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Tuesday, April 04, 2006
Speak out: Apology accepted
By Commissioner Jesus N. Clcordo
Energy Regulatory Commission
I accept the public apology of National Transmission Corp. (Transco) president Alan T. Ortiz which appeared in three Cebu City daily newspapers on March 25, 2006. I hope that Dr. Ortiz would be more careful in using information provided by his staff particularly, on sensitive matters which attack the character of other persons.
With my tenure at the Commission coming to a close by June, 2006, I would have preferred to avoid provocations and prepare for retirement. I do not have the appetite or the resources to wage a media war over an issue that a confused Transco official has to clarify.
As Dr. Ortiz prefers to ventilate his comments in media, instead of during the ongoing public hearings, I am forced to issue some clarifications through the press.
As background to readers, Transco declared the Cebu-Mactan Interconnection Project (CMIP) a network asset during the first public hearing in Lapu-Lapu City in late 2005. However, in its compliance submission to the ERC in December last year, Transco classified the CMIP as a connection asset.
In Dr. Ortiz’ letter to ERC Chairman Albano last January, Transco’s definition of a connection asset fits the CMIP as such.
Dr. Ortiz’s statements to media indicate a lack of appreciation of the process that the ERC observes in dealing with project applications. The ERC begins internal debates only after the conclusion of the public hearings.
The hearings are still ongoing on the classification of transmission facilities as to whether they are connection or network assets. As the chairman of ERC had explained in his previous press statements, the commission is duty bound to ensure that the amounts spent for a project and the consequent rates to be charged to electricity consumers are justifiable on the basis that a project is essential, adequately sized, implemented at the proper time and that the cost awarded to a contractor followed a fair, transparent and competitive process.
Excessive project costs will not be considered in the determination of rates.
It is up to Transco to make a closure of its own classification of the CMIP during the ongoing public hearings.
The ERC, as the regulator of the electricity industry, will not be deterred from carrying out its mandated role under the law.
For Bisaya stories from Cebu. Click here. (April 4, 2006 issue)
Write letter to the editor.Click here.
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