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(Urr Inec) Sworn Statement of Manuel Flora
(Urr Inec) Sworn Statement of Manuel Flora
IN THE MATTER OF THE APPLICATION FOR APPROVAL OF OVER/ UNDER RECOVERIES BASED ON THE FORMULA ON THE VARIOUS AUTOMATIC COST ADJUSTMENTS AND TRUE-UP MECHANISMS AND CORRESPONDING CONFIRMATION PROCESS PURSUANT TO ERC RESOLUTION No. 16, SERIES OF 2009 AS AMENDED BY RESOLUTION NO. 21, SERIES OF 2010. ERC CASE No. 2011-023 CF
The testimony of Mr. Manuel S. Flora is being offered to substantiate the allegations in the application, more particularly, that INEC implemented certain automatic cost adjustments and true-up of other pass-through charges adopted by the Honorable Commission, and in the said implementation made some over-recoveries or underrecoveries from its customers. In general, his testimony is likewise being offered to prove other relevant and/or material allegations in the Application.
TESTIMONY PROPER:
1.
Q: Please state you name, and other personal circumstances. A: I am Manuel S. Flora, of legal age, Filipino, and with office address at the Main Office of the Ilocos Norte Electric Cooperative, Inc. (INEC), Dingras, Ilocos Norte. Brgy. Suyo,
2.
A: I am currently employed by the Ilocos Norte Electric Cooperative, Inc. (INEC), an electric cooperative duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with present position of Rate Specialist/Assistant Regulatory Compliance Officer.
3.
Q:
1. As Rate Specialist, I am in-charge in the computation of monthly billing rates, including computation of applicable or relevant adjustable/variable tariffs considering allowable returns and projected revenues for the cooperative.
2. I also evaluate monthly billing rates, particularly adjustable tariff of the cooperative if compliant with regulatory agencies, as well as sufficient for revenue requirements and allowable returns for the cooperative; advises management for adjustments; prepares justification for submission to regulatory agencies.
3. Develops and maintains computer spreadsheet model and databases for rate and financial reporting, analysis and calculations
4. Performs financial and rate impact analysis by compiling financial and rate information and data, analyzing trends, producing forecasts, determining rate impact of financial policies and reviewing and analyzing cooperatives annual financial statements.
5. As Assistant Regulatory Compliance Officer, I monitor ERC issuances and assist the RCO in assuring the timely compliance of the cooperative to pertinent ERC issuances.
6. Perform other duties and responsibilities that may be assigned from time to time.
4.
Q:
you familiar with said electric cooperatives instant application for approval of over/ under recoveries based on the formulas on the various automatic cost adjustments and true-up mechanisms and corresponding confirmation process pursuant to ERC Resolution No. 16, Series of 2009 Resolution No. 21, Series of 2010? as amended by
A: Yes, I am familiar with the instant application as I was part of the Technical Group that attended to the gathering and preparation of data and other documents necessary for the filing of the application.
5.
Q: What particular automatic cost adjustments and true-up mechanisms did INEC implement from the time of the unbundling of your rates in November 2004 up to December 2010?
A:
These were the Automatic Generation Rate (GR) and System Loss Adjustment Mechanism, Transmission Rate (TR) Adjustment Mechanism,
Lifeline Rate Recovery Mechanism, True-up Mechanism of the Over/Under Recovery in the Implementation of Inter-Class Cross Subsidy Removal of DUs, Treatment of Prompt Payment Discount ( PPD), and Calculation of the Over/Under Recovery in the Implementation of Transmission Rates.
6. Q:
And what was the results of your computations based on the formulas provided under ERC Resolution No. 16, Series of 2009 as amended by Resolution No. 21, Series of 2010?
A:
Actual Revenue 4,408,355,316.34 845,104,597.75 75,097,534.73 946,617,312.56 4,583,648.29 14,673,789.28 412,006,990.73 6,706,439,189.68
7. Q: What are your supporting data or documents for the above computations?
A: We submitted to the Honorable Commission together with our Application the following documents in support thereof:
Exhibit No.
Nature of Document
Computation of Over- Recovery for Generation Rate for the period November 2004 to December 2010
J-1
Computation of Under-Recovery for System Loss Rate for the period November 2004 to December 2010
J-2
Computation of Over-Recovery for Transmission Rate for the period November 2004 to December 2010
J-3
Computation of Under-Recovery for Lifeline Rate for the period November 2004 to December 2010
J-4
Computation of Under-Recovery for Removal of Inter-Class Cross Subsidy for the period November 2004 to April 2008
J-5
Computation of Over-Recovery in the PPD Reinstatement for the period November 2004 to March 2008
J-6
Computation of Under-Recovery for Transmission Rate Prior to TRAM Guidelines for the period November 2004 to February 2007
Various supporting documents consisting of Power Supplier Data Sheet, Statistical Data Sheet, Implemented Rates Data Sheet, Power Bills of Power Suppliers, Official Receipts Issued by Power Suppliers, TRANSCO/NGCP Invoices, Official Receipts Issued by TRANSCO/NGCP, DU-MO1 and DU-MO2, MFSR, Consumer Bills of Lifeliners (per level) and Non-Lifeliners per customer class
A:
Exhibit No.
Nature of Document
Board Resolution No. 56-05-2011 authorizing the filing of the instant application
B to B-2
May 16-22, 2011 Issue of the The Ilocos Times where the Application was published, with Affidavit of Publication
C to C-1
Certifications of receipt of copies of the Application by the Sangguniang Bayan of Dingras and the Sangguniang Panlalawigan of Ilocos Norte
SUBSCRIBED AND SWORN TO before me, a Notary Public for and in ________________________ this _______ day of August 2011, affiant exhibiting to me his SSS I.D. bearing No. 01-0466328-8