Decision 2015-213+RC COTELCO

Approved for
Republic of the Philippines

ENERGY REGULATORY COMM!
:Postiin
Www1ercgov..i
San Miguel Avenue, Pasig City
IN THE MAflER OF
THE APPLICATION FOR
APPROVAL OF THE MULTI-YEAR
CAPITAL EXPENDITURE
PROJECTS (2014-2016), WITH
PRAYER FOR AUTHORITY TO
SECURE LOANS AND
PROVISIONAL AUTHORITY,
ERC CASENO. 2015-213 RC

COTABATO ELECTRIC
COOPERATiVE, INC. (COTELCO),
for and in behalf of the COTELCO-
PPALMA Business Unit, DOCKETED
Date: DEC 1 32017
Applicant.
x-------------------------- 71
Br ::.cc
DECISION
Before this Commission for resolution is the Application filed

on 18 December 2015 by Cotabato Electric Cooperative, Inc.
(COTELCO), acting for and in behalf of the COTELCO-PPALMA
Business. Unit seeking the Commission's approval of its multi-year
Capital Expenditure (CAPEX) Projects, for years 2014 to 2016, with
prayer for authority to secure loans and for the issuance of
provisional authority.
In its Application, COTELCO alleged, among others, the

following:
1. COTELCO is a non-stock, non-profit electric cooperative, organized

and existing under the laws of the Philippines, with principal office
at Manubuan, Matalam, Province of Cotabato. COTELCO was
granted a franchise by the National Electrification Commission
(NEC) to operate an electric light and power distribution service in
the province of Cotabato, particularly in the City of Kidapawan and
Municipalities of Makilala, Kabacan, Carmen, Mlang, Tulunan,
Matalam, President Roxas, Magpet, Antipas, Arakan, and Banisilan,
under Certificate of Franchise No. 204.
ERC CASE NO. 2015-213 RC
DECISION/ 22 AUGUST 2017
PAGE 2 OF 29
2. COTELCO applied for a franchise with the NEC over the following
Municipalities: a) Pigkawayan; b) Libungan; c) Midsayap; d)
Alamada; e) Aleosan; and fi Pikit, all in the Province of Cotabato.
The NEC, as affirmed with finality by the Court of Appeals (CA),
granted said Application of COTELCO. A copy of the CA Decision
and Entry of Judgment are attached to the Application as Annexes
"A" and "B", respectively.
The COTELCO— PPALMA Area was created as a separate business

unit within the COTELCO franchise under COTELCO Board
Resolution No. 57-2012. Thus, COTELCO functions as two (2)
business units, namely: COTELCO Main Business Unit and
COTELCO-PPALMA Area Business Unit (COTELCO-PPALMA). The
said Board Resolution was approved by the National Electrification
Administration (NEA) as stated in its 29 October 2012 letter to the
Board of Directors of COTELCO. Copies of the Board Resolution
and NEA's letter are attached to the Application as Annexes "C"
and "D", respectively.
NATURE OF THE APPLICATION
4. The instant Application was filed pursuant to ERC's Rules of

Practice and Procedure and other relevant rules and regiilations.
COMPLIANCE WITH THE

PilE-FILING REQUIREMENTS
. COTELCO furnished the respective legislative bodies of the local

government units where COTELCO-Main and COTELCO-PPALMA
principally operate with copies of the Application, including all its
annexes and accompanying documents. Proofs of service to the
Sangguniang Panlalawigan of Cotabato Province and the
Sangguniang Bayan of the Municipalities of Matalam and Midsayap
are attached as Annexes "E", "E-i", and "E-2" of the Application.
6. COTELCO also published the Application without its annexes in a

newspaper of general circulation within its franchise area. Copies of
the Affidavit of Publication and the Newspaper where the
Application was published are attached to the Application as
Annexes "F" and "F-i", respectively.
STATEMENT OF FACTS
7. The COTELCO-PPALMA's Multi-Year Capital Expenditure

(CAPEX) Projects are divided into Network and Non-network
Projects, as follows:
CAPITAL EXPENDH'URE PROJECTS (2014-2016)
YEAR OF IMPLEMENTATION TOTAL COST

PROJECI i2014 I 2015 I 2016
Substation
I Upgrading of Protection of I I I
I Villarica Substation I I 1 8,773, 000 .00 I 18,773,000.00
Primary Line
PAGE 3 OF 29
Refurbishment of Distribution
2
- Line 24,458,451.00 24,458,451.00
Replacement of Overloaded
Distribution Transformers
along the Feeders of Gumaga
- and VillaricaSubstations 8,903,834.10 2,896,377.75 11,800,211.85
Reconductoring of 1.04
kilometer Midsayap Feeder
primary line from 2/0 ACSR to
- 336 ACSR 7,759,590.61 7,759,590.61
Construction of 3.31 km
Double Circuit Line for F33
5 using 336 ACSR conductor
and Transfer/Splitting of
Loads 13,811,381.00 13,811,381.00
Installation of capacitors along
6
- feeders with undervoltage 596,750.00 596,750.00
Replacement of Defective
Meters 22,400,000.00 22,400,000.00
Other Network
New Connections (Service
8 Drop and Metering
Requirements) 4,323,343.60 33,519,578.40 33,297,697.20 71,140,619.20
Secondary Distribution
9 Transformer New Customer
- Connections Project 8,209,320.84 4,560,826.41 12,770 2 147.25
10 Additional Secondary Line 4,379,844.72 4,379,844.72 8,759,689.44
Non-Network
Lot Purchase and Construction
ii of Office Building and
- Warehouse 15,000,000.00 22,890,038.45 37,890,038.45
Utility Billing Management
12 System (Hardware, Software
and Support) 8,394,568.00 6,500,000.00 ________________ 14,894,568.00
Acquisition of Engineering
13 Simulation Software 2,700,000.00 2,700,000.00
Acquisition of
Accounting/MSD/Payroll
14 Software(Inclusive of Source
Code) 80 00.00 5,807,500.00
Wide Area Network
15 38,000,000.00 _______________ 38,000,000.00
Infrastructure
Acquisition of Test and
15 3,650,000.00 8,830,000.00 12,480,000.00
- Laboratory Equipment
Acquisition of Tools and
1
Equipments
364,750.00 364,750.00 729,500.00
Installation of Site Equipment

iS Identification and Data
Gathering
2,649,600.00 5,929,600.00 8,579,200.00.
Purchase of Service and Heavy
19 Equipment Maintenance
Vehicle 7,730,000.00 15,400,000.00 23 2 130 2 000.00.
TOTAL 12,717,911.60 188,405,469.67 135,357,265.53 336,480,646.80
8. The above-enumerated CAPEX Projects are optimal solutions to

improve the safety, quality, and reliability of power, as well as
reduce system loss in the COTELCO-PPALMA area.
9. COTELCO-PPALMA's Distribution System Map, Customer Profile,

Historical and Forecast Planning Data, System Performance
PAGE 4 OF 29
Assessment, Project Cost Estimates, Project Financing Plan,
Conceptual Engineering Designs and Drawings, Economic and
Technical Analysis, and justifications for each project are discussed
in detail in COTELCO-PPALMA's CAPEX Plan (Annex "G" of the
Application).
10. The estimated CAPEX for years 2014 to 2016, exclusive of permit
fee, legal and consultancy fees, and capitalized interests, is Three-
Hundred Thirty-Six Million Four Hundred Eighty Thousand Six
Hundred Forty-Six Pesos and Eighty Centavos .4
(PhP336,48o,646.8o). The same will be financed through the
Reinvestment Fund for Sustainable Capital Expenditures (RFSC)
and loans obtained from the Development Bank of the Philippines
(DBP) and the National Electrification Administration (NRA),
details of which are summarized hereunder as follows:
Funding Project Cost (PhP) Total (PhP)

Source 2014 2015 2016
DBP - 175,451,554.11 125,455,094.40 300,906,648.51
NRA - 12,953,915.56 9,902,171.13 22,856,086.69
RFSC 12,717,911.60 - - 12 1 717,911.66
Grand 12,717,911.60 188,405,469.67 135,357,265.53 336,480,646.80
Total
ii. The DBP loan, which will earn an interest of six percent (6%) per
annum, will be payable in equal quarterly installments for ten (io)
years. While the NEA loan, which will earn an interest of eight
percent (8%), will be payable in equal quarterly installments for
fifteen (15) years. The details of the servicing are indicated in Annex
"AB" of the CAPEX Plan. 1
12. The implementation of all the proposed projects will have an G

average indicative additional revenue requirement on the RFSC rate
by PhPo.3633 per kWh, the details of which are indicated in Annex T.
"AC" of the CAPEX Plan.
13. The proposed CAPEX projects and the loans to finance the same
were already approved by COTELCO's Board of Directors.
ALLEGATIONS IN SUPPORT OF THE PRAYER

FOR AUTHORITY TO SECURE LOANS
AND FOR PROVISIONAL AUTHORITY
14. The proposed CAPEX Projects need to be immediately implemented 1-

as the existing distribution assets in COTELCO-PPALMA area 0i
require immediate improvement.
15. The following CAPEX Projects are deemed urgent: (a) replacement
of the fuses with a 69 kV circuit breaker; (b) replacement of 1o6
poles, 96 cross-arms, and 22.935 kilometer distribution lines; and
(c) reconductoring of the eight (8) kilometers three-phase backbone
line of Midsayap Feeder.
16. COTELCO-PPALMA has no sufficient financial resources to finance

9;
the said proposed CAPEX Projects.
PAGE 5 OF 29
17, The Authority to Secure Loans is necessary for the immediate

implementation of COTELCO-PPALMA's proposed CAPEX
Projects.
18. COTELCO, in behalf of its COTELCO-PPALMA Area Business Unit,

will secure loans from DBP and NEA in the amount of
PhP300,906,648.51 and PhP22,856, 086.59, respectively, in order
to implement the proposed CAPEX Projects.
PJ L4
19. COTELCO prays that the Commission grants provisional authority

to implement COTELCO-PPALMA's capital expenditure projects for
years 2014-2016 and authority to secure loans to finance said
projects.
Finding the said Application to be sufficient in form and in

substance with the required fees having been paid, an Order and a
Notice of Public Hearing, both dated 12 April 2016, were issued by
the Commission setting the Application for determination of
compliance with jurisdictional requirements, expository
presentation, Pre-trial Conference, and evidentiary hearing on 21
June 2016.
On 16 June 2016, Applicant filed its Pre-trial Brief.
During the 21 June 2016 hearing, only Applicant appeared.

No intervenor or oppositor appeared nor was there any
intervention or opposition registered.
At the said hearing, Applicant presented proofs of its

compliance with the Commission's jurisdictional requirements
marked as Exhibits "J" to "N", inclusive, as indicated in the
Commission's Order dated 12 April 2016.
Thereafter, Applicant conducted an expository presentation

of its Application. COTELCO presented under oath Engr. Joel V.
Tordesillas (Engr. Tordesillas), Technical Division Chief of
COTELCO-PPALMA Business Unit, who delivered the first part of
the expository presentation. For the second part, COTELCO
presented under oath Mr. Rovir Ian M. Golosino (Mr. Golosino),
the Corporate Planning Section Head of COTELCO-PPALMA
Business Unit. The Commission asked clarificatory questions and
the same were answered by the said presentors. On the basis of said
questions, Applicant made corrections on its presentation.
PAGE 6 OF 29
Thereafter, the expository presentation was terminated and the
Pre-trial Conference commenced.
In the course of the Pre-trial Conference, COTELCO made a

stipulation of facts on issues to be resolved as stated in its Pre-trial
Brief. Applicant moved to adopt the documents mentioned in its
Pre-trial Brief including its proposed markings. The same was
granted by the Commission. After which, the Pre-trial Conference
was concluded and the presentation of evidence commenced.
During the presentation of evidence, Applicant presented

Engr. Tordesillas and Mr. Golosino as witnesses who testified in
support of the Application. In the course of their direct
examination, additional documents were identified and were duly
marked as exhibits. Thereafter, the Commission directed the
submission of various documents.
On 09 August 2016, Applicant submitted its Compliance to

the Commission's directives given during the 21 June 2016 hearing.
Likewise, on even date, it submitted its Formal Offer of evidence
marked as Exhibits "A" to "5", inclusive. On 01 August 2017, the
Commission issued an Order admitting the exhibits contained in its
Formal Offer.
ISSUE
The issue to be resolved is whether or not the instant

Application should be approved by the Commission.
COMMISSION'S RULING
The Commission approves with modification the CAPEX

projects, subject to conditions.
DISCUSSION
I. OVERVIEW OF COTELCO's DISTRIBUTION SYSTEM
The distribution system of Cotabato Electric Cooperative -

