2011

TRANSMISSION DEVELOPMENT PLAN Consultation Report

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Table of Contents
1. INTRODUCTION .................................................................................................................................. 1 2. CONSULTATION PROCESS .................................................................................................................. 1 2.1 Public Consultation ....................................................................................................................... 1 2.2 Other Consultation Meetings ....................................................................................................... 1 3. FOCUS OF THE CONSULTATION ......................................................................................................... 3 3.1 Volume I: Major Network Development....................................................................................... 3 3.2 Volume II (Part 1): Operations and Maintenance ......................................................................... 3 3.3 Volume II (Part 2): Metering ......................................................................................................... 3 3.4 Volume III: System Operations ..................................................................................................... 3 4. RESPONSE ........................................................................................................................................... 4 5. SUMMARY OF COMMENTS ................................................................................................................ 5

Tables
Table 1 Table 2 Table 3 Table 4 Table 5 Distribution of Participants ..................................................................................................... 4 General Issues ......................................................................................................................... 6 Luzon Grid Issues .................................................................................................................. 30 Mindanao Grid Issues ........................................................................................................... 34 Visayas Grid Issues ................................................................................................................ 36

Annexes
Annex A Pro-forma Invitation Annex B Broadsheet Publications Annex C DoE Meeting Highlights Annex D List of Participants

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1. INTRODUCTION
In response to the changes in the electrical transmission system and to the needs of its customers across the country, NGCP undertakes the annual updating of the Transmission Development Plan (TDP). Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) mandates NGCP to consult the Electric Power Industry Participants in the preparation of the TDP. This report contains the proceedings of the public consultations for the 2011 TDP. It explains NGCPs position and response to the questions, comments and inquiries raised during the various consultation meetings.

2. CONSULTATION PROCESS
The consultation process started even prior to the conduct of simulation studies when NGCP met with district offices together with major customers nationwide, to validate the substation forecast and discuss any significant development that may require expansion of transmission facilities. Upon completion of the TDP Consultation Draft and meeting with DOE and TRANSCO, NGCP formally started with the consultation process with the posting of the Consultation Draft (Volumes 1 to 3) on NGCPs corporate website (www.ngcp.ph) starting 13 December 2011. The pro-forma invitation (please see Annex A), which was signed by the NGCP President, were distributed nationwide to the grid customers. To reach to a greater audience, NGCP published the announcement for the Public Consultation on two major broadsheets (see Annex B), The Philippine Star and Philippine Daily Inquirer on 11 December 2011 and 10 December 2012, respectively. 2.1 Public Consultation NGCP conducted the consultation meetings with the stakeholders by region: Luzon 05 January 2012 at Sulu Hotel, Diliman, Quezon City Mindanao 10 January 2012 at Marco Polo Hotel, Davao City Visayas 13 January 2012 at Parklane Hotel, Cebu City 2.2 Other Consultation Meetings NGCP also conducted separate presentation meetings with major stakeholders: Philippine Electricity Market Corporation (PEMC) 22 November 2011 at PEMC Office, Robinsons-Equitable Tower, Ortigas Center, Pasig City;

Grid Management Committee (GMC) and Distribution Management Committee (DMC) 13 December 2011 at the NGCP Office; Manila Electric Company (MERALCO) 15 December 2011 at Lopez Building, Meralco Compound, Ortigas Avenue, Pasig City; Department of Energy (DOE) The first consultation meeting was held on 20 September 2011 at the NGCP Building, Quezon Avenue Corner BIR Road, Diliman, Quezon City. Present in the meeting were the department undersecretaries and directors of the different bureaus. The second meeting with DOE was held at the PEMC Office Robinsons-Equitable Tower, Ortigas Center, Pasig City, on 05 December 2011 with no less than DOE Secretary Jose Rene D. Almendras presiding. The highlights of this meeting are listed in Annex C; and National Transmission Corporation (TransCo) NGCP met with the National Transmission Corporation on two occasions to discuss the TDP Consultation Draft. The first was on 12 September 2011 at NGCP Office while the second meeting was on 04 January 2012 at the TransCo Office.

3. FOCUS OF THE CONSULTATION

The public consultation is a venue and opportunity for the stakeholders to provide feedback and comment on the content and scope of the TDP. The three-volume TDP consists of: Major Network Development (Volume I), Operation and Maintenance Programs (Volume II, Part 1), Metering Services (Volume II, Part 2) and System Operations (Volume III, Part 1). 3.1 Volume I: Major Network Development This report focuses on the proposed network expansion and upgrades which are based on the system simulations studies conducted by NGCP. 3.2 Volume II (Part 1): Operations and Maintenance This report covers the plans to ensure the networks reliability and capability to continuously provide the level of power quality required by the industry. Included herein are the proposed plans for the rehabilitation, replacement, repair and/or maintenance of transmission and sub-transmission lines and substation equipment covering each grid. 3.3 Volume II (Part 2): Metering This report covers the proposed capital projects for expansion, upgrade, rehabilitation and replacement programs of NGCP for Transmission Revenue Metering Facilities. It also covers the acquisition of capital equipment and common-use infrastructure for revenue metering service. 3.4 Volume III: System Operations This report covers the proposed upgrading, restoration, replacement, repair and/or maintenance projects for the telecommunication systems and infrastructures, protection, SCADA/MBSC and other supervision-related applications and equipment necessary for the effective management of the national power grid and the systems stability, and in dispatching generation, including but not limited to market operations and arrangement for ancillary services.

4. RESPONSE
A total of 187 stakeholders across the archipelago representing 56 electric cooperatives, 16 private distribution utilities, 40 generation companies, 60 non-utility customers, 6 government agencies and 9 non-governmental organizations participated in the public consultation meetings. Shown below is the breakdown of the attendees from each grid. Table 1 Category Cooperative Private DU Government Generators Industry Others (Academe, NGOs, etc.) TOTAL Distribution of Participants Luzon 22 10 3 21 35 6 97 Visayas 16 3 2 14 14 1 50 Mindanao 18 3 1 5 11 2 40 Philippines 56 16 6 40 60 9 187

5. SUMMARY OF COMMENTS
The comments, issues and questions raised during the public consultation meetings and sent to comments_tdp@ngcp.ph, and NGCPs response to each of them, are summarized in the following pages.

2011 Transmission Development Plan Public Consultation Report

Table 2

General Issues Concerned Comments Party

TransCo

Issues Issues Concerned Party

1 TDP Preparation

Comments Response NGCP

NGCP Response

CEPALCO

Proposed Projects

TransCo

TransCo expressed its desire not only to be NGCP has invited TransCo to participate in an consulted but to be actively involved in the TDP in-house training on power system studies and preparation. transmission planning. This is part of NGCPs efforts to extend assistance to TransCo in terms TransCo admits that presently, they do not of capacity building for the latters technical have yet the technical capabilities in using the team. special application software for system simulation studies. There seems to be some lapses in the With the enactment of EPIRA, generation transmission development planning if it is not planning becomes DOEs responsibility and based on an integrated resource planning transmission by NGCP. NGCP assures that approach. We understand that this is not solely before the conduct of the simulation studies for the responsibility of NGCP. However, we the TDP, there has been good coordination suggest NGCP to initiate discussions with DOE, between NGCP and DOE. NGCP will also take up with generators and distributors as well, in the the issue with DOE. preparation of the PDP and TDP under an integrated resource planning framework.. Are those projects being declared by DOE in the Both committed and indicative are included in list include indicative projects? DOEs plan. Per agreement with DOE, NGCP will follow the generation line up listed in the DOE Power Development Program (PDP). It should be noted that the PDP and TDP are updated on an annual basis. TransCo is aware of the November 2010 Some other projects were already identified application of NGCP. Our observation was there but were not filed yet because of prioritization were notable changes from the said application and transmission tariff impact consideration.

