Definition of Terms in Philippine Distribution code and Philippine Grid Code

A person who has been duly authorized by the Distributor (or User) to sign the Fixed Asset Boundary Documents on behalf of the Distributor (or User).

A person who has been duly authorized by the Grid Owner (or a User) to sign the Fixed Asset Boundary Documents on behalf of the Grid Owner (or the User).

also known as the “Electric Power Industry Reform Act of 2001”, which mandated the restructuring of the electricity industry, the privatization ofthe National Power Corporation, and the institution of reforms, including the promulgation of the Philippine Grid Code and the Philippine Distribution Code.

The integral of the Active Power with respect to time, measured in Watt-hour(Wh) or multiples thereof. Unless otherwise qualified, the term “Energy” refers to Active Energy.

The time average of the instantaneous power over one period of the electricalwave, measured in Watts (W) or multiples thereof. For AC circuits or Systems, it is the product of the root-mean-square (RMS) or effective value of the voltage and the RMSvalue of the in-phase component of the current. In a three-phase system, it is the sum of the Active Power of the individual phases.

The component of System Loss that refers to the Energy used in the proper operation of the Distribution System (e.g. substation service) and any unbilled Energy that is used for community-related activities

The component of System Loss that refers to the Energy used in the proper operation of the Grid (e.g. station service) that is not classified as Technical Lossor Non-technical Loss

A weather condition that results in abnormally high rate of ForcedOutages for exposed Components while such condition persists, but does not qualify as a Major Storm Disaster. An Adverse Weather condition can be defined for a particularSystem by selecting the proper values and combinations of the weather conditionsreported by the Weather Bureau including thunderstorm, wind velocity, precipitation, andtemperature.

A notice issued by the System Operator, including Yellow Alert, Blue Alert,and Red Alert, to notify the Grid Users that an alert state exists.

An agreement between a User and the Distributor (or the Grid Owner), which specifies the terms and conditions pertaining to the renovation or modification of the User System or Equipment at an existing Connection Point in the Distribution System (or the Grid).

Support services such as Frequency Regulating and Contingency Reserves, Reactive Power support, and Black Start Capability which are necessary to support the transmission capacity and Energy that are essential in maintaining Power Quality and the Reliability and Security of the Grid and/or the Distribution System

The product of the root-mean-square (RMS) or effective value of thecurrent and the root-mean-square value of the voltage. For AC circuits or systems, it is the square root of the sum of the squares of the Active Power and Reactive Power,measured in volt-ampere (VA) or multiples thereof.

Such date as may be appointed by the Secretary of the DOE by orderof the Act for the transfer of the Grid Owner’s assets to Users or vice versa.

The regulation of the power output of GeneratingUnits within a prescribed area in response to a change in system Frequency, tie-lineloading, or the relation of these to each other, so as to maintain the Power SystemFrequency or the established interchange with other areas within the predetermined limits or both.

The process of automatically and deliberately removingpre-selected Loads from a power System in response to an abnormal condition in order tomaintain the integrity of the Power System.

The long-term average fraction of time that a Component or system is in serviceand satisfactorily performing its intended function. Also, the steady-state probability thata Component or system is in service.

The average of the assets at the beginning and end of the period.

The ratio of average receivables to daily sales.

The average of the inventory at the beginning and end of the period.

The average of the accounts receivable at the beginning and end of theperiod.

The average of the sales at the beginning and end of the period.

• The average of the assets at the beginning and end
• of the period.

A form of protection that operates independently of the specified Components in the primary protective system. It may duplicate the primary protection or may be intended to operate only if the primary protection fails or is temporarily out ofservice.

The ability to respond to a re-dispatch performed by the System Operator during a trading interval, on either a regular or an ad hoc basis.

Refers to a Generating Unit that has Fast Start capability and can Synchronize with the Grid to provide its declared capacity for a minimum period of eight (8) hours. Also called Cold Standby Reserve.

Three sinusoidal voltages with equal frequency andmagnitude and displaced from each other in phase by an angle of 120 degrees

The process of recovery from Total System Blackout using a Generating Unitwith the capability to start and synchronize with the Power System without an external power supply.

The ability of a generating unit to go from a shutdown condition toan operating condition and start delivering power to the Grid without offsite power.

A notice issued by the System Operator when a tropical disturbance is expectedto make a landfall within 24 hours.

The ratio of book equity to the number of shares outstanding.

Any day on which banks are open for business

Refers to the data submitted by the Generator forits Scheduled Generating Unit, which is used by the Market Operator in preparing theday-ahead Dispatch Schedule. It includes declaration of capability and availability, Generation Scheduling and Dispatch Parameters, and Price Data.

The ratio of cash plus short-term securities to current liabilities.

