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Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF THE EMERGENCY CAPITAL EXPENDITURE PROJECT: REPLACEMENT AND UPRATING OF POWER TRANSFORMER AT IRASAN SUBSTATION 2021-044 RC ERC CASE NO. 2020 - ___ RC June 09, 2021 ZAMBOANGA DEL NORTE ELECTRIC COOPERATIVE, INC. (ZANECO), 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 1. 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 Dipolog City, Zamboanga del Norte, Philippines, represented herein by its General Manager, Adelmo P. Laput, duly authorized by virtue of Resolution No. 152, Series of 2019 dated 01 October 2019, 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 1 electric light and power within the coverage area comprising the Cities of Dapitan and Dipolog, and the Municipalities of Rizal, Sibutad, La Libertad, Piñan, Mutia, Polanco, S. Osmeña, Katipunan, Roxas, Manukan, Jose Dalman, Sindangan, Siayan, Leon Postigo, Salug, Godod, Liloy, Labason, Gutalac, Tampilisan, and Kalawit, all in the Province of Zamboanga del Norte; THE APPLICATION AND ITS PURPOSE 3. This Application is filed in compliance with ERC Resolution No. 26, Series of 2009, particularly under Article III, Section 3.4 thereof. FACTUAL ANTECEDENTS 4. On 26 August 2019 at around 9:00AM, ZANECO’s 10 MVA Irasan Substation Transformer serving the municipality of Roxas, Manukan and Jose Dalman suddenly failed to deliver power resulting to total blackout in the affected areas. Copy of the Significant Incident Report (SIR) is attached hereto as Annex “B” as well as the letter informing the Honorable Commission of the incident as Annex “C”. 5. Several tests were conducted to determine the status of the 10MVA power transformer and found out that it is extremely damaged due to insulation failure on the primary side resulting to oil leaks, thus, needs to be replaced. The 10MVA power transformer was first energized in the year 1997 and prior to the incident the load factor was at 67.97%. 6. As a short-term measure, ZANECO temporarily distributed the load of the Irasan Substation to the adjacent 5MVA Sindangan substation and the 5MVA Piao Substation. 7. Considering the increasing load of the Sindangan Substation and the Piao Substation and the increasing economic activity of the areas served by the Irasan Substation, causes ZANECO to implement the Emergency CAPEX in order to replace the damaged transformer and uprate the same to accommodate the increasing demand in its franchise area. 2 PROPOSED EMERGENCY CAPEX PROJECT Replacement and Uprating of the Power Transformer at Project Title Irasan Substation This Emergency Capital Expenditure project is for the Project replacement and uprating of the busted power transformer Description from 10 MVA to 20 MVA SCADA Ready Power Transformer located at Irasan, Roxas, Zamboanga del Norte. The Substation capacity for ZANECO’s 10MVA Irasan Substation was operating at a load factor of 67.97% before it failed to operate on 26 August 2019. While ZANECO implemented load transfers as a short term measure, this Justifications temporary solution can no longer sustain the increasing and Benefits demand in its franchise area, thus, necessitated ZANECO to to be replace and upgrade its capacity. Delivered The result of the system analysis demonstrates substantial improvement on the power distribution system including increase of capacity, improvement of system reliability and reduction of power loss. Project Cost PhP28,210,404.20 Project Year 2019 Schedule “D” : Executive Summary of the Emergency CAPEX Project “D-1”: Incident Report and Photos of the Damaged Power Transformer “D-2”: Test Report “D-3”: Procurement Details Annexes “D-4”: Project Schedule “D-5”: Economic Analysis “D-6”: Bill of Materials “D-7”: MFSR as of December 2019 “D-8”: RFSC Utilization Report as of December 2019 “D-9”: Summary of Forecasting Models “D-10”: Single Line Diagram PROJECT FINANCING PLAN 8. The financing of the Emergency CAPEX will be sourced from the Reinvestment Fund for Sustainable CAPEX (“RFSC”); 3 9. Shown further is the simulation of the Applicant as to the indicative rate impact on the existing RFSC rate ZANECO with the implementation of the Emergency CAPEX project including the approved and pending Capital Expenditure Project Applications, to wit: Indicative Rate Impact PARTICULARS Unit 2020 2021 2022 TOTAL