Republic of the Philippines

ENERGY REGULATORY COMMISSI

San Miguel Avenue, Pasig City

IN THE MATTER OF THE

APPLICATION FOR THE
APPROVAL OF THE
UPGRADING OF THE
PANITAN-NABAS 138kV
TRANSMISSION LINE, WITH
PRAYER FOR THE ISSUANCE
OF A PROVISIONAL
AUTHORITY

ERC CASE NO. 2014-181 RC

NATIONAL GRID
CORPORATION OF THE DO.CRETEl)
PHILIPPINES (NGCP), ..ld.
nate:. ~~\~~.!U
Applicant.
E.,-: w: -
J(- - - - - - - - - - -- - - - - - - - - - - - -J(

DECISION

Before the Commission for resolution is the applicati~n filed on.

12 December 2014 by the National Grid Corporation of the
Philippines (NGCP) for approval of the upgrading of the Panitan-
Nabas 138kV Transmission line, with prayer for the issuance of a
provisional authority.

Having found said application. sufficient in form and in

substance with the required fees having been paid, an Order and a
Notice of Public Hearing, both dated 16 March 2015, were issued
setting the case for initial hearing on 26 May 2015.

In the same Order, NGCP was directed to cause the publication

of the attached Notice of Public Hearing, at its own expense, twice
(2X)for two (2) successive weeks in two (2)' newspapers of general
circulation in the Philippines, with the date of the last publication
to be made not later than ten (10) days before the date of the
scheduled initial hearing. It is also directed to inform the consumXers
within its franchise area, .by any other means available and /

. . . If.
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 20f14

appropriate, of the filing of the instant application, its reasons

therefor, and of the scheduled hearing thereon.

The Office of the Solicitor General (OSG), the Commission on

Audit (COA) and the Committees on Energy of both Houses of
Congress were furnished with copies of the Order and Notice of
Public Hearing and were requested to have their respective duly
authorized representatives present at the initial hearing.

Likewise, the Offices of the Mayors of Quezon City and Cebu

City and the Municipalities of Panitan and Nabas were furnished with
copies of the Order and Notice of Public Hearing for the appropriate
posting thereof on their respective bulletin boards.

On February 20,2015, SORECOI filed its "Pre-Trial Brief'.

During the 26 May 2015 initial hearing, only NGCP appeared.

No intervenor/oppositor appeared nor was there any
intervention/ opposition registered.

At the said hearing, NGCP presented its proofs of compliance

with the Commission's posting and publication of notice
requirements which were duly marked as Exhibits "D" to "R".
Thereafter, it conducted an expository presentation of its application.

At the termination of the expository presentation, NGCP

presented its witness Engr. Christian B. Ereno, Head of the Visayas
System Planning Division of NGCP, who testified in support of the
application.

In the course of his direct testimony, additional documents

were identified and duly marked as exhibits. Thereafter, the
Commission propounded cIarificatory questions on the said witness
and directed the submission of various documents.

On 06 July 2015 and 16 July 2015, NGCP filed its "Compliance"

and "Formal Offer of Evidence", respectiv~

f
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 3 of 14

Finding the said evidence relevant and material, the

Commission hereby accepts and admits the exhibits contained in
NGCP's "Formal Offer of Evidence" and the same shall be considered
in the evaluation of this case.

DISCUSSION

1. PROJECT DESCRIPTION

The Project involves the construction of 123 new steel tower

structures along Panitan-Nabas 138 kV line adopting a new wind
design criteria of 270 kph (from 240 kph). The typical tower design
parameters for the proposed transmission line structures are as
follows:

Proposed Upgrading of Pan itan-Nab as 138kV

Transmission Lines
Tower Type Suspension/ Line Wind Span
Tension/ Angle (m)
Dead End (Degree)
DTISUS-ZI-138 Suspension 0-2 400
Suspension/ 0-5 400
DT1ten5-Z1-138
Tension
DTlten15-Z1-138 Tension 0-15 400
DTlten-ZI-138 Tension 0-45 400
DTlde45-Z1-138 Dead End 0-45 300

These towers shall require construction of new foundations

suitable for the new wind design criteria. Existing limits for the.
rights-of-way for the Panitan-Nabas 138kV line shall be utilized.
However, additional rights-of-way may be required, as other towers
shall be located at new sites to be able to construct new fOundatiO%

y
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 4 of 14

2. PROJECT RATIONALE

The project is intended to improve the reliability of the Panitan-

Nabas 138kV Transmission Line which suffered catastrophic damage
due to Typhoon Yolanda in 2013.

