Section 9Sec./Art. 9

Procedure for Electrification of DU Identified Unserved Area Through Microgrid System. The DU may identify unserved areas for electrification by DU operated microgrid systems in its LTER. The list of DU identified unserved areas shall be annually published by the DOE on its website.

The DOE, or the NPC if authorized by the DOE, may receive from MGSPs all-in price offers to provide integrated power generation and distribution services in a particular Du identified unserved area within thirty (30) calendar days from the publication of the list of DU identified unserved areas: Provided, That the DU shall have the right to tender a lower all-in price offer within seven (7) calendar days after the DOE or the NPC publishes all price offers it has received on its website: Provided, further, That in the event the DU tenders a lower all-price offer, it shall electrify that DU identified unserved area through a DU operated microgrid system within eighteen (18) months from the award by the DOE or the NPC: Provided, finally, That if the Du does not tender a lower all-price offer, the DOE or the NPS shall award the MGSP with the lowest all-in price offer to electrify the DU identified unserved area and the NPC shall enter into an MSC with such MGSP.

In the event there are no offers from any MGSP for a particular DU identified unserved area, the DU shall electrify the area through a DU operated microgrid system within eighteen (18) months from the lapse of the thirty (30) calendar day period for MGSPs to tender an all-in price offer. This entire procedure shall:

(a) Priority low-cost, indigenous, renewable, and environment-friendly sources of energy;

(b) Be simple, uniform, streamlined, and transparent; and

(c) Be no longer than ninety (90) calendar days from the publication by the DOE or the NPC of the list of DU identified unserved areas.

The award by the DOE or the NPC to the DU or the MGSP, the execution of the MSC if applicable, and the filing of a complete applications with the ERC shall comprise the provisional authority of the DU or MGSP to start collection of the rate specified in the award, the MSC, and the application upon the start of the DU or MGSPs operation: Provided, That the ERC shall schedule and conduct a hearing thereon within thirty (30) calendar days from receipt of the complete application, upon publication and notice to all affected parties: Provided, further, That the final decision shall be issued within one hundred thirty-five (135) calendar days from receipt of the complete application.