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IN THE MATTER OF THE

APPLICATION FOR
AUTHORITY TO DEVELOP,
AND OWN OR OPERATE
DEDICATED POINT-TO-
POINT LIMITED FACILITIES
TO CONNECT THE 27.2 MW
SOLAR POWER PLANT TO
THE BACOLOD SAN
ENRIQUE 69 KV LINE, WITH
PRAYER FOR PROVISIONAL
AUTHORITY,

ERC CASE NO. 2015-055 MC

NEGROS ISLAND SOLAR

POWER, INC. (NISPI),
Applicant.
x------------------------x
DECISION

Before the Commission for resolution is Negros Island Solar

Power, Inc.'s (NISPI) 26 August 2015 Application (Application) filJd
on 1 September 2015 requesting for authority to develop and own ~r
operate dedicated point-to-point limited facilities to connect the 2712
MW solar power plant to the Bacolod - San Enrique 69 kV line, with
prayer for provisional authority,

FACTS

In its Application, NISPI alleged the following:

1. NISPI (formerly Luzon Islaud Solar Power Inc,) is a

corporation duly organized and existing by virtue of and under
the laws of the Republic of the Philippines, with principal
office address at Emerald Arcade, F.e. Ledesma 8t., San Carlos
City, Negros Occidental, Philippines;

A copy of NISPI's Certificate of Registratiou, Amended Articles

of Incorporation, 2015 Amended General Information Sheet,
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 2 of16

and 2014 Audited Financial Statements are attached to the

application as Annexes "C", "D", "E" and "F"i

2. NISPI may be served orders and other processes at Fourth

Floor, First Global Building, 122 Gamboa Street, Legaspi
Village, Makati City.

NATURE OF APPLICATION
3. The application seeks the consideration and approval of the
Commission of NISPI's proposed development, ownership, or
operation of interconnection facilitiesL] which shall connect
the 32 MW DC Solar Power Plant to the Visayas Grid through
the Bacolod-San Enrique 69kV line. The Solar Power Plant,
composed of Phase A and Phase B and located in La Carlota
City, Negros Occidental, has a design peak capacity of 27.2
MWAC;

3.1. Section 2.9.2 of the Distribution Services and Open

Access Rules (DSOAR) allow a generation company to
undertake this project but [it] require the prior authorization
of the Commission, thus:

"A generation company may develop and

own or operate dedicated point-ta-point limited
facilities provided, that such facilities are
required only for the purpose of connecting to
the distribution system, and are used solely by
the generating facility, subject to prior
authorization by the ERe." [Emphasis
supplied.]
3.2. The last paragraph of Section 9 of the Electric Power
Industry Reform Act of 2001 (RA No. 9136) provides the
same requirement, to wit:
Section 9. Functions and Responsibilities. - x x x.

xxx
A generation company may develop and
own or operate dedicated point-to-point limited
transmission facilities that are consistent with
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 ERC: x x x.

3.3. Hence, this application.

STATEMENT OF FACTS
4. The right to develop Phase A of the Solar Power Plant is
contained in Solar Energy Service Contract (SESC) No. 2014-
04-075, which was executed between the Department of
Energy (DOE) and San Carlos Solar Energy Inc. (SACASOL)
and which granted SACASOL the exclusive right to explore,
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 30f16

develop and utilize solar energy resources within an area

located in La Carlota City, Negros Occidental.

A copy of SESC No. 2014-04-075 is attached to the application

and made an integral part thereof as Annex "G";

5. SACASOL is also the holder of SESC No. 2015-04-220,

pursuant to which, it has the exclusive right to explore, develop
and utilize Solar Energy Resources within another area located
in La Carlota City, Negros Occidental. By virtne of this, it has
commenced the development of Phase B of the Solar Power
Plant.

