For+Posting+624+-+TRANSCO 2021FIT-ALL IO 2020-020+RC.10.17.20.V1.1.MVM - LSP Revised+hearing+dates+v2 Final.11+ (SGD)

Republic of the Philippines Digitally signed by Heiddi
ENERGY REGULATORY COMMISSION Venecia R. Barrozo
San Miguel Avenue, Pasig City
IN THE MATTER OF THE

APPLICATION FOR
APPROVAL OF THE FEED-IN
TARIFF ALLOWANCE FOR
CALENDAR YEAR 2021
PURSUANT TO THE
GUIDELINES FOR THE
COLLECTION OF THE FEED-
IN TARIFF ALLOWANCE AND
DISBURSEMENT OF THE
FEED-IN TARIFF
ALLOWANCE FUND, WITH
PRAYER FOR PROVISIONAL
AUTHORITY
ERC CASE NO. 2020-020 RC
NATIONAL TRANSMISSION
CORPORATION (TRANSCO),
Applicant.
x--------------------------------------x
ORDER
On 04 August 2020, the National Transmission Corporation

(TRANSCO) filed an Application dated 20 July 2020, seeking the
Commission’s approval of the Feed-in Tariff Allowance for Calendar
Year (CY) 2021 pursuant to the Guidelines for the Collection of the
Feed-in Tariff Allowance and Disbursement of the Feed-in Tariff
Allowance Fund, with prayer for provisional authority.
The pertinent portions of the said Application are hereunder

quoted as follows:
1. TransCo is a government instrumentality created pursuant to

Republic Act (R.A.) No. 9136, otherwise known as the Electric
Power Industry Reform Act of 2001 (EPIRA), with principal
office address at TransCo Main Building, Quezon Avenue corner
BIR Road, Diliman, Quezon City, where it may be served with
summons and other processes of this Honorable Commission.
ORDER/16 NOVEMBER 2020
PAGE 2 OF 28
NATURE OF THE APPLICATION
2. This Application is being filed by Applicant TransCo in its

capacity as FIT-All Fund Administrator tasked with the
establishment, management/administration, and
disbursement/settlement (thru the Trustee Bank) of the FIT-All
Fund pursuant to ERC Resolution No. 15, Series of 2012 issued
on 19 November 2012 and on the bases of relevant laws, rules,
and regulations as will be discussed hereafter.
3. On 16 December 2008, R.A. No. 9513 entitled “An Act Promoting

the Development, Utilization and Commercialization of
Renewable Energy Resources and for Other Purposes” (RE Law)
was enacted to: (1) accelerate the exploration and development
of renewable energy resources to achieve energy self-reliance by
reducing the country’s dependence on fossil fuels and thereby
minimize the country’s exposure to price fluctuations in the
international markets; (2) increase the utilization of renewable
energy by providing fiscal and non-fiscal incentives; (3)
encourage the development and utilization of renewable energy
resources as tools to effectively prevent or reduce harmful
emissions and thereby balance the goals of economic growth and
development with the protection of health and the environment;
and (4) establish the necessary infrastructure and mechanism to
carry out the mandates specified in the Act and other existing
laws.
4. To achieve these state policies, Section 7 of the RE Law mandates

the establishment of a Feed-in Tariff System (FIT System) for
electricity produced from wind, solar, ocean, run-of-river
hydropower, and biomass. The FIT System is an incentive
scheme that, among others, grants priority connections to the
grid, priority purchase and transmission of, and payment for,
electricity generated, and fixed tariff for a period not less than
twelve (12) years to be determined by the Energy Regulatory
Commission (ERC)1 for eligible Renewable Energy (RE)
generation.
5. On 12 July 2010, the ERC, in consultation with the National

Renewable Energy Board (NREB) and other stakeholders, issued
Resolution No. 16, Series of 2010 entitled Resolution Adopting
the Feed-in Tariff Rules (FIT Rules) where it established, among
others, the Feed-in Tariff (FIT) System, the method of
establishing and approving the FIT and the Feed-in Tariff
Allowance (FIT-All).
6. Under the FIT Rules, the FIT System guarantees all eligible
renewable energy plants an entitlement to the applicable FITs for
a period of twenty (20) years.2
7. Further, Section 2.2 of the FIT Rules provides that the ERC shall
approve technology-specific FITs based on such FITs to be
1 See Section 5, RE Law IRR.

2 Section 4, FIT Rules.
PAGE 3 OF 28
recommended by the NREB. Accordingly, on 27 July 2012, the

ERC issued its Decision in ERC Case No. 2011-006 and
Resolution No. 10, Series of 2012 entitled “Resolution Approving
the Feed-in Tariff Rates” where it approved the following initial
FIT Rates:
ERC-APPROVED FIT
TECHNOLOGY RATES ERC-APPROVED DEGRESSION RATES
(PhP/kWh)
WIND 8.53 0.5% after year 2 from effectivity of FIT
BIOMASS 6.63 0.5% after year 2 from effectivity of FIT
SOLAR 9.68 6% after year 1 from effectivity of FIT
HYDRO 5.90 0.5% after year 2 from effectivity of FIT
8. On 27 March 2015, the ERC issued Resolution No. 06, series of

2015 entitled “Resolution Adopting the New Solar Feed-In Tariff
Rate” setting a new Solar FIT Rate of PhP8.69/kWh (herein
referred to as “Solar FIT 2”). The Solar FIT 2 was issued as a
result of the revised installation target for solar energy
generation from 50 MW to 500 MW and shall be applied to new
Solar Plants that have been commissioned after the effectivity of
said Resolution and until 15 March 2016.
9. On 06 October 2015, the ERC likewise issued Resolution No. 14,

series of 2015 also known as “Resolution Adopting the Wind
Feed-in Tariff (Wind-FIT2) Rate” setting a new Wind FIT Rate of
PhP7.40/kWh (herein referred to as “Wind FIT 2”). The Wind
FIT 2 shall only be applied to three (3) wind power projects
namely: San Lorenzo, Nabas, and Pililia Power Projects which
have already commenced commercial operations as certified by
the Department of Energy (DOE).
10. On 24 January 2017, the ERC issued Resolution No. 1, series of

2017 which is the “Resolution Setting the Degressed Feed-in
Tariff Rates for Run-of-River Hydro and Biomass, as Provided in
Section 2.11 of the Feed-in Tariff Rules (FIT Rules)” setting the
degressed rate for the period January-December 2017 for run-of-
river Hydro at PhP5.8705/kWh and Biomass at
PhP6.5969/kWh.
11. Further, through a letter dated 23 February 2018, the DOE

endorsed to the ERC the extension of the Biomass and Run-of-
River Hydropower installation targets eligibility period for 2
years from 31 December 2017, or until 31 December 2019, or
upon successful commissioning of the Run-of-River Hydro and
Biomass power projects covering the remaining balance of the
respective installation target, whichever comes first.
12. Subsequently, in a letter dated 26 March 2018, the ERC directed

the NREB to submit its proposal for re-adjusted FITs on these
two technologies. The NREB made its submission thereafter.
13. On 24 June 2020, TransCo wrote a letter to DOE clarifying the

extension of eligibility for FIT of Hydropower plants until full
PAGE 4 OF 28
subscription of the installation target. The DOE has yet to

respond.
14. On 26 May 2020 the Commission issued Resolution No.6 Series

of 2020 also known as “A Resolution Approving the Adjustments
to the Feed-in Tariff (FIT)” covering adjusted FITs for years 2016
to 2020 for the different technologies, except for Biomass and
Hydropower plants under the FIT eligibility extension.
15. The FIT-All, on the other hand, is a uniform charge (in

