GUERNSEY provided analytical services related to electric sector regulation, electric power transmission rates and tariffs, petroleum deregulation and natural gas regulatory matters, and other topics. GUERNSEY managed $1.2 million staff development projects for the ERB. We provided an “Institutional Analysis of the Board” covering structure, funding sources, training needs, physical support, analysis of computer systems and analysis of legal framework. GUERNSEY provided a detailed study of the legal framework for electric power regulation in the Philippines on “Powers of the ERB in Transmission Pricing” and “The Existing Legal Framework for Natural Gas Regulation,” a detailed study of the petroleum and natural gas law of the Philippines.
GUERNSEY provided on-site consulting services along with development and implementation of numerous utility training programs for ERB. This project was partially funded by grants from the World Bank. Technical training and on-site support covered the areas of regulation power systems operation and planning. Tasks involved:
- training in the area of overview of power systems, including generation stations, transmission system networks and local distribution systems
- description and analysis of power system operations
- planning relating to capacity planning, transmission systems, system operations and organization
- analysis of power system economics including generation, transmission and distribution costs
- review of line loss, reactive power, power brokers, coordination agreements, fuel supply contracts and pricing transmission services
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Various tasks performed by GUERNSEY included development and implementation of regulatory cost and finance analysis training for ERB staff in Manila, and an electric utility rates analysis training program for ERB staff, also conducted in Manila. GUERNSEY also prepared an advisory letter critiquing the present NEA rate manual, and recommended changes to be responsive to the Philippine electric utility industry and state-of-the-art electric utility rate practices. Advisory letter recommendations addressed the use of uniform system of accounts for utilities subject to ERB regulation. GUERNSEY conducted follow-up on-site training and consulting assistance to rate staff of the ERG in implementing tariffs, cost accounting and other utility policy issues. The training and consulting included full analysis and implementation of the changes in NPC wholesale rates from an energy-only rate to a two-part demand and energy rate.
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