c;\lVTORY Co

'lcs <1.f<
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Republic ofthe Philippines Approved for f ~
ENERGY REGULATORY COMMISSI 'N posting
San Miguel Avenue, Pasig City www.erc.gov.ph
-I
IN THE MATTER OF THE
APPLICATION FOR
AUTHORITY TO DEVELOP,
OWN AND OPERATE A
DEDICATED POINT-TO-
POINT LIMITED
TRANSMISSION LINE TO
CONNECT THE 18MW
MARIVELES SOLAR POWER
PLANT TO THE NATIONAL
GRID CORPORATION OF
THE PHILIPPINES GN
POWER MARIVELES-AFAB
69KV LINE, WITH PRAYER
FOR PROVISIONAL
AUTHORITY,

ERC CASE NO. 2016-007 MC

NEXT GENERATION POWER

TECHNOLOGY CORP.
(NGPTC),
Applicant.
x- - - - - - - - - - - - - - - - - - - - - - -x

DECISION

Before the Commission for resolution is the Application dated

29 February 2016 (Application) filed by the Next Generation Power
Technology Corp. (NGPTC) for authority to develop, own and operate
a dedicated point-to-point limited transmission line to connect the 18
MW Mariveles Solar Power Plant to the National Grid Corporation of
the Philippines GN Power Mariveles-AFAB 69 kV Line, with prayer
for provisional authority.

(
In its Application, NGPTC alleged the following:

FACTS

1. NGPTC is a corporation duly organized and existing under and

by virtue of the laws of the Republic of the PhilippInes. with
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE20F17

business address at 20 N. Domingo St., Barangay Valencia,

Quezon City. Copies of NGPTC's Certificate of
Incorporation, Articles of Incorporation, By-Laws, and 2015
General Information Sheet are attached to the application as
Annexes "A", "B" " "C" and "D" ,respectively',

2. NGPTC may be served with the Orders and other processes

through NGPTC's counsel;

THE NATURE OF THE APPLICATION

3. The application is filed pursuant to Section 9(f) of Republic

Act No. 9136 or the "Electric Power Industry Reform Act of
2001" and Section 5, Rule 5 of its Implementing Rules and
Regulations (IRR);

STATEMENT OF FACTS

4. NGPTC is engaged in the development of clean or renewable

energy sources for power generation facilities and was
registered by the Department of Energy (DOE) as Renewable
Energy Developer of the 18 MW Mariveles Solar Power Plant,
covered by Solar Service Energy Contract No. 2014-04-076
(Service Contract). Copy of the Service Contract is attached to
the application as Annex "E";

5. The 18 MW Mariveles Solar Power Plant (MSPP) is a large

Photovoltaic Generation System constructed within a 37.56
hectare land located in Phase IV, Freeport Area of Bataan,
Barangay Alas-asin, Mariveles, Bataan. NGPTC has already
started the preparatoryactivities for the commissioning of the
MSPP in February 2016 as necessary step for its inclusion
under the Feed-iu Tariff (FIT) System for the secoud round of
Solar FIT at the rate ofPhP 8.69/kWh;

6. NGPTC proposes to transmit its generated power to the

National Grid Corporation of the Philippines (NGCP) Luzou
Grid via the GN Power Mariveles-AFAB 69 kV line, through
the construction and installation of the following dedicated
point-to-point limited transmission facilities (collectively,
Dedicated Facility):

i. 69 kV Mariveles Solar Power Plant cut-in substation at

Structure 36 of NGCP GN Power Mariveles-AFAB 69
kVline;

ii. 69 kV transmission line with an approximate length of

0.8 km. using 336-4 MCM ACSR with a rated capacity
of 20 MVA; and

iii. 69 kV take-off substation inside the MSPP site;

7. Prior to the filing of the application, alternative

interconnection schemes were considered. A technical
evaluation was conducted, and it was assessed that the
ERC CASE NO. 2016-007 MC
DECISIONj20 JUNE 2017
PAGE 3 OF 17

distance of the Point of Interconnection (POI) to the GN

Power substation is more or less two (2) kilometers and from
the POI to NGPTC's suhstation is about 1 kilometer;

8. Taking into consideration the distance mentioned above and

the existing line protection, difficulty in its relay coordination
is inevitable. Due to this reason an alternate connection
scheme was considered, that instead of the direct connection
to the existing 69 kV line, a cut-in type of connection will be
made as illustrated in Single Line Diagram 2 (SLD2). Copy of
the SLD 2 is attached to the application as Annex "I",

With such scheme, the relay coordination will be easier to do.