PPALMA covers the 1st District of North Cotabato with
municipalities laid down from the mountainous terrain and a rice
and corn production center.
PAGE 7 OF 29
As of December 2013, COTELCO-PPALMA's distribution
lines had already accumulated almost 1,900 km of lines including
service drop wires. It has two (2) substations with a maximum
rating capacity of 25 MVA situated in the municipalities of
Midsayap and Libungan. Details of the distribution substation shall
be discussed in item III hereof.
The supply of power is presently being distributed through

five () feeders in the entire franchise area of COTELCO-PPALMA.
The figure below shows that COTELCO-PPALMA's distribution
lines comprise of 57% primary lines and 43% secondary lines.
System Line Configuration (km)

Single-Phase (56%)
1,045 Underbuilt (3%) • Triple-Circuit
48
• Double-Circuit
• Three-Phase
• Two-Phase
Two-Phase (2%) • Single-Phase
32.4
Open-Secondary • Underbuilt
Three-Phase (0%)
9.4
Double-Circuit (0%)
Triple-Circuit (0%)
04
(39%)
730
• Open-Secondary
0.4
As shown below, 88% of the connected customers are

residential, 9% are commercial customers, and the remaining 3%
are industrial, public building, street lights, and communal water
system (CWS).
Public 2013 Cust.r?righclass

s;
Building;
Indc4; o%
9% _____ o%
• Residential
Commercial
• Public
Building
Residential;
88%
The chart below indicates that majority of the cooperative's

revenue for the year 2013 came from the residential customers
representing 61% of the entire energy sales. Revenue from the
industrial and commercial customers respectively contributed 21%
DECISION! 22 AUGUST 2017
PAGE 8 OF 29
and 13% thereof, while the remaining 5% comprises the public
buildings, street lights, and CWS customers.
2013 Energy
Strt I idtc
Sales
• Residential
• Commercial
• Public Building
• Industrial
• Street Lights
• cws
61%
II. FORECASTING
In order to determine the optimal project for a particular

scenario, it is imperative to have an accurate forecast of the future
energy, future demand, and future customers of an electric
cooperative. This forecast will ensure that forecasted number of
customers, loads, and others are addressed accordingly.
There are two (2) methods of forecasting in order to predict or

best capture the future requirement of an electric utility. These are
the Econometric Analysis, which uses economic and demographic
information to forecast the load as an input and Trend Analysis,
which requires only historical data as an input. Comparing the
abovementioned methodologies, the Econometric Analysis
presents the most accurate for medium and long-term forecasting.
At present, however, Trend Analysis is the widely used method of
forecasting among the electric cooperatives which requires only
historical data as an input. This method of forecasting is best
suited for short-term (3 to 5 years) planning, which coherently
meets the criteria for the planning period under ERC Resolution
No. 26, Series of 20091 .
Under the Electric Cooperative's Distribution Utility Planning

Manual (ECDUPM), all forecasting models formulated must be
tested for validity and accuracy. Valid models should meet the
following criteria for each statistical value:
1 Resolution Amending the Rules for Approval of Regulated Entities' Capital Expenditure
Projects.
PAGE 9 OF 29
i) adjusted R2 should be at least 8o% for econometric

analysis or 99% for trend analysis;
2) p-value should be lower than 0.1; and
3) t-statistic should be greater than 2 or less than -2.
Accuracy of the model, likewise, should have a Mean Absolute

Percentage Error (MAPE) of less than 5%.
COTELCO-PPALMA simulated several forecasting models

using the abovementioned methods in order to produce accurate
forecast of its future energy, demand requirement, and future
customers. The table below shows the summary of the forecast that
passed all the criteria mentioned above and was used by COTELCO-
PPALMA in its distribution development planning.
Accuracy Annual Average

ValidityTests
Forecasting ___________ Test Growth Rate
Model Adj. K2 MAPE
t-stat Citi >2) p-value (<0.1) Historical Forecast
(>o.g/o.8) (<5%)
g 45.2580 2.37477E-05
Energy
Entire System
a + bt' + 0.9958 6 6.8861 0.00627359 2.01% 5.52%
Purchase clogt'
C 4.3343 0.02265429
a 95.2083 2.55431E-06
No. of a + blogt3 + 0.54% 5.49% 4.57%
customers
Entire System
at'
0.9909 b 14.3763 0.00072948
C -4.4630 0.02094931
COTELCO-PPALMA used the abovementioned model in

determining the forecasted data of its energy purchase and number
of customers. These forecasted parameters are crucial in
determining the future problem within the entire system which
enables the cooperative to provide careful technical planning in
preventing such problem from happening.
Meanwhile, the determination of the demand forecast was

based on the forecasted energy purchase and the average load
factor of each substation for the year 2015.
III. PERFORMANCE ASSESSMENT
Evaluating the performance of a distribution network will

provide a complete picture of the needs of an electric cooperative in
formulating project ideas. COTELCO-PPALMA identified and
quantified these problems and categorized these requirements to
address capacity, power quality, and system efficiency. Summary of
the deficiencies within the distribution system are as follows:
t
PAGE 10 OF 29
No. Problem Description - Problem Type

1
Both substations of COTELCO-PPALMA are beyond Capacity
70% in 2015.
Voltage in Pigcawayan and Midsayap are beyond the Power Quality
2
allowable voltage level.
Voltage in Pigcawayan, Alamada, Midsayap and Pikit
3 feeder is beyond the 2.5% maximum unbalance Power Quality
voltage. ___ Ed
4 System Loss is beyond the allowable system loss cap. System Efficienc y
The abovementioned problems were determined based on the

following performance assessment:
The Maximum Safety Margin as shown in the table below

manifests that the existing protection equipment installed
within the cooperative's substations are still compliant with the
safety standards set by the Philippine Grid and Distribution
Code (PGDC).
Power Transformer Secondary/Primary Distribution Line (13.2kV)

Feeder
No. Substation Max. Fault Interrupting Interrupting CB Safety Fuse Safety
Name
Current CB Rating Fuse Rating Margin Margin
Pigcawayan 5,297.00 63,000.00 40,000.00 1189.% 755.14%
i Gumaga Alamada 5,577.00 63,000.00 40,000.00 1129.64% 717.23%
Libungan 6,202.00 63,000.00 40,000.00 1015.80% 644.95%
Midsayap 5,359.00 13,000.00 16,000.00 242.58% 298.56%
2 VIIIanca
Pikit 5,383.00 13,000.00 16,000.00 241.50% 297.23%
However, the Applicant did not provide any short circuit

simulation for minimum fault current, thus, it could not be
determined whether the Circuit Breaker (CB) settings are
adequate or not.
srn9RiJ
The existing maximum capacity of COTELCO-PPALMA's

substation is 25 MVA, which comprises the combined capacities
of its two (2) substations, as shown in the table below. Based on
the forecasted demand, both substations are already beyond
70% capacity in 2015.
PAGE ii OF 29
- Rated Max. Forecasted

Power
No. Substation MVA MVA
Factor 2015 20i6 2017 2018 2019
Capaci ty Capacity
- Demand (MW) 9.01 9.53 10.08 10.72 11.42
i Gumaga 10 97% 12.50
% Lodi 74.31% 78.60% 83.13% 88.41% 94.19%
- Demand (MW) 9.27 9.71 10.20 10.74 11.33
2 Villarica 10 95% 12.50
% Loading 78.06% 81.77% 85.89% 90.44% 95.41%
- Entire Demand (MW) 18.28 19.24 20.28 21.46 22.75

20 96% 25
System % Loading 76.17% 80.17% 84.50% 89.42% 94.79%
Note: Bold & Italic values are beyond the 70% loading capacity margin for substation planning capacity augmentation.
Based on the submitted load flow analysis using the

forecasted demand data, the entire feeders of Gumaga and
Villarica Substations do not comply with the standard
measurement provided by the Philippine Distribution Code
(PDC) in terms of power quality performance and maximum
voltage unbalance, as shown in the table below.
Feeder ____ Voltage Level (pu.) Voltage Unbalance (%)

No sul,station
Name 2014 2015 2016 1 2017 2018 2014 2015 2016 2017 2018
Pigcawayan 0.3031 0.4789 0.4444 0.4341 0.3965 5.84% 6.27% 7.50% 8.21% 9.46%
I Cumaga .Aiamada 0.6621 o.6000 0.5697 0.5367 0.4901 3.62% 4.19% 4.44% 4.72% 5.03%
Libungan 0.4267 0.3955 0.3681 0.4296 0.0892 0.19% 0.23% 0.25% 0.12% 0.46%
Midsoyap 0.2448 0.2055 0.1078 0.0093 0.0845 1.39% 1.43% 3.29% 4.33% 4.46%
2 Villanca
Pikit 0.3859 0.3864 0.3635 0.3546 0.3892 2.26% 2.30% 2.45% 2.63% 2.7l%
iVote: Bold and italic vatues represent violations on we power quality staflaaras.
The PDC provides that the voltage levels at the

customer's connection point must be within ±io% of the
nominal voltage level of 230V (207V to 253V). Furthermore, the
maximum voltage unbalance at the customer's connection point
shall not exceed 2.5% during normal operating conditions.
Voltage unbalances are harmful to consumers using 3-phase
motors. Excessive heat caused by circulating currents may be
produced on these motors if voltage unbalances are high or
beyond the allowable limit discussed above. On the other hand,
undervoltage and overvoltage is harmful to motorized
appliances. These appliances are usually designed to operate
within ±io% of its rated voltage.
7fl tiii eg'ni
The table below shows the system loss data of COTELCO-

PPALMA as of 2013.
PAGE 12 OF 29
Energy, kWh % System Loss

Technical thss 7,832,620 12.71%
Non-technical Loss 8,556,703 14.01%
Total System Loss 16,389,323 26.72%
The reliability performance of the cooperative is being

measured through indices namely, the System Average
Interruption Frequency Index (SAIFI) and the System Average
Interruption Duration Index (SAIDI). These indices are
required as reliability indicators in the ECDUPM of which its
value shall not exceed the interim criteria for SAIFI at 20
customer-interruptions per customer-year and for SAIDI at 45
hours per customer per year.
At present, there is no available data of the reliability

performance of COTELCO-PPALMA. It is currently building up
a more comprehensive and complete database in order to
provide the necessary reliability performance requirements
which is important in justifying reliability performance in the
future.
IV. PROJECT OVERVIEW
As defined under Resolution No. 26, Series of 2009 or

the Guidelines for the Approval of Regulated Entities' Capital
Expenditure Projects, Capital Projects are those projects that
are needed to serve forecasted future loads and to maintain
good electric service to existing and future customers, satisfying
the utility's technical criteria for capacity, reliability, quality,
and safety. These capital projects will form part of the Capital
Assets of the distribution utilities (DU).
Regulated Entities' capital assets are divided into two (2)

categories, namely: (i) regulated distribution assets; and (2)
distribution connection assets. The regulated distribution assets
are further divided into two (2) sub-categories, namely: (a)
distribution plant assets or network assets; and (b) general plant
assets or non-network assets.
PAGE 13 OF 29
FWTU a
Preparation of capital expenditure projects requires

diligent formulation of project ideas in coming up with a
particular solution to the assessed deficiencies/problems of a
distribution network. Several alternatives were considered by
COTELCO-PPALMA in addressing the deficiencies of its
distribution system in order to provide a technically and
economically viable project for the benefits of its member
consumers.
COTELCO-PPALMA identified and proposed nineteen

(19) capital expenditure projects intended to address the
distribution system 's technical deficiencies, as discussed in the
performance assessment. These projects are essential to provide
continuous supply, efficient, reliable, and best possible quality
of service to its customers.
The table hereunder shows the summary of the proposed

projects, presented according to distribution system categories
with its corresponding objective, type, and costs, to wit:
Summary of the CAPEX Application (As Filed)

Rationale
Project I Project Cost I
No. Project Name Type (PhP)
[
Substation Development Projects _

