Officials from the Energy Regulatory Commission will conduct a public hearing on the application of the Central Negros Electric Cooperative for a multi-year capital expenditure (CapEx) plan, worth P1.4 billion, at the Ceneco compound in Bacolod City on August 16.
Based on ERC Case No. 2018-018 RC, the government agency will conduct a public hearing to determine Ceneco’s compliance with the jurisdictional requirements, conduct of expository presentation, pre-trial conference, and presentation of evidence.
Division head Leonel Tambanillo of Ceneco’s Corporate Planning said yesterday that the hearing will determine the electric cooperative’s compliance with the requirements for proceeding to the further stages for CapEx application.
The ERC document published in the DAILY STAR last week also said that Ceneco will apply for CapEx for the years 2014 to 2019, with total projects estimated at P1,389,336,924.
This P1.4B CapEx application includes 29 projects and some have already been done as those include those done since 2014.
The actual cost Ceneco proposes for their application in 2014 was P101,982,536, P74,468,248 in 2016 and estimated cost of P149,011,593 in 2016, P579,967,772 in 2017, and P188,047,575 this year, the document also said.
Among the projects that Ceneco listed in its application is the construction of the new Murcia substation worth P52 million, construction of Alijis substation worth P51 million, and construction of the New Capitol Substation worth P102 million.
Tambanillo said the projects done in the past years that were covered in their application were funded through bank loans and funds of Ceneco.
The document also said that Ceneco plans to get financing for its capital projects under their application for CapEx through Reinvestment Fund for Sustainable Capital Expenditures rate approved by ERC, that is pegged at P714,042,925, and loans from the National Electrification Administration and other banks worth P533,058,582 and P142,235,417, respectively.
It added that, based on the initial rate impact computation, there will be an indicative rate impact of about P0.0633 per kilowatt-hour for Ceneco to finance all its CapEx projects while maintaining its viability.
Tambanillo also said that everyone is welcome to the public hearing of the ERC next week, especially Ceneco consumers.
He added that, apart from this 2014 to 2019 application, they still have a pending application for the 2011 to 2013 CapEx worth P500 million, awaiting ERC’s decision.*MLG
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