Wednesday, August 29, 2007 Transmission venture between Transco, 2 power coops okayed
THE Energy Regulatory Commission (ERC) has approved the sub-transmission asset (STA) contracts between the National Transmission Corporation (Transco) and Davao Light and Power Company (DLPC) and between Transco and Bohol I Electric Cooperative Inc. (Boheco I).
The ERC approved the P15 million STA contract of Transco with DLPC, a subsidiary of Aboitiz Power Corporation. It covers 14.89 circuit kilometers and 162 line structures along the Davao-Digos 69-kilovolt (KV) line in Davao.
The DLPC filed its application for STA in September 2006. DPLC's franchise area covers Davao City and the municipalities of Panabo, Carmen, Santo Tomas and Dujali.
"DPLC is qualified to take over the responsibility of operating, maintaining, upgrading and expanding the STA and the purchase price of the STA is fair and reasonable," the ERC said in its ruling.
The ERC likewise approved Transco's sale contract with Boheco I, which the company filed in April 2005, for the purchase of its STAs worth P4.211 million. The sale involves the Tagbilaran-Dauis 13.8 kV and the Tagbilaran-Cortez 13.8 kV line.
"The purchase price shall be the regulatory value of the assets which shall not be adjusted unless investments for its refurbishments or life extensions shall have been made," the ERC said.
Transco earlier entered into a P230-million contract with power distributor Manila Electric Company (Meralco) for the sale of the first batch of the STAs comprising 140.5 circuit-kilometers of lines and 1616 structures for P230 million.
The agreement covers sub-transmission lines and structures in Bulacan, Cavite, and Laguna including Cruz na Daan-Mexico; Cruz na Daan-Akle; Cruz na Daan-Balualto; Bahay Pari-Baliuag; and the lines all rated at 69 kV; and the San Jose-Bigte; Luzon Aggregates; and Norzagaray Municipal Hospital lines in Bulacan, all rated at 34.5 KV.
Also included are circuit breakers and other facilities in the Cruz na Daan and San Jose Substations in Bulacan.
Transco also sold to Meralco the Dasmarinas-Ternate, Dasmarinas-Lakeview, and Dasmarinas-Tagaytay 115-KV lines and the Ternate-Puerto Azul 34.5-KV line in Cavite and the 69-KV Caliraya-Meco Sta. Cruz line in Laguna.
Meralco is the 15th distribution utility in Luzon and the 39th in the country to enter into a divestment agreement with Transco. Including the sale to Meralco, Transco has so far sold about P2.4 billion worth of STAs.
Transco president Arthur Aguilar said the divestment is part of the corporation's efforts to pursue power sector improvements as mandated by the Electric Power Industry Reform Act (Epira) of 2001.
Both Transco and Meralco are working on the divestment of a second batch of sub-transmission assets worth P600 million. (MSN/Sunnex)