Upgrading of Protection of Villarica Substation
The project is necessary in order to maintain a I Safety 18,fl3,000.00
sale electric power system and service. i
Primary Distribution Development
Projects
COTELCO-PPALMA intends to replace its
existing old and damaged poles in order to Safety 24,458,451.00
2 Refurbishment of Distribution Line maintain a safe, efficient and reliable
distribution system.
Replacement of Overloaded Distribution The proposed project is intended to solve the
3 Transformers along the Feeders of Gumaga capacity problem along the feeders of Gumaga Capacity 11,800,211.85
and Villarica Substations and Villarica Substation.
The proposed project intends to solve the
Reconductoring of 81m Midsayap Feeder impending capacity issues, particularly the Capacity 7,759,590.61
'
Primary Line from 2/0 ACSR to 336 ACSR backbone line of Midsayap Feeder. -
Construction of 3.31km Double Circuit Line for The proposed project intends to solve the Power
5 F33 using 336 ACSR conductor and power quality problem along the secondary 13,811,381.00
Quality
Transfer/Splitting of Loads lines of Pikit Feeder.
The proposed project intends to solve the Power
Installation of capacitors along feeders with power quality problem of Pigcawayan and 596,750.00
6 Quality
under-voltage Libungan Feeders.
COTELCO-PPALMA intends to replace the -
existing old and dilapidated kWh meters with System
7 Replacement of Defective Meters 22,400,000.00
the same specifications in order to improve Loss
the efficiency of the distribution system.
Other Network Development Projects 7
Resolve the impending increase on the
8
New Connections (Service Drop and Metering
Requirements) I demandandonthenumberofcustomersof I_Capacity 71,14O,619
PAGE 14 OF 29
the entire franchise.
The installation of additional distribution
transformers (DT) to the network is a
Secondary Distribution Transformer New continuing process in the distribution utility Ca aci 12 ,770 , 147 . 25
Customer Connections Project to address the increasing loads. Additional ' '
loads require additional capacity in the

distribution network assets.
The secondary distribution line extension is a
10 Additional Secondary Line continuing process in the distribution utility Capacity 8,759,689.44
to address the increase of additional loads.
Non-network
Enhance customer services by providing the
Lot Purchase and Construction of Office DU's personnel the necessary buildings to Customer 37,890,038.45
Building and Warehouse perform efficiently and comfortably its duties Efficiency
and responsibilities
Enhance logistics related to technical
Utility Billing Management System planning and maintenance activities in aid of Customer 14,894,568.00
12
(Hardware, Software and Support) improving/maintaining the entire distribution Efficiency
system
Acquisition of Engineering Simulation planning and maintenance activities in aid of Customer 2,700,000.00
13
Software improving/maintaining the entire distribution Efficiency
Acquisition of Accounting/MSD/Payroll planning and maintenance activities in aid of Customer

1
Software (Inclusive of Source Code) I
improving/maintaining the entire distribution Efficiency
5,807,500.00

planning and maintenance activities in aid of Customer
15 Wide Area Network infrastructure improving/maintaining the entire distribution Efficiency
38,000,000.00
system
16 1 Enhance the operation and maintenance Customer
Acquisition of Test and Laboratory Equipment system of the DU by acquiring tools, Efficiency 12,480,000.00
Enhance the operation and maintenance Customer -

17 Acquisition of Tools and Equipment system of the DU by acquiring tools, Efficiency 729,500.00
equipment and maintenance vehicles.
Installation of Site Equipment Identification To create a comprehensive database needed Customer
i8
and Data Gathering by the engineers as well as in updating Efficiency 8,579,200.00_
customer accounts.
Improve COTELCO-PPALMA's ability to
Purchase of Service and Heavy Equipment immediately respond to and address Customer 23,130,000.00
19
Maintenance Vehicle emergency situations and consumer's Efficiency
336,480,646.80
V. PROJECT EVALUATION
As provided in the ECDUPM, the power system model or

electric circuits used to assess distribution system's performance
should be modified to reflect the proposed projects or solutions.
Likewise, the conduct of appropriate technical analysis is necessary
in order to predict the performance of the distribution system.
COTELCO-PPALMA provided several alternative projects for

each identified problems and ranked the technically feasible
projects in terms of technical effectiveness. Projects that were
considered technically feasible were subjected to economic
evaluation, wherein, the project that presented the least cost of
manifests economic viability was selected by the cooperative.
Upon evaluation of all the proposed capital projects, the

DECISION! 22 AUGUST 2017
PAGE 15 OF 29
Commission approves seventeen (17) projects and disapproves two

(2) projects, without prejudice to re-filing the same. Of the
approved projects, eleven (ii) are subject to cost revision while the
remaining six (6) projects are approved as proposed.
Accordingly, the Commission approves a total CAPEX cost of

Two Hundred Twenty Five Million Four Hundred Ninety Six
Thousand Six Hundred Seventy Six and 29/100 Pesos
(PhP225,496,676.29). The following table shows the summary
of schedule and cost allocation of the approved projects, to wit:
Recommended Project Cost

No. Project Name TOTAL (PhP)
2014
1 2015
12016 20171 2018
Development
17,031,500.00 . 17,031,500.00
Primary Distribution
Development
Prnh.rtc
Refurbishment of - - - 20,559,283.17
2 - 20,559,283.17
Distribution Line
Replacement of
Overloaded Distribution
3 Transformers along the - - - 8,680,957.79 - 8,68o,957.7.9
Feeders of Gumaga and 4)
Villarica Substations
Reconductoring of 8km
Midsayap Feeder - - - 6,518,084.10 - 6,518,084.10
Primary Line from 2/0
ACSRtoS36ACSR
Construction of 3.31km --
Double Circuit Line for
F33 using 336 ACSR - - - - - -
conductor and
Transfer/Splitting of
Loads
Installation of capacitors
6 along feeders with - - - - -
undervoltage
Replacement of Defective - - - 22,400,000.00 - 22,400,000.90
Meters _________________
Other Network
Development -p
New Connections
8 (Service Drop and - - - 5,285,390.00 5,353,710.00 10,639,100.00
______ Metering Requirements)
Secondary Distribution
Transformer New - - 5,883,650.00 3,255,300.00 9,138,950.00
Customer Connections -
_______ Project
Additional Secondary - - - 4,379,844.72 4,379,844.72 8759,689.44
10
Line
Non-Network
eM) -
Development
Lot Purchase and

ii Construction of Office - - 15,000,000.00 19,994,263.79 - 34,994,263-99
Building and Warehouse
Utility Billing 2
Management System 1,411,200.00 1,411,200.00 4,977,684.00 4,977,684.00 14,894,568;O0
12 2,116,800.00
(Hardware Software and
Support)
DECISJON/ 22 AUGUST 2017
PAGE 16 OF 29
Acquisition of -
13 Engineering Simulation - - - 2,700,000.00 - 2,700,00060

Software
Acquisition of
14
Accounting/MSD/Payrol 482,812.50 321,875.00 5,002,812.50 - 5,807,500:00
Software (Inclusive of -
Source Code)
15
Wide Area Network - 21,885,080.00 - 21,885,080.00
Infrastructure - -
6
Acquisition of Test and -
- 3,650,000.00 7,080,000.00 10,730,000.00
Laboratory Equipment
17
Acquisition of Tools and 364,750.00 364,750.00 729,500.00
Equipment
Installation of Site
18 Equipment Identification 2,649,600.00 3,229,600.00 5,879,200.60
and Data Gathering
Purchase of Service and
19 Heavy Equipment 2,175,331.68 21,973,668.32 24,149,000:00
Maintenance Vehicle
2,116,800.00 1 1,894,012.50 1 18,908,406.68 1 173,936,568.39 1 28,640,888.72 1 225,496,676.29
The following table shows the summarized assessment of the

proposed projects, to wit: 2
Project Cost (PhP) Commission's

No. Project Name
Proposed I Approved I Assessment
I i.hctt-nn Prn4prt I r.fl

Revision ;Of,
material cost
Upgrading of Protection of Approved with cost
1 8,773,000.00 17,031,500.00 in referenkte
Villarica substation modification
with NEA
Price Index
Primary Distribution
Bevel nnm ent Prnierts
Revision of
material Cost
Refurbishment of in reference
2 24,458,451.00 20,559,283.17
Distribution Line with NA
Approved with cost Price Index
modification Revision :of
Replacement of Overloaded material cost
Distribution Transformers in reference
11,,.85
800211 8,680,957.79
along the Feeders of Gumaga with Nfl
and Villarica Substations Price Index t
Revision of
Reconductoring of 8km material cost
Midsayap Feeder Primai'y Approved with cost
7,759,590.61 6,518,084.10 in reference
Line from 2/0 ACSR to 336 modification
with NEA
AC5R Price Index.
Disapprova1'
Construction of 3.31km of the
Double Circuit Line for F33 proposed
5 using 336 ACSR conductor 13,811,381.00 - project
Disapprove without
and Transfer/Splitting of without iij.
prejudice to refiling prejudice ito
Loads
_______________ _________________ its refiling.
Installation of capacitors Disapproval?.
6 596,750.00 of the
along feeders with -
2 The technical and economic evaluations of the proposed projects are discussed in Annex "A"
hereof.
al I
k's
.tL..
IS!.
PAGE 17 OF 29
undervoltage proposed .
project
without
prejudice o
its refihing. -.
Submitted
justifications
Replacement of Defective Approved as and project
22 ,400,000.00 22,400,000.00
Meters proposed cost are
acceptable
Other Network
Development Projects
Updated
forecast of
customer is
New Connections (Service much lower
8 Drop and Metering 71,140,619.20 10,639,100.00
than
Requirements) quantified in
Approved with cost the
modification Application
Revision of
Secondary Distribution material cost
9 Transformer New Customer 12,770,147.25 9,138,950.00 in reference
Connections Project with NEA
Price Index
Submitted
justificatiori
Approved as and proje&
10 Additional Secondary Line 8,759,689.44 8,759,689.44
proposed cost
acceptable
Non-network Projects
Modification
in the
Lot Purchase and Approved with cost proposed
11 Construction of Office 37,890,038.45 34,994,263.79
modification construction
Building and Warehouse of warehoüb
building
Submitted
Utility Billing Management justification:
12 System (Hardware, Software 14,894,568.00 14,894,568.00 and projddf
and Support) cost
acceptable -
Submitted
justificatioiis
Acquisition of Engineering Approved as and project
13 2,700,000.00 2,700,000.00
Simulation Software proposed cost are
acceptable -
Submitted
Acquisition of justifications
Accounting/MSD/Payroll 5,07,5.
8 0000 5,807,5.00
00 and projèt
14
Software (Inclusive of Source cost ar e
Code) acceptable
Revision ibf
material cdt
Wide Area Network 38,000,000.00 21,885,080.00 in referen&
15
Infrastructure with NEX
Approved with cost Price Indexf
modification Revision of
material cost
i6
Acquisition of Test and 12,480,.
00000 10 ,730,000.00 in reference
Laboratory Equipment with NEA
Price Index -
17 Acquisition of Tools and 729,500.00 1 729,500.00 1 Approved as Submitted *
U,
C,

PAGE18OF29
u.t -
Equipment proposed justification

and project
cost are
acceptable
Installation of Site Adjustment
Approved with cost
18 Equipment Identification and 8,579,200.00 5,879,200.00 on the cost of
modification
Data Gathering Blade Server
Adjustment
Purchase of Service and on the cost of
Approved with cost
19 Heavy Equipment 23,130,000.00 24,149,000.00 vehicle as per
modification
Maintenance Vehicle submitted .;,-
manifestation
VI. COST ANALYSIS
The cost estimates used by the Applicant on its capital

expenditure projects were based on the prevailing market price
with the assistance of its Professional Engineering Consultants
subject to public, transparent, and competitive biddings.
The Commission re-assessed said cost estimates of each

proposed projects. The cost assessment was primarily referred to
the 2015 National Electrification Administration (NRA) Price
Index. The proposed cost estimates that exceeded the benchmark
provided in the NEA Price Index were reduced while the estimated
costs that are close to the said benchmarks were retained.
Comparison of Applicant's proposed estimated cost and the

NRA Price Index are shown in the table below. The proposed costs
and the NRA price benchmark were based only on the material
costs.
Equipment Unit Cost (PhP unit) Recommended

No. Equipment S peciflealion Unit
Location Proposed' ERC4 NIEA'
69kV incoming
structure; Power
Circuit Breaker
Structure; Potential
and Current
Transformer
Structure; Post NEA
Steel structure No. 1000,000.00
Insulator Structure; 800,000.00
Surge Arrester -
Structure; Disconnect
Switch Structure;
Substation Battery Racks; and -
Ground Mesh for

Disconnect Switch
Disconnect Double Side Break NIEA
2 No. 1,000000.00 500,000.00
switch Type
Power Circuit S176 Circuit Breaker NEA
No. 3,500000.00
Breaker (Dead Tank) 3,200.000.00
i.kV No. 8,000,000.00 - Proposed
'
switchgear -
5 Battery bank 125VDC No. 300,000.00 320,000.00 Proposed

6 Battery charger I25VDC, 30& Single No. 350,000.00 350,000.00 Proposed
- I
3 The proposed unit cost does not include contingency rate factors and VAT.
4 The ERC and NEA price benchmarks already include contingency rate factors and VAT.
I-
PAGE 19 OF 29
Phase
Electrical site No. 2,000,000.00 - Proposed
works -
8 Powercable& - No. 423,000.00 31,500.00 NEA