PhP/kWh) billed to all on-grid electricity consumers who are
supplied with electricity through the distribution or transmission
network. The FIT-All shall be established and set by the ERC on
an annual basis and taking into account the following: the
forecasted annual required revenue of the Eligible RE Plants;
previous year’s over or under recoveries; administration costs;
forecasted annual electricity sales; and, such other relevant
factors to ensure that no stakeholder is allocated with additional
risks in the implementation of the FITs.3
16. On 19 November 2012, the ERC issued Resolution No. 15, Series
of 2012, designating TransCo as the FIT-All Fund Administrator
tasked with the establishment, management/ administration,
and disbursement/settlement (thru the Trustee Bank) of the FIT-
All Fund.
17. The imposition, collection, and disbursement of the FIT-All is

further covered by the “Guidelines on the Collection of the Feed-
in Tariff Allowance (FIT-All) and the Disbursement of the FIT-
All Fund” (Guidelines) issued and approved by the ERC in its
Resolution No. 24 dated 16 December 2013.
18. Under the FIT-All Guidelines, TransCo has to make an annual

determination of the FIT-All rate and file its application with the
ERC not later than end of July of each year for the FIT-All rate
that will be implemented for the following year.
19. TransCo has so far made the following petition for the FIT-All
rate. TransCo requested for extension of its filing of the
application in certain years and the same were favorably granted
by the ERC.
This space is intentionally left blank.
3 Section 2.5, FIT Rules.

PAGE 5 OF 28
20. Therefore, by and pursuant to the RE Law and Resolution No. 16

Series of 2010 (FIT Rules), as amended by Resolution No. 15
Series of 2012, in connection with the Guidelines and other
pertinent laws, rules and regulations, the instant Application is
submitted to the Honorable Commission for its due
consideration of the herein applied for FIT-All Rate for the year
2021.
FEED-IN TARIFF ALLOWANCE FOR 2021
21. TransCo has computed a FIT-All Rate of PhP0.2212/kWh for

2021, determined using the formula provided in Section 1.3 of the
Guidelines, as follows:
Where:
DESCRIPTION
FIT-All is the Feed-in Tariff Allowance to be implemented in
Yeart+1 in PhP/kWh, as provided for in the FIT Rules
and the Guidelines.
FD is the estimated Total FIT Differential required for
Yeart+1 in PhP, and as further described in Section
1.4.1 of the Guidelines.
WCA is the estimated Working Capital Allowance required
for Yeart+1 in PhP, and as further described in Section
AA is the Administration Allowance to be implemented in
DA is the Disbursement Allowance to be implemented in
PAGE 6 OF 28
FNS is the Forecast National Sales, in kWh, to be applied

for Year t+1 and as further described in Section 1.4.4.2
of the Guidelines.
T is the year the application for setting the FIT-All is
filed with the ERC.
t+1 is the year following t
22. Whenever Yeart+1 (implementation year) is used in any formula

in the present Application, the same shall refer to the year 2021.
Correlatively, the Yeart+2 whenever used in any formula in this
Application shall refer to the year 2022.
COMPONENTS OF THE FIT-ALL
I. Forecast National Sales
23. The Forecast National Sales (FNS) is the denominator in the

FIT-All formula. The estimated level for 2021 is presented first
since it is best to present the determined value of the other FIT-
All components in terms of PhP/kWh, where this FNS is the
kilowatt-hours (kWh) denominator.
24. The FNS refers to an estimated total kilowatt-hour of electricity

billed to consumers who are supplied with electricity in all On-
Grid areas in the Philippines for a given year.
25. The FNS, in kWh, shall be equal to the latest available Electricity
Sales as stated in the Philippine Power Statistics, excluding
Utilities Own Use and Power Losses, or as otherwise certified by
the DOE and as adjusted by the historical growth rate published
for the immediately preceding three (3) years.
26. From the historical data provided by the DOE covering years
2016 to 20194, TransCo computed the compounded annual
growth rate (CAGR) of Electricity Sales for a 3-year period using
the formula:
Where:
V(t0) = beginning value
V(tn) = end value
tn-to = number of years
27. TransCo computed the projected 2020 level by increasing the

historical 2019 level by the computed CAGR (2016-2019). Then,
TransCo again computed for the rolling 3-year CAGR to project
4The DOE letters dated 10 May 2018, 07 June 2019 and 20 May 2020 providing data on the
Historical Electricity Sales and Power Consumption, in MWh for years 2012 to 2017, 2018
Electricity Sales and Power Consumption (MWh) and 2019 Electricity Sales and Power
Consumption (MWh) are attached respectively hereto as Annex “A” to “A-7” to form an integral
part hereof;
PAGE 7 OF 28
2021 level. TransCo came up with the following Forecast

National Electricity Sales (FNS) for 2020 and 20215:
Table 1. Forecast National Sales, kWh
2020 2021
90,525,566,639 95,642,839,642
This method in forecasting the FNS is consistent with the FIT-All

Guidelines issued by the ERC. The 2021 level in Table 1 will be
used in showing the subsequent FIT-All components in terms of
PhP/kWh, unless otherwise stated.
28. TransCo is aware that with the present COVID-19 pandemic, it is

likely that the total national electricity consumption will go
down. TransCo conducted additional forecasting exercise, with
the result showing that for 2020, there will be a decrease in the
national sales by 5%. By 2021, it was assumed that the economy
will somehow catch up. The resulting FNS under COVID-19
scenario for 2020 and 20216 are as follows:
Table 2. Forecast National Sales, kWh
2020 2021
81,549,061,150 90,991,584,020
II. Total FIT Differential
29. The Total FIT Differential represents the difference between: (1)
the forecast applicable FIT Rate for Yeart+1 that each Eligible RE
Plant is forecasted to receive for each kWh delivered, and (2) the
forecast applicable cost recovery rate as determined under the
Guidelines, multiplied by the projected annual energy generation
from Eligible RE Plant for yeart+1. In setting the FIT-All for
Yeart+1, the FIT Differential is represented by the following
formula:
Where:
DESCRIPTION
Forecast RE is the Forecast RE Generation of Eligible RE Plantx
Genx,t+1 (in kWh).
Forecast FIT is FIT Rate, as degressed (if applicable) and adjusted
Ratex,t+1 for local inflation and foreign exchange (FOREX) as
forecasted for yeart+1, in PhP/kWh, that Eligible RE
5The computation of Forecast National Sales (FNS) for 2020-2021 is attached hereto as Annex “B”
to form an integral part hereof;
6 The computation of Forecast National Sales (FNS) under COVID-19 Scenario for 2020-2021 is
attached hereto as Annex “B-1” to for an integral part hereof.

