(The Philippine Star) | Updated July 30, 2016 - 12:00am
MANILA, Philippines -
The Energy Regulatory Commission (ERC) has initially approved nearly half of
Manila Electric Co.’s capital spending in 2017 for priority projects amounting
to P8.76 billion.
Meralco disclosed
yesterday it received the ERC clearance for its capital expenditure for
regulatory year (RY) 2017, which starts on July 1, 2016 and ends on June
30, 2017.
Based on the ERC
approval, Meralco was granted provisional authority to implement nine major
projects and 37 residual projects it applied for.
Total cost for the
major projects amount to P1.03 billion while the residual projects cost P7.73
billion.
Originally, the power
distributor applied for a P15.4-billion capex for the period, which covers 23
major projects and 83 residual projects.
In a text message, ERC
spokesperson Floresinda Digal said the approval is still provisional, meaning
it is not yet the decision or the resolution for Meralco’s whole application as
the case is still being heard.
“The Commission, in
provisionally approving only some of the 2017 capex projects of Meralco,
prioritized projects that will ensure Meralco’s ability to provide continuous
safe and reliable service to its customers,” she said.
The major projects
initially approved are for maintaining, expanding and improving Meralco
facilities and assets. These include the P87.99-million uprating of San Miguel
20 MVA Power Transformer Bank; P204.29-million expansion of Sta. Maria 115
kv-34.5 kv Substation; P142.36-million expansion of Cubao 115 kv-34.5 kv GIS
Substation; P216.58-million expansion of CPIP 115 kv-34.5 kv Substation;
P118.25-million uprating of 115-kv Power Circuit Breakers at Balintawak
Substation, P143.04-million construction of Binan-Rohm-LIIP 115 kv Line;
P57.64-million replacement of Power Transformer No. 2 at Marikina Substation;
and P57.64-million replacement of Power Transformer No. 1 at Malibay
Substation.
It also covers the
relocation of Meralco’s electrical facilities affected by the construction of
government’s public-private partnership (PPP) projects, namely the C-6
Extension Flood Control Dike Expressway or Laguna Lakeshore Expressway Dike,
NLEX-Connector Road along PNR tracks, Cavite Laguna Expressway, LRT 1 Extension
and LRT 2 East Extension.
Meanwhile, the residual
projects are necessary to cater new loads and support the daily operations and
maintenance of the distribution network.
Previously, the ERC
approved P15.47 billion as Meralco’s capex for RY 2016, lower than the
P17.5-18.5 billion applied for.
ERC chairman Jose
Vicente Salazar said they decided to cut and defer some of the applied spending
per project, resulting in a slightly lower budget than what Meralco had asked.
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