The process of scheduling generation facilities and issuing Dispatch Instructions to industry participants, considering the energy demand, operating reserve requirements, security constraints, outages and other contingency plans to achieveeconomic operation while maintaining quality, reliability, and security of the Grid.

The process of issuing direct instructions to the Electric Power Industry Participants by the System Operator to achieve an economic operation while maintaining Power Quality, Stability, and the Reliability and Security of the Grid

A mechanical switching device, which is capable of making, carrying, andbreaking current under normal circuit conditions and also capable of making, carrying fora specified time, and breaking current under specified abnormal circuit conditions, suchas a short circuit.

The Demand that occurs simultaneously with any other Demand

The data pertaining to a User Development once theoffer for a Connection Agreement or an Amended Connection Agreement is accepted.

The date, specified in the Connection Agreement or Amended ConnectionAgreement, when the User Development is scheduled to be completed and be ready for connection to the Grid.or to the distribution System

A piece of Equipment, a line or circuit, a section of line or circuit, or a group ofitems, which is viewed as a unit for a specific purpose.

The data which replaces the estimated values that wereassumed for planning purposes, with validated actual values and updated estimates forthe future and by updated forecasts, in the case of forecast data.

An agreement between a User and the Grid Owner (or the Distributor), which specifies the terms and conditions pertaining to the connection of theUser System or Equipment to a new Connection Point in the Grid (or the Distribution System).

Assets that are put primarily to connect a Customer to the Grid and usedfor purposes of transmission connection services for the conveyance of electricity.

The point of connection of the User System or Equipment to the Grid (forUsers of the Grid) or to the Distribution System (for Users of the Distribution System).

The drawings prepared for each Connection Point, which indicate the equipment layout, common protection and control, and auxiliaries at theConnection Point.

The Dispatch Schedule prepared by the Market Operator after considering operational constraints, including the Grid constraints, changes in Generating Unit Declared Data and parameters, and changes in forecasted data.

Generating capacity from Qualified Generating Units allocated tocover loss of a synchronized generating unit or the power import from a single-circuit (grid) interconnection, whichever is larger.

A facility used for monitoring and controlling the operation of the Grid,Distribution System, or a User System.

Refers to the condition when the loading of transmission lines or substation Equipment is between 90 percent and 100 percent of the continuous rating.

An entity who engages in the activity of purchasing electricity supplied through atransmission or distribution system. Where the electricity requirements of such entity arepurchased from a Supplier, it is not considered as Customer.

The reduction in the Supply of Electricity to a Customeror the disconnection of a Customer in a manner agreed upon for commercial purposes,between a Customer and its Generator, Distributor, or Supplier.

The process of evaluating a Distributor’s (or Supplier’s) Customer Service Program by using a statistically valid Transactions Survey.

A Customer with one or more Generating Units not subject to Central Dispatch, to the extent that it operates exclusively to supply all or partof its own electricity requirements, and does not export electrical power using the Distribution System.

The day-to-day transactions between a Distributor (or Supplier) and its Customers including payment of bills, application for connection, and customer complaints. It also includes any activity that the Distributor (or Supplier) does to add value or efficiency to these transactions.

The totality of the Customer Services offered by a Distributor (or Supplier).

A listing of Customer Services that measure how effectively a Distributor (or Supplier) conducts its day-to-day transactions with its Customers. Customer Service Standards are intended to ensure Customer satisfaction.

Total annual sales divided by 365 days

The ratio of average inventory to cost of goods sold per day.

The ratio of long-term debt to total long-term capital.

The ratio of total liabilities to total assets.

The data provided by the Generator in accordance with the latest/currentGenerating Unit parameters.

The Capability of a Generating Unit as declared by the Generatornet of station service.

A condition resulting from a User Development or a Gridexpansion project that has a Material Effect on the Grid or the System of other Usersand which can be verified through Grid Impact Studies.

A condition resulting from a User Development or a Distribution System expansion projectthat has a Material Effect on the Distribution System or the System of other Users and which can be verified through Distribution Impact Studies

The Active Power and/or Reactive Power required by a Load at any given time.

The reduction in Demand for the control of the Frequency when the Gridis in an Emergency State. This includes Automatic Load Dropping, Manual LoadDropping, demand reduction upon instruction by the System Operator, demanddisconnection initiated by Users, Customer Demand Management, and Voluntary LoadCurtailment.

A warning from the System Operator, not precededby any other warning, which is issued when a Demand Reduction is expected within the next 30 minutes.

The projected Demand and Active Energy related to a Connection Point in the Grid or  to each Connection Point in the Distribution System.

The government agency created pursuant to Republic ActNo. 7638 which is provided with the additional mandate under the Act of supervising therestructuring of the electricity industry, developing policies and procedures, formulatingand implementing programs, and promoting a system of incentives that will encourageprivate sector investments and reforms in the electricity industry and ensuring anadequate and reliable supply of electricity.