TransCo

2011 Transmission Development Plan Public Consultation Report

ANECO

compared to the 2011 TDP when the draft came out some time mid 2011. How come there were major additional projects in such a short time? Assuming the years written on the TDP are the indicative years that the plants will be online, have you validated if the proposed power projects will really be online on the indicated years therein? There are instances that we cannot implement the power projects on the year it is expected to come in.

NGCP needs to implement the projects this early, thus the decision to file them, to meet the target completion of these new projects. There are two planning inputs. The first is the planning forecast and the other one is the generation capacity addition. Between the two, the forecast is pretty straight forward while capacity addition is difficult to follow. NGCPs problem is on the generation capacity addition. Our agreement with the DOE is that the PDP, which contains both the load forecast and capacity addition, will be the official reference line. So basically, NGCP just follow what is in the PDP. NGCP follows the generation line up listed in the PDP. DOE may have come up with different figures on the installation target for certain years, the reason for any discrepancy in the figures.

Generation Capacity Addition

TransCo

GMC

According to NGCP. 4,188 MW is the total conventional and renewable energy for Luzon for the next 20 years based on DOEs list, but during the hearing at the ERC with the presentation of NREB, what was initially proposed was about 760 MW. How will you explain this discrepancy? The 4,188 MW is the total of conventional and renewable energy. The renewable energy for Luzon is 432.3MW. In terms of installation target for RE, NGCP will follow DOE which among the power plants will be included in the installation target. According to DOE, whichever comes first will get the slot for the allocation target. Do all these generation capacity addition No, not all of these projects have GIS. Some of

2011 Transmission Development Plan Public Consultation Report projects already have completed the grid them have not yet contacted NGCP for the impact studies? conduct of their respective GIS. As long as a project is included in DOEs list, NGCP will also include those projects in the assumptions. Are these projects committed? Considering From a transmission planning perspective, it is indicative generation projects may impact to better that these indicative generation projects higher wheeling charges. be included in the assumptions. However, the ERC would have to evaluate the level of commitment of these projects before it approves any associated transmission expansion investment. It is important to note that since the TDP is updated on an annual basis, should there be changes in the status of the generation projects, NGCP can easily reflect them in the transmission plan. At what point do you change the generation NGCP relies on DOE being the agency capacity addition projects from indicative to responsible for generation planning. committed? Is there already a budgetary allocation based NGCP is committed to implement and complete on the time frame you have mentioned for your all ERC-approved projects, in which the demand and transmission capacity projects? corresponding capital expenditure (CAPEX) program (where the annual budget for each project is indicated) is already part of the ERCs Final Determination (FD). For the new projects not included in the FD, they will be filed with the ERC for provisional approval. What is NGCPs data center standard? It is consistent with IEC standard. (NGCP will provide a copy of this policy at the NGCPTransCo Data Center). Will SO still procure any protective relay or will There is a delineation of responsibilities not anymore? between O&M and SO groups of NGCP regarding this. What is the standard of SO for substations? NGCP follows that of the IEC, but plans to adopt

GMC

GMC

Global Business Power Corporation

System Operations

TransCo

TransCo

MERALCO

2011 Transmission Development Plan Public Consultation Report

MERALCO

Any concrete plan on how to implement Smart Grid technology? NGCP intends to use OPGW fibers for both M1 and M2 line protections. How can redundancy be addressed under this scheme?

TransCo

Aboitiz Power Hedcor

What are SOs requirements for the RE systems that may be coming in? What are the equipment needed on our side?

Currently, we only have one market for Luzon and Visayas.

Telecoms and SCADA

TransCo

To support the proposed replacements due to limited bandwidth, a summary of channel loading or utilization must be included in NGCPs TDP.

other standards once the Smart Grid is implemented. In all new projects, NGCP is already implementing Smart Grid technology based on IEC standard. Only stations within fiber loopse.g., with OPGW routes in different directionsshall use fiber for both M1 and M2. Otherwise, microwave radio shall be used to provide the redundant path for the required differential protection. NGCP is working closely with DOE on how to establish these requirements for RE sources or embedded generation. NGCP is revising the specifications that will enable them to integrate these RE sources to the system. For REs, NGCP would want them to be connected through fiber links. The objective is to make the system operation as a single entity. That is complementary to the market objective which is to make one open market. The hierarchical design is for efficient dispatching. NGCP can provide the SCADA/EMS reports, bandwidth demand per typical node and bandwidth allocation in backbone.

Do we have some system to monitor whether For SCADA applications, NGCP can produce the all these equipment have been fully utilized? report they submit on a day to day basis, e.g.,

2011 Transmission Development Plan Public Consultation Report Do we have that assessment? the EMS applications. For the bandwidth utilization of telecom, NGCP can provide based on the breakdown of the traffic. NGCP can describe which part of the bandwidth is used by which application and which network element manages this particular traffic. NGCP can provide the following: SCADA/EMS reports Bandwidth demand per typical node Bandwidth allocation in backbone Higher version of the RTU data storage, advance estimator and contingency analysis in order to consider the market operation. All IT equipment specs and acquisitions (outside SCADA equipment), including those needed by S.O., are supervised by our IT Department. Yes, DOTC already approached NGCP. Also, PAGASA is utilizing NGCPs backbone. However, there is no existing commercial agreement with DOST nor with DOTC yet with regard to the PAGASA use of NGCP channels inasmuch as the channels are used for public service. NGCP does not derive any extra income on PAGASAs use of the these facilities As stated in the TDP, the energy-efficient (and cheaper) split-type radio technology shall be adopted where feasible (e.g., for up-to-STM1 radio links) to optimize radio transmitter power, eliminate waveguide-caused problems

TransCo

What are those EMS applications in the new SCADA that you are proposing? Can the IT equipment/facilities needed by SO be provided by corporate IS/IT?

TransCo

TransCo

Is DOST or DOTC coordinating with NGCP regarding the required NDN knowing that they are trying to revive the telecommunication stockroom of the Government? What is the commercial agreement for such? Is there a rebate to the transmission charge (PDS) in as much as there is an extra income for that? Why is split type highly recommended in TDP? This type is more difficult to maintain as the transceiver is installed on top of antenna tower.

TransCo

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2011 Transmission Development Plan Public Consultation Report

TransCo

Can we use lease channels as back up in some areas to reduce CAPEX? A study shall be conducted in the aspects and be included in TDP.

TransCo

TransCo

Right-of-Way

DOE

Is it possible to have a 100% physical redundancy (1+1) via OPGW? Existing transmission lines, in some areas, may not allow such configuration. Is this not very expensive? Are the installations of IP ready S/S NGCP already has IP connectivity and their automations synchronized with the applications are migrating towards the use of installations of IP connectivity? this method of transport. The new S/S automation systems are thus specified to operate using IP-mode standards upon commissioning. The DOE recognized the difficulty of acquiring right-of-way for transmission projects and, at times, local government units intervene in locating the transmission routes. In response, DOE is working with different government agencies in identifying Projects of National

and minimize dependence on air-conditioning requirements (and reduce failure rates caused by overheating). Leased channels are indeed being used as (lesssecure) backups where feasible. They are also used to provide short-term communication facilities. Incorporating in the TDP the economic selection study for each permanent telecom link would be rather cumbersome (and may not be necessary given the knowledge of existing public infra and prevailing lease rates)perhaps we can address this issue in a more specific manner? Not all stations can be provided with 1+1 physical redundancy via existing OPGW. Microwave radio provides an alternate route in some cases to attain the 1+1 mode.