PAGE 8 OF 28
Plantx is forecasted to receive for each kWh

delivered.
Forecast Cost is the applicable Forecast Cost Recovery Rate to be
Recovery implemented in Yeart+1 for Eligible RE Plantx, in PhP
kWh.
FDt-1 is the variance between the actual FIT Differential
(over)/under for yeart-1 (Actual FDt-1) and the FIT Differential
collected for yeart-1 (Collected FDt-1). There is over
recovery if Collected FDt-1> Actual FDt-1 and under
recovery if Collected FDt-1 is < Actual FDt-1.
30. Alternatively, the formula in Paragraph 26 can be viewed or

rewritten as:
II.1. Forecast Annual Renewable Energy Generation
31. TransCo primarily used the most updated list of RE Projects that
are projected to be eligible/already eligible under the FIT System
in 2014-2021 and corresponding forecast data as provided by the
DOE7. TransCo likewise tapped its own database containing
historical information and the available submissions of RE
Developers on actual/forecast generation.8 Actual billing data
invoiced to the FIT-All Fund up to May 2020 billing period were
used where available.
32. Given the list from DOE which provides the best estimate of the
timing of entry of Eligible RE Plants, TransCo aims to be able to
adequately provide for the corresponding payout requirements.
However, the list does not in any way give preemptive right to the
identified projects to be counted under the final FIT-eligible
projects or limit the payment of FITs to these projects. Only
Eligible RE Generators providing actual generation to the grid
will be paid the FIT according to actual volume of generation.
33. For Wind and Solar FIT-Eligible RE Developers already billing

the FIT-All Fund and with effective Renewable Energy Payment
Agreement (REPA), TransCo generally adopted their 2021 to
2022 energy generation forecast submissions. (See Annexes “D-
1” to “D-25”).
34. For Biomass and Run-of-River Hydropower plants already

billing the FIT-All Fund, TransCo followed the monthly
projection provided by the RE Developers (See Annexes “D-26”
to “D-64”). TransCo also used the 2016-2019 historical capacity
factors of RE plants to project 2021-2022 annual generation if
the RE generators submission/the DOE forecast are perceived to
7The DOE transmittal letter dated 05 May 2020 and its attachments are hereto attached as Annex
“C” to “C-16”.
8The 2020 to 2022 energy forecast generation per Eligible RE Plant are summarized in the “List of
FIT Eligible RE Generation Forecast Submission as of July 20, 2020” and its attachments marked
hereto as Annexes “D” to “D-64” to form an integral part hereof.
PAGE 9 OF 28
be too high compared to the actual levels in 2019. For some

Biomass and Hydropower plants that are projected new entrants
where only the annual forecast from DOE were available,
TransCo used derived monthly indices from the generation
history of biomass and hydro generators already under the FIT
system, by grid9, in determining the monthly generation forecast.
Incidentally, monthly generation data are useful during the
initial year of entry of the plant as they serve to account the
eligible generation which may not be for the full year.
35. With the extension of the availment of the FIT for

undersubscribed capacities, TransCo capped the installation
target for Biomass plants up to the capacity target set by the DOE,
i.e., 250 MW. For Hydropower plants, TransCo considered the
full line up in the DOE list, which is still below full subscription.
36. TransCo limited the determination of the FIT-All rate to include

only Eligible/Projected Eligible RE capacities up to the
installation targets set by the DOE as follows: 525.95 MW for
Solar up to March 15, 2016; 400 MW for Wind plants that
became operational after the RE Law of 2008 and 33MW for pre-
RE Law plants; 251.46MW for Biomass; and, 204.15MW for Run-
of-River Hydropower under the RE Law plus an additional
75.88MW for pre-RE Law plants.
37. For Solar and Biomass plants, TransCo considered capacities

beyond the installation targets set by the DOE due to the
principle of commercial and technical indivisibility of projects.
38. Based on the foregoing, the applicable Forecast Annual

Renewable Energy Generation of Eligible RE Plants (kWh) for
the years 2012-2015 (lumped), 2016, 2017, 2018, 2019, 202010,
2021 and 2022 are as follows:
Table 3. Forecast Annual Renewable Energy Generation, GWh

Technology 2012-2015 2016 2017 2018 2019 2020 2021 2022
Biomass 279.46 533.83 671.97 797.94 1,052.85 1,535.86 1,546.45 1,545.91
Hydropower 88.37 98.04 149.09 291.12 550.73 976.11 1,129.34 1,157.59
Solar 155.06 634.56 720.64 753.18 730.10 754.49 741.06 738.04
Wind 776.99 952.84 1,074.85 1,135.08 1,026.70 1,039.95 1,092.94 1,093.38
Total 1,299.88 2,219.26 2,616.56 2,977.32 3,360.39 4,306.41 4,509.78 4,534.92
The 2022 levels are needed for the determination of the WCA.
II.2. Forecast Applicable FIT Rate and Forecast FIT Revenue
39. Forecast Applicable FIT Rate refers to the prevailing ERC-

approved and published schedule of rates in PhP/kWh for each
emerging renewable energy technology, as appropriately
degressed if applicable, and adjusted for Consumer Price Index
(CPI) and Foreign Exchange (FOREX) movements, in
accordance with Section 2.10 of the FIT Rules11.
9 Monthly Seasonality indices for Hydro and Biomass Plants are hereto attached as Annex “E”.
10The 2012 to 2020 levels are a mix of actual and forecast values.
11 Section 1.4.1.1, Guidelines.
PAGE 10 OF 28
40. TransCo adopted the assumptions and manner by which the

Honorable Commission derived the Adjusted FITs under
Resolution 6 Series of 2020 in deriving the 2021 Adjusted FIT
rates. The CPI and Forex are indexed against 2014 levels.
41. In the absence of new FIT rates to date associated with the
extended availment of the installation targets for Biomass and
Hydro until 2019, TransCo in the meantime applied further
degression to the 2017 degressed rates. And thereafter,
computed for the corresponding Adjusted FITs until 2021.
Table 4. Adjusted FIT Rates for 2021, PhP/kWh

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Technology Entrant Entrant Entrant Entrant Entrant Entrant Entrant
(2014-2015) (2016) (2017) (2018) (2019) (2020) (2021)
Biomass 7.5975 7.6629 7.3761 7.0388 6.7516 6.5182
Hydropower 6.7590 6.7772 6.5065 6.2171 5.9804 5.8043 5.7540
Bakun Plant 5.6925
Solar 11.0967 10.1226
Wind 9.7766 8.5864
Bangui 1 & 2 6.8310
42. The Total FIT Revenue appearing in the formula in Paragraph 30

was obtained by multiplying the Eligible RE generation per
technology summarized in Table 3 by the corresponding
appropriate FIT rates in Table 4. Calculations were made on a
per plant basis. For 2022, which is required only for the
computation of the WCA, the Adjusted FIT rates for 2021 were
used for simplicity of assumption. The resulting levels are given
as:
Table 5. Total FIT Revenue by Technology, In Mn PhP

Technology 2012-2015 2016 2017 2018 2019 2020 2021 2022
Biomass 1,858 3,561 4,498 5,299 6,940 10,111 11,139 11,136
Hydropower 525 582 888 1,712 3,217 5,664 6,847 7,010
Solar 1,491 5,661 6,454 6,692 6,502 6,708 7,649 7,618
Wind 6,320 7,593 8,606 9,067 8,188 8,309 10,058 10,062
Total 10,194 17,397 20,445 22,769 24,847 30,792 35,693 35,825
43. It is worthy to note that to date, ERC Resolution No. 6 series of

2020 has not become effective pending its publication, and
TransCo has not implemented the adjusted FITs. That is, the
computation and actual payment of FIT revenues for actual
generation in 2016 up to present have been based on unadjusted
FIT rates. TransCo later on presents its assumption for the
implementation period of past due adjustments.
II.3. Forecast Cost Recovery Rate
44. Simply put, the Forecast Cost Recovery Rate (FCRR) is the
projected generation rate that the Eligible RE Plant would likely
receive if it were not under the FIT System.
45. Under Section 1.4.1.2 of the Guidelines, the manner by which the
FCRR is forecasted and applied to a particular Eligible RE Plant
shall be based on whether or not the Eligible RE Plant operates
PAGE 11 OF 28
in a Grid where the Wholesale Electricity Spot Market (WESM)

is operational or not.
46. Where WESM is operational (Luzon and Visayas), the FCRR for
the Eligible RE Plant shall be equivalent to the average of the
monthly system Ex-Ante Load Weighted Average Price (LWAP)
of the WESM for the Luzon and the Visayas Grids for the thirty-
six (36) months immediately preceding the filing of the
application for the setting of the FIT-All.
47. The FCRR to be applied for Eligible RE Plants where WESM is

non-operational (Mindanao) shall be the weighted average of the
generation cost of the Host Distribution Utility (Host DU) from
all its other generation sources, excluding generation from any
Eligible RE Plant-Non-WESM with a Renewable Energy Supply
Agreement (RESA) with the Host DU, for the twelve (12) months
immediately preceding the filing of the application for the setting
of the FIT-All.
48. TransCo requested the Philippine Electricity Market Corporation

