2019 FEED-IN TARIFF ALLOWANCE RATE APPLICATION · 2019 FEED-IN TARIFF ... EXPOSITORY PRESENTATION...

2019 FEED-IN TARIFF ALLOWANCE RATE APPLICATION

ERC Case No. 2018-085 RC EXPOSITORY PRESENTATION

ERC-Davao City October 2, 2018

DINNA O. DIZON Manager, Compliance Monitoring Department

and Head, FIT-All Team

OUTLINE OF PRESENTATION

I. Background

II. FIT-All Rate 2019 Determination

III. Updated Calculation

2

I. BACKGROUND

3

RENEWABLE ENERGY ACT OF 2008 (RA 9513)

Encourages the development of renewable

energy resources in the country

• Minimize the country’s exposure to price

fluctuations in the international markets

• As tools to effectively prevent or reduce harmful

emissions and thereby balance the goals of

economic growth and developments with the

protection of health and the environment

4

FIT SYSTEM

PURPOSE: To accelerate development of emerging RE resources through a fixed tariff mechanism

PROMULGATION OF RULES AND MECHANISMS: Energy Regulatory Commission (ERC) in consultation with the National Renewable Energy Board (NREB)

5

FIT Coverage: Emerging RE Resources

6

MECHANICS AND GUIDELINES

1. FIT Rules (ERC Resolution No. 16 series of 2010 and

later amended through ERC Resolution No. 15 series of

2012)

2. FIT-All Guidelines (Guidelines on the Collection of the

Feed-in Tariff Allowance (FIT-All) and the Disbursement

of the FIT-All Fund – ERC Resolution No. 24 series of

2013)

3. RE Payment Agreement (REPA)/RE Supply

Agreement (RESA) Template (ERC Resolution No. 18

series of 2014)

7

APPROVED FIT RATES (2012) – Applicable for 20 years

Note: Setting of FIT for Ocean technology has been deferred by the ERC

Biomass P6.63/kWh (250MW) P6.5969/kWh (degressed rate)

Solar P9.68/kWh (50MW)-P1 P8.69/kWh (450MW) P2

Run-of-River Hydro P5.90/kWh (250MW)

P5.8705/kWh (degressed rate) Wind P8.53/kWh (200MW) P7.40/kWh (200MW)

8

-

2.0000

4.0000

6.0000

8.0000

10.0000

Hydro Wind Solar Biomass

5.90 8.53 9.68 6.63

3.3506 3.3506 3.3506 3.3506

2.5494

5.1794

6.3294

3.2794 P/k

Wh

Fit Differential P/kWh

CRR/Market Rate P/kWh

FIT

ILLUSTRATION: Feed-in Tariff and the Market Rate

9

FEED IN TARIFF ALLOWANCE (FIT-ALL)

• Represents the difference between the FIT price

level and the prevailing/market prices (Cost

Recovery Rate or CRR), plus other components

• Will be charged to all end-users as a uniform P/kWh

charge

• Will be a separate line item in the power bill

10

1. TransCo has been tasked as FIT-All Fund Administrator by virtue of ERC Resolution No. 15 series of 2012 issued in November 2012

2. First FIT-All collection remitted to the FIT-All Fund on March 13, 2015 on the basis of Provisional Authority for the FIT-All of P0.0406/kWh

3. First payment to a FIT-eligible RE Developer made on May 5, 2015

QUICK FACTS

11

12

FIT-ALL RATE APPROVAL

YearRate as Applied,

P/kWhApproval Date

Provisional : P 0.0406/kWh January 2015 Billing Period

Final : P 0.0406/kWh December 10, 2015

Provisional : P 0.1240/kWh April 2016 Billing Period

Final : P 0.1830/kWhMay 9, 2017 (docketed

May 13, 2017)

No Provisional Authority

Issued -

Final : P 0.2563/kWhFeb 27, 2018 (docketed May 11,

2018) effective Jun2018 Billing

No Provisional Authority

Issued to Date -

For ERC Resolution-

2019 (filed on July 27,

2018)

0.2780 or the updated

amount at the time of

evaluation

2018 (filed August 29,

2017)



evaluation

2014-2015 (filed July

30, 2014)0.0406

2016 (filed

December 22, 2015)



evaluation

2017 (filed

December 1, 2016)



evaluation

FIT-ALL FUND ADMINISTRATION

SIGNED RENEWABLE ENERGY PAYMENT AGREEMENT (REPA)As of September 5, 2018

Number Capacity

(MW) Number

Capacity

(MW) 24 525.95 23 484.65

FIT 1: 9.68 7 108.90 6 67.60

FIT 2: 8.69 17 417.05 17 417.05

7 426.90 7 426.90

FIT 1: 8.53 3 249.90 3 249.90

FIT 2: 7.40 3 144.00 3 144.00

Bangui 1 & 2:

5.961 33.00 1 33.00

7 45.50 6 43.10

FIT 1: 5.9 5 34.60 5 34.60

Deg. Rate: 5.8705 2 10.90 1 8.50

19 138.13 16 131.63

FIT 1: 6.63 14 121.56 12 117.06

Deg.Rate: 6.5969 5 16.56 4 14.56

TOTAL 57 1,136.48 52 1086.28 1,400

BIOMASS 250

Installation

Target, MWTECHNOLOGY

FIT Rate

(P/kWh)

EFFECTIVE REPA*SIGNED REPA

SOLAR

WIND

500

400

250HYDRO

* - With FIT-COC and all other documentary requirements complied with; ready for payment/already being paid

13

RE GENERATION

14

Note: Data do not reflect energy generation in 2015/2016/2017/2018:

1) That have not actually been billed (one at a time billing of backlog per REPA)

