NGCP seeks ERC go-signal on P8.05-B capex disbursement

by Myrna Velasco – February 3, 2016

from Manila Bulletin

System operator and transmission service provider National Grid Corporation of the Philippines (NGCP) is seeking regulatory approval on the disbursement of its programmed capital expenditure of P8.051 billion this year.

The pipelined capital outlay covers infrastructure upgrade projects, asset acquisitions; as well as for maintenance and replacement of transmission lines and equipment.

The company indicated that it is seeking the Energy Regulatory Commission’s (ERC) immediate go-signal “to avoid disruption of operation and non-compliance with its mandate.”

In particular, it prays that it be granted provisional authority to implement its planned capex projects for the year.

The ERC has scheduled public hearing and presentation on this application on April 2 this year.

The third regulatory reset of the transmission firm under performance-based regulation (PBR) lapsed December this year.

And while NGCP has yet to file its fourth PBR reset, it has been batting for implementation of projects that could keep its service on tip-top condition.

“NGCP has yet to undergo its regulatory reset for the 4th RP (regulatory period) as it is still awaiting the Commission’s paper to guide NGCP in the submission of its 4th RP application,” the company said.

It qualified that notwithstanding the absence of final determination on its maximum allowable revenue at this time, the company is still mandated “to ensure and maintain the quality, reliability, security, stability, and integrity of the nationwide grid.”

Among the projects it cast to implement this year are the Tiwi substation upgrading project; Naga substation upgrading project; Clark-Mabiga 69-kilovolt (kV) transmission line project; Bataan 230 kV grid reinforcement project; and the Hermosa-San Jose 500kV transmission line project.

For the assets acquisition, the company noted that these would support load growth in various identified areas.

The others on its project roster are the installation, rehabilitation, replacement, and acquisition of spare high voltage equipment as well as protection and secondary devices.

NGCP will also need to procure test and maintenance equipment, transmission line maintenance; improvement of substation facilities, and non-network assets, among others.