Republic of the PhilippinesENERGY REGULATORYCOMMISSION

San Miguel Avenue, Pasig City

IN THE MATTER OF THEAPPLICATION FORAPPROVAL OF THE POWERSUPPLY AGREEMENT (PSA)BE1WEEN BOHOL IIELECTRIC COOPERATIVEINC. (BOHECO II) ANDUNIFIED LEYTEGEOTHERMAL ENERGY,INC.(ULGEI) WITH PRAYERFOR CONFIDENTIALTREATMENT OFINFORMATION AND THEISSUANCE OF PROVISIONALAUTHORITY,

BOHOL II ELECTRICCOOPERATIVE, INC.(BOHECO II) AND UNIFIEDLEYTE GEOTHERMALENERGY, INC. (ULGEI),

Applicants.J(- - - - - - - - - - - - - - - -- - - - - - - -J(

ERC CASE NO. 2016-152 RC

DOCl..K.ETEDDate., DCT 07 2016•.'ir:;;'7-"-"-By: ••....Y./L•...._ ..__

NOTICE OF PUBLIC HEARING

TOALL INTERESTED PARTIES:

On 04 July 2016, Bohol II Electric Cooperative, Inc. (BOHECOII) and Unified Leyte Geothermal Energy, Inc. (ULGEI) filed theirjoint Application for the approval of the Power Supply Agreement(PSA) with prayer for confidential treatment of information and theissuance of provisional authority.

UN". 1$:J2ii$111.;'.. -,. .

;ERC CASE,Nq~201,6:)52'l{.C . . .NOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 2 OF 15

In support of said Application, BOHECO II and ULGEI allegedthe following:

2. Capies af BOHECO II's Articles af Incarparatian, By-Laws,Certificate af Registratian and Certificate af Franchise areattached to. the Applicatian as fallaws:

,

Do.cumentBOHECO II's Articles af Incar arationBOHECO II's B -lawsCertificate af Registratian with the NatianalElectrificatian Administratian (NEA)Certificate af Franchise

Applicant BOHECO II is a nan-stack, nan-prafit electriccaaperative existing under the laws af the Philippines, withprincipal affice address at Cantagay, Jagna, Bahal. It isautharized to. distribute and pravide electricity services to. itsmember-cansumers in the Municipalities afAlicia, Anda,Bien Unida, Buenavista, Candijay, Dagahay, Danaa, Duera,Garcia Hernandez, Guindulman, Jagna, Getafe, Mabini,Pilar, Carlas P. Garcia, San Miguel, Sierra Bullanes, Taliban,Trinidad, Ubay, and Valencia, all in the Province af Bahal(hereinafter, "Franchise Area").

"e""D"

_Anrtex"A""B"

1.

3. Meanwhile, Applicant ULGEI is a carparatian.duly arganizedand existing under the laws af the Republic af the Philippineswith principal address at 38th Flaar, One Carparate Center,Julia Vargas car. Meralca Avenue, Ortigas Center, Pasig City,and it manifests the fallawing: I

3.1 ULGEI, as an Independent Pawer ProducerAdministratar, falls within the ambit af Sectians 47and 29 af Republic Act No.. 9136 ar the Electric PawerIndustry Refarm Act af 2001 (EPIRA).

3.2 While ULGEI is a co.-applicant, it manifests that thisjaint applicatian shall neither madify, diminish, narcanstitute as a waiver af ULGEI's rights ar expand itsabligatians and respansibilities as a generatiancamp any under the EPIRA.