2) Of potentially FIT-eligible RE Plants that have not been granted/have just been granted FIT COC to date but have earlier COD

2015 2016 20172018 (as of

Sept 5, PD)Total

Wind 426.90 763,120 952,836 1,074,849 675,210 3,466,014

Solar 484.65 102,079 571,791 660,721 414,770 1,749,361

Biomass 131.63 262,107 512,712 596,485 416,193 1,787,496

Hydro 43.10 76,273 94,887 125,761 75,392 372,313

Total 1086.28 1,203,578 2,132,226 2,457,816 1,581,565 7,375,184

TechnologyCapacity

(MW)

ACTUAL ENERGY GENERATION BILLED (MWH)

2015 2016 2017 2018

Actual 93.90% 93.75% 93.77%*

Per Application 89.36% 96.03% 94.71% 94.89%**

COLLECTION EFFICIENCY

15

FIT-ALL

2015 2016 2017 2018

Actual 99.02% 98.93% 98.87%*

Per Application 97.00% 99.27% 99.01% 98.85%**

COST RECOVERY REVENUE (CRR)

* - as of December 31, 2017 (Oct2017 Billing) ** -as of Feb 28, 2018 (Dec 2017 Billing)

FIT ALL FUND CASH FLOW, In Mn Php As of September 5, 2018

Note: Cash flows include both CRR and FIT-All

16

*Cash Inflows as of August 29, 2018

2015 2016 2017As of

September 5,

2018Total

Total Fund Cash Inflow 3,058.4 10,235.1 18,006.7 16,568.4 47,868.6

Total Fund Cash Outflow 2,738.0 10,106.7 17,641.3 17,382.1 47,868.2

Excess of Collection

over Disbursement320.4 128.4 365.3 (813.7) 0.5

Cash, Beg 320.4 448.8 814.2

Fund Balance 320.4 448.8 814.2 0.5 0.5

Wind 46%

Solar 23%

Biomass 18%

Hydro 3%

5%

3% 2%

0%

Wind 5%

Solar 3% Biomass

2%

Hydro 0%

STATUS OF PAYABLES As of September 5, 2018

UNPAID BALANCE Php 5,353.74Mn,

10.17%

PAYMENTS MADE* Php 47,268.45Mn,

89.83%

* - Does not include interest payment of PhP595.92Mn made as of date

Note: Payables include both CRR and FIT-All billed to the Fund 17

PAYMENT OF INTEREST, Php

Sec. 2.2.8 of the FIT-All Guidelines*

“The failure to promptly and/or fully pay the Actual FIT Revenue to any Eligible RE Plant for any Billing Period shall authorize the relevant Eligible RE Plant to charge the Administrator, upon the lapse of one Billing Period after the due date of the unpaid Actual FIT Revenue, monthly interests on all unpaid amounts based on a 91-day treasury bill rate plus 300 basis points until fully paid.”

* - also provided under Section 7.5 of the REPA

18

768,381,951.64

595,916,818.43

172,465,133.21

Accrued Interest Due as of August 31,

2018 based on Billed/ Unbilled

Actual Interest Billed/Paid as of

September 5, 2018 , Php

Unbilled Interest as of September 5,

2018

II. 2019 FIT-All Rate Determination

Note: Calculations made were based on actual billing data as of May 2018 Billing Month

19

Guidelines on the Collection of the Feed-in Tariff Allowance (FIT-All) and the Disbursement of the FIT-All Fund (“FIT-All Guidelines”) issued by the ERC

20

BASIS

ASSUMPTIONS/CONSIDERATIONS

21

a. For 2019 FIT Rates, degression and adjustments due to inflation and forex were considered (in accordance with the FIT Rules)

b. Degressed rates were assumed for biomass and hydro plants under the FIT extension

c. As a rule, projected generation forecast provided by RE generators were used, but if none, DOE forecasts were used; or, if RE projections were perceived to be too high, then DOE forecasts were used

d. Actual energy generation levels of operational RE Plants which were available were considered

ASSUMPTIONS/CONSIDERATIONS

22

e. 2018 estimated under-recoveries were included in the determination of the 2019 FIT-All

f. 2015-2018 Unbilled FIT Differential were included in the 2019 FIT-All computation in accordance with section 4.5 of the RE Payment Agreement (backlog billing)

g. NREB recommended formula for Factor Rate from the 2014-2015 FIT-All application was used in the computation of WCA, with updated input data

h. For the Annual Payout for 2020, the same FIT rates and cost recovery rates as 2019 were used

Note: Line-up of plants are for computation purposes only; does not automatically entitle listed plants to FIT/payment thereof

ADMINISTRATION ALLOWANCE

(AA)

FIT DIFFERENTIAL

(FD)

WORKING CAPITAL

ALLOWANCE (WCA)

FIT ALL RATE,

P/kWh

DISBURSEMENT ALLOWANCE

(DA)

FORECAST NATIONAL SALES

(FNS)

FIT All (𝑃 𝑘𝑊ℎ ) = FD +WCA + AA + DA

FNS

FIT-ALL FORMULA

23

2015 2016 2017 2018 2019

Luzon 49,904,475,000 54,621,664,000 57,393,123,000

Visayas 8,709,994,000 9,539,513,000 9,984,182,000

Mindanao 8,365,699,000 9,031,509,000 9,381,397,000

Sales, kWh 66,980,168,000 73,192,686,000 76,758,702,000 82,161,191,564 87,950,887,855

