Republic of the Philippines ENERGY REGULATORY COMMISSION foroniy és hapr roved for’ Pest San Miguel Avenue, Pasig City 4 IN THE MATTER OF THE APPLICATION FOR APPROVAL OF A CAPITAL EXPENDITURE PROJECT TO REPLACE THE 10 MVA POWER TRANSFORMER AT THE FORTUNA SUBSTATION, WITH PRAYER FOR THE IMMEDIATE ISSUANCE OF A PROVISIONAL AUTHORITY SAN FERNANDO ELECTRIC LIGHT AND POWER COMPANY, INC. (SFELAPCO) Applicant ERC CASE NO. 2015-042 RC On March 5, 2015, the San Fernando Electric Light and Power Company, Inc. (SFELAPCO) filed an application for approval of a capital expenditure project to replace the 10 MVA power transformer at the Fortuna Substation, with prayer for the immediate issuance of a provisional authority In the said application, SFELAPCO alleged, among others, the following 1. ‘It is a private corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office address at Limjoco Street, Barangay Lourdes, City of San Fernando, Pampanga; 2. It has a legislative franchise under Republic Act. No. 9967 (R.A. 9967) dated February 6, 2010, to construct, operate and maintain a distribution system for the conveyance ofERC CASE NO. 2015-042 RC ORDER/April 6, 2015, Page 2 of 12 electric power to end users in the City of San Fernando, Municipality of Floridablanca and Barangays Talang and Ligaya in the Municipality of Guagua, all in the Province of Pampanga; The Municipality of Floridablanca is being served by its Fortuna Substation with a sole 10 MVA power transformer. It has two (2) feeders and protected by Power Circuit Breakers; The Fortuna Substation is connected to the 69 kV sub- transmission owned by the National Grid Corporation of the Philippines (NGCP) located in Hermosa, Bataan. The circuit-kilometer distance between the Fortuna Substation and the NGCP-Hermosa Substation is around 32 circuit- kilometers. The NGCP Power kWh meter is located at the SFELAPCO-Fortuna Substation; The table below shows the statistic growth of the Fortuna Substation with the annual kWh energy purchase, kW peak demand as registered in the NGCP Power kWh meter, power factor, load factor, and the system losses. As of year 2014, the registered peak kW demand in the NGCP Power kWh meter is 7,927 kilowatt. The annual average kW demand growth is 5.52% for the ten (10) year period: YEARS [PURCHASED | Yearly [PEAK KW] early | % Power [% load |% System Ikwa enercy _|Growth_|oemano |Growth [Factor [Factor _|Losses Year 2004 14,550,437, 4,676 aso] cosa [2029 Year 2005 23si2.268 | e1sox| 4.753 [r6sx| o9so| sear [12.72 Year 2006 2a3i2.297 | 3.40%] 792 [ o.arm| sas] 57.92 939) Year 2007 26325201 | s2ex| sare | 6.76%] onze | 58.70 a1 Year 2008 26,957,432 | 2.02%] 5,033 [1.62%] sam | 60.92 3.99) Year 2009 29,667,380 | 6.74%] 5516 | 9.60%| sas] 59.33 743 Year 2010 32,989,201 | 15.08%] 6326 | sa.6e%| saso| 5953 8.48) Year 2011 33.178580| 057%| 6099 | 2.746 98.86] 58.27 8.04) Year 2012 35204649 | 63i%| 6.779 | 430% once | 59.28) 8.06) Year 2013 35657.a24| 9.six| 7.201] 6.82% 98.76 | 60.94 8.36, [Year 2014 40,78,986| 5.09%| 7.927| _9.47%| 98.73 | 6852 751 average growth/ year | 11.91%| 5.52%ERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 3 of 1 2 10. Description of the Project The project consists of the replacement of the 10 MVA power transformer at the Fortuna Substation with a 25 MVA power transformer and the additional associated switchgear and protection equipment. The primary feeders will be increased from two (2) feeders to five (5) feeders; The new switchgear equipment will be placed in the existing control building; After the energization of the proposed 25 MVA power transformer, the existing 10 MVA power transformer will be de-energized and will be used as N-1 reliability service; Justification and Reasons of the Project It filed the instant application pursuant to Section 1.2 of the Commission's Resolution No. 17, Series of 2011 (A Resolution Adopting the Investor-Owned Electric Distribution Utility Planning Manual) which provides that an additional power transformer capacity will be necessary in the event that a substation is forecasted to be loaded above 70% of its maximum rated capacity; Shown below is the Fortuna Substation’s rated capacity above the 70% of the maximum rated capacity of the 10 MVA power transformer. In year 2014, using the 95% power factor, the power transformer is loaded at 83.44% of the power transformer maximum rated MVA capacity, to wit: inwiva @ [Power Transformer |3 Loading of the Iw demand [95% PF capacity MVA__|Power Transformer Year 2009 552 sal 30.00 58.06% year 2010 6.33, 6.66 10.00 65.59% year 2013 650 on 20.00 68.41% Year 2012 6.78 733 10.00 71.35% year 2013 7.24 7.62 10.00 76.22% vear 2034 7.93 338 10.00 33.44%ERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 4 of 12 11 12. 