October 20, 2008
Subject: Recovery on the Final Unbundled Rate Adjustment
On April 17, 2008, Bohol Light company, Inc. (BLCI) filed a “Motion for Clarification (Re: Decision dated March 27, 2008)” praying for authority to recover from its consumers the difference between the finally approved unbundled rates and the provisionally approved unbundled rates over a period of seven (7) months at PhP0.0941/kWh as per ERC ORDER, “IN THE MATTER OF THE APPLICATION FOR APPROVAL FOR RATE UNBUNDLING IN ACCORDANCE WITH THE PROVISIONS OF R.A. 9136, WITH PRAYER FOR PROVISIONAL AUTHORITY with ERC CASE NO. 2007 – 122RC.”
In the Commission’s Decision dated March 27, 2008, BLCI was granted a Total Revenue Requirement of Three Hundred Sixty – Three Million Two Hundred Fifty – Six Thousand Eight Hundred Ninety – Eight Pesos (PhP363,256,898.00) equivalent to an average rate of PhP0.3405/kWh. The Total Revenue Requirement of PhP363, 256, 898.00 includes the purchase power cost in the amount of Php307, 511,000.00. Said purchased power cost includes both the generation and transmission charges.
On April 23, 2008, BLCI filed an “Ex-Parte Submission of Computation for the retroactive Implementation of Final Rates” praying that it be allowed to recover from its customers the difference between the final and provisionally approved unbundled rates over a period of seven (7) months equivalent to PhP0.0941/kWh.In support thereof, BLCI submitted its calculation of the total amount to be collected per customer class and its impact if implemented over a period of seven (7) months.
The Commission calculated the amount to be recovered by BLCI pertaining to the difference between the final and provisionally approved unbundled rates based on the number of customers and the kilowatthour sales for the period October 2007 to April 2008. Said calculation resulted to a recoverable amount of PhP3,933,727.00.
However, in order to cushion the impact of said recoverable amount, the Commission deems that a twelve (12) month recovery period is more reasonable under the circumstances.
Wherefore, the foregoing premises considered, the Commission hereby authorizes Bohol Light Company, Inc. (BLCI) to recover the total amount of PhP3,933,727.00 equivalent to an average rate of PhP0.0547 per kWh, for a period of twelve (12) months or until such time that the full amount shall have been recovered effective upon receipt of the order. BLCI is then directed to incorporate the recovery charge under the existing line item “Recovery on the Final Rate Adjustment” to be reflected starting in the October billing statement.
