WHEREAS,Section 30 and 37(f) of the Electric Power Industry Reform Act of 2001 (EPIRA) provides that the Department of Energy (DOE) is mandated to, among others:

(a) Supervise the restructuring of the electric power industry;

(b) Ensure the reliability, quality and security of supply of electric power;

(c) Develop policies and procedures and, as appropriate, promote a system of energy development incentives to enable and encourage electric power industry participants to provide adequate capacity to meet demand including, among others, reserve requirements;

(d) Jointly with the electric power industry participants, shall establish the Wholesale Electricity Spot Market (WESM) and formulate the detailed rules governing the operations thereof; and

(e) Exercise such powers as may be necessary to attain the objectives of the EPIRA;

WHEREAS,on 28 June 2002, the DOE, with the endorsement of the electric power industry participants, promulgated the WESM Rules through Department Circular No. DC2002-06-003;