Additional data, which the Grid or Distributor Owner requires, for the conduct of a more accurate Grid or Distribution planning study.

The opening of an electrical circuit to isolate an electrical Power System orEquipment from a power source.

The process of apportioning the total Demand of the Grid through the issuance of Dispatch Instructions to the Scheduled Generating Units and the Generating Units providing Ancillary Services in order to achieve the operational requirements ofbalancing Demand with generation that will ensure the Security of the Grid.

Refers to the instruction issued by the System Operator to theGenerators with Scheduled Generating Units and the Generators whose Generating Unitswill provide Ancillary Services to implement the final Dispatch Schedule in real time.

The target loading levels in MW for each scheduled generating unit orscheduled Loads and for each reserve facility for the end of that trading intervaldetermined by the Market Operator through the use of a market dispatch optimizationmodel.

Refers to the technical data pertaining tothe Scheduled Generating Units, which are taken into account in the preparation of theDispatch Schedule.

Limits on the extent to which Trading Participants may deviate fromdispatch targets determined by the System Operator in accordance with clause 3.8.7 ofthe WESM Rules.

A panel appointed by the GMC (or DMC) to deal with specificdisputes relating to violations of the provisions of the Grid Code (or Distribution Code).

The set of rules, requirements, procedures, and standards governing Distribution Utilities and Users of Distribution System in the operation, maintenance and development of the Distribution System. It also defines and establishes the relationship of the Distribution System with the facilities or installations of the parties connected thereto.

A set of technical studies which are used to assess the possible effects of a proposed expansion, reinforcement, or modification of the Distribution System or a User Development and to evaluate Significant Incidents

.The conveyance of electric power by a Distribution Utilitythrough its Distribution System.

The system of wires and associated facilities belonging to a franchisedDistribution Utility, extending between the delivery points on the transmission, sub-transmission system, or Generating Plant connection and the point of connection to thepremises of the End-User.

An Electric Cooperative, private corporation, government-ownedutility, or existing local government unit that has an exclusive franchise to operate a Distribution System.

A condition that occurs when small undamped oscillations beginwithout any apparent cause because the Grid is operating too close to an unstablecondition.

The ratio of the highest RMS phase-to-ground power Frequency voltage on a sound phase, at a selected location, during a fault to ground affecting one or morephases, to the RMS phase-to-ground power Frequency voltage that would be obtained at the selected location with the fault removed

Earnings available for common stockholders divided by the number of shares common stock outstanding

A cooperative or corporation authorized to provide electric servicespursuant to Presidential Decree No. 269, as amended, and Republic Act No. 6938 withinthe framework of the national rural electrification plan.

Refers to any person or entity engaged in the Generation, Transmission, Distribution, or Supply of Electricity

A schematic representation, using standard electrical symbols, whichshows the connection of Equipment or Power System Components to each other or toexternal circuits.

A Generating Plant that is connected to a Distribution Systemor the Power System of any User and has no direct connection to the Grid.

A Generating unit within an Embedded Generating Plant.

A person or entity that generates electricity using an Embedded Generating Plant.

The Grid operating condition when a Multiple Outage Contingency hasoccurred without resulting in Total System Blackout and any of the following conditionsis present: (a) generation deficiency exists; (b) Grid transmission voltages are outside thelimits of 0.90 and 1.10; or (c) the loading level of any transmission line or substationEquipment is above 110 percent of its continuous rating.

A person or entity that requires the supply and delivery of electricity for its own use.

Unless otherwise qualified, refers to the Active Energy.

The independent, quasi-judicial regulatory bodycreated pursuant to Republic Act No. 9136, which is mandated to promote competition,encourage market development, ensure customer choice, and penalize abuse of marketpower in the restructured electricity industry and among other functions, to promulgateand enforce the Philippine Grid Code and the Philippine Distribution Code.

All apparatus, machines, conductors, etc. used as part of, or in connection with,an electrical installation.

The System of numbering or nomenclature for the identification of Equipment at the Connection Points in the Grid.

An unscheduled or unplanned occurrence of an abrupt change or disturbance in aPower System due to fault, Equipment Outage, or Adverse Weather Condition

The expected Energy curtailment due togenerating capacity Outages in the specified period.

A voltage level exceeding 230 kV up to 765 kV.

The capability of a Generating Unit or Generating Plant to start and synchronizewith the Grid within 15 minutes.

The time interval from fault inception until the end of the arcextinction by the Circuit Breaker.

The expected current, expressed in kA or in MVA, that will flow into a shortcircuit at a specified point in the Grid or Power System.

The ratio of current assets to current liabilities.

A financial indicator that measures the productivity in theentity’s use of its assets.

