WHEREAS, Department Order No. 2002-07-010 created the Technical Working Group (TWG) of the Wholesale Electricity Spot Market (WESM) to ensure a smooth transition from promulgation of the WESM Rules to actual commercial operation of the spot market; WHEREAS, The TWG, through WESM TWG Resolution No. 2003-02 dated 30 May, 2003, formed Technical Subcommittees, namely:

(1) Market Operations; (2) System Operations; (3) Metering; (4) Legal and Regulatory Services; and (5) Settlements, composed of representatives nominated by the TWG from the Government and electric power industry' participants;

WHEREAS, on 18 November 2003, the Philippine Electricity Market Corporation was' incorporated and thereafter, its Board of Directors (PEM Board) was constituted with equitable representation from electric power industry participants, to serve as the governing body of the WESM;

WHEREAS, there is a need for TWG and its Subcommittees to assist the PEM Board in harmonizing the provisions of the WESM Rules, with the WESM Price Determination Methodology (PDM) submitted to the Energy Regulatory Commission (ERG) and with other, rules and regulations of the DOE and ERC and in the formulation of additional documents' required to be undertaken pursuant to the WESM Rules prior to the commencement of the spot market. NOW THEREFORE, in view of the foregoing, the WESM TWG and its Subcommittees are hereby reconvened in accordance with the following: