Saturday, May 10, 2008 Transco to bail out transmission lines By Ryan Rosauro
OZAMIZ CITY -- The National Transmission Company (Transco) could raise more than a billion pesos under a plan to divest ownership of its 69-KVA sub-transmission lines in the Zamboanga Peninsula in favor of rural electric cooperatives.
Ruben Conti, Transco's northwestern Mindanao department manager, said the divestment plan is part of Transco's mandate under the Electric Power Industry Reform Act (EPIRA) enacted in 2001.
Under the plan, some 1,200 circuit kilometers of 69-KVA sub-transmission lines were offered for acquisition to seven electric cooperatives in the northwestern Mindanao region.
According to Ernie Daluz, chief of Transco's sub-transmission divestment department, the lines could cost an average of P1 million per circuit kilometer.
But Daluz allayed fears the cost of acquiring the assets on the part of electric cooperatives could lead to increase in the rates of retail power.
He explained that Transco's sale of the lines to electric cooperatives carry concessional terms with payment period lasting up to 20 years.
Conti said under EPIRA, ownership of the sub-transmission lines could only be divested to the electric cooperatives serviced by these assets.
"If they (electric cooperatives) are not interested to own the (sub-transmission) lines, Transco will be forced to continue maintaining and operating these," Conti clarified.
At present, Transco bills electric cooperatives connection charges in relation to their use of the sub-transmission lines.
If they acquire the lines, the charges will be foregone, and they will be responsible for maintaining the lines, said Conti.
Presently, Transco maintains and operates 138-KVA and 69-KVA lines. The 138-KVA lines connect the power grid with the power generation facilities; the 69-KVA lines carries power supply towards local utilities responsible for retail distribution.
In Pagadian city, the Zamboanga del Sur I Electric Cooperative (Zamsureco-1) had expressed interest in acquiring the two sub-transmission line stretches servicing its power wheeling needs from Transco.
But Jose Raul Saniel, Zamsureco-1 general manager, said they could only do so if Transco allows "a special mode of payment."
Saniel estimates the acquisition cost at P55 million, proposing to pay only P11 million down payment with the balance spread throughout 20 years.
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