The Manila Electric Co. (Meralco) is seeking regulatory approval to implement its capital expenditure (capex) program worth about P24.73 billion for regulatory year (RY) 2022, or from July 2021 up to June 30, 2022.
In its nine-page application filed with the Energy Regulatory Commission (ERC), the utility firm has lined up 110 projects during the period. Of which, 32 are major capex projects worth P7.952 billion while 78 are residual projects worth P16.722 billion.
The most expensive among the 32 major projects is the development of the P1.64-billon Antipolo substation. Other projects include the P725.93-million Retail Competition and Open Access (RCOA) meter conversion and system support, construction of the P685.3-million CND-Alagao line and the P633.7-million development of the San Joaquin substation.
For the residual projects, Meralco has allotted P3.6 billion for distribution transformers; P3.2 billion for poles, towers and fixtures; and P870 million for meters and metering transformers.
Meralco said these capex projects are necessary to avert foreseen emergency situations and ensure the reliable operation of its distribution network and continuous distribution service and connection to meet the growing needs of its more than seven million customers.
Meralco forecasts its customer base to expand to more than 7.5 million customers and peak demand to grow. Customers will require Meralco to increase the capacity of the electric distribution system to continue accommodating customers’ connections, while maintaining the reliability and power quality of its distribution system.
“If no capacity augmentation project is undertaken starting July 1, Meralco would not be able to provide electric service to its existing and new customers,” said Meralco.
If Meralco’s application is not approved, it will “severely hamper Meralco’s operations and severely affect its ability to deliver electric service to its customers.”
As such, Meralco said it is imperative to implement its RY2022 capex projects starting July 1 for the expansion and rehabilitation of its network facilities through the acquisition of new assets to ensure continuous delivery of reliable service and comply with safety, performance and other statutory/regulatory requirements, while addressing the growing needs of its more than 7 million subscribers.
“It is more respectfully prayed to this Honorable Commission that the instant application for authority to implement Meralco’s proposed capex program for RY 2022 be approved and that capex to be put in service be considered in the calculation of Meralco’s next regulatory rates.
Pending hearing, it is likewise prayed that a provisional authority or interim relief be immediately issued authorizing Meralco to implement its RY 2022 capex program,” the utility firm said.
As of end-June this year, Meralco’s total capex was 91 percent higher than 2020 largely due to catch-up capex implementation efforts. To date, P109 billion of capex for RY 2016 onwards have been filed with the ERC for approval. Of the total amount filed, the ERC partially approved a total of P24.2 billion for RY 2016 and 2017 while P51.3 billion has been manifested last March as “urgent” to allow Meralco to implement such capex proposals immediately.