A copy of the SESC No. 2015-04-220 is attached to the

application and made an integral part thereof as Annex "H";

6. Pnrsuant to these SESCs, SACASOL has started developing

Phases A and B of the Solar Power Plant, both located in La
Carlota City, Negros Occidental;

7. On 15 June 2015, SACASOL and NISPI executed a Deed of

Assignment! for the assignment of the Solar Energy Service
Contract No. 2015-04-220. The Deed of Assignment is pending
approval with the DOE. Upon its approval, SACASOL shall also
assign all its rights, title, obligations, liabilities, and interest in
the development of the 14MW DC Solar Power Plant in
Barangay Cubay, La Carlota City, Negros Occidental ("Phase
B") to NISPI;

8. Upon approval of the DOE, all permits, contracts and

documents relating to SESC 2015-04-220 and the plant
covered by it shall be assigned by SACASOL to NISPI as well.
NISPI is a 100% wholly owned suhsidiary of SACASOL;

9. At present, SACASOL is in the process of executing an

agreement with National Grid Corporation of the Philippines
(NGCP) for the connection of Phases A and B to the Bacolod-
San Enrique 69 kV Line;

10. To connect the Solar Power Plant to the Visayas Grid through
the Bacolod-San Enrique 69 kV Line of NGCP, SACASOL
intends to develop and construct a dedicated point-ta-point
facility (Dedicated Facility Projec!),' which NISPI shall
implement and continue upon DOE's approval of the
assignment.3 The Dedicated Facility Project shall be used
solely by the Solar Power Plant for the dispatch thereof;

11. The Dedicated Facility Project, which shall be used solely by

the Solar Power Plant for the dispatch thereof, is the most

Attached to the Application as Annex "I".

2 The Secretary's Certificate containing the relevant Board Resolutions is attached to the
Application as Annex "A". I
;> The Secretary's Certificate containing the relevant Board Resolutions is attached to the
Application as Annex "B".
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page40f16

viable option to connect the Solar Power Plant to the Visayas

Grid[.]

11.1 The Bacolod-San Enriqne 69 kV line is the closest

Subtransmission Line from the switchyard of the Solar
Power Plant. The connection will require the
construction of a 12.5 km line, the construction of
which will take only three months.4 The switching
station shall be constructed simultaneously and shall
be completed in four months;s

11.2 The construction of the Dedicated Facility Project,

which will cost approximately PhP78,372,998.35 and
USDl,014,OOO.oo, inclusive of the cost for the
construction of the switching station and substation,
will be funded privately; hence, it will not result in any
unregulated charges;6 and

11.3 The highlights of the Projected Financial & Economic

Cost Analysis for the Dedicated Facility Project is
attached in the application and made an integral part
thereof as Annex "P".

12. SACASOL has submitted a draft of the System Impact Study

(SIS)7 to the NGCP for the latter's approval. Based on the SIS,
upon thermal assessment, voltage assessment, fault level
assessment, stability assessment and frequency assessment of
the project, it was concluded that "the entry of the
27.2MWpAC Solar PV Power Plant to the Visayas Grid is
technically feasible.'" Upon approval of the SIS, the Metering
Service Agreement and Transmission Service Agreement shall
be executed with NGCP;

13. Upon the completion of the Dedicated Facility Project, NISPI,

upon approval of the assignment, shall be responsible for its
operation, service, and maintenance. Qualified personnel shall
be hired to be in charge of regular patrolling to check the
condition of the pole and wires;

14. As of date, SACASOL has secured or is in the process of

securing the necessary permits, licenses and authority from
regulatory agencies9;

4 The Conceptual Engineering Design and Drawings, the Gantt Chart, and pertinent portio s
of the EPC Contract with Xian Electric Engineering Co. Ltd, and with Xian Electqic
Engineering Co. Ltd. - Philippines Branch are attached to the Application as Annexes" J",
"r,"~. I
5 The Conceptual Engineering Design and Drawings and the Gantt Chart are attached to the
contract with Schema Konsult Inc. and are attached to the Application as Annex "M," arid
"N".
6 The Dedicated Facility Project Cost Estimate is attached to the Application as s Annex "0".
7 Attached to the Application as Annex "Q".
8 Annex Q, p. 19.
9 A copy of the sworn statement of its President, Juan Xavier P. Zabaleta, is attached to the
Application as Annex "R".
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 5 of 16

15. NISPI has likewise secured necessary registrations and

business permits. It shall also process all other necessary
permits, licenses and authority from regulatory agencies upon
approval of the assignmentlO;

ALLEGATIONS IN SUPPORT OF THE MOTION FOR

PROVISIONAL AUTHORITY

16. The demand for electricity in Visayas has an Average Annual

Growth Rate of 4.52 percent,u To avoid power outages
thereinL] which would greatly inconvenience consumers and
may adversely affect investment, it is important to ensure that
generation facilities are able to distribute sufficient power to
meet the demand as it arises;

