III: TRANSMISSION SYSTEM PROFILE... 6 IV: PLANNING CRITERIA V: NEED FOR O&M CAPITAL EXPENDITURES... 16

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3 TABLE OF CONTENTS I: INTRODUCTION... 1 II: EXISTING TRANSMISSION SYSTEM North Luzon Region South Luzon Region Visayas Region Mindanao Region... 5 III: TRANSMISSION SYSTEM PROFILE North Luzon Region South Luzon Region Visayas Region Mindanao Region IV: PLANNING CRITERIA V: NEED FOR O&M CAPITAL EXPENDITURES Substation Secondary Devices Upgrading Replacement of Defective Line Materials and Hardware Implementation of Projects to Control and Mitigate the Effects of Fire and Flood Slope Protection of Transmission Line Structures Acquisition of Spares of High Voltage Equipment, Line Materials and Hardware Construction of Overall and Regional Disaster Command Centers Implementation of Various Environment Preservation and Protection Projects Acquisition of Heavy Equipment, Vehicles,Test Instruments and Linemen Tools.. 21 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 3

4 VI: CAPEX PROGRAM NORTH LUZON CAPEX PROGRAM North Luzon Work Orders North Luzon General Plant Equipment North Luzon Spares SOUTH LUZON CAPEX PROGRAM South Luzon Work Orders South Luzon General Plant Equipment South Luzon Spares VISAYAS CAPEX PROGRAM Visayas Work Orders Visayas General Plant Equipment Visayas Spares MINDANAO CAPEX PROGRAM Mindanao Work Orders Mindanao General Plant Equipment Mindanao Spares VII: CAPEX SUMMARY APPENDIX... 37

5 I. Introduction In line with the mandate of the National Grid Corporation of the Philippines (NGCP) to maintain, operate, expand and improve the high voltage backbone transmission system and facilities throughout the country pursuant to Republic Act 9136 or otherwise known as the Electric Power Industry Reform Act of 2001 or EPIRA, the Operations & Maintenance (O&M) group prepared the 2012 Transmission Development Plan (TDP) Volume II. In particular TDP Volume II is aimed at making the grid more reliable and to address the problems associated with an aging transmission facilities based given the realities of the current regulatory framework. The TDP, as required by the R.A. 9136, shall be submitted to the Department of Energy (DOE), which in turn would be integrated to the Philippine Development Plan (PDP) and the Philippine Energy Plan (PEP). The TDP Volume II shall contain the O&M capital expenditure program, covering the period 2012 to 202. The expenditures is in line with the goals and objectives of the O&M group to achieve the corporate vision of NGCP to build the strongest power grid and maintain the best utility practice in Southeast Asia. The TDP Volume II is one of the three (3) volumes that comprise the 2012 TDP. Volume I covers major network upgrades while Volume III covers the Capital Expenditure (CAPEX) program of System Operations. Volume II is made up of two parts. Part 1 focuses on Capital Expenditures (CAPEX) for the operation and maintenance of the power transmission grid covering the three (3) main islands namely Luzon, Visayas and Mindanao while Part 2 covers the Capital Expenditures (CAPEX) for revenue metering. The major categories of expenditures of TDP Volume II Part 1 are as follows: 1. Substation Secondary Devices Upgrading 2. Replacement of Defective Line Materials and Hardware 3. Implementation of Projects to Control and Mitigate the Effects of Fire and Flood 4. Acquisition of Heavy Equipment, Vehicles,Test Instruments, and Linemen Tools 5. Acquisition of Spares of High Voltage Equipment, Line Materials And Hardware 6. Slope Protection of Transmission Line Structure 7. Construction of Overall and Regional Command Centers 8. Implementation of Various Environment Preservation and Protection Projects The TDP Volume II Part 1 consists of seven (7) chapters. Chapter 1 provides a macro view of Volume II of the Transmission Development Plan. Chapter 2 contains the description of the transmission system in circuit kilometers, the capacities of substations in MVAs and the reactive/capacitive compensation in MVARs presently installed in North Luzon, South Luzon, Visayas and Mindanao Regions. Chapter 3 shows the transmission line profile of the four (4) NGCP regions. It provides information on the existing transmission lines and substations of each region and the major customers it serves. The geographical maps showing the set-up and route of the power system are also included in this chapter Chapter 4 explains the criteria and factors that were considered in preparing the CAPEX program Chapter 5 justifies the necessity of implementing the CAPEX program to sustain TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 1

6 and/or improve the reliability of the system, Chapter 6 provides detailed information on the CAPEX program of each region. Chapter 7 summarizes in tables and graphs the CAPEX Program of the O&M Group. 2 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

