gulnoryc for%08-09-17).pdferccaseno.2016-200 rc! , notice ofpublic hearing/ 17july 2017 page2of14 i...
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"GUlNORy c
I " '" 0""*0 ~.. 'f Aoprovfld fOr%
Republic ofthe Philippines .. " r flcy::': zENERGYREGULATORYCOMMISS ON ".,,,(,i9
San Miguel Avenue, Pasig City wo>r..eq".ph{
IN THE MA'ITER OF THEAPPLICATION FORAPPROVAL OF THECAPITAL EXPENDITUREPROJECTS FOR THE YEARS2013 TO 2016 AND FORAUTHORITY TO SECURELOAN WITH PRAYER FORPROVISIONAL AUTHORITY,
ERC CASE NO. 2016 -200 RC
Applicant.}(------------------------------------)(
BENGUETCOOPERATIVE,(BENECO),
ELECTRICINC.
DOOKETED. AUG 09 20R
DAte. ~';.':/~'="-""By: •.....---tfY. .. .,-_ .. _-
NOTICE OF PUBLIC HEARl G
TOALLINTERESTEDPARTIES:
Notice is hereby given that on 16 December 2016, BenguetElectric Cooperative, Inc. (BENECO) filed an Applic6tion seeking theCommission's approval of the capital expenditure I projects for theyears 2013 to 2016 and for authority to secure loan, with prayer forprovisional authority. I
BENECO alleged the following in its APPlicatidn:
1. BENECO is an electric cooperative duly organized and existingunder and by virtue of the laws of the Republic of th Philippines,with principal office at BENECO, Barangay Alapang, La Trinidad,Benguet.
2. The Applicant has an exclusive franchise issued by the NationalElectrification Administration (NEA) to operate an electric lightand power services in Baguio City and the 13 mu icipalities ofBenguet -- Atok, Bakun, Bokod, Buguias, Kabaya I, Kapangan,Kibungan, !logon, La Trinidad, MankaYan, SabIa , Tuba andTublay; I
ERC CASE NO. 2016-200 RC ! ,NOTICE OF PUBLIC HEARING/ 17 JULY 2017
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I3. As part of its Distribution Development Plan, herein Applicant
intends to apply for the approval of its distribJtion capitalexpenditure (CAPEX) projects for 2013to 12016pursltant to ERCResolution No. 26, series of 2009, Resolution No. 20, Jeries of 2011and other pertinent laws and regulation~. The foliowing tableprovides the pertinent information about thJ CAPEX ptojects.
I ITABLE 1.ANNUAL CAPITAL EXPENDI'FURE RE~UIREMENTS
(2013-2016r INetwork Proje~ts
Item Project Title pJoject Co ts ImplementationI I Year
Installation of lOMVA, 23KV Power2,855,601.001 Transformer at the Sinipsip 2016 ,
Substation
2 Replacement of Insulators of Circuit 5,885,l1C .80 2014-2016 ,1, 2 & ~ at Atok Substation. ,
3Replacement of Insulators of Circuit 2,818,14 .28 2016 I
4 & <; at Mankavan SubstatiDn
4Replacement of LA/FCO of Circuit 1, 1,OOO,OO( .00 20162 & ~ at AtokSubstation !
