IMEM Implementing Rules 

Table of Contents 

Chapter 1 – Introduction ............................................................................................................ 6 

1.1 OVERVIEW ............................................................................................................................................ 6 

1.1.1 About the Interim Mindanao Electricity Market Rules ............................................................. 6 

1.1.2 The Regulatory Framework ....................................................................................................... 6 

1.1.3 Description of the IMEM ........................................................................................................... 7 

1.1.4 Objectives of the IMEM ............................................................................................................. 7 

1.2 IMEMOPERATOR AND MINDANAO SYSTEM OPERATOR .............................................................................. 7 

1.2.1 The IMEM Operator ................................................................................................................... 7 

1.2.2 The Mindanao System Operator ............................................................................................... 8 

1.3 MARKET FEES ........................................................................................................................................ 9 

1.3.1 Basis for Market Fees ................................................................................................................ 9 

1.3.2 Preparation and Publication of Structure and Level of Market Fees ........................................ 9 

1.4 GOVERNANCE OF THE IMEM ................................................................................................................... 9 

1.4.1 Definition and Responsibilities .................................................................................................. 9 

1.4.2 Composition of the IMEM Governance Committee ................................................................ 10 

1.4.3 Voting and Quorum of the IMEM Governance Committee .................................................... 10 

1.4.4 Activities of the IMEM Governance Committee ...................................................................... 10 

1.5 TRANSITION TO THE WHOLESALE ELECTRICITY SPOT MARKET ...................................................................... 11 

Chapter 2 – Membership and Registration ................................................................................ 12 

2.1 PARTICIPATION IN THE IMEM ................................................................................................................ 12 

2.1.1 Mandatory Participants ........................................................................................................... 12 

2.1.2 Voluntary Participants ............................................................................................................. 12 

2.1.3 Registration of IMEM Members .............................................................................................. 12 

2.2 IMEMMEMBER CATEGORIES ................................................................................................................ 12 

2.2.1 IMEM Resources ...................................................................................................................... 12 

2.2.2 IMEM Customers ..................................................................................................................... 13 

2.2.3 IMEM Service Providers ........................................................................................................... 13 

2.3 QUALIFICATIONS OF IMEMMEMBERS .................................................................................................... 13 

2.3.1 General Qualifications ............................................................................................................. 13 

2.3.2 Qualifications of IMEM Resources........................................................................................... 13 

2.3.3 Qualifications of IMEM Customers .......................................................................................... 14 

2.3.4 Qualifications of IMEM Service Providers ............................................................................... 14 

2.4 RESPONSIBILITIES OF IMEMMEMBERS ................................................................................................... 14 

2.4.1 General Responsibilities .......................................................................................................... 14 

2.4.2 Additional Responsibilities of IMEM Resources ...................................................................... 15 

2.4.3 Additional Responsibilities of IMEM Service Providers ........................................................... 15 

2.5 APPLICATION AND REGISTRATION ........................................................................................................... 15 

2.5.1 Registration Process for Mandatory Participants .................................................................... 15 

2.5.2 Registration Process for Voluntary Participants ...................................................................... 16 

2.5.3 Registration Manual ................................................................................................................ 16 

2.6 CESSATION,SUSPENSION,DISCONNECTION AND DEREGISTRATION ............................................................... 16 

2.6.1 Cessation of Registration ......................................................................................................... 16 

2.6.2 Suspension and Disconnection ................................................................................................ 17 

2.6.3 Deregistration .......................................................................................................................... 18 

Chapter 3 – Market Operation .................................................................................................. 19 

3.1 IMEMINTERVALS AND TIMETABLE ......................................................................................................... 19 

3.1.1 Intervals and Trading Intervals ................................................................................................ 19 

3.1.2 Timetable for Operation of the IMEM ..................................................................................... 19 

3.2 SYSTEM INFORMATION AND DETERMINATION OF IMEMDEMAND .............................................................. 20 

3.2.1 The Week-Ahead Customer Demand Forecasts ...................................................................... 20 

3.2.2 The Week-Ahead Generation Requirement Forecast ............................................................. 21 

3.2.3 The Week-Ahead Distribution Network Information Reports ................................................ 21 

3.2.4 The Week-Ahead Power System Information Report ............................................................. 21 

3.2.5 The Week-Ahead Generator Contract Allocations .................................................................. 22 

3.2.6 The Week-Ahead Contract Allocations Report ........................................................................ 22 

3.2.7 The Week-Ahead Customer IMEM Demand ........................................................................... 23 

3.2.8 The Expected Demand of Load Curtailment Resources .......................................................... 23 

3.2.9 The Week-Ahead IMEM Demand Report ................................................................................ 23 

3.3 SUBMISSION AND VALIDATION OF IMEMOFFERS ..................................................................................... 23 

3.3.1 Form of Offers ......................................................................................................................... 24 

3.3.2 Standing Offers ........................................................................................................................ 24 

3.3.3 Submission of Offers ................................................................................................................ 25 

3.3.4 Validation of Offers.................................................................................................................. 25 

3.4 SCHEDULING AND PRICING ..................................................................................................................... 25 

3.4.1 Day-Ahead IMEM Schedules.................................................................................................... 25 

3.4.2 Day-Ahead Schedules .............................................................................................................. 26 

3.4.3 IMEM Schedule Optimization Model ...................................................................................... 26 

3.4.4 IMEM Day-Ahead Price ............................................................................................................ 26 

3.4.5 IMEM Merit Order Table ......................................................................................................... 26 

3.4.6 Implementation of the Day-Ahead Schedules ......................................................................... 27 

3.5 IN-DAY DISPATCH OF IMEMRESOURCES ................................................................................................. 27 

3.5.1 In-Day Dispatch Instructions .................................................................................................... 27 

3.5.2 In-Day Dispatch in Exceptional Circumstances ........................................................................ 28 

3.5.3 Implementation of In-Day Dispatch Instructions .................................................................... 29 

3.5.4 Forced Outages ........................................................................................................................ 29 

3.5.5 Recording and Reporting on In-Day Dispatch Events .............................................................. 29 

3.6 IMEMTRADING INTERVALS WITH INSUFFICIENT SUPPLY ............................................................................ 29 

3.6.1 Insufficient Supply Condition ................................................................................................... 29 

3.6.2 Load-To-Maintain .................................................................................................................... 30 

Chapter 4 – Metering ............................................................................................................... 31 

4.1 METERING SERVICES ............................................................................................................................. 31 

4.1.1 Provision of Metering Services ................................................................................................ 31 

4.1.2 Registration of IMEM Metering Services Providers ................................................................ 31 

4.2 OBLIGATIONS RELATED TO METERING SERVICES ........................................................................................ 31 

4.2.1 IMEM Metering Services Providers ......................................................................................... 31 

4.2.2 IMEM Operator ........................................................................................................................ 31 

4.3 METERING INSTALLATIONS .................................................................................................................... 32 

4.3.1 Registration of Metering Installations ..................................................................................... 32 

4.3.2 Metering Installation Requirements ....................................................................................... 32 

4.3.3 Use of Meters .......................................................................................................................... 32 

4.3.4 Performance of Metering Installations ................................................................................... 33 

4.3.5 Meter Time .............................................................................................................................. 33 

4.4 METERING DATA .................................................................................................................................. 33 

4.4.1 Data Transfer and Collection ................................................................................................... 33 

4.4.2 Metering Services Provider Database ..................................................................................... 34 

4.4.3 Metering Database .................................................................................................................. 34 

4.4.4 Rights of Access to Metering Data........................................................................................... 34 

4.4.5 Validation and Substitution of Metering Data ........................................................................ 34 

Chapter 5 – Settlement and Billing............................................................................................ 36 

5.1 SETTLEMENT TIMETABLE ....................................................................................................................... 36 

5.1.1 Frequency of Settlement and Billing ....................................................................................... 36 

5.1.2 Timetable for Settlement and Billing ....................................................................................... 36 

5.2 SETTLEMENT QUANTITIES ...................................................................................................................... 36 

5.2.1 Metered Quantities ................................................................................................................. 36 

5.2.2 Ex-Post Contract Quantities..................................................................................................... 37 

5.2.3 Scheduled and Dispatched Quantities ..................................................................................... 37 

5.2.4 Expected Demand Quantity ..................................................................................................... 38 

5.2.5 Variation Tolerance ................................................................................................................. 38 

5.2.6 Trading Quantities of IMEM Customers .................................................................................. 38 

5.2.7 Variation Quantities of IMEM Customers ............................................................................... 39 

5.2.8 Trading Quantities of IMEM Load Curtailment Resources ...................................................... 39 

5.2.9 Variation Quantities of IMEM Load Curtailment Resources ................................................... 40 

5.2.10 Trading Quantities of IMEM Generators ................................................................................. 40 

5.2.11 Variation Quantities of IMEM Generators .............................................................................. 41 

5.3 SETTLEMENT PRICE AND ADJUSTMENT RATES ........................................................................................... 41 

5.3.1 Settlement Price ...................................................................................................................... 41 

5.3.2 Settlement Adjustment Rates for Variation Quantities .......................................................... 41 

5.4 SETTLEMENT AMOUNTS ........................................................................................................................ 42 

5.4.1 Trading Interval Supply Amounts of IMEM Resources ............................................................ 42 

5.4.2 Trading Interval Amounts of IMEM Customers ....................................................................... 43 

5.4.3 Trading Interval Dispatch Compensation Recovery Rates ....................................................... 43 

5.4.4 Trading Interval Dispatch Compensation Recovery Amounts ................................................. 44 

5.4.5 Total Trading Interval Amounts ............................................................................................... 44 

5.4.6 Billing Period Settlement Amounts ......................................................................................... 45 

5.5 BILLING AND PAYMENT ......................................................................................................................... 45 

5.5.1 Preliminary Settlement Statements ........................................................................................ 45 

5.5.2 Final Settlement Statements ................................................................................................... 45 

5.5.3 Disputes on Settlement Statements ........................................................................................ 46 

5.5.4 Payments ................................................................................................................................. 46 

5.5.5 Default ..................................................................................................................................... 47 

5.5.6 Conditions of Payment ............................................................................................................ 47 

5.6 PRUDENTIAL SECURITY .......................................................................................................................... 48 

5.6.1 Overview .................................................................................................................................. 48 

5.6.2 Amount and Form of Prudential Security ................................................................................ 48 

5.6.3 Exposure Monitoring and Margin Calls ................................................................................... 49 

5.6.4 Drawdown of Prudential Security............................................................................................ 49 

Chapter 6 Market Information .................................................................................................. 51 

6.1 MARKET INFORMATION ........................................................................................................................ 51 

6.1.1 Provision of Information .......................................................................................................... 51 

6.1.2 Electronic Information Exchange ............................................................................................. 51 

6.1.3 Market Information Website ................................................................................................... 52 

6.2 CONFIDENTIALITY OF INFORMATION ........................................................................................................ 52 

6.2.1 Confidentiality ......................................................................................................................... 52 

6.2.2 Exceptions ................................................................................................................................ 52 

6.2.3 Indemnity and Survival ............................................................................................................ 53 

Chapter 7 – System Security and Market Suspension ................................................................ 54 

7.1 MARKET SUSPENSION ........................................................................................................................... 54 

7.1.1 Market Suspension and Intervention ...................................................................................... 54 

7.1.2 Exemption from Liability due to Market Suspension and Intervention .................................. 55 

7.1.3 Declaration of Market Suspension and Intervention .............................................................. 55 

7.1.4 Effect of Market Suspension and Intervention ....................................................................... 55 

7.1.5 Market Suspension Reports .................................................................................................... 56 

7.1.6 Intervention Reports ............................................................................................................... 56 

7.2 EMERGENCIES...................................................................................................................................... 57 

7.2.1 Declaration of Emergencies ..................................................................................................... 57 

7.2.2 Actions in an IMEM Emergency ............................................................................................... 57 

7.3 SYSTEM SECURITY THREATS ................................................................................................................... 59 

7.3.1 Notice of System Security Threat ............................................................................................ 59 

7.3.2 Response to System Security Threat ....................................................................................... 59 

7.4 FORCE MAJEURE .................................................................................................................................. 60 

7.4.1 Definition of Force Majeure Event .......................................................................................... 60 

7.4.2 Obligations of the IMEM Operator and IMEM Trading Participants ....................................... 60 

Chapter 8 – Compliance, Audit and Dispute Resolution ............................................................. 62 

8.1 COMPLIANCE ....................................................................................................................................... 62 

8.1.1 Enforcement and Compliance Officer ..................................................................................... 62 

8.1.2 Investigation of IMEM Members ............................................................................................. 62 

8.1.3 Sanctions .................................................................................................................................. 62 

8.1.4 Reporting of IMEM Operator and Mindanao System Operator Breaches .............................. 63 

8.2 AUDIT ................................................................................................................................................ 63 

8.2.1 Testing of Market Software ..................................................................................................... 63 

8.2.2 Audit of the IMEM Operator, Mindanao System Operator and Metering Services Providers 63 

8.2.3 Audit of IMEM Trading Participants ........................................................................................ 63 

8.3 DISPUTE RESOLUTION ........................................................................................................................... 64 

8.3.1 Application and Guiding Principles .......................................................................................... 64 

8.3.2 Dispute Resolution Process ..................................................................................................... 64 

8.3.3 Dispute Resolution Administrator ........................................................................................... 64 

Chapter 9 – Interpretation and Applicability ............................................................................. 65 

9.1 INTERPRETATION OF THE IMEMRULES ................................................................................................... 65 

9.1.1 Format Conventions ................................................................................................................ 65 

9.1.2 Expressions and References .................................................................................................... 65 

9.1.3 Times and Dates ...................................................................................................................... 66 

9.1.4 Notices ..................................................................................................................................... 66 

9.2 APPLICABILITY OF THE IMEMRULES ....................................................................................................... 67 

9.2.1 Scope of Application ................................................................................................................ 67 

9.2.2 Rights and Obligations ............................................................................................................. 67 

9.2.3 Severability .............................................................................................................................. 68 

Chapter 10 – Glossary ............................................................................................................... 69 

Chapter 1– Introduction 

1.1OVERVIEW 

1.1.1About the Interim Mindanao Electricity Market Rules 

1.1.1.1This document shall be known as the Interim Mindanao Electricity Market Rules ("IMEM Rules") and also as the IMEM Implementing Rules. 

1.1.1.2The IMEM Rules establish the basic rules, requirements and procedures that govern the operation of the Interim Mindanao Electricity Market (“IMEM”). In particular, the IMEM Rules seek to: 

(a)Facilitate the efficient operation of the IMEM;  

(b)Specify the terms and conditions to which entities may be authorized to participate in the IMEM; 

(c)Specify the authority and governance framework for the IMEM; 

(d)Provide for adequate sanctions in cases of breaches of the IMEM Rules; and 

(e)Provide a timely and cost-effective framework for resolution of disputes among IMEM Members, the Mindanao System Operator and the IMEM Operator. 

1.1.1.3The IMEM Rules were formulated in consultation with electric power industry participants; 

1.1.1.4The IMEM Rules shall be interpreted in accordance with the provisions of Chapter 9, with the objectives of the EPIRA, and with other provisions of law. 

1.1.1.5In the IMEM Rules, words and phrases that are capitalized and italicized are defined in Chapter 10. 

1.1.2The Regulatory Framework 

1.1.2.1The Department of Energy (“DOE”) is mandated under Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (“EPIRA”), to exercise supervision and control over all government activities relative to energy projects to attain the goals provided for in Republic Act No. 7638, as amended, otherwise known as the Department of Energy Act of 1992. It is likewise mandated to formulate rules and regulations as may be necessary to implement the objectives set forth in Republic Act No. 7638. 

1.1.2.2The Energy Regulatory Commission (“ERC”) is the independent, quasi-judicial body created under EPIRA with the mandate to promote competition, encourage market development, ensure customer choice and penalize abuse of market power in the restructured electricity industry. Under EPIRA, the ERC is mandated to act on applications for cost recovery and return on demand-side management projects, as well as to establish and enforce a methodology for setting transmission and distribution wheeling and retail rates for the captive market of a distribution utility, taking into account all relevant considerations, including the efficiency or inefficiency of regulated entities. In addition, it also has the specific mandate to monitor the activities in the generation and supply of electric power industry with the end view of promoting free market competition and ensuring that the allocation or pass through of bulk purchase cost by distributors is transparent and non-discriminatory. 

1.1.2.3Pursuant to their other respective functions and authorities, the DOE approves, and promulgates the IMEM Rules and IMEM Manuals, and any amendments of the same, while 

the ERC approves the IMEM Price Determination Methodology and the IMEM Cost Recovery Mechanism. 

1.1.2.4Any policy or regulatory issue arising from the operation of the IMEM shall be jointly resolved by the DOE and ERC in consultation with the IMEM Operator. 

1.1.3Description of the IMEM 

1.1.3.1The IMEM is an interim wholesale electricity market for the trading of electricity in the Mindanao Power System. 

1.1.3.2Registration in the IMEM is mandatory for all generation capacities within the Mindanao Power System, all Mindanao Distribution Utilities and all End-Users that are directly connected to the Mindanao Grid. 

1.1.3.3The IMEM allows for the participation of End-Users willing to curtail their consumption of electricity from the Mindanao Power System in the provision of supply. 

1.1.3.4The IMEM is based on a binding day-ahead market. 

1.1.3.5The IMEM provides real-time imbalance correction through the use of a merit order table. 

1.1.3.6The IMEM is an energy-only market and does not include the procurement of Ancillary Services. 

1.1.3.7The IMEM is a single-price market and does not account for network losses and congestion in its determination of the IMEM Day-Ahead Price. 

1.1.4Objectives of the IMEM 

The objectives of the IMEM (collectively the “IMEM Objectives”) are: 

1.1.4.1To facilitate the transparent and efficient utilization of all available capacities in Mindanao in order to minimize the perennial power shortages in the region; 

1.1.4.2To reflect the true cost of electric power in order to attract investment in new generating capacities in Mindanao; and 

1.1.4.3To ensure free and fair competition and public accountability. 

1.2IMEMOPERATOR AND MINDANAO SYSTEM OPERATOR 

1.2.1The IMEM Operator 

1.2.1.1The IMEM will be administered and conducted by the IMEM Operator.  

1.2.1.2The IMEM Operator shall, generally and non-restrictively: 

(a)Administer the operation of the IMEM in accordance with the IMEM Rules; 

(b)Allocate resources to enable it to operate and administer the IMEM on a non-profit basis; 

(c)Carry out the development, improvement and maintenance of systems, processes and procedures to be used in the operation of the IMEM. 

(d)Administer the registration, suspension and de-registration of IMEM Members; 

(e)Maintain and publish an up-to-date register of all IMEM Members; 

(f)Determine the Day-Ahead Schedule of each IMEM Resource in accordance with the IMEM Rules; 

(g)Determine the IMEM Merit Order Table for use by the Mindanao System Operator in correcting real-time imbalances; 

(h)Coordinate with the Mindanao System Operator in the implementation of the Day-Ahead Schedule of all IMEM Resources and the IMEM Merit Order Table to help ensure the reliability of the Mindanao Power System if necessary;  

(i)Conduct transaction billing and settlement procedures; 

(j)Publish and make available to the IMEM Trading Participants relevant information on the Day-Ahead Schedules, Day-Ahead IMEM Schedules and IMEM Prices in accordance with 5.6.4.4 of the IMEM Rules; 

(k)Monitor and report on trading activities in the IMEM; and 

(l)Comply with each of the requirements and obligations imposed on it under the IMEM Rules and other applicable laws or regulations. 

1.2.1.3In exercising its discretions and performing its obligations under the IMEM Rules, the IMEM Operator shall: 

(a)Act in accordance with any standard of performance provided for by any statute, regulation or authorization condition to which the IMEM Operator is subject; 

(b)Act in a reasonable, ethical and prudent manner; 

(c)Act in good faith; 

(d)Take into consideration, act consistently with, and use its reasonable endeavours to contribute towards the achievement of the IMEM Objectives; and 

(e)Ensure an audit trail of documentation that is fully adequate to substantiate and reconstruct all relevant actions performed. 

1.2.2The Mindanao System Operator 

1.2.2.1The Mindanao System Operator shall implement the Day-Ahead Schedule produced by the IMEM Operator. 

1.2.2.2The Mindanao System Operator shall, generally and non-restrictively: 

(a)Be responsible for and operate the Mindanao Grid in accordance with the IMEM Rules, the Grid Code and any instruction issued by the IMEM Operator, the DOE or the ERC in accordance with the IMEM Rules and IMEM Manuals, EPIRA and other relevant laws or issuances; 

(b)Prepare generation requirement forecasts in accordance with Chapter 3 of the IMEM Rules; 

(c)Provide all necessary information that will allow the IMEM Operator to determine the Day-Ahead Schedule of all IMEM Resources in accordance with the IMEM Rules; 

(d)Issue dispatch instructions for all IMEM Resources in the Mindanao Power System and shall implement the IMEM Merit Order Table submitted by the IMEM Operator; 

(e)Continuously monitor the Mindanao Power System to ensure compliance by IMEM Generators to In-Day Dispatch Instructions; 

(f)Monitor all IMEM Generators within the Mindanao Power System as regards to their Available Capacity and technical ability to comply with In-Day Dispatch Instructions; 

(g)Assist the IMEM Operator in enabling it to perform its obligations under the IMEM Rules;  

(h)Contribute towards the development, improvement and maintenance of procedures, processes or systems, and assist with any aspect of the operation of the IMEM, in coordination with the IMEM Operator; and 

(i)Comply with each of the requirements and obligations imposed on it under the IMEM Rules, Grid Code, and other applicable laws or regulations. 

1.2.2.3In exercising its discretions and performing its obligations under the IMEM Rules, the Mindanao System Operator shall: 

(a)Act in accordance with any standard of performance provided for by any statute, regulation or authorization condition to which the Mindanao System Operator is subject; 

(b)Act in a reasonable, ethical and prudent manner; 

(c)Act in good faith; 

(d)Take into consideration, act consistently with and use its reasonable endeavours to contribute towards the achievement of the IMEM Objectives; and 

(e)Ensure an audit trail of documentation that is fully adequate to substantiate and reconstruct all relevant actions performed. 

1.3MARKET FEES 

1.3.1Basis for Market Fees 

1.3.1.1The cost of administering and operating the IMEM shall be recovered by the IMEM Operator through a charge imposed on IMEM Trading Participants and/or IMEM transactions. 

1.3.1.2To the extent practicable, the structure of Market Fees shall be transparent. 

1.3.1.3To the extent practicable, Market Fees shall consider the budgeted revenue requirements for the IMEM Operator and the IGC. 

1.3.1.4To the extent practicable, the structure and level of Market Fees should not favour or discriminate against a category or categories of IMEM Members. 

1.3.1.5The components of Market Fees shall take into consideration all costs necessary for the IMEM Operator to perform their functions under the IMEM Rules. 

1.3.2Preparation and Publication of Structure and Level of Market Fees 

1.3.2.1The IMEM Operator shall develop the structure and level of Market Fees. 

1.3.2.2Upon the approval of the IGC, the IMEM Operator shall file the proposed structure and level of Market Fees with the ERC for approval. 

1.3.2.3Upon the approval of the ERC, the IMEM Operator shall publish the structure and level of Market Fees and the methods used in determining the structure.  

1.4GOVERNANCE OF THE IMEM 

1.4.1Definition and Responsibilities 

1.4.1.1IMEM governance is the process by which decisions are made and implemented within the IMEM to ensure attainment of the IMEM Objectives. 

1.4.1.2The ultimate governance of the IMEM is the responsibility of the PEM Board. The majority of governance functions will be carried out by the IMEM Governance Committee (“IGC”), provided further that the functions and responsibilities of the IGC and the PEM Board under the IMEM Rules shall be assumed by the Independent Market Operator as defined under the EPIRA and its implementing rules, once the Independent Market Operator is established. 

