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Energy Regulatory Commission Application £oc- REPUBLIC OF THE PHILIPPINES 16 ENERGY REGULATORY COMMISSION FEB 23 P2 :39 SAN MIGUEL AVENUE, PASIG CITY RY IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF THE PROPOSED THREE (3) YEAR CAPITAL EXPENDITURE PROJECTS 20 -0 15 ERC CASE NO. 2016- RC - ZAMBOANGA DEL NORTE ELECTRIC COOPERATIVE, INC. SJ.1ffi (ZANECO), øaiQ.32 II Applicant x-------------------------- / APPLICATION APPLICANT, ZAMBOANGA DEL NORTE Electric Cooperative, Inc. (ZANECO for brevity), by counsel and unto this Honorable Commission, most respectfully states: THE APPLICANT Applicant ZANECO is an Electric Cooperative created and existing pursuant to the provisions of Presidential Decree No. 269 as amended, with principal office located at General Luna Street, Central Barangay, Dipolog City, Province of Zamboanga del Node, Philippines, represented herein by its General Manager, ADELMO P. LAPUT, duly authorized by virtue of Resolution No. 126, Series of 2015 dated October 18, 2015 of the Board of Directors, copy of which is attached hereto as Annex "A" and made an integral part hereof; The filing of the instant Application is likewise authorized under the afore-mentioned Resolution; 2. Applicant has been granted by the National Electrification Administration (NEA) an authority to operate and distribute electric light and power within the coverage area comprising the Cities of Dipolog and Dapitan,and the Municipalities of Godod, Gutalac, Jose Dalman, Katipunan, Kalawit, La Libertad, Leon Postigo, Liloy, Labason, Manukan, Mutia, Pihan, Polanco, Rizal, Roxas, Salug, Sergio Osmeña, Siayan, Sibutad, Sindangan and Tampilisan, all in the Province of Zamboanga del Node; THE APPLICATION AND ITS PURPOSE 3. This Application is filed in compliance with ERC RESOLUTION NO. 26, Series of 2009 (A Resolution Amending the Rules for Approval of Regulated Entities' Capital Expenditure Projects)" adopted pursuant to the mandate of Section 43 of Republic Act No. 9136 otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA) and its implementing Rules and Regulations, which categorically provides that all capital expenditure projects (CAPEX) shall be submitted to and for the approval of the Commission prior to its implementation, in relation to ERC Resolution No. 20, Series of 2011 which sets the timelines for the filing of the instant application; 4. The aforecited amended rules was issued by the Honorable Commission to ensure that the projects are timely, appropriate, necessary and cost efficient; to ensure that the proposed capital projects are consistent with the Distribution Development Plan (DDP), the Philippine Grid Code (PGC), the Philippines Distribution Code (PDC), and other relevant government issuances; and to ensure that the procurement of equipment, materials and services are transparent, competitive and compliant with the applicable laws and regulations. 5. In accordance with the Amended CAPEX Rules, consistent with the Distribution Development Plan and the Philippine Distribution Code, Applicant shall acquire, construct and implement the following three (3) year capital expenditure projects with a total approximate cost of Six Hundred Fifteen Million Four Hundred Eighty Two Thousand Four Hundred Ninety Seven Pesos and Fifteen Centavos (615,482,497.15). (Rest of the page intentionally left blank) PA THE PROPOSED CAPITAL EXPENDITURE PROJECTS 5.a.1 Network CAPEX Projects . SAFETY PROJECTS Project FUND Amount per Year of Implementation Total Cost Project Description Code SOURCE 2016 2017 2018 (Php) - Uprating of 10 MVA Polo, DXS Dapitan Substation to 20 NEA 54844,752.82 54,844,752.82 01 MVA (SCADA Ready) Rehabilitation of dilapidated/corroded distribution line of Lamao (2.302 km), Antonino (1 - km) & G. Sanchez, Liloy DXS NEA 8604,000.00 8,604,000.00 02 (1km) Coastal Areas using insulated conductors (Feeder I of Comunal, Liloy Substation - M5I) Line Rehabilitation on certain dilapidated primary line sections on DXS - the Feeder 1 of Polo, NEA 35,807,376.46 35,807,376.46 03 Dapitan Substation (Mu) using insulated conductors Rehabilitation & Uprating of dilapidated 3-kilometer Sicayab-Bucana primary line (from No. 2 ACSR to DXS- No. 1/0 ACSR) using RFSC 5,625,000.00 5,625,000.00 04 insulated conductors (Feeder 2 of Polo, Dapitan Substation - M12) Rehabilitation and conductor uprating of 20.1-kilometer dilapidated 3 phase line from 1/0 ACSR to 4/0 ACSR of DXS - Sulangon to Potongan NEA 40,200,000.00 40,200,000.00 05 Distribution Line using insulated conductors (Feeder 3 of Polo, - Dapitan Substation - M13) Rehabilitation of dilapidated