Termination kit
9 Civil works - No. 1500,000.00 1,500,000.00 Proposed
Perimeter Site Development;
10 lighting and Re- Grading; Gravelling; No. 700,000.00 350,000.00 NEA
graveling Perimeter Lights
12
Pole, Concrete Concrete, 40' No. 23,622.00 16,600.00 NEA
40'
crossarm, steel, Primary
Distribution Steel, 8' No. 1,260.20 1,450.00 Proposed
Line
crossarm, steel, Steel, io' No. 1,591.13 1,750.00 Proposed
10'
10 kVA No. 83,133.91 8,000.00 NEA
15 kVA No. 96,715.71 NEA
69,000.00
25 kVA No. 114,002.91

83,000.00
NEA
15
Distribution
Transformer 37.5 kVA No. 138,081.51 NEA
102,500.00
o kVA No. 159,443.55 NEA

119,800.00
Secondary 75 kVA No. 211,243,41

161,750.00
NEA
Kilowatt-Hour Distribution Single phase, Class
Line No. 1,700.00 NEA
Meter 200 i,800.00 _______
20
Kilowatt-Hour Single phase, Class No. i,óoo.00 Proposed
Meter 100 1 ,600.00 _______
21
Kilowatt-Hour No. Proposed
Meter Single phase, Class 10 85o -
Kilowatt-Hour No. 26,000,00 NEA

Meter Polyphase Electronic 28,000.00 ______________
Service Drop No. - Proposed
Wire #6 ACSR 25,880.00
Service Drop No. 41 2 000.00 NEA
Wire #2 ACSR 44 2 000.00
It can be observed that most of the unit costs shown in the

table above are comparable if not lesser than the abovementioned
price benchmarks.
The recommended costs are just estimates. Article 5.1 of

Resolution No. 26, Series of 2009 provides as follows:
A Regulated Entity shall submit the results of the
competitive bidding which shall include proposals and purchase
orders, the as-built drawings and bill of materials and the actual
cost incurred in the implementation of the planned capital
expenditure projects not later than the 30th of January of the
succeeding year.
VII. PROJECT DESIGN
The acquisition of several major equipment, such as

distribution transformers, kilowatt-hour (kWh) meters, low voltage
conductors, and service drop wires, are intended to address the
impending load growth of the entire distribution system and
maximize the reliability of the system. Moreover, computer
hardware and software programs are a vital tool to be used in
V.
PAGE 20 OF 29
monitoring the power quality, simulations of system losses, and

other parameters required in maintaining an efficient and reliable
power service to its customers. These parameters are also in
compliance with the provisions of the PDC.
Furthermore, the design of the proposed electrical projects

complies with the standards of the NEA Engineering Bulletin and
the Philippine Electrical Code.
VIII. PROJECT STATUS
As directed by the Commission, Applicant submitted an

update of the proposed CAPEX projects. Based on the said update,
some of the non-network projects are already implemented. These
implemented projects are still in progress.
Meanwhile, the Applicant also informed the Commission that

most of the proposed projects have not been implemented. The
Applicant intends to reschedule the implementation of these
projects in years 2017 and 2018.
Hereunder is the summary on the update of the proposed

CAPEX projects, to wit:
Project I Updated Project Cost (PhP) I I

I Actual / I Rescheduled I I Project I
I
No. Name I Incred I Total Staths
I 2014.2016 I 2017 2018 I I I
II UPpadIn of Protection of Villarica -

. I '8,773,000.00 . 18,773,000.00 I
Primary Distribution Development
notyet -
2 Refurbishment of Distribution Line . 24,458,451.00 . 24,458,451.00 implemented
Replacement of Overloaded Distribution not yet
3 Transformers along the Feeders of . 11,800,211.85 11,800,211.85 implemented
Gumaga and Villarica Substations
Reconductoring of 81un Midsayap not yet
4 Feeder Primary Line from 2/0 ACSR to . 7,759,590.61 775959061 implemented
336 ACSR
Construction of 3.31km Double Circuit partially
Line for P33 using 336 ACSR conductor 3,908,073.25 13,811,381.00 implemented
9,903,307.75
and Transfer/Splitting of thads
Installation of capacitors along feeders . not yet
6 . 596,750.00 596,750.00 implemented
with undervoltage ______________ _______________
not yet
7 ReplacementolDefectiveMeters - 22,400,000.00 22,400,000.00 implemented
Other Network Development -
New Connections (Service Drop and not yett

. 37,842,922.00 33,297,697.20 71,140,619.20 implemented
Metering Requirements)
Secondary Distribution Transformer not yet 1
- 8,209,320.84 4,560,826.41 implemented
New Customer Connections Project 12,yo,M7.25
A
PAGE 21 OF 29
Additional Secondary Line - 4,379,844.75 4,379,844.72

I n ot yet I
10
8,759,689.47 I imple men ted I
Non-Network Development
Prnb.rtc
Lot Purchase and Construction of Office partially

19,994,263.79
Building and Warehouse 1 5 ,000,000.00 - 34,994,263.79 implemented
Utility Billing Management System pathall
12 4,977,684.00 4,977,684.00
(Hardware, Software and Support) 4,939,200.00 14,894,568.00 implemented
Acquisition of Engineering Simulation - - not yet
2,700,000.00 implemented
Software 2,700,000.00
Acquisition of Accounting/MSD/Payroll partially.
14 804,687.50 5,002,812.50 - 5,807,500.00
Software(Inclusive of Source Code) implemented
- not yet
15 Wide Area Network Infrastructure . 8,000,000.00
Acquisition of Test and Laboratory not yet
th 3,650,000.00 8,8o,000.00 12,480,000.00 implemented
Equipment -
not yet
17 Acquisition of Tools and Equipment - 364,750.00 364,750.00
729,500.00 implemented -
Installation of Site Equipment not yet

18 2,649,600.00 5,929,600.00 implemented
Identification and Data Gathering - 8,579,200.00
Purchase of Service and Heavy - partially
' Equipment Maintenance Vehicle 2,175,331.68 24,149,000.00
"-t-
I Grand Total I I 234,936,119.66 I 66,845,225.58 I 334,603,872.17 I
lix. FINANCING SCHEME / RATE IMPACT ON RFSC
Per Application, COTELCO-PPALMA intends to avail loans

from the NEA and the Development Bank of the Philippines (DBP)
to finance some of the proposed CAPEX projects. These loans are tc I
subject to the corresponding financier's present lending policies on
loan approval and releases. The following shows the details of the
1
proposed loans, to wit: if.
Proposed Financiers Proposed Loan Terms

No. Name Interest Rate Payment Mode Period (years)
1 PlEA 8% Quarterly 15
2 DBP 6% Quarterly 10
COTELCO-PPALMA shall then use its previous collection and

its projected revenues from the Reinvestment Fund for Sustainable
CAPEX (RFSC) collections to remit the annual amortization gained
from availing such loans. The partially implemented projects are
funded through RFSC while the projects that are not yet
implemented will be loaned from the DBP or the NEA.
The proposed financing scheme is as follows:
No. Project Name I 7'i'i) Source I -.1
t .
I 2 I Refurbishment of Distribution Line I 20,559,283.17 DUP

II Replacement of Overloaded Distribution Transfonners along the Feeders of 8,680,957.79 DBP
I I Gumaga and Villarica Substations I
PAGE 22 OF 29
Reconductoring of 8 kilometer Midsayap Feeder primaryline from 2/0
6,518,084.10 DBP
ACSR to 336 ACSR
Construction 013.31 km Double Circuit Line for F33 using 336 ACSR - -
conductor and Transfer/Splitting of Loads

6 Installation of capacitors along feeders with undervoltage - -
7 Replacement of Defective Meters 22,400,000.00 DBP

I Other Network Development Project I
8 New Connections (Sen'ice Drop and Metering Requirements) 10,639,100.00 DBP
9 Secondary Distribution Transformer New Customer Connections Project 9,138,950.00 NBA
10 Additional Secondary Line 8,759,689.44 NBA
Non-network Develooment Projects I

at Lot Purchase and Construction of Office Building and Warehouse 34,994,263.79 RFSC/DBP
12 Utility Billing Management System (Hardware, Software and Support) 14,894,568.00 RFSC/DBP
13 Acquisition of Engineering Simulation Software 2,700,000.00 DBP
14 Acquisition of Accounting/MSD/Payroll Software (Inclusive of Source Code) 5,807,500.00 RFSC/DBP
15 Wide Area Network Infrastructure 21,885,080.00 DBP
i6 Acquisition of Test and Laboratory Equipment 10,730,000.00 DBP
17 Acquisition of Tools and Equipment 729,500.00 NEA
i8 Installation of Site Equipment Identification and Data Gathering 5,879,200.00 08?
'9 Purchase of Service and Heavy Equipment Maintenance Vehicle 24,149,000.00 RFSC/DBP
The following is the summary of the above financing scheme:
Financiers Total (fliP) Funding Type

DBP 183,949317.67 Loan
NEA 18,628,139.44 Loan
RFSC 1
22 2919,219.18 Direct Financing
I Grand Total I 225,496,676.29 1
Meanwhile, the Commission simulated the probable effect on

COTELCO-PPALMA's existing RFSC rate if it opts not to avail of
any loan and will just utilize its expected revenues from the RFSC in
financing the entire CAPEX projects, in order to establish the
necessity of the recommended loan amount. The simulation took
into consideration the approved project costs and other financial
considerations which are not present in the Application, such as the
accumulated RFSC collection. Shown below is the Commission's
simulation, to wit:
41s1 r '411 I, tnip '-Oil. 'lii lflWitaYMi I
Energy Sales Forecast, KWh 53,786.587 56,230,989 59,085,723 62,430,087 66.338,336 --297,871,722
Approved RFSC Rate, PhPJK%Vb 0.2508 0.2508 0.2508 0.2508 0.2508 0.2508
Cash balance beginning. NIP, 676,379.46 11,493.792.48 23,124,196.70 18,299,927.29 (141,283,700.26) 676,379.46
excess/(shortfall)
CASH INFLOWS
Current year RFSC Collection, 12.950,089.02 13,538,622.73 14,225,951.27 15,657,465.84 16,637,654.67 73,009,783.52
PhP
Total Cash Inflows, NIP 12,950,089.02 13.538,622.73 - 14,225,951.27 15,657,465.84 - 16,637,654.67 73,009,783.52
Available cash for disbursement, 13,626.468.48 25,032,415.20 37.350,147.97 33,957,393.13 (124,646,045.59) 73,686,162.98
NIP
CASH OU'FFLOWS
Applied CAPEX requirement, NIP 2,116,800.00 - 1,894,012.50 -. 18,908,406.68 - 173,936,568.39 28,640,888,72 225,496,676.29
ERCpermit!ecs,lTh-- - 15,876:.... 1,304,52500 -240?.oO -'.'?F??P:??.
Total Cash Outflows, NIP 2,132,676.00 l,908,218.50 19,050,220.68 175,241,093.39 28,855.695.72 227,187,904.29
Cash balance ending, NIP, 11,493,792.48 23,124,196.70 18,299,927.29 (141,283,700.26) (153,501,741.31) (l53,5oI,74t.I) -
excessf(shortfall)
I.
1.98
PAGE 23 OF 29
The Commission further made simulation of the indicative

effect on the existing RFSC rate of the Applicant with the proposed
loans to finance the approved capital expenses. The simulation
considered the same factors used as the previous one but with the
inclusion of the updated loan terms and conditions as well as the
actual and the proposed borrowings, to wit:
Sales Forecast, KWh 297,871,722

ad RFSC Rate, PhP/KWh
I 11,493,792.48 I 23,124,196.70 I
LJC5IAIILIII5, LiAr,
I ---------_t I'll 676,379.46 18,299,927.29 32,652,868.13 I 676,379.46
r A Cfl T1¼TVT CUATC
Current year RFSC Collection, 14,225,951.27 15,657,465.84 16,637,654.67 73,009,783.52