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2011 Transmission Development Plan Public Consultation Report Significance (PNS) to ensure their timely completion. NGCPs transmission projects may well qualified as PNS. Nowadays, it is difficult to secure right-of-way. It is critical that NGCP should identify which generation projects are committed for planning purposes. How are the indicative plants taken up in your TDP?

GMC

7 8

Command Center Legal Issue

MERALCO TransCo

NGCP still considers the indicative power plants because there are cases wherein they require transmission reinforcements. However, once a project was identified, we consider it as a generation-associated project and identify which power plant triggers the need for that project. Will the command center of NGCP be manned? Yes it will be manned 24/7. We will be in close coordination with NDCC (NDRRMC). On Hanjin reimbursement issue, would NGCP In its latest letter, Transco would like to be paying for it since it will be reclassified as transfer to NGCP the facilities so that the latter transmission? can operate and maintain them. It was clarified by TransCo that based on EO 701, TransCo has to pay but since it will be reclassified as Transmission, NGCP has to pay for that line. Suggests NGCP to advise the electric utilities that what should be covered by our Distribution Service Agreement are distribution wheeling services agreement. The transmission services agreement are still being signed by NGCP and utilities should only sign the distribution wheeling services agreement. Is the Lumban-Bay Upgrading scheduled in 2013 similar to the MakBan-Calauan-Kalayaan line project which is expected to solve the congestion problem in that area? How come these projects are not included in your list when they are in the pipeline of GIS?

San Miguel Power Corporation

NGCP will follow ERCs rules on the commercial relationship between the customers and its service providers.

Congestion

Aboitiz Power

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Tudaya I (6 MW) and Tudaya II (7

GMC

NGCP confirms that the Lumban-Bay Upgrading Project is the same with the Kalayaan-MakBan line which is now being upgraded to four bundle 795 MCM. NGCP based its study assumptions on the generation line up contained in DOEs PDP. If

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2011 Transmission Development Plan Public Consultation Report

MW)

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N-1 and N-2

TransCo

the proposed generation project is not included in the PDP, it is likely that it is not also included in NGCPs list. Had there been a decision on the issue NGCP is looking at N-1 from two different regarding the N-1 and N-2 consideration during perspectives - from a planning perspective and the planning and operation perspective? Has from an operation perspective. From a planning there been a resolution? perspective the system is intact; all the elements are complete when you apply the N1. From an operation perspective, the system is already altered when N-1 is applied. NGCP maintains its position that the application of N-1 should be taken in planning and operations perspective.

TransCo

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Renewable Energy

AES Masinloc

MERALCO

How will you consider NGCPs planning methodology, deterministic or probabilistic? Woudnt probabilistic approach be more appropriate? We have noticed that RE is already considered in the 2011 TDP. Have you considered REs that will be connected through the distribution system or just those that will be connected in the transmission? In the event that the RE is not suitable to connect to distribution system, how will it be considered in the succeeding TDPs? Any updates on RE penetration limit of NGCP?

NGCPs planning methodology, at the moment, is based on deterministic approach. NGCP is still waiting for ERCs recommended approach. NGCP will propose a guideline that will govern REs connection to the grid.

NGCP has not finalized yet the penetration limit study.

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2011 Transmission Development Plan Public Consultation Report Aboitiz How will these RE projects going to be One of NGCPs mandates under RA 9513 is to integrated? Is that part of the challenges that provide priority connection to RE sources. NGCP is seeing in the next years? Given the intermittent nature of some RE, there should be a different set of technical requirements to govern them which are not yet included in the Grid Code. NGCP is currently developing these requirements which will be the basis in integrating RE to the grid. To date, we only have one wind power project We already have informed the DOE with the and that is located in North Luzon. need to conduct a study called Renewable Operationally, can NGCP provide us an insight Energy Integration Study (REIS) that will as to the integration of that plant to the complement the standard Grid Impact Studies transmission system? (GIS). The main purpose of the REIS is to take into consideration the intermittent nature of the RE sources (wind and solar PV). NGCP is still developing the methodology of the REIS. Did NGCP recommend to DOE the 50 MW First, it is the DOE and not NGCP that sets the maximum limit of solar PV to be installed to installation targets for RE. Based on NGCPs avoid introducing problems of intermittency recent study which was submitted to the DOE, and interruption in the grid? Mindanao does not have adequate regulating reserves to support intermittent RE. That could be one of the reasons of DOE for reducing the installation target. The objectives of system operations should be NGCPs mandates under RA 9513 is clear to attached with the corporate objectives to provide priority connection to RE and to accelerate access to RE sources. It is observed establish the penetration limit for intermittent that NGCP is somehow trying to obstruct or RE. Any recommendation on the integration delay the entry RE sources and to limit the capacity will be based on the results of the amount of embedded generation in our study. system. What is the intent of NGCP in regards to these RE sources? For embedded generation, NGCP is not obstructing their entry. According to OATS Rules, it should be GMC that will be setting the

Aboitiz

CEPALCO

CEPALCO

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2011 Transmission Development Plan Public Consultation Report

limit of the embedded generation. Conal Holdings Corporation Is the system ready for RE? This will depend on the location, capacity and timing of RE projects. We have completed the initial study that will determine the capacity of the grid to integrate RE. To make the system more robust, NGCP has ongoing projects associated with RE in northern Luzon (San Esteban-Laoag Transmission Upgrading Project) which includes the expansion of the Laoag substation for the incoming wind power plant. What is the status of NGCPs proposal to limit NGCP is still in consultation with other Embedded Generation? stakeholders. How do NGCP consider SPS? What is your SPS was revised to address simultaneous reliability level for SPS? trippings. N-1-1 cases do not require SPS. However, N-2 cases require SPS. In the multiple tripping of Tayabas substation, The UPS has already been replaced. the MBSC display was not updating due to UPS being affected by said trippings. What is the plan of NGCP to resolve this problem? Some equipment which is due for replacement The economic service life is not the only driver does not meet the economic service life set by in replacing the equipment but the actual ERC. Is NGCP inclined to provide good products condition whether it is still good or is already and good maintenance services to extend said deteriorating. However, our experience shows equipment economic life span? that as the equipment age, more and more problems are already manifesting. Therefore for planning purposes we need to already plan for replacement of equipment that shows a pattern of failures.

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Embedded Generation O&M

MERALCO

14

TransCo

TransCo

TransCo

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2011 Transmission Development Plan Public Consultation Report There is really a need for O&M to have a good maintenance strategy to extend the life of this equipment since ERC has put a cap on O&Ms expenditures. Why do we need to monitor water elevations In order to monitor reserves especially for for hydro plants when it is the obligation of the Mindanao in ensuring the stability of the grid. generators to inform the customers of the availability of supply? For O&M expenditures, may we be clarified on Starts from the control system, line protection 2 issues: On the secondary devices - start from even up to the battery system because these where to where? are fault clearance system. Every device in the system is somehow connected to the function What about in the substation? of the whole system. For example, if the battery is not working, the system cannot supply the control and the protection system. You have said that a lot of the equipment NGCP needs to establish a trend. If there is a reached the useful economic life, what if those significant change in the trend, it will be equipment still passes the test of Material analyzed and decided if there is a need for Testing Division (MTD), what is your plan? Do replacement. There must be other you intend to replace everything? consideration. Take for example, if the power factor tests of the insulation of equipment show signs of deterioration we need to plan the replacement as part of the pro-active measure. Have you come up with the policy regarding NGCP has a policy on spares. But even for spare parts? spares, we cannot acquire the desired level of spares. NGCPs strategy is to acquire the spares from major engineering projects that involve replacement of equipment. Some of the replaced equipment which are in good condition will be refurbished and will serve as spares. The approved budget is a constraint to establish the desired level of spares.

