Transco president Alan Ortiz reported that Transco signed an agreement with San Fernando Light and Power Co. (SFELAPCO) in Pampanga for the sale of subtransmission lines in the province.
"SFELAPCO has shown that it is technically and financially capable to efficiently manage our subtransmission lines. This is another important milestone in energy sector reforms under the leadership of the DOE and President Arroyo," Ortiz said.
Ortiz said the transfer of ownership and control of these sub-transmission assets will now enable SFELAPCO to further expand its operations, improve its service, and serve more customers.
The agreement also allows Transco to concentrate on its transmission function in the area as envisioned by the Electric Power Industry Reform Act (EPIRA) of 2001.
Totaling approximately 12 kilometers, the sub-transmission lines are the Mexico-SFELAPCO line, Mexico-SMC line, and the Mexico-Elegant line, all rated at 69 kilovolts.
Transco and SFELAPCO embarked on a joint inspection and inventory of the above mentioned lines together with representatives from the Commission on Audit.
The valuation of the lines was based on guidelines set by the Energy Regulatory Commission last Oct. 17.
Ortiz said Transco is also in talks with the Tarlac Electric Cooperative, Cabanatuan Electric Cooperative, Angeles Electric Inc., Tarlac II Electric Cooperative, and Pampanga I Electric Cooperative, for the same arrangement.