5Replacement of LA/FCO of Circuit 1,000,00C .0.0 2016 I
4& 5 at Mankavan Substation. IUprating of the lOMVA Power
, II6 Transformer at the Irisan 2,635,84 ..00 2016ISubstation to 20/25MVA
IPower TransformerReconductoring of Backbone Linel
,,7 (main trunks) of Feeder 3 and 5,333,94 .93 2013-2015 I
Feeder 4 at lrisan Substati6n.Additional One(l) Feeder at Irisan I8 Sis to junction going to I 1,198,93 -45 2016
Sablan I IInstallation of LVProtection at the9 , 5,980,00 ..00 2.016
lrisan Substation ,Uprating of the 2DMVAPower
Transformer at NSC ;1,898,0010 Substation to 50 MVAPow~r .00 2014-2015
Transformer IReconductoring of Backbone Line:
11 (main trunks) of Feeder 9 and 7,432,61 .87 2013-2014Feeder 10 at NSC Substation(Phase 11). ,
Construction of Two (2) new Feeder12 of the new 50MVA Power 6,155,10 -49 2014-2016
Transformer.Installation of LVProtection for the
13 Two New Feeders at the NSC 6,891,41 .25 2016Substation
Installation of 23kV Medium Volt~ge14 Main Secondary Circuit 1,500,00 I .00 2016
Breakers I
I I
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17 JULY 2017
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15 Installation of Single Metering at theIl,871,l1l.83 2014NSC Snbstation
16 Construction afTie-Line at Bineng,12,903,98, .97 2014La Trinidad, Ben2:uet
Construction of Tie-Line at Camp 1, I17 Tuba, Benguet to Luelco
I722,89' -48 2014
BonndaryReconductoring of Backbone Line
342,721-9018 (main trunks) of Feeder 13 at 2014Lamnt Substation
19Primary Metered consumers
14,988,811.77 2013-2016(Primary metering only)Primary extension due to new I I 2013-201620 connection(DT inclnded) 169,532,99t.95Primary extension due to power Iquality at the secondary side21 6,663,972.80 2013-2015(DT included)jlncluding Isubdivision
22 Secondary line uprating to correct119,238,55~.54 2013-2016low yoltage.
23 Installation of reclosers 114,799,614.29 2014-2016
24 Installation of Load Break Switches 12,769,75~-48 2014-2016
Installation of Grounding
3,372,7J30Assemblies and Continuous 2013-201425 Neutral Conductor at BokodLine and cansule !!roundimt ,
Capsule Grounding for the identified26 locations of BENECO 7,392,84 .88 2013-2016
coverage
27Secondary Line Expansion due to 15,561,38 .53 2013-2016new connectionReplacement of old 3-wire
ungrounded secondary
28 distribution to 2-wire 3,227,1~ .16 2013-2016grounded thrn replacement of3-wire kWh revenue meters to2-wirekWh meters ,
29Rural Electrification Projects i -(SEPjBLEP Programs)
Sub-total = 2. I5,973,19 .95
Other Network P [ojects
Service drop conductor due to new I .46 2013-20161 8,494,74connections I
Revenue meters for new connection I 2013-20162 pl,080,oT .96consumersSmart Metering
,2,016.003 3,000,00 .00
Sub-total = I4 2,574,774-42, .
I
ERC CASE NO. 2016-200 RC , .NOTICE OF PUBLIC HEARING/ 17 JULY 20171PAGE40F14 I
Non-Network pro~ects,
1 Installation of SCADA 11,646,350!00 2013-2016
2 Engineering Softwares i,oDa,ooo 00 2,016.00
3 Database Softwares g,ooo,ooo 00 2,016.00
4Automatic Meter Reading (AMR) for 3,618,02 .21 2013-2016bi~ load consumers
5 Service Vehicles 4,539,511 .07 2014-2015
6 BENECO General Headquarters I .81Construction 46,943,38 2015-2016I ,
Procurement of IT Communication 2013-20167 Svstem 1,000,000 .00
8 Procurement of Equipment and 9,864,76( .30 2013-2016ToolsSub-total ~ 16:1,612,034l39
i i
I,
Item Distribution Projects lost, ,I. Network Projects I I 225,973,195.95
Other Network Projects,
II. 42,574.774.42III. Non-Network Projects , 161,612,034.39
Total Projects Costs ~ I '430,160,004.76
fortown
: ITITUTIONSTABLE 2.INTEREST RATES OF fINANfING IN
,,
YEARs,, ,5 I 10 15
FINANCING iINSTITUTION c;.c;o% ._,. c;. 0% ~."o%
I
. The CAPEX will be financed from l~ans bas d on an i terest rate givena period of time. The project costs and Jhe desire source of loanfinance the projects will be implemented ac arding to cash flow as shoin the table below.