TransCo

TransCo

TransCo

TransCo

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2011 Transmission Development Plan Public Consultation Report

TransCo

TransCo

Is equipment restoration time considered in the determination of appropriate connectivity for teleprotection system? There are links with higher speed/capacity but need longer time to restore. To support replacements of operational but obsolete equipment, a summary of channel loading or utilization must be included in NGCPs TDP.

Yes, NGCP is taking into consideration the equipment restoration time in determining the appropriate connectivity for teleprotection system. Operational equipment that need to be replaced because of obsolescence refer to (a) those with no available spare-parts support, and therefore risk run-to-failure outage, or (b) those that no longer work with existing standards. This consideration has little to do with channel loading or utilization.

TransCo

The respective descriptions of the aging of specific network elements are described in System Profile (Section 2) of each discipline. For example, in the case of Telecoms, Table 2.1.1 lists the significant network components (e.g., M/W Radio, OPGW, OLTE, PLC/PSE) and provides respective overviewsper network element and per regionin relation to the ERCdefined economic lives. (Detailed accounts for each unique equipment installed at a particular station are as recorded in the Fixed Assets Register.) Why do we have to phase out PLC? PLC is the Differential protection is preferred over most reliable link in power system distance protectionPLC cannot carry teleprotection. differential signals because of its limited bandwidth. And even for distance protection, we do not agree that PLC is the most reliable link in all cases because of the less predictable

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2011 Transmission Development Plan Public Consultation Report TransCo Why do you have to implement projects inhouse? This has no warranty, supplied equipment can be used in other areas and it affects maintenance works. effect of noise on its analog signals. As stated in the TDP, in-house implementation optimizes in-house engineering resources, minimizes implementation time and synchronizes construction with operational priorities. This results in lower overall cost, efficient design (e.g., no need to replace serviceable components), and less interruption to operations (i.e., no special shutdowns). Of course, all new equipment has warranty. NGCP confirms that all equipment with PCB has been identified (first phase) and there is an ongoing program to replace/manage them in compliance with environmental regulations.

DOE

DOE Secretary inquires about the inventory of Polychlorinated Biphenyl (PCB)

SN Aboitiz Power Benguet

MERALCO MERALCO

SOVECO

What are the measures that NGCP is NGCP embarks on mitigating measures such as undertaking in relation to the hazards in building massive concrete structures or landslide prone areas? relocating structures to more stable sites. NGCP also undertakes pilot testing of vetiver grass that prevents soil erosion. What is the plan of NGCP on transformer which NGCP has a replacement plan for these old exceeded its economic life? transformers. Does NGCP have an upgrading/replacement NGCP regularly submits to DOE its Grid program so MERALCO can align to the Operating Maintenance Program (GOMP) program? which covers a 3-year planning period. Do you have a record on the percentage of the The suggestion is duly noted. The statistics is economic life of equipment to determine how more applicable to major equipment of the much it contributes to failure and if it is due for transmission system such as transformers, replacement? circuit breakers and the like. For the statistics of the percentages, NGCP has the details of these incidents before it arrived at the conclusion to replace these components.

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GMC

15

Metering

San Miguel Corporation TransCo

Have you considered the costs that sabotaged It is difficult to anticipate when and where a lines will incur in the O&M CAPEX budget? sabotage will take place. At any rate, budget will be allocated to repair any damaged facility. Who checks your meters accuracy and Meters and instrument transformers are calibration? Suggested annual audit of the checked by NGCP and by ERC. meters by third party. Do we still have manual downloading? Yes, if there is a problem in communication.

TransCo

MERALCO

MERALCO

MERALCO

MERALCO

In the event that there is no problem in Yes, the only limitation is the availability of communication, is everything automated? networks to support data communication requirements. For AMR metering, what technology is NGCP A newer version of MV90 which is capable of looking at? MV90? using IP-based telephony and GPRS to connect to the meters is being acquired to replace the existing system. In regards to PT/CT testing or metering, who Based on the Grid Code, the asset owner should shoulder the testing of metering should shoulder the cost of testing. equipment? MERALCO requested NGCP to consider the NGCP notes this request and will closely timing of meter testing for alternate meters. coordinate the timing of the work with the concerned Customer or Generator. What is the regulators economic life for meters For NGCP, it is 10 years. of NGCP? It is 15 years for MERALCO. Do the installations of alternate meters mean The installation of alternate meters will add to additional charges to the customers present the Regulatory Asset Base for revenue metering service charges? metering, which will be recovered through the MSP charge. However, the cost of meters is not really that substantial, and is outweighed by the benefits of having these installed as we

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2011 Transmission Development Plan Public Consultation Report In regards to the relocation and consolidation of the metering points, there are customers with many metering points, will this result to a substantial increase in the metering charges even for the existing individual metering points? have experienced in Luzon and Visayas. If the only development will be the consolidation of metering facilities then the total number of metering facilities will really decrease. However, through the years, while there are metering points that are consolidated, there are also new connections. This is true not only with the generators but also with load customers and distributors. Thus, NGCP does not foresee any significant reduction in the metering facilities. The cost of the new statistical meters and those of the revenue meters, which we have installed, does not have much difference. The primary purpose is to satisfy the management directive that we have to meter our own consumption. Eventually, that will be used as basis for our payment of our substation energy consumption. NGCP upgrade their meters to load profile capable meters for aggregation of demand for coincident addition. It allows more flexibility in terms of computing the total demand of the customers. The cost of relocation/totalization is approximately the same as the cost of new metering facility since New metering assets will have to be installed at the new connection point. The metering assets installed at existing Metering Point/s will be retired and will be included in the spares inventory. We will not be transferring the metering assets

Inquired for clarification on the installation of revenue meters to substation metering facilities. Does this mean replacement of all the statistical meters to revenue class meters? What is the primary purpose of replacing the statistical meters? Revenue meters are more expensive. Is it part of the direction for this upgrade of the metering system in the grid to be able to aggregate the demands of your customers?

SOCOTECO I

What does NGCP consider in their CAPEX budget, the cost of the relocation or the cost of new facility?

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2011 Transmission Development Plan Public Consultation Report

Mactan Electric Company

With regard to the rates passed on to the consumers, we are asking NGCP to observe prudency in doing its capital expenditure programming. Are the meters, you are installing to measure your own consumption, the same with your load customers?

Mactan Electric Company

During testing of our equipment like our metering services, we should not be paying for the rental of NGCP equipments because we are charged for its acquisition on your CAPEX.

TransCo

Does NGCP report the income technical services? NPC has this customer within our that has an expired TSC that applying to us. How will this metering arrangement? Can we metering of TSC?

from these service area is currently affect our assume the

installed at the existing Metering Points to the new connection point, instead we will be installing new metering assets. NGCP is required to pay for its own substation usage that is why it installs its own meters. These meters satisfy the basic requirement for accuracy, functionality and basic costing and are much less than the main meters. On prudency, NGCP is a regulated entity and only implements ERC approved projects that have gone through prudency test. The age and the condition of the assets are considered in the capital expenditure planning. These technical services are not considered in the normal operation of NGCP, they are add-on service provision. When NGCP projects its operation and maintenance cost it only considers the regular manpower cost for the transmission services. However, these charges are currently under review. NGCP understands and recognizes your concern. Yes.

