ERC OKs Transco sale of STAs to Davao, Bohol coops

The Energy Regulatory Commission has approved Davao Light and Power Co. and Bohol I Electric Cooperative Inc.'s acquisition of National Transmission Corp. sub-transmission assets. In its approval, the power sector regulator, gave the greenlight to DLPC's buy of P15 million in STAs which involved 14.89 circuit kilometers and 162 line structures along the Davao-Digos 69-kilovolt line in Davao. The ERC also approved Transco's sale to BOHECO I, of STAs worth P4.211 million. The contract was filed with the ERC last April 2005. The sale involves the Tagbilaran-Dauis 13.8 kV and the Tagbilaran-Cortez 13.8 kV line. DLPC, a unit of Aboitiz Power Corp., has a franchise covering Davao City and the municipalities of Panabo, Carmen, Santo Tomas and Dujali. In its approval, the ERC said DLPC is "qualified to take over the responsibility of operating, maintaining, upgrading and expanding the said STA and the purchase price of the STA is fair and reasonable." At present, the state-run TransCo has already sold about P2.4 billion worth of STAs. TransCo was supposed to sell a total of P8 billion to P9 billion worth of STAs but changed the target to only P4 billion as several electric cooperatives have yet to prove financial capability to acquire the assets. Under the Electric Power Industry Reform Act of 2001, only qualified ECs and DUs are allowed to buy the STAs within their respective franchise areas. TransCo president and Arthur Aguilar, however, pointed out that the divestment of sub-transmission assets is still part of the corporation’s efforts to pursue power sector improvements as mandated by the EPIRA. - GMANews.TV