The line protection between the GN Power and NGPTC will
isolate the line in case of fault, and then the line protection of
the (Peninsula Electric Cooperative (Pene1co) line will be at
the NGPTC substation. The breaker arrangement is a "Ring
Bus" type, which v.rillallow the shutdown for maintenance of
each circuit breaker without interrupting the system;

9. Below is a detailed comparison of the alternatives available to

the NGPTC:

Item Ontion 1 Ontion2

None, it will be
Acquisition of 500
Lot within the NGPTC's
sqm.
nlant
3 CB's to complete
2 CB's one @NGPTC
Number of CB's the ring bus
SIS and one @ POI
Integrated in the
Power supply To be provided substation

Integrated in the
Control room To be provided substation

Additional circuit
for the outgoing
Single circuit, 336-4 line. Double circuit
Transmission line
ACSR
single pole.

AtNGPTC
At the connection substation, which is
Metering a more secured
point.
nlace.
2 sets, 1 for line to
Line Protective 2 sets, 1 @POI&l GN Power, 1 for line
relay @NGPTCS/S toPENELCO

T-connection at the
No difficulty in
POI will be difficult to
Protective relay coordinating the line
he coordinated with
coordination protective relays
the lone protection
using distance relays
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 4 OF 17

A fault on the line

from GN Power to
NGPTC SIS can be
isolated, the supply
to Pene1co from
Any fault from GN NGPTCis
Power Substation to uninterrupted. A
Interruption fault from NGPTC to
Penelco will isolate
the MSPP Penelco ,Yillisolate
Penelco, the supply
of NGPTC to the
grid through GN
Power SIS is
uninterrunted.

10. Based on the technical evaluation stated above, Option 2 ""ill

be a better alternative as it does not require the acquisition of
a lot for the switching station and it will be more flexible,
efficient and reliable in the operation;

11. The construction and installation of the Dedicated Facility has

an estimated cost of Ninety-Four Million Two Hundred
Ninety-Six Thousand and Forty Pesos (PhP94,296,040.00).
The financial requirement thereof will be supported by equity
and external financing. Copies of the Bill of Quantities are
attached to the application as Annex "J", inclusive of sub-
markings;

12. As required under existing regulations, NGPTC commissioned

a Third Party System Impact Study to determine technical
feasibility of connecting the MSPP to the NGCP grid. In a
letter dated '7 April 2015, NGCP approved the integration of
the MSPP to the GN Power Mariveles-AFAB 69 kV
Transmission Line. Copies of the Third Party System Impact
Study, NGCP Review Report, and NGCP letter are attached to
the application as Annexes "K", "L" and "M", respectively;

'3. After the issuance by the Commission to NGPTC of the

authority to develop and own the Dedicated Facility subject of
this application, NGPTC will engage the services of NGCP to
undertake the operation, service and maintenance of the
Dedicated Facility involving, among others, periodic
inspection of the point-to-point interconnection facilities,
regular assessment of pole and wire conditions;

'4. NGPTC will apply with the Commission for the issuance of the
FIT Certificate of Compliance (FIT -CDC) after the DOE shall
have issued a Certificate of Endorsement (COE) to MSPP and
the Dedicated Facility is completed;

'5. In further support of the application, NGPTC hereby submits

copies of the following documents:
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGESOF17

Annex Documents
"N" Gantt Chart;
"0" 2015 Balance Sheet and Income Statement of
NGPTC;
"P" Secretary Certificate attesting that NGPTC
authorized the construction of the Dedicated
Facilitv;
"Q" Department of Environment and Natnral
Resources (DENR) Environmental Compliance
Certificate No. R03-140B-0391 for MSPP and
Dedicated Facilitv;
"R" Sworn Statement of NGPTC authorized
representative;
"8" Facilitv Stndv;
"T" List of Key Mana"ement Officials; and
"U" Financial Ratios;

ALLEGATIONS IN SUPPORT OF
THE PRAYER FOR PROVISIONAL AUTHORITY

16. NGPTC is applying for inclnsion under the FIT system for the
second round of Solar FIT (revised 500 MW solar installation
target) at the rate of PhpB.69/kWh, which is valid upon full
subscription thereof or until 15 March 2016, whichever comes
earlier;