13. If the 10 MVA power transformer will not be replaced, the power quality and capacity of the said substation will be compromised to the prejudice of the consumers. Frequent power interruptions will be imminent due to the overloaded power transformer; It will incur additional maintenance cost to avert the overloading power transformer and power interruption; The economic growth in the area affected may eventually suffer if it cannot provide the needed power capacity to its consumers; Options/Alternative Considered in Lieu of the Proposed Project 14. 15. One alternative considered in lieu of the proposed project is to add a 15 MVA power transformer. However, it was disapproved due to the flexibility of service that will be affected. It cannot fully transfer the increasing feeders load from one feeder to another. Since the 10 MVA power transformer is already loaded, any transfer of loads coming from the 15 MVA power transformer cannot be fully accommodated in case of maintenance and/or in emergency situations; It decided that the best course of action is to install a power transformer that has higher capacity. In this case, the transfer of loads from one feeder to another will be flexible and reliable in terms of service. A 25 MVA power transformer would have enough capacity to serve the growing loads of the Municipality of Floridablanca for another ten (10) years or more; Forecast Planning Data It used the forecast method of Linear Averaging Method. The Municipality of Floridablanca has an annual average growth of 5.52% for a ten (10)-year period. It decided to use the forecast of another ten (10)-year period at growth rate of 5.5% annually. Shown below is the ten (10)-year load forecast of the 25 MVA power transformer at 70% maximum rated capacity:ERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 5 of 12 [TEN YEARS FORECAS 1% POWER FACTOR YEAR 2015] 2016| 2017| 2018] 2019| 2020| 2022] 2022] 2023| 2024 [Forecast mw. 236] @82| 9.31] 9.82] 10.36| 10.93] 11.53] 12.17] 12.83] 1354 FORECASTED MVA @ 95% powerfactor | 8.803) 9.29| 9.80] 10.34| 10.91| 11.53] 12.14] 12.81] 1351] 14.25| [TRANSFORMER CAPACITY, MVA es as as | | as as a | as |e zs [ a [70x OF TaaNsronMen cAPaciTy, mvAl 47.5] 17.50] 17.50] 17.50] 17.50] 17.50] 17.50] 17.50] 17.50] 17.50] we 18. Technical Analysis The 69 kV sub-transmission line is owned by NGCP which serves Pampanga Il Electric Cooperative, Inc. (PELCO II), Basa Airbase and SFELAPCO. The 69 kV sub-transmission line from NGCP-Hermosa Substation will be replaced with higher capacity wires by NGCP as indicated in its application in ERC Case No. 2014-016 RC filed before the Commission on February 25, 2014. This will address the additional capacity of the sub- transmission line serving the Fortuna Substation. The sub-transmission line will have sufficient capacity to handle the increase of the power transformer from 25 MVA without overloading. At present, it has no plan to acquire the existing NGCP-Hermosa 69-kV sub- transmission line; The proposed 25 MVA power transformer will have a standard asset life of thirty (30) years which conforms to the Commission's existing policy. It will have an on-load tap changer in order to control the power quality for the benefit of the customers. Shown below is the brief power transformer specification: SPECIFICATION | Proposed Power Transformer MVA Rated Capacity | 20/25 | i / | | Phase Three phase | —_}OA/FA il Immersed Outdoor Frequency ___—_—'| 60 Hz Voltages 67,000/ 13,800 volts Tap Changer (On-Load (31 taps) j BL 350/110 kvolt |ERC CASE NO. 2015-042 RC ORDER/April 6, 2015, Page 6 of 12 19. 20. 21. 22. The 25 MVA power transformer will be protected on the primary side by 69 kV lightning arresters, 69 kV disconnect switch and 69 kV power circuit breaker. Differential relays, overcurrent relays, Bucholtz relay and other necessary protection will also be installed; On the secondary side of the power transformers, an incoming feeder and five (5) 13.8-volt distribution will be installed with the necessary overcurrent protections. The feeders will be increased from two (2) feeders to five (5) feeders to shorten the length of the existing feeders to improve power quality, voltage quality, decrease the voltage drops, improve the system losses, reliability of the system and also prevent power interruptions; Its existing building will be used for the switchgear and other equipment; Economic Analysis Rate impact study Cost of the Project PhP46,948,000.00 Life of Asset Thirty (30) years Rate of Return 14.7% Cash Return = PhP537,544,175.00 