ERC rejects sale of Transco assets to PANELCO

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THE Energy Regulatory Commission (ERC) has disapproved the sale of various sub-transmission lines and assets of the National Transmission Corp. (Transco) to Pangasinan Electric Cooperative, Inc. (PANELCO I).

In a seven-page decision, the ERC denied the joint application of Transco and PANELCO I for such transaction as covered by a lease purchase agreement (LPA).

Transco is set to sell the Labrador-Bani 69 kV Line with a circuit length of 44.66 kilometers to PANELCO I for P26.2 million.

But during the hearing and based on an ocular inspection, the ERC found out that PANELCO I is not only the distribution utility connected to the sub-transmission assets.


“The lines are inter-connected and presently being shared by PANELCO I and the Central Pangasinan Electric Cooperative, Inc. (CENPELCO).

The ERC also issued a resolution authorizing the National Grid Corporation of the Philippines (NGCP) and the electric cooperatives to enter into a memorandum of agreement (MOA) for the amortization of uncollected charges and residual sub-transmission charges.

In view of the resolution, the ERC said the Labrador-Sual 69 kV assets are classified as transmission assets. Being classified as transmission assets, the ERC said “they could no longer be sold to PANELCO I.”

“Since these assets are not among those listed under Annex A of the Resolution No. 4, Series of 2013, the same have been reverted to NGCP’s Regulatory Asset Base,” the ERC said.

The ERC, however, said the structures from Sual to Bani are classified as connection/sub-transmission assets and qualified for sale to PANELCO I.

Because of this, the ERC directed Transco and PANELCO I to negotiate and execute a new LPA for the sale of the said assets.

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