The Energy Regulatory Commission has allowed power distributor Manila Electric Co. to retire five substations in Cavite, Lucena, Pagbilao, Forbes Park and Tondo and to convert their old voltage systems to the standard system to further reduce its system losses in these areas.
“A perusal of evidence present showed that the retirement of the substations as well as the withdrawal of the equipment and machinery installed will redound to the benefit of Meralco’s consumers in terms of reliable and efficient power supply,” the commission said in a decision.
The retirement of the P25 million worth of assets was in pursuit of Meralco’s conversion program, which will give way to the development of the 20 kilovolt/34.5-kv distribution system in these areas.
In particular, Meralco has programmed the gradual conversion of odd voltage systems, or the distribution system with voltages other than 34.5 kv or 13.8 kv, to the so-called “ultimate standardized 20 kv/34.5 kv distribution voltage system” within its franchise area.
“The objectives of voltage standardization are to minimize equipment inventory types, reduce technical system loss and improve the flexibility and reliability of electric service by phasing out isolated odd-voltage systems,” Meralco said. For this year, Meralco targets to allocate P10 billion to P11 billion for its capital expenditure program.
Oscar S. Reyes, senior executive vice president and chief operating officer of Meralco, earlier said the bulk of the amount would be used for electric capital projects such as substation facilities, transformers, and distribution lines.
This move, according to Reyes, would ensure that Meralco would continue to have a robust distribution system despite the expected increase in the power load over the next few years.
Last year, Meralco had allocated P9 billion for its capex, which saw the construction of new distribution lines to address critically loaded distribution circuits, conversion of odd-voltage systems to the standard 34.5 kilovolt distribution system, improvement of switching flexibility of distribution feeders and replacement of defective power transformers.
The completion of the development of the New Calamba Substation, the expansion of Diliman and Legazpi Substations, and the commissioning of three new 115 kV sub-transmission lines are being completed in the last quarter of 2011.