CEDC seeks nod for P258-M capex

July 25, 2018 | 12:06 am

http://www.bworldonline.com/cedc-seeks-nod-for-p258-m-capex/

CLARK ELECTRIC Distribution Corp. (CEDC) is seeking approval from the Energy Regulatory Commission (ERC) for its capital expenditure program for 2018 amounting to around P258 million.

CEDC, a unit of the country’s biggest power distribution utility Manila Electric Co., placed the bulk of the outlay at P125 million, for the implementation of its enterprise asset management system.

In its application, the company listed a number of “residual” projects, the biggest of which is allocated for the growth of its consumer metering network. The cost of putting up meters, instruments and metering transformers was placed at P29.98 million.

The spending program is meant “to ensure reliable operation of its distribution network and continuous distribution service and connection to meet the growing and future needs of its more than 2,000 industrial, commercial and residential customers inside the CSEZ,” the company said.

CEDC, which has a franchise to distribute electricity within the Clark Special Economic Zone, is under the performance-based regulation rate-setting methodology of the ERC. Its third regulatory period was supposed to have started on Oct. 1, 2015 and end on Sept. 30, 2019, but it is still waiting for the go-ahead from the commission to file its “reset” application.

The company said in the meantime, it was filing the application to seek prior approval from the ERC before it can construct, operate and maintain new distribution facilities, noting that as it has no authority to undertake and implement capital expenditure projects after Sept. 30, 2015, it is seeking the commission’s approval for its capex program for regulatory year, which spans Oct. 1, 2017 to Sept. 30, 2018.

In its application, the company said the lack of an approved capex projects from the start of the third regulatory period on Oct. 1, 2015 would “severely hamper” its operations and affect its ability to deliver electricity service to its customers.

It said it is “imperative” on the company to undertake the expansion and rehabilitation of its network facilities through acquisition of new assets to ensure continuous compliance with safety, performance and other statutory or regulatory requirements.

Ahead of the approval of its proposed capex, CEDC is asking the ERC to grant provisional authority to implement its projects for 2018. — Victor V. Saulon