LA TRINIDAD, Benguet - The amount of P566 million has been earmarked by the Benguet Electric Cooperative (Beneco) to fund the implementation of its five-year capital expenditure projects to improve power distribution efficiency even to non-viable areas in the vegetable-producing province of Benguet and to address the increasing load requirements brought about by the influx of investors in the Baguio and Benguet areas.
International Journal of Grid and Utility Computing
Beneco general manager Gerardo P. Verzosa pointed out there will be no rate adjustments to be imposed by the rural electric cooperative to its over 130,000 consumers to fund the capital expenditure projects, citing that the utility's Board of Directors is against rate increases to fund the numerous projects in the next five years.
In order to realize its ambition to reduce systems loss by improving its system through the various lined-up projects, Verzosa explained that the power firm will source out the needed funds from the P0.2178 per kilowatt-hour being collected from the consumers in the form of members' contribution for capital expenditures.
However, the Energy Regulatory Commission (ERC) will decide on the capital expenditure proposals by the electric cooperatives in the coming months to ensure that the members' contribution for capital expenditures will be spent purposely to improve service efficiency of the distribution utilities and not for other purposes.
Earlier, ERC authorized Beneco to impose rate adjustment of P0.2178 per kilowatt-hour as embodied in the rules for setting electric cooperatives' wheeling rates, which is a new rate setting methodology approved by the regulating body in 2009.
The new methodology aims to improve the operations and maintenance services of electric cooperatives nationwide so that consumers will be given efficient service by the distribution utilities.
Verzosa disclosed that the utility will be generating at least P70 million annually from the members' contribution for capital expenditures and it will be used to fund its numerous development projects for the benefit of the thousands of consumers.
According to Verzosa, the electric cooperative is also capable of loaning millions of pesos to augment the funds generated from the members' contribution for capital expenditures because of its Class A ''plus'' status.
For his part, Engineer Melchor Licoben, chief of the cooperative's engineering department, explained that the five-year capital expenditure projects will focus on grid and safety compliance, new connection requirements, power quality, reliability, and efficiency of the distribution system.
Aside from being required by the Electric Power Industry Reform Act (EPIRA), the capital expenditure projects will ensure that the distribution utility could efficiently deliver the growing power load requirements in Baguio City and Benguet, especially in the urban centers.
Part of the projects include the setting up of two 50-MVA substations within its purchased property along South Drive since the Baguio City central business district area has been identified as a critical load area that could significantly increase in the coming years.
