EDC PR 2016 (FS section)

Financial Statement
EBWPC will operate and maintain the wind farm under a ten-year operations and maintenance
agreement with Vestas. The Vestas O&M contract is a service and energy-based availability
agreement based on Vestas’ Active Output Management 5000 product. The agreement is a
full-scope maintenance contract covering both scheduled and unscheduled maintenance with an
energy-based availability on the wind turbines. The agreement covers the wind turbines, wind
farm electrical balance-of-plant systems, the wind turbine yaw back-up generators and the Burgos
Substation as opposed to a traditional O&M contract that provides a guarantee that the turbines in
a wind power plant are operational for a defined period of time on an annual basis (referred to as
time-based availability), the AOM 5000 model provides an energy-based guarantee, which
encourages the contractor to ensure that the turbines are fully-operational when the wind is
blowing.
40. Renewable Energy Payment Agreement
Under Section 2.2 of the ERC Resolution No. 24, Series of 2013, A Resolution Adopting the
Guidelines on the Collection of the FIT Allowance (FIT-All) and the Disbursement of the FIT-All
Fund (the FIT-All Guidelines), all eligible renewable energy (RE) plant shall enter into a
Renewable Energy Payment Agreement (REPA) with the TransCo for the payment of the FIT.
Pursuant to the FIT-All Guidelines, EBWPC entered into a REPA with TransCo for its Burgos
Wind Power Plants. The REPA became effective after all the documents enumerated in
Section 3.1 of the REPA have been submitted to and certified complete by TransCo. Included in
those required documents is the FIT COC issued by the ERC on April 13, 2015.
Similarly, on April 24, 2015, the Parent Company entered into a REPA for its 4.16-MW Solar
Power Plants with TransCo.
In accordance with the REPA, all actual RE generation from the commercial operations date
(COD) until the effective date of the REPA (effective date) were billed to and collected from the
Philippine Electricity Market Corporation (PEMC) at market price.
After the effective date, billings for all actual RE generation have been submitted directly to and
collected from the TransCo at the applicable FIT rate as approved by the ERC. In addition, the
actual FIT differential from the COD until the effective date was also billed to TransCo over the
number of months which lapsed during that period.
Total revenue from TransCo recognized in 2016 and 2015 under the REPAs amounted to
₱2,817.4 million and ₱2,124.0 million, respectively.
Total revenue from PEMC recognized in 2016 and 2015 from Burgos Wind and Solar Power
Plants amounted to ₱4.7 million and ₱279.6 million, respectively.
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