17. It must be noted that it is the policy of the State to

"[a]ccelerate the exploration and development of renewable
energy resources such as, but not limited to, biomass, solar,
wind, hydro, geothermal and ocean energy sources, including
hybrid systems, to achieve energy self-reliance, through the
adoption of sustainable energy development strategies to
reduce the country's dependence on fossil fuels and thereby
minimize the country's exposure to price fluctuations in the
international markets, the effects of which spiral down to
almost all sectors of the economy"12;

18. Further, the Renewable Energy Act of 2008 (Republic Act

9513) mandates that the Solar Power Plant, being a geuerating
unit utilizing intermittent renewable energy resource, shall
enjoy the benefit of priority dispatch";

19. Connecting the Solar Power Plant's switchyard to the Bacolod

- San Enrique 69 kV Line is a prerequisite to the commercial
operations of the solar power plant. It is only in line with the
policy of the State to grant NISPI provisional authority to
develop and own or operate the dedicated point-to-point
facility to connect the Solar Power Plant to the Visayas Grid so
it could commence commercial operations at the soonest
possible time;

20. It is critical that a provisional authority be issued considering

that the deadline to avail of the Feed-In Tariff allocation is on
March 16, 2016[,] or until the iustallation target of 500 MW
for solar power plants has been fully subscribed, whichever
comes first;

21. Therefore, there is sufficient basis for the issuance of a

provisional authority pending the issuance of a final decision;

A copy of the sworn statement of its President, Juan Xavier P. Zabaleta, is attached to the
Application as Annex "S".
u 2013 Supply-Demand Outlook of the Department of Energy.
" Section 2 (a), Republic Act 9513.
'3 Section 20, Republic Act 9513.
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 6 of 16

PRAYER
22. It prays that the Commission:

1) issue an order provisionally authorizing NISPI to develop

and own or operate the Dedicated Facility Project; and

2) after hearing on the merits, render a Decision approving

the application.

The Commission having found NISPI's Application sufficient in

substance, issued an Order and a Notice of Public Hearing, both
dated 13 November 2015, setting the case for initial hearing on 26
January 2016.

On 15 January 2016, NISPI filed its Pre-trial Brief with even ,

date, attaching therewith the Judicial Affidavit of Atty. Mary Ann lIJ.
Ballesteros, and various documents. On even date, NISPI also filedja
Motion to Withdraw the Judicial Affidavit of Ms. Anabel e
Natividad.

During the hearing on 20 January 2016, NISPI manifested

through its counsel that the prescribed period for the publicatioh
requirement of the Order and Notice of Public Hearing, both dated ~3
November 2015 was not complied with. Accordingly, the Commissiop
cancelled the scheduled hearing and directed the Applicant to file la
written manifestation and motion to reset the hearing of the instant
Application in order for NISPI to fully comply with the jurisdiction~l
requirements.

On January 2016, NISPI filed a Manifestation with Motion

21
to Reset Hearing (Manifestation). Likewise, on 12 May 2016, NIS*
filed an Urgent Motion to Reset the Case for Hearing (MotionO.
Finding the Manifestation and Motion to be meritorious, an Ord(\r
with Notice of Public Hearing both dated 31 May 2016, was issued ~y
the Commission, setting the case for initial hearing on 26 July 2016'1

On 20 July2016, NISPI filed its Supplemental Pre-trial Bri if

dated 18 July 2016.

During the hearing held on 26 July 2016, only tHe

representative of NISPI appeared. There was no intervenor 6r
oppositor who appeared. There was no intervention or oppositio
filed either.
ERC CASE NO. 2015-055 MC
DECISION/06 JUNE 2017
Page70f16

During the said hearing, NISPI filed its proofs of comPlianle

with the Commission's posting and publication requirements, whiclh
were duly marked as exhibits "A" to "1.". Finding the submissidn
compliant with the jurisdictional requirements enumerated in tlie
Order dated 31 May 2016, the Commission declared that it acquir~d
jurisdiction over NISPI's Application. I
Thereafter, the Expository Presentation commenced. AJ.
Annalee Joyce C. Toda (Atty. Toda), counsel of NISPI, delivered
under oath the said presentation. Thereafter, the Commission ask~d
clarificatory questions, which were duly addressed by Atty. Toda. rue
Commission then terminated the Expository Presentation arid
proceeded with the Pre-trial Conference.

