Capitol power substation incurs another setback
Iloilo -- The Iloilo provincial government is not losing hope despite the unfavorable ruling of the Energy Regulatory Commission (ERC) with regard to its bid to use the transmission lines of the Philippine Foremost Milling Company (PFMC) in Brgy Rizal Lapuz, Iloilo City for the Capitol's power substation.
Governor Niel Tupas in an interview with Capitol beat reporters said he is confident that the provincial government could connect directly with the National Power Corporation (NPC) through the transmission lines of the National Transmission Commission (Transco).
In an earlier interview, Provincial Legal Office chief lawyer Salvador Cabaluna expressed that the provincial government may file a petition before the ERC so as to have the Memorandum of Agreement for the power purchase with the NPC approved.
The provincial government reportedly had a verbal agreement with PFMC to use the transmission lines of the latter.
ERC recently granted PFMC the authority to operate a power substation however for only for its exclusive use. The ruling is deemed to have thus barred the provincial government from using PFMC's sub-transmission lines in order to connect with NPC.
PFMC and PECO embroiled in a legal battle for the latter's bid for a direct power connection with NPC.
It was believed that PFMC's win would also get the P13 million Capitol power substation operational.
PFMC faced opposition from Panay Electric Company (PECO) saying direct connection to NPC and Transco is a blatant violation of laws and regulations and prejudicial to the general interests of the general public.
Specific of PECO's objections were that direct connection as supposedly allowed under the Electric Power Industry Reform Act or EPIRA Law has been modified and it will cause gross financial loss to PECO.
The objection also carried the clear objection as it pointed out that with the Foremost's direct connection comes the link with the Iloilo Provincial Government "contrary to law and prejudicial to public safety." Further still, PECO maintained, "the set-up would allow an end-user to become and act as an electric distributor itself," and the "set-up will ultimately hurt the customers of PECO in general."
ERC in resolving the case granted the direct connection as it ordered PECO to cease and desist from preventing Foremost in pursuing its planned installation. A clear win for said business establishment however one that sealed off the hyped-up plan for the Iloilo Provincial Government (IPG) to avail of the same win.
"It is noted that PECO alleged that there is an "internal arrangement" between IPG and Foremost Milling regarding use of the former's substation and that PECO registered its vehement objection thereto. Perusal of the evidence on records (Pages 66-70 of the TSN of the hearing dated May 12, 2005) show that initially the agreement between TRANSCO and Foremost Milling was exclusive (point to point) and that IPG requested to tap from that line considering that they too were contemplating direct connection. Foremost Milling also testified therein that there was verbal agreement to enable IPG to tap into the Foremost Milling's line. However, Foremost Milling, under oath averred that it was willing to ensure that the line that it is constructing is exclusive for its own use. PECO will thus be assured of the exclusivity of the use of Foremost Milling's sub-transmission lines," excerpts of the ERC decision obtained by The News Today disclosed.
Asked for further comment, lawyer Eldrid Antiquera, counsel for Foremost Milling said, the decision has been made in their favor and stays as such.
"As far as my client is concerned, we will abide with the ERC decision. Kami iya gin-manduan to maintain exclusivity. And the Iloilo Provincial Government was never a party to our case so there is nothing to discuss on that regard," Antiquera said. Pressed for details about the 'verbal agreement,' said lawyer made a quick "no comment" reply while stressing that Foremost is a "big industrial consumer."
For Third District Board Member Manny Gallar someone must do a lot of explaining to the people. The delay is unacceptable that seemingly put to waste the money, over P13 million altogether.
"In a way it is another victory also for our part in the minority and conscience bloc because when we all stood up against the delay of this project, we raised questions on the propriety, regularity and legality of the Foremost Milling link to the Capitol. They from the Executive department has been saying once the Foremost problem with the ERC is resolved, then we can have our substation operational. Te, diin na subong? Who is the mastermind here or the masterminds? It is now time for them to come out and explain to the people. Ano patulugon ta lang dira anay ang masobra trese milyones pesos ta sa proyekto nga ina?," Gallar asked.