3. Diagram

Below is the restoration scheme for the 138 kV transmission

system in the northern part of the Panay Grid:

Nabas

Panitan
Barotac
Vieio

Dingle

Sta. Barbara
Legend:
Portions with toppled tower structures
- De-energized portion of the line
_. - Temporary by-pass lines

4. PROJECT COST

The estimated capital investment for these proposed projects

and activities to be implemented amounted to Nine Hundred Thirty-
Three Million Seven Hundred Seventy-Four Thousand One Hundred
Ninety-One Pesos and 9n/10 (PhP 933.774,,91.9 ¥
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 5 of 14

The contract for the supply of materials for the proposed

projects will be assigned to qualified suppliers and contractors
following a competitive bidding and selection process. The funding
will be sourced through NGCP's Internal Cash Generated (ICG) fund.

The proposed projects will be subject to optimization following

the principles found in the Rules in Setting the Transmission
Wheeling Rates (RTWR).

5. NEED FOR THE PROJECT

Temporary Restoration

Restoration works were conducted to establish by-pass

transmission lines that will link the remaining undamaged portions of
the 138 kV line and provide transmission link towards Nabas
Substation. As an interim scheme, Emergency Restoration System
(ERS), light-weight modular towers and steel pole structures (being
used for 69 kV overhead lines) were used for the by-pass lines. The
ERS utilized a 1 x 795 MCM ACSR conductor, while the light-weight
modular towers and steel pole structures utilized a 1 x 336. 4 MCM
ACSR conductor.

Limitation of the Temporary Scheme

The original configuration of the Panitan-Nabas 138 kV Line,

which utilizes 795 MCM ACSR conductor, can transmit up to 180 MW
of power. On the other hand, the temporary scheme has a limited
transfer capacity of 100 MW due to the presence of the by-pass line
which utilizes smaller conductor size.

Some portions of the temporary by-pass lines are located in

difficult terrain and limited area. In addition, the by-pass lines are
supported by mostly steel pole structures designed for lower voltage
level, hence, the design capability of the by-pass lines to meet the
required line clearances is limited. As a result, there is higher
possibility of outage due to line to ground fault which will result to
overloading of the transformers and load curtailment at Panitan
Substation. In addition, more frequent ROW clearing activities will be
required along the by-pass lin.~s in~er to maintain minimum
cleanmee,fromnearbYVegetati0/f'
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 60f14

Use Of Higher Wind Velocity In The Design Of

Transmission Line Structures Affected By Super Typhoon
Yolanda

Being an archipelagic country with 7,100 islands located at the

so called "typhoon alley of the world", the Philippines is exposed to
very strong winds especially during the passage of tropical cyclones.

Over the years, the PAGASA has compiled a database of

typhoons that crossed or made landfall in the Philippines during the
past decades. The frequency of these typhoons from 1948 to 2013 is
presented in the following tables.

Annual Number of Tropical Cyclones in the PAR

Period: 1948-2013
40
_ Number of Tropical CyclOnes
35 Y •• -o.026x -+ 20.22
Ul - Five-year runnIng mean
"<:
o 30 -linear (Five-year runningmean)
•..
U
tJ
~ 25
a.
...
~ 20

'l;
m 15

'"E
:i 10

o
1948 1953 1958 1963 1966 1973 1976 1983 1988 1993 1998 2003 2006 2013
Year

During the 65-year period, an annual average of 19 to 20

typhoons occurred in the Philippine Area of Responsibility (PAR).
The most number of typhoons occurred in 1993 which recorded 32
~least numb" oftypboon,occurredin 1998wbich",ooroed
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 7of14

20
18
16
14
012
I-
~ 10
o
z8
6
4

o
~51~57ro~~~72~~81M870093%~02~
Year

An annual average of 8 or 9 typhoons made landfall/crossed the

country. During the 59 year period, 19 typhoons were recorded to
have made landfall in 1993, which is the highest incidence; while 4
each were recorded in the years 1955, 1958, 1992 and 1997 which is
the least.

Current NGCP Design Basis

The wind loads currently being used by NGCP in the design of

transmission towers are based on the provisions stated in the 2008
Philippine Electrical Code Part 2, particularly the Basic Wind Zoning
Map covering the PhiliPPin/-;/

r
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 8 of 14

Basic Wind Speed is the maximum sustained wind III kph

measured at an interval of 3 seconds at 10 m above ground .

