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theInternal
DDP
2018-2022 An Official Publication of the VECO Engineering Group

VISAYAN ELECTRIC COMPANY DAVAO LIGHT & POWER COMPANY COTABATO LIGHT & POWER COMPANY SAN FERNANDO LIGHT & POWER COMPANY

SUBIC ENERZONE CORPORATION MACTAN ENERZONE CORPORATION BALAMBAN ENERZONE CORPORATION LiMA ENERZONE CORPORATION



DISCLAIMER

The Distribution Development Plan (DDP) is prepared and published solely for information purposes.
While VECO, to its utmost effort, used the accurate data available and information, nothing in this
document can be or should be taken as a recommendation in respect of any possible investment or
business decision. This document does not claim to contain all the information that a prospective or
existing customer of the distribution utility, or any other person or interested parties may require for
making decisions. In preparing this document it is not possible nor is it intended for VECO to have
considered the investment objectives, financial situation and particular needs of each person who uses
this document.

In all cases, anyone proposing to rely on or use the information in this document should
independently verify and check the accuracy, completeness, reliability and suitability of the information
and reports and other information relied on by VECO in preparing this document, and should obtain
independent and specific advice from appropriate experts.



INTRODUCTION

1.1 Company Profile

Visayan Electric Company, Inc. (VECO) is the second largest electric utility in the Philippines. It
serves the cities of Cebu, Mandaue, Talisay, Naga and four municipalities of the greater part of Metro
Cebu - Liloan, Consolacion, Minglanilla and San Fernando. Its franchise service covers an area of about
674 km2 with an estimated population of 2,077,326.

VECO utilizes various state-of-the-art technologies in its operations to improve its efficiency
and service. It uses a SCADA (Supervisory Control and Data Acquisition) system to monitor and control
its electric distribution assets via remote control. It also has a GIS (Geographic Information System) to
map and manage its facilities.

It has two full service centers equipped with Voice-over Internet Protocol (VoIP) telephone
system integrated with a Customer Relation Management System (CRMS). The first full service center
is located at SM City Cebu while the second one, intended to serve the needs of customers in the
southern part of the franchise area, is in Talisay City. VECO is owned and managed by publicly-listed
Aboitiz Power Corporation (PSE: AP) and Vivant Corporation. Approximately 800 individual
shareholders comprise the VECO shareholders' roster.

1.2 Customer Profile

VECO’s franchise area covers the major part of the Cebu City that stretches from San Fernando,
Naga, Talisay, Cebu City, Consolacion until Liloan. As catered load growth increases, energy consumption
also increases.

VECO continuously served power to different type of customer may it be residential, commercial or
industrial load. Based on December 2016 data, VECO served 408,578 combined customers including
streetlights and others. VECO also serves 69kV Customers which are CEMEX, Taiheiyo, Mabuhay
Filcement and Waterfront.

Customer Number of Percentage Energy Sales per Customer Percentage
Class Customers Type (MWh)

Residential 365,935 89.56% 781,361 28.19%

Commercial 40,778 9.98% 417,319 15.06%

Industrial 1,719 0.42% 1,546,498 55.80%

Others 146 0.04% 26,246 0.95%

Total 408,578 2,771,424

Table 1.1 Customer Composition and Energy Sold per Class for December 2016

Distribution Development Plan 2018-2022 ii

1.3 Service Area

VECO services power through its electrical distribution and subtransmission lines throughout
the metropolitan area of the province—Cebu City and Mandaue City and its adjacent cities and
municipalities in the south—Talisay City, Minglanilla Municipality, Naga City and San Fernando
Municipality, as well as in the north—Consolacion and Lilo-an Municipalities. The service area is
comprised of 232 barangays with an estimated 281,000 households (as per the Philippine Statistics
Authority in 2015 for barangays and population; 2000 for households estimate).

Figure 1.1 VECO Franshise Area Coverage

iii Distribution Development Plan 2018-2022

Figure 1.2 VECO 23kV System Map

Distribution Development Plan 2018-2022 iv

Figure 1.3 VECO 69kV System Map

v Distribution Development Plan 2018-2022

1.4 Energy Profile

The following is historical data of the energy purchased and sold from the year 2011 to 2016.

Total System HISTORICAL DATA (GWH)

Energy Purchased 2011 2012 2013 2014 2015 2016
Energy Sales 2,797.47 2,975.42
2,349.04 2,524.30 2,621.68 2,742.65 2,585.70 2,771.42

2,120.45 2,299.10 2,417.35 2,527.85

Table 1.2 Historical Energy Purchase and Sales

3,000.00
2,500.00
2,000.00
1,500.00
1,000.00

500.00
0.00

2011 2012 2013 2014 2015 2016

Energy Purchased Energy Sales

Figure 1.4 Historical Energy Purchase and Sales

1.5 Substation Capacity and Clustering

In this context of this CAPEX projects proposal, VECO’s distribution system is fed through 15
67/23kV substations with a total aggregated of 693MVA based on the maximum operating capacity of
each of the transformer. The subtransmission system of the utility comprises of one VECO-owned
substation with four VECO-owned 80/100MVA transformers. The list below shows the existing
substations with its capacity and total number of feeders served. The geographical location of our
substation is illustrated.

