The Energy Regulatory Commission (ERC) has approved Occidental Mindoro Consolidated Power Corporation’s (OMCPC) request to develop and own dedicated transmission facilities connecting its 7.4-megawatt peak (MWp) solar power plant with battery energy storage system (BESS) and its 8.3-megawatt diesel power plant to the Mindoro small grid, but denied the company authority to operate and maintain the facilities.

In a decision promulgated on January 9, 2026, the ERC authorized OMCPC to develop and own point-to-point limited transmission facilities linking its power plants in San Jose, Occidental Mindoro to the National Power Corporation’s (NPC) 69-kilovolt Mamburao–San Jose line via OMCPC’s 13.8-kV Bunker Power Station.

“The prayer for the authority of OMCPC to develop and own the subject facilities… is approved, subject to the conditions herein provided,” the Commission said in its ruling.

The ERC ruled that the operation and maintenance of the facilities must be undertaken by NPC or the National Transmission Corporation (TRANSCO), citing their mandate in missionary electrification areas.  

The ruling supports the continued commercial operation of OMCPC’s hybrid solar-diesel project, which supplies power to Occidental Mindoro Electric Cooperative, Inc. (OMECO) under a power supply agreement procured through competitive selection. The ERC noted that the development of the transmission facilities is necessary for OMCPC to keep its plants connected to the grid and continue supplying power.

At the same time, the ERC ordered the immediate turnover to NPC/TRANSCO of a key component of the project—the cubicle-type gas insulated switchgear or common switching station—after finding that it is not a dedicated point-to-point facility but a transmission asset. “OMCPC should not be authorized to develop and own the said facilities,” the Commission said, ordering that ownership be transferred to NPC/TRANSCO.

The ERC pegged the actual project cost of the transmission facilities at PHP 44.5 million for regulatory purposes and directed OMCPC to pay PHP 333,773.82 in permit fees within 15 days of receipt of the decision.

The Commission also reiterated that if the facilities are later required for competitive purposes or used to connect other users, ownership must be transferred to NPC/TRANSCO as a contribution-in-aid of construction, with safeguards to prevent double recovery of costs through power rates.

How do you see this decision affecting private investment in hybrid and renewable projects in small-grid and off-grid areas? Join the discussion.

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