Visayan Electric Co. (VECO) is seeking approval from the Energy Regulatory Commission (ERC) for its capital expenditure (capex) program amounting to P4.273 billion.
Bulk of the capex covers network projects amounting to P962.443 million, followed by other network projects at P577.277 million and non-network projects amounting to P124.523 million.
VECO, a subsidiary of Aboitiz Power Corp., said in its filing with the ERC that in case its capex program is approved, the estimated rate impact to its customers is around P0.1661 per kilowatt-hour.
It is the power distributor of Naga, Talisay, Cebu and Mandaue and in the municipalities of San Fernando, Minglanilla, Consolacion and Lilo-an in Cebu province.
VECO said the rate impact is only indicative and would be finalized during its rate reset process.
“To pursue its mandate under the EPIRA [Electric Power Industry Reform Act], it is necessary for Visayan Electric to continuously invest in the improvement of its system and services to better serve its customers,” the company said.
VECO’s capex projects include the Pakna-an substation rehabilitation which is one of the earliest substations built within the franchise area. Its rehabilitation will ensure the safe and reliable operation of the equipment in the substation during normal operation and contingency situations.
It also includes the installation of the New Mambaling Substation power transformer to address potential substation capacity deficiency of the interconnected group of substations.
Other capex projects include the installation of the Subangdaku Substation project, installation of meters, voltage correction and capacitor bank installation and maintenance, line rehabilitation and maintenance.
VECO’s capex also involves the New Visayan Electric Naga substation and other related south subtransmission capacity addition projects to augment the transformer capacity and address the reliability deficiency in the Southern-most area of its franchise.
VECO will also construct the 69KV Line New (Cross Country Route) (Naga-Sibonga Line Extension) to address the capacity deficiency by reconnecting the existing line to another substation.
