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Thursday, May 25, 2006

Meralco granted permits for electricity service in Quezon, Laguna

Manila Bulletin
May 25, 2006


Utility firm Manila Electric Company (Meralco) was granted a certificate of public convenience and necessity (CPCN) for the provision of electricity service to customers in Tiaong, Quezon and San Pablo City, Laguna.

As prescribed, a CPCN has to be secured by a utility firm from the Energy Regulatory Commission (ERC) before it can construct an electric substations or distribution lines in an area that is covered by its franchise; or if it has to set some modifications in its service in a particular domain.

This is different from a franchise, of which issuance, is a sole jurisdiction of Congress as provided under the Electric Power Industry Reform Act.

In its ruling, the ERC noted that "after a thorough evaluation of the documents and testimonies of witnesses presented, the Commission found that Meralco met all the requirements for the issuance of CPCN." The CPCN will be effective until June 28, 2028.

It has been indicated in its application that Meralco serves Tiaong, Quezon via two 34.5 kilovolt and one 6.24 kV primary distribution circuits sourced from the San Pablo 1 and San Pablo 2 substations.

The company also lined up two major electrical capital projects for a ten-year spread for the development of both Tiaong and San Pablo.

"Based on the documents submitted and the testimonies of the witnesses, Meralco was found to have the technical expertise, capability and resources to adequately and reliably serve the subject areas’ future electrical power needs," ERC noted.

On June 9, 2003, Congress has renewed Meralco’s franchise "to construct, operate and maintain a distribution system for the conveyance of electric power to the end-users in the cities/municipalities of Metro Manila, and the adjacent provinces of Bulacan, Cavite and Rizal; and in some cities, municipalities and barangays in the provinces of Batangas, Laguna, Quezon and Pampanga for a period of 25 years from June 28, 2003 or until June 28, 2028. (MMV)

The utility firm currently provides electric services to the 17 cities and municipalities in Metro Manila; 24 in Bulacan; and 23 in Cavite.

In its other jurisdictions, it is providing electric service in 14 cities and municipalities in the province of Rizal; three cities and municipalities in Batangas; 19 in Laguna; 11 in Quezon and 2 barangays in Apalit, Pampanga and one in San Simon, Pampanga; and 14 in Candaba town.

Meralco remains the biggest electric distribution utility in the country covering at least 70-percent of customers in the Luzon grid.

Despite difficult financial straits it went through, company officials vowed that they will strive hard to be in the forefront of delivering the country’s electricity needs. (MMV)

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