Leyte electric co-op applies for P1-M capex

Business Mirror
SUNDAY, 27 NOVEMBER 2011 18:27 FELIX N. CODILLA III / CORRESPONDENT


LEYTE-V Electric Cooperative Inc. (Leyeco V) is applying with the Energy Regulatory Commission for a capital expenditure (capex) at the colossal cost of P1.045 billion.


Just exactly how Leyeco V plans to spend this is outlined in its application: The electric cooperative breaks its five-year development plan into seven projects.


The biggest chunk of the Capex will go to subtransmission development which largely entails the acquisition of 69 kiloVolt (kV) lines from the National Grid Corp. of the Philippines (NGCP) pursuant to Republic Act 9136 (Electric Power Industry Reform Act) Sec. 8, Par. 3. These lines are Lemon-Biliran, Milagro-Ormoc and Ormoc-Talisayan.


Aside from lines acquisition, the subtransmission development will also involve construction of lines to Leyeco V’s substations in Mahayag, Isabel; Simangan, Ormoc; Talisayan, Albuera; Libongao, Kananga; Tabango-Palompon; Isabel-Palompon, as well as the refurbishment of the NGCP line to Leyeco V’s substation in Tabango.


The second biggest cost of the DDP is substation development. Leyeco V warns that four of its five substations will exceed the 70 percent maximum rated capacity by 2014. Hence, additional capacity is needed with the construction of new substations in Ormoc (20MVA), Palompon (10MVA) and Kananga (5MVA).


The third biggest cost is the renewal projects. Leyeco V plans to fix the undersized line conductors as well as overextended secondary lines and service drop wires so that its 13.04-percent systems loss will be improved below the ERC’s 13-percent cap or even lower to a single-digit mark. It also wants to replace 25,737 defective meters and 3,775 dilapidated poles.


If the DDP is not implemented, Leyeco V System Planner Michael Guiñarez forecasts that the system loss will gradually increase to 18.4 percent in 2020 based on their simulation. Consumers will bear the systems loss which will be reflected on their electric bill.


Non-network projects which comprise the fourth-biggest cost will go to the following:


· Renovation of Leyeco V’s main office, P2 million (2012-13) to include the construction of a customer’s lounge at the front and a covered walk leading to the building;


· Construction of new multipurpose building, P3 million (2012) to accommodate gatherings including the annual general assembly;


· Renovation of engineering building and warehouse, P1 million (2013);


· Acquisition of 16 units utility truck (4WD), P12.8 million (2011-15);


· Acquisition of four units boom truck, P25 million (2012-13) for easier and faster line construction;


· Information technology and equipment upgrading to include computers and accessories, construction of radio repeater and other gadgets, P10 million (2012-15);


· Distribution Management System Development, P7 million to include computerization of accounting system (2012), geographic information system (2013);


· Supervisory Control and Data Acquisition, P8 million (2013-1205) which involves setting up a control center to remotely detect line problems for faster response.