In an order, ERC said it has allowed SFELAPCO, a Pampanga-based electric power distribution firm, "to install and operate additional two 69-kilovolt (kv) and 13.8-kv lines to be built for its distribution system."
The ERC said an analysis of SFELAPCO’s financial position showed it is capable of financing said projects on their own or through soft and long-term loans.
In approving SFELAPCO’s petition, the ERC noted that the projects will promote public interest in general and will redound to the benefit of the customers of SFELAPCO in particular, by way of continuous, efficient and reliable electric service and power supply.
Transco has been waiting for this particular ERC order as this will set a precedent or will serve as a model on the sale of other Transco STAs as this is the first STA sale approved by the ERC.
Totaling approximately 12 kilometers, the sub-transmission lines covered by the sale to SFELAPCO are the Mexico-SFELAPCO line, Mexico-SMC line, and the Mexico-Elegant line, all rated at 69 kilovolts.
Transco and SFELAPCO embarked on a joint inspection and inventory of the lines together with representatives from the Commission on Audit. The valuation of the lines on the other hand, was based on guidelines set by the ERC last Oct. 17.
In order to promote the sale of as much as P8 billion worth of its STAs, Transco has offered its STAs to electric cooperatives via the lease purchase financing program. Under this scheme, electric cooperatives will be allowed a downpayment equivalent to just 20 percent of the selling price of these assets, with the balance spread out via installment in a period not exceeding 75 percent of the remaining life of the assets.
Transco will turn over the responsibility of operating and maintaining these assets to the electric cooperatives upon payment of the 20- percent downpayment but will only transfer ownership of the assets once the electric cooperatives have completely paid the total sale amount.