7 II. Existing Transmission System 1.0 North Luzon Region Of all the four (4) regions the North Luzon Operations and Maintenance (NLOM) is responsible for operating and maintaining the longest transmission and subtransmission lines with a total length of 5, circuit kilometers. NLOM has also the largest substation installed capacity of 12,597.5 MVA. The region is in charge of transmitting the electric power generation from the different power generating plants in North Luzon Region to the load centers. In order to maintain node voltages within the level prescribed by the Grid Code, a total of 1,210 MVARs capacitors and reactors are installed strategically in the North Luzon grid particularly in Bolo (Kadampat), San Jose and Mexico substations. The table below summarizes the transmission facilities of the North Luzon Region. Voltage Level Table 2.1: NLOM Summary of Existing Transmission Facilities Transmission Lines (ckt-km) Sub- Transmission Lines (ckt-km) Substation Capacity (MVA) Reactive/ Capacitive Compensation (MVAR) 500-kV , kV , kV kV & below , Total 3, , , , South Luzon Region The South Luzon Operations and Maintenance (SLOM) is responsible for transmitting the electric power generation of the different power generating plants in South Luzon Region. While SLOM is responsible for operating and maintaining the shortest length of transmission and sub-transmission lines compared to other regions, it is in-charge of transmitting the biggest generation capacity. Out of the 10,499 MW generation capacity installed in Luzon, SLOM is accountable for transmitting about sixty percent (60%) of this total capacity. The South Luzon O&M has a total transmission and subtransmission line length of 3, circuit kilometers (ckt-km), and total substation capacity of 8, MVA. To maintain node voltages within the level prescribed by the Grid Code, a total of 375 MVAR capacitors and reactors are installed strategically in the South Luzon Grid. SLOM, together with VOM, operates and maintains the one-of-a-kind HVDC system in the country, i.e. the Leyte-Luzon HVDC interconnection. The interconnection between the Luzon and Visayas grids is through HVDC overhead lines and submarine cables. Of the total 863 ckt-km HVDC overhead lines, 345 ckt-km is under the area of responsibility of SLOM. But the whole stretch of submarine cables, ckt-km, is under the area of responsibility of SLOM. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 3

8 With the operation of Wholesale Electricity Spot Market (WESM) in the Visayas, the HVDC link plays a very important role in this competitive electricity trading. Table 2.2 summarizes the transmission facilities of SLOM. Voltage Level Table 2.2: SLOM Summary of Existing Transmission Facilities Transmission Lines (ckt-km) Sub- Transmissi on Lines (ckt-km) Submarine Cable (ckt-km) Substation Capacity (MVA) Reactive/ Capacitive Compensa tion (MVAR) 500-kV , kV DC mh 230-kV 2, , kV kV & below Total 3, , Visayas Region The Visayas Operations and Maintenance (VOM) is responsible for transmitting the electric power generation of the different power generating plants in Visayas Region. VOM is also in charge of the most number of submarine cable interconnection in the country with submarine cable links to six (5) major islands of Leyte, Cebu, Bohol, Negros and Panay. The Samar Island is connected to Leyte through a special transmission line crossing at San Juanico Strait. The overhead transmission and subtransmission infrastructure cover a total of 4, circuit kilometers (ckt-km) length of lines and 3, MVAs substation capacities spread across the region. The transmission infrastructure includes the submarine cables interconnecting the main islands of the region, namely Leyte, Cebu, Bohol, Negros and Panay. To maintain the node voltages within the level prescribed by the Grid Code at any given time, a total of 300 MVARs capacitive compensations connected at 69-kV system are strategically situated throughout the grid to maintain the voltage level within tolerable limits. Likewise, there are reactive compensations with a total aggregate rating of 420 MVAR connected to the 230-kV system and 220 MVAR connected to 138-kV system as components of the island to island submarine cable interconnection intended for voltage correction. The table 2.3 summarizes the transmission facilities of the Visayas Region. 4 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

9 Voltage Level Table 2.3: VOM Summary of Existing Transmission Facilities Transmission Lines (ckt-km) Sub- Transmissio n Lines (ckt-km) Submarine Cable (ckt-km) Substatio n Capacity (MVA) Reactive/ Capacitive Compensa tion (MVAR) 350-kV DC mH 230-kV kV 1, kV & Below , Total 3, , , Mindanao Region The Mindanao Operations and Maintenance (MOM) is responsible for transmitting the electric power generated from the different power generating plants in Mindanao Region. The transmission and sub-transmission assets cover a total length of 5, circuit kilometers (ckt-km) and total substation capacity of 2,792.5 MVA. Of all the regions, MOM operates the second longest transmission and sub-transmission lines, next only to NLOM. To maintain node voltages within the level prescribed by the grid code, a total of MVARs capacitive compensation are installed strategically in the Mindanao grid. Table 2.4 summarizes the transmission facilities of MOM. Voltage Level Table 2.4: MOM Summary of Existing Transmission Facilities Transmission Lines (ckt-km) Sub- Transmission Lines (cktkm) Substation Capacity (MVA) Capacitive Compensation (MVAR) 138-kV 3, , kV & Below , Total 3, , , TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 5

