ERC okays capex for distribution utility

The Energy Regulatory Commission (ERC) has granted the emergency capital expenditures (capex) petitioned for by the Clark Electric Distribution Corporation (CDEC) for its Roxas substation project.

The capital outlay application is for the relocation of the Diamante substation to the Roxas district and the replacement of the old 25-megavolt ampere (MVA) 69 kilovolt-13.8kV power transformer – with the installation of a higher capacity 50MVA 69kV-13.8kV power transformer.

The project commands an investment of R198.5 million and it is intended to be financed through the utility firm’s internally generated cash.

The ERC in its ruling, has noted that “the relocation is due primarily to the Clark International Airport Corporation’s plan to construct an additional runway that involves the dismantling of the existing Diamante substation.”

ERC Chairman Jose Vicente B. Salazar said the approval of CEDC’s emergency capex will enable it “to fulfill its mandate of providing reliable service connection to existing and new consumers.”

He noted that the expansion of infrastructure facilities must be underpinned by reliable electricity service and that could only be attained with corresponding investments of servicing power utilities.

The project already commenced construction and is due for completion next year, according to the power industry’s regulatory body.

“The approval of the project considered that the existing substation is expected to be critically loaded at 100 percent by 2020,” the ERC has expounded.

The regulatory body further emphasized that “the opportunity to uprate the power transformer together with the relocation is a wise strategic engineering practice and that would prove advantageous to CEDC and its customers.”

The ERC noted that it saw “the need to augment the transformers to enable CEDC to cater its existing and upcoming loads and demands to be brought by the CIAC’s extension.”