Cash balance, beginning, PhP 23,188,774 (62,456,801) (147,418,699) 23,188,774 excess/(shortfall) kilowatt-hour Sales kWh 276,550,082 287,414,419 298,278,755 862,243,256 CASH INFLOWS RFSC collected funds @ 0.3961 PhP 109,541,488 113,844,851 118,148,215 341,534,554 PhP/kWh Gov't. Subsidy (ERC Case No. 2019- PhP 570,973,238 570,973,238 039RC) Loan Proceeds from Bank/REFC PhP - - - - Loan Proceeds from NEA PhP - - - - Loan Proceeds from NEA (ERC Case PhP 668,254,754 474,596,025 461,000,644 1,603,851,423 No. 2019-039RC) Loan Proceeds from NEA (ERC Case No. 2010-050 RC; ERC Case No. 2016- PhP 76,788,628 76,788,628 015RC) Loan Proceeds from Bank/REFC (ERC PhP 28,127,896 28,127,896 Case No. 2016-015RC) Total Cash Inflows PhP 1,453,686,004 588,440,876 579,148,859 2,621,275,739 Available Cash for Disbursement PhP 1,476,874,778 525,984,075 431,730,161 2,644,464,513 4 CASH OUTFLOWS Capex Requirements PhP 28,210,404 - - 28,210,404 Capex Requirements (ERC Case No. PhP 668,254,754 474,596,025 461,000,644 1,603,851,423 2019-039RC) Capex Requirements (ERC Case No. 2010-050 RC; ERC Case No. 2016- PhP 120,330,140 120,330,140 015RC) Rural Electrification Projects (ERC PhP 570,973,238 570,973,238 Case No. 2019-039RC) Amortizations of existing loans PhP 49,279,202 37,459,659 37,459,659 124,198,521 Amortizations of new loans (NEA/Bank) PhP 80,630,554 141,357,821 204,412,976 426,401,352 (ERC Case No. 2019-039RC) Amortizations of new loans (Others) PhP - - - - Amortizations of new loans (ERC Case No. 2010-050 RC; ERC Case No. 2016- PhP 16,429,798 16,429,798 16,429,798 49,289,393 015RC) ERC Permit Fee PhP 5,223,489 3,559,470 3,457,505 12,240,464 Total Cash Outflows PhP 1,539,331,579 673,402,773 722,760,583 2,935,494,935 Cash balance, ending, PhP (62,456,801) (147,418,699) (291,030,422) excess/(shortfall) (291,030,422) Excess/(shortfall) on RFSC PhP/kWh (0.2258) (0.5129) (0.9757) (0.3375) 5 COMPLIANCE WITH PRE-FILING REQUIREMENTS 10. In compliance with Section 2, Rule 6 of the ERC Rules of Practice and Procedure, copies of this Application together with all its annexes and accompanying documents had been furnished by Applicant the Legislative Body of the City of Dipolog where Applicant principally operates and the Legislative Body of the Province of Zamboanga del Norte. Likewise, the Application was published in a newspaper of general circulation within the franchise area of the Applicant; 11. As proof of compliance of the service of the copies of the Application together with all its annexes are the Certifications issued by the Authorized Representatives of the Local Government Units and/or the Affidavit of Service executed by an employee of the Applicant and the first page of the Application bearing the receiving stamp of the aforementioned Offices as Annexes “E” and “F” respectively. Likewise attached hereto as Annexes “G” and “H” are the Affidavit of Publication and the newspaper issue containing the published Application; 12. Moreover, prior to the filing of this Application, a pre-filing conference with the concerned staff of the Commission was conducted pursuant to Section 4 of Rule 6, and for purposes of determining completeness of the supporting documents attached to the Application. PRAYER WHEREFORE, foregoing considered, Applicant respectfully prays that the Commission: 1. That after due notice and hearing the proposed capital projects/expenditures subject of this application be approved, declared just, reasonable, and equitable pursuant to the provisions of ERC Resolution No. 26, Series of 2009, and other related laws, rules and regulations; 2. That Applicant be authorized to recover from the member- consumers the costs incurred in the implementation of the approved Capital Expenditure Projects. Other reliefs just and equitable are likewise prayed for. 6 Cebu City, (for Pasig City), Philippines. 20 August 2020. A.C. GAVIOLA LAW OFFICE Counsel for ZANECO Rm. 203, 2/F Crown Port View Hotel 3rd Ave., North Reclamation Area, Cebu City (032) 233-2026; [email protected] BY: ALAN C. GAVIOLA PTR No. 410763; Province of Cebu; Jan. 10, 2020 IBP A.R. No. 34214643; Cebu City; Jan. 10, 2020 Roll No. 30385 MCLE Compliance III, 0019612; Dec. 14, 2010 ALAN BYRNE S. GAVIOLA PTR No. 406440; Cebu City; Dec. 09, 2019 IBP A.R. No. 31137542; Cebu City; Dec. 09, 2019 Roll No. 62695 MCLE Compliance VI, 0027706; Apr. 14, 2022 7 .