17. The need for a provisional authority to develop and own a

Dedicated Facility to connect NGPTC to the NGCP grid is vital
and urgent because of the first -come, first -served policy
implemented on the revised 500 MW solar installation target.
Only those projects that are fully connected to the grid or a
distribution utility, and thus capable of exporting power
thereto, are eligible under the said first-come, first-served
policy;

lB. As provided under Section 6 of the DOE Circular No. DC 2013-

05-0009 (Guidelines for the Selection Process of Renewable
Energy Projects under Feed-In Tariff System and the Award of
Certificate for Feed-In Tariff Eligibility), the DOE will
nominate the eligihility of the project under the FIT system to
the Energy Regulatory Commission for the processing of the
Certificate of Compliance under the FIT System only upon its
confirmation of the Electromechanical Completion of the
project and successful commissioning, and provided further
that the interconnection facility is fully in place. Such
confirmation of Electromechanical Completion and successful
commissioning requires prior validation by the DOE through
inspection of the solar plant and the interconnection facility;

19. The MSPP is scheduled to be commissioned in time for the 15

March 2016 deadline to ensure its inclusion in the revised 500
MW solar installation target;

20. The inclusion of the MSPP for the second round of the Solar
FIT is crucial because the plant is designed and planned
for inclusion under the FIT System, while the third round of
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE60F17

FIT for solar power projects is still uncertain as of this

juncture;

21. MSPP's qualification for the second round of the Soiar FIT is
crucial to its financial viability. The energy produced by the
MSPP cannot be immediately contracted to a distribution
utility because ERe Resolution No. 13, Series of 2015
mandates all distribution utilities to conduct a competitive
selection process in the procurement of their supply to the
captive market, which would leave NGPTC as a price taker on
the WESM uniess it immediateiy qualifies for the FIT;

22. It is thus very important for NGPTC to secure a Provisional

Authority to develop and own and operate a Dedicated Facility
to connect its solar plant to the Luzon Grid before the said
target date;

23. In further support of the prayer for issuance of provisional

authority, an Affidavit of Merit is attached to the application as
Annex "V";

24. NGPTC prays to the Commission that:

1. Upon filing of the application, and pending hearing

thereon, an ORDER be issued granting PROVISIONAL
AUTHORITI to NGPTC to develop, own and operate a
Dedicated Facility that will connect the Mariveles Solar
Power Plant (MSPP) to the NGCP Grid through the GN
Power Mariveles-AFAB 69 kV Line; and

2. After hearing thereon on the merits, a DECISION be

rendered APPROVING the Application.

Having found the Application sufficient in form and in

substance, with the required fees having been paid, the Commission
issued an Order and Notice of Public Hearing, both dated 30 May
2016, setting the case for initial hearing on 30 June 2016.

On 24 June 2016, NGPTC filed its Pre-trial Brief dated 22 June

2016 with the Judicial Affidavit of Engr. Rodel M. Sevilla.

During the 30 June 2016 initial hearing, only the representative

of NGPTC appeared. There was no intervenor or oppositor who
appeared nor was there any intervention or opposition that was filed.

At the said hearing, NGPTC presented proofs of its compliance

with the Commission's posting and publication of notice
requirements, which were duly marked as exhibits as "z" to "EE",
Finding the submission compliant with the jurisdictional
requirements enumerated in the Order dated 30 May 2016, the
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE70F17

Commission declared that it acquired jurisdiction over NGPTC's

Application. NGPTC was also directed that Certifications from the
following Offices must also be submitted aside from the affidavits of
service: 1) Office of the City Mayor of Quezon City; 2) Office of the
Sangguniang Panlungsod of Quezon City; 3) Office of the
Sangguniang Bayan of Mariveles, Bataan; and 4) Office of the
Administrator of the Freeport Area of Bataan. Thus, NGPTC was
given a period of fifteen (15) days from the date of hearing to submit
the lacking certifications.

Thereafter, the Expository Presentation commenced. NGPTC

presented Rodel M. Sevilla (Mr. Sevilla), who discussed the
presentation under oath. Upon the conclusion of the Expository
Presentation, the hearing proceeded with the Pre-trial Conference
and presentation of evidence.

