OCCIDENTAL MINDORO ELECTRIC COOPERATIVE, INC.
San Jose, Occidental Mindoro
BUSINESS PLAN
2009 TO 2014
THE OMECO MANAGEMENT TEAM
Table of Contents
Title Page
Table of Contents
I.
Background
II.
Proposed Projects
18
III.
Five-Year Historical Planning Data
22
IV.
Technical Analysis
24
V.
Financial and Economic Analysis
26
VI.
Conceptual Engineering Design
29
VII.
Project Cost Estimates
43
VIII.
Project Financing Plan
44
IX.
Implementation Plan
46
X.
Risks/Threats
47
XI.
Conclusion/Recommendation
11
Annexes
1
I. Background
A) The Cooperative
Occidental Mindoro Electric Cooperative, Inc. is a non-stock and non-profit electric
service distribution cooperative. It is duly organized under Presidential Decree No.
269, as amended and incorporated on March 25, 1974.
i. Vision and Mission
OMECO envisions a fully energized Occidental Mindoro, through a self-reliant
electric cooperative, where the people in rural areas as well as those in urban
communities enjoy reliable and sustainable electric services provided for and by
the concerned member-consumers and competent, honest and enthusiastic
officers and employees.
It will continue to strive for the Total Electrification of its coverage area to help
promote the sustainable economic development in the entire province through
the genuine cooperative efforts of its stakeholders under the principles of
Absolute Honesty, Maximum Efficiency and Total Solidarity.
ii. Registration
OMECO is registered with the National Electrification Administration on March
25, 1974, and is granted its franchise on an area coverage basis by National
Electrification Commission under Franchise Registration Number 54 dated
February 13, 1980 and valid until February 13, 2030.
It is registered with the Securities and Exchange Commission on _____ and is
authorized by the Bureau of Internal Revenue with Certificate of Registration no.
OCN 1RC000292326 dated September 14, 1997.
B) Operational Milestones
OMECO, after 34 years of dedicated service to its member-consumers has gained
invaluable lessons through its struggles from initial uncertainty to the peak of its
operational efficiency. The hard-earned skills from these experiences will enable the
cooperative to attain the flexibility to withstand the current problems besetting its
stability.
i. The Start-Up
Managers and key officers from the National Electrification Administration
officials stirred the cooperative during its organization and early years of
operation after OMECO was awarded the franchise in the towns of San Jose,
Magsaysay, Rizal and Calintaan. This phase involved massive erection and
construction of facilities and simultaneous capacitating of human resources.
On May 7, 1974, OMECO bought-out the private San Jose Electric System. The
operation of the plant in the commercial districts of San Jose did not last long
because of machine failure. It was only in December 15, 1976 when the town
was re-energized using OMECO’s power plant and upgraded distribution system.
The demand was much below the break-even point of operation. The revenues
could not sustain the cost of operation but OMECO held-on and accelerated the
load additions and expansion to the coverage area.
1
ii. Through the Years
While expanding its services in San Jose, the construction of lines going to the
neighboring towns went under-way. Eventually the town centers in Magsaysay
(March 14, 1977), Calintaan (June 28, 1977) and Rizal (November 28, 1977)
were commercially electrified for the first time.
The success in infrastructure development led to the integration of the towns of
Mamburao, Sablayan, Sta. Cruz, Abra de Ilog and Paluan in August 8, 1979. The
second wave of distribution development was launched for the northern
municipalities of Occidental Mindoro.
Subsequently, OMECO’s power plant in Mamburao commenced its commercial
operation in March 1, 1980 serving only the poblacion. From there, the lines to
Sta. Cruz, and Abra de Ilog were constructed.
In November 1980, OMECO acquired the assets of Sablayan Electric Company
and took over the electrification in the center of Sablayan. The local plant was
later scrapped after the town’s distribution system was upgraded and tied to the
South Grid from San Jose.
The massive expenditures in the infrastructure affected the finances of OMECO.
It continued operating below the break-even levels. The burden was also
aggravated by the inadequate institutional development, as manifested among
others by poor collection efficiency and high systems loss.
Load additions took the toll on the power plants that were only refurbished when
initially acquired for OMECO. Maintenance expenses bloated beyond endurance
until the cooperative finally succumbed to great losses in early 80’s.
The turn-around of OMECO started in December 23, 1983 through the militaristic
leadership of the late Col. Zoilo M. Perez, Ret. Funds for fuel and engine
rehabilitation borrowed from private citizens, the strict implementation of
collection/disconnection policies reinforced with hard disciplinary measures on
human resources and extreme cost consciousness powered the cooperative
through the very stiff climb uphill. Steady efforts on institutional development also
proved worthwhile.
The demand leaped as aftermath of the National Power Corporation’s take-over
of the cooperative’s power plants in June 6, 1988 where tariff rate was lowered
from P 4.75 to P 2.50 per kWh. The sudden load growth ate up the supply
capacity in early 90’s and paved the way for the Island Power Corporation, a
private generating company, to enter the picture with an exclusivity contract for
25 years.
From a virtually dead electric cooperative in 1983, OMECO gradually became a
Class-A+ cooperative and maintained that status long after GM Perez retired
because of old age in 1996.
The momentum propelled the cooperative under the management of GM Alex C.
Labrador to greater heights until the hurdles of the changing environment in the
Power Sector became much of a problem.
The main power generator, the Island Power Corporation was the first to suffer,
until it finally ceased operation in 2006 leaving OMECO to the missionary
mandate of the NPC-SPUG. It was very unfortunate that the power development
from NPC-SPUG was delayed, forcing OMECO to shoulder the rental of
generators from a private company. This, among others influenced the eventual
decline in the operational performance of OMECO.
2
The preparedness for the EPIRA environment proved futile as revenues
diminished as a result of non-responsive rates approved by the Energy
Regulatory Commission, and too much subsidy to system losses above the
prescribed system loss cap. Plans to adjust came in too late when the
cooperative is already operating through deficit spending.
iii. Awards and Recognition
OMECO’s performance during the past year earned the cooperative the following
awards and recognition:
a) Best in Collection Efficiency/Performance Award – given by NEA in 1988
through 2006
b) Exemplary Payor Award – given by NEA in 1995 through 2001
c) Outstanding Electric Cooperative (Large Category) – given by NEA in
2002
d) Top Revenue District Taxpayer (Non-individual Category) – given by
Bureau of Internal Revenue District of Occidental Mindoro in 2006
e) Model Taxpayer – given by Bureau of Internal Revenue District of
Occidental Mindoro in 2006
iv. Classification
From a Category D Small Cooperative in early 80s OMECO rose to become
Category A+ Medium Sized Electric Cooperative in mid 90s, a Category A Large
Cooperative in late 90s to 2001 through 2004. It was rated Category B in 2005 &
2006. Difficulties in operation earned the Cooperative the Category Rating C in
2007 and 2008.
C) The Franchise Area
i. The Coverage Area
Occidental Mindoro is one of the two provinces comprising Mindoro group of
islands. It is located south of Batangas and north of Visayas.The eastern portion
of the province is bounded by Oriental Mindoro and the western portion by the
Apo East Pass. On the north, it is bounded by Calavite Passage and the Verde
Island Passage and on the south by the Mindoro Strait. The Southernmost tip of
the province lies in the area of the Sibuyan Sea.
The province has eleven (11)
municipalities. Mamburao of the
northern portion of the province is
the capital while the southern town
of San Jose is the most highly
urbanizes trade center, followed
the
central
municipality
of
Sablayan. Looc and Lubang are
island municipalities located in the
Lubang Island Group north of the
province, belong to Lubang Electric
Cooperative but managed by
OMECO.
Table 1
Land Area Broken-Down by Municipality
Province of Occidental Mindoro
No. of
Land Area
Barangays
(sq km)
Municipality
Abra de Ilog
9
533.70
Calintaan
7
382.50
Looc
9
132.30
113.10
Lubang
16
Magsaysay
12
296.75
15
297.60
Mamburao
Paluan
12
564.50
Rizal
11
242.50
Sablayan
22
2,188.80
446.70
San Jose
38
Sta. Cruz
11
681.40
Total
162
5,879.85
Occidental Mindoro has a total land
area of 5,879.85 sq km. Taking out
Looc and Lubang, OMECO’s
coverage area then is 5,634.35 sq km in nine (9) municipalities consisting of 137
3
barangays. The largest municipality is the highly productive agricultural town of
Sablayan with 2,188.80 sq km, the second largest in the Philippines. Table 1 in
the preceding page shows the breakdown of the province’s land area.
The distribution service in Paluan is undertaken by the local government with the
lines borrowed from OMECO and supply provided by the NPC-SPUG.