Distribution Development Plan 2018-2022 vi

Cluster Substation Capacity (MVA) No. of Feeders Location
North Poblacion, Consolacion
East Consolacion Ss CLC 1 x 33 2 Pakna-an, Mandaue City

West Pakna-an Ss PKN 2 x 33 4 Talamban, Cebu City
South Kasambagan, Cebu City
Cabancalan Ss KBL 1 x 33 4 Cebu Port Center, Cebu

Banilad Ss BNL 1 x 33 3 City
Guizo, Mandaue City
Mabolo Ss MBL 2 x 33 4 Subangdaku, Mandaue

Mandaue Ss MDW 2 x 33 4 City
Mandaue Reclamation Ayala, Cebu City
MRA 1 x 33 4 Calamba, Cebu City
Area Ss Kamputhaw, Cebu City
Ayala Ss AYL 1 x 33 2 Lorega (San Miguel),
Calamba Ss CLB 1 x 33 3
Camputhaw Ss CPH 2 x 33 4 Cebu City
Ermita, Cebu City
Lorega Ss LRG 2 x 33 4
Colon, Naga
Don Gil Garcia Ss DGG 2 x 33 4 Bulacao, Cebu City
Naga Ss
Pardo Ss NGA 1 x 33 3 Mohon, Talisay City
Talisay Ss
PRD 1 x 33 2
TOTAL SYSTEM
TLS 1 x 33 4

693 51

Table 1.3 Substation Capacity and Clustering

vii Distribution Development Plan 2018-2022

Figure 1.5 North Cluster Substations Location

Figure 1.6 East Cluster Substations Location viii

Distribution Development Plan 2018-2022

Figure 1.7 West Cluster Substations Location

Figure 1.8 South Cluster Substations Location

ix Distribution Development Plan 2018-2022

1.6 Total Length of Lines of VECO’s Distribution System

The historical total length of lines in circuit-kilometers of the overhead distribution line per type of
VECO’s distribution system is shown in Table 1.4.

Voltage, 138kV and less than ckt-km 2011 2012 2013 2014 2015 2016
230kV 35.86 35.86 35.86 36.04 36.04 36.04
Voltage, 115kV and less than
138kV ckt-km - -- - --
Voltage, 69kV and less than 78.27
115kV ckt-km 77.00 78.38 78.14 83.21 99.65
Voltage, 34.5kV and less than -
69kV ckt-km - -- 850.30 --
Voltage, 13.8kV and less than
34.5kV ckt-km 761.19 803.78 866.58 - 886.04 1077.61
Voltage, 6.2kV and less than 186.53
13.8kV (3 Phase) ckt-km - -- 520.36 - -

(V Phase) ckt-km 166.98 176.32 190.10 194.37 407.06
ckt-km 465.83 491.89 530.32 542.23 551.86
(1 Phase) Table 1.4 Historical Lengths of Lines

1.7 Annual System Performance

The annual system performance of VECO is shown in Table 1.5. It shows that the peak demand in
the year 2011 is at 407MW while in the year 2016, it is at 524MW.

Energy Sales MWh 2011 2012 2013 2014 2015 2016
MWh 2,122,226 2,300,959 2,417,353 2,527,846 2,585,704 2,771,424
Utility's Own Use
Energy Generated/ 1,772 1,863 1,822 1,676 1,664 1,527
Purchased
Energy Losses MWh 2,349,040 2,524,296 2,621,676 2,742,651 2,797,473 2,975,419

Load Factor % 9.6 8.8 7.8 7.8 7.6 6.9
Peak Demand % 65.8 70.0 69.2 68.2 67.2 69.1
(Coincident)
MW 407 428 449 474 489 524
Table 1.5 Annual System Performances

1.8 Historical Data

Historical data was gathered and examined extensively to determine the most suitable and
sensible data for forecasting future load and peak demand. These historical data are needed to forecast
the future growth of the system and the needs that may arise of due to the growth.

Distribution Development Plan 2018-2022 x

2011 2012 2013 2014 2015
1,740,342 1,837,883
Captive Customers MWh 1,634,198 1,616,311 1,705,689 666,153 704,339
372,981 384,461
Residential MWh 596,484 623,316 662,728 675,347 722,750

Commercial MWh 352,536 362,436 373,899 25,861 26,333
- -
Industrial MWh 660,335 604,951 643,468
24,185 24,669
Others MWh 24,842 25,607 25,594
1,676 1,664
Public Bldgs MWh - - -
- -
Street Lights MWh 23,070 23,744 23,772
787,504 745,574
Company Use: MWh 1,772 1,863 1,822
Company/Office/ Housing MWh - - - - -
MWh 787,504 745,574
Company Use: Utility's 488,029 684,648 711,664
Station use - -
- -
Contestable Customers
served by DU

Residential MWh - - -

Commercial MWh 488,029 684,648 711,664

Industrial MWh - - -

Others MWh - - -

Table 1.6 Historical Energy Sales per Customer Type

2012 2013 2014 2015 2016

TR2 (100 MVA 108,730.79 432,517.02 411,321.45 395,175.51 395,683.60
Cabancalan)
242.81
Mabuhay FilCement 5,654.30 36,001.53 49,766.60 35,905.98 312,977.32

TR4 138kV 232,399.63 40,355.56 337,765.86 261,845.27 -
126,506.94
Pardo 3 Meter Quantity 448,954.21 454,693.19 130,114.40 35,604.49 46,707.64
320,599.56
CPPC Meter Quantity 165,331.18 159,969.00 140,508.12 139,943.53 53,359.25
292,009.59
GIS F4 Meter Quantity 199,650.15 176,621.77 148,287.88 79,675.97 174,963.59

