cebu City Davao
City and the Provincial Governors in Luzon Visayas and Mindanao where NPC
principally operates were furnished with copies of the Orders and Notices of
Public Hearings for the appropriate posting thereof on their respective bulletin
boards
PROCEEDINGS
A ERC Case No 2010067 RC
The Commission noted the following submissions made by the parties
1 The The Petition for Intervention filed on June 22 2010 by the4 National Association of Electricity Consumers for Reforms Inc
NASECORE
2 The Petition for Intervention filed on July 8 2010 by the Federationof Village Association FOVA
3 The Motion for Leave to Intervene Petition for Intervention and
Opposition filed on July 16 2010 by the Philippine AssociatedSmelting and Refining Corporation PASAR
4 The PreTrial Brief filed on December 2 2010 by NPC and PSALM
5 The Petition for Intervention with Entry of Appearance and PreTrial Brief filed on December 2 2010 by Manila Electric CompanyMERALCO
6 The Petition for Intervention and Pre Trial Brief filed on December
2 2010 by Masinloc Power Partners Company Limited MPPCL
7 The Petition for Intervention and Pre Trial Brief filed on December
2 2010 by AP Renewables Inc APRI and
8 The PreTrial Brief filed on December 28 2010 by PASAR
1
ERC CASE NOS 2010 067 RC and 2010073 RCDECISIONMarch 26 2012
Page 9 of 24
Luzon Hearing
During the December 8 2010 initial hearing NPC PSALM MERALCO
MPPCL and APRI appeared NASECORE and FOVA failed to appear despite
due notice
At the said hearing NPC and PSALM presented their proofs of
compliance with the Commissionsposting and publication of notice requirements
which were duly marked as Exhibits A to F1 inclusive
PSALM moved that an Order of general default be issued against all
intervenors who failed to appear at the said hearing Said motion was granted
Thereafter NPC and PSALM made an expository presentation of their
application In the course thereof the intervenors propounded clarificatory
questions NPC and PSALM were directed to submit various documents
At the continuation of the hearing on December 152010 the Commission
conducted a pretrial conference where the parties stipulated on facts and issues
relative to the instant application
NPC and PSALM presented their only witness Mr Ferdinand A Florendo
Manager of the Liability Management Department of PSALM who testified on the
following matters a debt service and operating expense b Capacity andd
Infrastructure Fees for BOT plants and c calculation of the corresponding
carrying charges In the course of his direct examination several documents
were presented and marked as hibits
1
ERC CASE NOS 2010067 RC and 2010073 RCDECISIONMarch 26 2012Page 10 of 24
The direct examination having been terminated the intervenors
manifested that they would just submit their respective written interrogatories in
lieu of their cross examinations NPC and PSALM were directed to file their
answers thereon All intervenors were directed to file their respective
manifestations informing the Commission of their intentions to conduct further
cross examinations on the said witness for purposes of clarifying his answers on
the written interrogatories
Visayas Hearing
During the January 12 2011 hearing only NPC PSALM and PASAR
appeared
At the said hearing NPC and PSALM presented their proofs of
compliance with the Commissionsposting and publication of notice requirements
which were duly marked as Exhibits A to F1 inclusive PASAR interposed no
objection to the said submissions The Commission provisionally accepted the
compliance submitted by NPC and PSALM subject to the submission of the
original copies of the Certificates of Posting issued by several local government
units LGUs Thereafter they made an expository presentation of their
application and moved that an Order of general default be issued against all
intervenors who failed to appear at the said hearing Said motion was granted
The Commission conducted a pre trial conference where the parties
stipulated on facts and issues r ative to the instant application
9
ERC CASE NOS 2010067 RC and 2010 073 RC
DECISION March 26 2012
Page 11 of 24
After the pre trial hearing NPC and PSALM presented their only witness
Mr Florendo who testified in support of the instant application In the course of
d his direct examination several documents were presented and marked as
exhibits
The direct examination of the said witness having been terminated
PASAR moved that it be allowed to file its written interrogatories in lieu of its