The present Occidental Mindoro is an agricultural area devoted to the production
of food. Its economic base is rice production (Oryza sativa culture), a Philippine
staple crop. It is the leading activity and source of seasonal employment in the
province, participated in by almost 80 per cent of the population, including
children.
Wet land or lowland rice is a rainy season crop, being heavily dependent on
water, and therefore produced from July (planting season) to October (harvest
season). Tobacco, onions, garlic and vegetables are rather grown during the dry
season (November to May) since they are not water-intensive crops, and require
longer photoperiodicity.
Rice, corn, onions, garlic, salt, fish (both wild water and cultured) are some of the
relatively significant surpluses produced in the province in exportable quantities.
Mangoes, cashew nuts, cooking bananas (saba) and some other fruits grown in
upland orchards are among the other exports of Occidental Mindoro that have
traditionally contributed to its income. Peanuts are also comfortably grown in
some parts of the province, as well as cassava, sweet potatoes, ginger and other
minor cultivars.
Forest resources include timber and minerals, among them gold, copper, silver,
chrome, and non-metallic minerals such as lime for making cement, and
greenstones for ornaments. Timber groups include many species of hardwoods,
such as mahogany, and other types of trees in high demand for durability.
Commercial and aquaculture fish production is also a major contributor to the
provincial economy. Aqua farming of tiger prawns, tilapia and even milk fish is a
growing industry in the province.
There are no large industries in the province. The government is the biggest
employer, absorbing most of the off-farm labor force. The local electric
cooperative, Occidental Mindoro Electric Cooperative (OMECO), is the biggest
employer in the private sector, with 174 regular employees. The rest of the
population is engaged in private trades.
There are many multi-faceted problems in Occidental Mindoro's economy. In rice
farming, the biggest confronting the producers are the high cost of production.
This is attributed mainly to the spiraling prices of farm inputs. A study concludes
that from 1997 to 2003, the cost of production rose by 47 per cent, while the
income derived from marketing rice has maintained 1997 levels. There are also
confused reports that the average production rate has declined due to the
reduced application of necessary farm chemicals. In street language, this means
that the farmers simply cut the amount of inputs because they cannot afford the
high capital requirements of following all the recommended inputs in the farming
calendar.
Another structural problem is the inadequacy of irrigation. Most of the river
systems in the province no longer have the demanded volume of water to make
irrigation feasible. This is attributed to the greatly deforested watersheds.
The status of road networks is another major problem that affects the economy.
While the development of the major ports is expected in this decade, three
domestic airlines are serving the south through the San Jose Airport and access
to the northern parts is afforded through roll-on/roll-off vessels plying the
Batangas-Abra de Ilog route.
4
Official NSO figures reported that for October 2000, the province registered a
labor participation rate of 71.5% and 86.6% employment rate. Unemployment
was registered at 13.2% while the under employment registered 22.2%.
The NSO QuickStat November 2002 release reported that for CY 2000, the
province registered an Annual Average Family Income of P 100,607, an Annual
Average Family Expenditures of P 83,353 , an Annual Averaged Family Savings
of P 17,254, an Annual Average per Capita Income of P 23,553 and an Annual
Average per Capita Expenditure of P 18,606.
ii. Status of Energization
Of the 137 barangays in the coverage area, 118 are energized through the
OMECO grids while 17 where energized off-grid either with stand-alone
community gensets or NRE’s provided by the Department of Energy. 99% of all
the barangays are energized. Table 2 below shows the Status of Energization as
of October 31, 2008.
Tab le 2
Status of Enegization
As of October 31, 2008
Municipality
Abra de Ilog
Calintaan
Magsaysay
Mamburao
Paluan
Rizal
Sablayan
San Jose
Sta. Cruz
Total
Coverage
9
7
12
15
12
11
22
38
11
137
Barangays
Energized
9
7
12
15
10
11
22
38
11
135
%
100%
100%
100%
100%
83%
100%
100%
100%
100%
99%
iii. District
T ab le 3
District R epre se ntation s
Co verag e
S an Jo se (Ha lf)
S an Jo se (Ha lf)
M ag sa ysa y
Rizal
Ca linta an
S ab laya n
M am bu rao
A bra de Ilo g
(P aluan )
S ta. Cruz
D istrict
I
II
II I
IV
V
VI
V II
The Member-Consumers of OMECO are
represented in seven (7) districts as shown in
Table 3.
The subdivision scheme considers the balance
in the numbers of represented memberconsumers and geography and demography.
iv. SPUG Area
There is currently no SPUG Distribution Area in OMECO’s franchise, although
the whole coverage area is under NPC-SPUG’s Supply.
D) Facilities
i. Major Offices
5
OMECO places itself near the hearts of its member-consumers. Its major offices
and/or service centers are strategically located in major population centers. Table
4 below shows the location of major offices.
Table 4
Locations of Major Offices
Main Office
Sablayan Area Office
MAPSA Area Office
Pag-asa Service Center
Address
M. H. del Pilar St.
San Jose, Occidental Mindoro
Brgy. Buenavista, Poblacion
Sabla yan, Occidental Mindoro
Airport Road, Brgy. Payompon
Mamburao, Occidenal Mindoro
National Highway, Brgy Pag-asa
Sablayan Occidental Mindoro
Phone
(043) 491- 1021
(043) 491- 1364
(043) 491- 1981
(043) 711-1806
(043) 711- 1009
In addition, OMECO maintains maintenance quarters in most municipalities
where periodic transactions, such as payment of bills, as well as service requests
are handled.
ii. Substation Facilities
The cooperative owns a single substation unit located in Pag-asa, Sablayan. It is
rated 5 MW and draws power from the TransCo 69 kV Mindoro Grid. Installed
and commissioned in 2004, it has metal structures, SF6 high-side breaker and
low-side breaker fitted with Vacuum Fault Interrupters. The substation is
dedicated to supply the Sablayan circuits and portion of Sta. Cruz.
NPC-SPUG maintains a substation in Mamburao for the OMECO MAPSA Grid or
North Grid. It is rated 10 MW but the allocation is only for 2.5 MW from the
TransCo/ NPC-SPUG ancillary plant.
NPC-SPUG also provides OMECO with a 5 MW substation that serve as tie to
the Distribution System from their almost abandoned plant, PLDPP in Brgy.
Central, San Jose.
The extent of the supply is better discussed later under Sources of Power
Supply.
iii. Distribution Lines
Table 5 on the right describes the coverage
of the sparesely loaded distribution system in
lineal kilometers.
While most of the wooden poles used, 80%
of them, are exceeding their rated life
expectancy, the circuits are well maintained.
Ta ble 5
Distribu tio n N etw ork (Line al Km s)
Typ e
69 kV Tran sm ission
3 Ph ase 13. 2/7 .62 kV
2 Ph ase 13. 2/7 .62 kV
1 Ph ase 13. 2/7 .62 kV
S econ da ry U nd er-bu ilt
S ep arate S econ da ry
Tota l
K ms.
0.4 0
28 6.7 0
6 5.9 9
21 3.3 8
29 9.2 1
8 2.8 7
94 8.5 4
Most of the distribution transformers have
laminated silicon-steel cores and have to be
replaced by more efficient amorphous core units in order to achieve significant
reduction in systems loss.
The distribution lines spanned 948.54 kms to serve the whole coverage area.
The nominal primary voltage is 13.2/7.62 kV and the utilization voltage is 0/240 V
– nominal.
6
iv. System Map
System Operating Map
Occidental Mindoro Electric Cooperative, Inc.
7
E) Consumer Profile
i. Categories by Type
Type of services and the tariff are categorized by occupancy and/or utilization.
They are:
a) Residential – for domestic dwellings
b) Commercial – for establishments engaged in businesses and/or trade
c) Industrial – for manufacturing sector, where raw materials are processed
into finished products
d) Large Loads – for utilization other than residential use, with at least 100
kva demand
e) Public Buildings – for establishments owned by the government, or where
non-profit services or functions to/of general public are delivered/held
f) Street Lights
ii. Composition
Table 6
Number of Customers by Type
for the Month of October 31, 2008
Residential
Commercial
Industrial
Large Load
Public Building
Street Lights
Total
Connections
43,122
2,852
45
18
990
105
47,132
Table 6 shows the degree of service
connections for the month of October 2008.
%
91.49%
6.05%
0.10%
0.04%
2.10%
0.22%
100.00%
Residential type of customers dominates
the number at 91.49%. Commercial
customers rank second at 6.05% followed
by Public Buildings at 2.10%.
Industrial, Large Load and Street Lights
customers are insignificant in number.
