ERC Case No. 2014-158 RC.pdfPhilippine law with principal office address at 44 Don ... MCC's timeline, ... 240J.P. Rizal, Marikina City 2

Republic of the PhilippinesENERGY REGULATORY COMMISSION

San Miguel Avenue, Pasig City

IN THE MATTER OF THEAPPLICATION FOR AUTHOr~ITYTO DEVELOP A 138 KV/69 KVPOWER SUBSTATION INKIRAHON, VillANUEVA,MISAMIS ORIENTAL (KIRAHONSUBSTATION), WITH PRAYERFOR PROVISIONAL AUTHORITY

ERC CASE NO. 2014-158 RC

CAGAYAN ELECTRIC POWERAND LIGHT COMPANY, INC.(CEPAlCO),'

Applicant.)(- - - - - - - - - - - -.- - - - - - - - - - - - -)(

NOTICE OF PUBLIC HEARING

TO All INTERESTED PARTIES:

Notice is hereby given that on November 3, 2014, theCagayan Electric Power and Light Company (CEPAL~O) filed anapplication for authority to develop a 138 kV/69 kV powersubstation in Kirahon, Villanueva, Misamis Oriental (KirahonSubstation), with prayer for provisional authority.

In the said application, CEPALCO alleged, among others,that:

1. It is a distribution util,ityduly organized and existing underPhilippine law with principal office address at 44 DonToribio Chavez Street, Cagayan de Oro City. It is theexclusive franchise holder to operate electric light andpower services to the end-users of Cagayan de Oro Cityand in the Municipalities of Jasaan, Tagoloan andVil'lanueva, all in the Province of Misamis Oriental;

2. Based on its updated load forecast, its system peakdemand is projected to increase at an average growthrate of 16% per year over the next three (3) years (2014-2016). This is due to the continued influx of large load

ERC CASE NO. 2014-158 RCNotice of Public Hearing/November 3, 2014Page 2 of 5

locators such as big commercial and industrialestablishments in Cagayan de Oro City and the three (3)Municipalities of Tagoloan, Villanueva, Jasaan, includingthe PHIVIDEC area, all within its franchise area;

3. To address the projected load growth, it entered into aPower Supply Agreement (PSA) with MINERGY CoalCorporation (MCC) wherein MCC shall construct, own,operate and maintain a 2 x 55 MW coal-fired power plantin Balingasag, Misamis Oriental, to supply 100 MW ofbase load power for a period of twenty-five (25) yearsstarting in the year 2017;

4. On June 26, 2013, CEPALCO and MCC filed a jointapplication with the Commission for the approval of theirPSA, docketed as ERC Case No. 2013-134 RC;

5. On September 9, 2013, the Commission issued an Orderin ERC Case No. 2013-134 RC provisionally approvingthe PSA and the authority to construct a 138 kV tie-lineto connect the MCC power plant to CEPALCO'sdistribution system;

6. In order for it to receive and distribute the 100 MW powercapacity contracted from MCC, it needs to construct theproposed 138 kV/69 kV receiving-end substation atKirahon, Villanueva, Misamis Oriental;

7. By virtue of the said provisional authority, MCC hascommenced construction of the power plant and thededicated point-to-point 138 kV tie-line. Consistent withMCC's timeline, the coal plant will require back feedpower supply for testing purposes by July 2015. Thisback feed power can only be supplied by it through theproposed power substation;

8. In brief, the development of the proposed 138 kV/69 kVSubstation (Kirahon Substation) would involve theinstallation of six (6) sets of 138 kV gas-insulated powercircuit breakers and fourteen (14) 138 kV disconnectswitches, two (2) 150 MVA 138 kV/69 kV powertransformer banks with on-Ioad-tap-changers (OLTC),two (2) grounding reactors, fourteen (14) sets of 69 kVgas-insulated power circuit breakers and twenty-six (26)69 kV disconnect switches, two (2) sets of 30 MVArcapacitor bank, and the construction of twelve (12)kilometers 69 kV lines and other associated equipment;