San Roque Power

At this stage, NGCP does not have plans of selling the metering assets as yet. NGCP suggests that the DU install their own meter for the customer that they will assume or continue paying NGCP for the metering services provided. Does NGCP still do the metering for IPPs which NGCP will take care only of its WESM meters.

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2011 Transmission Development Plan Public Consultation Report Corp. have ECA and PPA meters with NPC? There is currently an ongoing discussion between NGCP and NPC for the former to divest itself of that task. NGCP, however, can offer that service if there will be a commercial agreement binding them and NPC, the IPP and IPPA. NGCP took into consideration the following factors/challenges during the planning period: a) change of the timeline of the incoming generators; b) change on new technology; and, c) changes in system conditions, thus, it is difficult to foresee which projects should be filed at once. The criteria are the same. However, the projects that were filed in the 3rd Regulatory Period had to be prioritized taking into consideration, among other factors, the impact on transmission tariff. Thus, not all projects that were identified following the criteria were included in the ERC filing. No, NGCP is committed to implement all the ERC-approved projects and file new projects that need to be implemented within the 3rd Regulatory Period. Yes. Actually the infrastructures are part of the 3rd Regulatory, but the issue is NGCP has to prioritize based on the budget. It should be noted that relative to the 3rd Regulatory budget cap, issues such as the need to address RE connections and Smart Grid standards, although part of the TDP, may not be fully addressed.

16

3rd Regulatory Period

TransCo

Why is it that there were modified new projects that are not included during the 3rd regulatory application? What are the factors that have resulted in such?

TransCo

We believe that this planning criterion were also NGCPs consideration during the third regulatory application, how come they were not considered in the application.

TransCo

Does it mean there will be reprioritization of projects in the third regulatory?

TransCo

Are the infrastructure projects that you are mentioning already part of the approved CAPEX for the 3rd Regulatory Period?

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2011 Transmission Development Plan Public Consultation Report

TransCo

17

Reliability

MERALCO

Do RE-associated projects already part of the For the Third Regulatory period, there is no 3rd Reg projects? transmission line reinforcement project that can be directly associated with RE. There were complaints to GMC regarding Those reverted to NGCPs RAB are being reliability of 69 kv lines, what are the actions of maintained and rehabilitated by NGCP. NGCP on these? The Secretary noted that the forecast drought in Mindanao will further highlight the need for LMIP. Based on the report of Manila Observatory on the model used to predict the rainfall pattern, Mindanao will continue to experience drought in the coming years. To worsen the problem, siltation is also being encountered in Pulangi Hydro Plant. For this reason, DOE has been encouraging investors to put up non-hydro power plants in Mindanao. DOE is looking forward to this project as it will NGCP clarified that the BMIP does not include support the plan of NPC to fully interconnect the reinforcement/expansion of the existing the 69 kV Mindoro Grid. Mindoro transmission backbone. Palawan, being a potential growth area, can also be considered in future interconnection projects.

18

Leyte-Mindanao Interconnection Project

DOE

19

BatangasMindoro Interconnection Project (BMIP)

DOE

20

Planning considerations

DOE

DOE

The Secretary agreed that generators should be located, as much as possible, near the load center (within the island grid) to avoid the uprating/expansion of existing submarine interconnection between the islands. The Secretary inquired on heavily-loaded Among the substations that continue to exhibit corridors and substations in Metro Manila and significant growth are Dasmarinas and Las

23

2011 Transmission Development Plan Public Consultation Report if the necessary expansions are included in the Pias, both of which have been allocated with plan. additional transformers. DOE Adequate transmission facilities must be ensured for new growth areas such as Clark Economic Zone, where the newly-developed international airport will be expanded, the former U.S Naval Station in Sangley Point (Cavite), and Panay. Suggested NGCP to review the 2011 TDP. NGCP should retain investments in the major loop or to what are necessary for the improvement of the grid. NGCP needs to come up with a cut-off date for the receiving of data from DOE. Preferred timeline is end of first quarter. What level of forecast do NGCP obtains from DOE? Define ideal location for power plants. NGCP will consider in the next TDP the demand forecast in these areas. The Secretary assured NGCP that DOE will provide updates and information on potential economic growth areas. NGCP, guided by the Grid Code, wants to invest where the need arises. There is already a resolution where assets are discussed and the boundaries are defined. DOE releases a grid level forecast. This is validated by NGCP from submission of application of new generators. NGCPs forecast is on the substation level. When we say ideal, it implies that these locations require minimal transmission reinforcements only. Further, these refer to the ideal connection points to proponents, where they can readily connect without waiting for any grid expansion or reinforcement. The main reason why some capacities that are coming in may not be included in NGCPs assumptions is because they are not included in the PDP of the DOE.

San Miguel Corporation

TransCo

GMC

Conal Holdings Corporation

Aboitiz Power Hedcor

There may be some capacities coming in that could overkill the Mindanao capacities. In your presentation of the Vol. I (Major Network Development) for Mindanao, I didnt see the 100 MW San Ramon coal power project which will come in by 2016. We want to ask for NGCPs inputs on how our For the Sibulan, since it is only an expansion, on line projects, the expansion of the Sibulan we can look at the existing connection points. project and the Sitasimon project, can connect For the Sitasimon, on the other hand, kindly

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2011 Transmission Development Plan Public Consultation Report

Davao Light and Power Company

21

Request for Information

DOE

TransCo

to your lines. These are already in our approach one of NGCPs account officers. engineering board. NGCP has not received any formal application from Hedcor in regards to the proposed project. NGCP needs to evaluate the proposed connection schemes to identify the nearest connection points for the proposed power plant before conducting the grid impact studies. Projects are stemmed from forecasts. What do NGCP consider the actual or the reliable From a planning perspective, it would be better capacity of the generating plants? for NGCP to consider the maximum capacity of the power plants rather than the derated capacity. The Secretary instructed NGCP to identify its NGCP will identify the said transmission transmission facilities that are located along facilities and will provide the list to DOE. major waterways and report them immediately to the DOE. The government is clearing all major waterways of obstructions as part of its flood control measures. Requested NGCP to provide TransCo with the NGCP will provide the list requested. list of transmission lines which are beyond 50 years and the NGCPs assessment and plans on It is notable that NGCP has an ongoing program the said old transmission lines and the list of to replace parts of the lines which had been the other equipments age in comparison to the cause of many forced outages. For example, approved ERC life span on a per substation per statistics, the major cause of tripping of basis? many of these lines is due to insulator failures. NGCP has programmed the replacement of substantial number of insulators, with the lines that have more number of trippings and most critical ones given priority. This is premised on

25

2011 Transmission Development Plan Public Consultation Report the condition that shutdown of the lines can be allowed by the System Operator on an extended period. During the implementation of the replacement program, other line hardwares which are found to be defective will also be replaced. Furthermore, wood poles are gradually being replaced with steel poles or with more reliable structures such as steel towers, wherever more suitable or appropriate. Requested NGCP to provide them the present NGCP can provide the said list. list of transmission lines for the 3200+ MW of indicative projects. Requested NGCP to provide the list of new and NGCP can provide the said list. old names of substations. Requested NGCP to provide the inter-island NGCP to provide the info needed. power flow in different scenarios from 2014 onwards for the Negros-Panay-Cebu project. Do you have a periodic asset condition report NGCP has this information on various internal that includes what are the conditions of the memoranda. NGCP will have to establish this asset from commissioning, the supplier, the data so that they can be requested to produce basic specifications, significant events that the report. Every commissioning, occurred with these assets to support your troubleshooting, repair and replacement CAPEX programs? Are they available as should be recorded as to reflect the history of reference to NGCPs observance of CAPEX? the equipment. Aside from economic life, NGCP also considers the condition of the equipment, the obsolescence and the availability of spares in replacing the said equipments. Presently the condition of every asset is being monitored and the historical records are kept by the Maintenance and Test Division (MTD) and district offices that are in-charge of these

TransCo

TransCo TransCo

TransCo

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2011 Transmission Development Plan Public Consultation Report

assets. Recently NGCP has launched the Enterprise Resource Planning (ERP) and one of the system that could collate and summarize asset condition is the Enterprise Asset Management System. NGCP is more concerned of aging facilities because most of the outages stemmed from old transmission facilities. NGCP will provide the data requested.