In the course of the Pre-trial Conference, NGPTC moved that an

Order of General Default be issued in light of the absence of
intervenor or oppositor. Likewise, NGPTC moved that the
Commission adopt the stipulation of facts and issues in its Pre-trial
Brief. Finding both motions meritorious, the Commission granted
the same.

During the presentation of evidence, NGPTC again presented

Mr. Sevilla as its sole witness, who testified in support of the instant
Application. During his testimony, Mr. Sevilla identified various
documents, which were duly marked as exhibits. Subsequently, the
Commission asked questions, which were addressed by NGPTC.

Upon the termination of the presentation of evidence, the

Commission directed NGPTC to submit its Formal Offer of Evidence,
as well as additional documents to aid the Commission in the
evaluation of the instant case.

On 13 July 2016, NGPTC filed its Compliance dated 12 July

2016 in compliance with the Commission's jurisdictional
requirements.

On 27 July 2016, NGPTC filed another Compliance of even date

in compliance with the additional supporting documents required by
the Commission as well as its Formal Offer of Exhibits of even date.

On 29 September 2016, NGPTC filed its Motion for Early

Resolution dated 28 September 2016.
ERC CASE NO. 2016-007 MC
DECISIONj20 JUNE 2017
PAGE80F17

On 8 February 2017, NGPTC filed its Second Motion for Early

Resolution dated 7 February 2017.

Subsequently, on 13 February 2017, ilie Commission issued an

Order admitting NGPTC's marked exhibits contained in its Formal
Offer of Exhibits and submitting this case for resolution.

On 6 March 2017, ilie Commission deliberated and decided the

instant Application. However, due to supervening events', the
Decision could no longer be promulgated without undergoing
reconfirmation by the Commission En Bane. Thus, the Commission
resolved to reconfirm the Decision on 20 June 2017.

ISSUE

The issue to be resolved in the instant case is whether the

Commission should approve the instant Application and authorize
NGPTC to develop, own and operate Dedicated Facilities to connect
to the National Grid Corporation of ilie Philippines (NGCP) Luzon
Grid via GN Power Mariveles-AFAB 69 kV Line.

COMMISSION'S RULING

The Commission approves ilie instant Application ofNGPTC.

I. Project Description

The Mariveles Solar Power Plant (MSPP) of NGPTC will be

connected to the Luzon Grid by constructing the subject dedicated
point-to-point limited facilities and connect along GN Power
Mariveles- AFAB 69 kV Line transmission line via tap connection.

The said dedicated point-to-point limited facilities will require

the construction of a substation and an 800 meter 69 kV line utilizing
336-4 MCM ACSR, which shall connect the plant to the 69 kV line of
NGCP.

1The Chairman was placed on preventive suspension as per Order of the Office of the President
(OP-DC Case No. 17-D-094) dated 2 May 2017 and received on 04 May 2017.
ERCCASENO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE90F17

II. Project Rationale

As stated in NGPTC's Application and as manifested during the

hearings, the dedicated point-to-point limited transmission facilities
will be utilized by NGPTC's Solar Power Plant to connect and deliver
its generated power to the Luzon Grid through the GN Power
Mariveles-AFAB 69 kV Line.

III. Project Cost

The estimated total project cost of the dedicated point-to-point

limited transmission facility amounted to Ninety-Four Million Two
Hundred Ninety-Six Thousand Forty Pesos (PhP 94,296,040.00)
covering all the facilities to be constructed by NGPTC, including the
cost of assets that are not considered as dedicated point-to-point
limited facilities.

It is worthy to note that the said estimated project cost is just

for the purpose of computing the permit fee (based on the total
project cost evaluated disregarding the functions and classification of
each facility) and not for rate making purposes considering that this is
not yet the actual cost or the Optimized Depreciated Replacement
Cost (ODRC).

It should also be emphasized that the aforementioned amounts

are not necessarily the fair market value that should be used when the
subject assets are actually transferred to National Transmission
Company (TRANSCO)/NGCP in the event that such assets are
required for competitive purposes.

Although NGPTC filed for Feed-in- Tariff (FIT) eligibility with

the Department of Energy (DOE), the Application is yet to be
approved. Thus, in the event that the same becomes FIT eligible, the
cost of the dedicated point-to-point limited facilities that is included
in the approved FIT Rate shall be considered once the asset is
transferred to NGCP/TRANSCO:

a) If the fair market value is higher than the facilities' cost

incorporated in the determination of the FIT,
NGCP/TRANSCO shall pay the difference between the
said cost and the fair market value.
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 10 OF 17

b) If the fair market value is lower than the facilities' cost

incorporated in the determination of the FIT, the asset
shall be treated as Contribution in Aid of Construction
(CIAC). NGCP shall maintain a separate account ofthese
amounts and the assets should not appear in rate base or
in its asset appraisal.