MF3MQUIVECO25 - - - 119,297.88 452,274.52

GIS F1 Meter Quantity 108,988.85 208,957.70 175,340.93 97,188.06 2,175,324.82

GIS F5 Meter Quantity 307,742.27 288,795.25 299,527.16 282,119.10

GIS F2 Meter Quantity 254,769.46 80,795.34 109,093.07 132,890.44

CEDC - AYA Meter 513,342.88 489,245.57 524,497.45 470,222.12
Quantity

TOTAL 2,345,563.71 2,367,951.94 2,326,222.93 2,049,868.35

Table 1.7 Historical Energy Recorded per Metering Node

xi Distribution Development Plan 2018-2022

2012 2013 2014 2015 2016
811.26
Cebu Steel Co. 963.71 496.45 496.45 636.05
54,012.00
TR4 138kV - - 48,489.00 74,718.00 -

Consolacion - 23,240.00 24,360.00 25,760.00 53,703.86
50,353.92
GIS F2 43,661.07 7,484.54 7,646.71 21,161.57 11,301.12
9,676.80
GIS F5 49,165.99 52,378.59 51,172.93 32,279.04
-
GIS F1 20,854.08 36,625.56 37,440.00 138.24 32,269.44
45,823.68
GIS F4 17,902.08 31,268.60 31,680.00 - 42,487.20

Naga 19,152.00 16,212.00 24,276.00 - -
71,453.76
Colon Naga - - - 33,798.24 61,709.76
75,264.00
Pardo 2 - - 46,032.00 59,230.08 15,400.00
524,266.81
Pardo 3 54,096.00 81,648.00 - 54,667.20

Mabuhay FilCement 1,960.00 6,412.00 8,456.00 -

TR2 (100 MVA Cabancalan) 65,464.00 72,128.00 49,784.00 76,675.20

CPPC 62,720.00 31,360.00 61,600.00 10,473.12

CEDC - AYA 75,936.00 73,248.00 67,872.00 85,344.00

TCPI 15,820.00 16,450.00 15,120.00 13,720.00

TOTAL 427,694.93 448,951.75 474,425.09 488,600.73

Table 1.8 Historical Coincident Peak Demand Recorded per Metering Node

1.9 System Loss

Summary of segregated distribution system energy and losses from 2011 to 2016 are shown in
the Table 1.9.

Energy Input Energy Output Energy Output System Losses System Losses
(%)
(kWh) (kWh) (%) (kWh)
9.66%
2011 2,349,039,953 2,120,454,127 90.27% 226,813,588 8.85%
2012 7.79%
2013 2,524,295,733 2,300,959,091 91.15% 223,336,642 7.83%
2014 7.57%
2015 2,621,676,096 2,417,353,232 92.21% 204,322,864 6.81%
2016
2,742,651,245 2,527,846,141 92.17% 214,805,104

2,797,473,420 2,585,703,554 92.43% 211,769,866

2,994,604,838 2,790,610,478 93.19% 203,994,272

Table 1.9 Historical Segregated Distribution System Energy

System Losses System Losses Technical Losses Non-technical Losses

(kWh) (%) (kWh) (kWh)

2011 226,813,588 9.66% - -
2012
2013 223,336,642 8.85% - -
2014
2015 204,322,864 7.79% 159,230,107 45,092,827
2016
214,805,104 7.83% 171,438,880 43,366,224

211,769,866 7.57% 172,936,752 38,833,115

203,994,272 6.81% 177,838,178 26,156,094

Table 1.10 Historical Segregated Distribution System Loss

Distribution Development Plan 2018-2022 xii

Technical Losses 2016 Energy Composition
(kWh)
6% Non-technical Losses
(kWh)
1%

Energy Output
(kWh)
93%

Figure 1.9 2016 Energy Composition (%)

xiii Distribution Development Plan 2018-2022

DISTRIBUTION PLANNING PROCESS

2.1 Distribution Planning Procedures

The distribution planning procedure of VECO has adopted the recommended distribution
planning procedure of ERC as stated in the ERC Resolution 17 of 2011, “Resolution Adopting the
Investor-Owned Electric Distribution Utility Planning Manual”.

This procedure starts with the updating of distribution network, historical system statistics
including but not limited to historical energy and demand, substation and line loading, incoming large
customers as well as gathering relevant information from other organizations.

Forecasting of future system energy and demand is done to initiate the planning of future
projects. The forecasting models used were verified and tested according to its accuracy and validity.
The simulation is conducted for the historical (base year) and forecasted demand to identify and
quantify the problems and deficiencies of the existing distribution facilities.

Based on the identified problems and deficiencies, projects solutions will then formulated to
solve the identified and quantified problems. Problems and deficiencies in capacity, safety and
regulatory compliance shall be deemed mandatory to be addresses. The project ideas are then validated
whether they are technically feasible and practical to implement.

The solutions to the problems that passed the technical criteria were evaluated for economic or
financial feasibility. The least cost analysis is conducted for problems that are deemed “mandatory
projects”. For “desirable” projects which are optional, the net present value of benefits and costs must
be positive or the benefit/cost ratio must be greater than one. The problems that have only one
solution, necessary justification of its necessity and/or benefit is provided.

The prioritization of all projects is then identified. The list of prioritization is based on the
provisions of ERC in the same resolution. A summary of VECO’s distribution planning procedure is
presented in the figure below.

