Kepco-SPC Power Corp. has been given the green light by the Energy Regulatory Commission (ERC) to start using P52 million worth of transmission facilities in the delivery of power from its 200-megawatt coal-fired power plant in Naga, Cebu, to the Visayas grid.
The ERC said the decision would result in a “reliable, continuous and sufficient supply of power at reasonable costs.”
The ERC also said Kepco-SPC’s use of the facilities owned by National Grid Corp. of the Philippines would have no rate impact on the company’s customers—distribution utilities and electric cooperatives—since existing power supply contracts already covered the cost of point-to-point transmission.
Kepco-SPC has power supply deals with Mactan Electric Co., VMC Rural Electric Service Cooperative Inc. (Vresco), Negros Oriental 2 Electric Cooperative Inc. (NorecoII), Negros Oriental 1 Electric Cooperative Inc. (Noreco I), Cebu I Electric Cooperative Inc. (Cebeco I), Cebu II Electric Cooperative Inc. (Cebeco II), Central Negros Electric Cooperative Inc. (Ceneco) and Negros Occidental Electric Cooperative Inc. (Noceco).
According to the ERC, the use of the 138-kilovolt transmission line proved to be more economical and prudent for Kepco-SPC than using the facilities of another power plant.
It said the power from Kepco-SCP would also contribute to the so-called N-1 contingency of the Visayas grid. “N-1 contingency” refers to the ability of a power grid to withstand the loss of a major system component with minimal disruption to the grid.