,
,,
I
,
5
4. The projects are to be implemented on a ltaggered basis between 2013until 2016 and the financing of the said projects will b~ funded from loansfrom financial institutions. The debt servicing of the Ibans will be chargedagainst BENECO's collection from the Merrlbers' Contribution for CapitalExpenditures, now called Reinvestment Fund for Sustainable CapitalExpenditures (RFSC). A portion of the CAPEX may alba be funded by theApplicant's internally generated. fundsl Howev'!'r, other lendinginstitutions may be preferred if they will off'!'rBENECO better competitiverates for a certain lending period compared to those listed below
,ERC CASE NO. 2016-200 RC iNOTICE OF PUBLIC HEARING/ 17 JULY 2017
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TABLE 3.FINANCING PLAN
NETWORK PROJECTS I- -"SUBTRANSMISSION DEVELOPMENT AND SUBSTATION PROJECTS. -... . . -~. .
PROJECTS;;. , ; ~;,,;.
I'~,'2014 -l ;-.;
l'rlbMMtNDED2013 2015 - 2016 -.;. SOURCE OF" , .t ,-;.-:;, FINANCING
FUND" ' ," PERIOD
Inflation Rate 1 2 3 4 ,- . ..- -. , - - .-
Installation oflOMVA, 23KV FINANCING
1 Power736.694-30 5 INSTITUTION
iTransformerat Ithe Sinipsip Sis. I IReplacement of ,Insulators of
,FINANCING
2 Circuit 1, 2 & 3163,100.91 1,386,689.71 5 INSTITUTION
at Atok ,SubstationReplacement of I I
Insulators ofI i, FINANCING
Circuit 4 & 5 at,
3, 5
Mankayan 727,030.61 INSTITUTION
Substation •
Replacement of jI
LA/FCOof •
4 Circuit I, 2 & 3,
at Atokj I
,Substation I
• ,Replacement of iLA/FCOof I , ,
5 Circuit 4 & 5 atMankayanSubstation. ,Uprating of the - , t10MVA Power
,Transformer at
, ,I
,6 Irisan , FINANCING
substation to 680,002.17 5 INSTITUTION20/2SMVA IPowerTransformer ,Reconductoringof BackboneLine (main •trunks) of
, ,7
,Feeder 3 and I iFeeder 4 at
,Irisan tSubstation.
,Additional I I
,,One(l) Feeder at
,,8 lrisan Sis to , I rjunction going I
to Sablan ,Installation of i
LV Protection at,
FINANCING ,,9 the Irisan 1,542,734.25 5 INSTITUTION
Substation I-.. -,-Uprating of the2oMVAPowerTransformer at
,,
10 NSC Substation ,
to 50 MVA,
Power ; I, ,Transformer
I !,
I
ERC CASE NO. 2016-200 RC INOTICE OF PUBLIC HEARING/ 17 JULY 20171PAGE60F14 I
Reconductoringof BackboneLine (main
11 trunks) ofFeeder 9 andFeeder 10 atNSC Substation
I (Phase Ill,Construction ofTwo (2) newFeeder of the12 newsoMVAPowerTransformer.Installation of :LVProtection FINANCING
13 for the Two New , ,861.97 5 INSTITUTIONFeed~~ at the
1,7NSCS sInstallation of23kVMedium !