12,950,089.02 13,538,622.73
PhP
financial - -
- 173,936,568.39 28,640,888.72 202,577,457.11
insthutions,PhP
Total Cash Inflows, PhP 12,950,089.02 13,538,622.73 14,225,951.27 189,594,034.23 45,278,543.39 275,587,240.63
Available cash for 37,350,147.97 207,893,961.52 77,931,411.52
- 13,626,468.48 25,032,415.20
disbursement, flIP
('ASH OIITFII1WS
Applied CAPEX requirement, 28,640,888.72 22 5,49 6,6 7 2
2,116,800.00 1,894,012.50 18,908,406.68 173,936,568.39
PhP
Applied CAPEX amorfization, . - -
- 23,058,707.70 23,058,707.70
PhP
ERC permit fees, PhP 15,876.00 14,206.00 141,814.00 1,304,525.00 214,807.00 1,691,2280
Total Cash Outflows, PhP 2,132,676.00 1,908,218.50 19,050,220.68 175,241,093.39 51,914,403.42 250,246,611.99
Cash balance ending, P1W, 18,299,927.29 32,652,868.13 26,017,008.11
- 11,493,792.48 23,124,196.70
Based on the above simulations, the existing RFSC rate will

not be sufficient to finance Applicant's CAPEX projects if it will not
avail of loans. It is therefore necessary for the Applicant to avail of
loans, subject to the approval by the Commission. However,
Applicant should exert its best efforts in negotiating for better loan
arrangements in order to cushion the incremental impact on the
RFSC rate.
The above simulations do not reflect the fact that there will
still be a reduction in the overall rate, due to improved efficiency,
reliability (less Expected Energy Not Served), and system loss
reduction caused by the implementation of the approved projects.
Since the said simulations are just indicative effect on the RFSC
rate component, the Distribution, Supply, and Metering (DSM)
component and the overall rate impact will still be subjected to 11
further review in the rate adjustment application on the regulatory
reset period of the Applicant, as indicated in the Tariff Glide Path
(TGP) Guidelines.
PAGE 24 OF 29
X. PERMIT FEE
Section 40 of Commonwealth Act No. 146 provided as

follows:
The Commission is authorized and ordered to charge and
collect from any public service or Applicant, as the case may be, the
following fees as reimbursement of its expenses in the authorization,
supervision and/or regulation of the public services:
.7
qM
g) For each permit authorizing the increase of equipment,

the installation of new units or authorizing the increase
of capacity, or the extension of means or general
extensions in the services, xxx for each one hundred
pesos or fraction of the additional capital necessary to
carry out the permit
Further, Section 4.2 of Resolution No. 26, Series of 2009

provides, viz:
Payment of permit fee shall be on an annual basis. The

amount of permit fee to be paid shall correspond to the estimated
cash flow per year of the project. The first of the series of payments
shall be made fifteen (15) days from the receipt of the Decision
approving the Application. The succeeding annual payments shall be
paid every 15th day of January of the pertinent year.
Thus, COTELCO - PPALMA is directed to pay to the

Commission a permit fee based on the existing schedule of ERC
Fees and Charges for the authorization and approval of its capital
expenditure projects. The total amount of permit fee shall be in
staggered basis amounting to One Million Six Hundred Ninety One
Thousand Two Hundred Twenty Eight Pesos
(PhP1,691,228.00),5 as summarized hereunder:
I 2014 2015 I . 2016 2017 I 2018 I Total I

I Recommended Project Cost 1,894,012.50 08,406.68 173,936,568.39 28,640,888.72 225,496,676.2
2,116,800.00
(PhP) I I
1
I ~:
I
I ERC Permit Fee (PhP) 15,876.00 14,206.00
1 9141,814-00
1,304,525.00
i
214,807.00 1,691,228.00.
Deadline Jan. 15, 2014 Jan.15, 2015 Jan. 15, 2016 Jan. 15, 2017 15, 2018 4
Meanwhile, considering that the deadline for the payment for
The said amount was based on 75 centavos for every PhPioo.00 of the approved total project
cost.
DECISION/ 22 AUGUST 2017 "'1
PAGE 25 OF 29
the years 2014 to 2017 had already lapsed, COTELCO-PPALMA is
directed to remit the entire fees covering the said period, which
shall be paid within fifteen (15) days upon receipt hereof. The
permit fee for the year 2018 shall be paid on or before the ith day
of January of the pertinent year as provided in the above provision.
The following is the schedule of permit fee payments:
C ,
Total
CAPEX Period (year) 2014 to 2017 2018

ERC Permit Fee (PhP) 1,476,421.00 214,807.00 1,691,228.00
Deadline I is days upon receipt of Decision January 15, 2018
A perusal of the evidence presented herein showed that the

approval of COTELCO-PPALMA's multi-year Capital Expenditure
(CAPEX) Projects for years 2014 to 2016 is in accordance with the
provisions of Republic Act No. 9136, or the Electric Power Industry
Reform Act of 2001 (EPIRA) and the Resolution Amending the
Rules for Approval of Regulated Entities' Capital Expenditure
Projects. Likewise, the approval of the subject projects will redound
to the benefit of its consumers in terms of continuous, reliable, and
efficient power supply as mandated by the EPIRA.
WHEREFORE, the foregoing premises considered, the

Application filed by Cotabato Electric Cooperative, Inc.
(COTELCO), acting for and in behalf of the COTELCO-PPALMA -;
Business Unit seeking the Commission's approval of its multi-year
Capital Expenditure (CAPEX) Projects for years 2014 to 2016 is
hereby APPROVED WITH MODIFICATION and subject to the
following conditions:
1. The following capital expenditure projects of

COTELCO-PPALMA amounting to Two Hundred
Twenty Five Million Four Hundred Ninety Six
Thousand Six Hundred Seventy Six Pesos and 29/100
(PhP225,496,676.29) is approved, to wit:
No. I Project Name p rroject cost u-nfl i

_____
r
Substation Projects
I i Upgrading of Protection of Villarica Substation 17,031,50000
I D,4n.....', n;c.,'m...inn flswn)nnnipnt Prniprtc
2 Refurbishment of Distribution Line 20,559,28317

Replacement of Overloaded Distribution Transformers along the Feeders of 8 • 68o
Gumaga and Villarica Substations
Reconductoring of 8 kilometer Midsayap Feeder primary line from 2/0 6' i8 'o8 'a
' ACSRt0336ACSR
Construction of 3.3' km Double Circuit Line for F33 using 336 ACSR -
conductor and Transfer/Splitting of thads
6 Installa ti on of capacitors along feeders with undervoltage -
7 Replacement of Defective Meters - 22,400,000.00
PAGE 26 OF 29
I Other Network DeveloDment Project I
8 New Connections (Service Drop and Metering Requirements) 10,639,100.00
9 Secondary Distribution Transformer New Customer Connections Project 9,138,950.00
10 Additional Secondary Line 1 8,759,689.44
Non-network Development Projects
11 Lot Purchase and Construction of Office Building and Warehouse 34,994,263.79
12 Utility Billing Management System (Hardware, Software and Support) 14,894,568.00
13 Acquisition of Engineering Simulation Software 2,700,000.00
14 Acquisition of Accounting/MSD/Payroll Software (inclusive of Source Code) 5,807,500.00
15 Wide Area Network Infrastructure 21,885,080.00
16 Acquisition of Test and Laboratory Equipment 10,730,000.00
17 Acquisition of Toots and Equipment 729,500.00
i8 Installation of Site Equipment Identification and Data Gathering 5,879,200.00
ig Purchase of Service and Heavy Equipment Maintenance Vehicle 24,149,000.00
2. COTELCO-PPALMA is directed to conduct competitive

biddings in the purchase of major materials in the
implementation of the approved capital expenditure
projects;
3. COTELCO-PPALMA is directed to exert best efforts in

negotiating for a reasonable loan amount, term, and
interest rate for the benefit of both the utility and its
member consumers;
4. COTELCO-PPALMA is authorized to secure loans in

financing its capital expenditure projects with modified
amount of Two Hundred Two Million Five Hundred
Seventy Seven Thousand Four Hundred Fifty Seven
Pesos and 10/100 (PhP202,577,457.10);
5. COTELCO-PPALMA is directed to submit the results of

the competitive bidding, which shall include the
proposals and purchase orders, the as-built drawings
and bill of materials, and the actual cost incurred in the
implementation of the approved capital expenditure
projects not later than:
a. The 30th of January of the succeeding year for the

still to be implemented projects; and
b. Fifteen (15) days from receipt of the Decision for
implemented projects; [11Th
6. COTELCO-PPALMA is directed to pay to the

Commission the amount of One Million Six Hundred
Ninety One Thousand Two Hundred Twenty Eight
Pesos (PhP1,691,228.00) in staggered basis as
payment of permit fee for the approval of its capital
expenditure projects with the following schedule:
PAGE 27 OF 29
to 2018 I Total
ERC Permit Fee
15
7. The recovery of the project costs and its impact on the

consumer's monthly electricity rate, taking into
consideration loan repayments, shall be considered
comprehensively by the Commission in Applicant's
regulatory reset period as prescribed under the Rules
for Setting Electric Cooperatives' Wheeling Rates
(RSEC-WR).
SO ORDERED.
Pasig City, 22 August 2017.
JOSE VICENTE B. SALAZAR*

Chairman and CEO
ALF!Qk
Q ,2Ka-1< ~
GAORIA VICTORIAC YAP-TARUC
c7,4 :
Commissio er Commissioner
JOSEFINA PAT. MAGPALE-ASIMT ANA

t4mtnissioner Commissioner
J
LS: 4yia/'djiL2o15-213 RC COTELCO.doc
RO5:jbb/b/11g/fb1
* The Chairman was suspended as per Decision of the Office of the President (OP-DC Case
No. 17-D- 094) dated 02 August 2017.
PAGE 28 OF 29
Copy furnished:
1. Any. Cecilia Layug

Counsel for COTELCO
Unit 2904, One San Miguel Bldg. San Miguel Ave.
cor. Shaw Blvd., Ortigas, Pasig City
2. Office of the Solicitor General
134 Amorsolo Street, Legaspi Village, Makati City
3. Commission on Audit
Commonwealth Ave., Quezon City
4. The Senate Committee on Energy

GSIS Building, Roxas Boulevard, Pasay City
5. The Committee on Energy

House of Representatives
Batasan Hills, Quezon City
6. Office of the City Mayor
Kidapawan City
7. Office of the LGU Legislative Body

Kidapawan City
8. Office of the Municipal Mayor
Makilala, Cotabato

Makilala, Cotabato
Kabacan, Cotabato
ii. Office of the LGU Legislative Body
Kabacan, Cotabato
Carmen, Cotabato
Carmen, Cotabato
Mlang, Cotabato
Mlang, Cotabato
Tulunan, Cotabato
Tulunan, Cotabato
PAGE 29 OF 29

Matalam, Cotabato
Matalam, Cotabato
President Roxas, Cotabato
President Roxas, Cotabato
Magpet, Cotabato
Magpet, Cotabato
Antipas, Cotabato
Antipas, Cotabato
Arakan, Cotabato
Arakan, Cotabato
Banisilan, Cotabato
29. Office of the LOU Legislative Body
Banisilan, Cotabato
30. Office of the Governor
Province of Cotabato
Province of Cotabato
32. National Grid Corporation of the Philippines (NGCP)
Quezon Avenue corner BIR Road, Diliman, Quezon City
ANNEX "A"
DETAILED PROJECT DISCUSSION
I. NETWORK PROJECTS
• The upgrading of primary protection of Villarica

Substation includes installation of one (i) unit 69kV
circuit breaker, relays, and bypass switches, 2015
installation of medium voltage switchgear, substation
improvement such as grounding, re-gravelling, fence
rehabilitation. testing and commissioning.
• The project is necessary in order to maintain a safe electric power

system and service.
• COTELCO-PPALMA intends to upgrade the protection of Villarica

Substation. The said substation is one of its first commissioned
substations. The design was based on a 5 MVA substation capacity
which consequently was upgraded to 10 MVA capacity without
upgrading the existing grounding system and protection equipment.
• The entire set of protection equipment of the said substation is
allegedly aged per submitted report. The said report was confirmed
during the ocular inspection conducted on 16-19 November 2016.
• The upgrading of the protection equipment is also an initial step of
COTELCO-PPALMA in preparing for the automation of the said
substation.
• Hence. the Commission approves the aforementioned
Shown below is the proposed project cost breakdown, to wit:
No. of Unit Cost Material Cost
No. Matenals
Units (PhP/unit) (PhP)
i Steel structure i lot 3,000,000.00 1,000,000.00
2 Disconnect switch 1 set 1,000,000.00 1,000,000.00
3 SF6 Circuit Breaker (Dead Tank) i set 3,500,000.00 3,500,000.00

4 1.5 kVswitchgear i lot 8,000,000.00 8,000,000.00
5 Battery bank i set 300,000.00 300,000.00
6 1 Battery charger i set 1 350,000.00 350,000.00
' Electrical site works i lot 2,000,000.00 1 2,000,000.00
8 Power cable & Termination kit I lot 423,000.00 423,000.00
9 Civil works i lot 1,500,000.00 1,500,000.00
10 Perimeter lighting - 100,000.00 100,000.00
ii Re-graveling - 600,000.00 óoo,000.00
Total 18,773,000.00
• The Commission reduced the proposed costs. The assessment involves

adjustment of the unit cost of the required materials for the proposed
projects in reference with the 2015 NEA Price Index.
• Based on the submitted CAPEX update, the implementation of the

project will be scheduled in year 2017. Shown in the table below is the
approved project cost breakdown, to wit:
• No. of Unit Cost Material Cost
No. Materials
Uni (PhP/unit) (PhP)
i Steel structure I lot 800,000.00 800,000.00
2 Disconnect switch i set 500,000.00 oo,000.00
SF6 Circuit Breaker (Dead Tank) 1 set 3,200,000.00 3,200,000.00