10 III. Transmission System Profile 1.0 North Luzon Region The transmission system under North Luzon Region area of responsibility stretches from Cagayan province to Rizal province and northern portion of Metro Manila. It covers a total of 22 provinces including major cities and urban centers. The backbone of the system is a network of 500-kV Extra High Voltage (EHV) transmission lines that run through the provinces of Pangasinan, Nueva Ecija and Bulacan and a network of 230-kV lines that covers majority of the entire area of North Luzon except areas up to Ilocos Norte which are still served by 115-kV radial lines. Power generated by the Hydroelectric Power Plants in Ambuklao, Binga, Bakun, Magat, San Roque, Casecnan, Pantabangan and Angat and by the Coal Fired Power Plants in Masinloc and Sual are transmitted to the load centers in North and Central Luzon and Metro Manila through these networks of 500-kV and 230-kV transmission lines. The San Jose and (Dona Imelda) Araneta substations operate as the power interchange between North Luzon and South Luzon and together with Taytay(Dolores) Substation also serving as the gateway of power generated from North Luzon to Metro Manila. The North Luzon Region has a total of 29 major substations, 11 load-end substations and 6 power plant switchyards. There are a total of 107 load customers comprising of 41 Electric Cooperatives and Distribution Utilities which include MERALCO; 18 Government Agencies which include 4 Economic Zones; 10 NIA Pumping Stations; 48 Non-Utilities consisting of 13 Cement Plants, 2 Steel Factories, 5 Mining Companies and various industrial plants. These customers are being served at various voltage levels of 230-kV, 115-kV, 69-kV, 34.5-kV and 23-kV. The geographical map of North Luzon Grid as shown on the next page, illustrates the set-up of power systems in the North Luzon Region that include power plants, transmission system, sub-transmission networks and load-end substations. 6 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

11 NORTH LUZON TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 7

12 2.0 South Luzon Region The transmission system under the South Luzon Region area of responsibility is rated at 500-kV and 230-kV. The 230-kV transmission system extends from the provinces of Laguna, Cavite, Batangas and some south portions of Metro Manila down to provinces of Quezon, Camarines Norte, Camarines Sur, Albay and Sorsogon covering a total of eight (8) provinces. The 500-kV EHV transmission system stretches from Dasmariñas Substation in Cavite with one of the lines branching to Ilijan Power Plant to Tayabas Substation in Southern Tagalog Area down to Naga Substation in Bicol Area. Physically, the Tayabas-Naga EHV transmission lines were designed or rated at 500-kV but energized at 230-kV system. Up to this date, the Naga Substation is not yet uprated to 500-kV. The 500-kV transmission lines consist of double-circuit, bundle-of-four, 795 MCM ACSR. Also from Tayabas Substation are similar EHV transmission lines linking San Jose 500-kV Substation of NLOM. The 230-kV transmission system covers a total of 2, ckt-km, consisting of a total of 1,315 structures (steel towers and steel poles). It traverses different types of terrain that is about 60 % plain (open/rice field) and 40 % rugged (mountainous areas). The SLOM and VOM interconnection is through the high voltage DC overhead transmission lines and submarine cables linking Naga Converter Station and Ormoc Converter Station rated at 350-kV DC. The total length of the HVDC overhead lines is lkm., of which lkm is under the area responsibility of SLOM. The total length of submarine cables is lkm., all of which is under the area of responsibility of SLOM. SLOM has a total of 57 power customers, broken down as follows: 36 directly connected industries; 14 electric cooperatives and 7 government utilities / agencies. Almost all the power customers under SLOM are being served at 69-kV level, except for Meralco, which is served at 230-kV, 115-kV and 34.5-kV levels. Furthermore, the Cavite Economic Zone and directly connected government customers are being served at 34.5-kV and 13.8-kV levels, respectively. The South Luzon s power contribution to the load center, through its transmission backbone, accounts for about 60 to 70% of the total power generation in Luzon. The geographical map of South Luzon Grid as shown on the next page, illustrates the set-up of power systems in the South Luzon Region. The map includes power plants, transmission system, sub-transmission networks and load-end substations. 8 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

