Transco to sign service pacts with power co-ops, distribution utilities

State-owned National Transmission Corp. (Transco) is targeting to forge transmission service agreements (TSA) with all electric cooperatives and distribution utilities within the year.

"We have been going to the different regional centers and holding discussions with our customers about the importance of signing a TSA with us. We are confident that we will meet our self-imposed deadline of concluding all negotiations before the year ends," Transco president Alan T. Ortiz said.

Ortiz signed in Baguio last week a TSA with the Mountain Province Electric Cooperative. Transco requires all its customers to sign a TSA as it will govern the terms of conditions of providing transmission and related services to its customers.

A TSA is based on the provisions of the Open Access Transmission Service (OATS) as approved by the Energy Regulatory Commission and likewise complies with the state-owned utility’s technical and commercial requirements for grid interconnection.

Previously, cooperatives and distribution utilities only signed one contract with the National Power Corp. (Napocor) — in the form of a power supply agreement — which covered both generation and transmission services.

But with the move to unbundle power rates and the subsequent independent operation of Transco, the customers must now sign a TSA to avail of Transco’s services. This agreement will be co-terminus with the terms of their contract with Napocor.

Transco also recently signed a memorandum of agreement with the Philippine Military Academy (PMA) for the rehabilitation of PMA’s existing 23-kilovolt transmission lines which run from Antamok in Benguet to the PMA compound in Fort del Pilar, Baguio City.

The state-run power utility firm has committed to replace the aging woodpoles and other accessories to boost the reliability of power supply to the country’s premiere military training institution.