cross examination Said motion was granted NPC and PSALM were directed to
file their answers thereon All intervenors were directed to file their respective
manifestations informing the Commission of their intention to conduct cross
examinations on the said witness and to present their evidenceinchief
Mindanao Hearing
During the January 19 2011 hearing only NPC and PSALM appeared
and presented their proofs of compliance with the Commissionsposting and
publication of notice requirements which were duly marked as Exhibits A to F
1 inclusive The Commission dispensed with the conduct of a pretrial
conference and expository presentation in the absence of intervenors and
oppositors
NPC and PSALM presented their only witness Mr Florendo who testified
in support of the instant application In the course of his direct examination
several documents were presented and marked as exhibits4
611
ERC CASE NOS 2010067 RC and 2010073 RCDECISIONMarch 26 2012Page 12 of 24
The direct examination of the said witness having been terminated NPC
and PSALM were directed to file their formal offer of evidence
Meantime the Commission noted the following submissions made by the
parties
1 The Compliance with Request for Marking of AdditionalDocumentary Evidence filed on December 30 2010 by NPC andPSALM
2 The Motion for Extension of Time filed on December 30 2010 byMERALCO
3 The Interrogatories to Applicant filed on December 30 2010 byAPRI
4 The Compliance filed on January 7 2011 by NPC and PSALM
5 The Second Motion for Extension of Time and WrittenInterrogatories filed on January 7 and 14 2011 respectively byMERALCO
6 The Reply Re Written Cross Examination Questions withAffidavit Compliance and Motion for Extension of Time filed onJanuary 18 and 24 2010 respectively by NPC and PSALM
7 The Written Interrogatories filed on February 3 2011 by PASAR
8 The Reply Re MERALCOsWritten Interrogatories with AffidavitCompliance Reply Re MERALCOsWritten Interrogatories withAffidavit Reply Re Written Interrogatories of AP RenewablesInc with Affidavit In Response to Written Interrogatories of APRenewables Inc and Formal Offer of Evidence filed on February4 11 and 16 2011 and September 22 2011 respectively by NPCand PSALM and
9 The Opposition filed on August 31 2011 by Apila ng Bayan AB
B ERC Casa No 2010073 RC
The Commission noted the following submissions made by the parties
1 The PreTrial Brief filed on December 2 2010 by NPC and PSALM
rf
ERC CASE NOS 2010067 RC and 2010 073 RCDECISIONMarch 26 2012Page 13 of 24
2 The Petition for Intervention and PreTrial Brief filed on December2 2010 by APRI
3 The Petition for Intervention with Entry of Appearance and PreTrialBrief filed on December 2 2010 by MERALCO
4 The Petition for Intervention and PreTrial Brief filed on December7 2010 by MPPCL and
a
5 The Petition for Intervention and PreTrial Brief filed on December 7and 14 2010 respectively by San Miguel Energy CorporationSMEC
Luzon Hearing
During the December 8 2010 initial hearing NPC PSALM MERALCO
MPPCL APRI and SMEC appeared
At the said hearing NPC and PSALM presented their proofs of
compliance with the Commissionsposting and publication of notice requirements
which were duly marked as Exhibits A to F1 inclusive
PSALM moved that an Order of general default be issued against all
intervenors who failed to appear at the said hearing Said motion was granted
Thereafter NPC and PSALM made an expository presentation of their
application In the course thereof the intervenors propounded clarificatory
questions NPC and PSALM were directed to submit various documents
At the continuation of the hearing on December 15 2010 the Commission
conducted a pre trial conference where the parties stipulated on facts and issues
relative to the instant application
i
I Vi
ERC CASE NOS 2010 067 RC and 2010073 RCDECISIONMarch 26 2012Page 14 of 24
NPC and PSALM presented their only witness Mr Florendo who testified
on the following matters a debt service and operating expense b Capacity and
Infrastructure Fees for BOT plants and c calculation of the corresponding
carrying charges In the course of his direct examination several documents
were presented and marked as exhibits
The direct examination having been terminated the intervenors
manifested that they would just submit their respective written interrogatories in
lieu of their cross examinations NPC and PSALM were directed to file their
answers thereon All intervenors were directed to file their respective
manifestations informing the Commission of their intentions to conduct further
