ERC Resolution No. 18, Series of 2026 – Rules on Third-Party Transmission Project Development
ERC adopted implementing rules allowing generation companies and TRANSCO to finance and construct transmission projects, enabling faster integration of new generation capacity and supporting grid reliability and energy transition goals.
6/16/20263 min read
SUMMARY
WHAT IT IS
This document adopts the implementing rules governing the development, ownership, and operation of point-to-point limited transmission facilities, and the financing and construction of transmission projects by entities other than the Transmission Network Provider (TNP), in line with recent DOE policies.
Generation Companies
NGCP (TNP)
TRANSCO
Distribution Utilities
WHO IS AFFECTED
KEY DEADLINES
NGCP and TRANSCO must submit draft MOAs to the ERC within 15 days from effectivity.
Applications must comply with pre-filing requirements and timelines under the Energy Virtual One-Stop Shop (EVOSS) Act.
TAKEAWAY
Generation Companies and TRANSCO must promptly prepare and submit required MOAs to the ERC.
Entities planning to develop or finance transmission facilities must ensure compliance with these rules, secure necessary authorizations, and adhere to prescribed processes for cost recovery and project turnover.
KEY POINTS
Scope: Applies to Generation Companies developing, owning, or operating point-to-point limited transmission facilities; Qualified Generation Companies financing and constructing Associated Transmission Projects (ATPs); the Transmission Network Provider (TNP); System Operator (SO); TRANSCO; and entities engaged by TRANSCO for Priority Projects (PPs).
Requirements: Prior authorization from the ERC is required for Generation Companies to develop and own point-to-point limited transmission facilities and for Qualified Generation Companies to finance and construct ATPs; DOE endorsement and MOA execution are mandatory for ATPs.
Thresholds: Only committed generation projects included in the DOE’s latest list and with DOE authorization are eligible for ATP implementation by Qualified Generation Companies.
Deadlines: NGCP and TRANSCO must submit draft MOAs to the Commission within fifteen (15) days from effectivity of the Resolution; Implementing Rules take effect fifteen (15) days after publication.
Covered Entities: Generation Companies, Qualified Generation Companies, TNP (NGCP), TRANSCO, SO, and entities engaged by TRANSCO for PPs.
Compliance Obligations: Entities must execute MOAs detailing project specifications, costs, timelines, obligations, cost recovery, and dispute resolution; compliance with SIS, FS, OATS Rules, Philippine Grid Code, and Commission regulations is required.
Mechanisms Introduced/Amended: Establishes process for transfer of ownership of facilities to TRANSCO and takeover by TNP, with reimbursement at fair market value subject to Commission approval; introduces cost recovery mechanisms via inclusion in TNP’s CAPEX and rate reset applications.
Priority Projects: PPs identified by DOE may be implemented by TRANSCO, subject to Commission approval and adherence to CAPEX filing requirements; PPs may include projects not in the TDP.
Application Process: Pre-filing and filing requirements must be met per Commission rules and EVOSS Act timelines; TNP must be impleaded as a necessary party in all relevant applications.
Penalties: Violations of these Implementing Rules are subject to fines and penalties under ERC Resolution No. 03, Series of 2009, and other relevant laws and regulations.
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ERC Resolution No. 18, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
Suggested next actions
PREMIUM REGULATORY ANALYSIS
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Tags: Point-to-Point Transmission, Associated Transmission Projects, Generation Company Participation