1.5kV switchgear I lot 8,000,000.00 8,000,000.00
5 Battery bank 1 Set 300,000.00 300,000.00
6 1 Battery charger I i set 350,000.00 350,000.00
Electrical site works i lot 2,000,000.00 2,000,000.00
8 Power cable & Termination kit i lot 31,500.00 31,500.00
Civil works i lot 1,500,000.00 1,500,000.00
10 Perimeter lighting -
350,000.00 350,000.00
ii Re-gravelmg -
Total
Project to continue as proposed I

Project to continue with revised Capital Expenditure
Proj ect to continue with Technical Amendments
Project is disapproved without prejudice to refiling
Project 2
Refurbishment of Distribution Lines
r PDL0i
1
Distribution Line
• Replacement of damaged, rotten, aging poles and

corroded distribution lines along the coverage area of 2015
COTELCO-PPALMA
• COTELCO-PPALMA intends to replace its existing old and damaged

poles in order to maintain a safe, efficient and reliable distribution
• Based on COTELCO-PPALMA site survey, it was determined that some

of the existing poles within the distribution system are either aged,
decaying or damaged. Drop wires are seen hanging on trees and
temporary bamboo poles. These distribution network assets are threat
to public safety and a contributing factor to the inefficiency and
unreliability of the distribution system.
• The proposed projects will provide assurance in eliminating hazard

and reducing nuisance interruptions caused by these assets. It will also
provide efficiency and reliability improvement in the distribution
system.
• Shown below is the required number of rotten poles and corroded

distribution lines, to wit:
Materials Qty.
No. of Poles 106
No. of Cross-arms 92
Conductor Length (km) 22.935
3
• The proposed project cost includes labor cost, 5% contingency cost,
and 2% Engineering & Administrative based on the cost of the
material. Shown. in the table below is the proposed project cost
breakdown, to wit:
Project Description Amount -
Replacement of rotten poles at Midsayap Feeder 4,239,119.35

Replacement of rotten poles at Pikit Feeder 11,119,500.75
Replacement of rotten poles at Alamada Feeder 2,786,558.17
Replacement of rotten poles at Pigcawayan Feeder 5,480,595.51
Replacement of rotten poles at Libungan Feeder 832,676.81
TOTAL 24,458,451.00
• The Commission reviewed the proposed project cost and reduced the
same. The assessment involves adjustment of the unit cost of the
required materials in reference with the 2015 NEA Price Index and
allotment of labor cost which is 30% of the total material cost.
Moreover, the proposed contingency and engineering & administrative
cost was removed since it was already included in the NEA price
benchmark.

project will be scheduled on year 2017. The following is the approved
project cost breakdown, to wit:
Replacement of rotten poles at Midsayap Feeder 3,7Sb,t320.70

Replacement of rotten poles at Pikit Feeder 10,525,984.30
Renlacement of rotten noles at Alamada Feeder 1.827,8s0.70
of rotten poles at
of rotten Doles at
13
Replacement of Overloaded Distribution
Transformers along the Feeders of Gumaga and
Villarica Substation
PDL02
2
Line
• Replacement of the identified and verified distribution I 2015-2016

transformer with imDending caDacitv deficiencies.
• The proposed project is intended to solve the capacity problem

the feeders of Gumaa and Villarica Substation.
• Based on the submitted load flow simulation, several distribution

transformers are already loaded above i00% of its capacity. Likewise,
the secondary underbuilt connected under these distribution
transformers are operating above its maximum thermal capacity.
• The table below shows the maximum thermal loading of the secondary
underbuilt lines with and without the proposed project, to wit:
Forecasted Maximum Thermal Loading
Feeder Name Without Project With Project
2015 2016 2017 1 2018 2015 2016 2017 2018
Pigcawayan 181 191 197 225 101 85 92 96
Ajamada 93 99 108 118 66 44 46 49
Libunga 374 404 418 617 73 79 84 90
Midsayap 296 363 376 420 76 181 199 206
Pikit 152 16 165 177 64 67 71 75
5
• The proposed project cost includes other material cost, labor cost, 5%
contingency cost, and 12% Value Added Tax (VAT). Shown in the table
below is the proposed project cost breakdown, to wit:
No. of Unit Cost Project Cost
No. Materials Specifications Year
Units (PhP/unit) (PhP)
10 kVA 7 83,133.91 581,937.37
15 kVA 17 96,715.71 1,64067.07
Distribution 114,002.91 2015 3,990,101.85
1 25 kVA 35
Transformer
37.5 WA 16 138,081.51 2,209,304.16
50 WA 3 159,443.55 478,330.65
15 kVA 6 96,715.71 8029426
25 kVA 7 114,002.91
Distribution 138,081.51 2016
2 37.5 WA 6
Transformer
50 kVA 3 159,443.55 t
47833
75kVA 1 211,243.41
Grand Total 11,800.211.85
• The proposed unit cost of distribution transformer is proximate with

the 2015 NEA Price Index. However, the proposed contingency cost and
VAT were excluded considering that it is already included in the said
price index.

Approval
Project to continue as proposed
Project to continue with revised Capital Expenditure /
Project to continue with Technical Amendments
Reconductoring of 8 km Midsayap Feeder from 2/0
•roject Title
ACSR to 336 ACSR
PDL03
Capacity
2
u']zr.w,p Primary Distribution Line
• Reconductoring of 8 km three-phase backbone line of

Midsayap Feeder from 2/0 to 336 ACSR from 2015
Midsavap Substation to Poblacion 7.
• The proposed project intends to solve the impending capacity issues,

particularly the backbone line of Midsayap Feeder.
• The following shows the maximum loading assessment of

Midsayap feeder primary line, to wit:
Forecasted
Feeder Name I
2015 I 2016 I 2017 I 2018 2019
Midsayap 86% 113% 1 127% 134% 1 213%
• There are several options that were considered by the Applicant in

resolving the said problem. The following are the alternative projects,
to wit:
1. Reconductoring of 1.04 km Midsayap feeder primary line from
2/0 ACSR to 336 ACSR;
2. Construction of 1.53 km double circuit line for Midsayap feeder
using 4/0 ACSR and transferring/splitting of loads; and
3. Construction of 1.53 km double circuit line for Midsayap feeder
using 336 ACSR and transferring/splitting of loads.
• Shown below are the results of the load flow simulation with the
implementation of the alternative projects:
No. Alternatives 2016 2017 2018
Reconductoringofl.O4kmMidSaYaPfeederPrimalY 66% 72% 75%
1
line from 2/0 ACSR to 336 ACSR
Construction of 1.53 km double circuit line for
2 Midsayap feeder using 4/0 ACSR and 6% 6% 68%
transferring/splitting of loads
Construction of 1.53 km double circuit line for
Midsayap feeder using 336 ACSR and 38% 42% 44%
3
transferringJsplitting of loads
• Based on the above simulation, all alternative projects are technically

feasible and are capable of solving the said problem.
7
• COTELCO-PPALMA simulated the economic analysis to determine the
optimal project to resolve the issue. All alternatives were subjected to
the analysis considering that such are technically feasible. Hereunder
is the summary of the said analysis:
Asset
Initial Lifetime Cost
Alternative Life/ O&M Expense Cost of Energy Remarks
Project Loss (Ph?)
No. Effective
Cost (PhP) (Ph?) PV (Ph?)
Years
1 15 7,759,590.61 3,491,815.77 462,656,537.80 245,207,669.66 Least Cost
2 15 2,239,316.87 1,007,692.59 513,795,398.06 261,308,656.89 Rank 2 in Cost
3 15 13,777,399.09 6,199,829.59 511,678,575.78 274,762,200.65 Rank un Cost
• Based on the above simulation, the proposed project (Alternative No.

i) is the optimal project considering that it is the least cost among all
the alternative projects.
• The Present Value of the project was based on its asset life of 15 years,
the corresponding operation and maintenance cost of the project with
an estimated amount of 3% of the initial cost, and a discount rate of
8%. The discount rate was based on the annual interest rate offered by
the proposed financier for the project funded through loans.
• The proposed estimated total project cost includes freight & handling,
contingency cost, and engineering & administrative cost amounting to
s%, 2%, and 2% of the total material cost, respectively. Shown in the
table below is the proposed project cost breakdown, to wit:
Project Description Amount -
Construction materials 5,283,767.81

Labor cost 1,415,294.95
Freight and handling 264,188.39
Contingency cost 264,188.39
Engineering and Administrative cost 139,265.02
TOTAL 7,366,704.56
• The Commission reduced the proposed cost. The assessment involves

adjustment of the unit cost of the required materials in reference with
the 2015 NEA Price Index. Moreover, the freight & handling,
contingency, and engineering & administrative costs were removed
since these were already included in the NEA price benchmark.

Amount
Labor cost 1,415,294.95

Freight and handling -
Contingency cost -
Rnvinpprinq and Administrative cost I -
TOTAL
Project to be disapproved without prejudice to refihing
Construction of 3.31 km Double Circuit Line for F33
using 336 ACSR Conductor and Transfer/Splitting of
Loads
Power
2
• Construction of a 3.31 kilometer double circuit line

from Villarica Substation to Barangay Paganganusing
336 ACSR conductor wherein portion of the load 2016
requirement catered by Aleosan will be transferred to
the said feeder.
• The proposed project intends to solve the power quality problem along
the secondary lines of Pikit Feeder.
• The following shows the power quality performance assessment along

the secondary lines of Pikit Feeder, to wit:
Pikit Feeder I 2014 I 2015 I
Forecasted
2016 I 2017 I 2018 I 2019
I
Vohage Variation (p.u.) 1 0.3858 0.3863 0.3634 1 0.3545 1 0.3892 1 0.3179
• The above voltage simulation profile shows that the said feeder does
not comply with the standards provided in the Philippine Distribution
Code (PDC). The voltage levels at the customer's connection point
must be within ±io% of the nominal voltage level of 230 volts or per
unit values ranging 0.9 to 1.1 while the maximum voltage unbalance at
the customer's connection point shall not exceed 2.5% during normal
operating conditions.
• The following are the options considered by the Applicant in resolving
the said problem, to wit:
1. Reconductoring of 8.oi km backbone line and lateral lines of
Pikit Poblacion and Damalasak to Gokoton from 2/0 ACSR to
336 ACSR and installation of capacitors along lateral lines;
2. Construction of 3.31 km double circuit line for F33 using 336
ACSR conductor and transferring of loads; and
3. Construction of 3.31 km double circuit line for F33 using 336
ACSR conductor and transferring of loads and reconductoring
of 8.01 1cm feeder backbone line and lateral lines of Pikit
10
Poblacion and Damalasak to Gokoton from 2/0 ACSR to 336
ACSR conductor.
• Shown below are the results of the power quality simulation with the
Voltage Variation (p.u.)
Alternative
2015 zoib 1 2017 1 2018 2019
Alternative i o.9183 0.9144 0.9100 0.9053 0.9001
Alternative 2 0.9153 0.9102 0.9044 0.8982 0.8983
Alternative 3 0.9160 0.9122 o.go8o 0.9034 1 0.8983
• Based on the above simulation, the proposed project (Alternative 2) is

not sufficient to solve the power quality problem in Pikit Feeder.
Although it improves significantly, it needs a complimentary project to
finally solve the identified problem.
• Thus, the Commission disapproves the proposed project without

prejudice to refiling.
11
• The project includes installation of 100 kVAR and 50
kVAR capacitor along Pigcawayan and Libungan 2016
Feeder.
• The proposed project intends to solve the power quality problem of

Pigcawavan and Libunan Feeders.
• The following shows the power quality performance assessment

the secondary lines of Pigcawayan and Libungan Feeders, to wit:
Forecasted Voltage Variation (p.u.)
Feeder Name
2024 2015 2016 1 2017 1
2018 1 2019
Pigcawayan Feeder 0.3031 0.4789 0.4444 0.4340 0.3964 0.3861
Libungan Feeder 0.4267 0.3955 0.3681 1 0.4296 1
0.0892 1 0.4608
• The above voltage simulation profile shows that the said feeder does
not comply with the standards provided in the PDC. The voltage levels
at the customer's connection point must be within ±io% of the
nominal voltage level of 230 volts or per unit values ranging 0.9 to 1.1.
• The following are the options considered by the Applicant in resolving

the said problem, to wit:
1. Splitting and resizing of distribution transformers to over-
extended secondary lines; and
2. Installation of capacitors along feeders with undervoltage.
• Shown below are the results of the power quality simulation with the
Voltape Variation (p.u.)
Mternative No. Feeder Name 2016 1 2017 2018
2014 2015
Pigcawayan Feeder 0.9000 0.9002 0.8765 0.8705 0.8640
Libungan Feeder 0.9053 0.9002 0.8970 0.8915 0.8862
Pigcawayan Feeder 0.9000 0.8981 0.8785 0.8725 0.8659

2
Libungan Feeder 0.9136 0.9011 0.8979 0.8925 0.8872
• Based on the above the alternative projects are not

12
sufficient to solve the power quality problem in Pigcawayan and
Libungan Feeders. Although it improves significantly, it needs a
complimentary project to finally solve the identified problem.
• Thus, the Commission disapproves the proposed project without

prejudice to refiling.

