The power supply connection sought, it was noted in the ERC ruling, shall be channelled through the transmission system of the National Transmission Corporation.

The NIA-BPIP is a special project of the government-run entity which targets to service and benefit some 5,334 farmer-beneficiaries in eight municipalities in Ilocos Sur. These are in Bantayan, Vigan, Caoayan, San Vicente, Sta. Catalina, San Ildefonso, Sto. Domingo and Magsingal.

For NIA-BPIP to service the electricity requirements of the project, it would need to fork out investment of P2.522 billion.

The various components of the electricity system it shall set up are: one pumping station; 7 electric-powered pumps with 12.25 cms capacity; 1 substation; 1.38-kilometer tunnel; 614 m closed conduit; 20.6 km main canal; 66 km lateral canals; 308.5 km main and supplement farm ditches; 235 canal structures; 86.6 km 6m-width and 4m-width roads; 145 turnouts; 13-km transmission line; 30-km drainage canals; 132-km main farm ditches; and 176-km supplementary farm ditches.

In applying for direct connection, NIA has requested a waiver from the cooperative allowing that their Banaoang Pump Irrigation Project be directly supplied with power by NPC through TransCo.

It was noted that "neither NPC nor TransCo raised any objection to NIA-BPIP’s application and evidence."

In its ruling, the ERC has set various conditions as to the direct connection bid of NIA-BPIP, such as:

— the sub-transmission assets shall ultimately become the property of the franchised distribution utility (in this case the Ilocos Sur Electric Cooperative, Inc or ISECO) if qualified; or in its absence, of TransCo and treated as contribution-in-aid of construction (CIAC), until such time that these assets can transferred to ISECO;

— if TransCo finances the assets, NIA-BPIP shall pay the charges related to such assets to TansCo; and the latter shall treat such assets as CIAC and shall transfer it to ISECO within a reasonable period of time;

— if ISECO funds and constructs the assets, NIABPIP shall pay the charge related to such assets and the other applicable charges for services availed from ISECO and other non-bypassable charges authorized by law; and

— if NIA-BPIP puts up the assets, the same shall be transferred to ISECO and such assets shall be treated as CIAC and shall not form part of its regulatory asset base. (MMV)