Tuesday, September 26, 2017

Meralco seeks regulator’s nod for supply line to Solid Cement



By Lenie Lectura - September 25, 2017

THE Manila Electric Co. (Meralco) is seeking regulatory approval to construct a new connection line to serve the energy requirements of Solid Cement Corp.’s new plant.
Meralco said it received an application from Solid for the expansion of its existing 26.5-mega volt-amp (MVA) plant with an additional 36.9 MVA load, or a total aggregate load of 63.4 MVA, in order for Solid Cement to have the capacity to supply the growing demand for cement.
The new cement plant should be operational by January 2019 in order to “prevent the shortage of cement brought about by the increasing number of infrastructure projects in the country”.
“This expansion project of Solid Cement is expected to create additional direct employment and generate a significant economic multiplier effect for surrounding communities not just in Rizal but in entire Luzon,” the utility firm said in its seven-page application. “Thus, the necessary connection must be provided to their cement plant by January 2019.”
The utility firm said the existing New Teresa 115-kilovolt (kV) to 34.5- kV substation, which serves the power requirements of the towns of Morong, Baras, Tanay and Pililia in the province of Rizal, would not be able to service the additional load of 36.9 MVA by January 2019.
“With the 36.9-MVA additional load application of Solid, the loading of the New Teresa Bank 1 will be aggravated at 107 percent in 2019,” Meralco said. Solid has offered to initially bear the costs of the construction of the facility under the cash-advance option in accordance with the amended distribution services and open access rules (Dsoar). The New Teresa-Tagbac 115-kV line will cost P138,367,283.00.
“Considering Solid’s urgent need for additional power requirements in order to operate their new cement plant by January 2019, and the fact that the proposed project is a non-standard connection facility that was not forecasted by Meralco, Solid decided to shoulder the costs of the project under the cash advance option to expedite its implementation,” Meralco said.
The utility firm pointed out that is it obliged to provide access to its distribution system to its customers. However, the additional load of Solid Cement imposes a major challenge because, aside from the inadequate line capacity of the existing circuit in the area and the nonstandard connection facilities to be constructed, Solid Cement requires a reliable power supply due to its highly sensitive equipment and production processes. Meralco’s application also stated the project will provide safe and reliable supply to Solid to ensure the continuity of its operations.
“It is most respectfully prayed to this Honorable Commission that the instant application for approval to construct the New Teresa-Tagbac 115-kV line…be approved. Pending hearing, it is, likewise, prayed that a provisional authority be immediately issued authorizing Meralco to implement the construction of the New Teresa-Tagbac 115-kV line,” it said.

Singson
MEANWHILE, Meralco’s board of directors announced last Thursday the appointment of former Public Works Secretary Rogelio L. Singson as the firm’s senior vice president.
The company said in a disclosure on Monday its executives also appointed Singson as president and CEO of Meralco Powergen Corp. (MGen) effective October 1.
According to Meralco top officials, “Singson can now focus on the projects of MGen.”
Meralco President Oscar Reyes used to lead MGen prior to Singson’s appointment.
MGen is engaged in a number of coal-power projects. These include the 2×600-MW ultra supercritical coal-fired power plant in Atimonan town, Quezon province, that will be undertaken by Atimonan One Energy Inc., and the 2×300-MW circulating-fluidized bed coal-fired power plant in Subic Bay, Zambales, that will be undertaken by RP Energy, a joint venture among MGen (47 percent), Therma Power Inc. (25 percent) and Taiwan Cogeneration International Corp. (25 percent).

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