3.3 ULGEI has jained in this Applicatian as a ca-Applicant, as required by the Cammissian.

4. Capies af ULGEI's Securities and Exchange CammissianCertificate af Incarparatian, Articles af Incarparatian, By-Laws and General Infarmatian Sheet are attached and aremade integral parts to. the Applicatian as fallaws:

ERC CASE NO. 2016~152RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 3 OF 15

~~f:Anifex-':~~::ft:~;~~;f'~l':.:,/T.;._:.:,\l{/:._~:/:t;~~:D6cijrrieiit~~~;fttm.i::t.t~~~f~j;;t"t"E" Certificate of Registration issued by the Securities

and Exchange Commission (SEC)"F" ULGEI's Articles of Incorporation"G" General Information Sheet

5- BOHECO II and ULGEI may each be served with orders,notices and other legal processes of this Commission throughthe address of their respective counsels at the addressesindicated below.

NATURE OFTHE APPLICATION

6. Pursuant to Sections 23,25,43 (u), and 45 (b) ofthe EPIRA,its Implementing Rules and Regulations (IRR), and otherpertinent rules and regulations, this Application is submittedto the Commission for its consideration and approval of thePSN executed between BOHECO II and ULGEI on 4 April2016.

I.

STATEMENT OF FACTS

BOHECO II's Power Supply and Demand Situation

7. BOHECO II needs to address the insufficiency of its powersupply due to the increasing demand within its franchisearea.

8. BOHECO II currently receives a total of 10 MW from itsexisting suppliers out of its peak requirement of 19-43 MW.With an annual average growth rate of 7 %, BOHECO IIforecasts that its peak demand for the years 2018 to 2019 willbe 21.273 MW.

The Competitive Selection Process

9. BOHECO II and Bohol I Electric Cooperative, Inc. (BOHECOI), collectively, the "1BP ECs", received an unsolicitedproposal from GNPower Ltd. Co.("GNPower") for the supplyof their aggregated short-term baseload demand for theperiod 26 December 2018 to 25 December 2019 andmedium-term baseload demand for the period 26 December2018 to 25 December 2023.

1Attached to the Application as Annex "H".

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 4 OF 15

10. Guided by declared and agreed policy and guidelines asdescribed in the 1BP ECs Rules and Procedures forUnsolicited Proposal, which is Annex A of the Instructions toProponents2, the 1BPECs created the Joint CompetitivePower Supply Procurement ("JCPSP") Board, the 1BPJCPSPBids and Awards Committee ("JBAC") and the 1BP JointTechnical Working Group ("JTWG") to conduct the initialevaluation of GNPower's unsolicited proposal in order todetermine its compliance with 1BP EC's policy andguidelines.

11. The JTWG found the proposal of GNPower consistent withthe criteria set forth in the aforementioned policy andguidelines. A copy of the results of the evaluation is attachedto the Application as "Annex "J".

12. As required by the JBAC, GNPower submitted a Firm andFinal Proposal, containing the Legal, Technical and FinancialDocuments, the Technical Proposal, and the FinancialProposal.

13. After a more detailed evaluation, the JBAC endorsed theGNPower proposal to the 1BP JCPSP Board, which grantedGNPower the Original Proponent status in the CompetitiveSelection Process through Comparative Proposals. A copy ofthe results of the detailed evaluation is attached as Annex "K"of the Application.

14. Other generating companies ("GENCOs") were invited tosubmit Comparative Proposals to challenge GNPower's offerthrough publications in newspapers of general and nationalcirculation for two (2) consecutive weeks and through writteninvitations to the GENCOs published in the Department ofEnergy website. Copies of the invitation as published twice inthe Philippine Daily Inquirer and the Affidavit of Publicationare attached to the Application as Annexes "L" to "L-2".

15. Participating GENCOs submitted letters of intent (LOI), andthey were provided with a copy of the Instructions toProponents (ITP) and due diligence data. Thereafter,transaction conferences were held to clarify and discuss thetransaction process, requirements, rules, and evaluationmethodology. Copies of the LOI from the GENCOs areattached as Annex "M" and series of the Application.