Aboitiz Power Hedcor

MERALCO

Cebu Energy

CEPALCO

22

Asset Management

San Miguel Corporation

There are two drivers for your CAPEX budget for O&M: the frequency of outages and aging of equipment. Requested for historical data of outages of equipment and NGCPs driver for aging equipment. Any update on the ICCP data requested by NGCP already replied to the request of MERALCO? MERALCO, although, there were some data that were not provided due to their confidentiality. May we ask for a timeline for the Calung- The Calung-Calung-Toledo-Colon project has Calung-Naga reinforcement and the Naga-Quiot been awarded to the winning bidder in August project? 2012 with an estimated completion date of July 2013. The Colon-Cebu project started last December and expected to be finished in the 1st quarter of 2013. Suggested early weekly advisory from NGCP to There is already a proposal to harness the local customers so they can also disseminate info media. The said proposal, which is still subject before interruption or outages occur. to the approval, suggests a 2-3 minute airing of the affected areas during outages or interruptions. Assets are found to be poor in quality because NGCP has already started a standardization of selection of poor brands and absence of a program for purchasing of equipment. There is program that defines the assets standards. a process that defines the list of accredited

27

2011 Transmission Development Plan Public Consultation Report 23 Duties and Responsibilities Identification TransCo suppliers. How do we divide SO responsibility when it SO is the one preparing the philosophy and also comes to protection and when it comes to the technical requirement and it is the O&M O&M? that will implement the replacement. The entire hardwires relay, corresponding CT It will now be the responsibility of O&M. PT and others will be thru whom? The calculation and the setting will be done by It will now be the responsibility of SO. whom? Are you going towards the direction wherein From now on, the responsibility of the the SO will calculate and prepare the setting equipment will be transferred to O&M. The and O&M to buy all the relays and set the owner of the substation will be O&M. relay? Was there an ERC policy on submarine cable? To date, ERC has not issued a policy yet. In the December 5 meeting with Sec. Almendras, the Secretary agreed that generators should be located, as much as possible, near the load center (within the island grid) to avoid the uprating of existing submarine interconnection between the islands. We need policy on treatment of submarine Either ERC or DOE will issue such policy. cable. What is the reason for renaming some of the We are basing it on the standard equipment substations? Do we really need to do that? identification as provided in the Grid Code.

TransCo TransCo TransCo

24

Submarine Cable

TransCo

TransCo 25 Substation Naming Convention Market Operation TransCo

26

TransCo

27

Ancillary Services

TransCo

For interfacing in the market, shouldnt it be the market operator to spend for the interface? Any expense related to market operation should be shouldered by the market operator because they are collecting market fees from the participants. In as much as ancillary services are part of pass

Yes, but the system is designed more on data collection/data forwarding concern. It is more on the data interface, not on the hardware itself.

Ancillary Services compliance is monitored

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2011 Transmission Development Plan Public Consultation Report

thru billing to consumers, is NGCP monitoring compliance of providers to such. Why is it not included in your submission? What is submitted is just the nomination.

28

Sub transmission Assets

DECORP

29

Tariff

CEPALCO

When the RSTAs were reverted back to transmission lines that means they will fall part of the mark. Does this mean even those utilities who bought their 69 kV sub transmission lines will be paying the revenue requirements for these RSTAs? Does NGCP plan on instituting a point-to-point determination of tariff than the postage stamp system for the transmission grid? Its going to be unfair if NGCP will grant preferential tariff to CASURECO.

through Dispatch Instruction response and through RTU. Monitoring device (RTU) is a prerequisite of AS scheduling to ensure compliance. Upon non-compliance of AS provider at a certain interval, scheduled capacity is not paid. This can be verified every billing period. Based on the recent resolutions of ERC, RSTAs are now part of the transmission system. NGCP, being the agency in-charge of the maintenance and operation of the grid, will have to treat these RSTAs as transmission assets. NGCP only provides network service, so it is still a postage stamp methodology. We have received CASURECOs request for the cost of a specific transmission service for a point connected to the plant of Agus. NGCP is not encouraging any design of special rates.

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2011 Transmission Development Plan Public Consultation Report

Table 3

Luzon Grid Issues Issues Concerned Party

DOE

Comments
The Secretary inquired on heavily-loaded corridors and substations in Metro Manila and if the necessary expansions are included in the plan. Adequate transmission facilities must be ensured for new growth areas such as Clark Economic Zone, where the newly-developed international airport will be expanded, the former U.S Naval Station in Sangley Point (Cavite), and Panay. It is challenging to develop new 69kV substation in South Mexico because theres a difficulty in locating a feasible space for the proposed plant. Can NGCP perhaps consider another substation between Concepcion and Mexico to take care of growth in Clark for us to be able to tap in 230kV line in the next 10 years? So San Gabriel 500MW is a confirmed project. When is the target initial synchronization? Do you have a timeline for their activities? Is there still a need to uprate in as much as the existing 795 conductor could still accommodate the 105 projected generation of Ambuklao? Is the line that very old?

NGCP Response
Among the substations that continue to exhibit significant growth are Dasmarinas and Las Pias, both of which have been allocated with additional transformers. NGCP will consider in the next TDP the demand forecast in these areas. The Secretary assured NGCP that DOE will provide updates and information on potential economic growth areas.

New Growth Areas

DOE

It is a good thing that the TDP is updated annually. NGCP recognizes the needs in Mexico and already had internal discussions to address these needs. NGCP will make sure that in the 2012 TDP, the needs of Clark will be considered in the expansion plans.

San Gabriel 500 MV Project

TransCo

NGCP refers to the year when the power plant is expected to be online as its reference in pursuing any associated transmission project. Yes. One of the circuits is constructed in 1950s and the main consideration is Magat Hydro expansion.

Ambuklao Substation

TransCo

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2011 Transmission Development Plan Public Consultation Report

TransCo

What is the relationship of Magat expansion Project was developed for the Ambuklao repowering project to this one? and Magat expansion. On the NGCPs plan to put up a fifth (5th) bank transformer in San Jose SS, may we be clarified why there is a need for N-2 in this SS? Is this really necessary? Wont the 5th bank purpose would just be for aesthetic in as much as the four banks in existence can accommodate the N-1 requirement? If you intend to transfer that later to the new Antipolo cut in why the need to procure it in advance? We will just spending additional for the hauling, dismantling, hauling and assembling plus all the tests in the new Antipolo cut in? Would it not be more practical to have the supposed 5th bank at San Jose be part of the new Antipolo cut in at the 4th regulatory as NGCP had envisioned? Recommended to convert from ring bus to breaker and a half scheme. This has been substantially discussed before in the meeting/s with DOE and TRANSCO. A report on this is being finalized to reflect NGCPs final position on the issue and which will form part of NGCPs submissions to the ERC when it files the project for Provisional Approval.