9. The estimated project cost is as follows:

Project Cost Estimate for theProposed 138/69 kV KIRAHON Substation

ITEM US$ PhP Total1 Total of Substation

(EPCC)

Desiqn & Enqineerinq 12,750,000 12,750,000General Requirement 32,325,000 32,325,000Procurement-Indent

11,143,144.85 501,441,518MaterialsConstruction 386,870,893System Inteqration 3,800,000Testing &

2,500,000Commissioninq2 Total of Substation

557,157.24 152,547,429 177,619,505(Non-EPCC)Project Cost GrandTotal

11,700,302.10 590,793,322 1,117,306,917(Excluding of 12%VAT)

10. The indicative rate impact of the project is as follows:

1,117,306,917.657,485,956

0.2065

ALLEGATIONS IN SUPPORT OF THEPRAYER FOR PROVISIONAL AUTHORITY

11. As earlier discussed, MCC has already commencedconstruction of its 2 x 55 MW coal-fired power plant by virtueof the provisional authority issued in ERC Case No. 2013-134RC. MCC will therefore require back feed power supplyfor testing purposes by July 2015. CEPALCO's receiving-endsubstation must therefore be completed by June 2015 if it isto provide the back feed power supply requirement of MCC;

12. If it will not be provisionally authorized to implement theproposed project, it will not be able to complete theconstruction of the proposed substation in time for the testing


of the proposed power plant by July 2015. This will result inproject delays and CEPALCO will not be able to serve thepower requirements of its incoming loads in the comingyears;

13. As a consequence, it will not be able to meet its obligation toprovide reliable and adequate power supply to its customersin a least cost and timely manner. It is, therefore, critical thata provisional authority be issued in favor of the proposedsubstation;

14. It submitted the following documents in support of the instantapplication: .

Description of Supporting Document Annex

Executive Summar Pro'ect Overview "A"Detailed Pro'ect Feasibilit Stud "B"Pro'ect Schedule Gantt Chart "c"Judicial affidavit of Engr. Leonardo G. Gumalal, in supportof ra er for issuance of provisional authorit "0"News article on Cagayan de Oro's Economic Growth "E"Copy of PSA Application between CEPALCO and MinergyCoal as filed before the Commission, docketed as ERC "F"Case No. 2013-134 RCCopy of Order dated September 9, 2013 issued in ERCCase No. 2013-134 RC granting Provisional Authority in "G"favor of the ro osed PSA

15. It prays that upon the filing of the instant application andpending resolution of the case, an Order be issued grantingprovisional authority to commence the construction of theproposed 138 kV/69 kV power substation at Kirahon,Villanueva, Misamis Oriental. After due notice and hearing, aDecision be issued approving instant application.

The Commission has set the instant application forjurisdictional hearing, expository presentation, pre-trial conferenceand evidentiary hearing on December 5, 2014 (Friday) at nineo'clock in the morning (9:00 A.M.) at the CEPALCO'sConference Room, T. Chaves Street, Cagayan de Oro City.

ERC CASE NO. 2014-158 RCNotice of Public Hearing/November 3,2014Page 5 of 5

All persons who have an interest in the subject matter of theproceeding may become a party by filing, at least five (5) days priorto the initial hearing and subject to the requirements in the ERC'sRules of Practice and Procedure, a verified petition with theCommission giving the docket number and title of the proceedingand stating: (1) the petitioner's name and address; (2) the nature ofpetitioner's interest in the subject matter of the proceeding, and theway and manner in which such interest is affected by the issuesinvolved in the proceeding; and (3) a statement of the reliefdesired.

All other persons who may want their views known to theCommission with respect to the subject matter of the proceedingmay file their opposition to the application or comment thereon atany stage of the proceeding before the applicant concludes thepresentation of its evidence. No particular form of opposition orcomment is required, but the document, letter or writing shouldcontain the name and address of such person and a concisestatement of the opposition or comment and the grounds reliedupon.