During the Pre-trial Conference, NISPI manifested that tHe

proposed stipulation of facts as stated in the Pre-trial Brief dated ~5
January 2016 was updated in item (b) of the Supplemental Pre-tri&l
Brief filed by NISPI. Accordingly, the Pre-trial Brief and tHe
Supplement thereto were adopted by the Commission. Thereafter, t~e
Commission terminated the Pre-trial Conference and proceeded with
the presentation of evidence.

NISPI presented four (4) witnesses in the following order: 1)

Atty. Mary Ann D. Ballesteros, the acting Assistant Vice President fqr
Legal and Corporate Governance of NISPI; 2) Engr. Elmer iL.
Cimafranca, the acting Assitant Vice President for Electrical Systerrls
and Plant Construction Monitoring of NISPI; 3) Ms. Anabele R.
Natividad, an employee of Bronzeoak Philippines, Inc. (BP); and 4)
Mr. Jerold Joseph 1..Garcia, the acting Budgeting Manager ofNISPI

In the course of their respective direct examinations, all four

witnesses identified their respective Judicial Affidavits, and sever~l
documents, which were duly marked as exhibits. Thereafter, tHe
Commission asked clarificatory questions in relation to the testimody
of each witness. 1
Upon the termination of the presentation of evidence, NIS I I
was directed to submit its Formal Offer of Evidence, and additional
documents to aid the Commission in the evaluation of the instaAt
Application.

On 08 August 2016, NISPI filed its Compliance and

Manifestation dated 05 August 2016 attaching thereto a Single Lide
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 80f16

Diagram showing interconnection of Applicant's 27.2 MW AC solt

Power Plant, labelled as Annex "A". 1
On 10 August 2016, NISPI filed its Formal Offer of Eviden ,e
with even date. 1
On 30 January 2017, the Commission issued an Ord.r
admitting NISPI's marked exhibits contained in its Formal Offer hf
Evidence and submitting the instant case for resolution. . J
On 14 February 2017, the Commission deliberated and decid d
the instant Application. However, due to supervening events'" tHe
Decision could no longer be promulgated without undergoirtg
reconfirmation by the Commission En Bane. Thus, the Commissio
resolved to reconfirm the Decision on 06 June 2017.

ISSUE

The issue for the Commission's resolution is whether NISPI s

Application to develop, own or operate dedicated point-to-point
limited facilities to connect the 27.2 MW Solar Power Plant to tHe
Bacolod-San Enrique 69 kV Line should be approved.

DISCUSSION

The Commission approves NISPI's Application to develop an:

own dedicated point-to-point limited facilities to connect the 27.12
MW Solar Power Plant to the Bacolod-San Enrique 69 kV Lint
subject to certain conditions.

I. Project Description

This project refers to the development, ownership or operati0f

of a dedicated point to point limited transmission facility to conne t
the 32 MW DC Solar Power Plant of San Carlos Solar Energy In .
(SACASOL)'5to the Visayas Grid through the Bacolod - San Enriq~e
69 kV Line. The Solar Power Plant is composed of Phase A and B,
which is located in La Carlota City, Negros Occidental. It has a desig\ri
Peak Capacity of 27.2 MW AC.

14 The 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.
15 NISPI is a 100% wholly owned subsidiary ofSACASOL.
ERC CASE NO. 2015-055 MC
DECISION/06 JUNE 2017
Page 9 of 16

The components of the dedicated point-to-point limitJd

transmission facility are the following:

Item Cost (PhP)

69kV Transmission Line 69,108,267.28
LaCarlota69kVSubstation 40,090,193.12 I
LaCarlota69kVSwitchingStation 53,718,820.88 I
SanEnrique69kVSwitchingStation 45.442,282.32 I
Total 208,359,563.60

II. Project Rationale

The purpose of the Project is to cater the direct delivery ,f

NISPI's 27.2 MW Solar Power Plant in La Carlota City, Negrc s
Occidental to the Visayas Grid.

III. Project Cost

The total estimated cost of the pro posed Pro'~ect IS Tw b

Hundred Eight Million Three Hundred Fifty-Nine Thousantl
Five Hundred Sixty-Three and 60/100 Pesos (PhI>
208,359,563.60). The amount covers all the facilities to J:Je
constructed by NISPI, including the cost of assets that are n6t
dedicated point-to-point limited facilities. 1
The cost estimates were based on the Engineering, Procureme t
and Construction (EPC) Contracts of NISPI with Schema Konsult,
Inc. The cost of the dedicated point to point transmission facility wiil
be funded by San Carlos Energy, Inc. (SACASOL)through equity ana
debt financing for competitive purpose.