IV. Result of the System Impact Study (SIS) conducted by

NGCP

NGPTC commissioned a third party System Impact Study (SIS)

to determine the technical feasibility of connecting the MSPP to the
Luzon Grid. The third party consultant concluded that the entry of
the 18 MW Solar Power Plant to the Luzon Grid is technically feasible.

On February 2015, NGCP released its Final Review Report on

the third party SIS. Based on the said report, the solar power plant
can be integrated to the Luzon Grid via tap connection along the GN
Power Mariveles-AFAB 69 kV Line Transmission Line.

In addition, a Facility Study was likewise conducted on the solar

power plant. The same was approved by NGCP on 17April 2015.

V. Options/Alternatives Considered by NGPTC

Before NGPTC decided to connect to the GN Power Mariveles-

AFAB 69 kV Line transmission line at Structure 36, NGPTC
considered other connection schemes, as follows:

1. Tap connection to Structure 34, Limay to AFAB 69 kV

line; and

2. Cut-in connection to Structure 34, Limay to AFAB 69 kV

line

Upon evaluation of the foregoing alternatives, the following

issues were identified and must be considered prior to the
implementation thereof:

1. Connection to Structure 34 and construction of the

switchyard near the said structure would require
negotiation with numerous land owners for the
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGEnOF17

establishment of the easement of right of way for the

transmission line; and

2. The distance from the solar power plant to the Structure

34 is approximately 2 km, which is longer compared to
the distance between the plant and Structure 36 of the GN
Power-AFAB line.

VI. Technical Configuration

In order for NGPTC to dispatch its generated power to the Grid,

it should connect its solar power plant to the Luzon Grid. By default,
NGCP is mandated by the law to connect generation companies,
distribution utilities and suppliers requiring transmission services.
However, Section 9(0 of Republic Act No. 9136 (RA 9136), otherwise
known as the Electric Power Industry Reform Act of 2001 (EPIRA),
gives the generation company the option to develop, own and operate
its dedicated point-to-point limited facilities, to wit:

xxx. A generation company may develop and own or

operate dedicated point-ta-point limited transmission
facilities that are consistent vvith the TDP: Provided,
that such facilities are required only for the purpose of
connecting to the transmission system, and are used
solely by the generating facility, subject to prior
authorization by the ERe. xxx

NGPTC's proposed connection scheme must be consistent

with the provisions of the Philippine Grid Code (PGC) and must
comply with the requirements relating to the connection point
provided in the same code, to wit:

4.6.1.1 The Distribution Utility's or other Grid User's

Equipment shall be connected to the Grid at Voltage
level(s) agreed to by the Transmission Network
Provider and the Distribution Utility (or other Grid
User) based on Grid Impact Studies.

4.6.1.2 All substations shall he controlled by Circuit Breakers

that are capable of interrupting the maximum short
circuit current at the point of connection.

Disconnect switches shall also be provided and

arranged to isolate the Circuit Breaker for
maintenance purposes.

4.6.1.4 If the line between the Connection Point and the

substation of the Distribution Utility (or other Grid
User) is greater than 500 meters (m), a Circuit
ERC CASE NO. 2016-007 MC
DECISIONj20 JUNE 2017
PAGE 12 OF 17

Breaker of appropriate rating shall be provided at the

Connection Point. However, a line equal to or less
than 500 m between Connection Point and substation
of the Distribution Utility (or other Grid User) shall at
least be provided with Disconnect Switch.

Shown below is the single line diagram illustrating NGPTC's

compliance with the provisions of the PGC and requirements of
NGCP in its Facility Study and SIS:

POI (Structure 36)

To GN Pow ••, .l----.....;~"""'-- ast To AFAS

I-l-~I
i ~i- Diseon",.et Switch
Circuil Br"a~er --+
1. __
.
.1

. _.-._._
...e---
.. -._._._.,
800 m 69 kV Lin ••

I .
i I
I I
I I
I I
i I
. I
I .
I I
.
L._._._._._._._._._' I
Mariveles Solar Power Plant

The substation at the solar power plant is equipped with a 20

MVA power transformer to step up the voltage from 13.8 kV to 69 kV.