Growth Rate 4.20 5.94 7.04 7.05 6.31

ACTUAL ELECTRICITY SALES, kWh FORECAST ELECTRICITY SALES, kWh

𝐶𝐴𝐺𝑅𝑡𝑜,𝑡𝑛 = 𝑉𝑡𝑛𝑉𝑡𝑜

1𝑡𝑛−𝑡𝑜

− 1

FORECAST ANNUAL NATIONAL SALES, kWh

CAGR: Compounded Annual Growth Rate

Note: Data on Actual Electricity Sales sourced from DOE; net of SPUG areas

24

FIT DIFFERENTIAL

TOTAL FIT REVENUE

( Forecast Annual RE Generation x

FIT Rate

FORECAST COST RECOVERY REVENUE ( Forecast Annual RE

Generation x CRR Rate

(OVER)/UNDER RECOVERY

FIT DIFFERENTIAL

25

DATA NEEDED SOURCE

FIT Eligible RE Actual/Forecast Annual

Generation 2014-2020DOE/RE Generator

FIT Rate ERC/Degressed Rate

CRR Rate

Luzon & Visayas PEMC (36 months Ave. LWAP ending

April2018 Billing)

Mindanao

Blended Rate of Host DUs (ending

April and May 2018 Billing; Average

CRR Rate of Mindanao (December2017

Billing) for those with no data

PROJECTED FIT ELIGIBLE RE CAPACITIES &

INSTALLATION TARGETS as of July 5, 2018

26

NO. OF

PLANTS

INSTALLED

CAPACITY,

MW

NO. OF

PLANTS

INSTALLED

CAPACITY, MW

BIOMASS 25 159.54 26 170.33 LUZON 14 93.42 15 104.21

VISAYAS 6 40.00 6 40.00

MINDANAO 5 26.12 5 26.12

HYDROPOWER 12 120.10 15 146.20

LUZON 7 33.90 8 36.90

VISAYAS 1 8.00 3 31.10

MINDANAO 4 78.20 4 78.20

SOLAR 24 525.95 24 525.95

LUZON 16 283.73 16 283.73

VISAYAS 6 225.50 6 225.50

MINDANAO 2 16.72 2 16.72

WIND 7 426.90 7 426.90

LUZON 5 336.90 5 336.90

VISAYAS 2 90.00 2 90.00

MINDANAO

TOTAL 68 1,232.49 72 1,269.38

LUZON 42 747.95 44 761.74

VISAYAS 15 363.50 17 386.60

MINDANAO 11 121.04 11 121.04

400

1,400

2018 2019

TECHNOLOGYINSTALLATION

TARGETS,MW

250

250

500

ELIGIBLE/PROJECTED FIT ELIGIBLE

PLANTS FOR 2019

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion 27

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

BIOMASS 170.33

With Billing as of July 5, 2018

1 Payatas Landfill Methane Recovery and Power Generation Facility06/15/15 Pangea Green Energy Philippines, Inc. Luzon 0.876 92.72%

2 Montalban Landfill Methane Recovery and Electricity Generation06/15/15 Montalban Methane Power Corporation Luzon 2.175 93.15%

3 Bataan 2020 Rice hull-fired Cogen Plant 07/10/15 Bataan 2020 Inc. Luzon 11.10 96.99%

4 FFHC Bagasse-Fired Cogeneration Power Plant 06/15/15 First Farmers Holdings Corporation Visayas 8.00 54.52%

5 SJCi Power Rice Husk-Fired Biomass Power Plant Project 11/02/14 San Jose City I Power Corporation Luzon 12.00 82.36%

6 GFII Bagasse-fired Cogeneration Power Plant 11/30/12 Green Future Innovations Inc. Luzon 14.00 45.95%

7 IBEC Rice Husk-Fired Biomass Power Plant 10/06/15 Isabela Biomass Energy Corporation Luzon 18.00 92.60%

8 URC Bagasse-Fired Cogeneration Power Plant Project 01/20/15 Universal Robina Corporation Visayas 20.00 57.53%

9 GIFT Rice Husk-Fired Biomass Power Plant Project 02/27/16 Green Innovations for tomorrow Corporation Luzon 10.80 78.36%

10 BBEC Rice Husk-Fired Biomass Power Plant Project 10/10/16 Bicol Biomass Energy Corporation Luzon 4.40 92.90%

11 ASEAGAS Biomass Power Plant Project 12/14/16 AseaGas Corporation Luzon 2.21 72.78%

12 GEEC MW Biomass Cogeneration System 05/27/17 Green Earth Enersource Corporation Mindanao 1.64 51.57%

13 SJCi Power Rice Husk-Fired Biomass Power Plant Project 09/22/17 San Jose City I Power Corporation Luzon 10.80 91.51%

14 Payatas Landfill Methane Recovery and Power Gen. Facility 02/17/17 Pangea Green Energy Philippines, Inc. Luzon 0.424 96.71%

15 Lamsan Biomass Power Plant Project 12/30/16 Lamsan Power Corporation Mindanao 13.50 90.41%

16 ACNC Biogas Power Plant Project 07/21/17 Asian Carbon Neutral Power Corporation Luzon 1.70 93.15%

With COE

17 HPCo Bagasse Cogeneration Plant 02/04/15 Hawaiian-Philippines Company Visayas 2.00 49.32%

18 VMC Bagasse-Fired Biomass Power Plant 10/23/15 Victoria Milling Company, Inc, Visayas 2.50 59.84%

Total Biomass

PROJECTED FIT ELIGIBLE PLANTS FOR

2019

28

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion

BIOMASS

With Nomination

19 CADPI Biomass Project 02/16/18 Central Azucarera Don Pedro, Inc. Luzon 2.00 20.55%

Others In the DOE List

20 PTC Biomass Power Plant Project 10/01/18 Philippine Trade Center, Inc. Mindanao 2.60 83.56%

21 CADSA Cogeneration Power Plant 01/01/18 Central Azucarera De San Antonio Visayas 5.00 42.47%

22 SCBI Cogeneration Power Plant 01/01/18 San Carlos Bioenergy, Inc. Visayas 2.50 90.41%

23 BFI Biogas Power Plant Project 04/01/18 Biotech Farms, Inc. Mindanao 4.50 73.94%

24 BFI Biogas Power Plant Project 04/01/18 Biotech Farms, Inc. Mindanao 3.88 92.33%

25 Montalban Landfill Methane Recovery and Electricity Gen. 06/15/15 Montalban Methane Power Corporation Luzon 2.93 83.62%

