Business World Online
Posted on January 08, 2014 11:04:00 PM
THE NATIONAL Transmission Corp. (TransCo) and a power distributor in Bataan have sought regulatory approval for the purchase of the former’s assets worth P136.55 million.
In a notice published in a newspaper last Tuesday, the Energy Regulatory Commission (ERC) said TransCo and Peninsula Electric Cooperative, Inc. (PENELCO) filed a joint application for the approval of the sale of several subtransmission assets (STAs) under the terms of a lease purchase agreement executed in 2011.
ASSETS
Specifically, PENELCO seeks to acquire TransCo’s Orion Tap-PNPP 69-kilovolt (kV) line; Calaguiman Tap-BPPMI 69-kV line; EPZA-Mariveles 69-kV line; and Morong substation.
PENELCO and TransCo on Dec. 29, 2011 concluded a lease purchase agreement for the STAs, under which PENELCO would pay TransCo P136,551,360.00 in 240 equal monthly installments.
“TransCo has established that PENELCO meets the technical and financial criteria to purchase, operate, maintain, upgrade, and expand the… assets which are located within its franchise area,” the notice read.
It added that PENELCO is the only qualified distribution utility connected to the assets.
The two parties said that regulatory approval will “pave the way for the attainment of a reformed electricity industry under the EPIRA (Electric Power Industry Reform Act of 2001), towards a competitive regime/cost of electricity which would ultimately best serve the interests of the consuming public.”
HEARING
The ERC has scheduled a hearing, expository presentation and pre-trial conference for the sale of the assets on Jan. 29 at 9:30 a.m. to be held at PENELCO’s main office in Balanga City, Bataan.
PENELCO distributes electricity in Balanga City and the municipalities of Dinalupihan, Hermosa, Orani, Samal, Abucay, Pilar, Orion, Limay, Mariveles, Bagac and Morong -- all located in the province of Bataan.
On the other hand, TransCo handles the electrical transmission functions of National Power Corp. as mandated by the EPIRA, or Republic Act No. 9136.
It has the responsibility to plan, construct, and centralize the operation and maintenance of high-voltage transmission facilities.
National Grid Corporation of the Philippines -- a consortium composed of the State Grid of China (40%), One Taipan Holdings Corp. (30%) and Calaca High Power Corp. (30%) -- took over operations of the country’s transmission network in 2009 under a 25-year concession agreement with the government.
The firm bagged the right to operate assets of TransCo after submitting a winning bid of $3.95 billion in an auction conducted by the Power Sector Assets and Liabilities Management Corp. in 2008. -- Claire-Ann Marie C. Feliciano source
ASSETS
Specifically, PENELCO seeks to acquire TransCo’s Orion Tap-PNPP 69-kilovolt (kV) line; Calaguiman Tap-BPPMI 69-kV line; EPZA-Mariveles 69-kV line; and Morong substation.
PENELCO and TransCo on Dec. 29, 2011 concluded a lease purchase agreement for the STAs, under which PENELCO would pay TransCo P136,551,360.00 in 240 equal monthly installments.
“TransCo has established that PENELCO meets the technical and financial criteria to purchase, operate, maintain, upgrade, and expand the… assets which are located within its franchise area,” the notice read.
It added that PENELCO is the only qualified distribution utility connected to the assets.
The two parties said that regulatory approval will “pave the way for the attainment of a reformed electricity industry under the EPIRA (Electric Power Industry Reform Act of 2001), towards a competitive regime/cost of electricity which would ultimately best serve the interests of the consuming public.”
HEARING
The ERC has scheduled a hearing, expository presentation and pre-trial conference for the sale of the assets on Jan. 29 at 9:30 a.m. to be held at PENELCO’s main office in Balanga City, Bataan.
PENELCO distributes electricity in Balanga City and the municipalities of Dinalupihan, Hermosa, Orani, Samal, Abucay, Pilar, Orion, Limay, Mariveles, Bagac and Morong -- all located in the province of Bataan.
On the other hand, TransCo handles the electrical transmission functions of National Power Corp. as mandated by the EPIRA, or Republic Act No. 9136.
It has the responsibility to plan, construct, and centralize the operation and maintenance of high-voltage transmission facilities.
National Grid Corporation of the Philippines -- a consortium composed of the State Grid of China (40%), One Taipan Holdings Corp. (30%) and Calaca High Power Corp. (30%) -- took over operations of the country’s transmission network in 2009 under a 25-year concession agreement with the government.
The firm bagged the right to operate assets of TransCo after submitting a winning bid of $3.95 billion in an auction conducted by the Power Sector Assets and Liabilities Management Corp. in 2008. -- Claire-Ann Marie C. Feliciano source
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