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    RURBAN CODE RURBAN DESCRIPTION 135301 ABORLAN, PALAWAN 135101 ABRA DE ILOG, OCCIDENTAL MINDORO 010100 ABRA, ILOCOS REGION 030801 ABUCAY, BATAAN 021501 ABULUG, CAGAYAN 083701 ABUYOG, LEYTE 012801 ADAMS, ILOCOS NORTE 135601 AGDANGAN, QUEZON 025701 AGLIPAY, QUIRINO PROVINCE 015501 AGNO, PANGASINAN 131001 AGONCILLO, BATANGAS 013301 AGOO, LA UNION 015502 AGUILAR, PANGASINAN 023124 AGUINALDO, ISABELA 100200 AGUSAN DEL NORTE, NORTHERN MINDANAO 100300 AGUSAN DEL SUR, NORTHERN MINDANAO 135302 AGUTAYA, PALAWAN 063001 AJUY, ILOILO 060400 AKLAN, WESTERN VISAYAS 135602 ALABAT, QUEZON 116301 ALABEL, SOUTH COTABATO 124701 ALAMADA, NORTH COTABATO 133401 ALAMINOS, LAGUNA 015503 ALAMINOS, PANGASINAN 083702 ALANGALANG, LEYTE 050500 ALBAY, BICOL REGION 083703 ALBUERA, LEYTE 071201 ALBURQUERQUE, BOHOL 021502 ALCALA, CAGAYAN 015504 ALCALA, PANGASINAN 072201 ALCANTARA, CEBU 135901 ALCANTARA, ROMBLON 072202 ALCOY, CEBU 072203 ALEGRIA, CEBU 106701 ALEGRIA, SURIGAO DEL NORTE 132101 ALFONSO, CAVITE 034901 ALIAGA, NUEVA ECIJA 071202 ALICIA, BOHOL 023101 ALICIA, ISABELA 097301 ALICIA, ZAMBOANGA DEL SUR 012901 ALILEM, ILOCOS SUR 063002 ALIMODIAN, ILOILO 131002 ALITAGTAG, BATANGAS 021503 ALLACAPAN, CAGAYAN 084801 ALLEN, NORTHERN SAMAR 086001 ALMAGRO, SAMAR (WESTERN SAMAR) 083704 ALMERIA, LEYTE 072204 ALOGUINSAN, CEBU 104201 ALORAN, MISAMIS OCCIDENTAL 060401 ALTAVAS, AKLAN 104301 ALUBIJID, MISAMIS ORIENTAL 132102 AMADEO, CAVITE 025001 AMBAGUIO, NUEVA VIZCAYA 074601 AMLAN, NEGROS ORIENTAL 123801 AMPATUAN, MAGUINDANAO 021504 AMULUNG, CAGAYAN 086401 ANAHAWAN, SOUTHERN LEYTE
  • Zamboanga Peninsula Regional Recovery Program 2020-2022

    Zamboanga Peninsula Regional Recovery Program 2020-2022

    ZAMBOANGA PENINSULA REGIONAL RECOVERY PROGRAM 2020-2022 Regional Development Council Regional Disaster Risk Reduction and Management Council Region IX 15 June 2020 MESSAGE The Corona Virus-19 (COVID-19) pandemic has caught all of us unaware. It has not only disrupted our normal daily lives but also caused damage to our economy, infrastructures, livelihood, agriculture, health and environment , among others. The different national and regional line agencies and local government units (LGUs) have been working relentlessly together to establish health protocols and guidelines to minimize the damage and lessen the impact of COVID-19 to the people and their means of living, and to save lives. The private sector is also doing its share as partner of the government during this crisis. As we are rebuilding our economy, we hope that the lessons we are learning from this pandemic would influence and transform us to a new and better normal way of living. The Zamboanga Peninsula Recovery Program (RRP) is intended to help the region recover from the impact of COVID-19. It will serve as the region’s blueprint towards rebuilding a resilient and better community. It includes an assessment of the extent of damage caused by the pandemic, the government’s response, the framework on how to go about rebuilding, and the proposed programs and projects for recovery. The RRP shall be undertaken through the collaboration among the line agencies, LGUs, the private sector and the citizenry. We recognize the efforts put together by the region’s stakeholders and their contribution in the formulation of the Regional Recovery Program in such a short period of time.