Leyeco V applies for P1-B Capex

November 26, 2011 12:59 am 

ORMOC CITY, Nov. 25 — Leyte-V Electric Cooperative, Inc. (Leyeco V) plans to spend P1.05 billion for its expansion projects in the next five years.

In its application before the Energy Regulatory Commission (ERC), Leyeco V said the biggest chunk of its capital expenditures (capex) will go to sub-transmission development, which entails the acquisition of 69kilo volt (kV) lines for the Lemon-Biliran, Milagro-Ormoc and Ormoc-Talisayan lines.

Aside from lines acquisition, the sub-transmission development will also involve construction of lines to Leyeco V’s substations in Mahayag, Isabel; Simangan, Ormoc; Talisayan, Albuera; Libongao, Kananga; Tabango-Palompon; Isabel-Palompon, as well as the refurbishment of the National Grid Corp. of the Philippines (NGCP) line to Leyeco V’s substation in Tabango.

The second biggest cost of the DDP involves development of substation. Leyeco V said that four of its five substations would exceed the 70 percent maximum rated capacity by 2014. Hence, additional capacity is needed with the construction of new substations in Ormoc (20MVA), Palompon (10MVA) and Kananga (5MVA).

The third biggest cost is the renewal projects. Leyeco V plans to fix the undersized line conductors as well as overextended secondary lines and service drop wires so that its 13.04 percent systems loss will be reduced to a single digit mark. It also wants to replace 25,737 defective meters and 3,775 dilapidated poles.

If the DDP is not implemented, Leyeco V System Planner Engr. Michael Guiñarez forecasts that the system loss will gradually increase to 18.4% in 2020 based on their simulation. Consumers will bear the systems loss which will be reflected on their electric bill.

Leyeco V will also improve its main office; construct new multi-purpose building, renovate engineering building and warehouse, acquire 16 units utility truck and four units boom truck.

It also hopes to upgrades its information technology and equipment that include computers and accessories, radio repeater and other gadgets.

Meanwhile, the National Association of Electricity Consumer for Reforms (Nasecore) opposes Leyeco-V application for the slightly more than P1 billion capex.

Nasecore Regional Coordinator Butch Celestial in a position paper said the Capex should be opposed as it comes with a rate increase of 7719¢ per kwh in the form of the Members’ Contribution for Capital Expenditures (MCC) as contained in Leyeco V’s application to the ERC.

Celestial believes that before Leyeco V’s Capex is approved, it should be made to account for the patronage capital contributions paid by consumers through their monthly bills. He cited Leyeco V’s annual budgets of P15,424,556 for debt servicing and P19,463,750 for reinvestment.

ERC approved these budgets on Feb. 27, 2004 to be charged to consumers through its distribution, supply and metering charges until December 2009. In January 2010, the patronage capital contributions have been replaced by the MCC in the amount of 2904 centavos per kWh. Under Leyeco V’s new application, this will increase by 7719centavos for a total of P1.0623/kWh. (PNA) RMA/FNC/utb


Comments are closed.