ERC okays Meralco projects in 11 Metro Manila cities

The Energy Regulatory Commission (ERC) has approved the issuance of a certificate of public convenience and necessity (CPCN) to Manila Electric Co. (Meralco) to pursue projects in 11 cities in Metro Manila.

The CPCN covers the operation of electric service in Malabon, Manila, Pasay, Mandaluyong, Quezon, Caloocan, Makati, Parañaque, Las Piñas, Navotas and San Juan.

Under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, the ERC’s should first be secured before distribution utilities, including Meralco proceed with their projects.

The ERC decision also made permanent the provisional authority granted to Meralco in March 24, 2003 to operate its electric service in the abovementioned cities and municipalities.

With the ERC approval, the CPCN will be made permanent effective from June 28, 2003 to June 27, 2028 as provided in Meralco’s approved franchise by Congress.

The original franchise to operate electric service was granted to Meralco under Manila Ordinance 44 which had a 50-year term from March 24, 1903 to March 23, 1953. This was renewed by RA 150 for another 20 years from the date of its expiration, and again renewed through RA 4159 for 30 years.

Before the expiration of its legislative franchise in May 24, 2003, Meralco had filed its application before the National Electric Commission (NEC) for new franchises.

With the enactment of the EPIRA, the NEC stopped all its proceedings considering that the power to grant franchises was vested exclusively in Congress. Consequently, Meralco applied for franchise with Congress on July 2002.

On June 9, 2003, RA 9209 was enacted granting Meralco a franchise to construct, operate and maintain a distribution system for the conveyance of electric power to end-users in the cities/municipalities of Metro Manila, Bulacan, Cavite, and Rizal, and certain barangays in Batangas, Laguna, Quezon and Pampanga for 25 years.

Included in the electric capital projects of Meralco is the expansion of NAIA-3 substation this year with a project cost of P76.81 million.

In 2009, Meralco is also scheduled to expand its Hillcrest substation in Mandaluyong with total project cost of P77.5 million.

In Malabon, the power distribution utility will engage in the installation of Grace Park Substation in 2012 amounting to P7.36 million.

Next year, Meralco will install 83 MVA at Tutuban substation (P171.4 million) and develop the South Port substation (P156.5 million).

In Caloocan, the power firm will expand the Bagbaguin substation in 2008 at a budget of P71.37 million.

Meralco will also develop a Palanyag substation in Parañaque in 2012 with a project cost of P85 million.