Formula’ Per Kwh based on the current sales per annum will be: [(46,948,000)/30)] + (0.147x46,948,000) 537,544,175 = PhP 0.0157/kWhERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 7 of 12 Conceptual Engineering Design and Drawings 23. It submitted the following documents in support of the application: Description [Annexes NGCP-Hermosa 69-KV Single Line Diagram I 1 Fortuna Substation: 10 MVA Power Substation Single Line Diagram 7 J [Fortuna Substation: Proposed 25 MVA Power Substation Single Line Diagram kK Conneetion of the 10 MVA Power Transformer and 25 MVA [Power Single Line Diagram Fortuna Substation: Site Development Plan z\s|- Equipment Technical Description and Cost Detailed Project Cost Estimates 24, Shown below is the estimated detailed project cost amounting to Forty-Six Million Nine Hundred Forty Eight Thousand Pesos (PhP46,948,000.00) : Item T : No. Particulars Quantity |__ Amount, PhP 1 _| Power transformer unit 18,000,000.00 [2 [69 kV disconnect switch [set 400,000.00 3__[ Lightning Arresters 3 pes: 240,000.00 Power Circuit Breaker, 72.5 KV, 4_| Primary Side A set 2,750,000.00 ‘15 KV Switchgear panels, 15 kV 5 _| System Power Circuit Breaker _| 5 sets 6 | 15 kV System Power Circuit ,000.00 Breaker, Main Breaker i set 2,500,000.00 15 KV System Load Breaks switch with CLF for Station 7_| Service Transformer 1 set 8 | 15 kV Switchgear Panel, 9 Tset panels 9 | Control Panels, Indoor type Pre- standing _ 1 set 950,000.00 70_| Overcurrent Relay T sets 7,540,000.00 | 11_| Transformer Differential Relay | 1 set 350,000.00 12_| Over/Under Voltage Relay [1 set 120,000.00 13__[ Under Frequency Relay 1 set 120,000.00) 14__| Power Monitoring meters [6 sets 7,440,000.00 15 | Lock out relay 4 [60,000.00 16 _| Control Switeh [13 sets INCLUDED 17_| Indicating Lamps 26 sets INCLUDED {18 [Annunciator 6 sets INCLUDED. | 19 | 240 volts AG Distribution panel 45,000.00 [20 7[48 volts DC Distribution panel 45,000.00 21_| Potential Transformer Spe 210,000.00 | 22_| Station Service Transformer 1 set ____ 250,000.00ERC CASE NO. 2015-042 RC ORDERYApril 6, 2015 Page 8 of 12 Project Financing Plan 25. The proposed project will be financed thru its internally generated funds; Proposed GANTT Chart Schedule 26. To avoid further overloading of the power transformer, the project has to be completed in a period of twelve (12) months. It should be immediately implemented and energized before the end of year 2015. Below is the proposed schedule of the project. fgantrcnant TT : 1 Janis] Feb-15| aris] apras|wayis| Junis| ulas] augis] Sep-is] Octis| Novas| becas| DESIGN PURCHASE) CANVASS, MANUFACTURING [evi WORKS DELIVERY INSTALLATION resting. [COMMISSIONING ALLEGATION IN SUPPORT OF THE PRAYER FOR PROVISIONAL APPROVAL 27. It is imperative for the proposed project to be completed in twelve (12) months in order to avoid overloading of the transformer and for its consumers in the Municipality of Floridablanca to have a continuous, efficient and reliable power service; 28. Accopy of the Judicial Affidavit of Engr. Eliseo P. Lapuz in support is attached to the application as Annex ‘I COMPLIANCE WITH THE PRE-FILING REQUIREMENTS 29. It has furnished the local legislative bodies of the following: a) the Province of Pampanga; b) the Municipality of Floridablanca; c) the Municipality of Guagua; and d) the Barangay Talang and Cruz, withERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 9 of 12 copies of its application and its annexes. The copies of the Certifications issued by the aforementioned legislative bodies attesting to the fact of service and its annexes are attached to the application and marked as Annexes “C’” to Gege 30. It had also caused the publication of the instant application in a newspaper of general circulation in the Philippines. The copies of the Affidavit of Publication and the newspaper issue where the said application was published are attached to the application and marked as Annexes “D” and “E”, respectively; and 31. Itprays that the Commission: a) Issue, immediately upon filing of the application, a provisional authority for the approval of the implementation of a capital expenditure project to replace the 10 MVA power transformer at the Fortuna Substation; and b) Approve, after notice and hearing, the instant application and render judgment making provisional approval permanent. Finding the said application sufficient in form and substance with the required fees having been paid, the same is hereby set for jurisdictional hearing, expository presentation, pre-trial conference and evidentiary hearing on May 22, 2015 (Friday) at nine o'clock in the morning (9:00 A.M.) at SFELAPCO’s Main