14 Voltage Main'jSecondary
Circuit BreakersInstallation of
15 69kV CircuitBreaker at ,,Manasok LineInstallation of
16 Single Meteringat the NSCSubstationConstruction of ITie-Line at ,
17 Bineng, La,
Trinidad,Benirnet
,Construction of ITie-Line at
18 Camp 1,Tuba,Benguet toLuekoBoundaryReconductoringof BackboneLine (main
19 trunks) ofFeeder 13 atLamutSubstation(Phase JI), , IPrimary ,Metered ,
2 ,0
consumers(Primary Imetering only)Primary ,
,extension due to FINANCING
21, ~Iewconnec~~n 1,296,836.81 8,910.35 5 INSTITUTION'11,1DTincluded !. -Primary Iextension due to
22 power quality at Ithe secondary Iside (DT ,included)/
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17 JULY 2017'PAGE70F14 i I
IncludingSubdivisionSecondary lineuprating to • FINANCING
23 correct low 3°3.444.94 2,57f,899.61 5 INSTITUTIONvoltal!e. I
--'"' -_. - ..Installation of I •24 Reclosers ,Installation of I25 Load BreakSwitchesInstallation ofGroundingAssemblies andContinuous
26 NeutralConductor at IBokod Line and
I;
capsule ,l!roundinlitCapsuleGrounding for
27the identifiedlocations ofBENECOCOVERAGE
I,Secondary Line I 128 Expansion due FINANCINGto new 229,213.95 2,0 ,776.20 5 INSTITUTIONconnection I
Replacement of , I
old 3-wire , Iungrounded ,secondary ,distribution to ,2-wire grounded
I, FINANCING
29 thru - 5'5,964.63 5 INSTITUTIONreplacement of I3-wire kWh
I,revenue meters •to 2-wire kWh
,, ,meters ,Rural IElectrification I
3° Projects ,(5EP/BLEP UNDER SUBSIDY BY PRES. NINOY IPrograms) AOUINO ,SUB-TOTAL = I- - 1.QQ2.!'iQ6.61 2.,8406'.8, .
I I 1
OTHER NETWORK PROJECTS I •.' . ~_~.-':;....~-_;,iSECONDARYDISTRIBUTION DEVELOpMENT"PROJECrS .... .. - '.'.,,:~.~'-~~~,~,t-i~" 'jlc,;;:i.~;;tili;~ltm;:.Q~MENDE~~,.;:-.;', " . SDURCEOF .
PROJECTS 201;3"" . . '2014 2015 I '_,''2016'\';:.'. ;", ~:_. I;1~ANCING' :",I FUND.' 'j, , j. 'F. ," ,\:'~PERlOD -' -
Service drop
65J,073-96conductor , FINANCING
1 due to new, 5 INSTITUTION-, I ,
connections I IRevenue
I I .1meters for ,2 new 5
FINANCING.368,749.78 3,092.923.17 I INSTITUTtON
connection Iconsumers .. -;
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17 JULY 20171PAGE 8 OF 14 I
ISmart
.._-_.I I FINANCING
3 Meterin~;
6.0< ! 5 INSTITUTION. . .SUB- ITOTAL- - - ,68 . 8 4.521.944.07
II NON-NETWORK'PROJECTS , U; . I" ;.. •~ICO~lMENDED. . . , SOURCE OFPROJECTS , 2013 2014 2015 .2oi6. i"," •.. FINANCING
FUNDIt -_.- - r '. , /, pERIODInstallation ; I FINANCING
1 afSCADA 1 ,88,S93.2O 5 INSTITUTION
2Engineering
iSoftwaresDatabase .- -," FINANCINGI3 Softwares 6.9S 5 INSTITUTIO'N iAutomaticMeter iReading
,FINANCING,
4 , 5 INSTITIITION(AMR) for ,77j,946.95,
big load Iconsumers , ,Service - - ... .
I I FINANCING5 Vehicles 67.29 14.29S.869.16 5 INSTITIITION
BENECOI I
6 General , FINANCINGHeadquarters , 1,265,384.50 10,758,343.59 5 INSTITUTIONConstruction I ! IProcurement l7aflTCommunication S~temProcurement 1B of Equipmentand Tools
TOTAL
jNON-INETWORK
PROJECfS - . 4,839.351.79 27.790,699.89- I
I I---- - '2015]
. ,
(:a,~) 2016PROJECfS 2013- 2014- 2015 (RFSC) '-(fimincin RFSC (financin. ,..