13 SOUTH LUZON TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 9

14 3.0 Visayas Region The transmission network under the Visayas Region area of responsibility serves as back-bone of the Visayas Grid. The transmission system covers the major islands of Samar, Leyte, Bohol, Cebu, Negros and Panay, consisting of 11 provinces. It is a combination of 230-kV and 138-kV transmission system that are installed strategically across these islands. A 350-kV high voltage DC located at the Northeast part of Visayas serves as interconnection between Visayas and Luzon Grids. The interconnections of transmission systems between the Visayas islands were made possible with the laying out of underwater high voltage submarine cables rated at 230-kV and 138-kV. The bulk of the generation comes from the geothermal fields of Leyte in the Northeastern part. Therefore, the normal power flow in the Visayas region is from the Northeastern to the western part of the region In order for the end consumers to avail of the electric power via the distribution network of their utilities, NGCP continues to operate and maintain the 69-kV subtransmission line assets that are yet to be sold to the qualified distribution utilities. Furthermore, by virtue of ERC decision on ERC Case No dated October 12, 2009 which reclassified a number of 69kV lines in Visayas Grid to transmission assets and ERC Resolution No. 18 dated August 10, 2009 which similarly mandates that Residual Sub-transmission Assets (RSTAs) which has not been disposed by the end of 2010 will be reclassified as transmission/network assets highlighted the need for NGCP to rehabilitate these RSTAs. The Visayas Region has a total of 80 customers, broken down as follows: 12 generation customers owned by private and government entities, 38 non-distribution utilities mostly directly connected industries and government establishments that included Economic Zones, and 30 distribution utilities comprising of private utilities and electric cooperatives. The load customers are being served at different receiving voltage levels, depending on their requirement, through their connection facilities that include dedicated lines and load-end substations. The geographical map for Visayas Grid as shown on the next page, shows the set-up of power generation and transmission systems in the Visayas Region that include power plants, transmission system comprising of high voltage lines and power substations and sub-transmission network. 10 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

15 VISAYAS TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 11

16 4.0 Mindanao Region In Mindanao, with the bulk of power coming from the northern part of the Region, power is transmitted to the Southern, Eastern and Western part through the 138-kV transmission lines. The Region covers 21 provinces, with fifty seven (57) customers, thirty (30) of which are Distribution Utilities with twenty-seven (27) Electric Cooperatives which are connected mainly by either 138-kV or 69-kV lines. Major industries such as cement and steel factories and big distribution utilities in Central and Southern Mindanao are directly connected to the grid at 138-kV level while other customers are served at 69- kv level. MOM operates and maintains 3,058 ckt-km of transmission lines and 2, cktkm of sub-transmission lines that are interconnected via 27 substations and 7 switchyards. To provide for the needed 1,230 MW peak demand in the Mindanao grid, there is a total of 1773 MW installed generating capacity. On the northern and central parts of Mindanao, there are Hydroelectric Plants operated by NPC, the Agus and Pulangi Hydroelectric Plants with a total installed capacity of 982 MW, Iligan Diesel Power Plants (NPC-IPPs) 98 MW, and Mindanao Coal Fired Power Plant (MCFPP), 200 MW. There are two (2) Power Barges at the eastern and southern parts, rated at 100MW each and Diesel Plants, SPCC at General Santos, 50 MW and WMPC at Zamboanga City, 100 MW. There is also geothermal power plant, MGPP, operated by PNOC rated at 95 MW. In the Region, there is still significant number of sub-transmission lines that are not yet divested to the distribution utilities. Hence, NGCP continues to operate and maintain these facilities in order to maintain service reliability of these subtransmission assets. The Geographical Map on the next page illustrates the set-up of transmission system network in the Mindanao Region, including the network of sub-transmission system that links the various customers. 12 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

17 MINDANAO TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 13

18 IV. Planning Criteria The objective of 2012 Transmission Development Plan (TDP), Volume II, Part 1 is to achive reliability by means of minimizing, if not totally preventing, power supply outages. With this objective in mind, a review of the current condition of the existing transmission and sub-transmission lines and substations and associated infrastructures was given utmost importance. One major consideration is the remaining useful life of the assets. With the assets nearing their economic life, it is prudent to anticipate that more maintenance and tests would be performed and more spares and spare parts would be needed and in due time the aging assets have to be replaced The table and graph below shows a summary of the age profile of major NGCP assets: Equipment Table 4: Age Profile of NGCP s Transmission Assets Assets ERC Recommend ed Economic Life Percentag e of Installed Equipment that have reached 50% of Economic Life Percentage of Installed Equipment that have reached 80% of Economic Life Percentage of Installed Equipment that have reached 100% of Economic Life Power Transformer Power Circuit Breaker Potential Transformer Current Transformer Protective Relays Battery and Chargers TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

19 Figure 4: Age Profile of NGCP s Transmission Assets As seen in the table and graph above, an alarming number of the secondary devices of major substations in NGCP have already reached or are nearing their economic life. If these substations are not given utmost attention, a major disturbance may soon be experienced. With the data at hand, the replacement and upgrade of secondary devices of major substations remains a priority thereby enhancing and strengthening the existing protection and control system which would then lead to a more stable and reliable grid. As in the past, typhoons continue hitting the country with a significant number of transmission line structures and substations being severely affected. These continuing occurrences necessitated the need to address concerns on flooding and erosion of foundation. Procurement of spares to replace those damaged by typhoons and the construction of anti-flooding measures to mitigate the effect of flooding brought by these natural calamities have to be implemented.. The Philippines, being archipelagic in nature, poses logistical problems in responding to outages. To provide better service to our customers in case of outages, more spare materials, equipment and logistics have to be stored in strategic locations throughout the country. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 15

