Meralco eyes 2nd batch of TransCo assets

After getting an approval from the Energy Regulatory Commission (ERC), the Manila Electric Co. (Meralco) is getting ready to acquire the second batch of sub-transmission assets from the National Transmission Corp. (TransCo).

“We are preparing for the next batch of STAs that we will buy from TransCo,” Meralco president Jesus Francisco said.

Francisco said the acquisition of these STAs is part of the company’s budget.

“We are set to buy these assets. I understand that we are already talking with TransCo about this,” the Meralco official said.

The next batch of STAs that would be acquired by Meralco is expected to cost from P300 million to P500 million. The sale of the second tranche of STAs is expected to be completed next year.

Last month, the Energy Regulatory Commission (ERC) has approved the sale of TransCo’s STAs worth P230.80 million to Meralco.

The first batch involves the sale of various sub-transmission lines and structures in Bulacan, Cavite , and Laguna including Cruz na Daan-Mexico; Cruz na Daan-Akle; Cruz na Daan-Balualto; Bahay Pari-Baliuag; and the lines all rated at 69 kV; and the San Jose-Bigte; Luzon Aggregates; and Norzagaray Municipal Hospital lines in Bulacan, all rated at 34.5 kV.

Also included are circuit breakers and other facilities in the Cruz na Daan and San Jose Substations in Bulacan.

TransCo also sold to Meralco the Dasmarinas-Ternate, Dasmarinas-Lakeview, and Dasmarinas-Tagaytay 115-kV lines and the Ternate-Puerto Azul 34.5-kV line in Cavite and the 69-kV Caliraya-MECO Sta. Cruz line in Laguna.

So far, Meralco is the 15th distribution utility in Luzon and the 39th in the country to enter into a divestment agreement with TransCo.

The Lopez-controlled power utility firm paid the acquisition amount in full.

Francisco earlier said the company included in their application for performance based rate (PBR) with the ERC the capital expenditure budget for the acquisition of the STAs.

Under Republic Act 9136 or Electric Power Industry Reform Act of 2001, TransCo is mandated to sell its STAs or those assets with capacity of 69 kilovolt (kV) and below, the distribution utilities and electric cooperatives.

Of the P7 billion STAs to be sold by TransCo, it was learned that about P4 billion is located within the franchise area of Meralco.

Including the sale to Meralco, TransCo has so far sold about P2.4 billion worth of STAs.