(PEMC) for an update on the LWAP for the period April 2017 to
March 2020 which the latter provided through a letter dated 28
April 202012.
49. Consequently, TransCo came up with the following thirty-six

(36)-month averages for Luzon and Visayas:
50. For the FCRR for Mindanao, potential Host DUs were identified
from the line-up of projects and their location. For current Host
DUs, namely, Davao del Sur Electric Cooperative, Inc.
(DASURECO), South Cotabato I Electric Cooperative, Inc.
(SOCOTECO I), First Bukidnon Electric Cooperative, Inc.
(FIBECO), South Cotabato II Electric Cooperative, Inc.
(SOCOTECO II) and Sultan Kudarat Electric Cooperative, Inc.
(SUKELCO), TransCo referred to the FIT-All Fund database of
Actual Cost Recovery Rates (ACRRs). For Manolo Fortich 1 & 2,
TransCo requested the ACRRs of its Host DUs, namely,
Zamboanga del Norte Electric Cooperative, Inc. (ZANECO),
Zamboanga del Sur I Electric Cooperative, Inc. (ZAMSURECO I),
Zamboanga del Sur II Electric Cooperative, Inc. (ZAMSURECO
II), Misamis Occidental I Electric Cooperative, Inc. (MOELCI I),
Siargao Electric Cooperative, Inc. (SIARELCO), Bukidnon
Second Electric Cooperative, Inc. (BUSECO), Surigao del Sur I
Electric Cooperative, Inc. (SURSECO I), Davao Light and Power
Co., Inc. (DLPC) and Cotabato Light and Power Co., Inc. (CLPC).
12The PEMC letter dated 28 April 2020 on the “Data on Load Weighted Average Price (LWAP) for
Luzon and Visayas” for the period 26 March 2017 to 25 March 2020 including its attachment are
hereto attached as Annexes “G” to “G-1” to form an integral part hereof.
PAGE 12 OF 28
Where data were not available/incomplete, TransCo used the

2019 actual average ACRR for Mindanao FIT-eligible RE
generators already billing.
Given below is the summary list of the (potential) Host DUs

together with the 12-month average of their weighted average
generation cost which will be used as FCRR.13
51. Multiplying the forecast eligible RE Generation summarized in

Table 4 by the appropriate FCRRs (done on a per plant and per
month basis), the following total Forecast Cost Recovery
Revenue in pesos were derived:
Similarly, as for the FIT rates, the 2021 FCRRs were adopted for
2022 since these are merely intended for the determination of
the WCA, a buffer fund, as discussed below.
13Printouts of the 12 months Weighted Average Generation Rates of Host DUs are hereto attached
as follows: Annex “H” – Weighted Average Generation Rate for Mindanao Host DUs based on FIT-
All Fund Administration Database; Annex “H-1” to “H-17” – Weighted Average Generation Rate
from RE Plant Host Distribution Utilities and Annex “H-18”-Average Generation Rate of Mindanao
Host DUs in 2019.
PAGE 13 OF 28
52. 2020 FIT Differential (Over) Under-recoveries. The last term in

the formula for FIT Differential is the amount of under-recovery
or over-recovery of the FIT Differential. For this Application,
TransCo has determined that only the required bank maintaining
balance of the FIT Differential sub-account will be left by the end
of 2020 billing period amounting to PhP700.0014. This is
assuming there is no change in the prevailing FIT-All rate within
the year and assuming the market prices for June 2020 to
December 2020 are at the level of CRR rates presented in Table
6.
53. FIT Differential for 2015-2020 generation charged to 2021 FIT-

All Rate. This pertains to energy generation for years 2015 to
2020 that are expected to be billed to TransCo in 2021. Section
4.5 of the REPA provides that the Eligible RE Developer shall
only start billing TransCo for FIT Differential upon the REPA’s
effectivity. Where months have lapsed from the Commercial
Operation Date (COD) until the Effective Date of REPA, the
Actual FIT Differential shall be billed to TransCo over the
number of months lapsed from COD to REPA Effective Date.
54. It is estimated that total FIT Differential for 2015, 2016, 2017,
2018, 2019 and 2020 generation, amounting to
PhP113,932,987.66 PhP340,556,132.26, PhP70,296,337.88,
PhP62,813,311.87, PhP181,380,869.47 and PhP809,152,559.41,
respectively, will be due in 2021.15
55. Provision for FIT Differential Adjustments. Section 10 of the FIT

Rules provides that there shall be an annual adjustment on the
FIT Rates to account for local inflation (CPI) and foreign
exchange (forex) changes. Based on the ERC issued Resolution
No. 6 Series of 2020 on the approval of RE Developers’ adjusted
FITs, the recovery of the FIT incremental adjustments of the FIT
Eligible RE Developers shall be for a period of five (5) years.
Accordingly, TransCo assumed the following FIT Rate
Adjustments billing schedule pending ERC’s reply to TransCo
clarification letter dated 08 July 202016:
Table 9. Billing Schedule of FIT Rate Adjustments

Rate Adjustment
Billing Year
Year
2016 Aug 2020-Jul 2021
2017 Aug 2021-Jul 2022
2018 Aug 2022-Jul 2023
2019 Aug 2023-Jul 2024
2020 Aug 2024-Jul 2025
14Table showing the details of computation of the 2020 FIT Differential (Over) Under-Recovery is
hereto attached as Annex “I” and made an integral part hereof.
15Summary of FIT Differential charged to 2020 and 2021 is shown as Annex “J” to form an integral
part hereof.
16 Copy of TransCo clarification letter on the Implementation of ERC Resolution No. 6 Series of
2020 is hereto attached as Annex “F-3”.

PAGE 14 OF 28
Based on the above schedule, TransCo computed the 2021 and

2022 estimated 2016 and 2017 FIT Adjustment to be
PhP273,171,149.58 and PhP799,364,511.09, respectively. The
2022 levels are shown only for the purpose of computing the
WCA.
56. FIT Differential. Following the formula for FD in Paragraph 29

(first two terms), the total Forecast Cost Recovery Revenue in
Table 8 is subtracted from the corresponding FIT Revenue in
Table 5, on a per plant basis, and yields the following summary
for 2012-2022:
Again, the 2022 levels are shown only for the purpose of
computing the WCA which is discussed below.
57. The final estimated FIT Differential for 2021 in PhP/kWh,

inclusive of the effect of the over-recovery for 2020, the accrued
FIT Differential for 2015-2020 generation charged to 2021, plus
the provision of FIT Rate Adjustments is as follows:
58. It is worthy to note that the average effective ACRR from January
2020 to May 2020 billing months as derived from the FIT-All
Fund database is much lower than the FCRR in the 2020 FIT-All
application following the formula in the FIT-All Guidelines. If
this ACRR rate will continue until the December 2020 billing
month, additional FIT Differential requirement will be needed.
PAGE 15 OF 28
Table 12. Effective ACRR Rate vs FCRR Rate used

in the 2020 FIT-Application
2020
(Jan to May 2020 Billing)
Technology
Effective Rate, FCRR as Filed*,
PhP/kWh PhP/kWh
Wind
Luzon 2.1480 3.0161
Visayas 2.3101 3.1108
Solar
Luzon 2.2207 3.0161
Visayas 2.1112 3.1108
Mindanao 6.4167 5.7172
Biomass
Luzon 2.3652 3.0161
Visayas 2.3810 3.1108
Mindanao 5.3453 5.6324
Hydro
Luzon 2.6311 3.0161
Visayas 2.5511 3.1108
Mindanao 5.2656 5.2875
*based on 2020 FIT-All Application
III. Working Capital Allowance
59. The WCA is part of the FIT-All and serves as buffer to address
any default or delay in the collection and/or remittance of the
FIT-All and/or Actual Cost Recovery Revenue including, but not
limited to, the following:
i. Variations between the actual and forecasted (a) RE