GENERATIONDEVELOPMENrPROJECf (l\tAN-ASOK~\INIHYDRO . . . . . .NETWORK
••.• <8.'<7." ~1.Q81.478.82 "A 180001 ..••• 'VI""2 60••b 11:.881_17"-.01
" ,PROJECTS 66:''171086.88OTHER NEIWORK I 6"<!'<lo:..01.212 1~.2Q~.01;.2!;PROJECTS 12.7660'17.08 "-.0:.72.<110:..17 6.000_716.27 .NON NETWORK I 84.4!>i26210:.n 1 28" '>'I1.7~
' .ASSETS '0 6.02 Q.8'l7.0Q7.!>1 1"1.148144"~O 'I6.7Q22<12.20.
125,658.989.b7I
,65,069,990.34 66.390,891.50 54.318,862.29 17,165.506.67 116,456,330.41,
,,,,I,
, I •
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17JULY 201111PAGE 9 OF 14 I
ILending
20:13"" 2014"" (:01~)20:15 ,
(:61~)2016
Institution RFSC (financin RFSC (financingLFINANCING
112$.658.989.0INSTITUTION. . - 116,456,330.41
RFSC (outrightpaymcnt~om 65,069,990.34 66.39°,891.50 54.318,862.29 . 17,165.506.67 -collectionTOtall"1CW ICapex ProjectProject Cost 65,069.990.34 66,39°,891.50 54,318,862.29 (25,658,989'1' 17,165,506.67 116,456,330.41requirement/Amortization
.i
I1
Table 4.CAPEX PLAN ANNUJ CASH FLow
g g. g typService (ROS), said this current Application must bnly be filedwhen the CAPEX Application for 2010 -12012 shall have beenapproved. The Applicant filed before the ERe its Applitation for theapproval of the 2010 - 2012 CAPEX onlOctober 8, 2010. TheCommission approved the said Applicatiorl on Marc~ 16, 2015, Acopy of the Decision of which was rec~ved by the Applicantsometime in June, 2015; (b) The ROS required thelApplicant toamend its Application for the approval of the 20'3-2d,6 CAPEX toreflect the CAPEX projects for the period that have been actuallyaccomplished until the filing of this Application. e Applicant
IYear
2013 2014 , 2015 2016 .-Annunl Revenue Cash
p 77,435,803.61 P 81,83~.659.90Flow from RFSC Rate P 77.060.472.33 P 85,883,982.36and Pole RentalAdd: Balance, beg. P 3.331.37 P 551,180.43 I PO.ao P 1,°72,031.54AnnunllnOow from Po,ao po.oJ P 125,6JS,989.07 P 116,456.330.41Loans ,TOTAI..INFLOW P 063,803.70 P .986,984.0 ? 207 49 648.97 P 203,412 344.31CASH OUTFLOWCASH FOR CAPITALEXPENDI11JRENetwork Projects P 31,958,957.24 P 51,981,478.8 P68,9 2,695.95 P 82,252,255.81Other Network Projects P 12,766,037.08 P 4,572,315.17- P 13,425,748.52 P 13,293,017.25Non Network Projects P 20,344,996.02 P 9,837,097.51 P 97,599,406.89 P 38,076,564.03ERCCapex Approval Fees P 488,024.93 P 497.931.69 P 1,3 9,833.89 P 1,002,163.78Subtotal P 65,558,015.27 P 66,888,823.19 P 181,32 ,685.25 P 134.624.000.86CASH FOR DEBT SERVICE INb"WLOANS INetwork Projects Po.oo Po.oO P 1,9 2,596.61 P 23,183,563.81Other Network Projects Po.oo Po.OO P3 8,749.78 P 4.521,944.°7Non Network Projects PO.oo PO.or;. P4,8 9,351.79 P 27,790,699.89DEBT SERVICE FOR ,
P 7.20b,698.19NEWLOAJ"lS Po.oo P o.ocr P 55,496,207.78
DEBT SERVICE FOR , IEXISTING LOANS P 10,954,608.00 P 21.825,372.67 P 17.891,234.00 P 16.349.800.00
TOTAL DEBT SERVICE P 10,954,608.00 P 21,825,372.67 P 25,09;1,932.19 P 71.846,007.78TOTAL Oun"LOWS " p 76.512,623.27 P 88,7i4,iCj5.85 :;P."2~~~~,;~,~7.43 P 206,470,008.64-IGF USED',' .f. - : P 10,727;211,76" "' p 3,057,664.33.. ~';,N'''''''' ~\~{."';~:'BALANCE, END P 551,180.43 Po.oO P 1,072,031,54 Po.OO
6. The Applicant is filing this Application only his year Jecause of thefollowin reasons: (a) The ERC, throu h th Re ulato a erations
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17Juts 2017PAGE 10 OF 14 I.