San Jose S/Ss

TransCo

MERALCO

NGCP is considering the recommendation, however, a shutdown is difficult to schedule. Upon the development of Antipolo Substation the reconfiguration can be implemented. This is discussed in Section 5.2.1.6 of the 2011 TDP Consultation Draft. As suggested, NGCP will consider the C-6 route in developing the 500 KV transmission backbone to strengthen the network serving Metro Manila and the

Antipolo S/S

TransCo

C-6 Circumferential Road Development

DOE

On the proposed Antipolo SS, can you enlighten us on the reasons/logic of the proposal and what are benefits of this? Kindly consider the C-6 route for the development of the 500 kV transmission backbone.

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2011 Transmission Development Plan Public Consultation Report suburbs. NGCP will coordinate with DPWH/MMDA and will also study a proposed third option for the backbone, i.e., along the Laguna De Bay. 7 GNPower Associated Lines DOE DOE asked for any updates regarding the NGCP is encountering delays in the implementation of project. associated transmission lines for Mariveles Coal-fired Power Plant (GNPower). As a measure, the contingency line will be in place before the end of 2011. There is a SC decision to decommission No capex was proposed for the Third Regulatory Araneta-Sucat 230kV line. How did you Period for the re-routing of the Sucat-Araneta line address this in your TDP? because it is unfair for the consumers to be paying in advance the cost of the project when there is no final decision yet on the issue. Theres a limitation in the Makban- Kalayaan NGCP will look into this. line every time it runs out of supply during summer season. There are 3 directly-connected customers The capacity of the ERC-approved San Jose-Angat Line (DCC) in the area, upon acquisition of Project of NGCP is designed to replace the three TransCo facilities by MERALCO only the 3 existing old circuits. Thus, building additional lines is DCC will not become customers of no longer necessary but a switching station only to be MERALCO. Would NGCP allow MERALCO to constructed along the new San Jose-Angat Line and build lines in the area to supply the 3 DCC? this will serve as the connection point of the 3 DCC. Are there new plans in Mt. Province, from La Trinidad to MOPRECO? We are planning to connect on the 69 kV single circuit line in there. There are seven power plants connected in the said line. This is a single circuit line which makes it unreliable and declared as a transmission asset by the ERC. NGCP already included this on its 2012 activities.

Araneta-Sucat 230 kV Line

TransCo

System operations

Aboitiz Power

10

San Jose-Angat Line

MERALCO

11

Transmission loop project in northern Luzon La Trinidad-Calot 69 kV transmission line

Hedcor Aboitiz

12

Hedcor Aboitiz

ERC clarified this line as transmission asset.NGCP needs ERC approval prior to implement the rehabilitation/expansion of the said line.

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2011 Transmission Development Plan Public Consultation Report

13

14

New Ambuklao and Binga transmission lines Calamba S/S

SN Aboitiz Power Benguet MERALCO

What is the timeline in upgrading these NGCP concentrates on area where there is a lot of lines? trippings. We conduct refurbishment of the whole line (comprehensive maintenance). What is the connection scheme being Initially cut-in, eventually bus-in scheme. Although the planned by NGCP? approved budget is only for radial connection. What is the timeline of the project? If radially connected, will NGCP charge MERALCO or divest the line? Clarification why the line in the presentation is only 49 Km. Will the NGCP Mancom already decide on the connection scheme for Hanjin Substation? Earliest is January 2012. As per Resolution 16, its a connection asset. The total length of the line is 57 Km, 49 Km + 8Km line to Hanjin. We hope it can be decided soon.

MERALCO MERALCO 15 RP Energy Project MERALCO MERALCO

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2011 Transmission Development Plan Public Consultation Report

Table 4

Mindanao Grid Issues Issues Concerned Party

FIBECO

Comments
Main concern is the power outage we experience every time power outage or interruption occurs in Maramag or Kibawe lines. In planning, have you considered a substation project along Tagoloan and Maramag? What is your long term plan for the AgusKibawe Line 2? With the new 230kV, does NGCP intend to continue repairing it? What is the status of the project? Were surprised with the growth rate of Mindanao (5,320 MW) against that of Visayas. Is this 5,320 MW an annual average growth? Inquired for any updates on DLPCs Bunawan project application.

NGCP Response
NGCP has not received any information yet with regard to the proposed substation between Tagoloan and Maramag. The proponent is advised to submit a proposal to NGCP for evaluation.

N-1 Issues

Agus-Kibawe Line 2 Project

TransCo

Growth Rate

TransCo GMC

NGCP will continue to repair it. But once we have the backbone which is located in a safe area, it is easy to secure the new backbone system. The Agus-Kibawe Line 2 project is already energized. Yes, that is the annual average growth rate.

Bunawan Project

Rizal S/S

Davao Light and Power Company Conal Holdings Corporation

NGCP to check the status of the said application.

Transmission Loss

Transmission Line

Aboitiz

The basis of this project is to support The project may not also push through. It will be up to Tampakan, what if Tampakan wont push ERC to approve the proposed project. The regulator is through? adopting a wait-and-see approach when it comes to transmission projects that are associated with new power plants. Is NGCP considering recomputing the NGCP on a monthly basis does compute the transmission loss of Mindanao? transmission losses. Nothing bars NGCP from filing with or informing ERC. NGCP provides regular updates on this to GMC. NGCP is still waiting on what will ERC say on the information that were giving to GMC every month. Is the scheme for the associated transmission NGCP has an ongoing GIS for this and NGCP has

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2011 Transmission Development Plan Public Consultation Report

line for the coal power project in Davao requested additional information to proceed with the already finalized? grid impact study.

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2011 Transmission Development Plan Public Consultation Report

Table 5

Visayas Grid Issues Issues Concerned Party

TransCo

Comments
May we know the load of Panay-Negros-Cebu and the incoming of plant in Panay? So that we can fully appreciate the recommended projects.

NGCP Response

Generation Capacity Addition

TransAsia Renewable Guimaras

Bohol Backbone Transmission Project

DOE

Actually, it is already included in the 2011 TDP report. Based on NGCPs assessment, the load in Panay is lower as compared to the total capacity additions in Panay. Eventually, there will be an excess power that will be exported to Negros and then to Cebu. Will there be a third line for the Panay-Negros NGCP has two options to accommodate the proposed submarine connection to accommodate the 420 MW power plant in Panay. First is 230 kV proposed 420 MW power plant in Panay? transmission line backbone which can accommodate the full capacity, and the second option is the second circuit of the 138 kV line. NGCP recognizes that the second 138 kV line cannot accommodate the full capacity but due to the high cost of 230 kV line, NGCP is leaning towards the second 138 kV line. NGCP then will monitor the status of the incoming power plants and propose a third line to accommodate the other incoming power plants should it be needed. Ideally power plants should be constructed near load centers to minimize the reinforcement of the transmission lines. Is 54 MW Wind Farm project in Guimaras During the Third Regulatory reset application with the included in your transmission plans? ERC, there is no complete information yet on the 54 MW wind capacity, the reason why the transmission reinforcement is not included in the 3rd Regulatory application. DOE inquired for any updates on the project. The project is expected to be completed in July 2012. The new 138 KV Substation located near Tagbilaran City, a component of the project, will improve the reliability of power supply in Panglao Island - a major

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2011 Transmission Development Plan Public Consultation Report

Transmission Line

San Miguel Corporation

Raised their concern regarding the proliferation of 138 kV transmission voltages in Visayas because accordingly 138 kV is just for short lines. Suggests pursuing plans of stringing 230 kV lines in Cebu-Negros-Panay for a more stable interconnection.

