For power demand and supply and management efficiency, Taipower has been implementing management measures in every aspect. The major ones were:

◆ Quality Management

    According to the quality management system set by the International Organization for Standardization (ISO), in 2008, 2 units passed ISO 9001, 8 units ISO 14001, 3 units OHSAS 18001. Up to the end of 2008, in total 87 units passed ISO 9001, 56 units ISO 14001, and 32 units ISO OHSAS.

◆ Risk Management

    In compliance with the MOEA's instruction, Taipower drafted the“Risk Management Implementation Plan.”A“Risk Management Committee”and a“Risk Management Promotion Task Force”were established in 2008 to engage in an overall effort for risk management.

◆ Power Purchase Price Management

    Since the government opened the power generation to IPPs in 1995, Taipower has set up formulas for purchasing power from the IPPs. Power purchase payment includes capacity rate and energy rate. The capacity rate is a payment for the energy (KWh) provided by an IPP during guaranteed generation period.

The adjustment mechanism for Purchasing Power from IPP's:

(1) O&M Cost : The fixed and variable O&M cost rate will be adjusted by the change of total wholesale price index compared to the base year.

(2) Fuel Cost: It is calculated based on the change rate of the average cost of heating value of the same fuel-fired generation units of Taipower compared to the base year.

◆ Load Management for Power Demand

    To balance the system load, sufficiently utilize off-peak power, and shift or reduce peak hour consumption, Taipower has instituted the following load management measures with satisfactory results: implementing TOU (time of use) rates and seasonal rates, reducing peak hour power use, promoting an“Ice-Storage Central Air-conditioning System.”In 2008, the peak load was decreased by 4,608 MW

    In order to further promote this accomplishment, a“Demand Response Program”was started in 2008. The customers' contracted reduction load is viewed as the output of a“virtual power plant”and could be dispatched for system contingencies. This year, there were 7 customers participating in this program and applying for 25 MW contracted reduction load.

◆ Material Management

    The materials in large consumption which are costly and demanded by more than four departments, are classified as“centralized-management materials.”The head office is in charge of the task for procurement and distribution. In 2008, the turnover rate of“centralized-management materials”was 37.31% higher than“non centralized-management materials.”This management can avoid idle assets and reduce interest.