In the arena of energy consumption, Residential type of customers is still
dominant at 53% share followed by Commercial sales at 19%. Large Load
comes third at 14% while Public Buildings and Industrial Loads have 7% and 6%
shares, respectively.
Chart 1
Energy Sales By Type (kWh)
As of October31, 2008
Revenue By Type (P ,000.00)
As of October31, 2008
Street Lights
248,190
1%
Public Building
2,515,312
7%
Large Load
37,951
13%
Large Load
5,317,699
14%
Industrial
2,081,545
6%
Street Lights
2,256
1%
Public Building
19,100
6%
Commercial
7,123,832
19%
Residential
20,207,285
53%
Industrial
15,181
5%
Commercial
55,893
19%
Residential
169,595
56%
In terms of revenue generation, the market shares of the categories have the
same trends as in energy consumption because the difference in tariff rates
across the customer types is insignificant. This is shown in Chart 1 above.
iii. Demand per Type
8
Chart 2 below shows OMECO’s Demand Curve that is typical for January to
October of 2008.
Chart 2
12
St Lights
Pub Bldg Large Loads
10
Industrial
8 Commercial
6
4
2
Residential
0
0:15
1:30
2:45
4:00
5:15
6:30
7:45
9:00
10:15
11:30
12:45
14:00
15:15
16:30
17:45
19:00
20:15
21:30
22:45
0:00
MW
OMECO Demand Curve
Typical, January to October 2008
TIME
The cooperative has a coincident peak of 11.75 MW between 7:00 PM and 8:00
PM. The day’s peak is in the vicinity of 8 MW, expected between 9:00 AM and
4:00 PM.
The seasonality of the demand is determined by the Large Load customers,
consisting mainly of Rice Mills and Ice Plants.
Table 7
Peak Demand (MW)
Typical for the January -October, 2008
Residential
Commercial
Industrial
Large Load
Public Building
Street Lights
Total
Coincident
Non-Coincident
9.26
9.26
1.86
2.56
1.02
0.21
0.24
2.00
0.16
1.09
0.05
0.05
11.78
15.98
The system Load Factor is at 51% while
the Average Demand is in the vicinity of 6
MW, typical. The major determinant of
characteristic demand is the Residential
type of customers.
OMECO has a non-coincident peak
demand roughly in the level of 16 MW
and its coincident peak demand is
nearing 12 MW. The peak demand data
for all types of customers are shown in
Table 7 on the left.
Again, Residential customers’ demand is the greatest at 9.26 MW followed by
Commercial users with 2.56 MW. Industrial and Large Load users have 1.02 MW
and 1.09 MW non-coincident peaks, respectively.
F) Sources of Power Supply
As mentioned earlier, OMECO has three isolated Distribution Grids – of course with
flexibility ties. These Grids have sources described in the following subsection.
i. Power Plants / Sources
The matrix in Table 8 shows the available power sources in OMECO in each
Distribution Grid.
9
Table 8
Sources of Power by Grid
( MW)
Grid
North Grid
Central Grid
South Grid
District
VII
V, VI, VII
I, II, III, IV
Source
69 kV TL
MDPP
69 kV TL
PB 106
PLDPP
Bubog
Owner
TransCo
NPC-SPUG
TransCo
NPC-SPUG
NPC-SPUG
IPC
Rated/Allocated Dependable
Remarks
4
4
10/2.5
2.5
Ancilliary Plant
2.5
2.5
10
8
0.25
Ancilliary Plant
7
0
Non-Operational
The North Grid and Central Grid are more assured of supply capacity from NPCSPUG & TransCo, neglecting the reliability issues in the transmission lines, and
the reliability of supply from generators participating in the Mindoro Grid.
Source for the OMECO South Grid is in critical capacity level in the standpoint of
peak demand and the supply capacity. PB 106 which is a power barge has
technical problems with the berthing draft levels. The IPC plant in Bubog is nonoperational for almost three (3) years because of irreparable engine break-down.
ii. Average Power Requirement and Growth Rate.
Chart 3 on the right shows the historical
energy sales, in GWH from year 2004 to
2008. It could be gleaned that the
enegy sales almost flattened during the
past 5 years with an averaged growth
rate of 5.5%
50.00
38.21
40.00
GW H
The capacity shortage in years 2005 &
2006 caused by the failure of the IPP
and the problem in the mooring site of
the augmenting Power Barge 106 are
the major causes of this almost
saturated trend.
Chart__
Chart
3
Energy Sal es
42.74
30.00
35.81
39.71
44.32
20.00
10.00
0.00
2004 2005 2006 2007 2008
Year
G) Status of Operations
i. Technical Performance
1) Energization Level
In terms of barangay electrification, 135 of the 137 barangays in the franchise
area are energized, corresponding to 98.54% electrification rate.
The household electrification level as of October 31, 2008 is at 49% with
42,895 energized residential customers compared to 87,990 estimated
number of households in year 2007 census, i.e. assuming a single connection
per household.
2) Reclassification (Size)
OMECO is grouped among the Large electric cooperative in year 2007 and
2008. It is categorized as Class C based upon the 2007 performance
evaluation.
The coop has yet to improve in the areas of system loss, payment to power
suppliers and control of cash advance to its officers and employees.
10
3) Payment Status to Power Suppliers
Based upon the Statement of Accounts from the National Power Corporation,
OMECO has an outstanding accounts payable amounting to P
269,003,866.66 as of September 30, 2008. The indebtedness includes
unsettled Power Billing, E-Vat component, interests and surcharges.
On August 2008, the NPC approved the restructuring of accounts amounting
to P102,024,283.58 and charged the interest of P32,517,464.10 through the
period of 5 years.
Negotiation for the condonation of previous interest charges amounting to
P11 M is under way with NPC-SPUG though.
4) Loan Repayments
OMECO remains current in its loan repayments to the National Electrification
Administration. In 2001 when the condonation of electrification loan was
announced under EPIRA, it religiously continued paying NEA until the final
condonation was approved in 2004. Table 9 below shows the Historical loan
repayments to NEA.
Table 9
Historical Loan Repayments
P Million
Year
Principal Payments
4.119
2004
2005
4.483
2006
4.416
2007
2.584
2008
2.929
Interest Payments
3.568
3.849
4.435
4.239
3.941
5) Customer Consumption
The following Chart 4 illustrates the comparative GWh sales per type of
customer for the years 2004 through 2008, and Table 10 provides the
averaged growth rate for the respective classes. Revenue comes
predominantly from the residential customers at 24 GWh in 2008 with an
averaged growth of 2.80%. Commercial customers follow with 8 GWh at
7.90%.
Chart
4
C hart__
Historical G W h Sale s
25.00
Residential
Commercial
Industrial
Large Load
Public Building
Street Lights
GW h
20.00
15.00
10.00
5.00
2004
2005
2006
2007
2008
Year
The Large Load class follows at 7.5 GWh and 10.10% growth. Both Public
Building Customers and Industrial Classes are trailing near 3.5GWh but the
growth rate for Industrial class is 7.60% while it is 13.30% for the Public
Buildings. Sales and growth from the Street Lighting is quite low. Table __ in
the following page shows the averaged growth rates in energy sales per
customer type.
11
Table 11 below shows the extent of use per customer
per month. Use dilution could be observed in the
Residential, Large Load and Street Light categories,
owing to the diminishing degree of use of new
additions to each category.
The Table 12 describes the rate of such use.
Residential Customers tend to consume less through
the years by 5.5%. Large Load Sales per month per
customers is decreasing by 6.1%. Street Lights per
customer use also decreases by 4.6%. Industrial
Customers’ use increases by 2.5%, Public Building by
3.3% and Industrial by 5.1%.
Tab le 11
Av eraged kWh per M onth per C ustomer
2004 to 2008
2004
57
213
3,649
41,443
219
47
R eside ntial
C omme rcial
Industr ial
Large Load
Public Building
Street Lights
2005
52
216
3,706
26,861
213
35
Table 10
Averaged Growth Rate
GWh Sales
2004 to 2008*
Tab le 12
Grow th R ate, kWh/mo/cust
*
2004 to 2008
2006
52
225
4,020
28,443
254
37
%
2.80
7.90
7.60
10.10
12.30
0.60
5.50
Residential
Commercial
Industrial
Large Load
Public Building
Street Lights
Total
2007
47
238
4,306
38,469
243
39
2008
46
235
4,458
32,235
250
39
*
%
R esidential
C ommercial
Industrial
Large Load
Public Building
Street Lights
-5.5
2.5
5.1
-6.1
3.3
-4.6
6) Power Factor
T able 13
Table 13 on the left shows the System Averaged Power
Factor through the years 2004 – 2008. The fair figures
were the result of the restrictions from the supply
plants.