26 Napier Grass-Fired Biomass Power Plant Project 12/01/19 Grass Gold Renewable Energy Corporation Luzon 10.80 87.67%


PLANTS FOR 2019

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion

29

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

HYDROPOWER 146.20


1 Sabangan Hydroelectric Power Project 06/02/15 Hedcor Sabangan, Inc. Luzon 14.00 43.62%

2 Tudaya 2 Hydroelectric Power Project * 06/15/15 Hedcor Tudaya, Inc. Mindanao 7.00 68.15%

3 Irisan 1 Hydroelectric Power Plant 04/30/12 HedCor (Aboitiz) Luzon 3.80 33.05%

4 Communal-Uddiawan Hydroelectric Power Plant 06/15/15 Smith Bell Luzon 1.80 35.57%

5 Villasiga Hydroelectric Power Project 04/17/16 Sunwest Water & Electric Co. Inc. Visayas 8.00 50.23%

Effective but not yet Billing

6 8.5 Maris Main Canal 1 HPP 11/20/17 SN Aboitiz Power Magat Luzon 8.50 59.04%

With Nomination

7 Manolo Fortich 1 HEP 06/01/18 Hedcor Bukidnon, Inc. Mindanao 43.40 59.10%

8 Manolo Fortich 2 HEP 06/01/18 Hedcor Bukidnon, Inc. Mindanao 25.40 58.40%

9 New Bataan Compostela Valley 03/06/18 Repower Energy Developer Corporation Mindanao 2.40 70.43%

Others In the DOE List

10 Majayjay HEP 06/01/18 Majayjay Hydropower Corporation Luzon 2.00 52.97%

11 Labayat River (Upper Cascade) 10/01/18 Repower Energy Corporation Luzon 3.00 55.31%

12 Llawinan 12/01/19 Repower Energy Corporation Luzon 3.00 55.63%

13 Biyao 08/01/18 AV Garcia Power Systems Corporation Luzon 0.80 61.99%

14 Timbaban 01/01/19 Oriental Energy and Power Corporation Visayas 18.00 60.10%

15 Igbulo (Bais) 07/01/19 Century Peak Energy Corporation Visayas 5.10 64.35%

Total Hydropower


PLANTS FOR 2019

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion 30

SOLAR 525.95


1 San Carlos Solar PV Power Project-Phase A 05/15/14 San Carlos Solar Energy Inc. Visayas 16.11%

2 San Carlos Solar PV Power Project Phase B 08/16/14 San Carlos Solar Energy Inc. Visayas

3 Pampanga Solar Power Project 02/05/15 Raslag Corporation Luzon 10.00 15.68%

4 4.1 MW Burgos Solar Power Project 03/05/15 Energy Development Corporation Luzon 4.10 17.29%

