IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF UNPLANNED TIE LINE CAPITAL PROJECT OF MISAMIS ORIENTAL I RURAL ELECTRIC SERVICE COOPERATIVE, INC. (MORESCO I) ARISING FROM THE SALE OF VARIOUS SUBTRANSMISSION ASSETS BY THE NATIONAL TRANSMISSION CORPORATION (TRANSCO) TO MORESCO I, · WITH PRAYER FOR THE ISSUANCE OF A PROVISIONAL AUTHORITY ERC CASE NO. 2015-012 RC MISAMIS ORIENTAL 1· RURAL ELECTRIC SERVICE COOPERATIVE, INC. (MORESCO I), Applicant. }{- ---- - ---- - --------- - - -- -}{ NOTICE OF PUBLIC HEARING TO ALL INTERESTED PARTIES: Notice is hereby given that on January 30, 2015, the Misamis Oriental I Rural Electric Service Cooperative, Inc. (MORESCO I) filed an application for the approval of its unplanned tie line capital expenditure project arising from the sale of various subtransmission assets by the National Transmission Corporation (TRANSCO) to , MORESCO I, with prayer for the issuance of a provisional authority .. In the said application, MORESCO I alleged, among others, that: ERC CASE NO. 2015-012 RC NOTICE/March 2, 2015 Page 2 of 5 1. It is an electric cooperative (EC) existing 'pursuant to Presidential Decree No. 269 (P.O. 269), as amended. It has its postal address at Poblacion, Laguindingan, Misamis Oriental. It may be served with the processes of the Commission through its Board President, Engr. Melvyn D. Eballe and General Manager, Engr. Julie B. Real whose joint authority is attached to the application as Annex "A" and made an integral part thereof; 2. Its franchise area includes the Municipalities of Alubijid, lnitao, Opel, Lugait, Laguindingan, Manticao, Gitagum, Libertad, Naawan, El Salvador City in the Province of Misamis Oriental, a portion of Cagayan de Oro City and the Municipalities of Talakag and Baungon in the Province of Bukidnon; 3. In December, 2010, it and Cagayan Electric Power and Light Company, Inc. (CEPALCO) entered into a Compromise Agreement (CA) on the mode of acquisition of the Lugait-Carmen 69 kV subtransmission line from the TRANSCO, as follows: MORESCO 1 shall acquire the Lugait-Opol portion of the 69 kV line while (CEPALCO) shall acquire the lponan (Opel) - Carmen portion, with due consideration of the connected customers of each of the two (2) distribution utilities (DUs); 4. Subsequently, a provisional authority (PA) was issued in 1 ERC Case No. 2012-066 RC . The National Grid Corporation of the Philippines' (NGCP's) 138 kV substation will be installed in Kamagon, Patag, Opel, Misamis Oriental and is estimated to be completed in June 2015. With the forthcoming completion and operation of the NGCP substation, it and CEPALCO have agreed to connect separately to the said substation in order to promote efficiency and reliability of power to their respective consumers; 5. The CA entered into by and between and CEPALCO requires an amendment of the Contract to Sell/Lease Purchase Agreement as to the assets and their corresponding prices and below is the list of equipmenUfacilities that the parties have agreed to buy from the TRANSCO, as follows: for CEPALCO: (a) 1 "In the Matter of the Application of the Opol Substation Project, with Prayer for the Issuance of a Provisional Authority" ERC CASE NO. 2015-012 RC NOTICE/March 2, 2015 Page 3 of 5 --------------·-----···----------- Structure 223 to Structure 300 of the 69 kV Lugait­ Carmen; and (b) Carmen Substation transformer and accessories; and for MORESCO 1: (a) Lugait Substation outgoing feeder to Structure 221 of 69 kV Lugait-Carmen Line; and (b) Lugait Switch bay; 6. As a result of such CA, it was agreed by the parties to apply separately to construct a 69 kV tie line from the new NGCP 138 kV substation to each distribution utilities' respective distribution system. This tie line will replace its three (3) connections, namely: (a) Patag Opol Substation; (b) Canitoan Substation; and (c) Carmen­ Talakag 34.5 kV line; 1. Estimated Project Cost: A. Construction of Tie line, 69kV with 15kV underbuilt Length Cost perkm Amount Circuit description km Php/km Php 69 kV single circuit 3.0 5,621,213 16,863,637.91 15 kV underbuilt 3.0 1,058,606 3,175,818.30 ROW 3.0 75,000 225,000.00 SUB-TOTAL Php 20,264,456.21 B. Air Break Switch, 69KV LABOR& QUANTITY UNIT PRICE MATERIAL STRUCTURE ASSEMBLY OVERHEAD AMOUNT Air break switch 1 ,.. 