The sale follows closely on the heels of the first ever sale of Transco’s sub-transmission assets to San Fernando Electric Light and Power Co. (Sfelapco) in January this year.
Transco said it has signed agreements for the sale of about 27 circuit-kms of sub-transmission lines to Cabanatuan Electric Corp. (Celcor) and Angeles Electric Corp. (AEC).
Celcor and AEC purchased assets worth at P11.16 million and P16.17 million, respectively.
The deeds of conditional sale were signed during the Cabanatuan City and Angeles City legs of Transco’s ongoing 13-city roadshow to promote the Luzon Power Development Program.
Representing Celcor during the Cabanatuan City signing were its president and CEO Belen E. Vergara and chairman and COO Alvin P. Vergara.
AEC president Geromin T. Nepomuceno attended similar signing ceremonies held in Angeles City, Pampanga yesterday.
The ownership and maintenance of Transco’s 8.27 circuit-kms long Cabanatuan-Celcor 69-KV line in Nueva Ecija and the 18.5 circuit-kms Mexico-Angeles 69-KV line in Pampanga will be transferred to the distribution utilities upon approval by the Energy Regulatory Commission and the Power Sector Assets and Liabilities Management Corp. (PSALM) and upon the execution of the deed of absolute sale between the parties. The purchase price is expected to be paid in full within 90 days.
Transco president and CEO Alan T. Ortiz said "this is a major boost to the energy sector’s collective efforts to improve power delivery in Luzon."
He said selling these sub-transmission assets will ensure the continued quality, reliability, security and affordability of electric service to end users.
"The inflow of private capital will broaden the ownership base of sub-transmission assets. Selling the assets to private utilities will allow them to operate and maintain these lines and consequently earn income from its operation. We are confident this will give them the incentive to improve service," Ortiz said.
The Electric Power Industry Reform Act (EPIRA) of 2001 identifies sub-transmission assets as those lines directly connected to distribution utilities. Transco has been mandated by EPIRA to sell all these assets. – Donnabelle Gatdula