1.4.2Composition of the IMEM Governance Committee 

1.4.2.1The IGC shall be made up of five (5) voting members and one (1) non-voting member, consisting of: 

(a)One representative from the IMEM Operator; 

(b)One representative from the DOE; 

(c)Three (3) members independent of the Philippine electric power industry and the Philippine Government, provided that members of the academe from public schools and universities shall not be considered part of the Philippine Government for purposes of this Clause 1.4.2.1; and 

(d)One representative from the Mindanao System Operator, who is the non-voting member. 

1.4.2.2The members of the IGC shall be appointed by the DOE in accordance with the required composition of the IGC as set out in Clause 1.4.2.1, having regard to the expertise necessary for the IGC to carry out its functions. 

1.4.2.3The DOE shall designate one IGC member as IGC Chairperson. 

1.4.3Voting and Quorum of the IMEM Governance Committee 

1.4.3.1A majority of the total number of members shall constitute a quorum for the transaction of business of the IGC. 

1.4.3.2Except as provided in Clause 1.4.3.3, every decision of at least a majority of votes of members present at any meeting shall be valid as an IGC act. If voting is equal, the IGC Chairperson has a casting vote. 

1.4.3.3The IGC may likewise pass resolutions through referendum, provided that the same is passed with the written assent of a majority of all voting members of the IGC. 

1.4.4Activities of the IMEM Governance Committee 

1.4.4.1The IGC shall, generally and non-restrictively: 

(a)Oversee and monitor the activities of the IMEM Operator and the Mindanao System Operator with regard to IMEM processes to ensure that they fulfil their responsibilities under the IMEM Rules; 

(b)Establish working groups to perform the tasks set out in Clause 1.4.4.4; 

(c)Oversee and monitor the activities of the working groups established under Clause 1.4.4.1(b) to ensure that they fulfil their responsibilities under the IMEM Rules; 

(d)Oversee and monitor the activities of IMEM Members to ascertain and determine compliance or non-compliance with the IMEM Rules; 

(e)Pursuant to its oversight and monitoring functions over the IMEM, require any IMEM Member or the Mindanao System Operator to submit information as may be necessary to fulfil its mandate; 

(f)Refer any suspected incidents of non-compliance with the IMEM Rules to the Enforcement and Compliance Officer for investigation under Section 8.1.2; 

(g)Impose penalties or exempt the imposition of the same for breaches of the IMEM Rules or IMEM Manuals based on the investigation findings and recommendations of the Enforcement and Compliance Officer in accordance with Section 8.2; and 

(h)Issue resolutions or advisories on any matter related to the IMEM. 

1.4.4.2The IGC shall perform the functions set out in Clause 1.4.4.1 under the oversight of the PEM Board, regularly reporting to the PEM Board in all matters and abiding by all legal and valid directions issued to them by the PEM Board. 

1.4.4.3In exercising its discretions and performing its obligations under the IMEM Rules, the IGC shall: 

(a)Act in accordance with any standard of performance provided for by any statute, regulation or authorization condition to which the IGC is subject; 

(b)Act in a reasonable, ethical and prudent manner; 

(c)Act in good faith; 

(d)Take into consideration, act consistently with and use its reasonable endeavours to contribute towards the achievement of the IMEM Objectives; and 

(e)Ensure an audit trail of documentation that is fully adequate to substantiate and reconstruct all relevant actions performed. 

1.4.4.4The IGC may appoint appropriate persons to form working groups to: 

(a)Monitor activities conducted by IMEM Members in the IMEM; 

(b)Monitor technical matters relating to the operation of the IMEM; 

(c)Report to the IGC on the activities of IMEM Members in the IMEM, and matters concerning the operation of the IMEM generally; 

(d)Report to the IGC on apparent or suspected incidents of anti-competitive behaviour by any IMEM Member; 

(e)Report to the IGC on any matter of a technical nature which causes or appears to cause unintended or distortionary effects to the operation of the IMEM; and 

(f)Propose, assess and prepare for DOE approval any changes to these IMEM Rules. 

1.4.4.5The PEM Board, IGC or their respective members shall not be liable for any damage or loss suffered by any IMEM Member, or any other entity or person, save if the same was due to bad faith, manifest partiality or gross negligence. 

1.5TRANSITION TO THE WHOLESALE ELECTRICITY SPOT MARKET 

The DOE, in consultation with the stakeholders, shall determine the timeline for the transition from the IMEM into the Wholesale Electricity Spot Market. 

Chapter 2– Membership and Registration 

2.1PARTICIPATION IN THE IMEM 

2.1.1Mandatory Participants  

2.1.1.1Mindanao Distribution Utilities and Grid-Connected End-Users shall be registered in the IMEM by the IMEM Operator as IMEM Customers under Section 2.2.2. 

2.1.1.2Entitieswith Generating Plants, other than Self-Generating Facilities, within the Mindanao Power System, shall be registered in the IMEM by the IMEM Operator under one of the IMEM Generator categories specified in Section 2.2.1. 

2.1.2Voluntary Participants 

2.1.2.1Self-Generating Facilities within the Mindanao Power System may register in the IMEM as an IMEM Embedded Generator if it satisfies the qualifications in Clause 2.3.2.2. 

2.1.2.2An End-User or group of End-Users may register in the IMEM as an IMEM Load Curtailment Resource if it satisfies the qualifications in Clause 2.3.2.3. 

2.1.3Registration of IMEM Members 

2.1.3.1Facilities and entities identified in Section 2.1.1 shall be registered by the IMEM Operator under the categories listed under Section 2.2. 

2.1.3.2Facilities and entities identified in Section 2.1.2  may register with the IMEM Operator under the categories listed under Section 2.2. 

2.1.3.3Participation in the IMEM, including trading and provision of services, is restricted to entities that are registered as IMEM Members, provided that such registration has not ceased. 

2.1.3.4If a person or entity undertakes activities in two or more of the categories listed under Section 2.2 and registration in each of those categories does not violate any provision of the EPIRA, that person or entity shall register or be registered, as the case may be, in each of those categories in accordance with the procedures in Section 2.5. 

2.1.3.5The IMEM Operator shall maintain and publish an updated list of registered IMEM Members indicating the categories in which they are registered and their membership status, as well as the status of pending applications in accordance with the provisions of 5.6.4.4. 

2.2IMEMMEMBER CATEGORIES 

2.2.1IMEM Resources 

IMEM Resources are facilities capable of providing generation to or curtailing load from the Mindanao Power System and are as follows: 

(a)IMEM Grid Generators;  

(b)IMEM Embedded Generators; or 

(c)IMEM Load Curtailment Resources. 

2.2.2IMEM Customers 

2.2.2.1IMEM Customers are entities that source electric power directly from the Mindanao Grid and are as follows: 

(a)Mindanao Distribution Utilities; or 

(b)Grid-Connected End-Users. 

2.2.2.2For clarity, facilities that source electric power directly from the Mindanao Grid and intend to act as an IMEM Load Curtailment Resource shall also register as a Grid-Connected End-User. 

2.2.3IMEM Service Providers 

IMEM Service Providers are entities that provide technical services required for operating the IMEM and are as follows: 

(a)IMEM Network Service Providers; and 

(b)IMEM Metering Services Providers. 

2.3QUALIFICATIONS OF IMEMMEMBERS 

2.3.1General Qualifications 

To qualify as an IMEM Member, a person or entity must: 

(a)Have facilities connected to or within the Mindanao Power System; 

(b)Exhibit that its facilities are compliant with the technical and legal requirements in these IMEM Rules, the Grid Code, and the Distribution Code. 

(c)Be a resident in, or is permanently established in, the Philippines;  

(d)Not be under liquidation, receivership or corporate rehabilitation under Republic Act No. 10142 otherwise known as the Financial Rehabilitation and Insolvency Act of 2010, or under a similar form of administration under any laws applicable to that person or entity in any jurisdiction; 

(e)Not be immune from suit with respect to the obligations of an IMEM Member under these IMEM Rules; 

(f)Be capable of being sued in its own name in any judicial, quasi-judicial or administrative body in the Philippines; 

(g)Satisfy the Prudential Security Requirements, as may be applicable; and 

(h)Be qualified to register or be registered under one (1) or more IMEM Member categories. 

2.3.2Qualifications of IMEM Resources 

2.3.2.1An IMEM Grid Generator must meet the following requirements: 

(a)Have a total rated capacity of not less than one (1) MW; and 

(b)Be capable of synchronizing with the Mindanao Grid. 

2.3.2.2An IMEM Embedded Generator must meet the following requirements: 

(a)Have a total rated capacity of not less than one (1) MW; and 

(b)Be capable of synchronizing with the system it is directly connected to. 

2.3.2.3An IMEM Load Curtailment Resource must have had a daily average peak demand of not less than one (1) MW over the preceding twelve (12) months.  

2.3.2.4By default, the Offer Type of all IMEM Resources is Standard Offer Type. However, the IMEM Operator shall assign, upon provision of proof, the Offer Type of an IMEM Load Curtailment Resource whose mode of curtailment does not allow partial curtailment to be an All-or-Nothing Offer Type for use in the process described in Section 3.3. 

2.3.2.5By default, all IMEM Resources are available for upwards and downwards in-day dispatch. However, an IMEM Resource may apply to the IMEM Operator not to be available for either upwards or downwards in-day dispatch if its facilities or mode of supply does not allow for practicable in-day dispatch. 

2.3.3Qualifications of IMEM Customers 

2.3.3.1An Electric Cooperative, private corporation, government-owned utility, or existing local government unit that has an exclusive franchise to operate a Mindanao Distribution System in accordance with its franchise and the EPIRA shall be registered as a Mindanao Distribution Utility. 

2.3.3.2A person or entity directly connected to the Mindanao Grid requiring the supply and delivery of electricity for its own use shall be registered as a Grid-Connected End-User. 

2.3.4Qualifications of IMEM Service Providers 

2.3.4.1A person or entity who engages in the activity of owning, controlling, or operating a transmission or distribution system with at least one (1) IMEM Trading Participant directly connected to it shall be registered as an IMEM Network Service Provider. 

2.3.4.2A person or entity performing metering services for an IMEM Trading Participant shall be registered as an IMEM Metering Services Provider. 

2.4RESPONSIBILITIES OF IMEMMEMBERS 

2.4.1General Responsibilities 

Each IMEM Member: 

(a)Shall perform all its rights, duties and obligations under the IMEM Rules, and other relevant issuances, decisions and resolutions of the DOE and ERC, in good faith and with the degree of care and to the standard expected of a prudent public utility, End-User or generator; 

(b)Shall at all times comply with and maintain all consents, permissions and licenses required to be obtained and maintained to participate in the IMEM for each category in which it is duly registered under;  

(c)Shall maintain and satisfy its Prudential Security Requirements as may be applicable; 

(d)Shall promptly pay all fees, charges and other payments arising under the IMEM Rules as they become due;  

(e)Shall ensure that, any information or data it is required to submit to the IMEM Operator, Mindanao System Operator or any other entity or to maintain, as required by virtue of being an IMEM Member, shall, to the best of its knowledge and belief, be true, valid, correct, complete and accurate at the time it is given and, while it is maintained and where appropriate, it shall keep the IMEM Operator informed of errors or omissions in and corrections or updates to any information or data which it has submitted to the IMEM Operator, the Mindanao System Operator or any other entity under the IMEM Rules;  

(f)Shall ensure that any information or data it is required to submit to the IMEM Operator, Mindanao System Operator, or any person as required under the IMEM Rules will be submitted in a timely manner to enable the IMEM Operator, Mindanao System Operator or such other person to perform their obligations and functions arising under the IMEM Rules; and 

(g)Shall co-operate with and provide all reasonable assistance to the IMEM Operator on request for the purposes of the IMEM Operator performing its functions and obligations under the IMEM Rules. 

2.4.2Additional Responsibilities of IMEM Resources 

In addition to the responsibilities in Section 2.4.1, an IMEM Resource shall be responsible for: 

(a)Dispatching its facilities according to their Day-Ahead Schedule generated by the IMEM Operator; 

(b)Informing the IMEM Operator and Mindanao System Operator immediately of any event that would result or have resulted in its non-compliance with their Day-Ahead Schedule generated by the IMEM Operator; and 

(c)Reporting immediately the mitigating measures it has implemented to minimize its non-compliance in case of an event resulting to its non-compliance with its Day-Ahead Schedule. 

2.4.3Additional Responsibilities of IMEM Service Providers 

2.4.3.1In addition to the responsibilities in Section 2.4.1, an IMEM Network Service Provider shall be responsible for: 

(a)Relaying In-Day Dispatch Instructions from the Mindanao System Operator to IMEM Load Curtailment Resources directly connected to its system; 

(b)Where practical, monitoring the compliance of IMEM Resources directly connected to its system to their Day-Ahead Schedule generated by the IMEM Operator and the In-Day Dispatch Instructions from the Mindanao System Operator; and 

(c)Reporting to the DOE, the ERC, and the IMEM Operator any system constraints resulting to the non-compliance of an IMEM Resource directly connected to its system to its Day-Ahead Schedule or In-Day Dispatch Instruction. 

2.4.3.2In addition to the responsibilities in Section 2.4.1, an IMEM Metering Services Provider shall be responsible for: 

(a)Collecting and retrieving Metering Data from the Metering Installations of IMEM Trading Participants it is responsible for; 

(b)Submitting settlement-ready Metering Data to the IMEM Operator in accordance with these IMEM Rules; and 

(c)Reporting to the DOE, the ERC, and the IMEM Operator any Metering Installation that is not in accordance with the required Metering Installation standards under Section 4.3.2 of these IMEM Rules. 

2.5APPLICATION AND REGISTRATION 

2.5.1Registration Process for Mandatory Participants 

2.5.1.1Entities described in Section 2.1.1 that meet the qualifications under Section 2.3 shall be registered by the IMEM Operator through the formal entry of their membership in the list of IMEM Members published by the IMEM Operator in accordance with Clause 2.1.3.5. The IMEM Operator shall inform such entities of the documentation and technical information to be submitted which are necessary for the IMEM Operator to administer the IMEM. The 

entities shall undertake all endeavours to comply fully with the requirements of the IMEM Operator. 

2.5.1.2If the IMEM Member registered under Clause 2.5.1.1 does not provide the requested information or such other supplemental information or documentation within fifteen (15) Business Days after being informed of the same pursuant to Clause 2.5.1.1, the IMEM Operator may treat the IMEM Member as suspended in accordance with Clause 2.6.2.1. 

2.5.2Registration Process for Voluntary Participants 

2.5.2.1Entities described in Section 2.1.2 that meet the qualifications under Section 2.3 may register in the IMEM through the submission of the application form, the registration fee if applicable, and other documents and requirements which the IMEM Operator shall determine as necessary. 

2.5.2.2The IMEM Operator shall assess the application submitted and may require additional documentation or information from the applicant which it considers reasonably necessary to aid the assessment of the application. 

2.5.2.3The IMEM Operator shall advise the applicant of any further information requirements within five (5) Business Days of receiving the application. 

2.5.2.4If an applicant does not provide the requested information within fifteen (15) Business Days of the request under Clause 2.5.2.2, the IMEM Operator may treat the application as being withdrawn. 

2.5.2.5If the IMEM Operator determines, after assessment, that the applicant meets all the qualifications and requirements, the IMEM Operator shall approve the application within fifteen (15) Business Days of receipt of all requirements from the applicant. The applicant shall be notified of the approval in writing. The date of effectivity of the registration shall be stated in the notice. 

2.5.2.6If the IMEM Operator determines, after assessment, that the applicant does not meet the qualifications and requirements, the IMEM Operator shall disapprove the application and provide written notice to the applicant, stating the reasons for the disapproval. The IMEM Operator shall provide a copy of the notice to both the DOE and ERC within five (5) Business Days of issuance to the applicant. 

2.5.3Registration Manual 

The IMEM Operator shall maintain and publish an IMEM Manual, which shall set out the requirements, and procedures that will guide the IMEM Members and applicants in the registration process in the IMEM. 

2.6CESSATION,SUSPENSION,DISCONNECTION AND DEREGISTRATION 

2.6.1Cessation of Registration 

2.6.1.1An entity that ceases its operations related to any IMEM Member category for which it is registered shall send written notice to the IMEM Operator to cease its registration under that category. 

2.6.1.2A facility may choose to stop acting as an IMEM Load Curtailment Resource by providing written notice to the IMEM Operator to cease its registration under that category. 

2.6.1.3Such notice sent to the IMEM Operator under Clauses 2.6.1.1 or 2.6.1.2 shall include:  

(a)The date upon which it wishes to cease to be registered, which date should not be less than thirty (30) business days from the IMEM Operator’s receipt of the said notice; and 

(b)The category or categories in which the IMEM Member no longer wishes to be registered. 

2.6.1.4On said effective date, the entity shall be deregistered in accordance with Section 2.6.3. 

2.6.2Suspension and Disconnection 

2.6.2.1An IMEM Member may be suspended from the IMEM for the following grounds: 

(a)Breaches of any provision of the IMEM Rules or IMEM Manuals as determined by the Enforcement and Compliance Officer in accordance with Section 8.1; 

(b)Default in payment or any grounds provided in Clauses 5.6.3.8 and 5.6.4.4 ; 

(c)Disconnection of IMEM Member from the Mindanao Grid or the Mindanao Distribution Utility; or 

(d)Failure to maintain or satisfy the requirements under the IMEM Rules or IMEM Manuals. 

2.6.2.2A suspended IMEM Resource shall not receive any payment from the IMEM for all IMEM Intervals for which the suspension is in effect. Moreover, Offered Capacities from the suspended IMEM Resource shall not be considered in the determination of the Day-Ahead IMEM Schedules and IMEM Day-Ahead Price for all IMEM Intervals for which the suspension is in effect. 

2.6.2.3A suspended IMEM Customer shall be considered to have zero (0) IMEM Demand on all IMEM Intervals for which the suspension is in effect. 

2.6.2.4A suspended IMEM Trading Participant shall still be required to perform its obligations under these IMEM Rules including, but not limited to, the submission of information regarding contracts and demand. 

2.6.2.5A suspended IMEM Member shall continue to be liable for any financial obligations incurred during and prior to its suspension or disconnection provided under Clause 2.6.2.8. 

2.6.2.6When the IMEM Operator determines that any of the grounds for suspension under Clause 2.6.2.1 has occurred, the IMEM Operator shall provide written notice to the IMEM Member of its suspension, stating the reasons thereof and the effective date and hour of the suspension. A copy of which shall be furnished to the DOE, the ERC and the IGC. 

2.6.2.7Immediately after a Suspension Notice is issued by the IMEM Operator under these IMEM Rules, the IMEM Operator shall publish the Suspension Notice in the Market Information Website. 

2.6.2.8After serving a Suspension Notice in accordance with Clause 2.6.2.6, the IMEM Operator may send a written request for disconnection to the Mindanao System Operator for the disconnection of the Mindanao Grid-connected IMEM Member, together with a copy of the Suspension Notice provided under Clause 2.6.2.7. A copy of the written request shall be furnished to the DOE. 

2.6.2.9When a disconnection request is made under Cause 2.6.2.8, the Mindanao System Operator shall thereafter disconnect the suspended IMEM Member within five (5) Business Days from receipt of the request.  

2.6.2.10If the grounds for suspension have been remedied or rectified, the IMEM Operator shall lift the suspension by providing written notice to the suspended member indicating the date and hour it will take effect, and, if applicable, send a written request to the Mindanao System Operator to reconnect the suspended IMEM Member. 

2.6.2.11If within the five- (5) day period prior to disconnection under Clause 2.6.2.9, the IMEM Member has remedied the grounds for suspension, the IMEM Operator shall lift the Suspension Notice and send written notification to Mindanao System Operator of the same. 

2.6.2.12When a reconnection request made under Cause 2.6.2.10, the Mindanao System Operator shall thereafter reconnect the suspended IMEM Member on the specified effective date or as soon as possible thereafter. 

2.6.2.13If a suspension is revoked, the IMEM Operator shall publish the revocation notice in the Market Information Website. 

2.6.3Deregistration 

2.6.3.1The IMEM Operator shall deregister an IMEM Member if: 

(a)The IMEM Member has provided a notice of cessation of registration under Section 2.6.1; or 

(b)The IMEM Member has been suspended and disconnected under Section 2.6.2, the suspension has not been lifted and the IMEM Member has not been reconnected within sixty (60) days from its disconnection. 

2.6.3.2Any IMEM Member that is deregistered shall no longer be allowed to participate in the IMEM in the category from which they were deregistered, provided however that such entity shall continue to be liable for any obligations incurred prior to its suspension or disconnection. 

2.6.3.3An IMEM Member that is deregistered may only be allowed to re-register upon remedying the grounds for its deregistration from the IMEM Member category. 

Chapter 3– Market Operation 

3.1IMEMINTERVALS AND TIMETABLE 

3.1.1Intervals and Trading Intervals 

3.1.1.1The IMEM shall operate on the basis of one hour IMEM Intervals, ending on the hour. 

3.1.1.2IMEM Intervals in which a non-zero IMEM Demand is determined shall be designated as IMEM Trading Intervals. 

3.1.1.3In addition, IMEM Intervals in which any In-Day Dispatch Instruction is issued to an IMEM Resource in relation to capacity covered in its Offered Capacity shall also be designated as IMEM Trading Intervals. 

3.1.2Timetable for Operation of the IMEM 

3.1.2.1Each day by 0900H, each IMEM Customer shall submit to the Mindanao System Operator their Week-Ahead Customer Demand Forecast. 

3.1.2.2Each day by 0900H, each Mindanao Distribution Utility shall submit to the Mindanao System Operator their Week-Ahead Distribution Network Information Report. 

3.1.2.3Each day by 1000H, the Mindanao System Operator shall prepare the Week-Ahead Generation Requirement Forecast based on the submissions in Clauses 3.1.2.1 and 3.1.2.2 and submit the same to the IMEM Operator. 

3.1.2.4Each day by 1000H, the Mindanao System Operator shall submit the Week-Ahead Power System Information Report to the IMEM Operator. 

3.1.2.5Each day by 1030H, the IMEM Operator shall publish the Week-Ahead System Generation Requirement Forecast and the Week-Ahead Power System Information Report in the Market Information Website. 

3.1.2.6Each day by 1100H, each IMEM Generator shall submit to the Mindanao System Operator their Week-Ahead Generator Contract Allocation. 

3.1.2.7Each day by 1200H, the Mindanao System Operator shall submit to the IMEM Operator the Week-Ahead Contract Allocations Report. 

3.1.2.8Each day by 1200H, the Mindanao System Operator shall submit to each IMEM Customer their Week-Ahead Contract Allocation. 

3.1.2.9Each day by 1300H, each IMEM Customer shall submit to the Mindanao System Operator and to the IMEM Operator their Week-Ahead Customer IMEM Demand. 

3.1.2.10Each day by 1330H, the IMEM Operator shall prepare and publish the Week-Ahead IMEM Demand Report. 

3.1.2.11Each day by 1330H, the IMEM Operator shall transmit the Expected Demands calculated under Clause 3.2.8.1 to each Embedded IMEM Load Curtailment Resource. 

3.1.2.12Each day by 1500H, the IMEM Operator shall cease receiving IMEM Offers from IMEM Resources for each IMEM Interval in the following day. 

3.1.2.13Each day by 1600H, the IMEM Operator shall publish the IMEM Day-Ahead Price for each IMEM Trading Interval in the following day in the Market Information Website. 

3.1.2.14Each day by 1600H, the IMEM Operator shall transmit the IMEM Merit Order Table and IMEM Day-Ahead Schedule of all IMEM Resources for each IMEM Interval to the Mindanao System Operator in the following day. 

3.1.2.15Each day by 1600H, the IMEM Operator shall transmit to each IMEM Resource its Day-Ahead Schedule for each IMEM Interval in the following day. 

3.1.2.16Each day by 1600H, the IMEM Operator shall transmit to each Mindanao Distribution Utility that has IMEM Resources directly connected to its Mindanao Distribution System the Day-Ahead Schedules of those IMEM Resources. 

3.1.2.17The Mindanao System Operator may issue In-Day Dispatch Instructions to IMEM Resources in accordance with Section 3.5.1. 

3.1.2.18The IMEM Operator shall publish the Day-Ahead Schedules and Day-Ahead IMEM Schedules for each IMEM Trading Interval in the Market Information Website two (2) Business Days after the publication of the IMEM Day-Ahead Price. 