16. During the submission and opening of bids, First Gen andTrans-Asia Oil and Energy Development Corporationsubmitted comparative proposals. First Gen, through thesubmitted documents, manifested that its affiliate, ULGEI,

2 Attached to the Application as Annex "I".

ERC CASE NO. 2016 •.152RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 5 OF 15

will be the proponent in the transaction. Upon evaluation bythe JBAC, it was found that the evaluated effective levelizedprice of ULGEI for the short-term (CY-2016-2018) and ofGNPower for the medium-term (CY 2019-2023) were thelowest. The results 'of the evaluation are shown in theattached Annex "N" of the Application.

17. On 22 January 2016, the JBAC issued a Notice of Award toULGEI and the same was accepted by ULGEI on 26 January2016, copies of which are attached to the Application asAnnexes "0-1" and "0-2", respectively.

18. The 1BP ECs and ULGEI negotiated the final terms andconditions of the PSA based on the Key Contract Termsprovided in the ITP. This led to the execution ofseparate/individual but identical PSAs by and between eachof BOHECOI and BOHECOII and ULGEI.

II.

ABSTRACT OF THE PSAAND OTHER RELATEDINFORMATION

19. The following are the salient terms and conditions of thePSA:

A. Effectivity and Term of Agreement._The Agreementshall take effect immediately from Effective Date and shallremain in force and effect until 25 December 2018. Theobligation of the ADMINISTRATORto sell and deliver thecontracted capacity and its associated energy and theobligation of the CUSTOMERto accept and pay for the sameshall commence upon receipt by the Parties of the ERCApproval, whether provisional or final, of this Agreement.

B. Supply of Contracted Capacity and AssociatedEnergy. The ADMINISTRATOR shall, during the entireterm of this Agreement, make available, sell and deliver, orcause to be delivered to the CUSTOMER the ContractedCapacity and Associated Energy ("Contracted Capacity andAssociated Energy") in accordance with Annex "A" at thePoint of Delivery, whether sourced from the Plant or fromother electricity generators including the WESM.

CONTRACTED CAPACITY AND ASSOCIATED ENERGY

TermEffective Date until 25 December 201626 December 2016 to 2 December 20126 December 201 to 2 December 2018

(kW)

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE60F15

CUSTOMER shall, over the term of this Agreement, pay theguaranteed associated energy. The guaranteed associated energyshall be equal to the product of 70% of Contracted Demand, and No.of Hours of the applicable Billing Period, subject to adjustment inkWh due to Force Majeure, Customer's Service InterruptionAdjustment, or other causes, such as safety, as may be provided bylaw, rule, regulation or order of a competent authority inaccordance to Annex "B"of the PSA.

CUSTOMERmay be allowed to increase the Contracted Capacity atthe same rate subject to: (a) the Technical Limits of the Plant, theconstraints relating to the transmission lines, substations and other .facilities, (b) the availability of capacity of the ADMINISTRATOR.that may be utilized to serve the increase in Contracted Capacity,and (c) such other terms and conditions as the Parties may agreeupon.

C. Basic Energy Charge, Applicable Load Factor, andGuaranteed Monthly Payment

BASIC ENERGYCHARGE

The Basic Energy Charge or BECshall be equal to:

BEC = CRFALF + VOMF + Generation Payment Rate + Administration Fee

Where:

a) CRFALF is the Capital Recovery Fee with values for differentCapacity Utilization Factors (CUF) or Applicable LoadFactors (ALF), effective until 25 December 2018. The CapitalRecovery Fees, as tabulated in Annex "y", shall be fixedthroughout the term of the Agreement.

b) YOMF is the Variable O&MFee equivalent to the value statedin Annex "Y"is effective until 25 December 2015.

The YOMF shall be adjusted annually at a rate equivalent to theactual increase (or decrease) in the Philippine Consumer PriceIndex - base period calendar year 2006=100 ("CPI") published bythe Philippines Statistics Authority, or its succeeding entity, for theyear. For purposes of adjusting the YOMF, the base CPI shall beAverage 2014. The first adjustment to the YOMF shall be made on26 December 2015 and such adjustment shall take effect from 26December 2015 up to 25 December 2016.