.. ART.?" .I.odlI'iG rQIlCIt.\IH!S U,M>;llc:

,
I
,,
\
.
!~
,
i
I "
,,
~.
~,

~
,
,'.
t"
f
':
•
,
..•..

f
~
"
k
~
.

,j.

.•.. _. ' .
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 9 of 14

Evolution of Wind Design Specifications

The tabulation below illustrates the development of wind design

specifications used in the design of power transmission structures:

Prior to 1970SUP 2008 to

1990S to 2008
present
1970S to 1990S
(3-sec gust
NPC*/ (3-sec gust wind)
TRANSCO* wind)
165 kph 185kph Zone 1: 270
/NGCP* Zone 1: 270 kph Zone 2: 240
Practice Zone 2: 240 kph Zone 3: 160
2000 PEC-2 2008 PEC-2
128 kph* (3-sec gust
Basis/ NPCSpecs NPCSpecs (lO-min wind)
Reference 165kph 185kph sustained wind) Zone 1: 270
Zone 2: 240
'Equiv to k~~ (3-SOtgust
212
wind Zone: 160
"NPC - up to year 2003
*TransCo - 2003 to 2009
-NGCP- 2009 to present

OFFICIAL SEVERE WEATHER BULLETINS ISSUED BY

NDRRMC

The table below is the severe weather bulletins issued by the

National Disaster Risk Reduction and Management Council
(NDRRMC) showing the locations and wind gustiness per period of
Typhoon Yolanda.

SEVERE
WEATHER!
IlULLETIN
DATE TIME CENTER
MAXIMUM HIGHEST r
LOCATION OF o-MONUlli -MrnUffi EQUNALENT
USTAINED MEAN [ SEC GUST
'1I
No.
i
twIND (kph)' GUST.
(kph) I
WIND
L .
1 6-Nov-13 SPM PACIFIC OCEAN
PACIFIC OCEAN
195
215
230
250
[~_

[
=32~O

360~
=:J
2 7-Nov-13 2AM
,
3 SAM PACIFIC OCEAN 215 250 I 360 I
2PM PACIFIC OCEAN 215 250 _. [ 360 1

I
4

4A
r

6PM
453KMSEOF
GUIUAN, SAMAR
225 260 [_37 0

Y
 ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 10 of 14

370 ]
390
I
360
I
360

320
II
WEST OF
10 9-Nov-13 2AM
MINDORO 175 290
I
, 11 8AM WEST PHIL SEA 175 290 1
r~
,
12 2PM OUTSIDE PAR 310 I
As shown in the table below, it is clear that the wind velocities
carried by Super Typhoon Yolanda were greater than the design wind
velocity used on the transmission lines, thus constituting the main
cause of tower toppling.

WIND VELOCITY
NUMBER OF WIND VELOCITY
DURING
TRANSMISSION LINE TOPPLED USED IN DESIGN
YOLANDA
TOWERS (3-sec GUST)
(to-min 13-sec)

Panitan-Nabas 138 kV TIL 134 240 kph 215 kph I 360 kph

Ormoc-Isabel138 kVT/L 74 270 kph 235 kph I 390 kph

Based on the foregoing, the following are the reasons for the use
of higher wind velocity in the design of transmission line structures:

1. There is certainly a need to increase the design wind speeds

to meet the stronger winds carried by typhoons;

2. It may not be practicable to increase the design wind speed

'/f
parameters up to or even greater than the maximum
reco,ded wind speed experienced;
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 11of 14

3. Striking a balance between structural adequacy and cost

implications, NGCP used the proposed design wind velocity
indicated in the table below:

WIND VELOCITY PROPOSED DESIGN

USED IN DESIGN WIND VELOCITY
TRANSMISSION LINE
(3-SEC GUST) (3-SEC GUST)

240 kph 270kph

Panitan-Nabas 138 kVT/L

270kph 300kph
Ormoc-Isabel 138 kVT/L

Proposed Upgrading ofthe Panitan-Nabas 138 kV Line

The project will involve the construction of new steel tower

structures which are in conformity with required design standards for
138 kV lines and will provide more reliable clearances between
overhead lines and nearby vegetation. The new structures will
support the use of power conductors with higher capacity, hence, will
increase the transfer capacity of Panitan-Nabas 138 kV Line from 100
MWto 180 MW.