Icomplied and hence, this Application which now reflects theaccomplished projects as of date. l
7. The Applicant BENECO believes that the lmplemen ation of theproposed capital expenditure projects would be to the~est interestof its consumers as it would ensure vikbility of the electriccooperatives. It would ensure complia'nce with BENECO'sobligations and performance standards at Ithe least st. It willresult to positive net benefits to improve reliability and~reduction ofsystem loss. The CAPEXwas also designed; to allow the Applicantto meet the feasibility requirements of ~Ifinancing I institutionsthrough a financing plan that identifies the funding sources,amount and repayment terms, and amortization period. Included inthe CAPEX is the impact of the proposed iprojects oh BENECO'sexisting rates. 1
8. When the Applicant will not resort to borrowing t finance itsCAPEX,the rate impact will be PO.3540/kWh, meanihg the RFSCrate to be collected from the member I consumeh will costPO.3540/kWh. The current BENECORFSCI(formerlylMCC)rate isPO.2178/kWh which means that BENECOwill have to apply for aPO.1362/kWh of rate increase to be able to ~ollect the RFSCcost ofPO.3540/kWh and be able to implement the proj~cts. Whenapplying for a reasonable rate increase, only a maximum ofadditional 10% of the RFSCshall be allowell. Should Ithis happen,an additional PO.02178/kWh will be needed and this kill result toan RFSCor MCCrate of PO.23958/kWh.
9. The CAPEXPlan was envisioned to have the least rate Impact basedon a carefully studied plan that will bring tlle value to tustomers atthe most reasonable and justifiable electricitif rate or a! least cost ofservice. The annual rate impact of the CAPEXon th~ Applicant'sRFSCis as follows: .
TABLE 5.RATE IMPACT ANALYSIS. I
2013 2015 2016
TotDI Ca.••h Outflow for New Lono~ Amortization
Jhr-hl Inod Actunl Cost o(ProJ«1
Ph~' S 1.<;01m Irm"nUl.tion (tlr20;~~201'" Ph 60 • Ph 2 661
ERC Con"x Annro"l1l F~s PhD A.SS.02.4.C1'1 Ph, '7.C1'l1.6<l ~h • • •• Ph 100216."711.
ExIstinfl Loons - Annuo! omortb.ntlon PhDI0.Q<;A..60S.00 PhD2.1sJ.O;"'l7:l..67 h017.8 I .00 Ph 16 Soo.OO
,,
, ,r
•,••J
I:r 201 -:1016. I!h 2.6 6 2. 6.
I
SUMMAR\' OJ: PROJECTS FOR ClPHX PLA.~ 201 -201
I1181 ." 6 • •• ••
.08I ! I 66.0 .00 ••• "• . , 'I • • 0 o •.