3.2SYSTEM INFORMATION AND DETERMINATION OF IMEMDEMAND 

3.2.1The Week-Ahead Customer Demand Forecasts 

3.2.1.1The Week-Ahead Customer Demand Forecast shall include the Customer Demand Forecast of the IMEM Customer for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of submission. 

3.2.1.2The Customer Demand Forecast shall be an estimate of the instantaneous demand at the end of each IMEM Interval. 

3.2.1.3The Customer Demand Forecast shall be made as at the IMEM Customer’s Connection Point. 

3.2.1.4The Customer Demand Forecast shall not take into account any supply from embedded generation, or reduced load from either voluntary or involuntary load curtailment; they shall be calculated on the basis of zero contribution from these sources. 

3.2.1.5For clarity, Clause 3.2.1.4 means that the Customer Demand Forecast are not estimates of what the IMEM Customer’s off-take will actually be, but of what would be its off-take if all demand within its system were to be met without curtailment and with all energy sourced from the Mindanao Grid. 

3.2.1.6The Customer Demand Forecast shall not take into account any reduction from Interruptible Load Programs (ILP), however the Expected ILP Reduction for each IMEM Interval shall be submitted as a separate item in the Week-Ahead Customer Demand Forecast. 

3.2.1.7The Customer Demand Forecast shall not take into account any outages or limitations of equipment within the Mindanao Grid. 

3.2.1.8The Customer Demand Forecast shall take into account any known outages or limitations of equipment within the IMEM Customer’s network or facility. 

3.2.1.9The Customer Demand Forecast shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.2.1.10The Customer Demand Forecast shall take into account the forecast weather conditions. 

3.2.1.11The Customer Demand Forecast shall take into account any known events, holidays or other situations that are likely to impact demand.  

3.2.1.12IMEM Customers shall undertake all reasonable endeavours to achieve the highest possible accuracy of the Customer Demand Forecast and shall adopt a target of being within three percent (±3%) of the actual demand. 

3.2.1.13The Week-Ahead Customer Demand Forecast shall include a description of any abnormal conditions for which the IMEM Customer adjusted its Customer Demand Forecast, including but not limited to those conditions described in this Section 3.2.1. 

3.2.2The Week-Ahead Generation Requirement Forecast 

3.2.2.1The Week-Ahead Generation Requirement Forecast shall include all of the information specified in Section 3.2.1 for each IMEM Customer. 

3.2.2.2The Week-Ahead Generation Requirement Forecast shall also include an estimate of total generation required to meet the demand from the Mindanao Power System for each IMEM Interval in the seven-day period based on the information specified in Section 3.2.1 commencing immediately after 2400H of the day of publication. 

3.2.2.3At all times, the valid generation requirement forecast for an IMEM Interval shall be that in the most recently published Week-Ahead Generation Requirement Forecast which includes that IMEM Interval. 

3.2.3The Week-Ahead Distribution Network Information Reports 

3.2.3.1The Week-Ahead Distribution Network Information Reports submitted by each Mindanao Distribution Utility to the Mindanao System Operator shall include: 

(a)Information on any planned outage of Distribution Network equipment for the following seven (7) days; 

(b)Information on any forced outages of Distribution Network equipment during the previous day; and 

(c)Any other distribution network information requested by the IMEM Operator or the Mindanao System Operator. 

3.2.3.2Mindanao Distribution Utilities shall undertake all reasonable endeavours to ensure the completeness and accuracy of the Week-Ahead Distribution Network Information Reports. 

3.2.4The Week-Ahead Power System Information Report 

3.2.4.1The Week-Ahead Power System Information Report submitted by the Mindanao System Operator to the IMEM Operator shall include: 

(a)Information on any planned outage of Mindanao Grid equipment for the following seven (7) days; 

(b)Information on any forced outages of Mindanao Grid equipment during the previous day; and 

(c)Any other Mindanao Grid information requested by the IMEM Operator. 

3.2.4.2The Week-Ahead Power System Information Report submitted by the Mindanao System Operator to the IMEM Operator shall also include all Week-Ahead Distribution Network Information Reports submitted by other IMEM Network Service Providers to the Mindanao System Operator on the same day. 

3.2.4.3The Mindanao System Operator shall undertake all reasonable endeavours to ensure the completeness and accuracy of the Week-Ahead Power System Information Report. 

3.2.5The Week-Ahead Generator Contract Allocations 

3.2.5.1The Week-Ahead Generator Contract Allocations submitted by each IMEM Generator shall include the Ex-Ante Contract Allocation to each IMEM Customer for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of submission. 

3.2.5.2The Ex-Ante Contract Allocations shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.2.5.3The Ex-Ante Contract Allocations shall be specified as an instantaneous megawatt quantity at the end of the IMEM Interval. 

3.2.5.4To incorporate the impact of losses in the Mindanao Grid, the Ex-Ante Contract Allocations shall be specified as both: 

(a)The megawatt capacity of the IMEM Generator reserved for supplying the contracted energy; and 

(b)The megawatt off-take quantity at the IMEM Customer’s Connection Point that is intended to be covered by the contracted energy. 

3.2.5.5The sum of the Ex-Ante Contract Allocations, plus the Expected ILP Reduction, of each IMEM Customer in an IMEM Interval shall not exceed the Customer Demand Forecast of that IMEM Customer. 

3.2.5.6IMEM Generators shall undertake all reasonable endeavours to ensure the Ex-Ante Contract Allocation to each IMEM Customer is amenable to that IMEM Customer. 

3.2.6The Week-Ahead Contract Allocations Report 

3.2.6.1The Week-Ahead Generator Contract Allocations Report shall include all of the information provided under Section 3.2.5 as well as the following for each IMEM Interval: 

(a)The total Ex-Ante Contract Allocation for each IMEM Generator; 

(b)The total Ex-Ante Contract Allocation for each IMEM Customer; 

(c)Details of any alteration of Ex-Ante Contract Allocation performed by the Mindanao System Operator in accordance with Clause 3.2.6.3 which includes, but is not limited to, the reason for the alteration and the unaltered Ex-Ante Contract Allocation; 

(d)The Expected ILP Reduction for each IMEM Customer; and 

(e)The Uncontracted Demand for each IMEM Customer. 

3.2.6.2If only one of the quantities in Clause 3.2.5.4 is specified, the Mindanao System Operator shall calculate the missing quantity based on: 

(a)Losses of two percent (2%) if the IMEM Generator is an IMEM Embedded Generator located in the IMEM Customer’s Distribution Network, and 

(b)Losses of four and thirty-five hundredths of a percent (4.35%) or any such transmission loss cap approved by the ERC. 

3.2.6.3The Mindanao System Operator shall, if necessary and in consultation with the relevant IMEM Generator, alter the Ex-Ante Contract Allocations in order to create a feasible security-constrained generation schedule. 

3.2.6.4The contract data shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.2.6.5The contract data shall be specified as an instantaneous megawatt quantity available for withdrawal at any time in the IMEM Interval.  

3.2.6.6For IMEM Generators, the total Ex-Ante Contract Allocation shall be the capacity of the IMEM Generator reserved for supplying contracted energy. 

3.2.6.7For IMEM Customers, the total Ex-Ante Contract Allocation shall be the total off-take quantity at the IMEM Customer’s Connection Point that is covered by contracts. 

3.2.6.8At all times, the valid Ex-Ante Contract Allocations for an IMEM Interval shall be that in the most recently submitted Week-Ahead Contract Allocations Report that include that IMEM Interval. 

3.2.7The Week-Ahead Customer IMEM Demand 

3.2.7.1For each IMEM Interval, each IMEM Customer shall, based on its Customer Demand Forecast, total Ex-Ante Contract Allocations and Expected ILP Reduction, determine the quantity they intend to purchase from the IMEM and submit the same to the IMEM Operator as its Customer IMEM Demand. 

3.2.7.2The Customer IMEM Demand declared by an IMEM Customer shall not exceed the Customer Demand Forecast less the total Ex-Ante Contract Allocations and Expected ILP Reduction for that IMEM Customer. 

3.2.8The Expected Demand of Load Curtailment Resources 

3.2.8.1The Expected Demand for an Embedded IMEM Load Curtailment Resource is the instantaneous MW forecasted to be consumed at the end of an IMEM Interval as calculated by the IMEM Operator in accordance with the relevant IMEM Manual. 

3.2.8.2The Expected Demand for an IMEM Load Curtailment Resource which is also an IMEM Customer, or Grid IMEM Load Curtailment Resource, is the total Ex-Ante Contract Allocation for that IMEM Customer plus its Customer IMEM Demand. 

3.2.9The Week-Ahead IMEM Demand Report 

3.2.9.1The Week-Ahead IMEM Demand Report shall include the following information for each IMEM Interval in the seven-day period commencing immediately after 2400H on the day of publication: 

(a)The total generation required to meet demand, as per Clause 3.2.2.2; 

(b)Total system demand covered by Ex-Ante Contract Allocations; and 

(c)The total IMEM Demand. 

3.2.9.2The total IMEM Demand shall be the sum of the Customer IMEM Demand quantities submitted for that IMEM Interval. 

3.2.9.3The quantities shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.2.9.4The IMEM Operator shall undertake all reasonable endeavours to ensure accuracy in the calculation of the reported quantities. 

3.2.9.5At all times, the valid IMEM Demand for an IMEM Interval shall be that in the most recently published Week-Ahead IMEM Demand Report which includes that IMEM Interval. 

3.3SUBMISSION AND VALIDATION OF IMEMOFFERS 

3.3.1Form of Offers 

3.3.1.1A valid IMEM Offer for an IMEM Resource in an IMEM Interval shall consist of the following information: 

(a)The Offer Type; 

(b)The Contracted Capacity, if applicable; 

(c)The Unavailable Capacity, if any, including a reason for the unavailability; 

(d)The Offered Capacity; and 

(e)The Offer Price. 

3.3.1.2An IMEM Offer with an All-Or-Nothing Offer Type, assigned to the IMEM Resource in accordance with Clause 2.3.2.4, will be scheduled in full or not at all. 

3.3.1.3The Contracted Capacity shall equal the sum of the all the Ex-Ante Contract Allocations, if any, made to that IMEM Resource under Section 3.2.5. 

3.3.1.4The Unavailable Capacity is applicable only to IMEM Generators and must be accompanied by a justifiable reason for being unavailable. 

3.3.1.5The Offered Capacity shall be a single megawatt amount, not split out into blocks. 

3.3.1.6For IMEM Generators, the Offered Capacity shall be equal to the Registered Capacity less the Contracted Capacity less the Unavailable Capacity. 

3.3.1.7For IMEM Load Curtailment Resources, the Offered Capacity shall be no more than the Expected Demand of that IMEM Resource in the relevant IMEM Interval. 

3.3.1.8The Offered Capacity, Contracted Capacity and Unavailable Capacity shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.3.1.9The Offer Price shall be in Philippine Pesos per megawatt-hour (PhP/MWh) and shall be made in whole Philippine Pesos per megawatt-hour. 

3.3.1.10The Offer Price shall not be greater than any limit that may be agreed upon by the DOE, the ERC, and the IMEM Operator. 

3.3.2Standing Offers 

3.3.2.1Each IMEM Generator shall submit a Standing IMEM Offer for each IMEM Interval of each day of the week. 

3.3.2.2Each IMEM Load Curtailment Resource may submit a Standing IMEM Offer for each IMEM Interval of each day of the week. 

3.3.2.3Each Standing IMEM Offer shall specify the day of the week and IMEM Interval to which it applies. 

3.3.2.4Each Standing IMEM Offer shall include all of the information specified in Clause 3.3.1.1. If any of this information changes, the IMEM Resource shall address this either by submitting a revised Standing IMEM Offer or by submitting a Regular IMEM Offer for each IMEM Interval in which the information differs from its current valid Standing IMEM Offer. 

3.3.2.5A Standing IMEM Offer may be revised by the relevant IMEM Resource at any time. 

3.3.2.6A Standing IMEM Offer which is revised under Clause 3.3.2.5 may specify a date that it will become effective, in which case it shall become effective at 1500H on the specified date; provided that the effective date specified is at least one (1) day after the date on which the revised Standing IMEM Offer is submitted. 

3.3.2.7A Standing IMEM Offer which does not specify an effective date: 

(a)Shall, if submitted before 1500H, take effect at 1500H on the day of submission; 

(b)Shall, if submitted at or after 1500H, take effect at 1500H on the day following submission; and 

(c)Shall not affect any Day-Ahead IMEM Schedule which has already been published, or whose preparation has already been initiated at the time when the revised offer is accepted. 

3.3.2.8A Standing IMEM Offer shall remain in effect until such time as it is revised under Clause 3.3.2.5, or until the IMEM Resource is deregistered from the IMEM. 

3.3.3Submission of Offers 

3.3.3.1When submitting a Regular IMEM Offer or Standing IMEM Offer for a specified IMEM Interval, the IMEM Resource shall provide to the IMEM Operator the information required under Section 3.3.1 in accordance with the electronic communication procedures in Section 6.1.2. 

3.3.3.2A Regular IMEM Offer for an IMEM Interval submitted after the deadline of submission of Regular IMEM Offers for that IMEM Interval specified in Clause 3.1.2.12 will be rejected by the IMEM Operator and the latest valid Regular IMEM Offer or the Standing IMEM Offer shall apply.  

3.3.3.3The IMEM Operator shall, upon receipt of a valid IMEM Offer from an IMEM Resource, issue an electronic confirmation of receipt immediately. 

3.3.3.4If an IMEM Resource does not receive confirmation of receipt under Clause 3.3.3.2 from the IMEM Operator within a period of thirty (30) minutes, the IMEM Resource shall contact the IMEM Operator to determine whether or not the offer was received. 

3.3.4Validation of Offers 

3.3.4.1To be valid, IMEM Offers shall be submitted by the relevant IMEM Resource: 

(a)Prior to any relevant deadline; 

(b)Inclusive of the information specified in, and consistent with the requirements of, Section 3.3.1; and 

(c)Consistent with registered technical capabilities of the IMEM Resource. 

3.3.4.2The IMEM Operator, upon receipt of a valid IMEM Offer from an IMEM Resource, shall verify whether the IMEM Offer is valid in accordance with Clause 3.3.4.1 and shall issue an electronic notification to the IMEM Resource indicating its validity within a period of thirty (30) minutes. 

3.3.4.3The IMEM Operator shall, if an IMEM Offer is determined not to be valid, include in the electronic notification sent under Clause 3.3.4.2 the reason or reasons that the IMEM Offer is not valid so that the IMEM Resource may correct and resubmit the IMEM Offer. 

3.4SCHEDULING AND PRICING 

3.4.1Day-Ahead IMEM Schedules 

3.4.1.1For each IMEM Interval, the IMEM Operator shall determine the Day-Ahead IMEM Schedule of each IMEM Resource in accordance with the IMEM Schedule Optimization Model generally described in Section 3.4.3 and in detail in the IMEM Price Determination Methodology approved by the ERC. 

3.4.1.2If there is insufficient capacity across all IMEM Offers to meet the IMEM Demand, the IMEM Operator shall fully schedule all IMEM Offers and declare an Insufficient Supply Condition in accordance with Section 3.6.1. 

3.4.2Day-Ahead Schedules 

3.4.2.1For each IMEM Interval, the IMEM Operator shall determine the Day-Ahead Schedule of all IMEM Resources at the end of that IMEM Interval. 

3.4.2.2The Day-Ahead Schedule of an IMEM Generator in an IMEM Interval shall be its Day-Ahead IMEM Schedule determined in accordance with Section 3.4.1 plus its total Ex-Ante Contract Allocation for that IMEM Interval. 

3.4.2.3The Day-Ahead Schedule of an IMEM Load Curtailment Resource in an IMEM Interval shall be equal to its Day-Ahead IMEM Schedule determined in accordance with Section 3.4.1 for that IMEM Interval. 

3.4.3IMEM Schedule Optimization Model 

3.4.3.1The IMEM Schedule Optimization Model determines the Day-Ahead IMEM Schedule of each IMEM Resource for an IMEM Interval. 

3.4.3.2The objective of the IMEM Schedule Optimization Model shall be to minimize the total cost of purchasing energy from IMEM Offers in order to meet the IMEM Demand. 

3.4.3.3In formulating the IMEM Schedule Optimization Model, the IMEM Operator shall ensure that the determination of the Day-Ahead IMEM Schedule of IMEM Resources is made subject to: 

(a)Constraints representing the Offered Capacities of IMEM Resources; 

(b)Constraints representing the Offer Type of IMEM Resources; and 

(c)An energy balance equation ensuring that the IMEM Demand will be met. 

3.4.3.4In the case of IMEM Offers with equal Offer Prices, the IMEM Schedule Optimization Model shall prioritize the IMEM Offers of IMEM Generators over the IMEM Offers of IMEM Load Curtailment Resources. For IMEM Offers of IMEM Resources in the same IMEM Resource sub-category with equal Offer Prices, they shall be scheduled based on a Random Daily Priority, which is generated and assigned to all IMEM Resources on a daily basis. 

3.4.4IMEM Day-Ahead Price 

3.4.4.1The IMEM Day-Ahead Price for an IMEM Trading Interval shall correspond to the highest Offer Price fully or partially scheduled by the IMEM Schedule Optimization Model for that IMEM Trading Interval. 

3.4.4.2The IMEM Day-Ahead Price is the price that applies to the settlement of IMEM Resources in accordance with Chapter 5 of these IMEM Rules. 

3.4.5IMEM Merit Order Table 

3.4.5.1For each IMEM Interval, the IMEM Operator shall construct the IMEM Merit Order Table, which shall consist of, but is not limited to,: 

(a)The IMEM Offers submitted for that IMEM Interval ranked in  order of Offer Price; and 

(b)the total Ex-Ante Contract Allocation of each IMEM Generator. 

3.4.5.2The IMEM Merit Order Table shall include columns identifying the following for each IMEM Offer: 

(a)The IMEM Resource; 

(b)The Offer Type; 

(c)Whether or not the Offered Capacity can be used for Upward Dispatch; and 

(d)Whether or not the Offered Capacity can be used for Downward Dispatch. 

3.4.5.3The IMEM Merit Order Table shall also include a column specifying the Cumulative Offered Capacity that is the sum of all Offered Capacities and Ex-Ante Contract Allocations below that point. 

3.4.5.4The IMEM Merit Order Table shall also include columns indicating whether the IMEM Offer has, in accordance with Section 3.4.1, been scheduled and the megawatt quantity that has been scheduled from that IMEM Offer. 

3.4.5.5In the case of IMEM Offers with equal Offer Prices, the IMEM Offers of IMEM Generators shall be prioritized over the IMEM Offers of IMEM Load Curtailment Resources. For IMEM Offers of IMEM Resources in the same IMEM Resource sub-category with equal Offer Prices, they shall be ordered based on a Random Daily Priority, which is generated and assigned to all IMEM Resources on a daily basis. 

3.4.6Implementation of the Day-Ahead Schedules 

3.4.6.1Each day, all IMEM Resources shall review their Day-Ahead Schedule determined by the IMEM Operator for the following day. 

3.4.6.2If an IMEM Resource has a non-zero Day-Ahead Schedule for any IMEM Interval in the following day, it shall take all necessary actions to prepare for meeting its Day-Ahead Schedule in each IMEM Interval. 

3.4.6.3In each IMEM Interval that an IMEM Resource has a non-zero Day-Ahead Schedule, it shall use reasonable endeavours to achieve a linear ramp rate over the IMEM Interval to reach its Day-Ahead Schedule at the end of the IMEM Interval. 

3.4.6.4If an IMEM Resource is not technically capable of maintaining a linear ramp rate over the IMEM Trading Interval, it shall endeavour to inject or withdraw a quantity of energy consistent with the quantity that would have been injected or withdrawn if a linear ramp rate had been maintained. 

3.4.6.5If for any reason an IMEM Resource foresees that it will not be able to meet its Day-Ahead Schedule by the end of an IMEM Interval, it shall inform the Mindanao System Operator immediately. 

3.5IN-DAY DISPATCH OF IMEMRESOURCES 

3.5.1In-Day Dispatch Instructions 

3.5.1.1Up until one (1) hour prior to the start of each IMEM Interval, the Mindanao System Operator shall issue In-Day Dispatch Instructions to IMEM Resources to meet any changes in system requirements in accordance with this Section 3.5. 

3.5.1.2In issuing In-Day Dispatch Instructions, the Mindanao System Operator shall follow the IMEM Merit Order Table received from the IMEM Operator while taking into account the 

Offer Type and ability to provide in-day dispatch of the facilities established in accordance with Clauses 2.3.2.4 and 2.3.2.5, respectively. 

3.5.1.3In-Day Dispatch Instructions shall be either: 

(a)An Upward Dispatch Instruction to provide additional supply in excess of the IMEM Resource’s Day-Ahead IMEM Schedule; or 

(b)A Downward Dispatch Instruction to reduce supply below the IMEM Resource’s Day-Ahead IMEM Schedule. 

3.5.1.4An In-Day Dispatch Instruction shall specify the gross instantaneous MW value to be provided by the IMEM Resource at the end of the relevant IMEM Interval (the “Dispatch Target”). 

3.5.1.5For clarity, an Upward Dispatch Instruction to an IMEM Load Curtailment Resource is an instruction to curtail load more than its Day-Ahead IMEM Schedule, and a Downward Dispatch Instruction to an IMEM Load Curtailment Resource is an instruction to not curtail load in its Day-Ahead IMEM Schedule. 

3.5.1.6In-Day Dispatch Instructions may be issued for any IMEM Interval for which the Mindanao System Operator has received an IMEM Merit Order Table, including IMEM Intervals that are not IMEM Trading Intervals and so do not have an IMEM Demand. 

3.5.2In-Day Dispatch in Exceptional Circumstances 

3.5.2.1In-Day Dispatch Instructions are not intended to be used for services that would normally be provided through contracted Ancillary Services, however, in exceptional circumstances when it is necessary for the secure and reliable operation of the Mindanao Power System, the Mindanao System Operator may, in accordance with the relevant IMEM Manual, depart from the provisions of Section 3.5.1 by: 

(a)Issuing an In-Day Dispatch Instruction that deviates from the order specified in the IMEM Merit Order Table; or by 

(b)Issuing an In-Day Dispatch Instruction after the deadline set in Clause 3.5.1.1, including within the IMEM Interval for which the In-Day Dispatch Instruction applies. 

3.5.2.2The Mindanao System Operator, in consultation with the IMEM Operator shall maintain and publish an IMEM Manual setting forth the grounds and procedures for departing from the provisions of Section 3.5.1. 

3.5.2.3For each In-Day Dispatch Instruction issued under Clause 3.5.2.1, the Mindanao System Operator shall estimate the quantity, in MWh, that the IMEM Resource was expected to supply during that IMEM Interval if it had fully complied with the In-Day Dispatch Instruction. 

3.5.2.4For each In-Day Dispatch Instruction issued under Clause 3.5.2.1, the Mindanao System Operator shall submit a brief report providing its reasons for departing from the provisions of Sections 3.5.1 to the effected IMEM Resources, the IMEM Operator, the DOE and the ERC. 

3.5.2.5If a situation requires departure from the provisions of Section 3.5.1 that will impact the dispatch and operation of a significant number of IMEM Resources, the Mindanao System Operator may, rather than operate under the provisions of this Section 3.5.2, opt to operate under the provisions of Chapter 7 of these IMEM Rules by declaring an IMEM Emergency. 

3.5.3Implementation of In-Day Dispatch Instructions 

3.5.3.1If an IMEM Resource is issued an In-Day Dispatch instruction by the Mindanao System Operator, it shall take all necessary actions to prepare for implementing the instruction in the specified IMEM Interval. 

3.5.3.2In each IMEM Interval that an IMEM Resource has been issued an In-Day Dispatch Instruction, it shall use reasonable endeavours to achieve a linear ramp rate over the IMEM Interval to reach the Dispatch Target at the end of the IMEM Interval. 