Distribution Development Plan 2018-2022 xiv

1 • Data Gathering
2 • Forecasting
3 • Performance Assessment
4 • Project Formulation
5 • Technical Evaluation
6 • Economic/Financial Evaluation
7 • ERC CapEx Application

Figure 2.1 General Distribution Planning Procedure

2.2 Forecast Methodology

Accurate energy and demand forecast is a critical component in the proper identification of the
system inadequacies related to safety, capacity, reliability, statutory requirements, etc. and the
corresponding projects to address these issues. Accurate forecast will entail minimal opportunity losses.

Forecasting models used by VECO were developed using regression analysis of the historical
data. The historical data of the latest six (6) years were gathered and used for forecasting. The
forecasting models formulated were tested to ensure validity. The multiple R statistics and adjusted are
assured to be greater than 99% for the model to be valid. Predictors or independent variable must also
be tested for their validity using p-value and t-statistic. For the variable to be valid, the p-value should
be lower than 0.1 while the t-statistic should be greater than 2 or less than -2. The models that did not
pass the tests were rejected.

The best forecasting model is selected and used in determining the future load of the
distribution system. The mean absolute percentage error or MAPE should be computed. The selected
model should yield an error of less than or equal to 3%. If the forecasting models fail on both the validity
test and accuracy test, additional data or the application of some variants in the forecasting model
should be considered. Erratic trend that cause abnormalities in the forecast should be removed before
analyses. The flow chart below describes the general forecasting procedure.

xv Distribution Development Plan 2018-2022

Figure 2.2 General Distribution Planning Procedure

2.3 Power System Modeling and Analysis

VECO’s distribution system is a dynamic, robust and complex distribution system. Because of its
inherent complexity, the system cannot be evaluated and measured directly. It entails a more complex
method of evaluation. The task to represent the entire model into mathematical presentations of
numerous requirements and limitations specified by the system configuration is conceded to various
simulation softwares. SynerGEE Electric Engineering Analysis Software and Electrical Transient Analysis
Program (ETAP) are used to model VECO’s power system for both load flow analysis and short-circuit
analysis. Other applications and programs may be used depending on the availability, necessity and
appropriateness of the analyses.

The mathematical models are replaced by the SynerGEE Electric Engineering Analysis Software
(SynerGEE or Synergi). It is convenient and reliable method of evaluating the power distribution system
using actual system configuration/line data modeled into the software database and actual measured
electrical parameters needed to conduct load flow simulation. With the accurate data, the engineering
software will give a more relevant and accurate results that will aid in making good decision when
planning system improvement.

Distribution Development Plan 2018-2022 xvi

More so, it provides basic load flow results such as minimum and maximum voltage per line
section, voltage drops, line losses, loading, imbalances and power factor. The SynerGee database also
form part of the distribution system asset management. All electrical equipment and devices installed in
the system such as switches, circuit breakers and other protective devices, capacitors and transformer
can be modeled in SynerGee software.

Technical analysis through load flow simulation was conducted on VECO’s existing and the
proposed distribution. The percent load growth obtained in the yearly forecast will be applied on the
SynerGEE software for the load flow simulation of the existing and proposed distribution system.

The resulting system is also modelled and loaded to ETAP software to analyze the short-circuit
capability of the existing equipment. This is in accordance to the provisions of the Philippine Electrical
Code.

Furthermore, VECO’s system is divided into clusters that are readily identifiable based on its
geography of the franchise area. The distribution system is divided into four clusters—north, east, west
and south clusters. The north cluster includes existing substations such Consolacion (CLC), Pakna-an
(PKN) and Cabancalan (KBL) substations. The east cluster includes existing substations such as Banilad
(BNL), Mabolo (MBL), Mandaue (MDW) and Mandaue Reclamation Area (MRA) substations. The west
cluster includes existing substations such as Ayala (AYL), Camputhaw (CPH), Lorega (LRG) and Calamba
(CLB) substations. Lastly, the south cluster includes existing substations such as Don Gil Garcia (DGG),
Pardo (PRD), Talisay (TLS) and Naga (NGA) substations.

2.4 Project Idea Generation

The results of the load flow simulation of VECO’s existing distribution system, during normal and
contingency states, problems and deficiencies may arise. These are identified as safety, capacity, power
quality, technical losses or reliability issues. There are also issues that may arise from VECO’s need to
serve customer requirement and rural electrification.

Projects are then formulated to address the identified issues and deficiencies. There can be as
many solutions that can solve the problem, however, these are yet to be evaluated both on its technical
and economical soundness.

2.5 Technical Criteria

Each possible solution initially determined as viable for implementation to address the identified
issues and deficiencies is evaluated in its technical soundness. These are all based in the ERC Resolution
number 17 of 2011. The substation capacity is compared based on the maximum rated capacity (MVA)
of the power transformer and the forecasted load of each transformer. Additional capacity should be
designed to be augmented and implemented on the forecasted year that the total interconnected group
or cluster is 70% of its total capacity. It should however be noted that the size of augmented capacity is
only enough to have the same interconnected group or cluster reach 70% within the 10-year planning
horizon. Power quality should adhere to the standard set by the Philippine Distribution Code and
Philippine Grid Code. Safety is assessed based on its adherence to the Philippine Electric Code. System

xvii Distribution Development Plan 2018-2022

losses should be maintained and minimized at a percentage equal or less than the stated limit. Rural
electrification is performed by VECO as mandated in the RA 9136 as a function of the distribution utility.