Generation from Eligible RE Plants resulting from over-
and under- generation, (b) Annual National Sales and (c)
applicable Forecast Cost Recovery Rates and Actual Cost
Recovery Revenues;
ii. The timing difference of the collection and billing cycle for
the FIT-All and Actual Cost Recovery Revenue; and,
iii. Any other collection or payment shortfall.
60. The WCA amount for collection is expressed as:
Where:
WCAt+1 Is the Working Capital Allowance to be funded

during Yeart+1
Forecast Is the projected amount of payables out of the
Annual FIT-All Fund for yeart+2 consisting of
Payout t+2 forecasted Total FIT Revenues, forecasted
PAGE 16 OF 28
Administration Allowance and forecasted

Disbursement Allowance for Yeart+2. The
forecasted Total FIT Revenues for Yeart+2is the
sum of the product of the Forecast RE
Generation of Eligible RE Plantx for Yeart+2
multiplied by the appropriate FIT Ratex for
Year t+2. The forecasted Administration
Allowance for Yeart+2is the Administration
Allowance for Yeart+1, less any non-recurring
expenditures such as those relating to the
initial filing of the FIT-All, adjusted for
forecast CPI for Yeart+2. The forecasted
Disbursement Allowance for Yeart+2 is the
projected level of payment to the Trustee Bank
in Yeart+2.
WCA Ending Is the ending balance of the Working Capital

Balance t Allowance account in Yeart including any
interest income earned in the WCA account
and all other component accounts of the FIT-
All Fund; if this is not available at the time of
filing, the ending balance for the month
immediately preceding the month of filing,
subject to updating by the ERC of the actual
ending balance of the WCA account in Yeart if
it shall become available prior to the issuance
of its Decision on the FIT-All application.
Factor Rate Is the factor rate approved by the ERC, upon
recommendation of the NREB, reflective of
funding requirements of the FIT-All Fund,
adjusted by (i) a period factor based on the
billing and collection cycle of the Collection
Agents as described in the Guidelines; and (ii)
the collection efficiencies of Collection Agents.
Data for the initial year shall be sourced from
PSALM for its collection of the Universal
Charge. Data for succeeding years shall be
based on FIT-All historical collection
efficiency rate.
61. From the foregoing, it may be gleaned that an initial Forecast

Annual Payout for the year 2022 needs to be determined since it
is envisioned that buffer requirements for the following year
should be collected and built up during the current year. Hence,
aside from the 2021 levels for Forecast Cost Recovery Revenue,
FIT Differential, Administration Allowance and Disbursement
Allowance, the 2022 projected levels thereof were also
established.
62. For the purpose of computing the WCA, the FCRRs used by
TransCo for 2022 were set at the same level as the 2021. The
same holds for the FIT Rates.
63. Summarizing Table 8 and Table 10, we have the following inputs
in computing the Forecast Annual Payout for 2022:
PAGE 17 OF 28
Table 13. 2022 Forecast Cost Recovery Revenue

and FIT Differential, In Mn PhP
Forecast Cost
FIT
Technology Recovery
Differential
Revenue
Biomass 6,434.73 4,701.02
Hydropower 5,132.04 1,877.78
Solar 2,981.90 4,635.84
Wind 4,375.29 5,686.49
Total 18,923.97 16,901.13
64. In addition, FIT Differential back-billings for 2016, 2017, 2018,

2019 and 2020 generation amounting to PhP111,347,790.80,
PhP299,955,444.60, PhP23,220,364.13, PhP18,445,376.59 and
PhP19,062,945.37 respectively, are estimated to be billed in 2022
pursuant to Section 4.5 of the REPA. (See Annex “J”)
65. As discussed in paragraph 55, TransCo also included a provision

for 2017 FIT Adjustment amounting to PhP799,364,511.09, for
the purpose of computing the WCA.
66. The projected AA for 2022 is estimated to be PhP11,947,778.9917.
67. For simplicity, the estimated trustee fee/ Disbursement

Allowance for 2022 is set at the 2021 level of Php2,019,568.73 as
stated in Paragraph 79.
68. Combining the results and assumptions given in Paragraphs 63

to 67, the Forecast Annual Payout for 2022 is as follows:
Table 14. 2022 Forecast Annual Payout, In Mn PhP

Particulars Amount
Forecast Cost Recovery Revenue 18,923.97
FIT Differential 17,373.16
Administration Allowance 11.95
Disbursement Allowance 2.02
Provision of FIT Rate Adjustments 799.36
Forecast Annual Payout 37,110.46
69. The Guidelines then provide for the use of a Factor Rate that will
be multiplied to the Forecast Annual Payout for 2022.
70. Pursuant to the Guidelines, the NREB recommended a formula

for the Factor Rate in the 2014-2015 FIT-All Application. Using
the same formula for this Application but with updated inputs, a
factor rate of 9.3300%18 was derived.
71. Further, the Guidelines define the WCA Ending Balance to be the
balance of the WCA component account for the immediately
preceding month prior to the month of filing. However, TransCo
17Document showing the 2021 and 2022 FIT-All Administration Allowance is hereto attached as
Annex “M” to form integral part hereof.
182021 Factor Rate computation using the formula recommended by NREB in its Resolution No. 3
Series of 2014 is attached hereto as Annex “K” to form an integral part hereof.
PAGE 18 OF 28
deemed it best to project the level up to year-end 2020 for a more

realistic determination.
72. For 2020, the WCA is projected to have an ending balance

amounting to PhP1,042,273,743.4219 assuming the current
approved FIT-All Rate of PhP0.0495/kWh will prevail until the
end of the year. This will reduce the 2022 WCA requirement by
PhP0.0109/kWh.
73. From the given information, the combined buffer required for
2021, which is equivalent to the 2022 fund requirement
multiplied by the Factor Rate, less the WCA ending balance, is
PhP2,420,118,687.64 derived as follows:
74. The table above shows the derived PhP/kWh level of the WCA for
2021, which is PhP0.0253/kWh.
IV. Administration and Disbursement Allowance
75. As provided for in Section 2.5 of the FIT Rules, the FIT- All shall
also take into account the Applicant’s administration costs to
defray expenses of the Administrator in connection with the
performance of its functions as FIT-All Fund Administrator
(Administration Allowance).
76. For the year 2021, TransCo proposes an Administration

Allowance of PhP11,988,132.77as shown in Annex “M”.
77. A similar fee may be imposed by the designated Trustee of the

FIT All Fund in accordance with the Trust Agreement approved
by the ERC to defray standard administrative costs in
establishing and managing the actual collection and
disbursements of the FIT-All Fund and all other monetary
collections authorized by the FIT Rules (Disbursement
Allowance).
78. From the Trust Agreement entered into by Land Bank of the
Philippines (LBP)-Trust Group and TransCo on 03 March 201520
and subsequently approved by the ERC, TransCo shall pay a fixed
fee of PhP720,000 per annum plus some variable components.
19Document showing the WCA Ending Balance is hereto attached as Annex “L” to form integral
part hereof.
20Copy of the Trust Agreement dated 03 March 2015 is hereto attached as Annex “N” to “N-23” and
made an integral part hereof. Also appended as Annex “N-24” is the list of additional Collection
Agents from the time the Trust Agreement was executed to present.
PAGE 19 OF 28
79. Based on TransCo’s estimates of fund balance which will be the

major basis of the variable component that is the Bangko Sentral
ng Pilipinas Supervision Fee, the Disbursement Allowance or the
service fee of LBP for 2021 is PhP2,019,568.7321.
V. FIT-ALL RATE FOR 2021

