TransCo sources said "the negotiations between the two firms is 80 percent complete".
Official documents obtained by the STAR showed that Meralco is included in the list of distribution utilities (DUs) that have completed the technical and financial documentation required by TransCo and the Energy Regulatory Commission (ERC).
Under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, TransCo is mandated to sell its STAs or those assets with capacity of 69 kilovolt (kv) and below, to the private DUs and electric cooperatives (ECs).
The EPIRA also allows TransCo to grant concessional financing to interested and qualified ECs for a maximum period of 20 years.
TransCo is currently negotiating with at least 13 DUs, including Meralco, for the sale of its STAs.
Other power distribution firms with pending applications to acquire TransCo’s STAs are: Cagayan I and II Electric Cooperative (Cagelco I and II); Ilocos Norte EC (INEC); La Union Electric Corp. (LUECO); La Union EC (LUELCO); Meralco-Bulacan; Zambales II EC (ZAMECO II); Camarines Sur 2 EC (CASURECO II); Mactan EC (MECO); Bukidnon 2 EC (BUSECO); First Bukidnon EC (FIBECO); and Lanao del Norte EC (LANECO).
Based on the latest status report on STA sale, more than 120 DUs were surveyed in 2003 to determine if they were interested to acquire TransCo’s STAs located within their respective franchise areas.
To date, about 70 DUs have signified interest to purchase TransCo’s STAs. These DUs have already submitted their partial technical and financial documents to TransCo.
As of end-March this year, a total of 24 sale packages amounting to P1.29 billion involving 874.52 circuit kilometers of transmission lines assets and 300 MVA substation capacity have been sold to 22 DUs (eight private DUs and 14 ECs).
Of the 14 ECs, about 12 availed of TransCo’s lease purchase agreement with repayment periods ranging from 13 to 20 years depending on 75 percent of the remaining life of the asset.
With these arrangements with ECs, TransCo has estimated that the sale of the STAs would be completed in 2015.