Relocation of Tower Structures

New transmission line structures will be constructed in lieu of

the toppled tower structures. The new tower structures shall be
located at new sites to be able to construct new foundations that shall
adopt the new wind design criteria.

There is a need to immediately complete the upgrading of the

Panitan - Nabas 138 kV Transmission Line in order to achieve the
following:

1. To minimize exposure to fault along the temporary by-

pass lines for the Panitan - Nabas 138 kV Lines, hence,
will avoid load curtailment in Panitan SUbstatio~

f
ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 12 of 14

2. To achieve maximum transfer capacity of 180 MW along

Panitan - Nabas 138 kV Line; and

3. To retrieve the temporary structures used for the by-

pass lines to ensure sufficient availability of temporary
structures for future emergency use. .

A perusal of the evidence presented herein showed that NGCP's

application for the approval of the upgrading of the Panitan- Nabas
138kV transmission line is in accordance with the provisions of
Republic Act No. 9136 and the "Resolution Amending the Rules for
Approval of Regulated Entities' Capital Expenditure Projects" and
will redound to the benefit of its consumers in terms of continuous,
reliable and efficient power supply as mandated by Republic Act No.
9136 or the Electric Power Industry Reform Act of 2001 (Section 2.
Declaration of Policy - (b) "to ensure the quality, reliability, security
and affordability of the supply of electric power).

WHERFORE, the foregoing premises considered, the

application filed by NGCP for the approval of the upgrading of the
Panitan- Nabas 138kV transmission line, with prayer for provisional
authority, is hereby APPROVED subject to the optimization based on
its actual use and/or implementation during the reset process for the
next regulatory period following the procedures stated in the Rules
for Setting Transmission Wheeling Rates (RTWR) and other relevant
issuances of the Commission.

Relative thereto, NGCP is hereby directed to conduct

competitive bidding for the purchase of major materials in the
implementation of the proposed projects.

Further, NGCP is directed to pay, within fifteen (15) days from

receipt hereof, a total permit fee in the amount of Seven Million
Three Thousand Three
(PhP7,OO3,306.oo), computed"" fOllOWS/1
Hundred Six Pesos
 ERC Case No. 2014-181 RC
DECISION/26 November 2015
Page 13 of 14

Permit Fee = Total Estimated Project Cost X 0.7.5

100

= PhP 933,774,191.90 x 0.75

100

Permit Fee =

SO ORDERED.

Pasig City, 26 November 2015 .

.ERe ----.-\
Office of the Ch.airman '

•• -6r ....•. - __ . ~
.., - .11,1:1111~'III:lj~!~~,III:illl'l
;==B,~Q!9,Q~2.,Q_C,OQ~
,31l."",~
'.II'I~m~ilil) JOSE VICENTE B. SALAZAR
. ~--~~~~ -;.-.
.
--~---;
Chairman & CEO~

(On Leave)
ALFREDO J. NON
w~
GLqRIA VICTORIA
Commissioner Commissio

JOSEFINA PA CIAA. MAGPALE-ASIRIT ERONIMO D. STA. ANA

Co Commissioner

~g/
M
APV /Legal~decision_2014-18trc ngcp
ERC Case No. 2014-181 RC
DECISIONj26 November 2015
Page 14 of 14

Copy Furnished:

1. Attys. Luis Manuel U. Bugayong, Ronald Dylan P.

Concepcion, Mark Anthony S. Actub, Raycell D.
Baldovino andAri Vergil P. Fabros
Counsel for NGCP
National Grid Corporation of the Philippines (NGCP)
NGCP Building, Quezon Avenue cor. BIR Road
Diliman, Quezon City, Metro Manila

2. The Office of the Solicitor General

134 Amorsolo Street, Legaspi Village, Makati City
Metro Manila

3. The Commission on Audit

Don Mariano Marcos Avenue
Diliman, Quezon City, Metro Manila

4. The Senate Committee on Energy

Senate of the Philippines
GSIS Building, Roxas Blvd., Pasay City, Metro Manila

5. The House Committee on Energy

House of Representatives
Batasan Hills, Quezon City, Metro Manila

6. Office of the City Mayor

Quezon City

7. Office of the Municipal Mayor

Municipality of Nabas
Province of Aklan

8. Office of the Municipal May r

Municipality of Panita~ /1
Province of Capiz / L!