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE70F15

The VOMF shall be adjusted annually using the following formula:

Adjusted VOMFnCPln-l= VOMFn_l * ---CPln-2

Where:

VOMFn =VOMFn-1 =CPIn-1 =

CPIn-2 =

VOMF for year nVOMF for year n-lAverage Philippine Consumer Price Index (CPI)of year n-l, as published by PhilippineStatistics Authority or its successorAverage Philippine Consumer Price Index (CPI)of year n-2, as published by PhilippinesStatistics Authority or its successor

A sample computation on the adjustment ofVOMF is provided in

Annex "V".

c) Generation Payment Rate = Rate x In, such that if In< 1, In = 1

Where:

Rate = is subject to inflation factor, In, with value stated in Annex "V".

In = Inflation Factor for the Billing Period under consideration,where Inflation Factor shall be:

FXl ( CEl FCPl) LCPl WPGlFXo

0.398 + 0.240 CEo + 0.080 FCPo

+ 0.085 LCPo + 0.084 WPGoWPM

+ 0.085 WPM~ + 0.04792

Where:

FX1 = Philippine Peso vs US Dollar Reference Rate as published bythe Bangko Sentral ng Pilipinas at the last working day of the BillingPeriod under consideration;

FXo = Philippine Peso vs US Dollar Reference Rate as published bythe Bangko Sentral ng Pilipinas as of 24 May 2013 equivalent to41.5°8;

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE80F15

CE, = US Price Index for Capital Equipment, line 63 bb,International Financial Statistics (2010=100) for the period of pricedetermination;

CEo = US Price Index for Capital Equipment, line 63 bb,International Financial Statistics (2010=100) for the month of May2013 equivalent to 104.185;

FCP, = US Consumer Price Index, All Items, line. 64, InternationalFinancial Statistics (2010=100) for the period of pricedetermination;

FCPo = US Consumer Price index, All Items, line 64, InternationalFinancial Statistics (2010=100) for the month of May 2013equivalent to 106.828;

LCP, = Consumer Price Index for National Capital Region, All Items(2006=100) as published by the National Statistics Office for theperiod of price determination.

LCPo= Consumer Price Index for National Capital Region, All Items(2006=100) as published by the National Statistics Office for themonth of May 2013 equivalent to 125.7.

WPGl = Manufactured Goods Classified Chiefly by MaterialsComponent of the General Wholesale Price Index for NationalCapital Region (1998=100) as published by the National StatisticsOffice for the period of price determination.

WPGo = Manufactured Goods Classified Chiefly by MaterialsComponent of the General Wholesale Price Index for NationalCapital Region (1998=100) as published by the National StatisticsOffice for the month of May 2013 equivalent to 170.

WPM, = Machinery and Transport Equipment component of theGeneral Price Index for National Capital Region (1998=100) aspublished by the National Statistics Office for the period of pricedetermination.

WPMo = Machinery and Transport Equipment component of theGeneral Wholesale Price Index for National Capital Region(1998=100) as published by the National Statistics Office for themonth of May 2013 equivalent to 152.2.

d) Administration Fee shall be equivalent to the value specifiedin Annex "V", effective until 25 December 2018. For theavoidance of doubt, the Administration Fee shall be fixed

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE90F15

throughout the term of the Agreement. Only theAdministration Fee shall be subject to 12% VAT.

APPLICABLE LOAD FACTOR

Formula:ED

ALF (%) = --------(CCx N) - L~=l Xi:t EQ

Where:

ED =

CC =N =k =Xi =

ALF

EQ

=

=

Capacity Utilization Factor (CUF) or ApplicableLoad Factor (ALF) for the Billing Period, in %,rounded off to 2 decimal places (E.g.85.62%).Total energy delivered for the Billing Periodinclusive of Exchange in Quantity, if any, kWhContracted Capacity, kWTotal number of hours in a Billing PeriodTotal number of affected hours in a Billing PeriodAdjustment in kWh due to Force Majeure,Customer's Service Interruption Adjustment, orother causes, such as safety, as may be provided bylaw, rule, regulation or order of a competentauthorityExchanged Quantity, defined as the total energydelivered to or received from the other 1BP EC,kWh

Sample Computation:

Energy Delivered (kWh) 2,600,000.