distribution line of Barangay Balakan, Salug (1.15 km) and DXS - Barangay Raba, Godod (1 RFSC 4009615.63 4,009,615.63 06 km) using insulated conductors (Feeder 3 of Mucas, Salug Substation - M23) Rehabilitation of 20- kilometer dilapidated backbone line of Salug - DXS - Sindangan Section using NEA 40000,000.00 40,000,000.00 07 insulated conductors (Feeder I of Mucas, Salug Substation - M21) Rehabilitation of dilapidated 10-kilometer Guisokan to Disud DXS - backbone line using NEA 20,000,000.00 20,000,000.00 08 insulated conductors (Feeder I of Mucas, Salug Substation - M21 Sub-total (Php) 209,090,744.91 Table 1 . POWER QUALITY PROJECTS Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 2017 2018 Relocation & Refurbishing of M2 Substation from Mucas, Salug to DPQ - Malintuboan, Labason NEA 96,365,666.20 96,365,666.20 01 with Construction of 15- kilometer 69 kV line from Comunal, Liloy to Malintuboan, Labason Construction of new M4 - DPQ Obay, Polanco Substation RFSC 5,728,982.58 5,728,982.58 02 Feeder (M44) Sub-total (Php) 102,094,648.78 Table 2 . SYSTEM RELIABILITY PROJECTS Project FUND I Amount per Year of Implementation I I Project Description Total Cost Code SOURCE 2016 2017 2018 FA1 DSR - Purchase of reclosers to 01 improve the reliability of RFSC 4,900,000.00 4,900,000.00 Dipolog Area Sub-total (PhD) 4,900.000.00 5.a.2 Other Network CAPEX Prolects . OTHER CAPEX Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 2017 2018 Purchase of DOC - kilowatthour meters, NEA 43,997,811.88 47,364,950,96 50,825,094.65 142,187,857.49 01 metering materials and service drops - Purchase of Distribution DPQ Transformers for new NEA 29,889,650.00 37,387,950.00 46,251,750.00 113,529,350.00 02 consumers Sub-total (Php) 255,717,207.49 Table 4 5.a-3 Non - Network CAPEX Projects INSTRUMENTS (SPECIAL EQUIPMENT) Amount per Year of Implementation Project . . FUND Project Code I SOURCE 2016 2017 2018 DSE - Purchase of Digital 01 Power Analyzer RFSC 550,000.00 550,000.00 DSE - Purchase of Insulation 02 Resistance Tester RFSC 285,000.00 285,000.00 DSE - Purchase of Thermal 03 Imagers RFSC 1,075,000.00 1,075,000.00 Purchase of Load DSE - Profilers and Wireless 04 Ammeters RFSC 2,220,000.00 2,220,000.00 DSE - Acquisition of Ultrasonic 05 Detector RFSC 1,200000.00 1,200,000.00 DSE - Purchase of portable 06 working standard RFSC 1,300,000.00 1,300,000.00 Acquisition of Testing Equipment for DSE - Substation 07 Transformers RFSC 1,000,000.00 1,000,000.00 Sub-total (Php) I 7,630,000.00 Table 5 . TOOLS Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 I 2017 I 2018 PST - Purchase of linemen's I 01 tools RFSC 1 5,409,89600 I I 5,409,896.00 Sub-total (Php) 5,409,896.00 Table 6 . BUILDINGS Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 2017 2018 Construction of satellite 0MB - office for collection and NEA 9,700000.00 9,700,000.00 01 maintenance crew station. - Construction of 0MB Motorpool and RFSC 1000,000.00 1,000,000.00 02 Linemen s Quarter Sub-total (Php) 10,700,000.00 Table 7 . VEHICLES Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 2017 2018 Purchase motorcycle 0MB - (15. units for area RFSC 1,425,000.00 1,425,000.00 01 offices) Acquisition of Insulated Boom Truck for 69 kV NEA 15,000,000.00 15,000,000.00 0MB - line maintenance -30 02 meters (1 unit) Sub-total (Php) 1 16,425,000.00 Table 8 . COMMUNICATION SYSTEM Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 2017 I 2018 Purchase and Acquire RCS- Radio Communication RFSC 514,999,98 514,999.98 01 I System Sub-total (Php) 514,999.98 Table 9 . SOFTWARE Project FUND Amount per Year of Implementation Project Description Total Cost Code SOURCE 2016 I 2017 I 2018 Purchase of licensed I I EAS - Engineering Analysis RFSC I I 3,000000.00 3,000,000.00 01 Software Sub-total (Php) 3,000,000.00 Table 10 5.a.4 Sitio Electrification Projects 5.a.4.1. The Sitio Electrification Projects shall be financed through a government subsidy, thus costing therefore is not included herein. KILOMETER OF N2. PUROKJSITIO BARANGAY MUNICIPALITY LINES le U.B. O.S. Purok Camote 2, SitioLeop, 1. Barcelona, Dapitan City Barcelona Dapitan City 0.810 0.810 0.680 2. SitioKawayan Maria Christina Dapitan City 0.880 0.880 0.715 3. SitioTiwi Sulangon Dapitan City 2.000 2.000 4. PurokMolave Antipolo Dapitan City 1.650 1.650 0.845 5. Purok lB Teresita Pinan 1.430 1.340 0.800 6. SitioLuyungon Villahermosa Polanco 2.134 2.134 0.265 7. SitioBalingbing Villahermosa Polanco 2.205 2.205 0.270 8. Purok 3 Rizalina Rizal 2.220 1.715 - 9. Purok 2 Rizalina Rizal 4.100 4.100 0.290 10. PurokCamote Antonino Sergio Osmena 1.045 1.045 0.540 11.
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