Office, Limjoco Street, Barangay Lourdes, City of San Fernando, Pampanga. SFELAPCO is hereby directed to cause the publication of the attached Notice of Public Hearing, at its own expense, twice (2x) for two (2) successive weeks in two (2) newspapers of general circulations in the Philippines, with the date of the last publication to be made not later than ten (10) days before the date of the scheduled initial hearing. It is also directed to inform the consumers, by any other means available and appropriate, of the filing of the instant application, its reasons therefor, and of the scheduled hearing thereon.ERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 10 of 12 Let copies of the application, this Order and the attached Notice of Public Hearing be furnished the Office of the Solicitor General (OSG), the Commission on Audit (COA), and the Committees on Energy of both Houses of Congress. They are hereby requested, if they so desire, to send their duly authorized representatives at the scheduled hearing. Likewise, let copies of this Order and the attached Notice of Public Hearing be furnished the Offices of the Mayors of San Fernando City and the Municipalities of Floridablanca and Guagua, for the appropriate posting thereof on their respective bulletin boards. SFELAPCO is hereby directed to furnish all those making requests therefor with copies of the application and its attachments, subject to reimbursement of reasonable photocopying costs. On the date of the initial hearing, SFELAPCO must submit to the Commission its written Compliance with the jurisdictional requirements attaching therewith, methodically arranged and duly marked, the evidences on the actual posting and publication of the Notice of Public Hearing consisting of certifications issued to that effect, signed by the afore-mentioned Mayors or their duly authorized representatives, bearing the seals of their offices, and the affidavits of the Editors or Business Managers of the newspapers where the said Notice of Public Hearing were published together with the complete issues of the said newspapers, and such other proofs of compliance with the requirements of the Commission. SFELAPCO and all interested parties are directed to submit, at least five (5) days before the date of initial hearing and pre-trial conference, their respective Pre-trial Briefs containing, among others: a) A summary of admitted facts and proposed stipulation of facts; b) The issues to be tried or resolved; c) The documents or exhibits to be presented, stating the purposes and proposed markings therefore; andERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 11 of 12 d) The number and names of the witnesses, with their written testimonies in an individual affidavit form, to be attached to the Pre-trial Brief. Failure of SFELAPCO to submit the required Pre-trial Brief and Judicial Affidavits of its witnesses within the prescribed period shall be a ground for cancellation of the scheduled hearing, and the resetting of which shall be six (6) months from said date of cancellation. As part of the pre-trial conference, SFELAPCO must also be prepared to make an expository presentation of its application, aided by whatever communication medium that it may deem appropriate for the purpose, in order to put in plain words and explain, for the benefit of the consumers and other concerned parties, what the application is all about and the reasons and justifications being cited in support thereof. SO ORDERED. Pasig City, April 6, 2015. FOR AND BY AUTHORITY OF THE COMMISSION: wh G. CG Seur Chairperson is fel seen A800 ooERC CASE NO. 2015-042 RC ORDER/April 6, 2015 Page 12 of 12 Copy Furnished: 1. 10. Attys. Norberto F. Manjares, Jr. and Norberto C. Manjares, Ill Counsel for Applicant San Femando Electric Light and Power Company, Inc (SFELAPCO) No. 6 Saint Anne Street, Provident Villages, Marikina City THE OFFICE OF THE SOLICITOR GENERAL 234 Amorsolo Street, Legaspi Village, Makati City Metro Manila THE COMMISSION ON AUDIT Don Mariano Marcos Avenue Diliman, Quezon City, Metro Manila THE COMMITTEE ON ENERGY House of the Senate GSIS Building, Roxas Bivd., Pasay City, Metro Manila THE COMMITTEE ON ENERGY House of Representatives Batasan Hills, Quezon City, Metro Manila The City Mayor San Fernando, Pampanga San Fernando Electric Light and Power Company, Inc. (SFELAPCO) Villa Victoria, City of San Fernando Pampanga, 2000 MR. JOSE T. LAZATIN Vice-President and General Manager San Femando Electric Light and Power Company, Inc (SFELAPCO) Villa Victoria, City of San Fernando Pampanga, 2000 The Municipal Mayor Floridablanca, Pampanga The Municipal Mayor Guagua, Pampanga