Contracted Canacitv (kW) 5,000

N, no. of hours in a Billing Period 744(kW)k, no. of affected hours (hours) ~

Xl (kW) 1,000

X2 (kW) 2,000

X3 (kW) 3,000

2,600,000 kWhApplicable Load Factor = (5,000 x 744) - (1,000 + 2,000 + 3,000)

.',

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARINGf 20 SEPTEMBER 2016PAGE 10 OF 15

2,600,000 kWh=-----3,714,000 kWh

= 70.00%

GUARANTEED MONTHLY PAYMENT

1. If the Applicable Load Factor is less than 70%, the followingMinimum Charge formula shall apply:

Guaranteed Monthly Payment= (Applicable CRF at 70% Load Factor + VOMF+ Generation Payment Rate + AF)x Adjusted Associated Energy

2. The Adjusted Associated Energy shall be determined asfollows:

k

Adjusted Associated Energy = 70% * CC * N - LXi ::!:: EQi=l

Sample Computation:

Load Factor is less than 0%:

Ener Delivered (kWh), ED

Contracted Ca acit (kW)

N, no. of hours in a Billin Period (kW)

k, no. of affected hours (hours)

Xl (kW)

X2 (kW)

X (kW)

E (kWh) (delivered to other 1BPEC)

A licable Load Factor %A licable CRF at 0% Load Factor (PhP kWh)

VOMF (Ph kWh)

Rate (Ph kWh)

2, 66,800

5,000

6,000

,000

2,000,0006 %

2.340.052

2.2 421.0

0.1 00

The following Guaranteed Monthly Payment shall apply:

Adjusted Associated Energy (kWh) = 2,604,000 - (6,000 + 4,000 + 2,000) - 5,000= 2,587,000

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 11OF 15

Guaranteed Monthly Payment (PhP) = (2.3477 + 0.0529 + (2.2442 * 1.05) +0.1900) * 2,587,000= 12,797,914.87

III.

GENERATION RATE AND IMPACT ON BOHECO II'sRETAIL RATES

20. As earlier stated, BOHECO II currently receives a total oflOMW from its existing suppliers out of its peak requirementof 19-43MW. BOHECO II forecasts that its peak demandfrom 26 December 2016 to 25 December 2018 will be21.273MW. Thus, BOHECO II needs to address theinsufficiency of its power supply due to the increasingdemand within its franchise area.

21. The additional supply from ULGEI will significantly augmentthe supply deficiency of BOHECO II and will decrease theadverse effects thereof by providing a stable and adequatesource of electricity.

22. Among the suppliers capable of providing additional energyto BOHECO II and the rest of the 1BP ECs, ULGEI's ratesproved to be more reasonable and competitive.

23. BOHECO II simulated a rate impact analysis whichultimately resulted in a PhPO.3363/kWh decrease with theexecution of the PSAwith ULGEI:

Generation Rate Impact3

Simulation of Generation Mix Rate with ULGEI forthe Year 2016-2018

Forecasted Amount Percent Resulting 2016 WeightedPower Average AverageSupplier Demand (PhP) (with Share Capacity Rate Rate

(kW) VAT) (%) Factor (%) (P/kWh) (kWh)

GREENCORE 10,000.00 53,591.05 52.13% 100% 5.3591

' .. 5.0647'ULGEI . 7,000.00 31,326-44 . '36-49% 100% 4-4752

3 Assumptions:Inflation rate: 3%Greencore Average Price2016-201B:5.3591 PHP /kWhULGEI Average Price2016-201B:4-4752 PHP /kWhWESM Average Price2016-201B:5-4419 PHP /kWh (without VAT)Greencore Contract Demand: 10MWULGEI Contract Demand: 7 MWForecasted Average Demand2016-201B:20.228 MW

.. ~, .. .