3.5.3.3If an IMEM Resource is not technically capable of maintaining a linear ramp rate over the IMEM Interval, it shall endeavour to inject or withdraw a quantity of energy consistent with the quantity that would have been injected or withdrawn if a linear ramp rate had been maintained. 

3.5.3.4If for any reason an IMEM Resource is unable to meet the Dispatch Target by the end of the specified IMEM Interval, it shall inform the Mindanao System Operator immediately. 

3.5.4Forced Outages 

3.5.4.1If an IMEM Resource suffers a Forced Outage which reduces its available capacity, it shall, as soon as possible, make a Forced Outage Declaration to the Mindanao System Operator, including a statement of the updated available capacity for that IMEM Resource excluding any capacity affected by the Forced Outage. 

3.5.4.2Upon receipt of a Forced Outage Declaration, the Mindanao System Operator shall not issue any further In-Day Dispatch Instructions to the affected IMEM Resource for any IMEM Interval for which the Forced Outage impacts the IMEM Resource’s capability to meet its Day-Ahead Schedule. 

3.5.5Recording and Reporting on In-Day Dispatch Events 

3.5.5.1The Mindanao System Operator shall keep a log that includes, at a minimum, all In-Day Dispatch Instructions issued to IMEM Resources within the preceding six (6) months. 

3.5.5.2Each day by 1500H, the Mindanao System Operator shall submit a report to the IMEM Operator and the DOE which includes the following: 

(a)In-Day Dispatch Instructions that it issued on the preceding day; 

(b)Energy estimates computed in accordance with Clause 3.5.2.3; 

(c)Actual Loadings for each IMEM Generator at the end of each IMEM Interval on the preceding day; and  

(d)Forced Outage Declarations made by IMEM Resources foreach IMEM Trading Intervals in the Billing Period. 

3.6IMEMTRADING INTERVALS WITH INSUFFICIENT SUPPLY 

3.6.1Insufficient Supply Condition 

3.6.1.1In any IMEM Trading Interval for which the total Offered Capacity of all IMEM Offers is insufficient to meet the IMEM Demand in that IMEM Trading interval, the IMEM Trading Interval shall be declared by the IMEM Operator as having an Insufficient Supply Condition. 

3.6.1.2For clarity, in an IMEM Trading Interval with Insufficient Supply Condition, the IMEM Day-Ahead Price shall still be determined in accordance with Clause 3.4.4.1. 

3.6.2Load-To-Maintain 

3.6.2.1In any IMEM Trading Interval for which an Insufficient Supply Condition has been declared, the IMEM Operator shall calculate a Load-To-Maintain (LTM) level for each IMEM Customer, which it shall submit to the Mindanao System Operator together with the Day-Ahead Schedule and Day-Ahead IMEM Schedule of all IMEM Resources. 

3.6.2.2The Load-To-Maintain values shall be in megawatts (MW) expressed to a precision of one decimal place (0.1MW, or 100kW). 

3.6.2.3If an IMEM Customer’s nominated Customer IMEM Demand is zero (0) then its Load-To-Maintain shall equal its total Ex-Ante Contract Allocation. 

3.6.2.4The IMEM Operator shall calculate each IMEM Customer’s Load-To-Maintain by distributing the total Offered Capacity of all IMEM Offers across all IMEM Customers on a pro-rata basis based on their Customer IMEM Demand and adding the same to the total Ex-Ante Contract Allocation of each IMEM Customer. 

Chapter 4– Metering 

4.1METERING SERVICES 

4.1.1Provision of Metering Services 

4.1.1.1Metering Services for a facility of an IMEM Trading Participant that is directly connected to the Mindanao Grid will be provided by the National Grid Corporation of the Philippines. 

4.1.1.2Metering Services for a facility of an IMEM Trading Participant directly connected to a Mindanao Distribution System will be provided by the Mindanao Distribution Utility that owns that Mindanao Distribution System. 

4.1.2Registration of IMEM Metering Services Providers 

An entity identified to provide Metering Services in accordance with Section 4.1.1 shall be registered in the IMEM as an IMEM Metering Services Provider in accordance with Chapter 2 of these IMEM Rules. 

4.2OBLIGATIONS RELATED TO METERING SERVICES 

4.2.1IMEM Metering Services Providers 

4.2.1.1IMEM Metering Services Providers shall be responsible for ensuring that registered Metering Installations directly connected to their system are compliant with the provisions of this Chapter 4 and the relevant IMEM Manual. 

4.2.1.2IMEM Metering Services Providers shall be responsible for the retrieval, collection and validation of Metering Data from the Metering Installations they are responsible for. 

4.2.1.3IMEM Metering Services Providers shall be responsible for supplying settlement-ready Metering Data to the IMEM Operator and, in case of Metering Data error, shall be responsible for the substitution of the affected Metering Data in accordance with this Chapter 4. 

4.2.1.4IMEM Metering Services Providers shall not make, cause or allow any alteration to the original stored data in a Metering Installation; and shall use reasonable endeavours to ensure that no other person or entity does the same. 

4.2.2IMEM Operator 

4.2.2.1The IMEM Operator shall be responsible for ensuring that facilities of IMEM Trading Participants have valid Metering Data for all IMEM Trading Intervals for the purposes of billing and settlement. 

4.2.2.2The IMEM Operator shall maintain and publish an IMEM Manual that:  

(a)Describes the class and accuracy requirements of Metering Installations;  

(b)Defines the procedures that IMEM Metering Services Providers and the IMEM Operator must undertake to validate, estimate, correct or substitute erroneous Metering Data; 

(c)Defines the information that must be contained in the Metering Services Provider Database of the IMEM Metering Services Provider and the Metering Database of the IMEM Operator; and 

(d)Other relevant procedures to implement the provisions of this Chapter 4. 

4.3METERING INSTALLATIONS 

4.3.1Registration of Metering Installations 

4.3.1.1A Metering Installation located at the Connection Point of a facility of an IMEM Trading Participant to its IMEM Network Service Provider shall be registered with the IMEM Operator by the IMEM Metering Services Provider responsible for the Metering Installation in accordance with the relevant IMEM Manual. 

4.3.1.2The IMEM Operator shall deregister Metering Installations from the IMEM in accordance with the grounds and procedures in the relevant IMEM Manual. 

4.3.2Metering Installation Requirements 

4.3.2.1A registered Metering Installation shall comply in all respects with the requirements of the Grid Code for facilities directly connected to the Mindanao Grid or the Distribution Code for facilities directly connected to a Mindanao Distribution System and the relevant IMEM Manual being implemented by the IMEM Operator. 

4.3.2.2A registered Metering Installation shall: 

(a)Be accurate in accordance with this Chapter 4, the Grid Code, the Distribution Code and relevant IMEM Manual; 

(b)Contain a device which has a visible or an equivalently accessible display of Metering Data and which allows Metering Data to be accessed and read at the same time by portable computer or other equipment of a type or specification reasonably acceptable to all entities who are entitled to have access to that Metering Data; 

(c)Have electronic data recording facilities such that all Metering Data can be measured and recorded in all IMEM Intervals; 

(d)Where bi-directional active energy flows occur, be capable of separately registering and recording flows in each direction; 

(e)Have a Meter having an internal data logger capable of storing the Metering Data for at least sixty (60) days and have a back-up storage facility enabling Metering Data to be stored for at least forty-eight (48) hours in the event of external power failure; 

(f)Have an active energy meter, and, if required in accordance with the Grid Code or Distribution Code, a reactive energy meter having an internal data logger; 

(g)Have protection from unauthorized interference, both intentional and inadvertent, by having a secure housing for metering equipment or have the security at its Metering Point be adequate to protect against such interference; and 

(h)Have protection of its Metering Data from local or remote electronic access or manipulation of data by having suitable security electronic access controls. 

4.3.3Use of Meters 

4.3.3.1A registered Metering Installation shall be used by the IMEM Operator as the primary source of Metering Data for the settlement of the transactions of IMEM Trading Participants. 

4.3.3.2Notwithstanding any other provision of this Chapter 4, the IMEM Operator will not be liable to any person or entity in respect of any inaccuracies, discrepancies or other defects in Metering Data, including Metering Data which is stored in the Metering Database; 

provided that these do not arise from the gross negligence or wilful misconduct of the IMEM Operator. 

4.3.3.3Where a Metering Installation is used for purposes in addition to the provision of Metering Data to the IMEM Operator then: 

(a)That use shall not be inconsistent with, or cause any IMEM Member to breach any requirements of these IMEM Rules, the Grid Code and Distribution Code or any applicable laws; and 

(b)The IMEM Metering Services Provider shall coordinate the entities that use the Metering Installation for such other purposes to ensure compliance with this Clause 4.3.3.3. 

4.3.4Performance of Metering Installations 

4.3.4.1IMEM Metering Services Providers shall ensure that Metering Data being transmitted to the IMEM Operator are: 

(a)Within the applicable accuracy parameters described in the Grid Code, the Distribution Code and relevant IMEM Manual; and  

(b)Within the time required for settlement and at a level of availability of at least ninety-nine per cent (99%) per annum or as otherwise agreed between the IMEM Operator and the IMEM Metering Services Provider. 

4.3.4.2If a Metering Installation malfunctions or a defect occurs, the IMEM Metering Services Provider shall ensure that repairs shall be made as soon as practicable and, in any event, within two (2) days from the occurrence of the defect or malfunction unless otherwise extended by the IMEM Operator upon request of the IMEM Metering Services Provider. 

4.3.4.3An IMEM Member who becomes aware of a Metering Installation malfunction or other defect shall advise the IMEM Metering Services Provider and the IMEM Operator immediately after it was detected. 

4.3.5Meter Time 

4.3.5.1The IMEM Metering Services Provider shall ensure that all Metering Installations and data logger clocks are referenced to Philippine Standard Time. 

4.3.5.2The time of the Meters shall be set within an accuracy of plus or minus one second of Philippine Standard Time. 

4.4METERING DATA 

4.4.1Data Transfer and Collection 

4.4.1.1The IMEM Metering Services Provider shall retrieve the Metering Data from the Meter and transmit the same to the IMEM Operator within the period set out in the relevant IMEM Manual.  

4.4.1.2The IMEM Metering Services Provider must be capable of sending Metering Data in the required format to the IMEM Operator. 

4.4.1.3The IMEM Metering Services Provider shall, at its own cost, ensure that Metering Data derived from a Metering Installation for which it is responsible for shows the time and date 

at which it is recorded and is in accordance with the requirements of the IMEM Operator as provided in the relevant IMEM Manual. 

4.4.2Metering Services Provider Database 

4.4.2.1The IMEM Metering Services Provider shall create, maintain and administer a Metering Services Provider Database. 

4.4.2.2The IMEM Metering Services Provider shall ensure that each associated IMEM Trading Participant as well as the IMEM Operator is given access to the information in its Metering Services Provider Database at all reasonable times and:  

(a)In the case of data sixteen (16) months old or less, within seven (7) Business Days of receiving written notice from the person or entity seeking access; and 

(b)In the case of data more than sixteen (16) months old, within thirty (30) Business Days of receiving written notice from the person or entity seeking access. 

4.4.2.3The IMEM Metering Services Provider shall ensure that its Metering Services Provider Database contains the information specified in the relevant IMEM Manual. 

4.4.3Metering Database 

4.4.3.1The IMEM Operator shall create, maintain and administer a Metering Database, which shall include a metering register containing information for each Metering Installation registered with the IMEM Operator and should be consistent with the Metering Installation registration data of the IMEM Metering Services Provider. 

4.4.3.2The Metering Database shall include Metering Data and data substituted in accordance with Section 4.4.5 of this Chapter 4 and all calculations made for settlement purposes. 

4.4.3.3Data shall be stored in the Metering Database: 

(a)For sixteen (16) months in accessible format; and 

(b)For ten (10) years in archive. 

4.4.4Rights of Access to Metering Data 

4.4.4.1The only entities entitled to have either direct or remote access to Metering Data on a read-only basis from the Metering Database in relation to a Metering Installation are: 

(a)Any IMEM Member with respect to the Metering Data in relation to a Metering Installation registered to it; 

(b)Any IMEM Generator who is a contract counterparty to an IMEM Customer to whom the Metering Data in relation to the registered Metering Installation relates; 

(c)The IMEM Metering Services Provider who is responsible for the Metering Installation; 

(d)The IMEM Operator and its authorized agents; 

(e)The DOE; and 

(f)The ERC. 

4.4.4.2Metering Data identifiable to an IMEM Member shall be treated by the IMEM Operator as confidential and shall be subject to the provisions of 5.6.4.4 of the IMEM Rules. 

4.4.5Validation and Substitution of Metering Data 

4.4.5.1IMEM Metering Services Providers shall perform validation of the Metering Data of Metering Installations it is responsible for in accordance with the relevant IMEM Manual. 

4.4.5.2In case of Metering Data error, the IMEM Metering Services Provider shall: 

(a)Perform estimation in order to derive corrected Metering Data in accordance with the procedures set out in relevant IMEM Manual; 

(b)Present the corrected or substituted Metering Data to the IMEM Operator and the affected IMEM Trading Participant within two (2) Business Days from the detection of the error; and 

(c)Perform the obligations set out in this Clause 4.4.5.2 notwithstanding any Dispute raised by the affected IMEM Trading Participant. 

4.4.5.3The IMEM Operator shall perform final validation of the Metering Data submitted by the IMEM Metering Services Providers in accordance with the relevant IMEM Manual. 

4.4.5.4In case of Metering Data error, the IMEM Operator shall notify the IMEM Metering Services Provider that submitted the erroneous Metering Data of the error. The IMEM Metering Services Provider shall address the Metering Data error in accordance with Clause 4.4.5.2. If corrected Metering Data has not been submitted to the IMEM Operator two (2) daysprior to the transmittal of Metered Quantity data to IMEM Trading Participants, the IMEM Operator shall estimate and substitute Metering Data in accordance with the relevant IMEM Manual. If the above date does not fall on a Business Day, the due date shall be the next Business Day. 

4.4.5.5If an IMEM Metering Services Provider provides corrected Metering Data to the IMEM Operator within one (1) year after the issuance of the Final Settlement Statement for the Billing Period where the IMEM Trading Interval of the corrected Metering Data belongs to, the IMEM Operator shall include in the Settlement Statements of affected IMEM Trading Participants for the next Billing Period the adjustments that resulted from the use of the corrected Metering Data. 

4.4.5.6In case of Dispute with respect to the substitution implemented by the IMEM Metering Services Provider under Clause 4.4.5.2, the IMEM Metering Services Provider shall issue a certification on the corrected or substituted Metering Data, which shall be submitted to the IMEM Operator and the affected IMEM Trading Participant. 

Chapter 5– Settlement and Billing 

5.1SETTLEMENT TIMETABLE 

5.1.1Frequency of Settlement and Billing 

5.1.1.1The IMEM Operator shall calculate Settlement Quantities and Settlement Amounts for each IMEM Resource and each IMEM Customer in each IMEM Trading Interval. 

5.1.1.2Calculation of Settlement Quantities and Settlement Amounts and billing of IMEM Members shall be performed monthly for the preceding Billing Period, which shall be a one month period starting on the 26th day of a calendar month and ending on the 25th day of the following month. 

5.1.2Timetable for Settlement and Billing 

5.1.2.1Within five (5) days from the end of the Billing Period, the IMEM Operator shall make available to each IMEM Trading Participant the Metered Quantities and IMEM Adjusted Metered Quantities of that IMEM Trading Participant for all IMEM Intervals in that Billing Period. 

5.1.2.2Subject to Section 5.2.2, IMEM Generators who hold contracts with IMEM Customers shall, in consultation with their contract counterparties, declare to the IMEM Operator Ex-Post Contract Quantities for each contract counterparty in each IMEM Trading Interval no later than three (3) days after Metered Quantities and IMEM Adjusted Metered Quantities for that IMEM Trading Interval are made available by the IMEM Operator. 

5.1.2.3No later than the 7th day of the calendar month, the IMEM Operator shall issue a Preliminary Settlement Statement to each IMEM Trading Participant in accordance with Section 5.5.1. 

5.1.2.4No later than the 15th day of the calendar month, the IMEM Operator shall issue a Final Settlement Statement to each IMEM Trading Participant in accordance with Section 5.5.2. 

5.1.2.5IMEM Trading Participants shall pay the IMEM Operator and the IMEM Operator shall pay IMEM Trading Participants in accordance with Section 5.5.4. 

5.1.2.6The IMEM Operator shall maintain and publish an IMEM Manual that defines: 

(a)The procedures which the IMEM Operator and IMEM Trading Participants must follow in relation to settlement, billing, collections and payment;  

(b)The methods and processes used by the IMEM Operator for calculating its net exposure to IMEM Trading Participants and enforcement measures to maintain compliance with the requirements of Section5.6; and 

(c)Any other relevant procedures required to implement the provisions of this Chapter 4. 

5.2SETTLEMENT QUANTITIES 

5.2.1Metered Quantities 

5.2.1.1In each IMEM Trading Interval, the IMEM Operator shall determine the Metered Quantity for each IMEM Resource and each IMEM Customer. 

5.2.1.2The Metered Quantity for an IMEM Customer which is not an IMEM Load Curtailment Resource is the net quantity of energy withdrawn from the Mindanao Grid by that IMEM Customer during an IMEM Trading Interval as measured in the Metering Data, where net withdrawal is a negative number. 

5.2.1.3The Metered Quantity for an IMEM Load Curtailment Resource is the net quantity of energy sent out into or withdrawn from the Mindanao Grid or a Distribution Network by that IMEM Load Curtailment Resource during an IMEM Trading Interval as measured in the Metering Data, where net injection is a positive number and net withdrawal is a negative number. 

5.2.1.4The Metered Quantity for an IMEM Generator is the net quantity of energy sent out into the Mindanao Grid or a Distribution Network by an IMEM Generator during an IMEM Interval as measured in the Metering Data, where net injection is a positive number. 

5.2.2Ex-Post Contract Quantities 

5.2.2.1An IMEM Generator shall declare, for each IMEM Trading Interval, the Ex-Post Contract Quantities of the IMEM Customers which are its contract counterparties as both: 

(a)The MWh output of the IMEM Generator allocated for supplying the contracted energy, expressed as a positive number; and 

(b)The MWh energy withdrawal at the IMEM Customer’s Connection Point that is covered by the contracted energy, expressed as a negative number. 

5.2.2.2The difference between the absolute values of the quantities declared under Clauses 5.2.2.1(a) and 5.2.2.1(b) shall accurately reflect the losses between the Connection Point of the IMEM Generator and the Connection Point in the Mindanao Grid of the IMEM Customer. 

5.2.2.3Subject to Clause 5.2.2.4, the absolute values of the quantities declared for a Grid IMEM Load Curtailment Resource and was scheduled in the relevant IMEM Trading Interval, shall equal the Ex-Ante Contract Allocations declared for that Grid IMEM Load Curtailment Resource as an IMEM Customer under Section 3.2.5. 

5.2.2.4If the Metered Quantity of an IMEM Generator declaring Ex-Post Quantities to IMEM Customers who are also IMEM Load Curtailment Resources, is less than the sum of its Ex-Ante Contract Allocations declared under Section 3.2.5 or, if altered, under Section 3.2.6 then the absolute value of the quantities declared for its IMEM Customers who are also IMEM Load Curtailment Resources shall not be less than its Ex-Ante Contract Allocation to each IMEM Load Curtailment Resource multiplied by the ratio of its Metered Quantity and the sum of its Ex-Ante Contract Allocations declared under Section 3.2.5 or, if altered, under Section 3.2.6. 

5.2.2.5The quantity declared under Clause 5.2.2.1(a) shall always be greater than the absolute value of the quantity declared under Clause 5.2.2.1(b), except where the IMEM Customer is also the IMEM Network Service Provider for the IMEM Generator’s Connection Point. 

5.2.2.6The sum of all Ex-Post Contract Quantities declared under Clause 5.2.2.1(a) by an IMEM Generator for each IMEM Trading Interval shall be no more than the Metered Quantity of that IMEM Generator in that IMEM Trading Interval. 

5.2.2.7Subject to Clause 5.2.2.3, the sum of all Ex-Post Contract Quantities declared under Clause 5.2.2.1(b) to an IMEM Customer for each IMEM Trading Interval shall be no less than the IMEM Adjusted Metered Quantity of that IMEM Customer in that IMEM Trading Interval. 

5.2.3Scheduled and Dispatched Quantities 

5.2.3.1The IMEM Operator shall determine the Scheduled Quantity for each IMEM Resource as the average of its Day-Ahead Schedules at the beginning and end of the relevant IMEM Trading Interval. 

5.2.3.2The IMEM Operator shall determine the Dispatched Quantity for each IMEM Resource as the average of the most recent Day-Ahead Schedules or Dispatch Targets, whichever is applicable, applying to that IMEM Resource at the beginning and end of the IMEM Trading Interval.  

5.2.3.3For the purposes of calculating the Scheduled Quantity or Dispatched Quantity under this Section 5.2.3, if the previous IMEM Interval was not an IMEM Trading Interval then the Day-Ahead Schedule at the beginning of the IMEM Trading Interval shall be taken as: 

(a)For an IMEM Generator, the Actual Loading at the beginning of the IMEM Trading Interval; and 

(b)For an IMEM Load Curtailment Resource, zero. 

5.2.3.4For an IMEM Resource issued with an In-Day Dispatch Instruction under Clause 3.5.2.1, the IMEM Operator shall use the quantity estimated by the Mindanao System Operator for that IMEM Resources for that IMEM Interval in accordance with Clause 3.5.3.2 as the Dispatched Quantity of that IMEM Resource for the IMEM Interval. 

5.2.4Expected Demand Quantity 

5.2.4.1Subject to Clause 5.2.4.2, the Expected Demand of an IMEM Customer is the total Ex-Ante Contract Allocation for that IMEM Customer plus its Customer IMEM Demand. 

5.2.4.2In any IMEM Trading Interval for which an Insufficient Supply Condition has been declared, the Expected Demand for an IMEM Customer is the Load-to-Maintain for that IMEM Customer determined in accordance with Section 3.6.2. 

5.2.4.3The Expected Demand Quantity of an IMEM Customer or IMEM Load Curtailment Resource shall be determined as the average of its Expected Demands at the beginning and end of the IMEM Trading Interval, expressed as a negative number. 

5.2.5Variation Tolerance 

5.2.5.1For each IMEM Trading Interval, the IMEM Operator shall calculate a Variation Tolerance for each IMEM Resource and IMEM Customer. 

5.2.5.2The IMEM Operator shall determine the Variation Tolerance as: 

(a)For an IMEM Generator and IMEM Load Curtailment Resource, three percent (3%) of its Dispatched Quantity; or 

(b)For an IMEM Customer, three percent (3%) of its Expected Demand Quantity, expressed as a positive number. 

5.2.5.3For clarity, if an IMEM Load Curtailment Resource has no Day-Ahead IMEM Schedule and has not received an In-Day Dispatch Instruction then its Variation Tolerance shall be computed in accordance with Clause 5.2.5.2(b). In addition, if an IMEM Load Curtailment Resource has a Day-Ahead IMEM Schedule but receives an In-Day Dispatch Instruction not to curtail then its Variation Tolerance shall also be computed in accordance with Clause 5.2.5.2(b). 

5.2.6Trading Quantities of IMEM Customers 

5.2.6.1The IMEM Operator shall determine the IMEM Trading Quantity of each IMEM Customer which is not an IMEM Load Curtailment Resource as its IMEM Adjusted Metered Quantity less its Ex-Post Contract Quantity. 

5.2.6.2The IMEM Adjusted Metered Quantity of an IMEM Customer is determined as its Metered Quantity less: 

(a)The Metered Quantities of all IMEM Embedded Generators for which the IMEM Customer is the IMEM Network Service Provider; and  

(b)The differences between the Metered Quantity and the Expected Demand Quantity of all IMEM Load Curtailment Resources which have Day-Ahead Schedules or In-Day Dispatch Instructions in that IMEM Trading Interval and for which the IMEM Customer is the IMEM Network Service Provider. 

5.2.6.3The Ex-Post Contract Quantity of an IMEM Customer, which is not an IMEM Load Curtailment Resource, is determined as the sum of all Ex-Post Contract Quantities declared by IMEM Generators for that IMEM Customer in accordance with Section 5.2.1. 