FNS USING THE FORMULA IN THE FIT-ALL GUIDELINES
80. Applying the above components to the formula for FIT-All, the
FIT-All rate for 2021 in PhP/kWh is:
= 0.1958 + 0.0253 + 0.0001 + 0.00002

= 0.2212
81. More details on the components and result of the FIT-All

calculation are presented in the following table:
Table 16. Summary of 2021 FIT-All Rate Computation

COMPONENTS AMOUNT (Php) RATE (P/kWh) SHARE (%)
FIT DIFFERENTIAL 18,725,815,370 0.1958 88.50%
2021 FIT Differential-2021 Gen 16,874,512,721.87 0.1764 79.75%
2021 FIT Differential-2020 Gen 809,152,559.41 0.0085 3.82%
2021 FIT Differential-2014-2015 Gen 113,932,987.66 0.0012 0.54%
2020 Under (Over) Recovery (700.00) (0.0000) 0.00%
Provision for FIT Rate Adjustment 273,171,149.58 0.0029 1.29%
WORKING CAPITAL ALLOWANCE 2,420,118,687.64 0.0253 11.44%
ADMINISTRATION ALLOWANCE 11,988,132.77 0.0001 0.06%
DISBURSEMENT ALLOWANCE 2,019,568.73 0.00002 0.01%
Total 21,159,941,759.15
FNS, kWh 95,642,839,642.49 0.2212
FIT-All, Php/kWh
VI. ALTERNATIVE FIT-ALL RATE FOR 2021

TO ACCOUNT FOR THE IMPACT OF THE COVID-19
PANDEMIC
82. On the other hand, the 2021 FIT-All under the COVID-19 FNS
scenario will be as follows:
(This space is intentionally left blank.)
21Details
of the 2021 Projected LBP Service Fee computation is hereto attached as Annex “O” and
made an integral part hereof.
PAGE 20 OF 28
Table 17. Summary of 2021 FIT-All Rate Computation

COMPONENTS AMOUNT (Php) RATE (P/kWh) SHARE (%)
FIT DIFFERENTIAL 18,725,815,370 0.2058 87.35%
2021 FIT Differential-2021 Gen 16,874,512,721.87 0.1855 78.71%
2021 FIT Differential-2014-2015 Gen 113,932,987.66 0.0013 0.53%
2020 Under (Over) Recovery (700.00) (0.0000) 0.00%
Provision for FD Adjustment 273,171,149.58 0.0030 1.27%
WORKING CAPITAL ALLOWANCE 2,697,792,796.89 0.0296 12.58%
ADMINISTRATION ALLOWANCE 11,988,132.77 0.0001 0.06%
DISBURSEMENT ALLOWANCE 2,019,568.73 0.00002 0.01%
Total 21,437,615,868.40
FNS, kWh 90,991,584,020.00 0.2356
FIT-All, Php/kWh
83. For presentation purposes, TransCo categorized the FIT-

eligible/projected FIT-eligible projects, with cut-off as of July 6,
2020, as: 1) those with billing as of July 6, 2020 Payment Date
and thus are already FIT-Eligible; 2) those with Certificate of
Endorsement for FIT eligibility from the DOE; 3) those which
have been nominated for FIT eligibility by the DOE, i.e., project
has attained 80% electromechanical completion; and, 4) all the
other potential FIT Eligible RE plants in the DOE List. The FIT-
All for each category was computed using the formula and
methodology as discussed earlier and the results are shown
under the two scenarios of the FNS:
Table18. Incremental Movement of the 2021 FIT-All for Different

RE Plant/Project Categories under different FNS Scenario (as of
July 6, 2020)
With Billings With COE With Nomination DOE List

As of July 6,
Increase/ Increase/ Increase/
2020 Total Total Total
(Decrease) (Decrease) (Decrease)
MW 1,136 208 1,344 59 1,402 82 1,484
MWH 2,964,631 854,125 3,818,756 375,826 4,194,582 315,195 4,509,777
- - -
1. FIT-ALL Rate, P/kWh (FNS based on the formula in the FIT-All Guidelines)
FD 0.1187 0.0561 0.1748 0.0150 0.1898 0.0060 0.1958
2021 FD 0.1421 0.0360 0.1781 0.0117 0.1898 0.0060 0.1958
2020 Under Recovery (0.0234) 0.0201 (0.0033) 0.0033 (0.0000) 0.0000 (0.0000)
WCA 0.0074 0.0058 0.0132 0.0059 0.0191 0.0062 0.0253
AA 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001
DA 0.00002 0.0000 0.00002 0.0000 0.00002 0.0000 0.00002
FIT-ALL Rate, P/kWh 0.1263 0.0619 0.1881 0.0209 0.2090 0.0122 0.2212
2. FIT-ALL Rate, P/kWh (FNS at Covid 19 Scenario)

FIT-ALL Rate, P/kWh 0.1358 0.0650 0.2008 0.0220 0.2228 0.0128 0.2356
PAGE 21 OF 28
84. TransCo would like to limit its application to cover only the list
of RE projects with Certificate of Endorsement (COE) from the
DOE. This list already covers most of the potentially eligible
Biomass plants. The RE plants comprising the list of plants with
Nomination from the DOE are mostly hydro plants, and to date,
there is no finality regarding the policy for unsubscribed
capacities after the 2019 extension of FIT availment.
ALLEGATIONS IN SUPPORT OF THE PRAYER FOR

PROVISIONAL AUTHORITY
85. TransCo repleads the foregoing allegations in so far as they may

be applicable.
86. It is respectfully submitted that the computation of, as well as the

data used by, TransCo are all in accordance with the FIT Rules
and the Guidelines issued by the ERC.
87. On this basis, TransCo most respectfully moves for the

immediate issuance of a “Provisional Authority” pursuant to Rule
14, Section 322 of the ERC Rules of Practice and Procedures to
allow applicant TransCo to timely implement the FIT-All Rate of
PhP0.1881/kWh where the FNS was computed based on the FIT-
All Guidelines. Or alternatively, the FIT-All Rate of
PhP0.2008/kWh where the FNS is based on COVID-19 scenario,
effective January 2021, without prejudice to the final and actual
rate pending the final disposition of its present Application.
88. The grant of a Provisional Authority will allow TransCo to

perform its duties to make a timely payment of the FIT Rate to
RE Developers to which they are entitled, thereby allowing their
continued operations.
89. In support of the foregoing allegations in this Application,

including those for the issuance of the provisional authority,
TransCo hereby submits the Judicial Affidavit of Ms. Rogelyn T.
Ronquillo, Manager of TransCo’s Regulatory Affairs
Department.23
PRAYER
WHEREFORE, premises considered, it is most respectfully

prayed of this Honorable Commission that:
a. Pending hearing on the merits of the present Application,

provisional authority to collect the FIT-ALL of
PhP0.1881/kWh effective January 2021 billing period be
issued;
22“Section 3. Action on the Motion. - Motions for provisional authority or interim relief may be
acted upon with or without hearing. The Commission shall act on the motion on the basis of the
allegations of the application or petition and supporting documents and other evidences (sic) that
applicant or petitioner has submitted and the comments or opposition filed by any interested
person, if there be any.”
23A copy of the Judicial Affidavit of Ms. Rogelyn T. Ronquillo is attached hereto as Annex “Q” to
form an integral part hereof.