5 Ormoc Solar Power Project (Leyte Solar Power Project) 04/04/15 Phil. Solar Farm-Leyte, Inc. Visayas 30.00 14.77%

6 SM North Edsa Solar Power Project 04/07/15 Solar Philippines Commercial Roof top Proj. Inc.Luzon 1.50 12.75%

7 Pampanga Solar Power Project (Phase 2) 12/23/15 Raslag Corporation Luzon 13.14 16.53%

8 San Carlos Solar PV Power Project Phase I-C and I D 09/06/15 San Carlos Solar Energy Inc. Visayas 23.00 16.23%

9 Hermosa Solar Power Project 02/12/16 YH GREEN Energy Incorporated Luzon 14.51 17.39%

10 Tarlac Solar Power Project 02/10/16 PetroSolar Corporation Luzon 50.07 16.25%

11 Cabanatuan Solar Power Project 03/11/16 First Cabanatuan Renewable Ventures Inc. Luzon 10.26 17.34%

12 Burgos Solar Power Project (Phase 2) 01/19/16 Energy Development Corporation Luzon 2.66 17.22%

13 Calatagan Solar Power Project 03/11/16 Solar Philippines Calatagan Corporation Luzon 63.30 15.68%

14 Centrala Solar Power Project 10/25/16 NV Vogt Philippines Solar Energy One, Inc. Mindanao 6.23 14.55%

15 Curimao Solar Power Project 02/29/16 Mirae Asia Energy Corporation Luzon 20.00 18.15%

16 Valenzuela Solar Power Project 03/08/16 Valenzuela Solar Energy Inc. (VALSOL) Luzon 8.50 14.37%

17 Lian Solar Power Project 03/08/16 Absolut Distillers, Inc. (ADI) Luzon 2.04 14.04%

18 Bais Solar Power Project 03/08/16 Monte Solar Energy Inc. (Montesol) Visayas 18.00 15.68%

19 Clark Solar Power Poject 03/12/16 Enfinity Philippines Renewable Resources, Inc. Luzon 22.33 15.55%

20 Kibawe Solar Power Project 03/13/16 Asian Green Energy Corporation MIndanao 10.49 16.77%

21 Palauig Solar PP 03/13/16 Solar Powered Agri-Rural Communities Corp. (SPARC)Luzon 5.02 16.70%

22 Bulacan III Solar Power Project 03/14/16 Bulacan Solar Energy Corp. (BSEC) Luzon 15.00 15.21%

23 Cadiz Solar Power Project 03/14/16 Helios Solar Energy Corporation Visayas 132.50 16.61%

With COE

24 Cavite Economic Zone Solar Power Project 03/15/15 Majestics Energy Corporation Luzon 41.30 16.56%

22.00

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor


PLANTS FOR 2019

31

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

WIND 426.90


1 Bangui Wind Power Project (Phase 3) 10/10/14 Northwind Power Development Corporation Luzon 18.90 28.78%

2 Burgos Wind Power Project (Phase 1 & 2) 11/11/14 EDC Burgos Wind Power Corporation Luzon 150.00 27.45%

3 Caparispisan Wind Energy Project 11/11/14 Northern Luzon Energy Renewable Energy CorporationLuzon 81.00 33.98%

4 San Lorenzo Wind Power Project 12/27/14 Trans-Asia Renewable Energy Corporation Visayas 54.00 25.53%

5 Pillilla Wind Power Project 06/09/15 Alternergy Wind One Corporation Luzon 54.00 29.81%

6 Bangui Wind Power Project (Phase 1 & 2) 07/20/15 Northwind Power Development Corporation Luzon 33.00 26.34%

7 Nabas Wind Energy Project 06/10/15 Petro Wind Energy, Inc. Visayas 36.00 27.07%

FORECAST ANNUAL GENERATION, MWH

32

Based on the Line-up of RE Plants Considered 2012-2015, 2016, 2017 and 2018: combination of actual and estimated data

Based on timing of Generation

Based on timing of Billing

Technology 2012-2015 2016 2017 2018 2019 2020 TOTAL

Biomass 278,566 537,153 730,041 976,916 1,046,420 1,135,618 4,704,713

Hydropower 89,108 99,039 151,303 445,041 701,659 725,984 2,212,135

Solar 155,064 634,561 725,823 754,593 746,651 743,670 3,760,363

Wind 776,988 952,836 1,074,849 1,088,072 1,072,770 1,073,510 6,039,025

Total 1,299,727 2,223,588 2,682,016 3,264,621 3,567,501 3,678,782 16,716,235

2015 2016 2017 2018 2019 2020-2021 TOTAL

2014-2015 868,636 232,631 81,213 110,256 6,991 - 1,299,727

2016 - 1,780,439 316,043 16,110 95,862 15,134 2,223,588

2017 - - 2,420,259 102,705 150,411 8,640 2,682,016

2018 - - - 3,169,298 31,277 64,047 3,264,621

2019 - - - - 3,507,581 59,920 3,567,501

2020 - - - - - 3,678,782 3,678,782

Billed (kWh) 868,635.51 2,013,070.20 2,817,514.14 3,398,369.34 3,792,122.85 3,826,523.12 16,716,235

Year BilledYear

Generation

ADJUSTED FIT RATE*, P/kWh

33

𝐴𝑑𝑗𝑢𝑠𝑡𝑚𝑒𝑛𝑡 = 𝑧 𝑥 𝑅𝑃𝐶𝑃𝐼𝑛𝑅𝑃𝐶𝑃𝐼𝑜

+ 𝑦 𝑥 𝐹𝐸𝐴𝑛

𝐹𝐸𝐴𝑜

* - Based on TransCo’s understanding of the adjustment formula given in the FIT Rules in the absence of an ERC issuance relative thereto

Base FIT Local ForeignShare Share

Biomass 6.63 47% 53%

Hydro 5.90 58% 42%

Solar 9.68

8.69Wind 8.53

7.40

33% 67%

40% 60%

Base CPI (2006= 100) 116.00

Base Peso to US$ ER 47.8125

Where: Z= percentage share of local capital y= percentage share of foreign capital

FORMULA:

ASSUMPTIONS:

