THE National Grid Corp. of the Philippines (NGCP) obtained approval from the Energy Regulatory Commission (ERC) to go ahead with its proposed P1.11-billion substation project in Aklan.
“The project must be completed by NGCP on or before Dec. 31,” the ERC said in a notice.
The ERC noted that the approval is “subject to optimization based on actual use, usefulness, and verified expenses incurred, supported by official receipts and other relevant documents.”
The proposed project is part of NGCP’s 2022 roster of capital expenditure (capex) projects.
The grid operator said that the project addresses expected overloading of the Nabas Substation as well as overloading and undervoltage issues along the Panitan-Nabas 69kV Transmission Line.
NGCP capex projects must be approval by the ERC under Republic Act No. 9136 or the Electric Power Industry Reform Act.
Under a congressionally granted 50-year franchise, the company has the right to operate and maintain the transmission system and related facilities, and to exercise the right of eminent domain as needed to construct, expand, maintain, and operate the transmission system.
The ERC approved the NGCP’s fourth regulatory period rate reset spanning 2016 to 2022, under which it is entitled to an additional P28.29 billion in under-recoveries. — Sheldeen Joy Talavera