Php66,3.90,891.S0 P~I,6I,SI9,560.48 PhP72,661,714.45
Ph ,
Ph 2. . 6
Ph 16161 0
Php430,J60,004.71
PROJHCfITEM A.'"NUAL
AMOR1l7.All0N'GE."lERATIONDHVTPROJECf
I. AT ~tA.."l-ASOKNF.I"WORK
II. PROJECTSOTHERNETWORK
III. PROJRCTSNON NIITWORK
IV. ASSKTSTOTAL CAPRXPROJECTS •
,
ERC CASE NO. 2016-200 RC : INOTICE OF PUBLIC HEARING/ 17 JULY 20171PAGE 11 OF 14 I
Annual CAPEX Plnn R''''cnu<: Rc uif'<'m"nt
BlIlllncc: Additlonnl Revenue Re ulremenl
6 ~Ia62 .• 88 • • 80 606a8. 00' 6 8.a
I--_. - ---
" 8 .06 lJ28 ••• . . 10 20 .." . •• 6 ".8
TOTAl PROJECfEDSAl.ES k'\Ih 0 8 6110 • 6 8 "RFSC RIlle per kWh ~r
0"' 81ERe ProvtrionlllAUlhori 0.21 8 0.21 8 O.lU 8Pro ectcil Rc\"cnuc furIU'SC@99%Cul1ectioneffiei"n 1080.:n 0018 :80212 8 • 8 18. 850" of Income (romPole Rental" ••• 6 2.12 6. •• • 6. 8 . , • 6 .8
cctcd.Rc\'cnue 060 II. 80 .66 81 8 a 6 . 0 8 88 82. 6
II10. The table shows that the revenue requirement per k,*r to finance
the CAPEX is PO.2308/kWhr or an additiobal revenue per kWh ofPO.0130 of RFSC or MCC Rate since the cJrrent RFSC is PO.2178.The Applicant, however, will not apply for an increase in RFSC rate.It will continue to collect the RFSC rate 0(PO.2178. The supposedincrease in RFSC rate will be sourced IJrorn othbr internallygenerated funds. I 1
11. As earlier stated, the proposed projects shall be fina ced throughloans from financing institutions. In relatioh thereto, the Applicantthen likewise applies before this HonoraIlle Commission for anauthority to secure the loans.
12. The Applicant finds the need to implement the projects and securethe necessary funding while the Application is ~ti1l pendingevaluation before the Honorable Commissiim. The A~plicant praysthat it be granted and issued a provisionallauthority to implementthe projects whicb are deemed necessary and urgent feir the deliveryof a more secure, reliable and efficient j electric slervice to itsconsumers. I l
'3. The Applicant has duly complied with the !pre-filing equirementsby furnishing copies of the Application together with its supportingannexes and accompanying documents the pegislativelbodies of theLocal Government Units within BENECO'slfranchise Area - BaguioCity (the major place of operation). the pfovince of IBenguet (thetown where the Applicant's principal offiie is locat~d) and LaTrinidad, Benguet (location of principal offlce).The pplicant haslikewise published the Application in its entirety in a ewspaper ofgeneral circulation in Baguio City and thb Provine of Benguet,which are made integral parts hereof.
'4. Before the filing of the Application, the technical, financial and legalrepresentatives of the Applicant conducted a pre-filiJg conferencewith the representatives of this Commissibn. In corbpliance withpre-filing requirements, BENECO hereby attaches ana submits thefollowing: (1)Affidavit of Publication by the ~aguio Mialand Courier- Annex B; (2)The published Application - Annh c; (3)Theproof of service of the Application to tbe Shnggunian~ Panlungsod
ERC CASENO. 2016-200 RC ,,NOTICE OF PUBLIC HEARING/ 17JULY 20171PAGE 12 OF 14 I ,
of Baguio City, Sangguniang panlalawiga4 of Ben~et and theSangguniang Bayan of La Trinidad, Benguet-Annexe D, E andF, respectively; (5) The Certifications of Posting of th Applicationby the Sangguniang Panlungsod of Baguio City, angguniangPanlalawigan of Benguet and Sangguniang iBayan of a Trinidad,Benguet- Annexes D-l, E-l and F-l, respectively.
I15.Also submitted is the Applicant's Capital Exbenditure Plan (2013 -
2016) - Annex G- which contains the fdllowing: (k) TechnicalAnalysis; Projected Financial and Ecortomic Coh Analysis;(b)Conceptual Engineering Design and DraWings; (c) IProject CostEstimates; (d) Project Financing Plan; and (~) Gantt CHart Scheduleof the Proposed Capital Expenditure,ProjectS.