2014-2015 2016 2017 2018 2019

Year 1

Entrant

Year 2

Entrant

Year 3

Entrant

Year 4

Entrant

Year 5

Entrant

Biomass

2014-2015 6.6300

2016 7.0508 6.6300

2017 7.2574 7.0508 6.5969

2018 7.5303 7.2574 7.0156 6.5639

2019 7.8487 7.5303 7.2211 6.9805 6.5310

Hydro

2014-2015 5.9000

2016 6.4601 5.9000

2017 6.6217 6.4601 5.8705

2018 6.8543 6.6217 6.4278 5.8411

2019 7.1343 6.8543 6.5885 6.2119 5.8119

Solar

2014-2015 9.6800

2016 9.9067 8.6900

2017 10.2550 8.8935

2018 10.6747 9.2062

2019 11.1467 9.5830

Wind

2014-2015 8.5300

2016 8.9006 7.4000

2017 9.1869 7.7215

2018 9.5474 7.9699

2019 9.9603 8.2826

For Bangui 1 & 2

2014-2015 5.9600

2016 6.2189

2017 6.4190

2018 6.6709

2019 6.9593

Technology

Month Luzon Visayas Month Luzon Visayas

1 May-15 4.4573 4.8386 19 Nov-16 2.2728 2.4157

2 Jun-15 6.3220 6.8639 20 Dec-16 2.1852 1.9550

3 Jul-15 4.5178 4.1864 21 Jan-17 1.9965 0.6061

4 Aug-15 3.6911 3.9535 22 Feb-17 3.4772 2.4081

5 Sep-15 2.1569 2.2841 23 Mar-17 3.8338 2.2691

6 Oct-15 2.4536 2.9994 24 Apr-17 4.1268 3.2325

7 Nov-15 3.1580 3.7360 25 May-17 3.4724 3.4664

8 Dec-15 2.4908 2.4705 26 Jun-17 3.4151 3.3913

9 Jan-16 1.9999 2.2940 27 Jul-17 3.1677 3.1871

10 Feb-16 2.2892 2.4023 28 Aug-17 3.8361 2.3891

11 Mar-16 3.2723 3.4257 29 Sep-17 3.9400 3.5877

12 Apr-16 3.3875 3.6302 30 Oct-17 3.9627 3.9434

13 May-16 2.7221 2.7987 31 Nov-17 3.3182 3.1916

14 Jun-16 4.6854 4.7308 32 Dec-17 2.4306 2.3902

15 Jul-16 2.8412 2.8122 33 Jan-18 2.3894 2.3730

16 Aug-16 4.0284 4.0648 34 Feb-18 3.7499 3.6900

17 Sep-16 2.7704 2.7324 35 Mar-18 5.1008 5.0593

18 Oct-16 2.5067 2.0168 36 Apr-18 4.1976 4.1607

Average 3.3506 3.2210

LWAP, Pesos per KWh LWAP, Pesos per KWh

FORECAST COST RECOVERY RATE

(WESM), P/kWh

34

HOST DUs BLENDED GENERATION COST, P/kWh

35 Note: WAGC – based on average of 12 months per FIT-All Guidelines

Host DU

Weighted Average

Generation Cost,

P/kWh

Data Source

SUKELCO 5.2930 ACRR Rate from Host DU

COTABATO LIGHT 3.6611 ACRR Rate from Host DU

SOCOTECO I 5.5049 FIT-All Fund ACRR Payment of SOCOTECO I

DASURECO 5.2623 FIT-All Fund ACRR Payment of DASURECO

ZANECO 4.4140 ACRR Rate from Host DU

ZAMSURECO 1 5.0914 2017 Actual CRR Rate for Mindanao

ZAMSURECO 2 5.6011 ACRR Rate from Host DU

MOELCI 1 5.9950 ACRR Rate from Host DU

SIARELCO 2.7064 ACRR Rate from Host DU

BUSECO 5.3694 ACRR Rate from Host DU

SURSECO 1 4.7915 ACRR Rate from Host DU

SOCOTECO 2 5.5995 ACRR Rate from Host DU

DLPC 4.3610 ACRR Rate from Host DU

DANECO 6.4019 ACRR Rate from Host DU

FIBECO 4.5092 FIT-All Fund ACRR Payment of FIBECO

FIT DIFFERENTIAL

TOTAL FIT REVENUE ( Forecast Annual RE

Generation x FIT Rate

FORECAST COST RECOVERY REVENUE

( Forecast Annual RE Generation x

CRR Rate


FIT DIFFERENTIAL (UNDER-RECOVERY), PHP

36

2015 2016 2017 2018

actual actual actual estimate

FD claim, beg - 1,809,658,442.81 4,428,764,887.26 6,123,107,614.35 *

FD claim for the year 4,293,526,898.81 10,151,661,662.08 13,490,210,933.44 14,826,111,190.55

Total FD claim 4,293,526,898.81 11,961,320,104.89 17,918,975,820.70 20,949,218,804.90

FD payment for the year 2,483,868,456.00 7,532,555,217.63 11,795,868,206.35 17,296,220,474.13

FD claim, end 1,809,658,442.81 4,428,764,887.26 6,123,107,614.35 3,652,998,330.77

P/kWh 0.0415*actual

Estimated FD Under Recovery

Accruing to REs Already Billing 3,067,376,826.85

For REs that have not started to bill 585,621,503.92

3,652,998,330.77

FIT DIFFERENTIAL

TOTAL FIT REVENUE ( Forecast Annual RE

Generation x FIT Rate

FORECAST COST RECOVERY

REVENUE ( Forecast Annual RE

Generation x CRR Rate


FIT DIFFERENTIAL, PHP

37

Particulars Amount P/kWh

2019 FIT Differential (2019 Gen) 17,013,447,531.22 0.1934

2019 FIT Differential (2018 Gen) 112,583,793.12 0.0013



2019 FIT Differential (2012-2015 Gen) 114,166,525.07 0.0013

2018 Under Recovery 3,652,998,330.77 0.0415

Total FIT Differential 21,500,127,450.40 0.2445

WCA t+1

Forecast Annual Payout

t+2

Factor Rate

WCA Ending Balancet

DATA NEEDED SOURCE

Forecast Annual Payoutt+2 As computed

Factor Rate NREB formula

WORKING CAPITAL ALLOWANCE, PHP

38

2020 FORECAST ANNUAL PAYOUT, PHP

39

Particulars Amount, Php

Forecast Cost Recovery Revenue 13,163,816,179

FIT Differential 18,028,557,695

Administration Allowance 13,639,639

Disbursement Allowance 1,071,094

Forecast Annual Payout 31,207,084,607

*per NREB Resolution No. 3 Series of 2014

Factor Rate

CRR- WESM

Total Annual Payout

Factor RateWESM

FD,AA,DA, CRRNon-

WESM

Total Annual Payout

Factor RateFIT All

FACTOR RATE*

40

CRRWESM

FD,AA, DA, CRRNon-

WESM

Annual Payout 9,822,106,020 19,999,808,238

Divided By: Total Annual Payout 29,821,914,259 29,821,914,259

Ratio 32.94% 67.06%

X Factor Rate 1.15% 13.44%

Weighted Factor Rate 0.38% 9.02%

Effective Factor Rate 9.3937%

WCA t+1 Forecast Annual

Payout t+2 Factor Rate

WCA Ending Balancet

WCA ENDING BALANCE, PHP

41

Note: WCA negative ending balance is proposed to be not included in the 2019 FIT-All

calculation and assumed to be absorbed by the computed 2019 WCA

Estimated Unpaid Interest,

February 28, 2019 430,273,410.36

CRR Ending Balance, Feb 28,

2019 (Dec2018 Billing) 123,307,441.06

Total (553,580,851.42)

