Meralco to retire Laguna substation

Danessa Rivera (The Philippine Star) - March 13, 2021 - 12:00am
https://www.philstar.com/business/2021/03/13/2083883/meralco-retire-laguna-substation

MANILA, Philippines — Manila Electric Co. (Meralco) is seeking to retire one of its oldest substations in Laguna to further bring down system loss and enhance its power distribution service.

In a filing with the Energy Regulatory Commission (ERC), Meralco is asking for approval to retire the 24-year-old Los Baños substation located inside a lot owned by the University of the Philippines (UP).

“Los Baños substation is one of the oldest Meralco odd voltage substations (with voltage other than 34.5 kilovolt or 13.8 kV) and has been in service for more than 24 years,” it said.

Meralco said there will be no impact on the power services to customers served by the said substation since loads can be transferred in adjacent source circuits.

The retirement of the facility is part of the power distributor’s Odd-Voltage Conversion Program to standardize voltage systems for the company’ss entire franchise area.

“The voltage standardization will reduce technical system loss, improve flexibility and reliability of electric service by phasing out isolated odd voltage systems and minimize equipment inventory types,” Meralco said.

System loss refers to unbilled power caused by pilferage and physical loss of energy when electricity passes through distribution lines.

As of end-2020, Meralco’s system loss stood at 6.08 percent, which is 0.54 percent points higher than 5.54 percent at end-2019 due to the effect of unbilled sales and due to shift in sales mix towards higher loss-to-serve residential segment.

The year-end system loss, however, is still below the system loss cap at seven percent for privately-owned distribution utilities set by the ERC.

Meanwhile, the power utility firm also asked the power regulator to allow it to withdraw equipment and machinery in the said substation worth P19.6 million to be reused for distribution services.

Moreover, the lease agreement with UP is set to expire in May this year. “As such, applicant will need sufficient time to effect the withdrawal and retirement of the assets in the Los Baños substation,” Meralco said.

Last year, the ERC allowed Meralco to retire the 45-year-old Makati substation located at the corner of Kakarong St. and Pablo Ocampo Sr. Ave. extension.