5.2.7Variation Quantities of IMEM Customers 

5.2.7.1For each IMEM Customer, the IMEM Operator shall determine the Upwards Customer Variation Quantity or Downwards Customer Variation Quantity. 

5.2.7.2The Upwards Customer Variation Quantity of an IMEM Customer is determined as the greater of: 

(a)Zero; and 

(b)Its IMEM Adjusted Metered Quantity less its Expected Demand Quantity less its Variation Tolerance. 

5.2.7.3The Downwards Customer Variation Quantity of an IMEM Customer is determined as the greater of: 

(a)Zero; and 

(b)Its Expected Demand Quantity less its IMEM Adjusted Metered Quantity less its Variation Tolerance. 

5.2.8Trading Quantities of IMEM Load Curtailment Resources 

5.2.8.1The IMEM Operator shall determine the IMEM Trading Quantity of each IMEM Load Curtailment Resource in each IMEM Trading Interval. 

5.2.8.2For a Grid IMEM Load Curtailment Resource that has a Day-Ahead Schedule or an In-Day Dispatch Instruction for the relevant IMEM Trading Interval, its IMEM Trading Quantity for that IMEM Trading Interval is determined as its Metered Quantity less the sum of all Ex-Post Contract Quantities declared for that IMEM Customer in that IMEM Trading Interval under Clause 5.2.2.1(b). 

5.2.8.3For a Grid IMEM Load Curtailment Resource that does not have a Day-Ahead Schedule or an In-Day Dispatch Instruction for the relevant IMEM Trading Interval, its IMEM Trading Quantity shall be determined in accordance with Section 5.2.6. For clarity, the IMEM Trading Participant shall not be treated as an IMEM Load Curtailment Resource but as an IMEM Customer for that IMEM Trading Interval in the absence of a Day-Ahead Schedule or an In-Day Dispatch Instruction. 

5.2.8.4For an IMEM Load Curtailment Resource which is not also an IMEM Customer, or Embedded IMEM Load Curtailment Resource, and has a Day-Ahead Schedule or an In-Day Dispatch Instruction for that IMEM Trading Interval, its IMEM Trading Quantity is determined as its Metered Quantity less its Expected Demand Quantity. 

5.2.8.5For an Embedded IMEM Load Curtailment Resource that does not have a Day-Ahead Schedule or an In-Day Dispatch Instruction for that IMEM Trading Interval, its IMEM Trading Quantity shall be zero. 

5.2.9Variation Quantities of IMEM Load Curtailment Resources 

5.2.9.1The IMEM Operator shall determine the Upwards Dispatched Quantity or Downwards Dispatched Quantity of each IMEM Load Curtailment Resource with an In-Day Dispatch Instruction in each IMEM Trading Interval. 

5.2.9.2The IMEM Operator shall determine the Upwards Resource Variation Quantity or Downwards Resource Variation Quantity of each IMEM Load Curtailment Resource with a Day-Ahead Schedule or an In-Day Dispatch Instruction in each IMEM Trading Interval. 

5.2.9.3For a Grid IMEM Load Curtailment Resource that does not have a Day-Ahead Schedule or an In-Day Dispatch Instruction for the relevant IMEM Trading Interval, its variation quantities shall be determined in accordance with Section 5.2.7. For clarity, the IMEM Trading Participant shall not be treated as an IMEM Load Curtailment Resource but as an IMEM Customer for that IMEM Trading Interval in the absence of a Day-Ahead Schedule or an In-Day Dispatch Instruction. 

5.2.9.4The Upwards Dispatched Quantity of an IMEM Load Curtailment Resource is determined as the greater of: 

(a)Zero; and 

(b)The lesser of its Dispatched Quantity and the difference of its Metered Quantity and its Expected Demand Quantity, less its Scheduled Quantity less its Variation Tolerance. 

5.2.9.5The Downwards Dispatched Quantity of an IMEM Load Curtailment Resource is determined as the greater of: 

(a)Zero; and 

(b)Its Scheduled Quantity less the greater of its Dispatched Quantity and the difference of its Metered Quantity and its Expected Demand Quantity, less its Variation Tolerance. 

5.2.9.6The Upwards Resource Variation Quantity of an IMEM Load Curtailment Resource is determined as the greater of: 

(a)Zero; and 

(b)Its Metered Quantity less its Dispatched Quantity less its Expected Demand Quantity less its Variation Tolerance. 

5.2.9.7The Downwards Resource Variation Quantity of an IMEM Load Curtailment Resource is determined as the greater of: 

(a)Zero; and 

(b)Its Expected Demand Quantity plus its Dispatched Quantity less its Metered Quantity less its Variation Tolerance. 

5.2.10Trading Quantities of IMEM Generators 

The IMEM Operator shall determine the IMEM Trading Quantity of each IMEM Generator in each IMEM Trading Interval as the Metered Quantity less the sum of all Ex-Post Contract Quantities declared by the IMEM Generator for that IMEM Trading Interval in accordance with Clause 5.2.2.1(a). 

5.2.11Variation Quantities of IMEM Generators 

5.2.11.1The IMEM Operator shall determine the Upwards Dispatched Quantity or Downwards Dispatched Quantity of each IMEM Generator with an In-Day Dispatch Instruction in each IMEM Trading Interval. 

5.2.11.2The IMEM Operator shall determine the Upwards Resource Variation Quantity or Downwards Resource Variation Quantity of each IMEM Generator with a Day-Ahead Schedule or an In-Day Dispatch Instruction in each IMEM Trading Interval. 

5.2.11.3The Upwards Dispatched Quantity of an IMEM Generator is determined as the greater of: 

(a)Zero; and 

(b)The lesser of its Dispatched Quantity and its Metered Quantity, less its Scheduled Quantity less its Variation Tolerance. 

5.2.11.4The Downwards Dispatched Quantity of an IMEM Generator is determined as the greater of: 

(a)Zero; and 

(b)Its Scheduled Quantity less the greater of its Dispatched Quantity and its Metered Quantity, less its Variation Tolerance. 

5.2.11.5The Upwards Resource Variation Quantity of an IMEM Generator is determined as the greater of: 

(a)Zero; and 

(b)Its Metered Quantity less its Dispatched Quantity less its Variation Tolerance. 

5.2.11.6The Downwards Resource Variation Quantity of an IMEM Generator is determined as the greater of: 

(a)Zero; and 

(b)Its Dispatched Quantity less its Metered Quantity less its Variation Tolerance. 

5.3SETTLEMENT PRICE AND ADJUSTMENT RATES 

5.3.1Settlement Price 

5.3.1.1The price used for settlement purposes shall be the IMEM Day-Ahead Price for an IMEM Trading Interval determined under Section 3.4.4 for that IMEM Trading Interval. 

5.3.1.2For IMEM Trading Intervals where no IMEM Day-Ahead Price was determined under Section 3.4.4, as can occur if In-Day Dispatch is required, the IMEM Day-Ahead Price shall be zero. 

5.3.2Settlement Adjustment Rates for Variation Quantities 

5.3.2.1For IMEM Trading Participants for which variation quantities have been determined in accordance with Sections 5.2.7, 5.2.9 and 5.2.11, the IMEM Operator shall determine the applicable premium or penalty rate, for settlement purposes, by multiplying the IMEM Base 

Variation Price for the relevant IMEM Trading Interval with the corresponding adjustment factor as set out in this Section 5.3.2. 

5.3.2.2The IMEM Base Variation Price for an IMEM Trading Interval shall be the IMEM Day-Ahead Price for that IMEM Trading Interval, except that if no IMEM Day-Ahead Price was determined in accordance with Section 3.4.4, it shall be the average Day-Ahead IMEM Price over all IMEM Trading Intervals in the thirty (30) days prior to the relevant IMEM Trading Interval. 

5.3.2.3The Upwards In-Day Dispatch Premium Rate and Downwards In-Day Dispatch Premium Rate are ten percent (10%) of the IMEM Base Variation Price for the relevant IMEM Trading Interval, with the subsequent Upwards Dispatch Premium Amount and Downwards Compensation Amount calculated as a positive number. 

5.3.2.4The Upwards Resource Variation Penalty Rate and Downwards Resource Variation Penalty Rate are one-hundred percent (100%) of the IMEM Base Variation Price for the relevant IMEM Trading Interval, with the subsequent Upwards or Downwards Resource Variation Penalty Amount calculated as a negative number. 

5.4SETTLEMENT AMOUNTS 

5.4.1Trading Interval Supply Amounts of IMEM Resources 

5.4.1.1The IMEM Operator shall determine the Resource Supply Amount of each IMEM Resource ineach IMEM Trading Interval as the sum of its Resource Energy Settlement Amount, its Upwards Dispatch Compensation Amount and its Downwards Dispatch Compensation Amount determinedin accordance with Clause 5.4.1.2, Clause 5.4.1.4 and Clause 5.4.1.5 of these IMEM Rules. 

5.4.1.2The Resource Energy Settlement Amount of an IMEM Resource in an IMEM Trading Interval is determined as the sum of: 

(a)The Resource Energy Amount, which is the product of the IMEM Day-Ahead Price and its IMEM Trading Quantity; 

(b)The Upwards Resource Variation Penalty Amount, which is the product of the Upwards Variation Penalty Rate and the Upwards Resource Variation Quantity, expressed as a negative number; 

(c)Subject to Clause 5.4.1.3, the Downwards Resource Variation Penalty Amount, which is the product of the Downwards Variation Penalty Rate and the Downwards Resource Variation Quantity, expressed as a negative number; and 

(d)If its Upwards Resource Variation Penalty Amount or Downwards Resource Variation Penalty Amount is non-zero, the lesser of the absolute value of its Upwards Resource Variation Penalty Amount or Downwards Resource Variation Penalty Amount and its Resource Dispatch Compensation Recovery Amount. 

5.4.1.3The Downwards Resource Variation Penalty Amount of an IMEM Resource for an IMEM Trading Interval where a Forced Outage Declaration from the IMEM Resource for that IMEM Trading Interval was reported by the Mindanao System Operator under Clause 3.5.5.2 shall be zero (0). 

5.4.1.4The Upwards Dispatch Compensation Amount of an IMEM Resource is determined as the sum of: 

(a)Its Upwards Dispatch Premium Amount, which is the product of the Upwards In-Day Dispatch Premium Rate and its Upwards Dispatched Quantity; and 

(b)Its Upwards Dispatch Cost Recovery Amount, which shall be calculated for each IMEM Resource with an In-Day Dispatch Instruction and an Offer Price exceeding the IMEM Day-Ahead Price and is the product of its Upward Dispatched Quantity plus its Variation Tolerance, and the difference between its Offer Price and the IMEM Day-Ahead Price. 

5.4.1.5The Downwards Dispatch Compensation Amount of an IMEM Resource is determined as the product of the Downwards In-Day Dispatch Premium Rate and its Downwards Dispatched Quantity. 

5.4.1.6For each IMEM Resource that has a non-zero Dispatch Compensation Amount in an IMEM Trading Interval, the IMEM Operator shall, based on the report of the Mindanao System Operator provided under Clause 3.5.5.2, determine whether the In-Day Dispatch Instruction that resulted in the Dispatch Compensation Amount was issued under Section 3.5.1 or under Section 3.5.2 and shall associate the Dispatch Compensation Amount accordingly for the purpose of calculating the Dispatch Compensation Recovery Rates under Section 5.4.3. 

5.4.2Trading Interval Amounts of IMEM Customers 

5.4.2.1The IMEM Operator shall determine the Customer Supply Amount for each IMEM Customer in each IMEM Trading Interval as the product of the IMEM Customer Energy Price and the IMEM Trading Quantity, provided that the Customer Supply Amount shall be zero (0) for any IMEM Customer for which the IMEM Trading Quantity is greater than zero (0). 

5.4.2.2The IMEM Customer Energy Price is determined as the ratio of: 

(a)The total Resource Energy Settlement Amounts of all IMEM Resources; and 

(b)The total IMEM Trading Quantities of all IMEM Customers with negative IMEM Trading Quantities. 

5.4.2.3In an IMEM Trading Interval in which Resource Energy Settlement Amounts are calculated for IMEM Resources, but there are no IMEM Customers with negative IMEM Trading Quantities, the total Resource Energy Settlement Amounts for that IMEM Trading Interval shall be designated as the Unrecovered Resource Energy Settlement Amount for that IMEM Trading Interval, and shall be recovered from Settlement Amounts in proportion to each IMEM Customer’s share of the total IMEM consumption for the Billing Period. 

5.4.3Trading Interval Dispatch Compensation Recovery Rates 

5.4.3.1The Upwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 is determined as the ratio of: 

(a)The total Upwards Dispatch Compensation Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.1 of all IMEM Resources; and 

(b)The total Downwards Resource Variation Quantities and Downwards Customer Variation Quantities of all IMEM Resources and IMEM Customers. 

5.4.3.2The Downwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 is determined as the ratio of: 

(a)The total Downwards Dispatch Compensation Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.1 of all IMEM Resources; and 

(b)The total Upwards Resource Variation Quantities and Upwards Customer Variation Quantities of all IMEM Resources and IMEM Customers. 

5.4.3.3In an IMEM Trading Interval in which either: 

(a)Upwards Dispatch Compensation Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.1 are calculated for IMEM Resources but there are no IMEM Customers with Downwards Customer Variation Quantities or IMEM Resources with Downwards Resource Variation Quantities; or 

(b)Downwards Dispatch Compensation Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.1 are calculated for IMEM Resources but there are no IMEM Customers with Upwards Customer Variation Quantities or IMEM Resources with Upwards Resource Variation Quantities; 

The IMEM Operator shall recalculate, with no Variation Tolerance, the Upwards or Downwards (whichever is applicable) Customer and Resource Variation Quantities for all IMEM Resources and IMEM Customers, and use the recalculated quantities when determining Upwards and Downwards Dispatch Compensation Recovery Rates associated with In-Day Dispatch Instructions issued under Section 3.5.1 as set out in this Section 5.4.3, and the Resource and Customer Dispatch Compensation Recovery Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.1 for each IMEM Resource and IMEM Customer as set out in Section 5.4.4. 

5.4.3.4The Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.2 is determined as the ratio of: 

(a)The sum of the Upwards Dispatch Compensation Amounts and Downwards Dispatch Compensation Amounts associated with In-Day Dispatch Instructions issued under Section 3.5.2 of all IMEM Resources; and 

(b)The total IMEM Adjusted Metered Quantities of all IMEM Customers. 

5.4.4Trading Interval Dispatch Compensation Recovery Amounts  

5.4.4.1The IMEM Operator shall determine the Resource Dispatch Compensation Recovery Amount for each IMEM Resource in each IMEM Trading Interval as the sum of: 

(a)The product of the Downwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 and its Upwards Resource Variation Quantity; and 

(b)The product of the Upwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 and its Downwards Resource Variation Quantity. 

5.4.4.2The IMEM Operator shall determine the Customer Dispatch Compensation Recovery Amount for each IMEM Customer in each IMEM Trading Interval as the sum of: 

(a)The product of the Downwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 and its Upwards Customer Variation Quantity; 

(b)The product of the Upwards Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.1 and its Downwards Customer Variation Quantity; and 

(c)The product of the Dispatch Compensation Recovery Rate associated with In-Day Dispatch Instructions issued under Section 3.5.2 and its IMEM Adjusted Metered Quantity. 

5.4.5Total Trading Interval Amounts 

5.4.5.1The IMEM Operator shall determine the Customer Interval Settlement Amount for each IMEM Customer in each IMEM Trading Interval as its Customer Supply Amount less its Customer Dispatch Compensation Recovery Amount. 

5.4.5.2The IMEM Operator shall determine the Resource Interval Settlement Amount for each IMEM Resource in each IMEM Trading Interval as its Resource Supply Amount less its Resource Dispatch Compensation Recovery Amount. 

5.4.6Billing Period Settlement Amounts 

The IMEM Operator shall determine the Settlement Amount for each IMEM Trading Participant in each Billing Period as the sum of all Resource Interval Settlement Amounts and Customer Interval Settlement Amounts in the Billing Period, less: 

(a)Any Market Fees; and 

(b)Any allocation of Unrecovered Resource Energy Settlement Amounts. 

5.5BILLING AND PAYMENT 

5.5.1Preliminary Settlement Statements 

5.5.1.1A Preliminary Settlement Statement: 

(a)Shall set out the settlement calculations for an IMEM Trading Participant and the Settlement Amount payable by or to that IMEM Trading Participant for the relevant Billing Period; 

(b)Shall include supporting data for all amounts payable sufficient to enable each IMEM Trading Participant to audit the calculation of the amount payable by or to that IMEM Trading Participant ; and 

(c)Is issued for purposes of audit and review by the IMEM Trading Participant, and is not binding for invoicing, collection and payment purposes. 

5.5.1.2If an IMEM Trading Participant determines that there is an error or discrepancy in the Preliminary Settlement Statement, it shall notify the IMEM Operator of the error or discrepancy. 

5.5.1.3If notified by an IMEM Trading Participant under Clause 5.5.1.2, the IMEM Operator shall review the calculations used to produce the Preliminary Settlement Statement to verify the errors or discrepancies reported. 

5.5.1.4If the IMEM Operator determines that there is an error or discrepancy in any Preliminary Settlement Statement that has already been issued, it shall ensure that the correction is reflected in the relevant Final Settlement Statement, provided that corrections requiring the input of an external party are received by the IMEM Operator at least two (2) Business Days before the deadline of the issuance of the Final Settlement Statements. If the IMEM Operator receives notice of an error, discrepancy or correction of an earlier identified error after their relevant deadlines, the correction will be reflected as an adjustment in the settlement statements of the succeeding Billing Period. 

5.5.2Final Settlement Statements 

5.5.2.1A Final Settlement Statement: 

(a)Shall set out the settlement calculations for an IMEM Trading Participant and the Settlement Amount payable by or to that IMEM Trading Participant for the relevant Billing Period; 

(b)Shall include supporting data for all amounts payable sufficient to enable each IMEM Trading Participant to audit the calculation of the amount payable by or to that IMEM Trading Participant ; and 

(c)Shall be the basis for invoicing, collection and payment, and is binding for those purposes. 

5.5.2.2Subject to Clause 5.5.2.3, if the IMEM Operator determines that there is an error or discrepancy in any Final Settlement Statement that has already been issued, it shall ensure that the correction is reflected in the next Final Settlement Statement to be issued to that IMEM Trading Participant. 

5.5.2.3Subject to Clause 4.4.5.5, if the error or discrepancy in Clause 5.5.2.2 requires input data from an external party, then the relevant responsible party shall submit the correct data within two (2) Business Days of the issuance of the Final Settlement Statement in which the adjustment is to be included. Otherwise, the correction shall be reflected in the Final Settlement Statement for the following Billing Period. 

5.5.3Disputes on Settlement Statements 

5.5.3.1If an IMEM Trading Participant determines that there is an error in a Final Settlement Statement or its supporting data, and, despite notice to the IMEM Operator, the same has not been corrected in accordance with Clause 5.5.2.2 or Clause 5.5.2.3, an IMEM Trading Participant may lodge a Dispute with the IMEM Operator in respect of any amount stated in the Final Settlement Statement or its supporting data. 

5.5.3.2Disputes lodged under Clause 5.5.3.1 must be lodged within twelve (12) calendar months of the date of issuance of the relevant Final Settlement Statement. 

5.5.3.3IMEM Trading Participants and the IMEM Operator shall settle settlement Disputes in accordance with Section 8.3. 

5.5.4Payments 

5.5.4.1The IMEM Trading Participants are responsible to pay the Settlement Amounts to the IMEM Operator and the same shall be paid by the IMEM Operator to the IMEM Trading Participants to whom payments are due. 

5.5.4.2Where the Settlement Amount for an IMEM Trading Participant is a negative amount, the IMEM Trading Participant shall pay that amount to the IMEM Operator. 

5.5.4.3Where the Settlement Amount for an IMEM Trading Participant is a positive amount, the IMEM Operator shall pay that amount to the IMEM Trading Participant. 

5.5.4.4Each IMEM Trading Participant shall pay to the IMEM Operator all amounts due under a Final Settlement Statement for a Billing Period in cleared funds, no later than 1500H of the twenty-fifth day of the month following the end of the Billing Period, without need of prior demand, whether or not the IMEM Trading Participant disputes the amount payable. 

5.5.4.5Subject to Section 5.5.5, the IMEM Operator shall pay to each IMEM Trading Participant all amounts payable under a Final Settlement Statement not later than 1500H on the third Business Day after the date specified in Clause 5.5.4.4. 

5.5.4.6If any of the stated due dates in this Section 5.5.4 do not fall on a Business Day, the due date shall be the next Business Day. 

5.5.5Default 

5.5.5.1A Default event occurs when the amounts collected by the IMEM Operator under Clause 5.5.4.4, including all amounts drawn from the prudential security, is insufficient to pay for the aggregate settlement amounts due. 

5.5.5.2When a Default event occurs, the IMEM Operator shall: 

(a)Collect the total amount of Market Fees due for the Billing Period from the amounts collected; and 

(b)Pay each IMEM Trading Participant from the remaining amounts collected in the proportion that the amount due to them for the Billing Period bears to the total amount due to all IMEM Trading Participants for that Billing Period; and 

(c)Pay the remainder of the monies due to affected IMEM Trading Participants not later than 1500H on the third Business Day after the collection of the shortfall from the defaulting IMEM Trading Participant. 

5.5.5.3IMEM Operator shall issue a Notice of Default to the defaulting IMEM Trading Participant within one (1) Business Day of the Default event occurring. The Notice of Default shall specify the total amount due including the default interest calculated under Clause 5.5.6.5. The defaulting IMEM Trading Participant shall pay the total amount specified in the Notice of Default in cleared funds no later than one (1) Business Day after the receipt of the Notice of Default to avoid further default interest charges. 

5.5.5.4If the defaulting IMEM Trading Participant fails to pay the total amount specified in the Notice of Default by the deadline specified in Clause 5.5.5.3, the IMEM Operator shall issue a Suspension Notice as soon as practicable. 

5.5.5.5The IMEM Operator shall not be liable for any delays in the remittances to IMEM Trading Participants due to shortfall or delay in the payments from the defaulting IMEM Trading Participants. 

5.5.5.6The amount of the default interest shall be prioritized over the principal amount of the outstanding obligation in the distribution of payment. 

5.5.6Conditions of Payment 

5.5.6.1All payments under Section 5.5.4 shall be made in cleared funds on or before the due date. 

5.5.6.2The IMEM Operator shall ensure that an electronic funds transfer facility is provided and made available for all IMEM Trading Participants for the purposes of facilitating collection and payment of the Settlement Amounts duefor all IMEM transactions. 

5.5.6.3Unless otherwise authorized by the IMEM Operator, all IMEM Trading Participants shall use the electronic funds transfer facility provided by the IMEM Operator under Clause 5.5.6.2 for the settlement of IMEM transactions and the payment of Market Fees. 

5.5.6.4All relevant bank charges shall be to the account of the IMEM Trading Participant. 

5.5.6.5If an IMEM Trading Participant fails to pay in full the amount due by the stated due date, the IMEM Trading Participant shall be charged default interest on the unpaid amount at the rate equivalent to the prevailing lending rate published by the Bangko Sentral ng Pilipinas (BSP) plus 300 basis points or a fixed rate of 8% per annum whichever is higher for each day of delay until fully paid. Where no interest rate is published or made available for a 

particular day, the most recent interest rate published or made available shall be used. The default interest shall be reckoned from the first day such amount is due and payable, up to and including the date on which payment is made, with interest computed based on a 360-day year. 

5.5.6.6IMEM Trading Participants shall promptly pay all obligations whether or not the amounts payable are the subject of a Dispute. 

5.5.6.7When the IMEM Operator believes that the IMEM participant is incapable to comply with the requirements under this Section 5.5 or the requirements of Section 5.6, the IMEM Operator may exercise its right to immediately demand payment for the settlement amounts, even prior to the deadline of payment by the IMEM participant under Clause 5.5.4.4. 

