Power retailer Manila Electric Co. is seeking approval of the Energy Regulatory Commission to implement an P18-billion capital expenditure program for fiscal year July 2017 to June 2018.
The company said the 2018 capex program was geared towards providing reliable service to customers.
Meralco said it lined up projects to ensure the safety, reliability and efficiency of the distribution system, while providing for the forecasted load growth within its franchise area.
Meralco said its 2018 capex program was driven by several factors such as adequate infrastructure to meet growth in peak demand and customer connections; refurbishment projects to ensure sustained network efficiency, power quality and reliability; compliance to statutory and regulatory requirements and support for the public-private partnership projects,
These projects include the expansion of Balibago substation (P183 million), expansion of Santolan substation (P181.9 million), development of Eton Centris substation (P461 million), development of Bridgetown substation (P552 million), development of Carmona substation (P518.7 million) and development of McKinley Hills substation (P440 million).
Meralco’s residual capex projects included distribution transformers, poles and towers distribution, information technology equipment and distribution transformers.
“In light of the resulting benefits of Meralco’s 2018 capex program in the overall service to the electricity consumers, Meralco respectfully submits that the building block component, particularly the return of capital and return on capital associated herewith, should be considered, as a deferred amount to be included in the calculation of Meralco’s next reset rates, from the time the capex is put in service an considered used and useful,” it said.
Meralco said the Electric Power Industry Reform Act required distribution utilities to provide services and connections to customers.
It said that if Meralco would have no approved capex starting July 1, “this will severely hamper its operations and affect its ability to deliver electricity service to its customers.”
“It is imperative for Meralco to undertake expansion and rehabilitation of its network facilities through acquisition of new assets to ensure continuous compliance with with safety, performance and other statutory/regulatory requirements, and to address the growing needs of its more than six million customs,” it said.
Meralco last year received an approval for a P8.757-billion capex in 2017, lower than its P15-billion application.