16. In support for the prayer for a proVisional luthority t implementthe CAPEX and the prayer for authoritY to secu e loan, theApplicant has attached herewith the Judicial Affi avit of GMGerardo Verzosa - Annex H. Verzpsa, thel General anager, hasbeen authorized by the Board of Directqrs (BOD) I to file thisApplication and to represent the electric cooperative in theproceedings before the Commission. The artthority is Fontained inResolution No. 37-2010 which the BOD pa~sed on May 17, 2013.The said Resolution (Annex A) also contait\ed the BdD's approvalof the CAPEX (2013-2016).
PRAYER
WHEREFORE, premises considered, it is mo~ respectfullyprayed before this Honorable Commission that after d e notice andhearing, an Order be issued: I I
a) Approving the Applicant'~ capita~ Expenditure Projectsfor 2013 - 2016including its finanding plan; ~nd
b) Authorizing the Applicant lo secur~ loans for the financial. f h . IreqUIrement 0 t e proJects.
Further, the Applicant prays !that a wovisional authority toimplement the said capital expenditure projects be is ed pendingtheir final evaluation by the Honoraile comrssion.
The Commission has set the Application for ,etermination ofcompliance with the jurisdictio~a! r~quiremettts, expositorypresentation, Pre-tria! Conference, and prJsentatiot, of evidence on07 September 2017 (Thursday) at I nine <l'clock in themorning (9:00 A.M.), at BENECO's prin".pal office atBarangay South Drive, Bagnio City. I
ERC CASE NO. 2016-200 RC .NOTICE OF PUBLIC HEARING/ 17 JUl.Y 20dPAGE 13 OF 14 1
All persons who have an interest in ~he subj ct matter of theinstant case may become a party by filing with the Commission averified Petition to Intervene at least five (5) days prior to the initialhearing and subject to the requirements under Rule 9 of the 2006Rules of Practice and Procedure, indic~ting therein the docketnumber and title of the case and stating the following"
1) The petitioner's name and ~ddrest j2) The nature of petitioner's interes~ in the ubject matter of
the proceeding and the way and mannel- in which suchinterest is affected by the issues involved iJ the proceeding;and .
3) A statement of the relief desired.ii
All other persons who may Want tneir views known to theCommission with respect to the suIiject m~tter of the case may filetheir Opposition or Comment thereon at arty stage df the proceedingbefore Applicant rests its case, subject to I'the reqiliirements underRule 9 of the 2006 Rules of Practice and Procedurt No particularform of Opposition or Comment is required! but the document, letter,or writing should contain the following: I
1) The name and address of such person;,,2) A concise statement of the Ppposifion or C,mment; and
3) The grounds relied upon.
All such persons who wish to. have l\ copy o~the Applicationmay request from Applicant that th,ey be furnishe with the same,prior to the date of the initial hearing. APplj'cant is h reby directed tofurnish all those making such request with copies 0 ' the Applicationand its attachments, subject to the reimbursemeJt of reasonablephotocopying costs. Any such person m~y like01se examine theApplication and other pertinent records filed with I he Commissionduring the standard officehours.
ERC CASE NO. 2016-200 RCNOTICE OF PUBLIC HEARING/ 17 JULY 20171PAGE 140F 14 ! ,
. I~WITNESS, the Honorable Offic~r In (S arge of ERC,ALFREDO J. NON, and the Honorable (lommissi ners, GLORIAVICTORIA C. YAP-TARUC and GERONIMO • STA. ANA,~~~gy Regulatory Commission, thi~ 17'h d
1'ay of JjUIY2017 in Pasig
FORJD BY UTHO ,TYOFTHECOMMISSION:,
JOSEFINA PATRICOversight Com
I
AG ALE-ASIRIT,
I sioner fa LegalII