Thursday, October 23, 2008 Buseco wary of Cepalco's proposed tie line By JB R. Deveza
OFFICIALS of Bukidnon II Electric Cooperative Inc. (Buseco) are viewing a neighboring electric utility's plan to build a tie line -- the electrical line that transmits electricity from a power plant to a distributor -- with suspicion, saying they are fearful the neighboring electric utility may encroach on their franchise area in the future.
Rolando E. Galarrita, chairman of the Multi-Sectoral Electrification Advisory Council (MSEAC), an organization of Buseco's member-consumers and organized by Buseco, told Sun.Star Cagayan de Oro that the proposed tie line would pass through five barangays covered by the franchise of Buseco.
These are Ala-e, Lunokan, Damilag, Mambatangan, and Agusan Canyon.
"Certain parts of the power supply agreement pending before the Energy Regulatory Commission (ERC) between Cepalco and FG Bukidnon are confidential," Galarrita said.
"We fear they (Cepalco) may have a hidden agenda," Galarrita said.
The Cagayan Electric Power and Light Company Inc. (Cepalco) and FG Bukidnon Power Corporation (FGBPC), following the signing of a power supply agreement (PSA) early this year, are seeking the ERC's approval of the PSA.
Under the agreement, signed by Cepalco and FGBPC on January 9, 2008, the latter will supply all the electricity generated from its 1.6 megawatt Agusan Hydro Electric Plant to Cepalco until March 28, 2025.
A salient part of the PSA includes the construction and commissioning of an 8.7-kilometer tie line, estimated to cost about P6.7 million, that would directly link the power plant to Cepalco.
Cepalco and FGBPC currently utilize a similar line owned by the National Transmission Corporation (Transco) in transmitting electricity from the power plant to Cepalco's distribution network.
Should the plan to construct the tie line push through, Galarrita said there might be three similar transmission lines in the future as Buseco is eying on building a similar line next year.
But Jose Edgardo Y. Uy, Cepalco vice president, said the concerns of Buseco is unfounded as the tie line from FGBPC to the Cepalco distribution network is a dedicated line, meaning its purpose is merely transmission.
"The Transco line that we are using now is not a dedicated line," Uy said.
"In fact, three other industrial customers are connected to that line which is one of the causes of its unreliability," Uy added.
Uy said one of the benefits of having its own transmission line directly connected to the power plant is increased reliability. Under the plan, Cepalco will have control with regard to repair and maintenance of the proposed tie line aside from having the line all by itself.
A dedicated line also ensures the integrity of the system as failures from any one of the industrial customers using the same Transco line can be avoided.
The building of the tie line is also allowed under the Electric Power Industry Reform Act of 2001 (Epira), Uy said, as there will be no redundancy of transmission lines, the proposed tie line being a dedicated line.
"They (Buseco) need not worry that we (Cepalco) may encroach in their franchise area as this needs not only their consent but also the ERC's," Uy said.
"What we are after is increased reliability of our system," Uy added. (With reports from Cong Corrales)