2.5 Economic Criteria

The identified solutions to the issues and deficiencies of the system that have passed the
technical criteria are to be further evaluated in its economic or financial feasibility. The least cost
analysis is conducted for problems that are deemed “mandatory projects”. For “desirable” projects
which are optional, the net present value of benefits and costs must be positive or the benefit/cost ratio
must be greater than one.
The problems that have only one solution, necessary justification of its necessity and/or benefit is
provided.

Other requirements of the network to meet the forecasted demand of additional customers
such as distribution transformers, secondary distribution lines, service drops and metering equipment
are estimated. Non-network projects required to provide efficient service are also estimated.

Distribution Development Plan 2018-2022 xviii

HISTORICAL DATA AND LOAD FORECAST

3.1 Historical Data

The historical data of energy and peak demand per metering point, energy sales and total
number of customer per customer type are shown in the previous chapters.

3.2 Substation Capacity Level/Loading

In the context of this application, VECO’s distribution system is fed through 15 67/23kV
substations with a total aggregated of 693MVA based on the maximum operating capacity of each of the
transformer. It is further broken down into four (4) interconnected groups or clusters—north, east, west
and south clusters.

The north cluster includes existing substations such 1 x 33MVA Consolacion (CLC), 2 x 33MVA
Pakna-an (PKN) and 1 x 33MVA Cabancalan (KBL) substations. The east cluster includes existing
substations such as 1 x 33MVA Banilad (BNL), 2 x 33MVA Mabolo (MBL), 2 x 33MVA Mandaue (MDW)
and 1 x 33MVA Mandaue Reclamation Area (MRA) substations. The west cluster includes existing
substations such as 1 x 33MVA Ayala (AYL), 2 x 33MVA Camputhaw (CPH), 2 x 33MVA Lorega (LRG) and 1
x 33MVA Calamba (CLB) substations. Lastly, the south cluster includes existing substations such as 2 x
33MVA Don Gil Garcia (DGG), 1 x 33MVA Pardo (PRD), 1 x 33MVA Talisay (TLS) and 1 x 33MVA Naga
(NGA) substations.

3.3 Forecasting

Regression analysis is used in developing the models for forecasting. The developed forecasting
models are tested for validity. The validity test includes R2 and adjusted R2 statistics which values should
be at least 99% for the model to be valid. Also the predictors or independent variables are also tested

for their validity using at p-value where values should be lower than 0.1 and t-statistics where values
should be greater than 2 or less than -2. Mean Absolute Percentage Error (MAPE) is also evaluated and
computed which value should not exceed 5%.

kWh SALES

YEAR DATA REMARKS
2011 2,123,696 Historical
2012 2,255,502 Horizon
2013 2,349,792
2014 2,429,571
2015 2,553,718
2019 2,831,169
2020 2,883,172

Note: Excluding 69 kV customers, SM Seaside City, and Robinsons Galleria

xix Distribution Development Plan 2018-2022

MODEL FORECASTING VALIDITY TESTS ACCURACY REMARKS
NO MODEL TEST
1 Coeff adj R2 t-Stat p-Value MAPE Passed -
2 110,573.8376t + a 0.998 54.9136 0 Selected
2,565,991.0049 b 0.9982 400.1311 0 0.54%
3 a 1.1908
999.7721t2 + b 0.9976 48.241 0.2996 0.50% Failed
109,174.9629t + c 240.0403 0
2,555,650.6197 a -0.0333 0 0.51% Failed
b 1.0031
-16.7199t3 + 0.9755
1,008.6844t2 + c 12.3529 0.3897
109,456.9123t +
2,555,813.0850 0.0011

d 193.265 0
Table 3.1 Forecasting

3.3 Demand Forecast per Cluster

The 23kV distribution system of the VECO is grouped into cluster—north, east, west and south. Each
cluster is forecasted and analyzed independently of the other cluster. The tables below show the
forecasted load (MVA) and percent loading of each transformer per substation in their respective
clusters.

Consolacion TR1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Pakna-an TR1
Pakna-an TR2 27.14 28.30 29.45 30.60 31.76 32.91 34.07 35.22 36.38 37.54
Cabancalan TR1 82.25% 85.75% 89.25% 92.74% 96.24% 99.74% 103.24% 106.74% 110.24% 113.75%
22.25 23.21 24.17 25.13 26.09 27.05 28.01 28.97
67.42% 70.32% 73.24% 76.15% 79.05% 81.96% 84.88% 87.79% 29.93 30.90
22.25 23.21 24.17 25.13 26.09 27.05 28.01 28.97 90.71% 93.62%
67.42% 70.32% 73.24% 76.15% 79.05% 81.96% 84.88% 87.79% 29.93 30.90
26.12 27.24 28.37 29.49 30.62 31.75 32.88 34.01 90.71% 93.62%
79.14% 82.55% 85.95% 89.37% 92.78% 96.21% 99.63% 103.06% 35.14 36.27
106.49% 109.92%
Table 3.2 North Cluster Forecasted Loading without Project

Banilad TR1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Banilad TR2
Mandaue TR1 18.36 19.13 19.92 20.73 21.54 22.37 23.22 24.07 24.95 25.83
Mandaue TR2 55.62% 57.98% 60.37% 62.80% 65.28% 67.80% 70.35% 72.95% 75.59% 78.27%
18.36 19.13 19.92 20.73 21.54 22.37 23.22 24.07 24.95 25.83
55.62% 57.98% 60.37% 62.80% 65.28% 67.80% 70.35% 72.95% 75.59% 78.27%
19.24 20.02 20.80 21.61 22.42 23.25 24.09 24.95 25.82 26.70
58.31% 60.65% 63.04% 65.47% 67.95% 70.46% 73.01% 75.60% 78.24% 80.92%
19.24 20.02 20.80 21.61 22.42 23.25 24.09 24.95 25.82 26.70
58.31% 60.65% 63.04% 65.47% 67.95% 70.46% 73.01% 75.60% 78.24% 80.92%