System Averaged
Power Factor
2004 to 2008 *
Year
2004
2005
2006
2007
2008
%
90.88
92.50
91.34
92.66
95.28
The generating plants allegedly becomes unstable at
higher power factors, hence to prevent trippings,
capacitors are disconnected from the line.
7) System Loss
Chart 5
Historical System Loss
12,500
7,009
8,652 9,934 9,008
8,872
MWH
10,000
20.00%
7,500
5,000
25.00%
16.20%
18.33% 19.87% 17.28%
16.56%
15.00%
10.00%
2,500
5.00%
-
0.00%
2004
2005
2006
2007
MWh
%
2008
Year
Chart _ on the preceding page provides the historical system loss data. The
loss curve is somehow reflective of non-technical system loss as determined
12
from the distribution system loss segregation in 2006 where the technical
system loss was computed ranging from 7% to 8% during the historical year
2001 to 2005. Hence, rehabilitation of the system to reduce the system losses
is the priority program of OMECO.
8) Peak Demand
Chart
6
Chart__
Peak Demand
12.50
12.00
12.00
12.00
20
08
11.00
20
07
10.50
11.00
20
06
11.00
20
05
The capacity shortage in years 2005
& 2006 caused by the failure of the
IPP and the problem in the mooring
site of the augmenting Power Barge
106 are the major causes of this
almost saturated trend.
12.00
11.50
20
04
MW
Chart 6 on the right shows the
historical peak demand, in MW from
year 2004 to October of 2008. It
could be gleaned that the peak
demand almost flattened during the
past 5 years with an averaged
growth rate of 2.2%
Year
9) Contracted Demand
The contracted demand with the National Power Corporation until year 2010
could cover the coincident peak load of the system. It should be revealed that
the ECA with the Island Power Corporation is not reflected in the chart below.
Chart 7
13
ii. Financial Performance
1) Historical Financial Highlights
OMECO registered a very large net loss of P 50.86 Million in 2008 as
reported by the external auditors. This result represents 14.5% excess of cost
and expenses over the revenue, although it is 32.0% lower than the previous
year’s corrected large net loss of P 74.76 Million. Cash operations however,
resulted to reduced but still very large net loss/cash outflow of P 29.23 Million
– net of depreciation.
A substantial component of the large net loss is interest expense of P 16.99
Million, which include penalty for long overdue/restructured NPC power
supply accounts. This negative performance brought up further the
accumulated deficit by about 20.5% now at the magnitude of P 299.16 Million,
from the previous years’ corrected deficit of P 248.30 Million (2007) and
P173.54 Million(2006).
2) Profitability, Liquidity, Leverage, Debt Service
For the past year 2008, the return on assets is -1.21% with the debt service
coverage marked at 4.12:1. The leverage (Total Long Term Debt to Total
Assets) is at 9.36% and the current ratio is 1.96:1.
3) Tariff: Average per Customer Type
The average system rate charged to
customers during the entire year 2008 is
shown in Table 14 on the right.
Table 14
The figures include the supply cost, distribution
cost and government revenues and taxes.
H) The Organization
i. Board of Directors
The power of the General Assembly is vested upon their elected District
Representatives to the Board of Directors who has the legislative and
oversight functions on the management. The present composition of the
Board is as follows:
Jerry Villanada – President and Chairman of the Board. He is involved in
community organizing and development with Plan
International, Inc., an NGO. His term will end in May 31,
2009 after two (2) consecutive terms as director following
the defeat in April 2009 district elections in San Jose
District II.
Samuel A. Villar – Secretary. He first represented District VI (Sablayan) in
1988 and won successive terms by re-election. He is due
for reelection in 2010. A BS Mechanical Engineering
Graduate and a candidate in Master in Business
Administration, he also earned a Diploma in Population
Studies in Bombay, India. He previously worked with the
Provincial Engineer’s Office as Equipment Engineer and is
currently the OIC-Provincial Officer of the National Census
and Statistics Office.
14
Francisco T. Servando – Vice Chairman. He is representing District VII
(Mamburao, Abra de Ilog, Paluan & Sta. Cruz Area) and
first appointed in 1997. His term as elected director will
expire in 2010. He is also working as the Municipal
Elections Officer in Sta. Cruz COMELEC office.
Melito C. Pasol – Treasurer. He is a teacher by profession in District IV (Rizal)
and is a graduate of BS in Agriculture with units in
Education. It is his first term as director until 2010.
Myrna G. Magno – Member. She is representing District III (Magsaysay) until
2011. A graduate in BS in Education, she is a
businesswoman by profession.
Arsenio C. Samson – Member. He is a former municipal councilor in District V
(Calintaan). A third year BS Business Administration and a
licensed Radio Telephone Operator, he is currently
engaged in farming and business.
Eliseo M. Lising, Jr. – In-coming Director (May 31, 2009). He is a past
Barangay Chairman in San Jose District I and a
businessman by profession. He finished Bachelor in Fine
Arts.
Ferdinand B. Mercene – In-coming Director (May 31, 2009). A college
professor and a former municipal councilor in San Jose
(District II), he finished BS in Business Administration and
is a Master of Science in Information Technology after
earning vocational courses in Teaching English as a
Foreign Language, Computer Programming and System
Analysis and Design.
ii. Management Team
Alex C. Labrador – General Manager (Retired: April 30, 2009)
Alfred A. Dantis – Officer-In-Charge. He is a graduate of BS in Electrical
Engineering at the Mapua Institute of Technology (198084) and a Registered Electrical Engineer with PRC License
No. REE 001294. Hired in 1985 as a cadet engineer, he
established the Transformer Rewinding Section of the
Cooperative while performing as a Shift-Charge Engineer
in OMECO Power Generations Department. He led in the
operational and institutional rehabilitation of MAPSA Area
in 1986 and Sablayan Area in 1998. He also worked as the
Chief Engineer in the Technical Services Department in
early 90s before was chosen the Manager of the
Institutional Services Department in 1994. He performed as
the OIC in Technical Services Department in concurrent
capacity in late 2005 to February 2008. He is a self-learned
computer programmer in MS Visual Basic and Visual
FoxPro.
The OMECO Management Committee
Anita G. Juaño – Finance Services Department Manager
Ricky A. Gonzales – Technical Services Department Manager
Glen Cris C. Luna – Institutional Service Department OIC
Teresita G. Casuncad – Internal Audit Department Manager
Ildefonso S. Delgado, Jr. – MAPSA Area Manager
Celso S. Garcia – Sablayan Area Manager
15
iii. Personnel Complement
There are 180 permanent employees in the workforce including the
managers and supervisors. The number is required to provide the quality
service and acceptable response time to service requests from the
member consumers in the entire area coverage. The workforce is
distributed in the three major service centers that are geographically
separated by rough roads, savanna of farmlands and rugged terrains.
Table 15 describes the distribution of permanent employees in the three
centers.
Table 15
Distribution of Permanent Employees Per Service Center
As of March 31, 2009
Office-Based
Managers Supervisors
Field Work Customers
NonTech
Tech
Main Office
6
20
28
12
61
31,110
OGM
2
2
4
4
3
FSD
1
6
15
12
ISD
1
6
6
7
2
TSD
1
6
1
1
44
IAD
1
2
Sablayan
1
3
1
1
11
9,626
MAPSA
1
3
6
5
21
12,224
Total
14
46
63
30
154
52,960
% of Employees
5%
15%
21%
10%
50%
Cust vs. Mon-Mgr'l Emp
1,151
841
1,765
344
181
Main Office
1,637
1,152
2,828
519
257
Sablayan
3,209
9,626
9,626
875
602
MAPSA
4,075
2,037
2,445
582
349
One manager in the OGM is detailed in LUBELCO as the deputized
Officer-In-Charge. Generally there is one (1) non-managerial employee for
every 181 service connections. On the average there is one (1)
fieldworker for every 344 customers, however the distribution in the
service centers seems to be uneven because the heavy construction
teams are counted in the San Jose Main Office.
Likewise, employees rendering tasks shared in the service centers are
counted in the Main Office. The non-technical and technical office based
employees and the four departments, in San Jose, are delivering for the
three centers.
A study to balance the manpower complement in the three areas, relative
to customers and circuit kilometers is contemplated.
Table 16
Educational Attainment of Permanent Employees
As of March 31, 2009
Master's Graduate Licensed Bachelor's College
Trade
180 Degree Studies Profesionals Degree
Level
Courses
Main Office
Sablayan
Mamburao
Total
%
1
3
7
1
0.56%
3
1.67%
1
8
4.44%
44
5
8
57
31.67%
13
1
1
15
8.33%
41
8
22
71
39.44%
High
School
Graduate
17
3
4
24
13.33%
Elementary
Graduate /
Level
1
1
0.56%
Table 16 above shows the educational attainment of the employees of
OMECO, where it could be gleaned that the workforce could efficiently
deliver their jobs.