PAGE 22 OF 28
i. OR IN THE ALTERNATIVE, a FIT-All rate of

PhP0.2008/kWh based on a lower FNS to account for
the impact of the COVID-19 Pandemic to the
electricity consumption;
b. The Collection Agents for the FIT-All – DUs, RES, and

NGCP, be directed to bill, collect and remit the FIT-All to
the FIT-All Fund as provided in the FIT-All Guidelines;
c. PEMC/IEMOP24 and the Host DUs be directed to remit the

ACRR to the FIT-All Fund as provided in the FIT-All
Guidelines;
d. The Factor Rate resulting from an updating of inputs in the

recommended formula by the NREB under the 2014-2015
FIT-All Application (ERC Case No. 2014-109RC) be
approved and applied in the computation of the WCA and
correspondingly the FIT-All Rate for 2020;
e. After due notice and hearing, a FIT-All Rate of

PhP0.1881/kWh for 2021 be approved;
e.1. OR IN THE ALTERNATIVE, a FIT-All Rate of

PhP0.2008/kWh for 2021 to account for the impact of
the COVID-19 pandemic on electricity consumption
be approved;
e.2. OR IN THE ALTERNATIVE, after due notice and

hearing, a FIT-All Rate for 2021 based on new
evidence presented at the trial but not available to the
Applicant at the time of the filing of the present
application be approved; and
f. TransCo be exempt from payment of permit/supervision

fees, if any.
Other reliefs as may be just and equitable under the premises are
likewise most respectfully prayed for.
Subsequently, the Commission, in its Order dated 07 September

2020, reiterated its directives during the pre-filing conference held on
29 July 2020 for TRANSCO to submit the following pre-filing
requirements:
1. Affidavit of Service attesting that the Sangguniang

Panlungsod of Quezon City has been served a copy of the
Application;
24The PEMC Manifestation to ERC dated 25 April 2019 to allow the Independent Electricity Market
Operator of the Philippines Inc. (IEMOP) to collect and remit the WESM proceeds of the FIT-
Eligible RE Plants as part of the market operations function is hereto attached as Annex “P” to form
an integral part hereof.
PAGE 23 OF 28
2. Complete copy of the 23 July 2020 issue of the Daily

Tribune where the Application has been published;
3. One (1) set of hard copy of the Application with all the
annexes; and
4. One (1) set of soft copy of the Application with all the
annexes contained in a USB flash drive.
On even date, TRANSCO filed its Compliance dated 30 July 2020

and attached therewith the foregoing documents.
Finding the said Application to be sufficient in form with the

required fees having been paid, the Commission hereby sets the same
for determination of compliance with the jurisdictional requirements,
expository presentation, Pre-trial Conference, and presentation of
evidence on the following dates and online platforms for the conduct
thereof, pursuant to Resolution No. 07, Series 0f 202025 dated 23 July
2020:
Date Platform Activity

Determination of
06 January 2021
jurisdictional
(Wednesday) at nine Microsoft
compliance and
o’clock in the morning Teams
expository presentation
(9:00 A.M.)
for Luzon stakeholders
13 January 2021
Expository
presentation for
Visayas stakeholders
(9:00 A.M.)
20 January 2021
Expository
presentation for
Mindanao stakeholders
(9:00 A.M.)
29 January 2021 Pre-trial Conference
Microsoft
(Friday), at nine o’clock in and Presentation of
Teams
the morning (9:00 A.M.) Evidence
04 February 2021
Microsoft Presentation of
(Thursday), at nine o’clock
Teams Evidence
in the morning (9:00 A.M.)
25A Resolution for the Transitory Implementation of Legal e-Processes Pending the Adoption of
the Interim Guidelines Governing Electronic Application, Filings, and Virtual Hearings Before the
Energy Regulatory Commission.
PAGE 24 OF 28
RELATIVE THERETO, TRANSCO is hereby directed to:
1) Cause the publication of the attached Notice of Virtual

Hearing in two (2) newspapers of nationwide circulation in
the Philippines at its own expense, twice (2x) within two (2)
successive weeks, the dates of publication not being less than
seven (7) days apart and the date of the last publication to be
made not later than ten (10) days before the date of the
scheduled initial virtual hearing;
2) Furnish with copies of this Order and the attached Notice of

Virtual Hearing the Offices of the Mayors of Quezon City,
Cebu City, and Davao City and their respective Local
Government Unit (LGU) legislative bodies for the
appropriate posting thereof on their respective bulletin
boards;
3) Inform the consumers within the affected area of the filing

of the Application, its reasons therefor, and of the scheduled
hearings thereon, by any other means available and
appropriate;
4) Furnish with copies of this Order and the attached Notice of

Virtual Hearing, the Office of the Solicitor General (OSG),
the Commission on Audit (COA), and the Committees on
Energy of both Houses of Congress. They are hereby
requested, if they so desire to send their duly authorized
representatives at the scheduled hearings; and
5) Furnish with copies of the Application and its attachments

all those making requests therefor, subject to
reimbursement of reasonable photocopying costs.
Within five (5) calendar days prior to the date of the virtual
hearing, TRANSCO must submit to the Commission via electronic mail
(e-mail) at records@erc.gov.ph and records.erc.gov.ph@gmail.com,
copy furnish the Legal Service through legal.erc.gov.ph@gmail.com,
the scanned copies of their written compliance with the
aforementioned jurisdictional requirements attaching therewith,
methodically arranged and duly marked the following:
1) The evidence of publication of the attached Notice of

Virtual Hearing consisting of affidavits of the Editor or
Business Manager of the newspapers where the said Notice
PAGE 25 OF 28
of Virtual Hearing was published, and the complete issues

of the said newspaper;
2) The evidence of actual posting of this Order and the

attached Notice of Virtual Hearing consisting of
certifications issued to that effect, signed by the
aforementioned Mayors and LGU legislative bodies or
their duly authorized representatives, bearing the seals of
their offices;
3) The evidence of other means employed by TRANSCO to

inform the consumers affected of the filing of the
Application, its reasons therefor, and of the scheduled
hearings thereon;
4) The evidence of receipt of copies of this Order and the

attached Notice of Virtual Hearing by the OSG, COA, and
the Committees on Energy of both Houses of Congress;
5) The evidence of receipt of copies of the Application and its

attachments by all those making requests therefor, if any;
and
6) Such other proofs of compliance with the requirements of

the Commission.
Moreover, TRANSCO is hereby required to post on its bulletin

boards, the scanned copies of the foregoing jurisdictional
requirements, together with the newspaper publication and
certifications issued by the concerned Office of the Mayors and Local
Legislative Bodies, and to submit proof of its posting thereof.
TRANSCO and all interested parties are also required to submit

via e-mail at records@erc.gov.ph and records.erc.gov.ph@gmail.com,
copy furnish the Legal Service through legal.erc.gov.ph@gmail.com, at
least five (5) calendar days before the date of the scheduled virtual
hearing and Pre-trial Conference, their respective Pre-Trial Briefs
containing, among others:
1) A summary of admitted facts and proposed stipulation of

facts;
2) The issues to be tried or resolved;

PAGE 26 OF 28
3) The documents or exhibits to be presented, stating the

purposes and proposed markings therefor, which should also
be attached to the Pre-trial Brief; and
4) The number and names of the witnesses, with their written

testimonies in a Judicial Affidavit form attached to the Pre-
trial Brief.
TRANSCO must ensure that all the documents or exhibits

proposed to be presented have already been duly submitted to the
Commission at least five (5) calendar days before the date of the
scheduled initial virtual hearing and Pre-trial Conference pursuant to
the preceding paragraph.
Failure of TRANSCO to comply with the above requirements

within the prescribed period shall be a ground for cancellation of the
scheduled hearing, and the resetting of which shall be six (6) months
from the said date of cancellation.
TRANSCO must also be prepared to make an expository

presentation of the instant Application, aided by whatever
communication medium that it may deem appropriate for the purpose,
in order to put in plain words and explain, for the benefit of the
consumers and other concerned parties, the nature of the Application
with relevant information and pertinent details substantiating the
reasons and justifications being cited in support thereof.
TRANSCO is hereby directed to file a copy of its Expository