Distribution Development Plan 2018-2022 xx

Mabolo TR1 19.14 19.96 20.79 21.64 22.51 23.39 24.28 25.19 26.11 27.05
57.99% 60.48% 63.01% 65.58% 68.21% 70.87% 73.58% 76.33% 79.13% 81.97%
27.05
Mabolo TR2 19.14 19.96 20.79 21.64 22.51 23.39 24.28 25.19 26.11 81.97%
57.99% 60.48% 63.01% 65.58% 68.21% 70.87% 73.58% 76.33% 79.13% 25.49
77.25%
MRA TR1 20.63 21.14 21.65 22.17 22.71 23.25 23.79 24.35 24.92
62.52% 64.05% 65.61% 67.19% 68.81% 70.44% 72.10% 73.79% 75.51%

Table 3.3 East Cluster Forecasted Loading without Project (but including Banilad TR2)

Ayala TR1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Camputhaw TR1
Camputhaw TR2 21.147 22.043 22.9543 23.881 24.823 25.7803 26.7529 27.7409 28.7442 29.7628
64.08% 66.80% 69.56% 72.37% 75.22% 78.12% 81.07% 84.06% 87.10% 90.19%
Lorega TR1 29.7878 30.8436
Lorega TR2 21.93 22.855 23.7963 24.754 25.7281 26.7185 27.7252 28.7483 90.27% 93.47%
Calamba TR1 66.45% 69.26% 72.11% 75.01% 77.96% 80.97% 84.02% 87.12% 29.7878 30.8436
90.27% 93.47%
21.93 22.855 23.7963 24.754 25.7281 26.7185 27.7252 28.7483 31.8765 32.6962
66.45% 69.26% 72.11% 75.01% 77.96% 80.97% 84.02% 87.12% 96.60% 99.08%
20.005 20.724 21.4556 27.9668 28.7235 29.4929 30.2748 31.0694 31.8765 32.6962
60.62% 62.80% 65.02% 84.75% 87.04% 89.37% 91.74% 94.15% 96.60% 99.08%
20.005 20.724 21.4556 27.9668 28.7235 29.4929 30.2748 31.0694 31.9096
60.62% 62.80% 65.02% 84.75% 87.04% 89.37% 91.74% 94.15% 96.70% 33.07
23.285 24.299 25.3313 26.3819 27.4508 28.5381 29.6436 30.7674 100.21%
70.56% 73.63% 76.76% 79.95% 83.18% 86.48% 89.83% 93.23%

Table 3.4 West Cluster Forecasted Loading without Project

Don Gil Garcia TR1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Don Gil Garcia TR2
26.16 27.18 28.35 29.36 30.37 31.38 32.39 33.40 34.41 35.42
Pardo TR1 79.28% 82.37% 85.90% 88.96% 92.02% 95.08% 98.15% 101.22% 104.28% 107.35%
Talisay TR1
Naga TR1 26.16 27.18 28.35 29.36 30.37 31.38 32.39 33.40 34.41 35.42
79.28% 82.37% 85.90% 88.96% 92.02% 95.08% 98.15% 101.22% 104.28% 107.35%

26.77 28.86 30.18 31.20 32.22 33.24 34.26 35.28 36.31 37.33
81.13% 87.46% 91.47% 94.55% 97.64% 100.73% 103.82% 106.92% 110.02% 113.12%

27.21 36.81 40.26 42.86 43.87 46.33 60.23 62.31 64.38 66.46
82.45% 111.54% 122.00% 129.87% 132.95% 140.38% 182.52% 188.80% 195.09% 201.38%

27.66 32.99 35.84 38.56 39.57 40.59 41.60 42.62 43.63 44.65
83.81% 99.97% 108.60% 116.84% 119.91% 122.98% 126.06% 129.14% 132.21% 135.29%

Table 3.5 South Cluster Forecasted Loading without Project

xxi Distribution Development Plan 2018-2022





Accomplished Projects

Underground Distribution

Accomplished Projects

UDS Phase 1B

March 13, 2017

The Underground Distribution Project Phase 1b addresses VECO’s compliance to the statutory
requirement of the city - City Ordinance No. 1894 dated April 25, 2001; in order to improve the
landscape and panorama of the highways and road areas. Inherently, the underground
distribution system improves the reliability of the system and the safety of the general public.
This project spanning from Fuente Osmena Circle to Cor. P. del Rosario, with a total length of
approximately 1,600m, is constructed as an underground distribution system. The hybrid
underground distribution system prioritizes the secondary lines and diverts the routes for primary
conductors.
The UDS phase 1b project has a total cost of Php ________________.
The substation expansion project had a total cost of Php _______________.

1
Distribution Development Plan 2018-2022

Substation Project

Accomplished Projects

Expansion: Talisay Tr2
December 23, 2016

Talisay substation has an existing transformer which has a maximum rated capacity of 33MVA.
With the projected developments in the South Road Properties and the entry of large loads in the
southern region of the franchise area, VECO added another 33MVA 67/23kV transformer to the
existing substation. The south cluster is composed of 2 x 33MVA Don Gil Garcia, 1 x 33MVA Naga,
1 x 33MVA MVA Pardo and 1 x 33MVA MVA Talisay. Without the project, the group would be
loaded by 130.182 MVA or 78.898%.