Employees aged 36 and above are nearing their retirement. This
represents some sixty percent 60% of the regular employees. Fifteen
16
percent (15%) of the employees will retire in the next ten (10) years. The
distribution of permanent employees as to their age groups is shown in
Table 17 below.
OGM
FSD
ISD
TSD
IAD
Sablayan
MAPSA
Total
%
Table 17
Permanent Employees' Distribution by Age Group
As of March 31, 2009
Below
26-30
31-35
36-40
41-45
46-50
51-55 56-60
26
1
2
3
5
1
2
1
3
4
11
4
7
5
5
2
5
3
2
2
3
8
8
10
10
7
10
1
1
1
5
3
4
4
1
7
12
8
6
1
2
3
31
39
30
32
18
22
5
1.67% 17.22% 21.67% 16.67% 17.78% 10.00% 12.22% 2.78%
Similarly, some thirty-two (32) permanent employees, representing
nineteen percent (19%) of the manpower, will complete their 35 years of
service in the cooperative in the next ten years as shown in the following
Table 18.
Table 18
Permanent Employees' Distribution by Length of Service
As of March 31, 2009
Below
6-10
11-15
16-20
21-25
26-30
31-35
6
OGM
1
3
4
4
2
1
FSD
4
13
2
1
2
5
7
ISD
3
8
1
4
3
2
1
TSD
8
11
14
4
5
6
5
IAD
1
1
1
Sablayan
2
5
5
3
1
1
MAPSA
2
13
6
9
3
3
Total
21
54
32
25
16
19
13
%
11.67% 30.00% 17.78% 13.89% 8.89% 10.56% 7.22%
OMECO should prepare, financially and administratively, for the retirement
of the employees.
17
II. The Proposed Projects
A) Distribution Projects
i. Projects with direct system loss reduction
a) Line Rehabilitation and Meter Clustering – This project consists of
correction of over-extended secondary lines and octopus service lines
that would be effected through extension of primary lines, secondary
and under-built lines. Clustering of KWh meters in the affected areas
where non-technical loss is significant, and installation of new KWh
meters are also involved. Major requirements are:
1) 2 – phase primary lines – 0.79 km
2) 1 – phase primary lines – 28.45 km
3) Insulated secondary under-built – 40.27 km
4) Insulated separate secondary – 38.48 km
5) KWh Meters – 12,907 pcs
6) Duplex wire#6 – 64,535 meters
7) Metal Cluster Boxes with Grilled Windows – 1,984 pcs.
b) Transformer Load Management – The project involves correction of
distribution transformer loading through load centering, split loading or
replacement. Amorphous core transformers will be used in replacing
unserviceable units because of their significantly low core losses. For
this matter, transformers aggregating 5,099 KVA will be required.
c) Capacitor Placement – 3,000 KVARs of capacitors will be needed to
preserve the power factor at 95%, thereby improving the voltage and
reducing the system loss in the franchise area.
ii. Projects with indirect system loss reduction
OMECO classifies these projects as Essential but Non-viable
Rehab/Upgrading Projects because the objective is only to improve the
Reliability and/or Power Quality.
a) Installation of new 5 MVA substation in Mompong, Sablayan – The
feeder from Pagasa substation serving the Municipality of Sablayan
and the northern portion of the town of Calintaan traverses between
the banks of adjacent major rivers. For almost six (6) years, OMECO is
spending millions in re-routing the feeder every time it is washed away
by the turbulent waters during rainy season. This new substation would
cut the feeder length by half, and will be constructed in the load center
of Sablayan-Calintaan and Rizal area, reducing opportunity loss in
sales and providing relief to the Power Barge 109 that is severely
affected by the siltation in the mooring site down south in San Jose.
Pagasa Substation would serve the needs of Sta Cruz and upland
areas of Sablayan while waiting for the development of mining
communities in Sablayan in the next three years.
b) Conversion to three (3) phase primary lines – The project aims to
provide balanced loading in affected feeders and substations where
extreme unbalance are experienced.
c) Reconductoring of Backbone Lines to #4/0 acsr – The project aims to
provide flexibility in the source substation for the backbone feeding the
municipalities of Sablayan, Calintaan and Rizal, in the south and Sta
Cruz far north.
18
iii. Service Expansion
a) Line Expansion to Brgy Tubili, Paluan – This project calls for the
construction of 4.25 kilometers 3-phase primary and 4.25 kilometers
secondary underbuilt in the off-grid barangay served by the
Municipality of Paluan.
b) Line Expansion to Sitios – The project requires construction of 59.16
kilometers of 1-phase primary, 10.8 kilometers insulated secondary
and 55.39 secondary under-built lines to benefit 1,549 households in
43 sitios from 2009-2014.
iv. Other Distribution Projects
a) Double Circuit Distribution Tie-Line from San Jose Switchyard to NPCMagbay Substation – This project is required to enable OMECO the
use of the new 25 MVA NPC substation to be completed at Magbay by
the end of 2009. The lines will use the existing right of way of the
present distribution line, with the new set of 3-phase #336.4 MCM acsr
as over-built tie line to the OMECO dispatch switching station. Poles
will be replaced with higher ones. Eventually the exixting set of
conductors will form two dedicated feeders for Murtha-Batasan and
Magbay-Magsaysay-Labangan Poblacion, with flexible contingency for
any outage in PB 106 in Caminawit.
b) Equipment and Logistic Build-up - The project will provide improved
responses to customer needs. Components of this item are line
vehicles, test equipment, line tools, and web server to serve the
information needs in the whole franchise.
B) Other Non-Distribution Projects
i.
Financing for NPC Restructured Power Accounts – OMECO has to
source a loan amounting to P221.932 Million in order to pay the full
principal of its restructured power accounts with NPC-SPUG. It is eyeing
on NEA or other institutions for lesser interest charges, ten (10) years
repayment with grace period of 5 years in order to sustain its operation.
ii. Information Computerization and Telecommunications Program – This
project entails the improvement in the Electronic Billing System with
Cashiering and Remote Tellering plus the software requirement to enable
the cooperative to create its own IT unit.
C) Summary of Investment Requirements
Table 19
19
D) Justification of Proposed Projects
i.
Expansion – The project is in compliance to the mandate of 100%
Energization of the Philippines. Electrification in rural areas
will help spur the economic development and provide basic
comforts in daily living.
ii. Rehab/Upgrading of Distribution Lines – This project will contribute in the
reduction of system loss and increase the reliability of
electric services while improving the power quality.
Reconductoring of primary lines to #4/0 acsr as well as the
construction of the double-circuit tie-line will also provide
flexibility in substation loading and help in alleviating the
supply problems foreseen from the derating of the major
source: the NPC-SPUG’s PB106 due to siltation.
Clustering of KWH Meters will reduce the non-technical
losses while the Transformer Load Management is
intended to reduce the technical load-losses through use of
efficient amorphous core transformers and prevent high
maintenance costs from transformer blow-off.
iii. Add-Ons – The project will enable OMECO to connect more households in a
more rapid pace. This will translate to increase in revenue
and increase the return-on- assets.
iv. Substation – The construction of New 5MVA substation in Mompong,
Sablayan will solve the perennial problem caused by the
major river washing –out the feeder for Sablayan
Poblacion. Historically, the interruption accumulates to a
period of a month during rainy season. The location of the
substation will also substantially cut the length of the
feeder, thus reducing the line losses, and will help alleviate
the supply problem in San Jose with the opportunity to
load-shift Calintaan and Rizal. The project is principally
desired to increase the reliability and prevent opportunity
loss on sales.
v. Logistics - The project is desired to improve the customer services.
Additional line tools, test equipments and line vehicles will
capacitate the area engineering strategy of OMECO.
Responses to customer calls will be shortened a third of
the time previously required and the web server for
engineering database will enhance the pro-action of the
technical staff.
vi. Substation Lot, substation control house and take-off structures,
materials for rewinding of transformers - The substation
related items are justified in iv. Substation above.
Rewinding of distribution transformers in the OMECO shop
will reduce the expenses in buying transformers without
sacrificing the losses.
vii. General Account – The project will help reduce the non-power cost through
the development of Automated Billing, Tellering and
Cashiering capability with parallel focus in the development
of OMECO’s ICT capability.
E) Project Benefits and Impact
20
i.