Noteworthy is the fact that the estimated cost is only for toe
purpose of computing the applicable permit fee based on the tot~l
project cost evaluated disregarding the functions and classification f
each facility and not for rate making purposes considering that it s
not the actual cost or the Optimized Depreciated Replacement Co t
(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 the National Transmissi06
Corporation (TRANSCO)/NGCP.
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 10 of16

Although, NISPI filed with the Department of Energy (DOE) ft

Feed-in-Tariff (FIT) eligibility, the same is still subject to approvdl.
Thus, in the event that NISPI becomes FIT eligible, the cost of its
dedicated point -to-point limited facilities that are included in tHe
approved FIT rate shall be considered once the asset of NISPI is
transferred to TRANSCOjNGCP based on the followidg
consideration:

a) If the fair market value of the asset is higher than tHe

facilities' cost incorporated in the determination of tHe
FIT, TRANSCOJNGCP shall pay the difference betweel:t
the said cost and the fair market value of the asset.

b) If the fair market value of the asset is lower than tHe

facilities' cost incorporated in the determination of tHe
FIT, the asset shall be treated as Contribution in Aid M
Construction (CIAC). NGCP shall maintain a separate
account of these amounts and the assets should nJt
appear in regulatory asset base or in its asset appraisal.

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

NGCP

The SIS conducted by the NGCP indicated that the Project wi I

be divided into two phases. Phase A will have a capacity of 18 M I
PDC equivalent to 15.3 MW PACwhile Phase B will have a capacity Qf
14 MW PDC equivalent to 11.9MW PAC. Phase A of the Solar Pow~r
Plant was completed on December 2015 while Phase B was completetl
on January 2016. On the other hand, the dedicated point to poir\t
limited transmission facility was completed on March 2016.

The SIS evaluated the projected transmission system for tHe

years 2015 and 2020 (look ahead) including the proposed generatiol:t
projects in the Visayas Grid as indicated in the NGCP's 20~3
Transmission Development Plan (TOP).

The thermal assessment indicated that the entry of the Project

will not cause overloading of transmission facilities in the Visay's
Grid during normal condition when all transmission facilities a e
online.

Moreover, it was revealed that during N-l condition, there wi I

be overloading of the Cebu-Negros interconnection. By 2020, tile
Negros- Panay interconnection will likewise be overloaded. Thes~,
 ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 11 Of16

however, are already prevailing even prior to the entry of the projeJ
The Project contributes to the loading of the Cebu-Negr6s
interconnection. 1
Meanwhile, the voltage assessment indicated that the entry ,f
the Project will improve the voltage profile in nearby substationk.
During N-1 condition by 2020, under-voltage problems will ~e
mitigated upon entry of the Project.

Lastly, the fault level assessment further indicated that, upop

the entry of the Project, the resulting fault level at various substatiorls
in the Visayas Grid will slightly increase but will remain to be withih
the interrupting capacities of the power circuit breakers (PCBs). Ih
the absence of data on interrupting capacities, it was assumed th~t
the interrupting capacities of PCBs in the 138 kV and 69 kY
substations are 40 kA and 25 kA, respectively.

V. Single Line Diagram

The Diagram below shows the connection scheme to the Visayas

Grid:

To San Enrique SIS To Valladolid SIS

D~ ----r-=s
SA ~-p.::=t-il'
OS 1_
.,.. , .. _---., ....
vo
CD-
c, San Enrique 69Kv S'Witching Station
i,.",

S$V'f
"-,"70 1
(T !;PJO ~
{'I.7r~.l

pee

CT
"'7.'
~P2Q
'S )
.,
';P70 ,

:U,' .~
au ••••
'OM "Col_
•..~.,."'«u"

,_........
,••..•,~
.•. "

- - - - - - - - - - - - - - - - - - - - - - - ~,,- - - - . - - - - - - - - - - - - - - -
,,
,
,,
,,
• • • • • •
L
.....__-=_
f:>c::::: I r.>~.:::.""i
1-=.•. 1
••""......
•.:. •
0''''''''''
[':';:,<-:'":'
1_-=.:.1 : f::;<-~l
."""YU'
I
L
,

.'00""
,

• ..,.,w
l>-;;~I
.___

uoo....
r::~.
0__ ~"i,'
U'""""
- I
_I
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 12 of 16

VI. Technical Configuration

The dedicated point-to-point limited facilities Project involves

the construction of a 12.5 !un 69 kV single circuit line using 336)4
MCM ACSR conductor, which will start from the power plant (Ua
Carlota Substation & Switching Station) to the tapping point alodg
the Bacolod-San Enrique 69 kV line (San Enrique Switching StationD.
The tapping point will be located around 2 kms from the NOCECb
San Enrique substation and will have a 69 kV power circuit breaker to
isolate any fault along the 12.5 km line from the Bacolod - S~n
Enrique 69 kV line.