5.6PRUDENTIAL SECURITY 

5.6.1Overview 

5.6.1.1Prudential Security Requirements are imposed to ensure the effective operation of the IMEM by providing a level of comfort that IMEM Trading Participants will meet their obligations to make payments as required under the IMEM Rules. 

5.6.1.2Subject to Clause 5.6.1.3, an IMEM Trading Participant shall provide and maintain a prudential security complying with the requirements of this Section 5.6. 

5.6.1.3The IMEM Operator may exempt an IMEM Trading Participant from the requirement to provide a prudential security under Clause 5.6.1.1, if the IMEM Operator believes that: 

(a)It is likely that the amount payable by the IMEM Operator to that IMEM Trading Participant under the IMEM Rules will consistently exceed the amount payable to the IMEM Operator by that IMEM Trading Participant under the IMEM Rules in respect of that Billing Period; or 

(b)It is unlikely that the IMEM Trading Participant will be required to pay any amounts to the IMEM Operator. 

5.6.1.4If, under Clause 5.6.1.3, the IMEM Operator has exempted an IMEM Trading Participant from the requirement to provide a prudential security under Clause 5.6.1.1, then the IMEM Operator may vary or cancel the exemption at any time by giving written notice of the variation or cancellation of the exemption to the IMEM Trading Participant. 

5.6.2Amount and Form of Prudential Security 

5.6.2.1Subject to Clause 5.6.1.3, each Pending IMEM Member and Mandatory Participant shall provide its expected Average Exposure to the IMEM Operator in respect of the previous six (6) Billing Periods, or such other information in accordance with the relevant IMEM Manual, whichshall be the basis of the Prudential Security Requirements of the IMEM Trading Participant or Pending IMEM Member. 

5.6.2.2The IMEM Operator shall provide written confirmation of acceptance of the submission in Clause 5.6.2.1 to the IMEM Trading Participant or Pending IMEM Member. For Pending IMEM Members, the submission is a prerequisite to be registered as an IMEM Member. 

5.6.2.3The IMEM Operator may review and change its determination of an IMEM Trading Participant’s Average Exposure at any time, provided that any change to an IMEM Trading 

Participant’s Average Exposure will apply no earlier than thirty (30) days from the date that the IMEM Operator notifies the IMEM Trading Participant of the change. 

5.6.2.4Each IMEM Trading Participant shall ensure that at all times the aggregate undrawn and unclaimed amounts of current and valid prudential security held by the IMEM Operator in respect of that IMEM Trading Participant is not less than that IMEM Trading Participant’s Average Exposure. 

5.6.2.5The prudential security provided by an IMEM Trading Participant under this Section 5.6 shall be in cash. 

5.6.3Exposure Monitoring and Margin Calls 

5.6.3.1Regularly, the IMEM Operator shall monitor its Actual Exposure to each IMEM Trading Participant in respect of previous Billing Periods under the IMEM Rules. 

5.6.3.2Before the end of each calendar year, the IMEM Operator shall review the Average Exposure of the IMEM Trading Participant. If the IMEM Operator reasonably considers that the amount of prudential security being maintained by any IMEM Trading Participant has become inadequate or exceeds the Average Exposure, considering the level of its transactions in the IMEM, it shall notify the IMEM Trading Participant of the discrepancy and shall require to post an additional prudential security in the event that amount of security is inadequate. 

5.6.3.3The IMEM Trading Participant shall post the additional amount of prudential security determined under Clause 5.6.3.2 no later than the date required by the IMEM Operator. 

5.6.3.4If the amount of the prudential security maintained by an IMEM Trading Participant has exceeded the Average Exposure in six (6) consecutive Billing Periods, the IMEM Trading Participant may opt to refund the excess amount from the IMEM Operator; provided that no default incident occurred during same period.  

5.6.3.5If, at any time, the IMEM Operator’s Actual Exposure to an IMEM Trading Participant exceeds the amount of the prudential security maintained by that IMEM Trading Participant, the IMEM Operator shall make a Margin Call by giving notice to the IMEM Trading Participant. The IMEM Trading Participant must satisfy the Margin Call within the period determined under Clause 5.6.3.7 by providing additional prudential security sufficient to the required amount or prepaying the amount of payable sufficient to reduce the Actual Exposure. 

5.6.3.6The prepayment under Clause 5.6.3.5 shall be applied to the settlement amount in the closest Billing Period until fully consumed. 

5.6.3.7The IMEM Trading Participant shall satisfy the Margin Call under Clause 5.6.3.5 not later than the end of banking hours on the third Business Day to occur after receipt of the Margin Call. 

5.6.3.8If an IMEM Trading Participant fails to satisfy a Margin Call under Clause 5.6.3.7, or fails to provide adequate prudential security under Clause 5.6.3.3, then the IMEM Operator shall give the IMEM Trading Participant a Suspension Notice. 

5.6.3.9If, even without a Margin Call, the IMEM Trading Participant becomes aware that its prudential security has deteriorated and its aggregate value has become less than its Average Exposure, it shall immediately replace or replenish the same to the required amount. 

5.6.4Drawdown of Prudential Security 

5.6.4.1In the event that an IMEM Trading Participant fails to pay its obligations by the due date, the IMEM Operator may immediately draw on the prudential security provided by the IMEM Trading Participant, without need of prior consent. 

5.6.4.2If the IMEM Operator draws down on the prudential security provided by an IMEM Trading Participant, the IMEM Operator shall notify the IMEM Trading Participant of the date and amount of the drawdown within one (1) Business Day after the drawdown. 

5.6.4.3The IMEM Trading Participant shall replenish its prudential security by the amount specified in the drawdown notice not later than the end of banking hours on the second Business Day after the IMEM Operator notified them under Clause 5.6.4.2. 

5.6.4.4If an IMEM Trading Participant fails to replenish its prudential security deposit under Clause 5.6.4.3 then the IMEM Operator shall give the IMEM Trading Participant a Suspension Notice. 

Chapter 6  Market Information 

6.1MARKET INFORMATION 

6.1.1Provision of Information 

6.1.1.1The IMEM Operator shall: 

(a)Disseminate information which it acquires pursuant to the IMEM Operator’s functions in accordance with its rights, powers and obligations in a manner which promotes ease of entry into and the orderly operation of the IMEM; and 

(b)Protect such information from any use or access contrary to the provisions of the IMEM Rules. 

6.1.1.2Pursuant to Clause 6.1.1.1, the IMEM Operator shall specifically perform the following: 

(a)Maintain, adhere to and publish an IMEM Manual to disseminate and protect information; 

(b)Maintain and publish a data catalogue, listing each type of market information and document produced or exchanged in accordance with the IMEM Rules, and setting out the timing and frequency of publication or transfer for each type of information and document; and 

(c)Maintain and publish electronic communication procedures under which information shall be exchanged between the IMEM Operator, the Mindanao System Operator and IMEM Members, as set out in Section 6.1.2. 

6.1.1.3The IMEM Operator, the Mindanao System Operator and IMEM Members shall publish and transfer market information in accordance with the procedures and timetable described in Clause 6.1.1.2. 

6.1.1.4In addition to any specific obligation of the IMEM Operator under the IMEM Rules to provide information, the IMEM Operator shall, upon request, make available to IMEM Members any information concerning the operation of the IMEM provided that said information is not confidential or commercially sensitive. The IMEM Operator may charge a fee reflecting the cost of providing such information. 

6.1.1.5The IMEM Operator shall make available to the ERC all pertinent information which would help the latter effectively perform its regulatory function. 

6.1.1.6The IMEM Operator shall make available to the DOE all pertinent information which would help the latter effectively perform its energy policy-making function. 

6.1.1.7The IMEM Operator shall provide the ERC and DOE all necessary facilities to effectively monitor the operation of the IMEM, in real-time and for review purposes. 

6.1.1.8The IMEM Operator shall retain all information provided to it under the IMEM Rules for at least five (5) years in a form it deems appropriate for reasonable access as may be required by the ERC or the DOE. 

6.1.2Electronic Information Exchange 

6.1.2.1Where these IMEM Rules specify, require or otherwise contemplate the regular and frequent transfer of information between any of the IMEM Operator, the Mindanao System 

Operator and IMEM Members, such transfer shall be provided by means of an electronic communication system unless the IMEM Rules specify otherwise. 

6.1.2.2Information transferred by means of an electronic communication system shall be in accordance with the templates included in the said electronic communication system and the electronic communication procedures published under Clause 6.1.1.2 (c). 

6.1.2.3As far as practicable, the IMEM Operator shall incorporate a binding acknowledgement receipt in its electronic communication systems which would establish the time the pertinent information is actually received. 

6.1.3Market Information Website 

6.1.3.1The IMEM Operator shall regularly maintain a Market Information Website in which it will publish information for access by IMEM Members or for the general public. 

6.1.3.2Information is deemed to be published by the IMEM Operator when the information is posted on the Market Information Website and made available to the general public. 

6.1.3.3The IMEM Operator shall publish information on the IMEM Demand and IMEM Prices on the Market Information Website. 

6.1.3.4The IMEM Operator shall maintain and publish a list of all IMEM Members that identifies: 

(a)Current, former and suspended IMEM Members; 

(b)Categories of IMEM Members; and 

(c)Dates of registration, de-registration and change of status. 

6.1.3.5The IMEM Operator shall provide hard copies of any information published under this Section 6.1.3 upon request and reimbursement of cost to produce the same. The IMEM Operator may further evaluate the necessity of reimbursement of cost from the requesting entity. 

6.2CONFIDENTIALITY OF INFORMATION 

6.2.1Confidentiality 

6.2.1.1The IMEM Operator shall maintain and publish a record of the confidentiality status for each type of market information and document produced or exchanged in accordance with the IMEM Rules. 

6.2.1.2All IMEM Members, the IMEM Operator and the Mindanao System Operator: 

(a)Shall not disclose confidential information to any person or entity except as permitted by the IMEM Rules; 

(b)Shall only use or reproduce confidential information for the purpose for which it was disclosed or for a purpose consistent with the IMEM Rules; 

(c)Shall only allow access to confidential information to those persons for whom access is necessary; 

(d)Shall use all reasonable endeavours to prevent unauthorized access to confidential information which is in its possession or control; and 

(e)Shall ensure that any person or entity to whom it discloses confidential information observes the provisions of this Section 6.2 in relation to that information. 

6.2.2Exceptions 

6.2.2.1This Section 6.2 does not prevent the disclosure of information (confidential or otherwise) by any persons or entities: 

(a)If the relevant information is at that time generally and publicly available other than as a result of a breach of this Section 6.2; or 

(b)With the written consent of the person or persons who provided the relevant information under the IMEM Rules; or 

(c)To the ERC, DOE, NEA, MinDA or any other government authority having jurisdiction over an IMEM Member, pursuant to the IMEM Rules or otherwise; or 

(d)By or on behalf of an IMEM Member or the IMEM Operator for the purposes of or in connection with: 

(i)Complying with the IMEM Rules, or advising an IMEM Member or the IMEM Operator in relation to the IMEM Rules; or 

(ii)Legal proceedings, arbitration, expert determination or other dispute resolution mechanisms relating to the IMEM, or advising an entity in relation thereto; or 

(iii)Financing arrangements, investment or a disposal of assets; 

Provided that the person receiving the information undertakes in writing not to further disclose that information to any other person; or 

(e)For the purposes of: 

(i)The operation, security and planning of the Mindanao Power System in accordance with the Grid Code; or 

(ii)Protecting the safety of personnel or equipment; or 

(iii)Complying with any instrument (including any contractual instrument or understanding governing the relationship between the parties); 

6.2.2.2Any entity who receives information disclosed in accordance with Clause 6.2.2.1: 

(a)Shall not disclose the information to any person, except as provided by the IMEM Rules; and 

(b)Shall only use the information for the purposes for which it was disclosed under Clause 6.2.2.1. 

6.2.2.3In the case of a disclosure under Clause 6.2.2.1(c), the disclosing partyshall take appropriate precautions to ensure that the recipient keeps the information confidential in accordance with the provisions of this Section 6.2 and only uses the information for the purposes for which it was disclosed. 

6.2.3Indemnity and Survival 

6.2.3.1Each IMEM Member indemnifies the IMEM Operator against any claim, action, damage, loss, liability, expense or outgoing which the IMEM Operator pays, suffers, incurs or is liable for in respect of any breach of this Section 6.2 by that IMEM Member or any officer, agent or employee of that IMEM Member, provided that no IMEM Member shall be liable for any of the foregoing to the extent they arise from the gross negligence or wilful misconduct of the IMEM Operator. 

6.2.3.2Notwithstanding any other provision of the IMEM Rules, a person shall continue to comply with this Section 6.2 after that person has ceased to be an IMEM Member. 

Chapter 7– System Security and Market Suspension 

7.1MARKET SUSPENSION 

7.1.1Market Suspension and Intervention 

7.1.1.1The ERC may declare the operation of the IMEM to be suspended in any situation which competent governmental authorities declare to be a local, national, or international emergency, and which will render the IMEM ineffective. 

7.1.1.2The IMEM Operator and the Mindanao System Operator may intervene in the operation of the IMEM for any IMEM Interval for which: 

(a)The Mindanao System Operator has declared an IMEM Emergency under Clause 7.2.1.1 or Clause 7.3.2.1; or 

(b)The IMEM Operator has notified a Force Majeure Event under Clause 7.4.2.2. 

7.1.1.3Regardless of whether the beginning or end of an IMEM Emergency or Force Majeure Event is declared or notified before, at, or after the actual beginning or end of the event, the IMEM Operator and the Mindanao System Operator may declare an IMEM Intervention in any IMEM Interval to which the IMEM Emergency or Force Majeure Event applies. 

7.1.1.4In the event of market suspension IMEM Members and Pending IMEM Members shall follow all directions of the ERC. If the ERC makes no specific direction, IMEM Members and Pending IMEM Members shall follow the same protocols as are in place for IMEM Intervention. 

7.1.1.5In the event of an IMEM Intervention: 

(a)The Mindanao System Operator shall be responsible for giving directions to and coordinating the actions of IMEM Network Service Providers; 

(b)IMEM Network Service Providers are responsible for giving directions to and coordinating the actions of IMEM Trading Participants directly connected to their system; and 

(c)The Mindanao System Operator and the IMEM Operator shall coordinate their actions to restore normal operation of the Mindanao Power System and the IMEM. 

7.1.1.6IMEM Trading Participants acknowledge that: 

(a)The operation of the Mindanao Power System involves risks to public safety and property and therefore accepts that the provisions of this Chapter 7 are appropriate and reasonable; 

(b)Their business interests will be subordinate to the need for the IMEM Operator and Mindanao System Operator to implement emergency procedures in accordance with Section 7.2.1 and to make declarations and issue emergency directions under Section 7.2.2 in an emergency; and 

(c)Subject to (a), the Mindanao System Operator shall issue emergency directions, and shall report such action to the IMEM Operator. 

7.1.1.7Nothing in this Chapter 7 shall limit the ability of the Mindanao System Operator or IMEM Operator to take any action or procedure under this Chapter 7 which either the Mindanao System Operator or the IMEM Operator considers in their absolute discretion to be necessary to protect persons, property, or the environment. 

7.1.1.8Notwithstanding any other provision contained in these IMEM Rules, the DOE or the ERC may investigate or require explanations regarding any market suspension or IMEM Intervention. 

7.1.2Exemption from Liability due to Market Suspension and Intervention 

7.1.2.1In the event of market suspension or IMEM Intervention, any action of the IMEM Operator, the Mindanao System Operator or an IMEM Trading Participant in compliance with the emergency procedures provided in this Chapter 7 shall not constitute a breach of the IMEM Rules, except in the case of an act committed in bad faith or gross negligence. 

7.1.2.2Neither the IMEM Operator, nor the Mindanao System Operator, nor any IMEM Network Service Provider shall be liable for any loss incurred by an IMEM Trading Participant as a result of any action taken by the Mindanao System Operator or IMEM Operator under this Chapter 7. 

7.1.3Declaration of Market Suspension and Intervention 

7.1.3.1When the ERC declares the suspension of the IMEM, the ERC shall notify the IMEM Operator as soon as possible. 

7.1.3.2When the IMEM Operator is notified that the IMEM has been suspended, the IMEM Operator shall notify IMEM Members and Pending IMEM Members as soon as possible. 

7.1.3.3The IMEM is deemed suspended at the start of the IMEM Interval in which the ERC advises the IMEM Operator that the IMEM is suspended.  

7.1.3.4Following a declaration by the ERC under Clause 7.1.1.1, the IMEM is to remain suspended until the ERC notifies the IMEM Operator that IMEM operations may resume. 

7.1.3.5When the IMEM Operator is notified that IMEM operations may resume, the IMEM Operator shall promptly notify IMEM Members and Pending IMEM Members of the resumption, and of the IMEM Interval in which IMEM operations will resume. 

7.1.3.6The IMEM is deemed to resume at the start of the IMEM Interval which the IMEM Operator has notified to IMEM Members and Pending IMEM Members. 

7.1.3.7Notwithstanding the suspension, the Mindanao System Operator may issue directions in the event of an IMEM Emergency to IMEM Members and Pending IMEM Members. 

7.1.3.8When the IMEM Operator determines that it needs to intervene in the operation of the IMEM, it shall notify the Mindanao System Operator and IMEM Trading Participants as soon as possible. 

7.1.4Effect of Market Suspension and Intervention 

7.1.4.1During an IMEM Interval in which the IMEM is suspended, the IMEM Rules will continue to apply with such modifications as the IMEM Operator reasonably determines to be necessary, taking into consideration the circumstances and conditions giving rise to the suspension. 

7.1.4.2Notwithstanding the suspension, the IMEM Operator may declare any IMEM Interval in which the IMEM is suspended to be an IMEM Trading Interval, in accordance with the relevant IMEM Manual. 

7.1.4.3In the event of IMEM Intervention, the IMEM Rules will continue to apply, and all IMEM processes shall remain in place, except that the Mindanao System Operator is not required 

to consider the IMEM Merit Order Table when issuing In-Day Dispatch Instructions for IMEM Trading Intervals affected by the IMEM Intervention. 

7.1.4.4During any IMEM Trading Interval in which the IMEM is suspended, or in which IMEM Intervention has occurred, the IMEM Operator shall determine the Settlement Quantities and Settlement Amounts in accordance with Chapter 5 of these IMEM Rules. 

7.1.4.5If the IMEM Operator reasonably believes that, due to the circumstances of the market suspension or IMEM Intervention, it is inappropriate to apply the pricing and settlement provisions of the IMEM Rules to a particular IMEM Trading Interval, the IMEM Operator shall determine appropriate alternate mechanisms for pricing and settlement in those IMEM Trading Intervals, and shall seek approval of same from the IGC and the ERC. 

7.1.4.6If the IMEM Operator is seeking approval to apply alternate pricing and settlement mechanisms for an IMEM Trading Interval, and the alternate pricing and settlement mechanisms have not been approved in time to allow the IMEM Operator to meet the settlement timetable for the affected Billing Period, the IMEM Operator shall issue Settlement Statements for the affected Billing Period excluding any amounts for the affected IMEM Trading Interval. 

7.1.5Market Suspension Reports 

7.1.5.1Within ten (10) Business Days following a declaration of market suspension under Clause 7.1.1.1, the IMEM Operator shall prepare a market suspension report. 

7.1.5.2The Mindanao System Operator shall submit to the IMEM Operator an assessment of the impact of the market suspension to the Mindanao Grid within seven (7) Business Days following a declaration of market suspension under Clause 7.1.1.1. 

7.1.5.3The market suspension report prepared by the IMEM Operator shall include: 

(a)The grounds for suspension; 

(b)The duration of suspension;  

(c)The actions taken to address the events that led to suspension; 

(d)An assessment of the impact of the market suspension to the IMEM; and 

(e)The assessment of the impact of the market suspension to the Mindanao Grid submitted by the Mindanao System Operator in accordance with Clause 7.1.5.2. 

7.1.5.4A copy of the market suspension report shall be provided to the IGC, the ERC, and the DOE upon completion of the report. 

7.1.5.5A copy of the market suspension report shall be provided to IMEM Members and other interested persons on request. 

7.1.5.6When requested, the IMEM Operator shall provide the DOE any other report regarding the market suspension as early as practicable. 

7.1.6Intervention Reports 

7.1.6.1Within ten (10) Business Days following any IMEM Intervention under Clause 7.1.1.2, the IMEM Operator shall prepare an IMEM Intervention report. 

7.1.6.2The Mindanao System Operator shall submit to the IMEM Operator an assessment of the impact of the IMEM Intervention to the Mindanao Grid within seven (7) Business Days following a declaration of an IMEM Intervention under Clause 7.1.1.2. 

7.1.6.3The IMEM Intervention report prepared by the IMEM Operator shall include: 

(a)The grounds for IMEM Intervention; 

(b)The duration of IMEM Intervention; 

(c)The actions taken to address the events that led to IMEM Intervention; 

(d)  An assessment of the impact of the IMEM Intervention to the IMEM; and 

(e)The assessment of the impact of the IMEM Intervention to the Mindanao Grid submitted by the Mindanao System Operator in accordance with Clause 7.1.6.2. 

7.1.6.4A copy of the IMEM Intervention report shall be provided to the IGC, the ERC, and the DOE upon completion of the report. 

7.1.6.5A copy of the IMEM Intervention report shall be provided to IMEM Members and other interested persons on request. 

7.1.6.6When requested, the IMEM Operator shall provide the DOE any other report regarding the market intervention as early as practicable. 

7.2EMERGENCIES 

7.2.1Declaration of Emergencies 

7.2.1.1The Mindanao System Operator may declare an IMEM Emergency when it determines the existence of a situation which: 

(a)Has an adverse material effect on electricity supply, or which poses as a significant threat to system security in accordance with Clause 7.3.2.1; and 

(b)The Mindanao System Operator cannot address without significant departure from either the Day-Ahead IMEM Schedules of the IMEM Resources or the IMEM Merit Order Table as further described in the relevant IMEM Manual. 

7.2.1.2An IMEM Emergency may include: 

(a)A Mindanao Power System disturbance due to an outage in the Mindanao Power System; 

(b)A significant environmental phenomenon, including weather, storms or fires which are likely to or are significantly affecting the Mindanao Power System; 

(c)Material damage to the Mindanao Power System; and 

(d)Any other situation in which the Day-Ahead IMEM Schedules of IMEM Resources or IMEM Merit Order Table cannot be implemented. 

7.2.1.3An IMEM Member shall notify the Mindanao System Operator as soon as practicable of: 

(a)Any event or situation which, in the reasonable opinion of the IMEM Member is of a kind described in Clause 7.2.1.2; and 

(b)Any action taken by the IMEM Member under its safety procedures or otherwise in response to that event or situation. 

7.2.2Actions in an IMEM Emergency 

7.2.2.1When an IMEM Emergency arises, the Mindanao System Operator shall: 

(a)Notify the IMEM Operator immediately; 

(b)Notify the ERC and the DOE as soon as reasonably practicable; 

(c)Notify the IMEM Operator and IMEM Members, as soon as reasonably practicable, of the commencement, nature, extent and expected duration of the IMEM Emergency 

and the way in which the Mindanao System Operator reasonably anticipates it will act in response to the IMEM Emergency; and 

(d)Notify the IMEM Operator, the ERC, the DOE, and IMEM Members of any material changes in the nature, extent and expected duration of an IMEM Emergency. 

7.2.2.2During an IMEM Emergency the Mindanao System Operator shall: 

(a)Identify the impact of the IMEM Emergency on system security in terms of the capability of generating units, transmission systems or distribution systems; 

(b)Identify and implement the actions required to end the IMEM Emergency and restore the Mindanao Power System to a satisfactory operating state; 

(c)In coordination with the IMEM Operator, issue emergency directions to IMEM Members as it reasonably considers necessary according to the emergency procedures, which may include, but need not be limited to, directions to: 

(i)Switch off, or re-route, energy delivery from an IMEM Generator; 

(ii)Call equipment into service; 

(iii)Take equipment out of service; 

(iv)Commence operation or maintain, increase or reduce active or reactive power output; 

(v)Curtail, shut down or otherwise vary operation or output; 

(vi)Shed or restore load; and 

(vii)Subject to Clause 7.3.2.5, perform or refrain from performing any other act or thing necessary for reasons of public safety or the security of the power system or undue injury to the environment; 

(d)Implement any load shedding in a manner consistent with the system security and reliability guidelines; and 

(e)To the extent possible, determine a rotating outage plan, and rotate any load shedding requirements. 

