The Central Negros Electric Cooperative Board yesterday unanimously approved Resolution No. 9910, requesting the Energy Regulatory Commission to conduct the succeeding hearings on CENECO’s claim for over/under recoveries covering 2004-2011 in Bacolod City.
The CENECO Board, headed by Arnel Lapore, did not oppose the request of many CENECO consumers that the subsequent hearings be held in Bacolod to encourage wider participation and involvement, CENECO general manager Sulpicio Lagarde Jr. said.
The Board meeting was also attended by CENECO vice president Michael Maravilla, secretary Roy Cordova, treasurer Cesar Leonardia, directors Luis Cuenca, Zenaida Lacson, Jacinto Torres Jr., Paul Lizares and Roberto Montelibano.
Lagarde said CENECO had filed an application for the confirmation of the under/over recoveries in the implementation of the automatic cost adjustment and true-up mechanism processes pursuant to ERC Resolution No. 16, Series of 2009, as amended by Resolution No. 21, Series of 2010, on March 26, 2012.
He said the resolution requires all distribution utilities and electric cooperatives to file their respective consolidated applications for the approval of over-recoveries made or under-recoveries incurred in the implementation of various automatic cost adjustments and true-up mechanisms adopted by the Commission.
These include the automatic generation rate and systems loss adjustment mechanism, transmission rate adjustment mechanism, lifeline rate recovery mechanism, and local franchise recovery in the implementation of lifeline rates by DUs.
There are also guidelines for a true-up mechanism of the over/under recovery in the implementation of the inter-class cross subsidy removal of DUs, treatment of prompt payment discount, circulation of over/under recovery in the implementation of the system loss rate by DUs, and the calculation of the over/under recovery on transmission rates, he said.
Lagarde said the Commission has yet to set the date for the next hearing. “We shall promptly advise our stakeholders as soon as we obtain confirmation,” he added.*CGS