Presentation via e-mail at records@erc.gov.ph and
records.erc.gov.ph@gmail.com, copy furnish the Legal Service through
legal.erc.gov.ph@gmail.com, at least five (5) calendar days prior to the
scheduled virtual hearing. TRANSCO shall also be required, upon the
request of any stakeholder, to provide an advance copy of its expository
presentation, at least five (5) calendar days prior to the scheduled
virtual hearing.
Any interested stakeholder may submit its comments and/or

clarifications at least one (1) calendar day prior to the scheduled virtual
hearing, via e-mail at records@erc.gov.ph and
records.erc.gov.ph@gmail.com, copy furnish the Legal Service through
legal.erc.gov.ph@gmail.com. The Commission shall give priority to the
stakeholders who have duly submitted their respective comments
and/or clarifications, to discuss the same and propound questions
during the course of the expository presentation.
PAGE 27 OF 28
TRANSCO is hereby directed to submit, either through personal

service, registered or ordinary mail/private courier, one (1) set of the
original or certified true hard/printed copy/ies of their Jurisdictional
Compliance, Expository Presentation, Pre-trial Brief, and Judicial
Affidavit/s of witness/es, within five (5) working days from the date
that the same were electronically submitted, as reflected in the
acknowledgment receipt e-mail sent by the Commission. Similarly, all
interested parties who filed their Petition for Intervention or
Opposition are required to submit the hard/printed copy thereof
within the same period through any of the available modes of service.
Finally, Applicant, including their authorized representative/s

and witness/es, are hereby directed to provide the Commission, thru
legal.virtualhearings.erc.gov.ph@gmail.com, with their respective e-
mail addresses upon receipt of this Order. The Commission will send
the access link/s to the aforementioned hearing platform within five
(5) working days prior to the scheduled hearing.
SO ORDERED.
Pasig City, 16 November 2020.
FOR AND BY AUTHORITY

OF THE COMMISSION:
AGNES VST DEVANADERA

Chairperson and CEO
LS: MVM/LSP/MCCG
PAGE 28 OF 28
Copy Furnished:
1. Attys. Noel Z. De Leon, Leon T. Tapel, Jr., Donna L. Caaloza-Aleria and Anne Rose
R. De Guia
Counsel for Applicant TRANSCO
Office of the General Counsel
TRANSCO Main Building, Quezon Avenue corner BIR Road
Diliman, Quezon City
OVP-Legal@transco.ph
annerosedeguia@yahoo.com
2. The Office of the Solicitor General

234 Amorsolo Street, Legaspi Village, Makati City
Metro Manila
3. The Commission on Audit

Don Mariano Marcos Avenue
Diliman, Quezon City, Metro Manila
4. The Committee on Energy

Senate of the Philippines
GSIS Building, Roxas Blvd., Pasay City, Metro Manila
5. The Committee on Energy

House of Representatives
Batasan Hills, Quezon City, Metro Manila
6. Philippine Chamber of Commerce and Industry (PCCI)

3rd Floor, Chamber and Industry Plaza (CIP)
1030 Campus Avenue corner Park Avenue
McKinley Town Center, Fort Bonifacio, Taguig City
7. Office of the City Mayor

Quezon City
8. Office of the LGU Legislative Body

Quezon City

Cebu City

Cebu City

Davao City

Davao City
13. Market Operations Service (MOS)

Energy Regulatory Commission
10F Pacific Center Building, San Miguel Ave., Pasig City

For+Posting+624+-+TRANSCO 2021FIT-ALL IO 2020-020+RC.10.17.20.V1.1.MVM - LSP Revised+hearing+dates+v2 Final.11+ (SGD)

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Republic of the Philippines Digitally signed by Heiddi

ENERGY REGULATORY COMMISSION Venecia R. Barrozo

San Miguel Avenue, Pasig City

IN THE MATTER OF THE

ERC CASE NO. 2020-020 RC

On 04 August 2020, the National Transmission Corporation

The pertinent portions of the said Application are hereunder

1. TransCo is a government instrumentality created pursuant to

NATURE OF THE APPLICATION

2. This Application is being filed by Applicant TransCo in its

3. On 16 December 2008, R.A. No. 9513 entitled “An Act Promoting

4. To achieve these state policies, Section 7 of the RE Law mandates

5. On 12 July 2010, the ERC, in consultation with the National

1 See Section 5, RE Law IRR.

recommended by the NREB. Accordingly, on 27 July 2012, the

8. On 27 March 2015, the ERC issued Resolution No. 06, series of

9. On 06 October 2015, the ERC likewise issued Resolution No. 14,

10. On 24 January 2017, the ERC issued Resolution No. 1, series of

11. Further, through a letter dated 23 February 2018, the DOE

12. Subsequently, in a letter dated 26 March 2018, the ERC directed

13. On 24 June 2020, TransCo wrote a letter to DOE clarifying the

subscription of the installation target. The DOE has yet to

14. On 26 May 2020 the Commission issued Resolution No.6 Series

15. The FIT-All, on the other hand, is a uniform charge (in

17. The imposition, collection, and disbursement of the FIT-All is

18. Under the FIT-All Guidelines, TransCo has to make an annual

This space is intentionally left blank.

3 Section 2.5, FIT Rules.

20. Therefore, by and pursuant to the RE Law and Resolution No. 16

FEED-IN TARIFF ALLOWANCE FOR 2021

21. TransCo has computed a FIT-All Rate of PhP0.2212/kWh for

FNS is the Forecast National Sales, in kWh, to be applied

22. Whenever Yeart+1 (implementation year) is used in any formula

COMPONENTS OF THE FIT-ALL

I. Forecast National Sales

23. The Forecast National Sales (FNS) is the denominator in the

24. The FNS refers to an estimated total kilowatt-hour of electricity

27. TransCo computed the projected 2020 level by increasing the

2021 level. TransCo came up with the following Forecast

Table 1. Forecast National Sales, kWh

This method in forecasting the FNS is consistent with the FIT-All

28. TransCo is aware that with the present COVID-19 pandemic, it is

Table 2. Forecast National Sales, kWh

II. Total FIT Differential

attached hereto as Annex “B-1” to for an integral part hereof.

Plantx is forecasted to receive for each kWh

30. Alternatively, the formula in Paragraph 26 can be viewed or

II.1. Forecast Annual Renewable Energy Generation

33. For Wind and Solar FIT-Eligible RE Developers already billing

34. For Biomass and Run-of-River Hydropower plants already

be too high compared to the actual levels in 2019. For some

35. With the extension of the availment of the FIT for

36. TransCo limited the determination of the FIT-All rate to include

37. For Solar and Biomass plants, TransCo considered capacities

38. Based on the foregoing, the applicable Forecast Annual

Table 3. Forecast Annual Renewable Energy Generation, GWh

II.2. Forecast Applicable FIT Rate and Forecast FIT Revenue

39. Forecast Applicable FIT Rate refers to the prevailing ERC-

40. TransCo adopted the assumptions and manner by which the

Table 4. Adjusted FIT Rates for 2021, PhP/kWh

42. The Total FIT Revenue appearing in the formula in Paragraph 30

Table 5. Total FIT Revenue by Technology, In Mn PhP