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Interruptible Load Program (ILP)
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Energy Regulatory Commission’s (ERC) ILP Guidelines NGCP shall inform all Grid users of any existing alert on the system
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ILP Mechanics in Meralco Area ILP in MERALCO’s franchise area 1. Activated when NGCP issues a RED ALERT notice 2. Longer preparatory stage: Participants will be notified of possible activation even under YELLOW ALERT status 3. Initially for 1MW customers only. 4. “De-loaded kWh” will be based on the difference between an agreed baseline hourly load profile and actual hourly meter reading 5. Compensation for participating customers is the difference in rate between self gen rate and average Meralco rate. 6. Recovery of the compensation costs will be through the generation charge paid for by all customers in Meralco franchise as provided in approved ERC rules. 5
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Energy Regulatory Commission’s (ERC) ILP Guidelines Compensation paid to ILP participants
(PC) Participating Customer’s Ave. Rate for the current billing
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Energy Regulatory Commission’s (ERC) ILP Guidelines Recovery from all MERALCO customers
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Status as of October 20, 2014 Existing ILP Captive Participants
129 Services or Meters 160.26 MW in Capacity : Signed Up 80 MW Potential Participants RESA Contestable Customers Potential
245 MW in Capacity 9
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Activation How you can help : sign-up to participate Volunteer to de-load a certain amount of your demand • Amount of your requirement that can be shifted to your generator
Choose a time slot • Two options: A 10am-1pm or B 12nn-3pm • Captures the peak demand that occurs from 12 noon to 2 pm
Agree on a baseline load profile • As a reference for calculation of de-loaded energy
Designate 3 Contact persons • Ensure proper communication and confirmation* at all times * Basis for eligibility to compensation
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Activation Notification and activation protocol 1st Notification: 4pm of Prior day • Yellow & Red System Alerts based on information from NGCP (PGC 6.6.6.1) • Meralco will contact you through email, sms, voice call & RMs
2nd Notification: 6am of the same day • Yellow and Red System Alerts based on updated information from NGCP • Meralco will contact you through e-mail, sms, voice call & RMs
Final Confirmation of de-loading: 1 hour before schedule Red Alert status persists
• Meralco will contact you through e-mail, sms, voice call & RMs
Immediately confirm: (1) receipt of notification/ confirmation, and (2) ability to deload as scheduled & as committed
Actual de-loading on chosen schedule • Load back to normal after schedule
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Activation 16 May 2014 ILP Activation
• 8AM: Luzon grid on YELLOW ALERT based on NGCP advisory • Notified ILP participants of possible de-loading
• 1:25PM: NGCP announced RED ALERT from 1pm to 4PM due to the forced outage of Pagbilao 1 (375 MW deficiency) • Notified all ILP participants of de-loading from 2PM to 4PM
• 2PM to 4PM: ILP activated • ~70 MW committed for de-loading from more than 50 establishments (e.g. malls, office buildings, etc.)
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Activation 16 May 2014 ILP Activation
• Rotating Manual Load Dropping (MLD) had to be performed at 1:27PM to immediately restore system frequency in the grid • Best effort for ILP was activation at 2PM • Ensured continuous power supply to ~50,000 households • Limited duration of rotating MLD
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Compensation Figures for compensation will be sent together with your bill
Read
Rate
kWh
Pesos
Confirm
Pay & Receipt
• Meralco Reads Meter • Tags hours of ILP participation
• Determine Incremental de-loading rate
• Compare actual meter reading & baseline load profile • Determine total deloaded quantity for compensation
• De-loading compensatio n= [Incremental de-loading rate x compensable kWh] + Maintenance Cost
• Get customer confirmation and acceptance • Customer issue invoice or statement of account
• ILP participants receive compensation • Customer issues receipt to MERALCO
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Compensation Rule of thumb on De-Loading Compensation to ILP participant • If an ILP participant de-loads 10 MW for 10 hours in a month, that participant will receive around ₱0.65 Million as De-loading Compensation ₱0.65 Million De-loading Compensation
[₱6.3/kWh x 100,000 kWh] =
Incremental De-loading Rate x Compensable kWh
₱23,548 +
Allowable Maintenance Cost
Where: ₱6.3/kWh Incremental De-loading Rate
₱15.3/kWh Allowable Generation Cost of Fuel
=
₱9/kWh PC average rate
Generation Cost of Fuel x Fuel Consumption Rate Assumption: average price of diesel is ₱45/L
100,000 kWh x 0.32/kWh or ₱23,548 per month, whichever is lower
Allowable Maintenance Cost
De-loaded kWh
Allowable Generation Cost of Fuel
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₱45/L x 0.34 L/kWh =
₱23,548 100,000 kWh
₱15.3/kWh
=
10,000 kW x 10 hours in a month
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Compensation Rule of thumb on the impact of recovering the De-Loading Compensation from end-users
• If 10 ILP customers de-load 10 MW for 10 hours in a month • Add-on to the generation charge will be ₱0.0026/kWh • ₱0.52 in the total bill of a residential customer consuming 200 kWh
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Thank You!
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