All such persons who may wish to have a copy of theapplication may request the applicant, prior to the date of the initialhearing, that they be furnished with a copy of the application. Theapplicant is hereby directed to furnish all those making suchrequest with copies of the application and its attachments, subjectto reimbursement of reasonable photocopying costs. Likewise, anysuch person may examine the application and other pertinentrecords filed with the Commission during the usual office hours.

WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ-DUCUT, and the Honorable Commissioners, ALFREDO J. NONand JOSEFINA PATRICIA A. GPALE-ASIRIT, EnergyRegulatory Commission, this 3rd day 0 November, 2014 at PasigCity.

ATTY.NO~~ ALVANERADirector II

rniS/2014-158 RC CAPEXCEPALCO NOPH



IN THE MATTER OF THEAPPLICATION FOR APPROVALOF THE POWER SUPPLYAGREEMENT (PSA) BETWEENOCCIDENTAL MINDOROELECTRIC COOPERATIVE,INCORPORATED (OMECO)AND EMERGING POWER,INCORPORATED (EPI), WITHPRAYER FOR PROVISIONALAUTHORITY


OCCIDENTAL MINDOROELECTRIC COOPERATIVE,INCORPORATED (OMECO)AND EMERGING POWER,INCORPORATED (EPI),

Applicants.)(- - - - - - - - - - - - - - - - - - - - - - -)(

ORDER

The Commission takes note of the "Joint Formal Offer ofEvidence" filed on September 9,2014 by Occidental Mindoro ElectricCooperative, Incorporated (OMECO) and Emerging Power,Incorporated (EPI).

The said formal offer of evidence is hereby admitted for beingrelevant and material in the evaluation of this case.

The Commission initially evaluated the instant applicationtogether with the various submissions filed by OMECO and EPI andfound the same to be compliant with its requirements.

ERC Case No. 2014-102 RCORDER/October 20, 2014Page 2 of 2

Thus, the instant application is now deemed submitted forresolution.

50 ORDERED.

Pasig City, October 20, 2014.

FOR AND BY AUTHORITYOF THE COMMISSION:

J05EFINA PATRICI A M GPALE-A5IRITComm sloner

~land EPI PSN2014-102 RC/admission offoe

Copy Furnished:

1. De Los Angeles Aguirre Olaguer Salomon Fabro and OjedaCounsel for OMECO240 J.P. Rizal, Marikina City

2. Lachica and AssociatesCounsel for EPISuite 2304-B, West Tower, Philippine Stock Exchange Centre,Exchange Road, Ortigas Center, Pasig City

3. Occidental Mindoro Electric Cooperative, Inc. (OMECO)Barangay Sta. Isabel, Calapan City

4. Emerging Power, Incorporated (EPI)Suite 1603 B, 16th Floor, West Tower, Philippine StockExchange Centre, Exchange Road,Ortigas Business Center, Pasig City



IN THE MATTER OFTHE APPLICATION FORAPPROVAL OF BUSINESSSEPARATION AND UNBUNDLINGPLAN (BSUP) PURSUANT TOSECTION 36 OF REPUBLIC ACT9136 AND RULE 10 OF ITSIMPLEMENTING RULES ANDREGULATIONS

ERC CASE NO. 2013-088 MC

LANAO DEL NORTE ELECTRICCOOPERATIVE, INC. (LANECO),

Applicant.J(- - - - - - - - - - - - - - - - - - - - - - - - -J(

LJOOK.X!,'!• NOV 1 \) c.u •••Oate."~~:;'7'--' _1IIt:~\.__ [J!,Ji....... •

ORDER

The Commission takes note of the "Formal Offer of Evidence"filed on May 13, 2014 by the Lanao Electric Cooperative, Inc.(LANECO).

The said formal offer of evidence is hereby admitted for beingrelevant and material in the evaluation of this case.