San Miguel Corporation

Negros-Panay Interconnection Project

TransCo

Suggests to extend 230 kV lines further down Cebu and then transform it directly to 69 kV for the use of utilities and other directly connected consumers rather than transforming to 138 kV and then to 69 kV, to avoid double transformation losses. Whats the justification of the Negros-Panay Project is developed to accommodate increased power interconnection project. The reasoning stated flow to Panay because of the entry of new power in the TDP 2011, which is voltage regulation, is plants. Voltage regulation is the secondary reason. quite misleading. According to your presentation, the uprating of the Negros-Panay interconnection is based on the entry of new power plants. Did you also consider the present congestion affecting the distribution utilities in Panay, because when a power plant shutdowns we are forced to implement Manual Load Dropping? Can you implement the uprating project earlier? Regarding the proposed PhP 36 Billion, 230 kV line from Cebu to Negros to export the excess NGCP reiterates the main reason for the project is the entry of the new power plants as it affects the proposed capacity of the Negros-Panay interconnection and the worst case scenario in terms of determining the need to uprate the Negros-Panay link. NGCP also recognizes that this project is also very critical to the DUs in Panay. NGCP has been receiving request to implement the project as early as last year. NGCP recognizes that sometimes the transmission solution may not be the cheapest one and a generation

tourist destination. NGCP is technically in favor of a 230 kV backbone to increase reliability, security and accommodate the sharing of generation in Cebu-Negros-Panay. But looking at the cost of building 230 kV transmission lines, it is very expensive and NGCP has to balance technical and economic considerations including optimization of the transmission assets for a period of 10 to 15 years. For voltage problems, there is the option of using reactive compensation which may be cheaper than outright implementation of higher transmission voltage. Upgrading to higher voltage level needs extensive study.

Aklan Electric Cooperative

NOCECO

37

2011 Transmission Development Plan Public Consultation Report capacity in Panay. What if a 200MW power plant in Negros is constructed, what will be its significant effect on that line? Would it not be cheaper just to construct a power plant in Negros? We are monitoring the progress of the ongoing projects, like the Cebu-Colon transmission line. Can we have an updated timeline of these projects? Aside from the 50 MVA additional transformers on the Amlan Substation, Do you have any developments on the 69 kV transmission line from Amlan to Dumaguete? We are patronizing the 69 kV line but we are having some problems on the voltage input in our plant, it seems that the 69 kV line is overloaded. Can we ask for a timeline on when the developments are going to be implemented? solution will be better. The key here is to coordinate with DOE which oversees the generation projects. For NGCP, if there will be no other solution it will be forced to implement the project. NGCP provided the status of these on-going projects during the meeting.

Colon-Cebu 138 kV T/L

Reliability

Global Business Power Corporation Orica Nitrates

Cebu-MandaueLapu-lapu T/L

VECO

In the Cebu-Mandaue-LapuLapu transmission line and substation project your estimated time of completion is 2015. Can you reconsider the timeframe because LapuLapu is now at 125 MVA with 7% increase per annum? By 2015, the current transformers will be loaded at 95%.

NGCP proposed an additional transformer in Amlan Substation because the existing 50 MVA transformer may not be sufficient. The 69 kV transmission line has the same capacity so it follows that it may not be sufficient in the near future. But as to the 69 kV transmission line, a subtransmission asset undergoing divestment, NGCP will have to coordinate with the concerned distribution utility (DU) because they have the responsibility and the first say on upgrading the line. NGCP can also upgrade the line but will have to recover the investments through subtransmission charges. Its better to set a meeting with the concerned DU to determine what the recommended action plan is, on whether or not NGCP will implement the project. As much as NGCP wants to accelerate the project, it is aware of the difficulty in implementation because the area is heavily populated and the proposed project is an underground cable which can cause obstruction during construction. NGCP will be coordinating with the concerned agencies like the DPWH and investigate the capacity of the bridge if it can carry the additional cables or if it needs to consider another option. NGCP is also implementing other projects in order to address the additional load in Mandaue and Mactan.

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2011 Transmission Development Plan Public Consultation Report

O&M

Southern Leyte Electric Cooperative

Your immediate answer on how to resolve the issue on implementing maintenance works on the Ormoc-Maasin 138kV line and MaasinBontoc 69 kV line without getting the whole of our coverage area (Maasin-BontocHimayangan 69 kV substations) interrupted. Can you give us a timeline for the upgrading of the Babatngon substation because it is our alternative line aside from our main supply in Maasin substation?

138 kV Looping of Panay

When do you expect to finish the loop transmission line of Panay?

10

2nd Cebu-Negros 138 kV Line

May we ask for a clarification regarding the submarine cable that is supposed to connect additional capacity to Panay? Why is it that 230 kV is presented to ERC when the existing submarine cable is only 138 kV? Is it possible to construct it at 138 kV rather than 230 kV?

NGCP has two proposed projects that will address your concerns: First, on the maintenance works on OrmocMaasin, is the second circuit stringing of the 138 kV line from Ormoc to Maasin substations and the second is the additional transformer in Babatngon which is your alternative supply. However, the single circuit 69 kV line in Babatngon is already divested to Leyeco II which has the same capacity as the existing 1-50 MVA Babatngon substation. So if you shift your load to Babatngon the constraint on your load will be on the 69 kV transmission line even though NGCP has already upgraded the transformers in Babatngon. You may have to coordinate with Leyeco II. The project in Panay that will loop the island is the Southern Panay 138 kV Backbone Transmission and the Culasi-San Jose 69 kV Transmission line. The Southern Panay (Sta. Barbara-San Jose) is an on-going project with a target date of completion on the 4th quarter of 2012. Culasi-San Jose is in its pre-construction stage and the contract will be awarded in July 2012 and target date of completion is October 2013. What was proposed to ERC in 2005 for the NegrosPanay second circuit is a 138 kV line. What NGCP is presenting in the public consultations is an option for a 230 kV backbone and another option for the 2nd circuit 138 kV line. A 230 kV line is proposed to significantly reduce the length of the backbone, from north Cebu to cross directly to Negros and because there is a plan to construct a 200 MW power plant in Panay. However, the cost estimate is about PhP 36 billion. The 230 kV Cebu-Negros is just an option. At this point, NGCP is

39

2011 Transmission Development Plan Public Consultation Report 11 Ancillary Services NOCECO The provision and acquisition of ancillary services in the Visayas to prevent manual load dropping during day peak and night peak and once a plant or a line is out. leaning towards the 138 kV option. NGCP is currently looking for ancillary service provider in Visayas. Right now the remaining power plants of NAPOCOR and the geothermal power plant in Palinpinon are the only ancillary service providers. NGCP is asking the power plants to provide ancillary services, but according to them they dont have enough capacity. Last March 2011 NGCP went out and publish in the newspaper to ask for ancillary services provider in the Visayas and Mindanao and it is going to publish again. That was the original plan, to decommission the 69 kV Catbalogan-Calbayog, but we are not pushing through with it.

12

Catbalogan-Calbayog 69 kV T/L

SAMELCO II

Is the Catbalogan-Calbayog 69 kV line being decommissioned after the energization of the Calbayog 138 kV line?

40

Annex A
Pro-forma Invitation

Annex B
Broadsheet Publications

Philippine Daily Inquirer December 10, 2011

The Philippine Star December 11, 2011

Annex C
DoE Meeting Highlights

Annex D
List of Participants

Luzon Public Consultation

Mindanao Public Consultation

Visayas Public Consultation

Consultation with PEMC

Consultation with Grid Management Committee and Distribution Management Committee

Consultation with MERALCO

Consultation with the National Transmission Corporation (12 September 2011)

Consultation with the National Transmission Corporation (04 January 2012)

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