20 V. Need for O&M Capital Expenditures In line with the planning criteria set, the following activities have to be implemented in order to meet the PIS targets set forth by the ERC at the beginning of the Third Regulatory Period covering the years 2011 to 2015: a. Substation Secondary Devices Upgrading b. Replacement of Defective Line Materials And Hardware c. Implementation of Projects to Control and Mitigate the Effects of Fire and Flood d. Slope Protection of Transmission Line Structure e. Acquisition of Spares of High Voltage Equipment, Line Materials And Hardware f. Construction of Overall And Regional Command Centers g. Implementation of Various Environment Preservation and Protection Projects h. Acquisition of Heavy Equipment, Vehicles,Test Instruments, and Linemen Tools 1.0 Substation Secondary Devices Upgrading With substantial improvement in the reliable operation of substations by means of the reduction of the undesired operation of the secondary devices, O&M continues its drive to upgrade the secondary devices of critical substations. North Luzon, with the aim of enhancing the reliability of the grid and load sectors in Metro Manila, started the upgrade of Quezon (Balintawak) Substation in 2011 with the plan of upgrading Doña Imelda (Araneta) in These substations are considered as the critical link in transmitting the power from the North to the South. With the age of secondary devices in these substations now over 20 years, instability has started to manifest. Furthermore, a separate Control Room/ Relay Room for the Quezon (Balintawak) Substation is also needed since NGCP and Meralco share the same control building and space would be inadequate for relay panel expansions. Mexico, San Jose and Hermosa Substation on the other hand, play a vital role in the transmission of power from the Northern Region to Metro Manila. With the secondary devices in these substations being in service for 15 years, O&M has already started the upgrading of San Jose and Mexico substation with Hermosa Substation scheduled to start in In 2011, South Luzon O&M upgraded the secondary devices of Biñan substation and the plan to upgrade the secondary devices of Muntinlupa (Sucat) substation has already been started. The Muntinlupa (Sucat) and Biñan substations in South Luzon can be compared with Mexico, San Jose and Hermosa Substations in terms of criticality and functions. These substations are responsible for the transmission of power from the Southern Region to the Metro Manila Area, which is the Load center in Luzon. The secondary devices in these substations also need replacement since most of these devices have been in service for at least 15 years. Calaca Substation also needs a separate control house facility since NGCP shares the same the control building with DMCI power and space would be inadequate for secondary panel expansions. The Calaca secondary upgrading is part of the Calaca Uprating Project of P&E. The Visayas region will also upgrade the critical substations. These are Daan- Bantayan (Talisay), Sta. Barbara and Compostela Substations. The secondary devices of Talisay, Sta. Barbara and Compostela substations are already well beyond the service life. The secondary facilities in these substations are already 13, 16 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

21 17 and 16 years old respectively. The obsolete MBSC of the Bacolod substation will also be replaced. In Mindanao, The Balo-I (Abaga) Substation is the largest Substation in terms of the number of connected lines. Figuratively speaking, it is the heart of the power transmission in Mindanao. It is responsible in transmitting power to various parts of the Mindanao Region. Some of the devices in this substation have been in service for 37 years, thus the secondary devices in this substation are in need replacement. This prompted O&M to upgrade the secondary devices of Abaga substation this NLOM, SLOM, VOM and MOM have also identified other critical substations in need of upgrading and those whose secondary devices have reached the ERC economic life a. 2.0 Replacement of Defective Line Materials and Hardware Of the 19, circuit kilometers (ckt-km) of transmission lines under NGCP, around 2, ckt-km or 14% are 30 years and older while around ckt-km or 4% are 50 years and older. Considering the advanced age of these transmission lines, a considerable number of line materials and hardware are expected to become defective, hence, replacement will be needed. The Graphs below illustrate that from 2011 to October 2012, tripping due to TL conductor and hardware defects constitute 26% of major causes of Forced Outages. This statistics support the need for the replacement of defective line materials and hardware. Major Causes of Forced Outage 48% 5% 21% 26% TL Conductor and Hardware Defects Protection Relay/Control System SS Equipment Trouble Insulator Failure TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 17

22 No. of Foced Outages TL Conductor and Hardware Defects Forced Outages Protection Relay/Cont rol System SS Equipment Trouble Insulator Failure Vegetation Within ROW Violation of safe electrical clearance Outage Implementation of Projects to Control and Mitigate the Effects of Fire and Flood The recent flooding of Hermosa Substation reiterated the need to further review the vulnerability of substations in low-lying areas. The implementation of anti-flooding measures will minimize if not prevent the flooding in these substations. The effectiveness of the anti-flooding measures has already been observed in Mexico, Muntinlupa and Araneta Substations. 18 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