7.2.2.3For the avoidance of doubt, emergency directions issued by the Mindanao System Operator are deemed to be IMEM Intervention in the IMEM. 

7.2.2.4During an IMEM Emergency, each IMEM Member shall, subject to Clause 7.2.2.5: 

(a)Comply with this Chapter 7, safety procedures, and the emergency procedures applicable to the IMEM Member in the circumstances; 

(b)Cooperate with the IMEM Operator and the Mindanao System Operator to enable the Mindanao System Operator to implement the emergency procedures; 

(c)Promptly comply with any emergency direction given by the Mindanao System Operator, including emergency directions requiring the disconnection of equipment from a transmission system or distribution system for reliability purposes, unless the IMEM Member reasonably believes that an emergency direction poses a real and substantial risk of damage to its equipment, to the safety of its employees or the public, or of undue injury to the environment; 

(d)Notify the Mindanao System Operator if it intends not to follow the emergency direction for any of the reasons described in Clause 7.2.2.3(c); and 

(e)Comply with the emergency direction to the fullest extent possible without causing the harms described in Clause 7.2.2.3(c). 

7.2.2.5Where there is conflict between these IMEM Rules and: 

(a)The requirements of an IMEM Member's safety procedures;  

(b)The emergency procedures applicable to the IMEM Member in the relevant circumstances; 

(c)Any procedures developed by the Mindanao System Operator, or 

(d)An emergency direction given by the Mindanao System Operator. 

(e)The Mindanao System Operator shall decide which of those requirements or part of those requirements is to prevail and advise the relevant IMEM Trading Participants accordingly. 

7.3SYSTEM SECURITY THREATS 

7.3.1Notice of System Security Threat 

7.3.1.1Upon determination of the existence or the likely possibility of a significant threat to system security, the Mindanao System Operator shall immediately notify the IMEM Trading Participants and the IMEM Operator, including: 

(a)The nature and details of the threat; 

(b)The regions of the Mindanao Power System in which the threat to system security is likely to be located; 

(c)The general magnitude of the threat to system security; 

(d)An estimate of the likely duration thereof; 

(e)The likely shortfall in supply; and 

(f)The timeframe in which the Mindanao System Operator will likely need to declare an IMEM Emergency if the threat to system security does not subside. 

7.3.1.2If the Mindanao System Operator provides the notice with details of a significant threat to system security to IMEM Trading Participants, in accordance with Clause 7.3.1.1, the Mindanao System Operator may issue instructions requiring each IMEM Trading Participant to provide best estimates of: 

(a)An IMEM Generator’s plant availability to either increase or decrease generation; and 

(b)An IMEM Customer's ability to either increase or decrease load. 

7.3.1.3An IMEM Trading Participant shall provide information required in accordance with Clause 7.3.1.2 as soon as practicable and such provision does not breach Section 6.2. 

7.3.1.4The Mindanao System Operator shall treat all information provided to it by an IMEM Trading Participant under Clause 7.3.1.3 as confidential information and may only use that information for the following purposes: 

(a)Making a decision on whether to declare an IMEM Emergency; 

(b)Maintaining or re-establishing system security by issuing emergency directions under Clause 7.2.2.2(c); and 

(c)Regulatory reporting. 

7.3.1.5The Mindanao System Operator shall inform IMEM Trading Participants and the IMEM Operator immediately when it reasonably considers that the significant threat to system security has been averted. 

7.3.2Response to System Security Threat 

7.3.2.1If the Mindanao System Operator has identified a significant threat to system security and it does not reasonably consider that sufficient time exists for the threat to subside without 

resulting in an IMEM Emergency, then the Mindanao System Operator shall declare an IMEM Emergency for the future IMEM Intervals which the threat to system security is projected to affect. 

7.3.2.2If the Mindanao System Operator has identified a significant threat to system security and reasonably considers that sufficient time exists for the threat to subside without resulting in an IMEM Emergency, the Mindanao System Operator shall: 

(a)Facilitate an market response to overcome the threat to system security; and 

(b)Advise the IMEM Operator and those IMEM Trading Participants who the Mindanao System Operator considers would be required to take action or cease taking action if the threat to system security is not resolved without resulting in an IMEM Emergency of the likely nature of the actions it would be required to take or cease taking if an IMEM Emergency were declared. 

7.3.2.3The IMEM Operator may invite IMEM Trading Participants to revise or re-offer their physical capabilities submitted in accordance with Section 3.3 in respect of the relevant IMEM Trading Intervals. 

7.3.2.4For the avoidance of doubt, actions taken under this Section 7.3.2 do not constitute IMEM Intervention in the IMEM. IMEM Intervention can only occur after the Mindanao System Operator has declared an IMEM Emergency. 

7.3.2.5The Mindanao System Operator shall act in accordance with the Grid Code and Distribution Code at all times. 

7.4FORCE MAJEURE 

7.4.1Definition of Force Majeure Event 

7.4.1.1A Force Majeure Event is an event that: 

(a)Is not within the reasonable control, directly or indirectly, of the IMEM Operator, Mindanao System Operator and IMEM Trading Participants; 

(b)Cannot be prevented or removed, despite the exercise of reasonable diligence; 

(c)Has resulted in a reduction in the normal capacity of part or all of the Mindanao Grid during that IMEM Interval; and 

(d)Is likely to materially affect the operation of the IMEM or materially threaten system security. 

7.4.1.2The following are considered a Force Majeure Event: 

(a)Failure of communication facilities that makes it difficult for IMEM Trading Participants to submit their IMEM Offers; or for the IMEM Operator to receive IMEM Offers from IMEM Trading Participants or to transmit IMEM Merit Order Tables to the Mindanao System Operator; 

(b)Failure of IMEM systems, whether due to software or hardware failure, that makes the IMEM Operator unable to receive IMEM Offers or system information necessary and indispensable for the IMEM, or to generate feasible market results according to the IMEM timetable. 

(c)Any other event, circumstance or occurrence in nature of, or similar in effect to any of the foregoing. 

7.4.2Obligations of the IMEM Operator and IMEM Trading Participants 

7.4.2.1An IMEM Trading Participant shall notify the IMEM Operator of the occurrence of any Force Majeure Event, as soon as reasonably possible. 

7.4.2.2The IMEM Operator shall notify all IMEM Trading Participants of the nature of the Force Majeure Event and the extent to which the Force Majeure Event affects the operation of the IMEM as soon as reasonably possible. 

7.4.2.3IMEM Trading Participants shall use all reasonable endeavours to: 

(a)Ensure that they do not exacerbate a Force Majeure Event; and 

(b)Mitigate the occurrence and effects of a Force Majeure Event. 

Chapter 8– Compliance, Audit and Dispute Resolution 

8.1COMPLIANCE 

8.1.1Enforcement and Compliance Officer 

The Enforcement and Compliance Officer appointed pursuant to the WESM Rules shall be designated to investigate apparent or suspected non-compliance with the IMEM Rules. 

8.1.2Investigation of IMEM Members 

8.1.2.1If the IMEM Operator or Mindanao System Operator has reasonable grounds to believe that an IMEM Member is in breach or may commit breach of the IMEM Rules, the IMEM Operator or Mindanao System Operator shall notify the IGC of the suspected breach as soon as possible. 

8.1.2.2The IGC shall thereafter direct the Enforcement and Compliance Officer to investigate the alleged breach. 

8.1.2.3The Enforcement and Compliance Officer shall issue a written notice to the IMEM Member specifying the nature of the offense and require the IMEM Member to explain the alleged offense with supporting documents within fifteen (15) Business Days from receipt of the notice. A copy of the notice shall be furnished to the IGC and the ERC. 

8.1.2.4The Enforcement and Compliance Officer may request for any additional information from the IMEM Member or any other party, as may be necessary to complete its investigation. Failure to provide such information within a reasonable time shall constitute a breach without need for further investigation and shall be subject to an applicable penalty. Failure of the party subject of the investigation to provide material information within a reasonable time shall render the party prima facie liable for the offense subject of the investigation. 

8.1.2.5In the conduct of its investigation, the Enforcement and Compliance Officer may request for conferences or visits to the IMEM Member’s facilities and shall be allowed entry after due notice. 

8.1.2.6The Enforcement and Compliance Officer shall develop an investigation procedure for the guidance of the IMEM Members and shall publish the same on the Market Information Website. 

8.1.2.7Upon the conclusion of its investigation, the Enforcement and Compliance Officer shall submit to the IGC a report on its findings on whether or not a breach of the IMEM Rules was committed.  

8.1.2.8Upon receipt of the investigation report, the IGC shall review the findings of the Enforcement and Compliance Officer and act on the investigation report, either approving or disapproving the report or returning the same to the Enforcement and Compliance Officer for further investigation. If the IGC confirms that there is a breach of the IMEM Rules, it shall impose the appropriate sanctions as set out in Section 8.1.3 of these IMEM Rules. 

8.1.2.9As soon as practicable, the IMEM Operator shall provide the DOE a report summarizing the final decision of the IGC on the investigation report pursuant to Clause 8.1.2.8. 

8.1.3Sanctions 

In case of a finding of breach, the IGC may impose financial or non-financial penalties, or both. Non-financial penalties shall include issuance of warning or reprimand, suspension from participation in the IMEM or deregistration from the IMEM. The financial penalty shall be in the amount of PhP 10,000.00 for every breach committed. If a financial penalty is imposed, the IMEM Operator shall be authorized to deduct the financial penalty from any amounts payable to the IMEM Member in the IMEM.  

8.1.4Reporting of IMEM Operator and Mindanao System Operator Breaches 

If any IMEM Member has reasonable grounds to believe that the IMEM Operator or the Mindanao System Operator is in breach of the IMEM Rules, the IMEM Member shall notify the DOE and the ERC of the breach.  

8.2AUDIT 

8.2.1Testing of Market Software 

8.2.1.1The IMEM Operator shall ensure that any software used in relation to scheduling, billing and settlement shall be certified as correctly implementing the numerical calculations in the IMEM Rules by an independent reviewer appointed by the PEM Board. 

8.2.1.2The IMEM Operator shall publish software certificates provided by the independent reviewer on the Market Information Website. 

8.2.2Audit of the IMEM Operator, Mindanao System Operator and Metering Services Providers 

8.2.2.1The DOE may require an independent third-party audit as often as may be necessary of the operations and processes related to the IMEM of the IMEM Operator, Mindanao System Operator or Metering Services Provider to be shouldered at the expense of the auditee. 

8.2.2.2The terms of reference of the independent audit shall be prepared by the DOE in consultation with the ERC, the IMEM Operator, the auditee and such other entities that the DOE may determine as necessary. 

8.2.2.3A copy of the report shall be provided to the DOE, ERC, the IMEM Operator and the auditee.  

8.2.2.4  A summary report of non-confidential findings shall be published on the Market Information Website. 

8.2.3Audit of IMEM Trading Participants 

8.2.3.1The DOE may require an independent third-party audit no more than annually, of the market activities of any IMEM Trading Participant.  

8.2.3.2The terms of reference of the independent audit shall be prepared by the IMEM Operator in consultation with the ERC, the DOE, the auditee, and such other entities that the IMEM Operator may determine as necessary. 

8.2.3.3Copies of the audit report shall be provided to the DOE, the ERC, the IMEM Operator and the auditee. 

8.2.3.4A summary report of non-confidential findings shall be published on the Market Information Website.  

8.3DISPUTE RESOLUTION 

8.3.1Application and Guiding Principles 

Pursuant to the EPIRA, the ERC has original and exclusive jurisdiction over all cases contesting rates, fees, fines and penalties imposed by the ERC in the exercise of its powers, functions and responsibilities under the EPIRA and over all cases involving disputes between and among participants or players in the energy sector. This includes such cases pertaining to the IMEM and IMEM Members. 

8.3.2Dispute Resolution Process 

The IMEM Operator shall prepare and endorse to the DOE for approval an alternative dispute resolution mechanism for use by IMEM Members and the IMEM Operator in the resolution of Disputes. 

8.3.3Dispute Resolution Administrator 

The Dispute Resolution Administrator appointed pursuant to the WESM Rules shall be designated to facilitate the resolution of Disputes between or among the parties pursuant to the dispute resolution mechanism under Section 8.3.2. 

Chapter 9– Interpretation and Applicability 

9.1INTERPRETATION OF THE IMEMRULES 

9.1.1Format Conventions 

In the IMEM Rules, unless the context otherwise requires: 

9.1.1.1Headings are for convenience only and do not affect the interpretation of the IMEM Rules; 

9.1.1.2Words importing the singular include the plural and vice versa; 

9.1.1.3Words importing a gender include any gender; 

9.1.1.4Where italicized and capitalized, a word or phrase has the definition given to that word or phrase in Chapter 10; and 

9.1.1.5Other parts of speech and grammatical forms of a word or phrase defined in the IMEM Rules have a corresponding meaning. 

9.1.2Expressions and References 

9.1.2.1An expression importing a natural person includes any legal entity, company, partnership, joint venture, association, corporation or other body corporate and any government authority; 

9.1.2.2A reference to anything (including, but not limited to, any right) includes a part of that thing; 

9.1.2.3A reference to a Clause, paragraph, part, annexure, exhibit or schedule is a reference to a Clause and paragraph and part of, and an annexure, exhibit and schedule to the IMEM Rules and a reference to the IMEM Rules includes any annexure, exhibit and schedule; 

9.1.2.4A reference to a statute, rule, regulation, proclamation, order, or circular includes all statutes, rules, regulations, proclamations, orders or circulars, consolidating or replacing it, and a reference to a statute includes all rules, regulations, proclamations, orders, or circulars issued under that statute; 

9.1.2.5A reference to the IMEM Rules or to a document or a provision of a document includes an amendment or supplement to, or replacement of, the IMEM Rules or that document or that provision of that document; 

9.1.2.6A reference to a person includes that person's executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and permitted assignees; 

9.1.2.7A reference to a body other than an IMEM Member or the IMEM Operator (including, without limitation, an institute, association or authority), whether statutory or not: (1) Which ceases to exist; or (2) Whose powers or functions are transferred to another body, is a reference to the body which replaces it or which substantially succeeds to its powers or functions; and 

9.1.2.8A reference in the context of any provision of the IMEM Rules to a "representative" of any person is a reference to any director, officer or employee of that person or any agent, consultant or contractor appointed or engaged by that person for purposes connected with the subject matter of the relevant provision of the IMEM Rules. 

9.1.3Times and Dates 

9.1.3.1A reference in the IMEM Rules to a calendar day (such as 1 January) or a day of the week (such as Sunday) is to the 24-hour period which begins right after 2400H of the previous day and until 2400H of that day. 

9.1.3.2A reference in the IMEM Rules to a week is to the period right after 2400H of the previous day of the first day specified or implied until 2400H of the seventh day following. 

9.1.3.3A reference in the IMEM Rules to a month (or a number of months) or a calendar month is to the period from 2400H of the previous day of a day in one month until 2400H of the previous day of the same day of the month which follows (or follows by the relevant number of months), or if there is no such day in that month, 2400H hours of the previous day of the first day of the next following month. 

9.1.3.4A reference in the IMEM Rules to a year is to the period from right after 2400H of the previous day of a day in one year until 2400H hours of the previous day of the same day (or where the day in the first year was 29 February, on 1 March) in the following year, and a reference to a calendar year (such as 1997) is to be construed accordingly. 

9.1.3.5A reference in the IMEM Rules to a time of day is to Philippine Standard Time and abbreviated as PST. 

9.1.3.6A reference in the IMEM Rules to a period of time which dates from a given day, or the day of an act or event, is to be calculated exclusive of that day. 

9.1.3.7A reference in the IMEM Rules to a period of time which commences on a given day, or the day of an act or event, is to be calculated inclusive of that day. 

9.1.3.8Where under any provision of the IMEM Rules a person is required to provide any information by a certain date or time, the relevant provision is to be taken to include a requirement that that the relevant information shall be given as soon as possible and no later than the date or time given. 

9.1.4Notices 

9.1.4.1A notice is properly given under the IMEM Rules to a person if:  

(a)It is personally served;  

(b)A letter containing the notice is sent by courier to the person at an address (if any) supplied by the person to the sender for service of notices or, where the person is an IMEM member, an address shown for that person in the register of IMEM Members maintained by the IMEM Operator, or, where the addressee is the IMEM Operator, the registered office of the IMEM Operator; 

(c)It is sent to the person by facsimile or electronic mail to a number or reference which corresponds with the address referred to in Clause 9.1.4.1(b) or which is supplied by the person to the IMEM Operator for service of notices and, if sent by electronic mail, the person sending the notice also sends a copy of the notice by letter or facsimile to the person on the same day; or 

(d)The person actually receives the notice by any other means. 

9.1.4.2A notice is treated as being given to a person by the sender:  

(a)Where sent by courier mail to an address in the central business district of a region in the Philippines, on the second Business Day after the day on which it is posted;  

(b)Where sent by courier in accordance with Clause 9.1.4.1(b) to any other address, on the third Business Day after the day on which it is posted;  

(c)Where sent by facsimile in accordance with Clause 9.1.4.1(c) and a complete and correct transmission report is received:  

(i)Where the notice is of the type in relation to which the addressee is obliged under the IMEM Rules to monitor the receipt by facsimile outside of, as well as during, business hours, on the day of transmission; and  

(ii)In all other cases, on the day of transmission if a Business Day or, if the transmission is on a day which is not a Business Day or is after 1600H (addressee's time), at 0900H on the following Business Day; 

(d)Where sent by electronic mail in accordance with Clause 9.1.4.1(c):  

(i)Where the notice is of a type in relation to which the addressee is obliged under the IMEM Rules to monitor receipt by electronic mail outside of, as well as during, business hours, on the day when the notice is recorded as having been received at the electronic mail destination; and 

(ii)In all other cases, on the day when the notice is recorded as having been first received at the electronic mail destination, if a Business Day or if that time is after 1600H (addressee’s time), or the day is not a Business Day, at 0900H on the following Business Day; or 

(e)In any other case, when the person actually receives the notice. 

9.1.4.3Any notice to or by a person under the IMEM Rules:  

(a)Shall be in legible writing and in English; and  

(b)Where the sender is a company, shall be signed by a responsible employee or officer thereof or under the corporate or official seal of the sender (except where the notice is sent by electronic mail). 

9.1.4.4Where a specified period (including, without limitation, a particular number of days) is provided, for purposes of calculating the number of days indicated in the period, the first day shall be excluded while the last day is included in said computation. 

9.2APPLICABILITY OF THE IMEMRULES 

9.2.1Scope of Application 

By their participation in the IMEM, the IMEM Operator, the Mindanao System Operator, IMEM Service Providers and IMEM Trading Participants bind themselves to comply with: 

(a)These IMEM Rules, and all other rules, regulations, issuances, decisions, resolutions that may be issued by the DOE or ERC relevant to the operations of the IMEM; and 

(b)Guidelines and procedures set by the IMEM Operator and the Mindanao System Operator in the course of the operation of the IMEM. 

9.2.2Rights and Obligations 

9.2.2.1Unless otherwise expressly permitted by the IMEM Rules, an IMEM Member shall not assign or transfer and shall not purport to assign or transfer any of its rights or obligations under the IMEM Rules. 

9.2.2.2An entity does not waive its rights, powers and discretions under the IMEM Rules by: 

(a)Failing to exercise its rights; 

(b)Only exercising part of its rights; or 

(c)Delaying the exercise of its rights. 

9.2.3Severability 

Each part or all of a provision of the IMEM Rules: 

(a)Will be construed so as to be valid and enforceable to the greatest extent possible; and 

(b)May be so construed (or deleted if necessary) regardless of the effect which that may have on the provision in question or any other provision or the IMEM Rules as a whole. 

Chapter 10– Glossary 

Actual Loading:  The instantaneous MW injection of an IMEM Generator at a specific point in time, which may be either a SCADA measurement, or the Mindanao System Operator's estimate of the actual loading of that IMEM Generator. 

Actual Exposure: The total unpaid Settlement Amounts of an IMEM Trading Participant relating to past Billing Periods. 

All-Or-Nothing Offer Type: The Offer Type that applies to an IMEM Offer where the capacity cannot be partially dispatched but must be dispatched in either full or not at all. This will apply, for example, to IMEM Load Curtailment Resources that curtail load by disconnecting from the Mindanao Power System. 

Ancillary Services: Those services which are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice, the Grid Code and the Distribution Code. 

Average Exposure: The average of the total Settlement Amount of an IMEM Trading Participant during the previous six (6) Billing Periods. 

Billing Period: The period defined in Clause 5.1.1.2. 

Business Days: A day (excluding Saturdays and Sundays) on which banks and financial institutions are open in the city or municipality where the principal offices of the IMEM Operator are located. 

Confidential Information: Information which is or has been provided to, or by, an IMEM Trading Participant or the IMEM Operator under, or in connection with, the IMEM Rules and is stated under the IMEM Rules to be, or is classified by the IMEM Operator as, confidential information or is otherwise confidential or commercially sensitive information or information which is derived from any such information. 

Connection Point: The agreed point of supply established between an IMEM Network Service Provider and an IMEM Trading Participant. 

Contracted Capacity: Forms part of an IMEM Offer and is the total MW capacity of the IMEM Resource that is covered by Ex-Ante Contract Allocations. 

Customer Dispatch Compensation Recovery Amount: The Settlement Amount defined in Clause 5.4.4.2, which is the amount payable by an IMEM Customer in recovery of In-Day Dispatch compensation. 

Customer IMEM Demand: The portion of an IMEM Customer's forecast instantaneous MW demand that the IMEM Customer intends to source from the IMEM in a given IMEM Interval. 

Customer Interval Settlement Amount: The Settlement Amount defined in Clause 5.4.5.1 which is the total compensation due to or payment due from an IMEM Customer in respect of an IMEM Trading Interval. 

Customer Supply Amount: The Settlement Amount defined in Clause 5.4.2.1 which is the payment in due from that IMEM Customer for net withdrawal from the IMEM in an IMEM Trading Interval. 

Day-Ahead Schedule: The total instantaneous MW supply that an IMEM Resource is to supply within the Mindanao Power System at the end of a particular IMEM Interval. 

Day-Ahead IMEM Schedule: The instantaneous MW supply that an IMEM Resource is to supply from its IMEM Offer at the end of a particular IMEM Interval. 

Dispatch Compensation Amounts: The total compensation due to an IMEM Resource for providing either an upwards or downwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Dispatch Compensation Recovery Rate: The rate that IMEM Resources and IMEM Customers will be charged to recover the Dispatch Compensation Amounts paid to IMEM Resources. 

Dispatch Target: The value defined in Clause 3.5.1.4. 

Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.3.2 or Clause 5.2.3.4, which is the expected energy curtailment or injection of an IMEM Resource in an IMEM Trading Interval if it operated in accordance with the Day Ahead Schedule and In-Day Dispatch Instructions, whichever is applicable. 

Dispute:  Any dispute arising between or among the IMEM Operator, the Mindanao System Operator and the IMEM Members arising under or in connection with or in relation to the application of any of the provision of the IMEM Rules or IMEM Manuals, the interpretation of any of the provisions of the IMEM Rules or IMEM Manuals, any obligation to settle payment under the IMEM Rules or IMEM Manuals, or any dispute relating to or in connection with a transaction in the IMEM, provided, that the same shall not involve breach of the IMEM Rules or IMEM Manuals or such other regulatory policy. 

Dispute Resolution Administrator: The person tasked to facilitate the resolution of Disputes pursuant to Section 8.3.3. 

Distribution Code: Refers to the Philippine Distribution Code, which isthe set of rules, requirements, procedures, and standards governing Distribution Utilities and users in the operation, maintenance, and development of their distribution systems. It also defines and establishes the relationship of the distribution systems with the facilities or installations of the parties connected thereto. 