The connection point is controlled by a circuit breaker which is

consistent with the above-mentioned standards. In addition, the
switchyard is equipped with disconnect switches, surge arresters,
instrument transformers, protective relays and its accessories which
are all compliant with the requirements of the PGC and NGCP.

The Point of Connection (POI) will be at the Structure 36 ofthe

GN Power-AFAB Transmission Line, where the 800 meter 69 kV line,
utilizing 336-4 MCM ACSR, is connected.

NGPTC complied with the standards in equipment grounding

and the requirements in communication and Supervisory Control and
Data Acquisition (SCADA) for monitoring and control.

NGPTC installed disconnect switches along the GN Power-

AFAB line, as recommended in its submitted Facility Study, which
was approved by NGCP for the purpose of isolating the line from GN
 ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 13 OF 17

Power to the point of interconnection in case of a permanent fault on

the said line, or the line from AFAB to the point of interconnection in
case of a permanent fault on the said line. This scheme is
advantageous to NGPTC to enable its solar power plant to still supply
power to the grid in case of fault events.

The disconnect switches and its associated accessories are

transmission in function as specified in Resolution No. 23, Series of
20162• Hence, these disconnection switches should not be part of the
dedicated point-to-point limited facilities and must to be turned over
to NGCP.

Moreover, the disconnect switches are beyond the mlmmum

connection requirement provided in the PGC. Therefore, the cost of
these assets shall be at NGPTC's expense, and shall be treated as
Contribution in Aid of Construction (ClAC). NGCP shall maintain a
separate account of these CIACand the assets should never appear in
its rate base or in its asset appraisal.

This is consistent with the Section 5.6.5 of the Distribution

Services and Open Access Rules (DSOAR), which provides:

If the End-user or another party requests facilities in

excess of that which is necessary to meet the End-
user's power requirements, then all costs attributable
to such excess shall be at the requesting party's sole
cost and expense which shall be treated as CIAC.

The ocular inspection conducted by the Commission confirms

that the metering point of NGPTC's Solar Power Plant is located near
the connection point, in compliance with Section 9.2.1 of the
Philippine Grid Code (PGC), to wit:

Section 9.2.1.1 The metering point between the Grid

and User System shall be at the Connection Point.

VII. Technical and Financial Capability

NGPTC manifested that it will engage the service of NGCP to

undertake the operation, service, and maintenance of the dedicated
facility involving, among others, periodic inspection of the point-to-
point interconnection facilities and regular assessment of poles and
wire conditions.

2 Entitled, "Resolution Adopting the Amended Rules on the Definition and Boundaries of
Connection Assets for Customers of Transmission Provider".
 ERCCASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 14 OF 17

NGPTC further claimed that it has the financial capability to

undertake the development and construction of the dedicated point-
to-point limited line. Its financial capability will be assessed in the
application of NGPTC for Certificate of Compliance (COC) ensuring
that it is compliant with the financial qualifications set forth in the
Financial Guidelines for Generation Companies.

A perusal of the evidence presented herein showed that the

approval of NGPTC's application for authority to develop, own and
operate a dedicated point-to-point limited transmission line to
connect the 18 MW Mariveles Solar Power Plant to the National Grid
Corporation of the Philippines (NGCP) GN Power Mariveles-AFAB 69
kV Line, with prayer for provisional authority is in accordance with
the provisions of Section 9 paragraph 3 of EPlRA, and other
issuances of the Commission and will redound to the benefit of the
power consumers in terms of continuous, quality, reliable and
efficient power supply.

VIII. Permit Fee

As specified under Commonwealth Act No. 146, as amended,

the permit fee for the authority to construct the subject project is for
the reimbursement of the expenses of the Commission in evaluating
the case based on its total project cost. The project subject of this
Application includes facilities that have transmission function and
not just dedicated point to point limited facilities. Since the
application was filed solely by NGPTC (including the facilities to be
transferred to NGCP as CIAC),the permit fee should be paid solely by
NGPTC based on the total cost of the project, computed as follows:

Permit Fee = Total Project Cost X 0.75

100

PhP94,296,040.00
= -------------------------- x PhPO.75 = PhP707,220.30
PhP100.00