The substation expansion project has a total cost of Php _______________.

Distribution Development Plan 2018-2022 2

Substation Project

Accomplished Projects

Expansion & Rehab: Banilad Tr2

September 29, 2017

Banilad substation has an existing transformer which has a maximum rated capacity of 33MVA.
With the projected developments in the Cebu IT Park and the entry of some large loads in the
eastern region of the franchise area, VECO rehabilitated the existing substation and added
another 33MVA 67/23kV transformer. The east cluster is composed of 2 x 33MVA Mabolo, 2 x
33MVA Mandaue, 1 x 33MVA MVA MRA and 1 x 33MVA MVA Banilad. Without the project, the
group would be loaded by 130.182 MVA or 78.898%.
The substation expansion project had a total cost of Php _______________.

3
Distribution Development Plan 2018-2022

Substation Project

Accomplished Projects

Lot Acquisition: San Fernando
December 10, 2016

This lot acquisition is a prerequisite project to accommodate a new substation in the Southern
Region of the franchise area. The lot is determined to be located at San Fernando because it is an
ideal location to serve the load growth in the southern franchise area. If not implemented, the
south cluster would exceed 70.0% loading.

The cost of acquisition of the lot is at Php 8,000,000.00.

Distribution Development Plan 2018-2022 4

Substation Project

Accomplished Projects

Lot Acquisition: Lorega B

July 3, 2017

This lot acquisition is a prerequisite project to accommodate an additional substation in the
central region of the franchise area. This substation, as forecasted, will suffice the need for
additional transformation capacity. The lot is determined to be located at Lorega because it is an
ideal location to serve the fast growing establishments in the franchise area. If not implemented,
the foreseen substation project will be sited in a different location farther from the center of the
loads to be served which may then result increased losses since there are scarcely any lot available
and viable in constructing a substation near its identified loads. Furthermore, the existing
substation lots adjacent to it, by then, can no longer accommodate an additional transformer
because of the limited in space or area. This lot will accommodate the foreseen and planned
project— TR 3 of Lorega Substation.
The cost of acquisition of the lot is at Php 26,718,000.00.

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Distribution Development Plan 2018-2022

Substation Project

Accomplished Projects

Lot Acquisition: Subangdaku
July 3, 2017

This lot acquisition is a prerequisite project to accommodate an additional substation in the
Eastern Region of the franchise area. This substation, as forecasted, will suffice the need for
additional transformation capacity. The lot is determined to be located at Subangdaku because it
is an ideal location to serve the fast growing establishments in the franchise area. If not
implemented, the foreseen substation project will be sited in a different location farther from the
center of the loads to be served which may then result increased losses since there are scarcely
any lot available and viable in constructing a substation near its identified loads. Furthermore, the
existing substation lots adjacent to it, by then, can no longer accommodate an additional
transformer because of the limited in space or area.

The cost of acquisition of the lot is at Php 27,242,000.00.

Distribution Development Plan 2018-2022 6

7
Distribution Development Plan 2018-2022

Ongoing Projects

Underground Distribution

2018 Projects

UDS Phase 3

February 2019

The Underground Distribution Project Phase 3 addresses VECO’s compliance to the statutory
requirement of the city - City Ordinance No. 1894 dated April 25, 2001; in order to improve the
landscape and panorama of the highways and road areas. Inherently, the underground
distribution system improves the reliability of the system and the safety of the general public.
This project spanning from Cor. Sikatuna St. to Cor. Imus St., with a total length of approximately
1,000m, is constructed as an underground distribution system. The hybrid underground
distribution system prioritizes the secondary lines and diverts the routes for primary conductors.
The UDS phase 2 project has a total cost of Php 92,540,371.00.

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Distribution Development Plan 2018-2022

Primary Distribution

2018 Projects

Cansaga Bay Bridge Cable
December 2018

The Cansaga Bay Bridge Cable is the interconnection between Paknaan and Consolacion 23kV
lines by installing power cables along the sides of the Cansaga Bay Bridge. The purpose is to
optimize the loading of the future two-transformer Consolacion Substation and to provide another
power highway apart from the existing 23kV line along the Cebu North Coastal Road.

The Cansaga Bay Bridge Cable had a total cost of Php 27,076,918.00.

Distribution Development Plan 2018-2022 20

Substation Project

2018 Projects

SMFI Switching Station

February 2019

This project is a customer-driven project. It is intended to supply the demand of a new 69kV
customer, SMFI. The project will construct a 69kV Switching Station with a single bus single
breaker configuration.
The SMFI Switching station had a total cost of Php 24,476,542.00.

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Distribution Development Plan 2018-2022

Subtransmission Project

2018 Projects

SMFI Interconnection
December 2018

In line with the project of SMFI Switching Station, the SMFI Interconnection project will provide
capacity for the switching station. The project will construct a 0.6 circuit kilometer 795 MCM ACSR
double circuit 69kV cut in line interconnecting the bus with the existing VECO subtransmission
line.

The substation expansion project had a total cost of Php 4,009,623.00.

