ERC okays transmission facilities for Mindoro plants

The Energy Regulatory Commission (ERC) has approved Occidental Mindoro Consolidated Power Corp.’s (OMCPC) application to develop and own dedicated point-to-point transmission facilities that connect its solar and diesel power plants to the Mindoro grid.

In a decision approved last Jan. 5, the ERC authorized OMCPC to proceed with the project intended for its 7.4-megawatt-peak solar power plant with battery energy storage and its 8.3-megawatt diesel power plant. Both are in San Jose, Occidental Mindoro.

The facilities will link the plants to the National Power Corp.’s (NPC) 69-kilovolt Mamburao-San Jose line through OMCPC’s 13.8-kilovolt bunker power station.

The Commission said the facilities are intended solely to connect OMCPC’s generating facilities to the grid. They would not affect other users if removed.

Thus, they qualify as dedicated point-to-point or “connection assets” under the Electric Power Industry Reform Act.

The ERC noted that the development of the facilities is necessary to allow OMCPC to continue commercial operations and deliver power to the Occidental Mindoro Electric Cooperative. The two firms have an approved power supply agreement.

While allowing ownership, the ERC denied OMCPC’s request to operate and maintain the facilities. These functions should remain with NPC or the National Transmission Corp. (TransCo) to preserve system reliability in off-grid and missionary electrification areas.

Also, the Commission ordered OMCPC to immediately turn over ownership of a cubicle-type gas-insulated switchgear at the bunker power station. The component functions as a transmission asset rather than a dedicated point-to-point facility.

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OMCPC reported an actual project cost of P44.5 million, higher than its original estimate.

The ERC said the amount would be used only for permit fee computation and would not automatically determine the asset’s fair market value if later transferred to NPC or TransCo.

Based on the revised cost, the ERC directed OMCPC to pay a permit fee of P333,773.82 and submit a compliance report within 30 days. At the same time, it warned that prior approval remains mandatory for similar projects despite regulatory forbearance in this case.