The Commission initially evaluated the instant applicationtogether with the various submissions filed by LANECO and foundthe same to be compliant with its requirements.

ERC CASE NO. 2013-088 MCORDER/September 24, 2014-p~_g_~_?._Q.t.4.__ _ __.._ _ _ _ __ , __ __ _ .._ _ _._ __ _ _ _ _

Thus, the instant application is now deemed submitted forresolution.

50 ORDERED.

Pasig City, September 24,2014.


J05EFINA PATRICo

. MAGPALE-A5IRIT

ERC CASE NO. 2013-088 MCORDER/September 24, 2014Pag~ ~.Qf~._..___ ._ __.._. __ ,.._,_ _.,,_ __ _._ __ _____.__Copy Furnished:

1. Atty. Ditas A. Lerios-AmboyCounsel for LANECOUnits 1609-1610, Tycoon Center.Pearl Drive, Pasig City, Metro Manila

2. Lanao del Norte Electric Cooperative, Inc. (LANECO)Sagadan, Poblacion, Tubod, Lanao del Norte

3. Office of the Solicitor General134 Amorsolo Street, Legaspi VillageMakati City, Metro Manila

4. Commission on AuditCommonwealth AvenueQuezon City, Metro Manila

5. Senate Committee on EnergyGSIS Bldg. Roxas Blvd., Pasay CityMetro Manila

6. House Committee on EnergyBatasan Hills, Quezon City, Metro Manila

7. Office of the PresidentPhilippine Chamber of Commerce and Industry (PCCI)3rd Floor, ECC Building, Sen. Gil Puyat AvenueMakati City

8. Office of the Provincial GovernorProvince of Lanao del Norte

9. Office of the Municipal MayorLinamon, Lanao del Norte

10. Office of the Municipal MayorMatungao, Lanao del Norte

11. Office of the Municipal MayorKauswagan, Lanao del Norte

12. Office of the Municipal MayorPoona Piagapo, Lanao del Norte

13. Office of the Municipal MayorBacolod, Lanao del Norte

ERC CASE NO. 2013-088 MCORDER/September 24,2014Page 4 of 4

14. Office of the Municipal MayorMaigo, Lanao del Norte

15. Office of the Municipal MayorTangcal, Lanao del Norte

16. Office of the Municipal MayorMunai, Lanao del Norte

17. Office of the Municipal MayorKolambugan, Lanao del Norte

18. Office of the Municipal MayorMagsaysay, Lanao del Norte

19. Office of the Municipal MayorTubod, Lanao del Norte

20. Office of the Municipal MayorBaroy, Lanao del Norte

21. Office of the Municipal MayorSalvador, Lanao del Norte

22. Office of the Municipal MayorSapad, Lanao del Norte

23. Office of the Municipal MayorLala, Lanao del Norte

24. Office of the Municipal MayorKapatagan, Lanao del Norte

25. Office of the Municipal MayorSultan Naga Dimaporo (Karomatan)Lanao del Norte

26. Office of the Municipal MayorBaloi, Lanao del Norte



IN THE MATTER OF THEAPPLICATION FOR THEAPPROVAL OF THE SALE OFVARIOUS SUB-TRANSMISSIONLINES/ASSETS OF THENATIONAL TRANSMISSIONCORPORATION (TRANSCO)TO MISAMIS ORIENTAL 1 RURALELECTRIC SERVICECOOPERATIVE, INC. (MORESCO1), AS COVERED BY ANAMENDED LEASE PURCHASEAGREEMENT DATED 26DECEMBER 2011


NATIONAL TRANSMISSIONCORPORATION (TRANSCO)AND MISAMIS ORIENTAL 1RURAL ELECTRIC SERVICECOOPERATIVE, INC. (MORESCO1),

Applicants.. x- - - - - - - - - - - - - - - - - - - - - - - - -x

ORDER

The Commission takes note of the "Motion to ExtendSuspension" filed on October 23, 2014 by Misamis Oriental I RuralElectric Service Cooperative, Inc. (MORESCO I) praying that theninety (90) day suspension of the hearing of the instant case beextended for another ninety (90) days from October 24, 2014 or untilJanuary 22, 2015 since MORESCO I and CEPALCO are presentlynegotiating on a new Agreement that will require amendment to theContract to Sell with the National Transmission Corporation(TRANSCO).