Distribution Network: A system of cables which provide for the transfer of electric power within the Distribution Utility's franchise area. 

Distribution Utility: An Electric Cooperative, private corporation, government-owned utility, or existing local government unit, that has an exclusive franchise to operate a distribution system in accordance with its franchise and the EPIRA. 

DOE: See Department of Energy. 

Downward Dispatch Instruction: An instruction issued by the Mindanao System Operator to an IMEM Resource directing it to reduce its supply from that which it was directed to provide in the Day-Ahead IMEM Schedule. 

Downwards Customer Variation Quantity: The Settlement Quantity defined in Clause 5.2.7.3 which is the quantity for which an IMEM Customer will contribute to the recovery of Upwards Dispatch Compensation in 

an IMEM Trading Interval in respect of downwards variation outside its Variation Tolerance from its Expected Demand Quantity. 

Downwards Dispatch Compensation Amount: The Settlement Amount defined in Clause 5.4.1.5 which is the total compensation due to an IMEM Resource for providing downwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Downwards Dispatch Compensation Recovery Rate: The rate defined in Clause 5.4.3.2, which is the rate that IMEM Resources and IMEM Customers will be charged for each MWh of Upwards Resource or Customer Variation Quantity to recover the Downwards Dispatch Compensation Amounts paid to IMEM Resources. 

Downwards Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.9.5 for IMEM Load Curtailment Resources and Clause 5.2.11.4 for IMEM Generators, which is the quantity for which the IMEM Resource will be compensated for downwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Downwards In-Day Dispatch Premium Rate: The rate defined in Clause 5.3.2.3 which is the rate that will be paid to IMEM Resources as recompense for each MWh outside its Variation Tolerance of downwards In-Day Dispatch. 

Downwards Resource Variation Penalty Rate: The rate defined in Clause 5.3.2.4 which is the rate that IMEM Resources will pay as penalty for each MWh of downwards variation outside its Variation Tolerance from Dispatched Quantity. 

Downwards Resource Variation Penalty Amount: The Settlement Amount defined in Clause 5.4.1.2(c) which is the penalty payable by an IMEM Resource for downwards variation outside its Variation Tolerance from Dispatched Quantity in an IMEM Trading Interval. 

Downwards Resource Variation Quantity: The Settlement Quantity defined in Clause 5.2.9.7 for IMEM Load Curtailment Resources and Clause 5.2.11.6 for IMEM Generators, which is the quantity for which the IMEM Resource will be penalized for downwards variation outside its Variation Tolerance from Dispatched Quantity in an IMEM Trading Interval. 

Electric Cooperative: A cooperative or corporation authorized to provide electric services pursuant to Presidential Decree No. 269, as amended, and Republic Act No. 6938 within the framework of the national rural electrification plan. 

Embedded IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption from a Mindanao Distribution System or User System and is registered as member of the IMEM under Chapter 2. Also, an IMEM Load Curtailment Resource which is not an IMEM Customer. 

End-Users: Any person or entity requiring the supply and delivery of electricity for its own use. 

Energy Regulatory Commission: The independent, quasi-judicial regulatory body created under the EPIRA. 

Enforcement and Compliance Officer: A person tasked to perform compliance and enforcement functions pursuant to Section 8.1. 

EPIRA: Refers to Republic Act No. 9136 also known as the "Electric Power Industry Reform Act of 2001". 

ERC: See Energy Regulatory Commission. 

Ex-Ante Contract Allocations: An instantaneous MW quantity allocated in advance to an IMEM Generator or an IMEM Customer to indicate the portion of its capacity or demand (respectively) that is covered by a bilateral contract between the two. In each case, it is specified at the Connection Point of the IMEM Generator and the IMEM Customer. 

Expected Demand: The value determined in accordance with Section 3.2.8 for IMEM Load Curtailment Resources and Section 5.2.4 for IMEM Customers, which is the instantaneous MW amount which that IMEM Customer or IMEM Load Curtailment Resource is forecast to consume at the end of an IMEM Interval, expressed as a positive number. 

Expected Demand Quantity: The Settlement Quantity defined in Clause 5.2.4.3 which is the estimated energy consumption of an IMEM Load Curtailment Resource or an IMEM Customer in an IMEM Trading Interval if it was not scheduled or dispatched to curtail energy, expressed as a negative number. 

Expected ILP Reduction: The quantity of electricity in MWh expected to be curtailed by a Mindanao Distribution Utility due to the participation of its customer in the Interruptible Load Program of the ERC as governed by ERC Resolution No. 08, Series of 2010 dated 10 March 2010. 

Ex-Post Contract Quantity: The quantity of electricity in MWh sold by one party to another, outside the IMEM, in an IMEM Trading Interval declared in accordance with Section 5.2.2. 

Final Settlement Statement: The statement setting out the IMEM transactions of an IMEM Generator in a Billing Period, issued by the IMEM Operator under Clause 5.1.2.4, and containing the information set out in Clause 5.5.2.1. 

Force Majeure Event: An event or situation described under Section 7.4.1. 

Forced Outage: A full or partial unplanned unavailability of an IMEM Resource, as defined in the Grid Code. 

Forced Outage Declaration: A notification sent to the Mindanao System Operator by an IMEM Resource when a Forced Outage occurs. 

Generating Plant: A facility, consisting of one or more Generating Units connected at a common Connection Point, where electric energy is produced from some other form of energy by means of a suitable apparatus. 

Generating Unit: A single machine generating electricity and all the related equipment essential to its functioning as a single entity. 

Grid Code: Refers to the Philippine Grid Code, which is the set of rules and regulations governing the safe and reliable operation, maintenance and development of the high-voltage backbone transmission system and its related facilities, pursuant to the EPIRA. 

Grid IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption the Mindanao Grid and is registered as member of the IMEM under Chapter 2. Also, an IMEM Load Curtailment Resource which is an IMEM Customer. 

Grid-Connected End-User: An End-User that is directly connected to the Mindanao Grid 

IGC: See IMEM Governance Committee 

IMEM: See Interim Mindanao Electricity Market. 

IMEM Adjusted Metered Quantity: The Settlement Quantity defined in Clause 5.2.6.2 for IMEM Customers in respect of an IMEM Trading Interval. 

IMEM Base Variation Price: The price in Pesos defined in Clause 5.3.2.2,which is the base price for the calculation of dispatch premiums and variation penalties for IMEM Resources. 

IMEM Cost Recovery Mechanism: Refers to the mechanism for recovering the costs incurred in establishing the IMEM as approved by the ERC. 

IMEM Customer: A person who engages in the activity of purchasing electricity supplied through the Mindanao Grid and registers with the IMEM Operator in that capacity under Chapter 2. 

IMEM Customer Energy Price: The price in defined in Clause 5.4.2.2 which is the price at which IMEM Customers will pay for any purchases from the IMEM in an IMEM Trading Interval 

IMEM Day-Ahead Price: The price that is the basis for standard payments to IMEM Resources for supply during an IMEM Trading Interval, as set the preceding day in accordance with Section 3.4.4. 

IMEM Demand: The instantaneous MW demand to be met by supply from IMEM Resources in an IMEM Interval. The IMEM Demand is the sum of all Customer IMEM Demands. 

IMEM Embedded Generator: AGenerating Plant that is indirectly connected to the Mindanao Grid through the Distribution Utilities' lines or industrial generation facilities that are synchronized with the Mindanao Grid and is registered with the IMEM Operator in that capacity under Chapter 2. 

IMEM Emergency: An event or situation described under Section 7.2.1. 

IMEM Generator: IMEM Grid Generator or IMEM Embedded Generator. 

IMEM Governance Committee: The committee whose composition, duties and obligations are defined under Section 1.4. 

IMEM Grid Generator: AGenerating Plant that is directly connected to the Mindanao Grid and registers with the IMEM Operator in that capacity under Chapter 2. 

IMEM Interval: Any hour, ending on the hour, during the time the IMEM is in effect. 

IMEM Intervention: The act of intervening in the operation of the IMEM by the Mindanao System Operator in case of an IMEM Emergency or by the IMEM Operator during the occurrence of a Force Majeure Event as defined under Chapter 7. 

IMEM Intervention Report: The reports submitted by each of the IMEM Operator and the Mindanao System Operator pursuant to Section 7.1.6. 

IMEM Load Curtailment Resource: An End-User or group of End-Users that is capable of reducing or curtailing its power consumption and is registered as member of the IMEM under Chapter 2. 

IMEM Manual: A manual of specific procedures, systems or protocols for the implementation of the IMEM Rules promulgated by the DOE. 

IMEM Member: A person who is registered with the IMEM Operator in accordance with Chapter 2. 

IMEM Merit Order Table: The table of ranked IMEM Offers with associated information that is constructed by the IMEM Operator under Section 3.4.5 for use by the Mindanao System Operator in managing in-day dispatch of IMEM Resources. 

IMEM Metering Services Provider: A person or entity authorized by the ERC to provide metering services and registered with the IMEM Operator in that capacity in accordance with Chapter 2. 

IMEM Network Service Provider: A person who engages in the activity of owning, controlling, or operating a transmission or distribution system and who is registered with the IMEM Operator that capacity under Chapter 2. 

IMEM Objectives: Refers to the objectives set forth in Section 1.1.4. 

IMEM Offer: A Regular IMEM Offer or a Standing IMEM Offer. An IMEM Offer has the form specified in Section 3.3.1. 

IMEM Operator: Refers to Philippine Electricity Market Corporation, the entity designated in accordance with DOE Department Circular DC No. 2013-01-0001 to implement the IMEM. 

IMEM Price Determination Methodology: Refers to the methodology for setting the prices in the IMEM as approved by the ERC. 

IMEM Prices: Prices set by the IMEM Operator in relation to the sale and purchase of energy in the IMEM, including the IMEM Day-Ahead Price, the IMEM Base Variation Price, the IMEM Customer Energy Price, and such other prices as may be required for an IMEM Intervention or an IMEM Suspension. 

IMEM Resource: An IMEM Generator or an IMEM Load Curtailment Resource. 

IMEM Rules: See Interim Mindanao Electricity Market Rules. 

IMEM Schedule Optimization Model: A mathematical optimization process that schedules IMEM Offers. 

IMEM Service Provider: IMEM Metering Services Provider or an IMEM Network Service Provider. 

IMEM Trading Intervals: An IMEM Interval for which any capacity offered into the IMEM is utilized either through having a Day-Ahead IMEM Schedule or via In-Day Dispatch Instructions. 

IMEM Trading Participant: An IMEM Resource or an IMEM Customer. 

IMEM Trading Quantity: The Settlement Quantity defined in Section 5.2.10 for IMEM Generators, Section 5.2.8 for IMEM Load Curtailment Resources, and Clause 5.2.6 for IMEM Customers in respect of an IMEM Trading Interval. 

In-Day Dispatch Instruction: A Downward Dispatch Instruction or an Upward Dispatch Instruction. 

Independent Market Operator (“IMO”):  Refers tothe person or entity financially and technically capable, with proven experience of not less than two (2) years as a leading independent market operator of similar or large size electricity market endorsed jointly by the DOE and electric power industry participants to assume the functions, assets and liabilities of the Autonomous Group Market Operator pursuant to Section 30 of the EPIRA. 

Insufficient Supply Condition: As defined for an IMEM Trading Interval in Clause 3.6.1, the condition where there is not enough generation to meet the forecast demand in Mindanao. 

Interim Mindanao Electricity Market Rules: The electricity market developed and implemented by the PEMC in accordance with DOE Department Circular No. DC2013-01-0001. 

Load-To-Maintain: The MW quantity, set under Section 3.6.2, that an IMEM Customer is required to limit its off-take from the Mindanao Grid to. 

Mandatory Participants: Refers to entities described in Section 2.1.1 that meet the qualifications under Section 2.3. 

Margin Call: An amount specified by the IMEM Operator to be paid by an IMEM Trading Participant in accordance with Clause 5.6.3.5 to make up for any anticipated shortfall between the security provided by that IMEM Trading Participant and the IMEM Operator's exposure in respect of that IMEM Trading Participant. 

Market Fees: The charges imposed on IMEM Members by the IMEM Operator to cover the cost of administering and operating the IMEM, as approved by the ERC. 

Market Information Website: A facility to be established by the IMEM Operator on the electronic communication system on which it may publish information which is then available to and may be accessed by IMEM Members. 

Meter: A device, which measures and records the consumption or production of electricity. 

Metered Quantity: Net quantity of energy injected or withdrawn from the transmission network, or distribution network, by an IMEM Trading Participant during an IMEM Trading Interval as measured in the Metering Data, where net injection is a positive number and a net withdrawal is a negative number 

Metering Data: The data obtained or derived from a Metering Installation. 

Metering Database: The database kept by the IMEM Operator pursuant to Clause 4.4.3. 

Metering Installation: The Meter and associated equipment and installations installed or to be installed for the collection of Metering Data required for settlement purposes. 

Metering Point: The point of physical connection of the device measuring the current in the power conductor. 

Metering Services: A service for the provision of metering facilities, meter reading, and Metering Data validation and estimation. 

Metering Services Provider: A person or entity authorized by the ERC to provide Metering Services. 

Metering Services Provider Database: The database kept by IMEM Metering Services Providers pursuant to Clause 4.4.2. 

MinDA: The Mindanao Development Authority created under Republic Act. No. 9996. 

Mindanao Distribution System: The system of wires and associated facilities connected to the transmission system operated by the Mindanao System Operator belonging to a franchised Distribution Utility, extending between the delivery points on the transmission or sub-transmission system, or generator connection and the point of connection to the premises of the End-User. 

Mindanao Distribution Utilities: An Electric Cooperative, private corporation, government-owned utility, or existing local government unit which has an exclusive franchise to operate a Mindanao Distribution System in accordance with its franchise and the EPIRA and is registered as such under the provisions in Chapter 2. 

Mindanao Grid: Refers to the high-voltage backbone system of interconnected transmission lines, substations and related facilities in Mindanao. 

Mindanao Power System: The integrated system of transmission, distribution network and generating plant for the supply of electricity in Mindanao. 

Mindanao System Operator: The party identified as the system operator pursuant to the Grid Code, who has responsibility for generation dispatch, the provision of Ancillary Services, and operation and control to ensure safety, power quality, stability, reliability and security of the Mindanao Grid. 

National Grid Corporation of the Philippines: Refers to the corporation awarded the concession to assume the power transmission functions of the National Transmission Corporation pursuant to the EPIRA and was granted the franchise by Congress though Republic Act No. 9511. 

NEA: The National Electrification Administration, the entity established by Presidential Decree No. 269 as amended by Presidential Decree No. 1645. 

Offer Price: The price in Pesos per MWh at which an IMEM Resource is offering its Offered Capacity in an IMEM Offer for an IMEM Interval. 

Offer Type: The type of IMEM Offer being made, which is either a Standard Offer Type or an All-Or-Nothing Offer Type. 

Offered Capacity: The MW capacity that is offered by an IMEM Resource in its IMEM Offer. 

PEM Board: The group of directors serving from time to time on the board that is responsible for governing the Wholesale Electricity Spot Market. 

Pending IMEM Member: A person who is not yet registered with the IMEM Operator in accordance with Chapter 2 but has submitted initial requirements for registration to the IMEM Operator. 

Philippine Electricity Market Corporation: See IMEM Operator. 

Philippine Standard Time: The standard for the second of time in the Philippines kept and maintained by the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA). 

Preliminary Settlement Statement: The statement setting out the IMEM transactions of an IMEM Trading Participant in a Billing Period, issued by the IMEM Operator under Clause 5.1.2.3, and containing the information set out in Clause 5.5.1. 

Prudential Security Requirements: The requirements imposed on an IMEM Trading Participant to provide and maintain a security in accordance with Section 5.6. 

Random Daily Priority: A random number that is generated each day and assigned to each IMEM Resource in order to set the ranking in the IMEM Merit Order Table in the case where its IMEM Offer has an Offer Price that is identical to that of one or more IMEM Offers from other IMEM Resources in a particularly IMEM Interval. 

Registered Capacity: The MW capacity set for an IMEM Resource at the time of registration. For IMEM Generators, in most cases it will equal the capacity specified in its Certificate of Compliance (COC) issued by the ERC. 

Regular IMEM Offer: An offer submitted by an IMEM Resource to sell electrical energy through the IMEM in a particular IMEM Interval. 

Resource Dispatch Compensation Recovery Amount: The Settlement Amount defined in Clause 5.4.4.1 which is the amount payable by an IMEM Customer in recovery of In-Day Dispatch compensation. 

Resource Energy Amount: The Settlement Amount defined in Clause 5.4.1.2(a) for an IMEM Resource, which is the compensation due to that IMEM Resource for net supply to the IMEM in an IMEM Trading Interval. 

Resource Energy Settlement Amount: The Settlement Amount defined in Clause 5.4.1.2 which is the compensation due to an IMEM Resource for energy supply in an IMEM Trading Interval, after any applicable variation penalties have been applied, but before any applicable dispatch compensation amounts or dispatch compensation recovery amounts. 

Resource Interval Settlement Amount: The Settlement Amount defined in Clause 5.4.5.2 which is the total compensation due to or payment due from an IMEM Resource in an IMEM Trading Interval. 

Resource Supply Amount: The Settlement Amount defined in Clause 5.4.1.1 which is the compensation due to an IMEM Resource for energy supply in an IMEM Trading Interval, before any applicable dispatch compensation recovery amounts have been applied. 

Scheduled Quantity: The Settlement Quantity defined in Clause 5.2.3.1 for IMEM Resources, which is the expected energy curtailment or injection of an IMEM Resource in an IMEM Trading Interval if it operated in accordance with the Day-Ahead Schedule. 

Self-Generation Facility: A power generation facility owned and constructed by an End-User for such End-User’s own consumption or internal use. 

Settlement Amount: A Philippine Peso amount used in IMEM settlement to determine the monies owing from or payable to IMEM Trading Participants. 

Settlement Quantity: A MWh quantity applicable to an IMEM Trading Participant, used in IMEM settlement to determine the monies owing from or payable to IMEM Trading Participants. 

Settlement Statement: A Preliminary Settlement Statement or a Final Settlement Statement. 

Standard Offer Type: The Offer Type that applies to an IMEM Offer where the capacity can be partially dispatched. This will apply to most IMEM Resources, including all IMEM Generators. 

Standing IMEM Offer: An IMEM Offer submitted by an IMEM Resource to sell electrical energy through the IMEM in a given hour of the day and day of the week. It will always apply in that hour of any week unless it has been overridden by a Regular IMEM Offer specific to a particular IMEM Interval. 

Suspension Notice: A notice issued by the IMEM Operator in accordance with Clause 2.6.2.6. 

Unavailable Capacity: Forms part of an IMEM Offer and is the total MW capacity of the IMEM Resource that is unavailable to be included in the Contracted Capacity or the Offered Capacity due to Forced Outage, maintenance, or other reason provided by the IMEM Resource and accepted by the IMEM Operator. 

Uncontracted Demand: The portion of an IMEM Customer's forecast instantaneous MW demand in a particular IMEM Interval that is not covered by Ex-Ante Contract Allocations. 

Unrecovered Resource Energy Settlement Amount: The Settlement Amount defined in Clause 5.4.2.3 which is the amount due to IMEM Resources for energy supply in an IMEM Trading Interval that cannot be allocated to IMEM Customers in that IMEM Trading Interval. 

Upward Dispatch Instruction: An instruction issued by the Mindanao System Operator to an IMEM Resource directing it to increase its supply from that which it was directed to provide in the Day-Ahead IMEM Schedule. 

Upwards Customer Variation Quantity: The Settlement Quantity defined in Clause 5.2.7.2 which is the quantity for which an IMEM Customer will contribute to the recovery of Downwards Dispatch Compensation in an IMEM Trading Interval in respect of upwards variation outside its Variation Tolerance from its Expected Demand Quantity. 

Upwards Dispatch Cost Recovery Amount: The Settlement Amount defined in Clause 5.4.1.4(b) which represents the additional cost of generation by an IMEM Resource providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Upwards Dispatch Premium Amount: The Settlement Amount defined in Clause 5.4.1.4(a) which is the compensation due to an IMEM Resource for providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval, over and above the additional costs of generation. 

Upwards Dispatch Compensation Recovery Rate: The rate defined in Clause 5.4.3.1, which is the rate that IMEM Resources and IMEM Customers will be charged for each MWh of Downwards Resource or Customer Variation Quantity to recover the Upwards Dispatch Compensation Amounts paid to IMEM Resources. 

Upwards Dispatch Compensation Amount: The Settlement Amount defined in Clause 5.4.1.4, which is the total compensation due to an IMEM Resource for providing upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Upwards Dispatched Quantity: The Settlement Quantity defined in Clause 5.2.9.4 for IMEM Load Curtailment Resources and Clause 5.2.11.3 for IMEM Generators, which is the quantity for which the IMEM Resource will be compensated for upwards In-Day Dispatch outside its Variation Tolerance in an IMEM Trading Interval. 

Upwards In-Day Dispatch Premium Rate: The rate defined in Clause 5.3.2.3 which is the rate that will be paid to IMEM Resources as recompense for each MWh of upwards In-Day Dispatch. 

Upwards Resource Variation Penalty Rate: The factor defined in Clause 5.3.2.4 which is the rate that IMEM Resources will pay as penalty for each MWh of upwards variation outside its Variation Tolerance from its Dispatched Quantity. 

Upwards Resource Variation Penalty Amount: The Settlement Amount defined in Clause 5.4.1.2(b) which is the penalty payable by an IMEM Resource for upwards variation outside its Variation Tolerance from its Dispatched Quantity in an IMEM Trading Interval. 

Upwards Resource Variation Quantity: The Settlement Quantity defined in Clause 5.2.9.6 for IMEM Load Curtailment Resources and Clause 5.2.11.5 for IMEM Generators, which is the quantity for which the IMEM Resource will be penalized for upwards variation outside its Variation Tolerance from its Dispatched Quantity in an IMEM Trading Interval. 

User System: Refers to a system owned or operated by a person or entity that uses the Mindanao Grid. 

Variation Tolerance: The Settlement Quantity defined in Clause 5.2.5.2, which is the quantity by which (a) An IMEM Resource may deviate from its Dispatched Quantity in an IMEM Trading Interval without incurring financial penalties (b) An IMEM Customer may deviate from its Expected Demand Quantity in an IMEM Trading Interval without incurring financial penalties and (c) An IMEM Resource may be dispatched up or down from its Scheduled Quantity without receiving In-Day Dispatch premiums. 

Voluntary Participants: Refers to entities described in Section 2.1.2 that meet the qualifications under Section 2.3. 

Week-Ahead Contract Allocations Report: The report summarizing Week-Ahead Generator Contract Allocations, provided by the Mindanao System Operator to the IMEM Operator in accordance with Section 3.2.6. 

Week-Ahead Customer Demand Forecast: The demand forecast for the following seven days provided by an IMEM Customer in accordance with Section 3.2.1. 

Week-Ahead Customer IMEM Demand: The specification of IMEM Demand for the following seven days provided by an IMEM Customer in accordance with Section 3.2.7. 

Week-Ahead Distribution Network Information Report: The report on outages and conditions for the following seven days in the Distribution Network of an IMEM Network Service Provider, provided in accordance with Section 3.2.3. 

Week-Ahead Generation Requirement Forecast: The report on generation requirement for the following seven (7) days, provided by the Mindanao System Operator in accordance with Section 3.2.2. 

Week-Ahead Generator Contract Allocations: The specification of Ex-Ante Contract Allocations for the following seven days provided by an IMEM Generator in accordance with Section 3.2.5. 

Week-Ahead IMEM Demand Report: The report on IMEM Demand for the following seven days, provided by the IMEM Operator in accordance with Section 3.2.9. 

Week-Ahead Power System Information Report: The report on outages and conditions for the following seven (7) days in the Mindanao Power System, provided by the Mindanao System Operator in accordance with Section 3.2.4. 

WESM Rules: The detailed rules that govern the administration and operation of the Wholesale Electricity Spot Market. 

Wholesale Electricity Spot Market: The electricity market established by the DOE in accordance with Section 30 of the EPIRA.