23 The recent Fire Incident at Agus 6 switchyard wherein NGCP s fire- proofing system effectively blocked the fire from spreading to the cable trenches highlights the effectiveness and the subsequent need to further implement Anti-fire Protection measures to correct this deficiency in critical substations. 4.0 Slope Protection of Transmission Line Structures The Philippines is frequently visited by an average of 20 typhoons per year. These typhoons often carry not only high-speed wind but also devastating floodwater. This flooding had caused soil erosion at the transmission line structure foundations and, sometimes, has even caused the toppling of these structures. Hence, it is necessary that remedial measures be implemented immediately whenever these problems occur to strengthen the foundations in preparation for the occurrence of another typhoon. On the average, O&M has been implementing an average of 100 slope protection projects annually. Shown below is a completed slope protection project. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 19

24 5.0 Acquisition of Spares of High Voltage Equipment, Line Materials and Hardware Spares include items such as high voltage primary equipment, and line materials/hardware that should be maintained at all times to answer for immediate or urgent need that may arise from time to time in the course of operating the grid. An optimum level/quantity of spares 1 has to be maintained in order to ensure availability of replacement in case of an unexpected failure of equipment and to avoid further delay in the restoration and prolonged outage. The graph on the next page illustrates the percentages of outage caused by different substation equipment. Substation Equipment Trouble 2% 2% 7% Power Transformer Power Circuit Breaker 38% Disconnect Switch 23% Lightning Arrester Instrument Transformer Capacitor Bank Shunt / Line Reactor 2% 9% 17% Switchgear 1 Please see appendix for optimum level of spares per equipment/material 20 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

25 6.0 Construction of Overall and Regional Disaster Command Centers The construction of disaster command centers will mitigate the effect brought about by the fury of nature. O&M can be forewarned of an impending disaster or calamity that might cause damage to NGCP facilities like typhoon. This would result to a faster response time during power restoration and safety of personnel. 7.0 Implementation of Various Environment Preservation and rotection Projects Some of the projects that will be implemented by NGCP for the years 2012 to 2021 are for environmental compliance like the procurement of SF6 handling units, construction of oil catchment and oil spill containment and other Environmental Protection Projects. The following are the government environmental regulations that NGCP have to be complied with: a. RA 9003/DAO : Ecological Solid Waste Management Act b. RA 6969/DAO 92-29/DAO 04-36/MC 03-11: Hazardous Waste Management and Chemical Management c. DAO 04-08: Revised CCO for Ozone Depleting Substances (ODS) d. DAO 04-01: Chemical Control Order for PCBs e. DAO : Philippine Clean Water Act and its IRR f. DAO : Clean Air Act of the Philippines and its IRR A corresponding penalty for every violation found against these regulations shall be imposed by the government if not acted upon in a given time. 8.0 Acquisition of Heavy Equipment, Vehicles,Test Instruments, and Linemen Tools General Plant Equipment which include items such as substation and line testing and maintenance tools & equipment, line vehicles, heavy equipment, and office & support equipment will from time to time be replaced or upgraded to address the requirements of maintaining the grid. Based on the result of the evaluation made in line with the standardization policy of NGCP, a significant number of vehicles, tools and test equipment are already old, obsolete, unreliable, and costly to maintain not to mention that in some aspect, appropriate equipment are not available to substation and transmission line maintenance personnel (lines and substations). Statistics show that 61% of the existing vehicles are over 10 years old. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 21

26 VI. CAPEX Program With the monitoring of the ERC of the performance of NGCP according to the set parameters and criteria in the Third Regulatory Period, the enhancement of system reliability and integrity were retained as the two main considerations in the development of the O&M CAPEX for As with the 2011 TDP, full compliance to the Grid Code and other energy regulations with due concerns to safety, quality and environmental aspects were also considered. Internally, the TDP supports the programs being espoused by the corporation such as the Quality Management System, Environmental Management System and the Occupational Health and Safety Assessment System. This approach aims to enhance the system performance by the consolidation and integration of procedures, strategies and techniques in addressing technical and administrative issues. 1.0 North Luzon CAPEX Program The Summary of the CAPEX Program of North Luzon is shown below. 22 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

27 Million (Php) 1.1 North Luzon Work Orders The proposed Work Orders of North Luzon are intended to improve network reliability. These include upgrading of substation control and monitoring system for reliable on-line monitoring of critical substation equipment; replacement of old and unreliable electromechanical relays such as transformer differential relays, bus differential relays, feeder protections with state-of-the-art electronic relays; upgrading of transformer monitoring and control system for reliable control and real time monitoring on critical power transformers; Installation of additional line arresters for reliability and protection from lightning strike; Installation of fire and flood control projects; Upgrading of switchgears in substations; and the construction of hazardous waste storage facilities at various substations. For transmission and sub-transmission lines, the proposed projects include the upgrading and rehabilitation of ageing line hardware; replacement of wood poles with steel structures; construction of tower foundation; and replacement of wood poles with steel poles along various 69-kV lines. The rest of the work orders cover the repair, rehabilitation and/or refurbishment of building/support facilities, and the needed compliance with environment and IMS requirements. The projects will require an amount of Billion Pesos for the period 2012 to The project cost summary is shown in Figure North Luzon Work Orders RSTA RAB Figure 1.1: North Luzon Work Orders 1.2 North Luzon General Plant Equipment The proposed GPE consists mainly of acquisition of Maintenance Tools and Equipment for the replacement of old and defective units. Various equipment used for maintenance and repair of power equipment as well as diagnostic tools are also covered in the proposal. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 23