ERC CASE No. 2013-184 RCOrder/November 7, 2014Page 2 of4

Finding said motion meritorious, the same is herebyGRANTED. Accordingly, the ninety (90) day suspension of theinstant case is hereby extended for another ninety (90) days fromOctober 24, 2014 or until January 22, 2015, without further extension.

SO ORDERED.

Pasig City, November 7,2014.


JOSEFINA PATRICIA . ~GPAlE-ASIRITCommi sloner

IVb/~jsJl1;; 3 1B4 RCITRANSCO-MORESCO I

.".

.'\

ERC CASE No. 2013-184 RCOrder/November 7,2014Page 3 of4

Copy Furnished:

1. National Transmission Corporation (TRANSCO)Attention: Attys. NOEL Z. DE LEON, LEON T. TAPEL, JR., GINA

LOURDES D. VALEROS and SOLEDAD T. DE LAVEGA-CABANGISCounsel for TRANSCOTRANSCO Main Building, Quezon Avenuecorner BIR Road, Diliman, Quezon City

2. Atty. Conchito J. OclaritCounsel for MORESCO IPoblacion, Laguindingan, Misamis Oriental

3. Misamis Oriental I Rural Electric Service Cooperative, Incorporated(MORESCO I)Poblacion, Laguindingan, Misamis Oriental

4. Office of the Solicitor General (OSG)134 Amorsolo St., Legaspi Village, Makati City

5. Commission on Audit (COA)Commonwealth Avenue, Quezon City

6. Senate Committee on EnergyGSIS Building, Roxas Boulevard, Pasay City

7. House Committee on EnergyBatasan Hills, Quezon City

8. Office of the City MayorEI Salvador City, Misamis Oriental

9. Office of the Municipal MayorAlubijid, Misamis Oriental

10. Office of the Municipal MayorGitagum, Misamis Oriental

11. Office of the Municipal MayorInitao, Misamis Oriental

12. Office of the Municipal MayorLaguindingan, Misamis Oriental

13. Office of the Municipal MayorLibertad, Misamis Oriental

14. Office of the Municipal MayorLugait, Misamis Oriental

15. Office of the Municipal MayorManticao, Misamis Oriental

..ERC CASE No. 2013-184 RCOrder/November 7,2014Page 4 of 4

16. Office of the Municipal MayorNaawan, Misamis Oriental

17. Office of the Municipal MayorOpol, Misamis Oriental

18. Office of the Municipal MayorBaungon, Bukidnon

19. Office of the Municipal MayorTalakag, Bukidnon

20. Office of the City MayorCagayan de Oro City, Misamis Oriental

21. Office of the Provincial GovernorProvince of Misamis Oriental

22. Office of the Provincial GovernorProvince of Bukidnon

23. Philippine Chamber of Commerce and Industry (PCCI)3rd Floor, ECC Building, Sen. Gil Puyat Avenue, Makati City

24. Hon. Emmanuel L. Jamis, DVMVice-Mayor, Presiding OfficerOffice of the Sangguniang BayanMunicipality of AlubijidProvince of Misamis Oriental

25. Cagayan Electric Power and Light Company, Inc. (CEPALCO)44 Toribio Chaves St., Cagayan de Oro City

26. National Grid Corporation of the PhilippinesAttn: Attys. Mark Anthony S. Actub and Raycell D. BaldovinoNGCP Building, Quezon Avenue corner BIR Road,Diliman, quezon City

Documents

ERC Case No. 2014-158 RC.pdfPhilippine law with principal office address at 44 Don ... MCC's timeline, ... 240J.P. Rizal, Marikina City 2