ERC Oks half of Meralco’s 2017 capex

MANILA, Philippines - The Energy Regulatory Commission (ERC) has initially approved nearly half of Manila Electric Co.’s capital spending in 2017 for priority projects amounting to P8.76 billion.

Meralco disclosed yesterday it received the ERC clearance for its capital expenditure for regulatory year (RY) 2017, which starts on July 1, 2016 and ends on June 30, 2017.

Based on the ERC approval, Meralco was granted provisional authority to implement nine major projects and 37 residual projects it applied for.

Total cost for the major projects amount to P1.03 billion while the residual projects cost P7.73 billion.

Originally, the power distributor applied for a P15.4-billion capex for the period, which covers 23 major projects and 83 residual projects.

In a text message, ERC spokesperson Floresinda Digal said the approval is still provisional, meaning it is not yet the decision or the resolution for Meralco’s whole application as the case is still being heard.

“The Commission, in provisionally approving only some of the 2017 capex projects of Meralco, prioritized projects that will ensure Meralco’s ability to provide continuous safe and reliable service to its customers,” she said.

The major projects initially approved are for maintaining, expanding and improving Meralco facilities and assets. These include the P87.99-million uprating of San Miguel 20 MVA Power Transformer Bank; P204.29-million expansion of Sta. Maria 115 kv-34.5 kv Substation; P142.36-million expansion of Cubao 115 kv-34.5 kv GIS Substation; P216.58-million expansion of CPIP 115 kv-34.5 kv Substation; P118.25-million uprating of 115-kv Power Circuit Breakers at Balintawak Substation, P143.04-million construction of Binan-Rohm-LIIP 115 kv Line; P57.64-million replacement of Power Transformer No. 2 at Marikina Substation; and P57.64-million replacement of Power Transformer No. 1 at Malibay Substation.

It also covers the relocation of Meralco’s electrical facilities affected by the construction of government’s public-private partnership (PPP) projects, namely the C-6 Extension Flood Control Dike Expressway or Laguna Lakeshore Expressway Dike, NLEX-Connector Road along PNR tracks, Cavite Laguna Expressway, LRT 1 Extension and LRT 2 East Extension.

Meanwhile, the residual projects are necessary to cater new loads and support the daily operations and maintenance of the distribution network.

Previously, the ERC approved P15.47 billion as Meralco’s capex for RY 2016, lower than the P17.5-18.5 billion applied for.

ERC chairman Jose Vicente Salazar said they decided to cut and defer some of the applied spending per project, resulting in a slightly lower budget than what Meralco had asked.