The connection of the Solar Power Plant to the Visayas Grid

through the Bacolod-San Enrique 69 kV line was determined to tie
the most technically and economically viable option for the followidg
reasons:

1. It is the nearest possible tapping point; and

2. The line can still accommodate the maximum power that tile
plant can supply.

The San Enrique 69 kV Switching Station installed near tile

Bacolod-San Enrique 69 kV line is considered a transmission ih
function and is recommended to be turned over to NGCP pursuant to
the Commission's Resolution No. 23, Series of 2016'6, to wit:

Connection Assets are those facilities which, if taken

out of the system, will only affect the Customer connected to
it and will have minimal effect on the Grid, or other
connected customers.

The San Enrique Switching Station affects other NGCiP

customers connected along the Bacolod-San Enrique 69 kV line anli
said equipment does not fall anymore within the definition M
Connection Asset and as such, it performs a transmission functiorit.
NISPI, in its submitted Facility Study, recommended the switchi I
station, which was later on approved by NGCP for isolating the li e
going to either Valladolid or San Enrique in case of fault.

The switching station is more than the minimum requireme t

as provided on Section GCR 4.6.1.2b and GCR 4.6.1.4 of tile

" Entitled "Re'olution Adopting the Amended Rule, on the Definition and Boundaries
Connection Assets for Customers of Transmission Provider".
If
ERC CASE NO. 2015-055 MC
DECISION/06 JUNE 2017
Page 13 of 16

Philippine Grid Code 2016 Edition. The proposed scheme is moJe

advantageous to the Applicant to enable its Solar Power Plant to
supply power even during line fault.

The cost of the said equipment should not be recovered from,

the consumers, and therefore, shall be treated as CIAC. This is
consistent with the policy, which provides that if the end-user, 6r
another party requests facilities in excess of that which is necessary to
meet the End-user's power requirements, then all costs attributabie
to such excess shall be at the requesting party's sole cost and expensf'
which shall be treated as CIAC. NGCP shall maintain a separate
account of this CIAC and the assets should be excluded in its rate ba~e
or in its asset appraisal. 1
Further, the single line diagram submitted by the Applica t
shows that the dedicated point-to-point limited transmission facility
from the plant switchyard to the San Enrique 69 kV Switching Statiol:t
is to be used solely by the Applicant. Pursuant to Rule 5 Section sa(\)
of the Implementing Rules and Regulations of the Electric PowJr
I
Industry Reform Act of 2001, no other user must be connected to
dedicated point-to-point limited facilities, to wit:

xxx Such dedicated point-ta-point limited transmission

facilities are required only for the purpose of connecting to the Grid
which will be used solely by the Generation Facility, and are not
used to serve End-users or Suppliers directly.

VII. Technical and Financial Capability ofNISPI

Registered with the Securities and Exchange Commission (SEG)

in November 2014, NISPI was the assignee of San Carlos Sol~r
Energy Inc. (SACASOL)to the 32 MW Solar Plant in La Carlota CitY,
Negros Occidental, and the 48 MW Solar Plant in Manapla, Negrds
Occidental.

On March 2016, the Department of Energy (DOE) approved t e

assignment of the solar power plant to NISPI. NISPI then took ov r
the development and operation of the solar plant. NISPI hire\:!
experienced electrical engineers to supervise the design, constructiol:t
and commissioning of the dedicated point-to-point limite\:!
transmission facility.

Further, the contractors of NISPI assigned experienceFl

personnel to head the construction of the project. Based on NISPI's
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 140f16

application, the operation and maintenance of the line shall Ie

conducted by the NGCP.

