ERC sets hearings on Meralco’s capex linked to DOTr projects

The Energy Regulatory Commission (ERC) is scheduling next month series of public hearings on the P2.344 billion worth of capital expenditures (capex) that power utility giant Manila Electric Company (Meralco) will be utilizing to install new facilities as well as relocate its assets that will be affected by the Build-Build-Build (BBB) projects of the Department of Transportation.

The regulatory body slated the hearings on August 23 and 30 this year; and it also directed relevant stakeholders to submit their comments and clarifications at least one day prior to the scheduled virtual hearings.

The initial application of Meralco for its BBB-linked installations that will go along with the implementation of the DOTr projects had been initially thumbed down, but the ERC stipulated that it had eventually seen “the importance of the projects,” hence it granted reconsideration to the initial plea of the power utility company.

The DOTr projects which will be implemented along with the propounded Meralco facilities, would be the: Philippine National Railways (PNR) 1 and 2 projects; PNR South Commuter and PNR South Long Haul developments.

The Commission thus directed Meralco that its projects “be implemented together with the relocation of the affected facilities to be able to take full advantage of the excavation activities that already include the civil works needed for reliability and future load growth requirements of Meralco.”

To be integrated with the Meralco projects, according to ERC, would be the construction of underground distribution facilities to address the reliability and load-growth requirements simultaneous with the implementation of the DOTr relocation projects.”

The regulatory body said the timing of Meralco’s project implementations could be enforced more efficiently if the PNR projects are still being constructed, rather than postponing them to a later timeframe.

“Meralco may no longer be able to secure rights-of-way (ROW) and work permits from PNR if it defers implementation of its reliability and load growth requirements after the railway system is already operational,” ERC said, adding that “this will cause disruption in the operations of the railway project, and more importantly, excavations near the project will not be permitted.”

ERC similarly noted that if the Meralco projects will be deferred, “there will be multiple planned power interruptions due to construction of additional underground civil works that will affect existing overhead facilities.”

In addition, the ERC cited highly probable “inconvenience to the general public due to road closure, traffic congestion and impact to other public utilities,” including those on water lines, telecommunications facilities as well as cable services.”

The industry regulator thus pointed out that “the construction and implementation of the Meralco projects must follow the schedule of the relocation of the affected facilities.” (MMV)