Project to be disapproved without prejudice to refiling
13
Meters
SLoi
Loss
Distribution Line
• Procurement of the following metering facilities, to

wit:
a) 1 Phase, Class 1, 6oA, Bottom Connected, 240V,
2W, 6o Hz; 201 -2016
b) 1 Phase, Class 200, 2W, 240V, 60Hz, Socket Type;
and
c) 1 Phase, Electronic, 240V, 1600imp/kwh, RFID
meter.
• COTELCO-PPALMA intends to replace the existing old and dilapidated

kWh meters with the same specifications in order to improve the
efficiency of the distribution system.
• Based on COTELCO-PPALMA site survey, it was determined that some

of the existing kilowatt-hour meters have exceeded their operational
life and can no longer operate reliably. The presence of these meters
contributes to the continuous amplification of unaccounted losses or
high non-technical losses of the distribution utility.
The following is the proposed project cost breakdown, to wit:

I No. Materials
No. of
Units
Unit Cost
(}'hP/unit)
Material Cost
(Ph?)
1 I kWb, iphase, Class 1 4,421 80.00 3,757,800.00
I 2 I kWh, iPhase, Class 200 2,579 1,800.00 4,642,200.00

14,000,000.00
3 kWh, iPhase, REID 5,000 2,800.00
Total 22,400,000.00
• The proposed unit costs of the equipment/materials are within the

benchmark of the NEA Price Index.
nroiect will be scheduled on year 2017.
14
Proj ect to continue with revised Capital Expenditure
Project is disapproved without prejudice to refihing
15
II. OTHER NETWORK PROJECTS
•viirni&. 8
New Connections (Service Drop and Metering
Project
Requirement)
W
acity
12
ondary Distribution Line Project
• The following are the required specifications of the

proposed procurement for the secondary distribution
line assets, to wit:
a) The service drop wire is a twisted bare and
insulated duplex AWG #6 and #2 ACSR 201 -2016
conductor;
b) The single phase kWh meters are rated 6oA and
iooA at 240V which are either bottom or socket
connected type; and
a) Three-phase kWh meters, electronic.
• The Applicant is mandated to provide its customers distribution

services and connections in its distribution system consistent with the
distribution code. As load growth dictates, the addition of new
equipment and assets is therefore necessary to forecast the number of
new connections to determine the quantity of metering equipment and
other materials the cooperative needs to prepare.
• The forecasting of the new customers was based on the 7-year

historical customer data of COTELCO-PPALMA. The customer types
are forecasted separately to capture the best model fitted on each
customer type. The chosen models passed and met all the criteria
necessary to validate the accuracy of the forecasted model. Details of
the forecast are discussed in item II of the Decision.
• The annual customer growth is identified by subtracting the forecasted •

number of customer of a particular year from the total number of
customers of the previous year. Shown below is the summary of the
customer requirement of the Applicant:
Customer - - Customers I Requirement

Class 2014 I 2015 I 2016 I 2015 I 2016
1
Residential
Commercial
Total
• The proposed quantity of the metering facilities and the service drop
wire was based on the customer growth and on the assumed length per
customer of 30 meters.
Shown below is the updated project cost breakdown, to wit:

Length Protost
No. Materials Specifications of (/1) Year
nits
Kilowatt-Hour Meter Single phase, Class 200 241 1,796.68 433,000.00
Kilowatt-Hour Meter Single phase, Class 100 - 459 z,óoo.00 734,400.00
Single phase, Class 10 - 875 850.00 743,750.00
ot-HoutMeter 2015
Kilowatt-Hour Meter Polyphase Electronic - 73 28,000.00 2,044,000.00
Service Drop Wire #6 ACSR 48 - 25,880.00 1,242,240.00
Service Drop Wire #2 ACSR 2 - 44,000.00 88,000.00
Kilowatt-Hour Meter Single phase, 200 - 238 i,800.00 428,400.00
Kilowatt-Hour Meter Single phase, 100 - 455 i,600.00 728,000.00
Kilowatt-Hour Meter single phase, 10 - 867 80.00 736,950.00-
2 2016
Kilowatt-Hour Meter Polyphase Electronic - 77 28,000.00 2,156,000.00
Service Drop Wire #6 ACSR 47 - 25,880.00 1,216,360.00
Service Drop Wire #2 ACSR 2 - 44,000.00 88,000.00
Grand Total 10,639,100.00
• The submitted updated unit costs of the equipment/materials are

within the benchmark of the NEA Price Index.

project will be scheduled in years 2017 and 2018-
Approval
17
Secondary Distribution Transformer - New Customer
Connections Project

proposed procurement of Distribution Transformer
(DTs), to wit:
a) The transformer ratings are 10, 15, 25, 37.5, 50
and 75 kVA; 2015-2016
b) All transformers are of conventional type,
amorphous, oil immersed, pole-mounted and
have two primary bushings;
c) With primary voltage of 13.2/7.62 kv; and
d) Secondary voltage of 120 /240 or 240/480 V.
• The installation of additional DTs to the network is a continuing

process in the distribution utility to address the increasing loads.
Additional loads require additional capacity in the distribution
network assets.
• COTELCO-PPALMA simulated the additional DT needed to address its

increasing loads. The said simulation involves the following procedure:
1. Determine the annual load growth of the entire DU through the
demand forecast;
2. Convert the annual demand forecast to apparent power kilovolt
per ampere (KVA);
3. Determine the required KVA demand per DT rating using the
annual forecasted KVA demand and the submitted percentage load
sharing of each DT ratings presently installed within the
distribution system; and
4. Determine the required units for each DT rating by dividing the
KVA demand per DT rating and the particular rating capacity of
the DT.
• Summary of the simulation are shown in the tables below.
Year I Growth
I (14AT\ I
Demand 'a kVA i 1CVA 25kVA 37 kVA so WA II 75
kV
18
I Required I I
I Year I Load
Growth I Demand I
I
Forecasted no. of units of DT per rated capacity
iokVA I5kVA I 25kVA I 37.5kVA II 5OkVA
(1(W) I (KVAY I I WA
2015 1,417.721 1,462.501 30 301 15 I I I I
120161 862.88j 762.501 18 1 18 I 9 I 1
• Shown below is the proposed project cost breakdown, to wit:

Unit Cost Project Cost
No. Materials Specifications No. of Units Year
(PhP/unit) (PhP)
10 kVA 30 83,133.00 2,493,987.00
15kVA 30 96,715.70 2,901,471.00
Distribution 25 kVA 15 114,002.93 1,710,044.00
Transformer 2015
3. ICVA 3 138,081.50 414,244.50
50 WA 3 156,443.33 478,330.70
75 kVA 1 211,243.40 211,243.40
io kVA 18 83,133.00 1,496,392.00
15kVA 18 96,715.70 1,740,883.00
Distribution 1,026,026.00
2 25 WA 9 114,002.93 2016
Transformer
37.5 kVA 1 138,081.50 138,081.500
50 WA 1 156,443.33 159,443.60
Grand Total 12,77o,147.25
• The Commission reduced the proposed project costs. The said

assessment involves adjusting of the required materials' unit costs in
reference with the 2015 NEA Price Index.

project will be scheduled in years 2017 and 2018. The following are the
approved project costs breakdown, to wit:
Unit Cost Project Cost
No. Materials Specifications No. of Units Year
(PhP/unit) (PhP)
10 WA 30 58,000.00 1,740,000.00
15 kVA 30 69,000.00 2,070,000.00
Distribution 25 WA 15 83,000.00 1,245,000.00

Transformer 2015
37.5 kvA 3 102,500.00 307,500.00
so kVA 3 119,800.00 359,400.00
75 kVA 1 1 1 161,750.00 161,750.00
10 ICVA 18 58,000.00 1,044,000.00
i5 kVA 18 69,000.00 1 9 242,000.00
Distribution 83,000.00 2016 747,000.00
2 25 kVA 9
Transformer
37.5 kVA 1 102,500.00 102,500.00
o kVA 1 119,800.00 119,800.00
Grand Total

19
proposed secondary distribution line extension, to
wit:
a) The low voltage distribution lines are line to
ground system with the nominal voltage of 240
volts;
b) The type of conductors to be used for secondary
lines shall be bare or insulated.
• The secondary distribution line extension is a continuing process in the

distribution utility to address the increase of additional loads. The
electrification of forecasted additional demand and customers would
reauire extension of secondary distribution lines.
• The forecasted secondary line expansions were based on the clustering

analysis conducted by COTELCO-PPALMA. The said analysis includes
the following procedures, to wit:
1. The secondary lines are classified into under-built lines and open
secondary lines;
2. They are further classified according to its location whether in the
urban or rural areas;
3. The circuit-length of secondary lines for the installed transformers
and the assumed ratio for each line configuration in a specified
area were based on its existing distribution line configuration, as
shown in table below; and
4. The length of the secondary lines were then determined based on
the forecasted number of transformers and using the ratio of
capacities.
I Line I Length of Lines Total
No. of 1ff
Urban I
Length
I Type Rural of Lines
I UB 40,817.63 460,039.51 500,857.14
I os 18,379.95 269,079.06
Grand Total
287,459.01
788,316.15
_______
1,029
I Rural (existing ratio/percentage) I Urban (e)isting ratio/percentage) I

• The submitted forecasted secondary line length requirement which was
determined based on the procedures discussed above is shown in the
table below:
I Year I I Urban I Rural I Total I
2015
Under Built
2016

Line Length (Ian) Project Cost Sub-total
Year
UB (Phi') ________________________
2015 22.91 39.91 88,640.30 2,030,394.71 3,537,811.65
2016 13.13 22.88 88,640.30 1,163,758.50 2,027,735.50
Grand Total 8,759,689.44
• The proposed unit costs of the equipment/materials are within the

benchmark of the NEA Price Index.
project will be scheduled in years 2017 and 2018.
21
III. NON-NETWORK PROJECTS
•uiiiru.. 11 I
Lot Purchase and Construction of Office Building and I
Warehouse I
Customer
6
Non-netw
Acquisition of lot for the construction of two-storey I

office building and improvement/refurbishment of I 2015-2016
the existing residential structure into warehouse I
building for COTELCO-PPALMA. I
• COTELCO-PPALMA office is presently occupying a limited space

beside its substation located at Bgy. Villarica, Midsayap. Some of the
consumers are complaining about the uncomfortable condition
especially during payment of bills. The office cannot accommodate
paying or transacting customers resulting to long queue outside the
office building or at the roadside which is uncomfortable and
hazardous.
• The proposed project shall ensure the convenience of the member-

consumers as well as the office employees in doing the necessary
transactions.
The following are the detailed discussion of each activity of the project:
a) The cooperative intends to have a separate office building as it is
presently occupying a limited space beside its Bgy. Villarica,
Midsayap substation;
b) The proposed office building shall be used as a place for customer
transaction such as billing payments, monetary and material
collections, data processing, and other necessary customer services
c) The acquisition of lot is certainly necessary in order for the
proposed two-storey office building to be implemented;
d) The existing residential structure in the purchased lot will be
refurbished as a warehouse building of COTELCO-PPALMA; and
e) The existing parking lot will serve as a motorpool of COTELCO-
PPALMA's service vehicles.
22
Description Cost (Ph?)
Lot 15,000,000.00
Two-storey office building 18,000,000.00
One-storey motorpool building 4,890,038.45
Total 37,890,038.45
• Based on the submitted CAPEX update, the Applicant opted to

refurbish the existing residential structure in the purchased lot instead
of constructing a brand new warehouse/ motorpool building.
• The said update also indicates that the proposed project is still in
progress. The Applicant manifested that the completion of the project
is scheduled in year 2017. The following is the actual cost incurred for
the said project and the balance, to wit:
Actual Cost Balance (Ph?)
Incurred (Ph?) Recommended
Activity Cost (Ph?)
2016 2017
Lot 15,000,000.00 15,000,000.00 -
Construction of two-storey building - 18,000,000.00 i8,000,000.00

