ERC gives go signal to Capitol power sub-station
Finally, the P13 million power substation of the Iloilo Provincial Capitol standing idle for about two years now would already be put into use.
This after the Energy Regulation Commission (ERC) in its decision dated October 25, 2006, but was only made known to the media on Monday, granted the provisional authority approving the Memorandum of Agreement (MOA) and Contract for the Supply of Electricity (CSE) between the Iloilo Provincial Government and National Power Corporation (NPC).
With the decision, Provincial Legal Officer Salvador Cabaluna III said the provincial government could already operate its power substation.
Governor Niel Tupas, Sr. said the Capitol substation had long been completed but failed to operate because of the opposition filed by Panay Electric Company (Peco), the city's exclusive power distribution franchisee, with the ERC.
In its decision favoring the MOA, ERC cited Republic Act 6395 allowing city, municipal or provincial system and other governmental institutions to obtain bulk power supply from NPC through direct connection.
"The commission recognizes the soundness and suitability of direct connection in some cases, specifically in situations where the interest of the public is at stake and thus, should be upheld," reads the decision.
In its position filed with the ERC, the Iloilo provincial government stated that it could save about 1/3 of what it is presently spending for the payment of electric bills if it gets power directly from NPC.
The provincial government would use the sub-transmission lines of the Philippine Foremost Milling Corporation (PFMC), located some meters away from the Capitol, in connecting to the nearest NPC plant.
ERC's latest decision also reversed its earlier ruling on the exclusivity of the use of PFMC's sub-transmission lines.
It said the Distribution Services and Open Access Rules (DSOAR) promulgated on January 18, 2006 in effect amended the earlier decision.
Section 2.7.10, Article II of the DSOAR provides that "any end-user shall be allowed to connect to facilities treated as CIAC paid by another end user..."
To note, PFMC and Peco first embroiled in a legal battle for the former's bid for a direct power connection with NPC.
PFMC 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.