P/kWh -0.0063

WCA t+1 Forecast Annual

Payout t+2 Factor Rate

WCA Ending Balancet

WORKING CAPITAL ALLOWANCE (WCA), PHP

42

Particulars 2019 2020

Forecast Annual Payout, Php 31,207,084,607

X Factor Rate 9.3937%

Equals: Portion of Annual Payout, Php 2,931,513,659

Less: WCA Ending Balance (Year n) -

Working Capital Allowance, Php 2,931,513,658.66

Working Capital Allowance, P/kWh 0.0333

ADMINISTRATION ALLOWANCE (AA), PHP

43

Notes:

1. Based on TransCo Board approved COB 2. Assumes a permanent FIT-All Division comprising of 11 personnel

Particulars 2019

Personal Services 10,421,261.20

Maintenance & Other Operating Expenses 3,129,532.19

CAPEX -

Total Administration Allowance, Php 13,550,793.39

Administration Allowance, P/kWh 0.0002

DISBURSEMENT ALLOWANCE, PHP

44

Fixed Trustee Fee (60k/Month) 720,000.00

BSP Supervision Fee

(1/28 of 1% of the Average

Monthly Fund Balance)

298,594.07

RTGS Fee 52,500.00

Estimated Trustee Fee 1,071,094.07

Disbursement Allowance 0.00001

AA FD WCA FIT ALL RATE,

P/kWh DA FNS

SUMMARY OF

2019 FIT ALL RATE APPLICATION, P/kWh

45

Assumptions:

1. Adjusted FIT Rates

2. CRR Rate

Actual Generation and FD for those with Billings as of May2018 Billing

Monthly LWAP (for those 2012-Apr 2018 without Actual FD)

36 Monthly Average LWAP for April 2018 to 2020

3. Latest DOE Line-up

COMPONENTS Amount (Php) Rate (P/kWh) Share

FD 21,500,127,450 0.2445 87.95%

2019 FIT Differential-2019 Gen 17,013,447,531 0.1934 69.60%

2019 FIT Differential-2018 Gen 112,583,793 0.0013 0.46%



2019 FIT Differential-2014-2015 Gen 114,166,525 0.0013 0.47%

2018 Under Recovery 3,652,998,331 0.0415 14.94%

WCA 2,931,513,659 0.0333 11.99%

AA 13,550,793 0.0002 0.06%

DA 1,071,094 0.00001 0.00%

Total 24,446,262,997

FNS, kWh 87,950,887,855

FIT-All, Php/kWh

0.2780

2019 FIT-ALL RATE BUILD-UP FROM ERC 2017 DECISION

46

2019 FIT-All

Rate Build-

Up

0.2563SOURCES OF INCREASE (DECREASE) Pesos Pesos/kWh

(9,052,438,677.87) (0.0264) 0.2299

4,066,647,875.63 0.0462 0.2761

FIT Differential 3,448,566,347.27 0.0392

WCA 618,081,528.36 0.0070

1,898,603,179.18 0.0216 0.2977

FIT Differential 1,553,283,001.31 0.0177

WCA 345,320,177.88 0.0039

98,702,291.48 0.0011 0.2988

WCA 98,702,291.48 0.0011

(1,034,874,342.84) (0.0118) 0.2871

14,823,720.24 0.0002 0.2873

Administration Allowance 13,550,793.39 0.0002

AA Effect on WCA 1,272,926.85 0.0000

(26,554.55) 0.0000 0.2873

Disbursement Allowance (24,274.29) (0.0000)

DA Effect on WCA (2,280.26) (0.0000)

(817,640,604.01) (0.0093) 0.2780NET INCREASE (DECREASE) (4,826,203,112.74) 0.0217

2017 FIT-All Rate Decision

Increase from 2017 FIT-All

7. Change in Disbursement Allowance

8. Change in FIT Differential Underrecoveries

1. Change In Energy Sales (Denominator)

2. Change in Energy Generation

3. Change in FIT Rate/ACRR

4. Change in Factor Rate

5. Movement in Past Due Months Charged to

CY2019

6. Inclusion of Administration Allowance

INCREMENTAL MOVEMENT OF THE 2019 FIT-ALL FOR DIFFERENT RE PLANT/PROJECT CATEGORIES

47

COE-Certificate of Endorsement issued by the DOE

Nomination-Issued by the COE

Increase/

(Decrease)Total

Increase/

(Decrease)Total

Increase/

(Decrease)Total

Increase/

(Decrease)Total

MW 1,077.78 8.50 1,086.28 45.80 1,132.08 73.20 1,205.28 64.10 1,269.38

MWH 2,782,013 43,964 2,825,977 81,664 2,907,641 373,041 3,280,682 286,819 3,567,501

- - - - - - - -

FIT-ALL Rate, P/kWh

FD 0.2003 0.0034 0.2037 0.0161 0.2198 0.0132 0.2330 0.0115 0.2445

2019 FD 0.1738 0.0016 0.1754 0.0125 0.1879 0.0062 0.1941 0.0088 0.2029

2018 Under Recovery 0.0265 0.0018 0.0283 0.0036 0.0319 0.0070 0.0389 0.0027 0.0415

WCA 0.0254 0.0002 0.0256 0.0016 0.0271 0.0036 0.0307 0.0026 0.0333

AA 0.0002 0.0000 0.0002 0.0000 0.0002 0.0000 0.0002 0.0000 0.0002

DA 0.00001 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.00001

FIT-ALL Rate, P/kWh 0.2258 0.0036 0.2295 0.0176 0.2470 0.0168 0.2639 0.0141 0.2780