VIII. Permit Fees

Under Commonwealth Act No. 146, as amended, a permit fee

for the authority to construct the subject project is prescribed for tHe
reimbursement of the expenses of the Commission in evaluating tHe
case based on its total project cost. As to the instant case, the projett
is not exclusively composed of dedicated point to point limit~d
facilities, but also of facilities that have transmission function. Sinde
the application was filed solely by NISPI (including the facilities to tie
transferred to NGCP), the permit fee should be paid solely by tHe
Applicant based on the total cost of the project and computed &s
follows:

Permit Fee = Total Project Cost X 0.75

100

= 208,359,563.60 X 0.75
100

Permit Fee = PhP 1,562,696.73

WHEREFORE, the foregoing premises considered, t e

Application of Negros Island Solar Power, Inc. (NISPI) to develop
and own or operate dedicated point-to-point limited facilities to
connect the 27.2 MW Solar Power Plant to the Bacolod-San EnriqJe
69 kV Line, is hereby APPROVED, subject to the followidg
conditions:

1) The NGCP shall operate and maintain the subje t

dedicated point-to-point limited transmission faciliti s
subject to applicable charges;

2) NISPI shall execute an undertaking or similar document s

that after construction, it will turn over to NGCP the S
Enrique 69 kV Switching Station that have a transmissiop
function as Contribution in Aid of Construction (CIAC~.
NGCP shall maintain a separate account of this CIAC an\:!
the assets should not be included in its rate base or in its
asset appraisal;
 ERC CASE NO. 2015-055 MC
DECISION/06 JUNE 2017
Page 15 Of16

3) The dedicated point-to-point limited facilities should Je

developed and constructed in accordance with the Systeln
Impact Study (SIS) and Facility Study (FS) requirements,
so as .n~t to result in the degradation of NGCPI's
transmISSIOnsystem;

NISPI shall solely use the dedicated point-to-point limited

facilities; and

5) Ownership of any portion of the dedicated point-to-point

limited facilities required for competitive purposes or ~o
connect any other user shall be transferred ~o
TRANSCO/NGCP at a fair market price but subject ~o
optimization. In determining the fair market price, tHe
cost of the facility as incorporated in the determination 'f
Feed-in- Tariff (FIT), in the event that the generatio
company be FIT eligible, shall also be considered.

Relative thereto, NISPI shall be required to pay the permit fee

amounting to One Million Five Hundred Sixty-Two Thousantl
Six Hundred Ninety-Six and 73/100 Pesds
(PhP1,562,696.73).

SO ORDERED.

Pasig City, 06 June 2017.

.-TARDC

JOSEFINAPATRI • GPALE-ASIRIT G RONIMO D. STA. ANA

Co loner V Commissioner
LS: JBF/1tft/ IAP~ ROS:~F~

*The Chairman was placed on preventive suspension as per Order of the Office of the President (oP- C
Case No. 17-D-094) dated 2 May 2017 and received on 04 May 2017.
ERC CASE NO. 2015-055 MC
DECISIONj06 JUNE 2017
Page 16 Of16

Copy furnished:

1. ATIY. ANNALEEJOYCE C. TODA

Counsel/or Applicant NISPI
Fourth Floor, First Global Building
122 Gamboa Street, Legaspi Village, Makati City

2. NEGROSISLANDSOLARPOWER, INC. (NISPI)

Applicant
Emerald Arcade, F.e. Ledesma St., San Carlos City
Negros Occidental, Philippines

3. THE OFFICE OF THE SOLICITOR GENERAL

134 Amorsolo Street, Legaspi Village, Makati City
Metro Manila

4. THE COMMISSION ON AUDIT

Don Mariano Marcos Avenue
Diliman, Quezon City, Metro Manila

5. THE SENATE COMMITTEE ON ENERGY

Senate of the Philippines
GSIS Building, Roxas Blvd., Pasay City, Metro Manila

6. lHE HOUSE CQMMI'ITEE ON ENERGY

House of Representatives
Batasan Hills, Quezon City, Metro Manila

7. OFFICE OF THE PRESIDENT OF PCCI

Philippine Chamber of Commerce and Industry (PCCI)
3rd Floor, ECC Building, Sen. Gil Puyat Avenue
Makati City

8. OFFICE OF THE PROVINCIAL GOVERNOR

Negros Occidental

9. OFFICE OF THE MAYOR

San Carlos City, Negros Occidental

10. OFFICE OF THE MAYOR

La Carlota City, Negros Occidental

11. THE NATIONAL GRID CORPORATION OF THE PHILIPPINES (NGCP)

NGCP Building, Quezon Avenue corner BIR Road
Diliman, Quezon City

12. REGULATORY OPERATIONS SERVICE (ROS)

Energy Regulatory Commission
Pasig City