28 Million (Php) Million (Php) The rest of the proposed GPE mostly covers the purchase of personal protective equipment (PPE), ICT, building/office equipment and other vital support devices. The projects will require an amount of Billion Pesos for the period 2012 to The summary is shown in Figure 1.2. North Luzon GPE RSTA RAB Figure 1.2: North Luzon GPE 1.3 North Luzon Spares In planning for the spares requirement, utmost consideration were given to the minimum stock level and economic life of power equipment and accessories / devices, transmission line hardware, The materials for use in reconditioning of oil & SF6 insulated equipment; substation primary and secondary equipment such as transformer bushings & cooling fans, current transformers, potential transformers, battery banks, capacitor cells, and lightning arresters; steel poles and steel cross arms; and other line hardware such as connectors, insulators, clamps, vibration dampers, conductors, bolts and others. The projects will require an amount of Billion Pesos for the period 2012 to The spares cost summary is shown in Figure1.3. North Luzon Spares RSTA RAB Figure 1.3: North Luzon Spares 24 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

29 2.0 South Luzon CAPEX Program The CAPEX Program of the South Luzon is shown below. 2.1 South Luzon Work Orders The Work Orders for the replacement, rehabilitation, repair, and refurbishment of the existing power transmission facilities (Substations, Transmission Lines, Sub- Transmission Lines including Support Facilities) aim to enhance the reliability of the power system in South Luzon, with the end objective of providing reliable safe and quality power service to all customers. The work orders primarily cover the replacement of major substation components due to obsolescence, defects and/or operating problems. Bulk of the work orders also include the replacement/rehabilitation of transmission/sub-transmission line materials and hardware, due to corroded insulators and overhead ground wires. The rest of the TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 25

30 Million (Php) Million (Php) work orders cover the repair, rehabilitation and/or refurbishment of building/support facilities, and the needed compliance with environment and IMS requirements. The projects will require an amount of Billion Pesos for the period 2012 to The Work Order summary is shown in Figure South Luzon Work Orders RSTA RAB Figure 2.1: South Luzon Work Orders 2.2 South Luzon General Plant Equipment The bulk of the proposed GPE is primarily intended for the acquisition of test equipment, tools, instruments and devices as replacement to the obsolete and defective units. Acquisition of additional GPE is also included to ensure that tools and equipment are adequate for the effective and efficient implementation of various substation and line maintenance activities. The rest of the proposed GPE mostly cover the purchase of personal protective equipment (PPE), ICT, building / office equipment and other vital support devices. The projects will require an amount of Billion Pesos for the period 2012 to The GPE summary is shown in Figure 2.2. South Luzon GPE RAB Figure 2.2: South Luzon GPE 26 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

31 Million (Php) 2.3 South Luzon Spares The spares requirement, as proposed, considers the minimum stock level of installed power equipment, instruments, devices and accessories as well as line materials and hardware. It is aimed primarily to provide readily available spares for all critical and slow moving equipment. Bulk of the proposed Spares requirements cover the acquisition of substation primary equipment, such as but not limited to: power transformers, instrument transformers, lightning arresters, transformer bushings, and a number of substation secondary devices. The projects will require an amount of Billion Pesos for the period 2012 to The spares cost summary is shown in Figure South Luzon Spares RAB Figure 2.3: South Luzon Spares TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 27

32 3.0 Visayas CAPEX Program The summary of the CAPEX Program of Visayas is shown below. 3.1 Visayas Work Orders The work order proposals for the region primarily consists projects that are intended for the operation and maintenance of major facilities which are directly used in the transmission of electric power. These are the following: a. Rehabilitation of existing transmission lines to restore them to their top operational condition by replacing defective and old component such as insulators, vibration dampers, poles, cross-arms and other hardware. This includes also the rehabilitation of HVDC facilities in Leyte and construction of tower foundation slope and river bank protection. 28 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