Distribution Development Plan 2018-2022 22

Subtransmission Project

2018 Projects

MFI to San Fernando Line

February 2019

Talisay substation has an existing transformer which has a maximum rated capacity of 33MVA.
With the projected developments in the South Road Properties and the entry of some large loads
in the southern region of the franchise area, VECO expanded the existing substation and added
another 33MVA 67/23kV transformer. The south cluster is composed of 2 x 33MVA Don Gil Garcia,
1 x 33MVA Naga, 1 x 33MVA MVA Pardo and 1 x 33MVA MVA Talisay. Without the project, the
group would be loaded by 130.182 MVA or 78.898%.
The substation expansion project had a total cost of Php _______________.

23
Distribution Development Plan 2018-2022

Subtransmission Project

2018 Projects

San Fernando to MFI Line
December 2018

Talisay substation has an existing transformer which has a maximum rated capacity of 33MVA.
With the projected developments in the South Road Properties and the entry of some large loads
in the southern region of the franchise area, VECO expanded the existing substation and added
another 33MVA 67/23kV transformer. The south cluster is composed of 2 x 33MVA Don Gil Garcia,
1 x 33MVA Naga, 1 x 33MVA MVA Pardo and 1 x 33MVA MVA Talisay. Without the project, the
group would be loaded by 130.182 MVA or 78.898%.

The substation expansion project had a total cost of Php _______________.

Distribution Development Plan 2018-2022 24

Subtransmission Project

2018 Projects

San Fernando to TCPI Line

February 2019

Talisay substation has an existing transformer which has a maximum rated capacity of 33MVA.
With the projected developments in the South Road Properties and the entry of some large loads
in the southern region of the franchise area, VECO expanded the existing substation and added
another 33MVA 67/23kV transformer. The south cluster is composed of 2 x 33MVA Don Gil Garcia,
1 x 33MVA Naga, 1 x 33MVA MVA Pardo and 1 x 33MVA MVA Talisay. Without the project, the
group would be loaded by 130.182 MVA or 78.898%.
The substation expansion project had a total cost of Php _______________.

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Distribution Development Plan 2018-2022

The 2018 Projects

Underground Distribution

2019 Projects

UDS Phase 4

February 2020

The Underground Distribution Project Phase 4 addresses VECO’s compliance to the statutory
requirement of the city - City Ordinance No. 1894 dated April 25, 2001; in order to improve the
landscape and panorama of the highways and road areas. The UDS Phase 4 is a continuation
project of diverting the overhead wires along the Sinulog route.
This project spanning from Cor. Imus St. to Cor. General Echavez St., with a total length of
approximately 400m, is constructed as an underground distribution system. The hybrid
underground distribution system prioritizes the secondary lines and diverts the routes for primary
conductors.
The UDS phase 4 project has a total cost of Php 73,261,127.00.

27
Distribution Development Plan 2018-2022

Substation Project

2019 Projects

Subangdaku Substation
December 29, 2017

This project involves the installation of a single 25/33 MVA Transformer at Subangdaku Lot. The
project will provide an additional capacity for the eastern cluster. The substation would cater to
the increasing distributed loads and spot loads like that of Gatewalk and Mandani Bay.

The substation expansion project had a total cost of Php 84,959,868.00.

Distribution Development Plan 2018-2022 28

Substation Project

2019 Projects

Lahug Substation

September 29, 2017

This project involves the installation of a single 25/33 MVA Transformer at Lahug Lot which will
provide additional capacity for the western cluster. The substation would cater to the increasing
distributed loads and spot loads like that of IT Park and Lahug in the western cluster of the
franchise area.
The substation expansion project had a total cost of Php 120,884,053.00.

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Distribution Development Plan 2018-2022

Substation Project

2019 Projects

Mambaling Substation
December 10, 2016

An installation of 25/33 MVA transformer at Mambaling lot would provide an additional capacity
to the south cluster. This will cater the upcoming load growth and spot load particularly SRP areas.

The substation expansion project had a total cost of Php 142,756,686.00.

Distribution Development Plan 2018-2022 30

Substation Project

2019 Projects

Rehab: Pakna-an Substation

September 29, 2017

This project of rehabilitation of Paknaan substation involves the redesigning and reconfiguration
of the substation, which primarily involves increasing clearances between live equipments and
providing an accessible work site for maintenance and other manual operation necessary in the
substation.
The substation expansion project had a total cost of Php 70,118,000.00

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Distribution Development Plan 2018-2022

Substation Project

2019 Projects

Lot Acquisition: Tayud Lot
December 10, 2016

This project involves the installation of a single 25/33 MVA Transformer at Tayud Lot which will
provide additional capacity for the northern cluster. The substation would cater to the increasing
distributed loads and spot loads of northern region.

The substation expansion project had a total cost of Php 75,244,127.00.

Distribution Development Plan 2018-2022 32

Subtransmission Project

2019 Projects

Lorega to Camputhaw Line

February 2019

Considering the forecasted load of each substation and the proposed additional transformers to
the existing distribution system, the 69kV NGCP Quiot-DGG Line feeding the substations—
Camputhaw (2 x 33MVA), Calamba (2 x 33MVA) and DGG (1 x 33MVA of 2 transformers), is non-
compliant to the single-outage contingency criterion of ERC Resolution 17 of 2011.
The project spanning from VECO Lorega Substation to VECO Camputhaw substations will string a
3-Ø 795 MCM ACSR 69 kV circuit with a approximate length of 1.6km. The project will address
reliability criterion non-compliance of the subtransmission system.
The subtransmission project had a total cost of Php 6,000,057.00.

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Distribution Development Plan 2018-2022