Refurbishment/improvement of existing - 1,994,263.79 1,994,263.79
residential structure into warehouse building

Project to continue with revised Capital Expenditure V
'a
Project 12
Utility Billing Management System (Hardware,
•Project Title
Software and Sunnort)
Customer
• The Project includes acquisition and implementation

of IT software and equipment for upgrading the 2014-2015
billing system of COTELCO-PPALMA.
• Presently, COTELCO-PPALMA is processing the billing and collection

of about 45,000 consumers in its coverage areas, hence, doing it
manually would cause errors in data processing and it involves much
operational costs. Financial operations such as sales and collections
could also be affected. Using the proposed project, the billing collection
and consumer's information will be processed accurately, efficiently
and economically.
• COTELCO-PPALMA has entered into a leasing contract with DCTECH

Billing and Collection System, including accessories and service
maintenance of the system. Shown below is the actual cost of the
proposed project, to wit:
Description Cost (PhP)
Utility Billing Management System 8,394,568.00
Read and Bill System 6,500,000.00
Total 14,894,568.00
• Based on the submitted CAPEX update, the proposed project is still in

is scheduled in years 2017 and 2018. The following is the actual cost
incurred for the said project and the balance, to wit:
Actual Cost Incurred (Phi') I Recommended Balance (Phi')
2014 I 2015 I 2016 I Grand total Cost (Phi') 2017 2018
Approval tClsflaid%

Project to be confirmed
L't
25
of
Customer
Non-
• The project includes acquisition of engineering

simulation tool and analysis software, including 2015
training and licensing.
• The acquisition of engineering software analysis and simulation tool is

important to aid the engineers in the operation as well as in the
planning of electrical distribution system. The engineering software
and analysis tool can support the DU's operational needs in building
up a comprehensive model for the development of plans and
operational assessment of the distribution system.
• The proposed engineering software is being offered in package

amounting to PhP2,700,000.00. The said cost is comparable with the
existing market price and available price reference found in the
internet.
• Meanwhile, the proposed project shall be implemented in year 2017,

based on the submitted revised schedule of the project.

26
- Acquisition of Accounting/MSD/Payroll Software
with Source Code
r'Th13i{FCIH1k0
Customer Efficiency
6
g Non-network Requirement
• The project includes acquisition of Accounting

Application System and necessary hardware such as 201
computers, back-up UPS, printers, external drive
back-up, and print server.
• The proposed project will replace the existing system and will improve
the accounting data management. The new system will be capable of
interconnection to various data transfer. Also, it will be Accounting and
Cost Allocation Model (ACAM) compliant and capable of adopting
future changes or upgrades to accounting system.
• Shown below is the proposed cost of project, to wit:

Description I Cost (PhP) I
I
Accounting, Warehousing, MSD,
HR Systems Software Package I
5,807,500.00 II
Total 5,807,500.00

is scheduled on year 2017. The following is the actual cost incurred for
the said project, to wit:
Actual Cost Incurred (PhP) I Recommended I Balance (Phi')
I oi I 2016 I Grand total Cost (PhI') I 2017 J
Kmmiit€
13!IO(IAV8

27
15
Wide Area Network Infrastructure
Customer Efficiency
6
'wavr.nIu, Non-network Requirement
• The project includes interconnecting the COTELCO-

PPALMA sub-offices to central offices to be able to 2015
communicate reliably and timely.
• The proposed project is vital in upgrading the current manual system

of the cooperative to a more advanced application. All data coming
from COTELCO-PPALMA main office such as consumer's account
data, metering reading, billing, and collection can easily be accessed in
all sub-offices on-line using real time data entry.
• With the support of IT Network facilities, electric bill payments by the

customers can be processed and accepted in any collection offices or
site. Also, emergency electrical complaints from the consumers can be
received 24/7 via the consumer's hotline desk and it will be acted upon
immediately by the cooperative. Moreover, current events about the
cooperative such as technical updates on intermittent power
interruptions, load curtailment, line faults, scheduled line maintenance
and line clearing, financial updates on power rates and other charges
can be aired and informed to all member consumers via sub-offices
welfare desk.
The table below shows the proposed cost of the project.

Software/Module I Cost (PhP)
Fiber Optic Cables with self-support cables 38,000,000.00
• Based on the submitted CAPEX update, however, some discrepancies

of the total project cost were observed as against the cost indicated in
the application.
• The Commission approves the proposed project with cost modification

based on the said CAPEX update. The following is the approved project
cost breakdown, to wit:
FM
DScriptibn Cost (PhP)
Fiber Optic Connection from Pigcawayan to Libugan 6,504,380.00
Fiber Optic Connection from Libungan to Midsayap 2,012,820.00
Fiber Optic Connection from Midsayap to Aleosan 3,939,240.00
Fiber Optic Connection fromAleosan to Pikit 8,928,640.00
DVD Fusion Machine with OTDR and Power meter 500,000.00
Total 21,885,080.00
The said update also manifests that the implementation of the

proposed project will be scheduled in year 2017.
Approval
Project to continue as proposed I I

Proj ect to continue with Technical Amendments
29
16
of Test and
Customer Eff
6
Non-network
• Acquisition of specialized equipment capable for

measuring, testing, and identifying irregularities on 2015-2016
the distribution system.
• The proposed project is necessary in order to perform the necessar'

procedures in compliance to the provisions provided in the Philippine
Grid and Distribution Code (PGDC). These equipments are also
capable of assisting engineers and operators in analyzing data results,
load profiling, and trouble shooting.
30

31
17
I4!ii1k Acquisition of Tools and Equipment
Customer Efficiency
6
I'VflfliW€%,i,p Non-network Requirement
• Purchase of additional maintenance tools for line I 2015-2016

personnel to meet the customers' zrowin demand.
• Most of the tools used by the crew are substandard and already old.
The purchase of new tools will help the linemen to perform their
assigned job safely in accordance with applicable safety standards.
• The following is the proposed project cost breakdown, to wit:

Unit Cost Allocation Year Project
No. Materials
(PhP/unit) 2015 2016 Cost (Flip)
i Combination Pliers 4,500.00 30 67,500.00 67,500.00 135,000.00
2 thng Nose Pliers 1,00.00 30 22,500.00 22,500.00 45,000.00
3 BalI Hammer 2,450.00 30 36,750.00 36,750.00 73,500.00
4 Tool Box 80 . 00 10 4,250.00 4,250.00 8,00.00
5 climber with Belt 34,000.00 10 170,000.00 170,000.00 340,000.00
6 1 Cutter Plier 1,500.00 30 22,500.00 22,500.00 45,000.00
7 Adjustable Wrench (12") 1,850.00 30 27,750.00 1 27,750.00 55,500.00
8 Screwdriver (flat) 450.00 30 6,0.00 1 6,750.00 1 13,500.00
9 Screwdriver (star) 450.00 30 6,750.00 6,750.00 13,500.00
Total 1 364,750.00 1 364,750.00 1 729,500071
• The proposed cost is comparable with the existing market price and
available price reference found on the internet. Moreover, based on the
submitted CAPEX update, the implementation of the project will be
scheduled in years 2017 and 2018.
32
• The project involves building up a comprehensive
2015-2016
system map for the whole distribution system. I
• Integration of the data to GIS software will create a comprehensive

database needed by the engineers as well as in updating customer
accounts. The GIS-based data can be integrated to engineering
software to assist engineers in the conduct of distribution impact
studies through engineering simulations and calculations. The data can
also be used as network model for Supervisory Control and Data
Acquisition (SCADA) in the future.
33
• The following is the approved cumulative project cost breakdown, tb.
wit:
- Allocation Year Project
No, Materials Cost (PhP)
2015 2016
1 GIS and Blade Server - 2,800,000.00 2,800,000.00
2 Laptop and Printers 245,000.00 - 245,000.00
3 GPS 75,000.00 - 75,000.00
4 Server 350,000.00 - 350,000.00
5 Multimedia Projector 50,000.00 - 50,000.00

6 4X4 Vehicle 1,500,000.00 - 1,500,000.00
6 Manpower 429,600.00 429,600.00 429,600.00
2,649,600.00 3,229,600.00 5,879,200.00
• The said update also indicates that the implementation of the proposed
34,
1
Vehicle
Customer Eff
6
Non-network
• The purchase of heavy equipment and service vehicles will improve

COTELCO-PPALMA's ability to immediately respond to and address
emergency situations and consumer's complaints. It will also decrease
the dependence on old vehicles, leading to lower maintenance costs.

Unit Cost Allocation Year Project
No. Materials Qty. Cost (PhP)
(HiP/unit) 2015 2016
Forward Boom Truck 8,500,000.00 1 - 8,500,000.00 8,500,000.00
I
with Digger (8 tons)
Medium duty truck 900,000.00 1 - 900,000.00 900,000.00
2
with Boom (s tons)
04 NKR Assembled 1,500,000.00 4 . 6,000,000.00 6,000,000.00
for DU Maintenance
4 All-terr2in vehicle 1,320,000.00 5 6,600,000.00 . 6,600,000.00
5 Utility vehicle 1,130,000.00 1 1,130,000.00 . 1,130,000.00
Total 7,730,000.00 15,400,000.00 23,130,000.00

is scheduled in years 2017 and 2018. The following is the actual cost
incurred for the said project and the balance, to wit:
Actual Cost Incurred (Phi') I Recommended Balance (Phi')
201A I Cost (PhP) I 2017

35

Decision 2015-213+RC COTELCO

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Decision 2015-213+RC COTELCO

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Approved for

Republic of the Philippines

ERC CASENO. 2015-213 RC

Before this Commission for resolution is the Application filed

In its Application, COTELCO alleged, among others, the

1. COTELCO is a non-stock, non-profit electric cooperative, organized

The COTELCO— PPALMA Area was created as a separate business

NATURE OF THE APPLICATION

4. The instant Application was filed pursuant to ERC's Rules of

COMPLIANCE WITH THE

. COTELCO furnished the respective legislative bodies of the local

6. COTELCO also published the Application without its annexes in a

7. The COTELCO-PPALMA's Multi-Year Capital Expenditure

CAPITAL EXPENDH'URE PROJECTS (2014-2016)

YEAR OF IMPLEMENTATION TOTAL COST

Installation of Site Equipment

8. The above-enumerated CAPEX Projects are optimal solutions to

9. COTELCO-PPALMA's Distribution System Map, Customer Profile,

Funding Project Cost (PhP) Total (PhP)

12. The implementation of all the proposed projects will have an G

ALLEGATIONS IN SUPPORT OF THE PRAYER

14. The proposed CAPEX Projects need to be immediately implemented 1-

16. COTELCO-PPALMA has no sufficient financial resources to finance

17, The Authority to Secure Loans is necessary for the immediate

18. COTELCO, in behalf of its COTELCO-PPALMA Area Business Unit,

19. COTELCO prays that the Commission grants provisional authority

Finding the said Application to be sufficient in form and in

On 16 June 2016, Applicant filed its Pre-trial Brief.

During the 21 June 2016 hearing, only Applicant appeared.

At the said hearing, Applicant presented proofs of its

Thereafter, Applicant conducted an expository presentation

In the course of the Pre-trial Conference, COTELCO made a

During the presentation of evidence, Applicant presented

On 09 August 2016, Applicant submitted its Compliance to

The issue to be resolved is whether or not the instant

The Commission approves with modification the CAPEX

I. OVERVIEW OF COTELCO's DISTRIBUTION SYSTEM

The distribution system of Cotabato Electric Cooperative -

The supply of power is presently being distributed through

System Line Configuration (km)

As shown below, 88% of the connected customers are

Public 2013 Cust.r?righclass

The chart below indicates that majority of the cooperative's

In order to determine the optimal project for a particular

There are two (2) methods of forecasting in order to predict or

Under the Electric Cooperative's Distribution Utility Planning

i) adjusted R2 should be at least 8o% for econometric

Accuracy of the model, likewise, should have a Mean Absolute

COTELCO-PPALMA simulated several forecasting models

Accuracy Annual Average

COTELCO-PPALMA used the abovementioned model in

Meanwhile, the determination of the demand forecast was

III. PERFORMANCE ASSESSMENT

Evaluating the performance of a distribution network will

No. Problem Description - Problem Type

The abovementioned problems were determined based on the

The Maximum Safety Margin as shown in the table below

Power Transformer Secondary/Primary Distribution Line (13.2kV)