Republic of the Philippines ENERGY REGULATORY COMMISSION/; San Miguel Avenue, Pasig City IN THE MATTER OF VIOLATION OF ERC ORDERS, RULES AND REGULATIONS ERC CASE NO. 2012 - 009 MC RE: Violation of Chapter 3, Sections 3.2.3.3 and 3.2.3.4 of the Philippine istribution Code (PDC) and Section 1.7.6 of the Distribution Services and Open Access Rules (DSOAR) LA UNION —_ELECTRIC COOPERATIVE, INC. (LUELCO), Respondent. x es DECISION On January 25, 2011, Ms. Ana Lolim, Vice-President of LDP Farms Food Corporation (LDP Farms) filed a complaint against La Union Electric Cooperative, Inc. (LUELCO) due to the alleged voltage fluctuations in Bray. Rabon, Rosario, La Union. Acting on the said complaint, the Commission issued a Show Cause Order on January 30, 2012 directing La Union Electric Cooperative, Inc. (LUELCO) to explain why no administrative penalty and/or criminal action should be imposed upon it and/or criminal action instituted against its directors and officers for its failure to comply with the Philippine Distribution Code (PDC) and Distribution Services and Open Access Rules (DSOAR). 4ERC CASE NO. 2012-009 MC Order/October 1, 2012 Page 2 of 4 Relative thereto, on March 22, 2012, LUELCO filed its explanation alleging, among others, that: 1) It was not aware of the complaint made by LDP Farms regarding the occurrence of low voltage/s in their establishment; 2) It took initiative to look into the complaints regarding low voltages and in fact sent technical men to conduct assessment of the complainant’ electrical system and offered suggestions and recommendations to address the problem; 3) To address the problem on power quality, LUECO acquired variable shunt capacitors and installed the same at the primary side (connection point) near and before its distribution transformers. Likewise, it acquired a measuring/recording instrument (power quality analyzer) for the same purpose; 4) It initiated a joint testing of kilowatt hour meter, load inspection and monitoring/recording of voltages/current at the LDP Farms and at LUELCO’s owned Damortis Substation on September 28 - October 1, 2010 in the presence of an ERC Engineer; 5) On various dates, succeeding load monitoring and power quality recording and assessment were conducted in the subject establishment, It was found that there was no incidence or occurrence of low or high voltages recorded and measured; and 6) LUECO believed that it did not violate the specific provisions of the Philippine Distribution Code (PDC) because the incidents of under and over voltages occurred at the secondary side (load side, 230/460 Volts) of LDP Farms’ ‘owned distribution transformers (equipment). ‘Subsequently, on March 23, 2012, the Commission issued an Order setting the case for conference. During the conference on April 17, 2012, LUELCO appeared and reiterated its Position as cited in its explanation. Further, it manifested to submit a copy of the “Contract of Power Supply” with LDP Farms, to support its allegation that the problem occurred at the secondary side (load side, 230/480 Volts) of LDP Farms’ owned j distribution transformers, and a copy of LDP Farms’ sub-éifttion voltage profile showing the voltage variations for the period 2009 to 2011 sf 4ERC CASE NO. 2012-009 MC Order/October 1, 2012 Page 3 of 4 After careful evaluation of the pertinent documents submitted herein, the Commission found that the under and over voltages existed within LDP Farms’ load, more specifically, at its connection asset, and not on the primary side of LUELCO's distribution system WHEREFORE, premises considered, La Union Electric Cooperative, Inc. (LUELCO) is hereby EXONERATED from the aforesaid violation Accordingly, this case is hereby declared Closed and Terminated. SO ORDERED. Pasig City, October 1, 2012. te A, [tr fs G. aie Chaiperson x a/ MARIA TI "ANEDA JO! Conffnissi Me Wickaw at ALFREDO J:KiON GLQRIA VICTORIA g. YAP-TARUC Commissioner Commissioner Fetes vo" sotzov200ERC CASE NO. 2012-009 MC Order/October 1, 2012 Page 4 of 4 Copy Furnished: MR. RAMON C. POSADAS General Manager La Union Electric Cooperative, Inc. (LUELCO) Sta, Rita East, Aringay, La Unio MS, ANA MARIA G. LOLIM Vice-President LDP Farms Food Corporation Brgy. Rabon, Rosario, La Union