cross examinations on the said witness for purposes of clarifying his answers on
the written interrogatories and to present their evidence
Visayas Hearing
d
During the January 11 2011 hearing only NPC and PSALM appeared
No intervenor or oppositor appeared
At the said hearing NPC and PSALM presented their proofs of
compliance with the Commissionsposting and publication of notice requirements
which were duly marked as Exhibits A to F1 inclusive The Commission
provisionally accepted the submissions made by NPC and PSALM subject to the
submission of the original copies of the Certificates of Posting issued by several
local government units LGUs The Commission dispensed with the conduct of a
pre trial conference and expository presentation in the absence of intervenors
and oppositors
ERC CASE NOS 2010067 RC and 2010 073 RCDECISION March 26 2012
Page 15 of 24
NPC and PSALM presented their only witness Mr Florendo who testified
in support of the instant application In the course of his direct examination
several documents were presented and marked as exhibits
Mindanao Hearing
During the January 19 2011 hearing only NPC and PSALM appeared
and presented their proofs of compliance with the Commissions posting and
publication of notice requirements which were duly marked as Exhibits A to F
1 inclusive The Commission dispensed with the conduct of a pre trial hearing
and expository presentation in the absence of intervenors and oppositors
NPC and PSALM presented their only witness Mr Florendo who testified
in support of the instant application In the course of his direct examination
several documents were presented and marked as exhibits
The direct examination of the said witness having been terminated NPC
and PSALM were directed to file their formal offer of evidence
Meantime the Commission noted the following submissions made by the
parties
1 The Compliance with Motion for Extension filed on December 212010 by NPC and PSALM
2 The Compliance Written Cross Examination Questions filed onDecember 30 2010 by MPPCL
3 The Motion for Extension of Time filed on December 30 2010 by
4 MERALCO
I
ERC CASE NOS 2010067 RC and 2010073 RCDECISION March 26 2012
Page 16 of 24
4 The Compliance filed on January 7 2011 by NPC and PSALM
5 The Second Motion for Extension of Time and WrittenInterrogatories filed on January 7 and 14 2011 respectively byMERALCO
6 The Second Motion for Extension of Time Reply Re WrittenCross Examination Questions with Affidavit Motion forExtension of Time Compliance Compliance with Motion forExtension Manifestation and Reply Re Written Interrogatoriesof AP Renewables Inc APRI filed on January 17 18 and 242011 February 4 7 and 23 2011 and March 17 2011respectively by NPC and PSALM
7 The Opposition filed on August 31 2011 by Apila ng Bayan ABand
8 The Compliance with Request for Marking of Additional Evidenceand Formal Offer of Evidence filed on September 23 2011 byNPC and PSALM
Upon review of the formal offers of evidence filed by NPC and PSALM in
the instant applications the Commission found that the same are material and
relevant in the final resolution of the cases
f DISCUSSION
Considering that the applications of NPC and PSALM invoke the same
issues and based substantially on the same transactions the Commission
deems it appropriate to consolidate its resolution thereon pursuant to Section 1
Rule 31 of the Rules of Court to wit
Section 1 Consolidation When actions involving acommon question of law or fact are pending before the court it mayorder a joint hearing or trial of any or all matters in issue in theactions it may order all the actions consolidated and it may makesuch orders concerning proceedings therein as may tend to avoidunnecessary costs or delay
ERC CASE NOS 2010067 RC and 2010 073 RC
DECISION March 26 2012
Page 17 of 24
In the case of Jaime S Domdom vs Sandiganbayan the Supreme Court
held that
It need not be underscored that consolidation of cases
when proper results in the simplification of proceedings whichsaves time the resources of the parties and the courts and apossible major abbreviation of trial It contributes to the swift
dispensation of justice and is in accord with the aim of affording theparties a just speedy and inexpensive determination of their cases
4 before the courts Above all consolidation avoids the possibility ofrendering conflicting decisions in two or more cases which wouldotherwise require a single judgment
In the said applications NPC and PSALM proposed the following DAA