Negros Power gets ERC nod for P3.74-B grid upgrades

Negros Electric and Power Corp. (NEPC) has secured regulatory approval for its P3.74-billion capital expenditure program to fund major upgrades to its electricity distribution network, although the recovery of project costs will remain subject to further review.

In a decision on 9 October, the Energy Regulatory Commission (ERC) authorized Negros Power to implement 37 capital expenditure (CAPEX) projects covering regulatory years 2024 to 2026 to improve power reliability, reduce system losses, and modernize aging infrastructure.

The approval provides the company with regulatory clearance to pursue investments in substations, distribution lines, transformers, and metering systems as it strengthens electricity services across its franchise area.

“After due deliberation and evaluation of all the evidence submitted, and appreciation of all the information gathered, the Commission, pursuant to its regulatory powers, hereby resolves to AUTHORIZE NEPC to implement thirty-seven CAPEX projects covered by the instant Application,” the ERC said in its decision.

The regulator approved an updated project cost of P3.73 billion, with the amount eligible for recovery through electricity rates to be determined during the appropriate regulatory proceedings.

“It should be emphasized that the proposed CAPEX projects shall be subject to optimization based on actual use and/or implementation during the rate reset process for the pertinent regulatory period,” the ERC said.

The review is intended to ensure that only prudent and necessary investments are considered for cost recovery, balancing the company’s infrastructure requirements with consumer protection.

Among the approved projects are upgrades to distribution substations, replacement of defective transformers, rehabilitation of primary and secondary distribution lines, installation of advanced metering equipment, and improvements to network monitoring systems.

As of 30 June, the company had fully implemented 11 projects, while 25 were partially completed and one had yet to begin.

The ERC acknowledged that several projects were already underway before the issuance of its decision, recognizing the company’s efforts to improve its distribution facilities.

However, the regulator emphasized that completed investments would remain subject to regulatory review and compliance requirements.

Within 15 calendar days from receipt of the decision, the NEPC is also required to pay a CAPEX permit fee of P27.99 million.