WHEREFORE, the foregoing premises considered, the

Application filed by Next Generation Power Technology Corp.
(NGPTC) for authority to develop, own and operate a dedicated point-
to-point limited transmission line to connect the 18 MW Mariveles
Solar Power Plant to the National Grid Corporation ofthe Philippines
(NGCP) GN Power Mariveles-AFAB 69 kV Line, with prayer for
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE is OF 17
provisional authority, IS hereby APPROVED, subject to the
following conditions:

a) The National Grid Corporation of the Philippines (NGCP)

shall operate and maintain the subject dedicated point-to-
point transmission facilities, subject to applicable
charges;

b) NGPTC shall execute an undertaking or similar

document/s that after construction, it will turn over to
NGCP the disconnect switch and its related accessories
and equipment that have transmission function as
Contribution in Aid of Construction (CIAC). NGCP shall
maintain a separate account of these CIAC and the assets
should never appear in its rate base nor in its asset
appraisal;

c) The metering point shall be at the connection point in

accordance with the Philippine Grid Code (PGC);

d) The subject facilities shall be developed and constructed

in accordance with the System Impact Study (SIS)
requirements and Facility Study (FS) requirements so as
not to result in the degradation of NGCP's transmission
system;

e) The subject facilities shall be used solely by the generating

facility;

f) In the event that any portion thereof will be required for

competitive purposes or to connect any other user,
ownership of the subject asset shall be transferred to
TRANSCO/NGCP at a fair market price but subject to
optimization. In determining the fair market price, the
cost of the facility as incorporated in the determination of
the Feed-in- Tariff (FIT) should be accounted for; and

g) The disconnect switches and its related accessories and

equipment installed along GN Power Mariveles-AFAB 69
kV Line are considered Transmission Assets from the
start.
 ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 16 OF 17

Accordingly, NGPTC is hereby DIRECTED to remit to the

Commission, within fifteen (15) days from receipt hereof, a total
permit fee in the amount of Seven Hundred Seven Thousand
Two Hundred Twenty and 30/100 Pesos (PhP707,220.30).

SO ORDERED.

Pasig City, 20 June 2017.

JOSE VICENTE B. SALAZAR*

Chairman

(On Leave)
ALFREDO J. NON G~
0. _.,«~!PI VICT0R{3\,C. YAP-TARDC
Commissioner CommIssioner

JOSEFINA PATRIC GPALE-ASIRIT RONIMO D. STA. ANA

Com Commissioner

• The Chairman was plaCfJd 011preventive silspension as per Order a/the Office of the Presiden!
(OP-DC Case No. 17-D'094) dated., May 2017Ulld 1'cce;ved on 04 May 2017.
ERC CASE NO. 2016-007 MC
DECISION/20 JUNE 2017
PAGE 170F17

Copy FurnIshed:

1. Attys. Rio Q. Balaba and Jasmin M. Sison

Counsel for Applicant
20 N. Domingo St.
1112 Valencia, Quezon City

2. NEXT GENERATION POWER TECHNOLOGY CORP. (NGPTC)

20 N. Domingo St., Barangay Valencia, Quezon City

3. Office of the Solicitor General

134 Amorsolo Street, Legaspi Village
Makati City, Metro Manila

4. Commission on Audit
Commonwealth Avenue
Quezon City, Metro Manila

5. Senate Committee on Energy

GSIS Bldg., Roxas Blvd., Pasay City
Metro Manila

6. House Committee on Energy

Batasan Hills, Quirino City, Metro Manila

7. Office of the President-PCCI

Philippine Chamber of Commerce and Industry (pecI)
3RD Floor ECe Building
Sen. Gil Puyat Avenue, Makati City

8. Office of the City Mayor

Quezon City, Metro Manila

9. Office of the Local Government Legislative Body

Quezon City, Metro Manila

10. Office of the Municipal Mayor

Mariveles, Bataan

11. Office of the Local Government Legislative Body

Mariveles, Bataan

12. Office of the Punong Barangay

Alas-Asin, Marivelcs, Bataan

13. Office of the Administrator of the Freeport Area of Bataan

2/F AFAB Administration Building
The Freeport Area of Bataan
Mariveles, Bataan 2106

14. Officc of the Provincial Governor

Province of Bataan

15. NATIONAL GRID CORPORATION OF THE PHILIPPINES (NGCP)

NGCP Building, Quezon Avenue cor. BIR Road
Diliman, Quezon City, Metro Manila