ERC CASE NO. 2016-152 RCNOTICE OF PUBLICHEARINGj 20 SEPTEMBER 2016PAGE 12OF 15

WESM 3,228.30 17,568.13 16.83% 100% 5-4419

TOTAL 20',228~30 102,485.62

Simulation of Generation Mix Rate without ULGEIfor the Year 2016-2018

Forecasted Amount Percent Resulting 2016 WeightedPower Demand (PhP) (with Share Capacity Average AverageSupplier (kW) VAT) (%) Factor (%) Rate Rate

(P/kWh) (kWh)

GREENCORE 10,000.00 53,591.05 52.13% 100% '5.3591...

ULGEI . . .' ... .

5-4010WESM 10,228.30 55,661.57 53.32% 100% 5-4419

TOTAL 20,228.30 109,252.63

Generation RateImpact

24. Incompliance with Rule 20 of ERC Rules of Practice andProcedure relative to the submission of supportingdocuments and information for the approval of the PSA and.the rate structure embodied therein, Applicants BOHECO IIand ULGEI also attach to the Application the followingdocuments to form integral parts hereof:

"R""S""T""U"

25. Applicants BOHECO II and ULGEI are reserving-their rightto submit other documents, either in the course of thehearing or as may be required by the Commission.

IV.

COMPLIANCE WITH PRE-FILING REQUIREMENTS

26. In compliflnce with Rule 6 of the ERC Rules of Practice andProcedure, Applicants have furnished the.legislative bodies ofPasig City, Municipality of Jagna, and the Pro\jnce of'Boholwith copies of their Application. with all its. annexes. Thecertifications attesting receipts and postings thereof are to beattached to the Application as Annexes "Z", "AA" and "BB",'respectively. Applicants have caused the publication of theirApplication in a local newspaper circulating' within thefranchise area of BOHECO II. Copies of the Affidavit of

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 13OF 15

Publication and the local newspaper including the relevantpage thereof are to be attached to the Application as Annexes"CC","DD", and "EE", respectively.

Y.

MOTION FOR CONFIDENTIAL TREATMENT OFANNEXES "I" to "N" and "Q" to "Y"

27. Under Rule 4 of the ERC Rules of Practice and Procedure, aparty to any proceeding before the Commission may requestthat certain information not be disclosed and be treated asconfidential, by describing with particularity the informationto be treated as confidential, specifying the ground for theclaim of confidential treatment of the information and, ifapplicable, specifying the period during which theinformation must not be disclosed.

28. BOHECO II requests for the confidential treatment ofAnnexes "I" to "N" of the Application, consisting of the tenderdocuments. These annexes show the individual offers of thebidders which participated in the 1BP JCPSP, as well as theresults of the evaluation. The 1BPECs, BOHECO II included,are bound by their undertaking to secure and keep inconfidence the offers and the proposed terms of supply, soas not to prejudice or pre-empt any future CSPs in whichthese bidders will participate. Otherwise, BOHECO I andBOHECO II may be held liable for damages for breach ofconfidentiality, and eventually, risk their good relations withthe suppliers concerned.

29. Similarly, Applicant ULGEI respectfully moves for theconfidential treatment of Annexes "Q" to "Y" of theApplication. These annexes, exclusively owned by ApplicantULGEI, contain information which are considered part of itsbusiness and trade secrets. As such, ULGEI has the soleproprietary interest and will be unduly prejudiced shouldthey be disclosed to the public.

30. In accordance with Section l(b), Rule 4 of the ERC Rules ofPractice and Procedure, Applicants BOHECO II and ULGEIsubmit one (1) copy each of Annexes "I" to "N" and "Q" to "Y"in a sealed envelope, with the envelope and each page of thedocuments stamped with the word "Confidential".

