TransCo sells P11.16-M worth of sub-transmission assets

State-run National Transmission Corp. (TransCo) has sealed another sale agreement for its sub-transmission assets (STAs), this time with Cabanatuan Electric Corp. (Celcor).

TransCo signed a deed of absolute sale finally transferring the ownership of P11.16- million worth of STAs from TransCo to the private distribution utility.

This was the second sub-transmission sale package approved by the Energy Regulatory Commission (ERC) following the deal with San Fernando Electric Light and Power Co. (Sfelapco) in the first quarter this year.

Under the terms of the sale contract, Celcor has to pay 30 percent of the purchase price as downpayment upon signing of the deed of conditional sale for the Cabanatuan-Celcor 69-kilovolt sub-transmission line two years ago.

Following the contract’s approval by the ERC and the finalization of the deed of absolute sale, Celcor may now pay the balance of about P7.81 million.

The regulatory body’s approval is required before any divestment contract becomes effective.

To date, P1.94-billion worth of STAs have been sold to 34 distribution utilities representing 37 sale packages since TransCo started its STA divestment program in January 2004.

TransCo president Arthur N. Aguilar said he remains optimistic that ERC will soon approve the rest of the sale packages submitted to ERC for approval.

"Many reforms in the electric power industry are already underway. TransCo, for its part, will continue to divest these assets and work closely with distribution utilities to give better service to customers," Aguilar said.

The transfer of ownership and control of the STAs will now enable Celcor to expand its operations, improve its service, and serve more customers. On the other hand, this would also allow TransCo to concentrate on its high-voltage transmission functions in the area.

The contract involves the outright sale of 129 structures of TransCo’s sub-transmission assets in Cabanatuan. The 69-kilovolt line sold to Celcor spans 7.56 circuit-kilometers.

The divestment of TransCo’s sub-transmission assets is part of the energy industry reforms mandated by the Electric Power Industry Reform Act of 2001.