THE National Grid Corp. of the Philippines (NGCP) has P93.68 billion in proposed capital expenditure (capex) projects awaiting approval from the Energy Regulatory Commission (ERC).
The ERC reviewed the 13 proposed capex projects submitted by NGCP, covering 2021–2025, during its open commission meeting on Thursday.
Alvin Jones M. Ortega, acting director at ERC’s regulatory operations service, said immediate approval of the projects is needed to allow NGCP to proceed.
Some of NGCP’s large-scale projects yet to obtain approval include the P44.41-billion Cebu-Leyte Interconnection Lines 3 and 4 Project; the P15.85-billion Sta. Maria 500kV Substation Project; the P10.47-billion Barotac Viejo-Unidos 230kV Transmission Line Project; and the P4.12-billion Pinamucan 500kV Substation Project.
The grid operator is also proposing the P3.91-billion Magalang 230kV Substation Project; the P2.79-billion Masiit 230kV Collector Station Project; the P2.67-billion Malaya 230kV Collector Station Project; the P2.6-billion Luzon Voltage Improvement Project 5; and the P2.52-billion Bolo 5th Bank Project.
The list also includes the P2.12-billion Dasol 230kV Substation Project; the P1.08-billion Plaridel 230kV Substation Project; the P733.92-million Tuguegarao-Enrile 69kV Transmission Line Project; and the P403.25-million Visayas Mobile Capacitor Bank Project.
According to Mr. Ortega, the projects were filed under NGCP’s fifth regulatory period (RP) rate reset, spanning 2021 to 2025.
“The due process under the 5th RP application is still ongoing so we are still not able to finalize…but because of NGCP’s intent to already pursue and start the implementation of certain projects that are under this application, they have submitted this motion for issuance of intent relief,” he said.
The rate reset process is typically a forward-looking exercise requiring the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period.
The ERC then assesses the entity’s actual performance and adjusts rates as needed.
Under the Electric Power Industry Reform Act of 2001, the grid operator must seek ERC approval for any planned expansion or facility improvement, in line with its mandate to build, finance, and enhance the nationwide transmission system and grid.
ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan earlier said the agency hopes to issue a ruling on NGCP’s pending capex projects within the month.
Reacting to this, NGCP Spokesperson Cynthia P. Alabanza said the move is “more than welcome” as it will allow the company to pursue its projects.
“As we’ve been saying throughout the years, we really want expedited and on-time regulatory approvals because that will help NGCP fulfill its mandate,” she said. — Sheldeen Joy Talavera