. '

ERC CASE NO. 2016-152 RCNOTICE OF PUBLIC HEARINGf 20 SEPTEMBER 2016PAGE 14 OF 15

VI.

DEMAND SIDE MANAGEMENT

31. BOHECO II undertakes to submit a copy of the Demand SideManagement program as part of its submission to the EnergyRegulatory Commission.

VII.

PRAYER FOR PROVISIONAL AUTHORITY

32. All the foregoing allegations are re-pleaded by reference insupport of herein Prayer for the issuance of ProvisionalAuthority to implement the subject PSA;

33. The continuous additional supply shall help keep stablepower supply for the increasing demand and low and stablecost of power available at the WESM and for the end-users;and

34. To emphasize the necessity of a provisional approval ofherein Application, a Judicial Affidavit to support the prayerfor provisional authority will be attached to the Applicationas Annex "GG".

PRAYER

WHEREFORE, premises considered, it is most respectfullyprayed that this Honorable Commission (i) treat asconfidential all information in Annexes "I" to "N" and"Q" to "V" ; (ii) pending hearing on the merits, issue aProvisional Authority authorizing the immediateimplementation of the Power Supply Agreement betweenApplicants BOHECO II and ULGEI, including the ratestructure therein, as applied; (iii) after due notice andhearing, approve the Application, the Power SupplyAgreement, and the rate structure contained therein; and (iv)in case the final approval is issued after ULGEI starts actualdelivery of power to BOHECO II an order retroactivelyapplying the final approval to the date of actual delivery.

Other reliefs as may be just and equitable under the premisesare, likewise, most respectfully prayed for.

The Commission has set the Application for initial hearing,Expository Presentation, Pre-trial Conference, and presentation ofevidence on 03 November 2016 (Thursday) at two o'clock in

. '

ERCCASENO. 2016-152 RCNOTICEOF PUBLIC HEARING/ 20 SEPTEMBER 2016PAGE 15OF 15

the afternoon (2:00 P.M.) at BOHECO II Main Office locatedat Cantagay, Jagna, Bohol.

All persons who have an interest in the subject matter of theproceeding may become a party by filing, at least five (5) days prior tothe initial hearing and subject to the requirements in the ERC's Rulesof Practice and Procedure, a verified petition with the Commissiongiving the docket number and title of the proceeding and stating: (1)the petitioner's name and address; (2) the nature of petitioner'sinterest in the subject matter of the proceeding, and the way andmanner in which such interest is affected by the issues involved in theproceeding; and (3) a statement of the relief desired.

All other persons who may want their views known to theCommission with respect to the subject matter of the proceeding mayfile their opposition to the Application or comment thereon at anystage of the proceeding before Applicants conclude the presentationof its evidence. No particular form of opposition or comment isrequired, but the document, letter or writing should contain the nameand address of such person and a concise statement of the oppositionor comment and the grounds relied upon.

All such persons who wish to have a copy of the Application mayrequest from the Applicants that they be furnished with the same,prior to the date of the initial hearing. Applicants are hereby directedto furnish all those making such request with copies of theApplication and its attachments, subject to the reimbursement ofreasonable photocopying costs. Any such person may likewiseexamine the Application and other pertinent records filed with theCommission during the standard officehours.

WITNESS, the Honorable Chairman, JOSE VICENTE B.SALAZAR, and the Honorable Commissioners, ALFREDO J.NON, GLORIA VICTORIA C. YAP-TARUC, JOSEFINAPATRICIA A. MAGPALE-ASIRIT, and GERONIMO D. STA.ANA, Energy Regulatory Commission, this 20th day of September2016 in Pasig City.

J. MARASIGANiefofStaff

. r Officeof the Chairman and CEO~ ~ hi

LS: rya/~1 apv.2016-152 RC BOHECO II and ULGEI.doc