A period commencing on 1 January and terminating on 31 December of theyear.

A document containing information and which definesthe operational responsibilities for the Equipment at the Connection Point.

The impression of unsteadiness of visual sensation induced by a light stimuluswhose luminance or spectral distribution fluctuates with time.

An Outage that results from emergency conditions directly associated with aComponent, requiring that it be taken out of service immediately, either automatically oras soon as switching operations can be performed. Also, an Outage caused by humanerror or the improper operation of Equipment.

A geographical area assigned or granted to a Distributor for the Distributionof Electricity.

The number of complete cycles of a sinusoidal current or voltage per unit time,usually measured in cycles per second or Hertz.

A strategy used by the System Operator to maintain the Frequency ofthe Grid within the limits prescribed by the Grid Code by the timely use of FrequencyRegulating Reserve, Contingency Reserve, and Demand Control.

Refers to a Generating Unit that assists in FrequencyControl by providing automatic Primary and/or Secondary Frequency response.

The deviation of the fundamental Power System Frequency from its nominal value.

A facility, consisting of one or more Generating Units, where electricEnergy is produced from some other form of Energy by means of a suitable apparatus.

A conversion apparatus including auxiliaries and associated Equipment,functioning as a single unit, which is used to produce electric Energy from some otherform of Energy.

Any person or entity authorized by the ERC to operate a facility usedin the Generation of Electricity.

The production of electricity by a Generation Company.

Has the same meaning as Generation Company.

The practices and methods not specified in specific standards butare generally accepted by the power industry to be sound and which ensure the safe andreliable planning, operation, and maintenance of a Power System.

The high voltage backbone system of interconnected transmission lines, substations and related facilities, located in each of Luzon, Visayas and Mindanao, or as may bedetermined by the ERC in accordance with Section 45 of the Act.

The set of rules, requirements, procedures, and standards to ensure the safe,reliable, secured and efficient operation, maintenance, and development of the highvoltage backbone Transmission System and its related facilities.

A set of technical studies which are used to assess the possible effects of a proposed expansion, reinforcement, or modification of the Grid or a UserDevelopment and to evaluate Significant Incidents.

The party that owns the high voltage backbone Transmission System and isresponsible for maintaining adequate Grid capacity in accordance with the provisions ofthe Grid Code.

A conducting connection by which an electrical circuit or Equipment isconnected to earth or to some conducting body of relatively large extent that serves asground.

Sinusoidal voltages and currents having frequencies that are integral multiples ofthe fundamental frequency.

Refers to the schedule that indicates the hourly output of the Scheduled Generating Units and the list of Generating Units that will provide Ancillary Services for the next Schedule Day

Refers to the technical data pertaining to the Scheduled Generating Units, which are taken into account in the preparation of the Generation Schedule

The high voltage backbone System of interconnected transmission lines, substations, and related facilities for the conveyance of bulk power.  Also known as the Transmission System.

Refer to the Customer Services that will penalize a Distributor (or Supplier) for failure to provide the required level of service by making payment to affected customers.

. A voltage level exceeding 34.5 kV up to 230 kV.

The Safety Coordinator assigned by the Grid Owner (orthe User) to establish the requested Safety Precautions in the User System (or the Grid).

The ratio of earnings before interest and taxes plus depreciation to interestplus principal payments made during the year.

The loss of service to a Customer or a group of Customers or other facilities.An Interruption is the result of one or more Component Outages.

The period from the initiation of an Interruption up to the time whenelectric service is restored.

A Generating Plant or a group of Generating Plants and its associated Load,which is isolated from the rest of the Grid but is capable of generating and maintaining astable supply of electricity to the Customers within the isolated area.

The electrical separation of a part or Component from the rest of the electricalsystem to ensure safety when that part or Component is to be maintained or when electricservice is not required.

A Customer with a demand of at least one (1) MW, or the threshold valuespecified by the ERC.

A Generation Company whose generating facility at the Connection Pointhas an aggregate capacity in excess of 20 MW.

A financial indicator that measures how an entity is heavily in debt.

A financial indicator that measures the ability of an entity to satisfy its short-term obligations as they become due.

An entity or electrical Equipment that consumes or draws electrical energy.

The international standard for electro-technical Equipment approved andpublished by the International Electrotechnical Commission.

Refers to the condition when the loading of transmission lines orsubstation Equipment is above 100 percent up to 110 percent of the continuous rating

The isolated operation of certain portions of the Grid as a result offorced outages or contingency action by the System Operator.

The ratio of the total Energy delivered during a given period to the product ofthe maximum Demand and the number of hours during the same period.

Generating capacity from Qualified Generating Units allocated to cover intra-hour variations in demand, deviations from generation schedules and hourly forecasts errors.