With Billings

As of July 5,

2018

With COE With Nomination DOE ListEffective but No Billing

Assumptions:


2. CRR Rate

Actual Generation and FD for those with Billings as of May2018 Billing

Monthly LWAP (for those 2012-April 2018 without Actual FD)

36 Monthly Average LWAP for April 2018 to 2020

3. Latest DOE Line-up

IMPACT OF FIT-ALL RATE TO END-CONSUMERS

FIT-All

ComponentsP/kWh

Consuming

100kWh/month,

Php

Consuming

200kWh/month,

Php

FD 0.2445 24.45 48.89

WCA 0.0333 3.33 6.67

AA 0.0002 0.02 0.03

DA 0.0000 0.00 0.00

Total 0.2780 27.80 55.59

Full DOE Line-up-As Applied

48

Billing Month: June 2018 Consumption: 55 kWh FIT-All Charge: Php 14.10 % to Total Bill: 2.26% of the Total Bill

FIT-All Current Rate, Php 0.2563/kWh

Billing Month: June 2018 Consumption: 55 kWh FIT-All = Php 15.29 % to Total Bill = 2.45% of the Total Bill

2019 FIT-All Applied, Php 0.2780/kWh Impact of Application:

Impact for Other Energy Consumption @ FIT-All Rate of Php 0.2780/kWh

100 200 300 400

FIT-All

Charge,

Php

27.80 55.60 83.40 111.20

Consumption (kWh)

FIT-All Impact to Consumers

49

For the Prayer in the Application as to the amount of FIT-All being requested for approval, we will include the phrase, “OR IN THE ALTERNATIVE, such other amount that may arise from new and updated information not heretofore available to the Applicant at the time of filing of the present application”

PRAYER IN THE APPLICATION

50

UPDATE

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 Php/kWh 0.2780 effective January 2019 billing period be issued;

b. The Collection Agents – 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 and the Host DUs be directed to remit the ACRR to the FIT-All Fund as provided in the FIT-All Guidelines;



51

UPDATE

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 the FIT-All Rate for 2019;

e. After due notice and hearing, a FIT-All Rate of Php/kWh 0.2780 for 2019 be approved;

e.1 OR IN THE ALTERNATIVE, after due notice and hearing, a FIT-All Rate for 2019 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



52

UPDATE

f. TransCo be exempt from payment of permit/supervision fee, if any.

Other reliefs as may be just and equitable under the premises are likewise most respectfully prayed for.

III. Updated Calculation

53

RE PLANT STATUS

54

As of September 5, 2018

No. MW No. MW No. MW No. MW

SOLAR 23 484.65 1 41.30 24 525.95

WIND 7 426.90 7 426.90

BIOMASS 16 131.63 2 4.50 1 2.00 19 138.13

HYDRO 6 43.10 3 71.20 9 114.30

Total 52 1086.28 3 45.80 4 73.20 59 1205.28

Plant TypeTotal

With Billings

as of Sept 5

PD

With COE With

Nomination

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2018 (updated data as of July 2018 Billing Period)

Assumptions

55

Parameters As Filed Update

A. Billing Period Actual up to May 2018 Actual up to July 2018

B. RE Plants Included

No Change in line-up. Just an

update on category, i.e., from

REs with Effective REPA Not

Yet Billing to REs With Billing

as of September 5, 2018;

change in timing of billing

C. Energy Generation, MWH

2018 3,264,621 3,265,971

2019 3,567,501 3,567,501

D. Collection DataActual FIT-All Collection until

June 2018

Actual FIT-All Collection until

July 2018

151.5083 152.2083

12 months ending May 2018 12 months ending June 2018

P4.8796/kWh P5.2022/kWh

12 months ending May 2018 12 months ending June 2018

G. FD Under Recovery, Php 3,652,998,330.77 2,616,404,322.62

H. Factor Rate 9.3937% 9.3979%

E. Average CPI

F. ACRR of Host DUs already

billing

As Filed

56

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2018 (updated data as of July 2018 Billing Period)


FD 21,500,127,450 0.2445 87.95%






2018 Under Recovery 3,652,998,331 0.0415 14.94%

WCA 2,931,513,659 0.0333 11.99%

AA 13,550,793 0.0002 0.06%

DA 1,071,094 0.00001 0.00%

Total 24,446,262,997

FNS, kWh 87,950,887,855

FIT-All, Php/kWh

0.2780


FD 20,391,376,620 0.2318 87.33%






2018 Under Recovery 2,616,404,323 0.0297 11.21%

WCA 2,943,932,947 0.0335 12.61%

AA 13,550,793 0.0002 0.06%

DA 1,072,522 0.00001 0.00%

Total 23,349,932,882

FNS, kWh 87,950,887,855

FIT-All, Php/kWh

0.2655

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2018 (updated data as of July 2018 Billing Month)

Using full line-up of RE Plants from the DOE as of July 5, 2018

57

Assumptions:


2. CRR Rate

Actual Generation and FD for those with Billings as of July 2018 Billing

Monthly LWAP (for those 2012-April 2018 without Actual FD)

36 Monthly Average LWAP for May 2018 to 2019


FD 20,391,376,620 0.2318 87.33%






2018 Under Recovery 2,616,404,323 0.0297 11.21%

WCA 2,943,932,947 0.0335 12.61%

AA 13,550,793 0.0002 0.06%

DA 1,072,522 0.00001 0.00%

Total 23,349,932,882

FNS, kWh 87,950,887,855

FIT-All, Php/kWh

0.2655

END OF PRESENTATION Thank you.

Telephone No.: (02) 902-1500 loc. 86230/86231/1579

Email Address: [email protected]

[email protected]

Website: http://transco.ph/feed-in-tariff

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