Tangible Benefits
a) Improvement of Reliability by 20% from flexibility in load-shifting
b) Annual reduction of system loss by 1%
c) Maintenance of power quality to acceptable standards
d) Increase in MWh sales by and Revenue by an average of 8.5%
ii. Intangible Benefits
a) Reduction of carbon gases from fuel lamps
b) Reduction of carbon emissions from reduction of system losses
c) Improvement in corporate image
d) Customer’s satisfaction
F) Options/Alternatives Considered
There is no alternative option for this project which is proposed to relieve
OMECO of recurrent relocation works in the feeder of Sablayan.
A Major section of the said feeder traversed the very unpredictable Viga
river range that always wash-out the electrical structures at least twice each
rainy season since year 2004. The said problem cost OMECO several
millions.
Considering to construct a new feeder would require about 30 kms of work
over steep rocky mountain range through Sablayan Penal Colony. This
scheme would practically severe the system loss in the area and would
proved very costly.
21
III.Five-Year Historical and Forecast Planning Data
A) Electrification Level
Table 20 below shows the historical and forecast planning data of OMECO. It
could be gleaned that the Barangay Electrification Level is at 99% in 2008 from
89% in 2004. The household electrification level is 40% to 39% in the respective
years but had risen to 48% in 2006, statistically indicating significant increase in
potential households.
Table 20
100% Barangay Electrification Rate is expected to come in 2009 while the
Household electrification level is expected to grow from 51% in 2009 to 60% in
2014.
B) Energy Requirement
Table 21 below shows the energy requirement of OMECO.
Table 21
22
The energy purchased by OMECO rose from 43,279 MWh in 2004 to 55,002
MWh in 2008. In 2009 it is expected to be 59,108 MWh and will rise to 84,646
MWh in 2014.
C) Infrastructure Requirement
It could be gleaned in Table 22 below that there is no Rehabilitation of
Distribution Lines and Reactive Power Compensation projects. This is not the
case. It is only reflected that way because the projects are entered in the GCP
Technical and in the Line Materials for Upgrading modules that are not linked
with the DDP’s physical targets. The said projects are reflected only as costs in
the capital investment requirements as cost of Electrification projects.
Table 22
23
IV.
Technical Analysis
A) Key Historical Status Data
The key historical status data for OMECO is reflected below in Table 23. The
averaged growth for each customer class, i.e., energy sales, number of
customers and averaged monthly consumption per customer could be found in
the left-most column opposite each category.
Table 23
The Total Energy Sales grows by 5.5% and the Total Energy Consumption
including the cooperative’s self-use and energy recovery increased by 5.4%. The
Energy Losses expressed in percentage simulates an inverted parabola with the
minimum in the vicinity of 16%-17% and the central peak at 20%. The Energy
Purchases increased by 5.5% with the Maximum Demand flat in 11 MW -12 MW.
B) Load Forecast (SALF)
From Table 24 below, The Total Energy Consumption will increase from 48,645
MWh in 2009 to 105,151 MWh in 2018. Similarly Energy Purchases would be
from 57,676 MWh to 118,490 MWh with the System Losses being targeted to be
from 15.7% to 11.3% in the same period.
Table 24
24
The Load Factor is anticipated to be flat at 51% with the Maximum Demand
annually increasing from 7.6% to 9.9% from 2009 to 2018.
C) Technical Project Benefits
Table 25
Table 25 above shows the impact of the technical projects in terms of Energy
Sales, Energy Losses and Customer Connections. The System Loss is slightly
different from the previous discussion because the Internal Use of OMECO is not
considered.
25
V. Financial and Economic Analysis
A) Projected Financial Highlights and Ratios
Table 26 gives the projected financial highlights from 2009 to 2013. It could be
seen that the Total Operating Revenue would be P393.550M in 2009 eventually
increasing to P581.025M in 2013. The Operating Margin is P4.859M and
P90.852M, with the Net Operating Margin (P19.043M) and P40.178M in the
respective years. The Non-power Cost would improve from 18% in 2009 to 13%
in 2013.
Table 26
Projected Financial Highlights
Similarly, Table 27 below gives the projected financial performance in NEA
Standard Ratios.
Table 27
B) Projected Financial Statements
The effect of the loan intended to pay the Power Arrearages with NPC-SPUG, at
10% interest and 10 years repayment period with 5 years grace period is shown
in the summarized cash flow statement in Table 28.
Table 28
26
i. Revenue
The Gross Operating Revenue is projected at P393.255M in 2009 and would
increase to P588.024M in 2013 as shown in Table 26. It could be seen that
the Total Operating Revenue would be P393.550M in 2009 eventually
increasing to P581.025M in 2013.
ii. Profitability
Referring to the Key Performance Indicators in Table 27, the Net Margin is
projected to improve from -3.94% to 8.28%, respectively in 2009 and 2013.
The Return on Assets is ranging to -6.53 and 3.65 for the respective years.
iii. Liquidity
The Liquidity expressed through current ratio is 1.75 in 2009, 2.15 in 2010,
2.62 in 2011, 3.19 in 2012 and 3.85 in 2013.
Table 29
Financial Ratios
iv. Debt Service Cover
Referring to the same Table 29, the Debt Service Coverage could be seen
improving from -1.06, to 1.35, 1.38, 1.51 and 1.61 from 2009 through 2013.
v. Leverage
Referring to Table 29 above, the Ratio of Total Long Term Debt to Total
Assets expressed in percentage is 80.15, 78.83, 76.93, 73.70, and 138.70
also in 2009 through 2013.
vi. Tariff
It is assumed that tariff increases for Capex (Reinvestment Fund) amounting
to P0.2297/KWh and Distribution Charge equivalent to P0.42/KWh will be
approved by ERC in 2009.
27
C) Impact on Rate Base of the Proposed Projects
The impact on rate base of the proposed projects is summarized below in Table
30.
Table 30
D) Cost-Benefit Analysis
The cost-benefit analysis, exclusively for the Technical Projects is shown Table
31.
Table 31
It could be observed that the benefits of the projects would be realized starting in
year 2010 but would eventually tend to equalize the costs in the subsequent
years.
E) Sensitivity Analysis
i. Minimum Tariff Increase Requirements
This study assumes a minimum tariff increase amounting to P0.6497/KWh,
broken down as P0.2297/KWh for Capex (Reinvestment Charge) and to
P0.4200/KWh for Distribution Charge.
ii. Minimum System Loss Reduction
The forecast targets a minimum system loss reduction of 1% annually.
iii. Minimum Demand Growth
Similarly, the model suggests a minimum demand growth of 7.6%
28
VI.
Conceptual Engineering Design
A. 5 MVA Substation Project.
Technical Specifications and Drawings
I. POWER TRANSFORMER
5/6.25 MVA Power Transformer, 69 KV Delta high voltage rating / 13.2 KV
Wye low voltage rating, liquid filled transformer, conservator type
construction; Provisions for jacking, skidding, lifting; Diagrammatic nameplate;
Steel ground pads welded to base, Manhole w/ gasketed cover, De-energized
tap changer, Panel-type radiators, Cooling fans for forced-air cooling by
tatung, Brand New.
Cooling Class
No. phases
Phase Sequence
Taps
%
BIL HV
BIL LV
Bushing mounting Primary
Bushing mounting Secondary
Standard
Radiators
Coil type
Winding temp rise
Dielectric Fluid
Conductor materials
Impedance
No-load loss
Load loss
tolerance
Noise
OA/FA
Three (3)
60 Hz
2 FCAN, 2 FCBN @ 2.5 tap percent
350 KV
150 KV
Cover mounted HV
Cover mounted LV
ANSI C57.12
Demountable
Disc Circ. IIV
65 deg C avg.
