The Palawan Electric Cooperative (PALECO) is preparing a new Capital Expenditure (CapEx) application for additional substations and the installation of insulated conductors to address its power distribution problems.
Board chair Jeffrey Tan-Endriga said the focus of projects under CapEx 2022-2026 aims to address the issue of low-voltage correction and to clear its power lines from impeding vegetation.
“Hindi tayo pwede na laging magri-rely sa mga generating set—may planta tayo sa Quezon, Aborlan, Brooke’s Point. Ang isa sa mga paraan pwede magbawas sa mga gastusin sa generation side ay maglagay ng substation. Mas maigi na magkaroon tayo ng isang malaking planta, iko-connect natin sa transmission line at magkakaroon tayo ng iba’t ibang location ng substation,” he said.
The electric cooperative is in the process of preparing the technical and legal documents needed for its application before submission to the Energy Regulatory Commission.
Officer-in-charge Neriza Regal said ERC will still evaluate and verify the proposals of the electric cooperative on what projects are only allowed to be implemented. The ERC’s process will also take into account how the projects will affect the electric cooperative’s costs and the consumers.
“Not all the projects that we proposed will be approved by ERC. After the evaluation, subject of verification, we will find out what the projects are that we are allowed to implement,” Regal said.
Under the CapEx application, PALECO will construct a substation in the city proper aside from the plan in Barangay Montible and the constructed substation in Lucbuan. The construction of the substation was already included in previous CapEx applications but was rejected by the ERC due to the high cost.
PALECO included it again in the new application for CapEx, claiming that it is now needed to cater to the demand. The electric cooperative has not mentioned the proposed amount for this year’s application.
“Ngayon since ang substation ay almost 80 percent ang load niya, due na ito para magkaroon tayo ng another substation to cater the demand,” Endriga said.
“Ito ang pinakamagandang design, at the same time pumasok na dito si TransCo na tutuwang sa NAPOCOR so ito ‘yong mga long-term plan. Hndi natin pwede isabay-sabay dahil ang gastusin ay hindi biro—ang ginagawa natin ay staggered implementation,” he added.
In 2019, ERC granted the CapEx application of PALECO, which funded the P40 million Supervisory Control and Data Acquisition (SCADA) system. The SCADA was acquired to improve the overall efficiency of power distribution and provide consistent and stable integrated grid operation.