33 b. Major rehabilitation of substation primary equipment or its major component that had experienced excessive wear and tear and needs to be re-conditioned in order to restore to its top operation condition that includes replacement of transformer bushing that are 30 years old or above, overhauling of transformer OLTC, replacement of major parts of PCB s, etc. c. Upgrading substation secondary devices which are either old, obsolete (spare parts not already available in the market) and with recurring operational problem such as protective relays giving undesired tripping signal, etc. d. Installation of additional substation secondary devices which will improve the reliability of the system, such as provision of N-1 compliant 125VDC system, separate DC power supply for M1 and M2 protection. e. Modification of the existing station service installation (metal-clad containing the LV switchgear is directly attached to the main transformer body) will be transferred to a separate house several meters away from the main transformer. f. Construction of anti-fire projects describes as follows: i. Erection of fire wall that will protect the main transformer from flying debris coming from an adjacent HV equipment that exploded due to insulation failure, or the other way around. ii. Installation of fire stop/barrier in all critical wire/bus ways of the substation to protect control wires from the spread of fire in case of fire accident in the nearby areas. g. Construction of Anti-Flooding projects that will prevent occurrence of flooding inside the substation that may endanger the operation of the facilities. h. Re-routing portion of transmission/sub-transmission lines that is frequently affected by soil movement or with ejectment complaint from the landowner. In order to comply with the environmental, safety and security requirements, proposals for the construction of oil secondary containment were made; the rest of the work orders include the construction of new support facilities and repair of the existing structures. The summary of Work Orders which amounts to Billion Pesos is shown in Figure 3.1. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 29

34 Million (Php) Million (Php) Visayas Work Orders RSTA RAB Figure 3.1: Visayas Work Orders 3.2 Visayas General Plant Equipment Bulk of GPE proposals for Visayas include the acquisition of test and diagnostic equipment, tools, instruments and devices. Likewise, there are also proposals for the replacement of obsolete and defective units, to ensure that tools and equipment are reliable, adequate for the safe and efficient implementation of various substation and line maintenance activities. It also considers the replacement of obsolete testing equipment with state of the art technology. The rest of the proposed GPE covers the purchase of new personal protective equipment (PPE), ICT, building / office equipment and other vital O&M support devices. The summary of GPE which amounts to Billion Pesos is shown in Figure Visayas GPE RSTA RAB Figure 3.2: Visayas GPE 30 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

35 Million (Php) 3.3 Visayas Spares In planning for the Spares requirement of the Region, the minimum stock level and economic life of installed facilities and testing/measuring devices were given utmost consideration. Maintaining the minimum stock level is part of the contingency measures in order to assure readiness and attain high level of response efficiency. This is particularly important in Visayas Region where sharing of spares is very difficult due to its geographical configuration. Likewise, there is a focus on the rehabilitation of the existing sub-transmission lines that are unlikely to be acquired by the distribution utilities due to technical and financial reasons. Hence, significant amount of investment is proposed for the procurement of line materials and hardware for sub-transmission lines. The summary of Spares which amounts to Billion Pesos is shown in Figure Visayas Spares RSTA RAB Figure 3.3: Visayas Spares TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 31

36 4.0 Mindanao CAPEX Program The Summary CAPEX Program of Mindanao is shown below. 4.1 Mindanao Work Orders The Mindanao Region work order proposals primarily consist of replacement, rehabilitation, repair, and refurbishment of the existing substations, transmission and sub-transmission lines, switchyards and other support facilities. In particular, this includes coupling capacitor potential device and other High Voltage Equipment, the upgrading of the DC system of the substations, upgrading of the protection system of the grid by replacing old and unreliable fault clearance equipment with state-of-the-art and efficient relays,. Also included, are the reconstruction of transmission line towers which were toppled or have suffered structural instability due to sabotage/pilferage and the implementation of slope protection of structures. 32 TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1

37 Million (Php) And to comply with the environmental and safety requirement, there are proposals for the construction of oil containment basins and hazardous waste storage facilities, the implementation of the anti-fire and anti-flood programs for the substations, to mitigate the risk involve in fire and flooding. The rest of the Work Orders include the improvement and renovation of existing support facilities, as well as the construction of new ones. These projects are considered to ensure the reliability of the power system in Mindanao, with the end objective of providing reliable, safe and quality power service to all customers. The Work Order projects will require the amount of PhP Billion Pesos for the period 2012 to The cost summary is shown in Figure 4.1. Mindanao Work Orders RSTA RAB Figure 4.1: Mindanao Work Orders 4.2 Mindanao General Plant Equipment The GPE for the transmission lines and substation maintenance, testing and calibration is driven by the criteria imposed by System Reliability Enhancement, End-of-Life Assets Replenishment, Grid Code & Environmental/Safety Compliance, Timely Response and Data Management & Analysis Improvements. It also considers the replacement of obsolete testing equipment with state of the art ones. The acquisition of new technology equipment as part of quality advancement is also considered. Replacement of obsolete and defective tools and equipment and acquisition of modern test and monitoring equipment, such as Earth Resistance Tester, Insulation Resistance Tester, Frequency Response Analyzer, Insulation Power Factor Tester, Infrared Scanners, Transformer Diagnostic Devices, UV Scanner, Circuit Breaker Analyzer, Battery Impedance Tester, Hotline Tools, various type of stringing blocks and other power line related tools are components in the implementation of maintenance strategy. Included in the proposal is the refleeting of line maintenance vehicles and equipment consisting of line and boom trucks. TRANSMISSION DEVELOPMENT PLAN 2012 VOLUME II PART 1 33