398,408 398,408 99,602 498,010.00 SUB-TOTAL Php 498,010.00 C. Mertering Equipment Metering Connection Point Requirements 69kV 1 set Php D. ERC Fees and Charges ERC Fees and Charges Amoun Application Fee 700.00 Pro\isional Authority 700.00 Research Fund (10%) 140.00 Permit Fee 170,220.45 SUB-TOTAL Php 171,760.45 IGRAND TOTAL (Php) Php 22,867,821.121 L....-------------------~---------------- ------ -- _j ERC CASE NO. 2015-012 RC NOTICE/March 2, 2015 E..9.9~.1.2f.?. .. _... -······-······-·· 2. Line Diagram of the 69 kV tie line: ' --GO M12-3.2MVA So bros MS-1.5 MVA f--oo TalakagSs +-a~ M3-0.577 MVA c:::> UPGRADE TO 10MVA -- :-1.-l __ ; .,..,:• Mambuaya Ss 69/34.5-13.2kV j .. ·?:: ..." _ PROPOSED NGCP OPOL G :_..:~ SWITCHYARD ,.--------, ... ~ 138/69KV Construction of 69kV Tie line with lSkV underbuild, 3kms NGCPLUGAIT 2-7SMVA Legend: ------- Proposed N-1 69kV --Existlng69kv line LUMBO --Existing 34.5 kv line Ml-lOMVA -- .. ------ Proposed34.5kvline r~ Proposed Switch bay and Metering, 69kV NOTE: Mode of implementation (N-1.Project) 1. Year1{40kms) 69kV line N-1 project will be connected to NGCP Lugait Substation. 2. Year 2(44kms) & Year 3(44kms) 69kV line N-1 project will be connected to proposed of NGCP Opal Switchyard. 3. The 34.5kV load of Carmen-Talakag line connection point will be transferred to proposed 20MVA Mambuaya Substation for load center purposes. 3. Rate Impact: 7. There will be no rate impact because the project cost will be sufficiently covered by its existing Reinvestment Fund for Sustainable Capital Expenditure (RFSC); and PRAYER 8. It prays that the Commission, after due notice and hearing, approve its unplanned tie line capital project and, while the application may not yet be heard, or is pending, evaluate the application and grant it provisional approval and confirm the tie line capital project in order that it can conduct the necessary preparations for the acquisition of the materials necessary considering that the NGCP's 138 kV substation is forecasted to be completed in June 2015. The Commission has set the application for jurisdictional hearing, expository presentation, pre-trial conference and evidentiary ERC CASE NO. 2015-012 RC NOTICE/March 2, 2015 _Page 5 of~-----· --------------·-···---··· hearing on April 7, 2015 (Tuesday) at nine o'clock in the morning (9:00 A.M.), at the MORESCO l's Main Office, Poblacion, Laguindingan, Misamis Oriental. All persons who have an interest in the subject matter of the proceeding may become a party by filing, at least five (5) days prior to the initial hearing and subject to the requirements in the ERC's Rules of Practice and Procedure, a verified petition with the Commission giving the docket number and title of the proceeding and stating: (1) the petitioner's name and address; (2) the nature of petitioner's interest in the subject matter of the proceeding, and the way and manner in which such interest is affected by the issues involved in the proceeding; and (3) a statement of the relief desired. All other persons who may want their views known to the Commission with respect to the subject matter of the proceeding may file their opposition to the application or comment thereon at any stage of the proceeding before the applicant concludes the presentation of its evidence. No particular form of opposition or comment is required, but the document, letter or writing should contain the name and address of such person and a concise statement of the opposition or comment and the grounds relied upon. All such persons who may wish to have a copy of the application may request the applicant, prior to the date of the initial hearing, that they be furnished with a copy of the application. The applicant is hereby directed to furnish all those making a request with copies of the application and its attachments, subject to reimbursement of reasonable photocopying costs. Likewise, any such person may examine the application and other pertinent records filed with the Commission during the usual office hours. WITNESS, the Honorable Chairperson, ZENAIDA G. CRUZ­ DUCUT, and the Honorable Commissioners, ALFREDO J. NON, GLORIA VICTORIA C. YAP-TARUC and JOSEFINA PATRICIA A. MAGPALE-ASIRIT, Energy Regulatory Commission, this 2nd day of March 2015 at Pasig City. ecutive Director Ill ~/~ORESCO 1/ERC CASE NO. 2015-012 RC-NOTICE .