Fluid Mineral dielectric fluid ASTM
Copper
7.50%
6.5 KW at 85 deg C
34 KW at 85 deg C w/ ANSI
65 dB
II. 69 KV PRIMARY SIDE (HV)
1. SURGE ARRESTERS
Type AZES Station Class, Gapless type, manufactured in accordance to
ANSI/IEEE Standards C62.11. Brand New
System Voltage
60 KV
MCOV
48 KV
System Frequency
50/60 Hz
Impulse Classifying Current
10 KA
High Current Withstand
100 KA
Fornt-of-Wave Protective Level
179 KV
2. DISCONNECT SWITCH (ABS)
Three-pole center break, for outdoor use according to VDE/IEC standards
(latest edition), 72.5 KV, 6000n min. breaking strength w/o earthing switch,
Brand New
Type
Rated voltage
Rated Frequency
Rated Nominal current
D300-071231M/N
72.5 KV
60 Hz
1250 A
29
Rated short time current
31.5 KA
Rated short circuit current
80 KA
Rated duration of short circuit 3 s
Rated lightning impulse withstand voltage (BIL)
..to earth between poles
325 KV
..across open switching device 375 KV
Rated power frequency withstand voltage
..to earth between poles
140 KV
..across open switching device 160 KV
Ambient air temperature range
-40 to +50 deg C
Altitude above sea level
up to 1000 m
Arrangement of disconnector poles side by side
Phase center distance
1350 mm
Permissible ice load
up to 10 mm
Seismic capacity
up to 0.3 g
Permission wind load stressing
up to 900 N/m2
INSULATOR
Height
770 mm
Creepage distance
1820 mm
Min breaking strength
6000 N
Nominal tensile strength of terminals, horizontal
….. static
1000 N
….. static and dynamic
3000 N
Colors of insulators
brown
Without joint sealing
DISCONNECTOR DRIVE:
Manual drive, three pole group operated
Type HA30 with rocking lever
Drive mounted at pole C outside
Drive lowered down around 500 mm, without fixing console
Protection class
IP 55
Control voltage
125 V DC
Anti condensation heater voltage
240 50 Hz
….. power consumption
18 W
Manual drive with ant-condensation heater (continuous operation) w/o
fuse
Manual drive with locking coil
..detachable cable entry plate without holes
..No. of free auxiliary contacts
8NO
8 NC
1 wiping cont.
GENERAL EQUIPMENT:
Horizontal mounting
High voltage terminal plate (AL) according to NEMA,
Corresponding to enclosed dimension sheet.
The main contacts are maintenance free
Nameplate in English
SURFACE PROTECTION
Steel parts hot dip galvanized acc to DIN 50976
No top coating (for normal service conditions acc to IEC 60694 chap 2.1)
All connecting parts made of A2-materials.
Motor drive aluminum housing
3. POTENTIAL TRANSFORMER
30
69 KV, Voltage Transformer type UKE 82/2, 40250:115V, 0.3 WXY, dry
typr resin insulated, Brand New
Type
UKE-82/2
Standard
IEEE C57.13-1993
Ratio
120:01
Accuracy
0.3 WXY
Highest system voltage
72.5 KV
Power Frequency withstand volt. Primary – Ground (1min) 3 KV
Power Frequency withstand volt. Secondary - Ground (1min) 3 KV
Induced Voltage
140 KV
Lightning Impulse withstand voltage (1.2/50uS) 350 KV
Withstand voltage for operation at altitude up to 1000 m
Frequency
60 Hz
Dry Type insulation
Yes
Insulator made of porcelain color
brown
Arcing distance (+/-1%)
727 mm
Creepage distance (+/-3.5%)
2060 mm
Protected distance (+/-3.5%)
-----Primary terminal made of
Copper Alloy
ACCESSORIES INCLUDED IN OFFER
Secondary terminal box
Yes
Rating plate
Yes
Earthing connector
Yes
TESTS
Routine test following above standards Yes
SITE CONDITIONS
Ambient Temperatures(min/daily average/max)
Wind Velocity
N/A
Seismis Conditions
N/A
PRIMARY
Voltage Factors
Thermal burden
-10/+30/+40 C deg
1.2 CONT
1.5 30 SEG
1 VA
4. CURRENT TRANSFORMER
69 KV, Current Transformer, 100X150X200:5, 0.3 BO.1-BO.5, dry type
resin insulated, Brand New
Standard
Ratio
Accuracy
IEEE C57.13-1993
100/150/200:5
0.2 BO.1-BO.5
C100 Protection core
Highest system voltage
72.5 KV eff
Power frequency withstand volt. Primary – Ground (1min)
175 KV eff
Lightning Impulse withstand voltage (1.2/50 uS)
350KV cr
Withstand voltage for operation at altitude up to
1000 m
Frequency
60 Hz
Dry Type insulation
YES
Insulator made of Cycloaliphatic Resin Gray color
YES
Creepage distance (+/-3.5%)
Primary terminal made of
…. Diameter of terminal
…. Length of terminal
1812 mm
Copper Alloy
30 mm
122.5 mm
31
5. DIFFERENTIAL RELAY
Transformer Differential Relay, iXP-420, Brand New
Protective Functions:
Two levels of over-excitation (V/Hz) protection (24)
Under – and over-voltage (27/59)
Fuse-fail detection (27/FF)
Phase over current (5051) for each winding
Residual over current for each winding (50R/51R)
Ground over current with separate CT input for low side winding
(50N/51N)
Negative-sequence over current (50Q/51Q) for each winding
Breaker fail-to-trip and fail-to-close for both breakers
Sequence over voltage (59P,59Q,59N) and positive sequence under
voltage (27P)
Multiple-step over/under frequency elements with voltage and current
supervision (81)
Differential protection element (87-2) for fast response to large magnitude
internal faults
Adjustable 2nd and 5th harmonic restraint on the main differential element
Restricted earth fault (87N)
Highlights
Add new functions and features using IDEA Workbench Custom Modules
Selectable transformer winding configuration
Multi-feeder frequency load shedding and restoration logic
Selective tripping of both high and low side breakers
Breaker health monitoring for both controlled breakers
Trip coil monitoring (and close coil monitoring on the ideaPLUS hardware
version)
Virtual Teat Set event record simulator
Relay Replay : The “what-if” analysis tool
Interactive oscillography and Sequence of Events Recording
Amps, Volts, Watts and VAR Metering
Demand and Energy Metering
Eight Setting groups
Programmable front panel pushbuttons and targets
Programmable LCD test messages
6. CIRCUIT BREAKER
SF6 Circuit Breaker, 7.2 KV, Live Tank, Type GL309F1/3120, 2000 A, 25
KA, 3 pole, 125 V dc control, complete with 5 kg SF6 gas sufficient for the
first filling. Brand New
Rated Max. Voltage
Frequency
Continuous current
72.5 KV
60 Hz
2000 A
Short Circuit Current
Duration of short circuit
Rated break time
Ambient temperature range
25 KA
3s
60 ms
-30 to +40 deg C
32
Altitude above sea level
up to 1000 M
Features of the circuit breaker:
Suitable for three phase auto reclosing
Creepage distance: 1815 mm
Color of porcelains : brown (RAL 8016)
Protection class IP 54
Phase center distance: 1050mm
Six Al high voltage terminal pads, drilled according to NEMA
Suitable for erection on steel supports
Circuit Breaker poles will be delivered with 0.02-0.05 Mpa SF6 pressure
SF6 density monitor with two-step signaling and visible temperaturecompensated pressure reading with Mpa/bar scale
Overpressure relief device per pole
Nameplate in English
Features of the spring operating mechanism
Operating voltage of auxiliary circuits:
125 Vdc
Universal motor for operating mechanism: 125Vdc
Alternating current circuit (heating): 230 Vac
Operating range of coils:
trip 70-110%,close 85-110%
With mechanical operation counter not resettable
Anti-pumping device
Anti-condensation heater, permanently operated
Two independent trip coils, one closing coil
Mechanically coupled auxiliary switch with 12 NC, 12 NO and 1 wiping
contact free
Local mechanical and local electrical C/O operation with local/remote
selector switch
With motor protection by MCB
Wiring 1.r mm2, stranded wire with ferrules
Glanding plate
Terminal strip Phoenix UK5N with 10 mm2 earthing terminal
Door of housing with provisions for padlocks
Surface protection:
Aluminum alloy parts will not be painted
Ferrous parts are hot-dip galvanized
Flanges of insulators are anodized
Aluminum sheets of operating mechanism with top coating (RAL 7044)
7. PRIMARY SECONDARY SIDE
Design alteration shall be discussed before the implementation prior to
awarding of projects
III. 15 KV SECONDARY SIDE (LV)
1. OUTDOOR CIRCUIT BREAKER
NOVA Oil-free, SF6 Gas Free, Maintenance Free Recloser, 3 Phase,
Vacuum Axial-Magnetic Type Interrupter, Solid Dielectric (cycloalipathic
epoxy) insulation, encapsulated, complete with form 6 recloser control,
Brand New.
