ERC oks P410 million Meralco projects

MANILA, Philippines — The Energy Regulatory Commission has cleared Manila Electric Co. (Meralco) to spend P410.45 million for six capital expenditure projects.

The amount is lower than the P450.75 million that the power distributor had applied for.

Meralco said the projects include the expansion of Bagbaguin substation worth P162.58 million, installation of 34.5-kv metal clad switchgear at Dasmariñas 83 MVA power transformer bank No. 1 worth P68.16 million, rebuilding of portion of Dasmariñas-FCIE 115-kv Line worth P25.14 million,  replacement of power transformer no. 2 at Mandaluyong substation worth P52.91 million, cut-in of Pinagbuhatan switching station worth P55.22 million and acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer worth P46.44 million.

These projects were originally filed in 2015, but were not approved due to lack of justification during that time.

However, Meralco re-filed the deferred projects to ensure continuous reliable operation of its distribution network as well as distribution service and connection to meet the growing and future needs of its customers.

While ERC approved the lower cost, the actual cost of the projects is still subject to optimization review in the regulatory reset.

“The optimization review will be done during the reset process under existing mechanism when the new distribution rates will be set. This is because optimization has to be undertaken while taking into account the entire distribution system and not facilities in specific areas only,” the ERC said.

The expansion of Bagbaguin substation was proposed to address the capacity deficiency of Meralco’s several distribution facilities.

The installation of 34.5-kilovolt  Metal Clad Switchgear at Dasmariñas 83MVA Power Transformer Bank No. 1 will address the capacity deficiency of the nearby Imus Power Transformer Bank No. 2.

The rebuilding of a portion of Dasmariñas-FCIE 115-kv Line is intended to augment the line capacity, provide operational flexibility, and enhance the reliability of the subtransmission system in the Cavite sector.

The replacement of power transformer no. 2 at Mandaluyong substation would optimize the load capacity of the Mandaluyong substation transformers, and improve the reliability and quality of service to customers in Pasig and Mandaluyong areas.

The cut-in of Pinagbuhatan switching station will increase system reliability in Meralco’s Dolores 230-kv—15-kv delivery point substation.

The acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer would also increase the system reliability of Meralco’s network.