Capitol lawyer getting 'good vibes' on power substation plan
The Capitol power substation.
The promise of a big cut in the Iloilo Provincial Government's electric bill is almost in the bag. Or so it appears as a top Capitol lawyer expressed optimism on the planned direct power connection and full operation of a substation here.
As such, from the regular P1 million monthly electric consumption due to Panay Electric Company (PECO), Provincial Legal Office (PLO) chief Salvador Cabaluna told capitol reporters forthcoming savings of up to 40% can be expected.
To date, the hearing with the Energy Regulation Commission (ERC) is on its last rounds that gathered anew key officials of the Iloilo Provincial Government, oppositors in the PECO and representatives from Philippine Foremost Milling Corporation, an apparent Capitol partner in said direct power connection bid.
In a report, Bombo Radyo Iloilo said Cabaluna is all positive that ERC will grant the Capitol's application that will soon pave way for stable power supply and huge savings or monthly Capitol bill of some P600,000 only.
Some three years in the making, the multi-million Capitol power substation has since generated controversy with minority members of the Iloilo Sanggunian Panlalawigan (SP) pushing for an in-house investigation to its delay and reported anomalies.
Early this year news broke out of an ERC decision on a similar bid by the Philippine Foremost Milling Corporation that mentioned its rejection of the Capitol link-up.
The Iloilo provincial government kept its hopes up despite the unfavorable ERC ruling with regard to its bid to use the transmission lines of the Philippine Foremost Milling Company in Brgy Rizal Lapuz, Iloilo City for the Capitol's power substation.
Governor Niel Tupas in an interview with Capitol beat reporters then 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).
Cabaluna has since said then that the provincial government will 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 Philippine Foremost to use the transmission lines of the latter.
ERC granted Philippine Foremost the authority to operate a power substation however only for its exclusive use. The ruling is deemed to have thus barred the provincial government from using the company's sub-transmission lines in order to connect with NPC.
Yet with the Philippine Foremost victory it was said that such would also ensure the operation of the P13 million Capitol power substation.
Philippine Foremost faced opposition from 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 then 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."