Maximum Voltage
Rated BIL
Radio Noise Limit (uV)
Power Frequency Withstand, Dry
Power Frequency Withstand, Wet
Rated Continuous Current
Short Circuit Current, symmetrical
15.5 KV
110 KV
100@9.4 KV
50 KV
45 KV
630 A
12.5 KA
33
Making Current, Asymmetrical Peak 31.0 KA
Making Current, Asymmetrical RMS 20.0 KA
Form 6 control
Protective Functions:
Inverse/Definite Time Overcurrent 51N-P/50N-P
….. High Current Trip
….. High Current Lockout
….. Minimum Response Time
….. Time Adder
….. Time Multiplier
….. Low Set
Sensitive Earth Fault 50N+
Under/Over Voltage 27/59
1 and 3 phase tripping, pick up setting w/ time delay setting ranging from 0 to
100 seconds
Under/Over Frequency 81
1 and 3 phase tripping, pick up setting w/ time delay settings ranging from 0
to 100 seconds
Directional Overcurrent 67N-P
Sync Check 25
….. Hot Line/Hot Bus Closing
….. Dead Line/Hot Bus Closing
….. Hot Line/Dead Bus Closing
….. Dead Line/Dead Bus Closing
Note: Sync Check Parameters include the following configurable settings:
….. Voltage Angle
….. Mechanism Operating delay
….. Dead Threshold
….. Live Threshold
….. Positive Sequence Dead Threshold
….. Upper Voltage Limit
….. Lower Voltage Limit
….. Lower Frequency Limit
….. Upper Frequency Limit
….. Fail to Close Timer
Reclosing & Lockout 79/86
Local Breaker Backup 50 BF
Cold Load Pickup
Quick fault Locator Area location and identification
Four Protection Profile (normal, Alt Prof 1, Alt Prof 2, Alt Prof 3)
50+ Time Current Curves
Define Curve per Operation
Block Phase, Ground or Negative Sequence Trip
Separate Operation to Lockout for Phase, Ground, CLPU and SEF
Metering Functions:
Power-Real, Reactive, Apparent, Power Factor
….. Real (KW)
….. Reactive (KVAR)
….. Apparent (KVA)
….. Power Factor
Over/Under Frequency (Hz)
Energy
Symmetrical Components
Harmonic through the 15th
Total Harmonic Distortion (THD), True RMS
Demand
Peak Demand
IDEA WORKBENCH
34
Fully Configurable I/O
Allows user to become relay design engineer with use of Boolean Logic Tools
and Control inputs
Fully customizable protection schemes and I/O
2. DISTRIBUTION TRANSFORMER
Station Service Transformer, conventional, pole type, 10 KVA, 7620/13200Y
volts Primary, 120/240 volts secondary, 60 Hz, single phase, 2-HV bushing,
3-LV terminals with 2-2.5% taps below and above normal operating voltage,
95 KV BIL primary, 30 KV BIL secondary, 65 deg C temp. rise, mineral oil
fluid, ISO 9001 certified, Brand New
3. FUSE CUT-OUT
Fuse cut-out, Type L, 15 KV, 100 Amperes, open, distribution class,
interchangeable, with NEMA crossarm bracket, Brand New
4. SURGE ARRESTER
Varistar Polymer Type, 10 KV, normal duty, distribution class, MOV, complete
with tin plated bronze parallel-groove connector and NEMA crossarm
mounting bracket, Brand New
5. BATTERY
Maintenance Free Batteries
Model
Nominal Voltage
Nominal Capacity
Dimension in mm
Design Life
•
Dj100
2 volts/Block
100Ah @ 8 hr discharge rate
L170xW72xH212
6 years under normal operating
Condition
Customized Battery Rack included
6. BATTERY CHARGER
Automated Float Battery Charger
Input
Output Voltage
Normal Charging
Capacity
230 VAC/60 Hz/1 phase
125 VDC
20 Amps
3 KVA
Features:
Automatic float service charger with cut-off @ vpc and cut-in @ 2.16 vpc
Utilized industrial magnetic contactor for control and overload relay for
protection
With direct reading DC current meter and DC voltmeter
Full wave rectification for minimal ripple
Fully-isolated power transformer rated at 100% duty cycle
Floor mounted enclosure with cooling fan
7. SECONDARY 15 KV SIDE STRUCTURES
Design alteration shall be discussed before implementation prior to awarding
of project.
IV. INSTALLATION WORKS (ELECTRICAL & CIVIL)
INCLUDING CONNECTORS, CABLE, INSULATORS & GROUNDING
•
All equipment and accessories shall be delivered on site
35
•
•
•
•
•
•
•
•
•
•
•
•
Civil works, site development and perimeter & Fencing
Mounting and installation of 5 MVA Transformer
Mounting and installation of structures for substation equipments &
accessories
Mounting and installation of 69 KV livetank circuit breaker and
accessories including SF^ gas filling
Mounting and installation of metering & protection equipment for
primary side (69 KV)
Mounting and installation of metering & protection equipment for
secondary side (15 KV)
Installation of insulators, Wires & Cables necessary for all equipment
Assembly, positioning and wiring of all equipment
Installation of control cables
Installation of grounding system and grounding for all equipment
Basic programming & setting for all control, relays amd other electronic
devices
Testing and commissioning
36
37
38
39
40
B. Meter Cluster Box
41
42
VII. Project Cost Estimates
Table 32 below shows the project cost estimates listed by category
Table 32
43
VIII. Project Financing Plan
A) Financing Requirement
1) Expansion to Barangays – to be financed through the subsidy grant from the
Department of Energy
2009 P 3.757M
2) Expansion to Sitios – to be financed through Congressional Development
Initiative Fund and Department of Energy as subsidy
grant
2009 P 13.488M
2010 P 5.610M
2011 P 3.850M
2012 P 2.554M
2013 P 3.508M
2014 P 3.273M
3)
Expansion
2009
2010
2011
2012
2013
2014
(Connections) - to be financed through Congressional
Development Initiative Fund and Department of
Energy as subsidy grant
P 0.804M
P 0.222M
P 0.250M
P 0.152M
P 0.247M
P 0.093M
4) Add-Ons - to be financed through loans from NEA-ADB
2009 P 3.510M
2010 P 3.663M
2011 P 3.976M
2012 P 4.318M
2013 P 4.694M
2014 P 5.107M
5) Rehabilitation/Upgrading of Distribution Lines – to be financed through loans
from NEA-ADB
2009 P 68.728M
2010 P 47.505M
2011 P 52.755M
2012 P 36.357M
2013 P 40.216M
2014 P 16.717M
6) Substation - to be financed through loans from NEA-ADB
2009 P 18.000M
7) Substation Lot, Equipment and Related Structures, ICT - to be financed
through loans from NEA-ADB and/or CIAC
2009 P 8.367M
B) Sources of Funds
i. CIAC
CIAC includes reinvestment charges imbedded in the tariff rates (5% of Rate),
and/or subsidy grants form government agencies, foreign aid, etc.
44
ii. NEA
The NEA as implementor of government projects may grant funds as subsidy
or loans with 9% interest rates, of varying repayment periods and sometimes
with grace period for principal payments.
iii. Commercial Banks
Commercial banks may provide loans carrying interest rates ranging from
12% to 16% depending on the time of approval, at varying repayment periods
and other special terms.
45
IX.
Implementation Plan/Gantt Charts
(Please turn to the Annexes)
46
X. Risks/Threats
A) Technical Risk
The technical risk arises from the assumptions of the sales and revenue
parameters, including the supply-demand hurdles in the plan.
B) Business/Industry Risk
The business/industry risk arises from the regulations in the very competitive
nature of the electric power industry and the non-stock, non-profit operation
called for by its charter under PD 269 that mandates the total electrification in an
area coverage basis.
C) Credit Risk
The carrying amount of the member-consumer and other receivables represent
the cooperative’s maximum exposure to credit risk. No other financial assets
carry a significant exposure to credit risk. OMECO has no significant
concentration of credit risk with any single member-consumer on an on-going
basis. It is the cooperative’s policy that all member consumers are subjected to
credit verification procedures to identify accounts to be disconnected to minimize
uncollected accounts.
D) Liquidity Risk
Liquidity risk arises from the possibility that OMECO may encounter difficulties in
collecting consumer’s accounts and in raising funds to meet various
commitments. Its objective is to maintain a balance between continuity of funding
and flexibility through the use of loans.
These limitations make the cooperative’s operation highly dependent on
supplier’s credit primarily for power supply, and on government funding support
for capital expenditures by way on loans, subsidy grants, etc.
E) Management Risk
The cooperative’s ability to secure a fully responsive tariff through the cash-flow
rate methodology prescribed for all electric cooperatives and the flexibility to
source out advantageous power supply contracts form the extent of the
management risk in OMECO.
47
XI.
Conclusion/Recommendation
This study has determined that the Technical Projects being proposed are worthy to
be implemented. The projects would strengthen the liquidity of operation near the
third year of the forecast period. Deferred amortization payments could be gained
from retained earnings of the previous years.
The loans contemplated for easier restructuring of arrearages with the NPC-SPUG
may help ease the financial turmoil, and the increase in revenue from larger volume
of sales in the forthcoming years, in combination with the opportunity for timely
approval of more responsive rates could assure OMECO of its desired financial and
operational stability.
It is therefore recommended to execute all the projects as planned, while paying
extra focus on rate management.
48