2.4 National Transmission Company (TRANSCO)

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The National Transmission Corporation (TransCo) is a government-owned and -controlled corporation created in 2001 by the Electric Power Industry Reform Act.

It assumed the National Power Corporation’s electrical transmission functions which include the planning, construction and centralized operation and maintenance of high-voltage transmission facilities, grid interconnections and ancillary services.

TransCo has been operating separately from NPC since March 1, 2003,. It has the unique and crucial role of linking power plants owned by NPC and independent power producers (IPPs) to the country’s 123 distribution utilities and electric cooperatives which in turn deliver electricity to end-users.

Through the relentless efforts of TransCo’s efficient, globally competitive functional groups, the entire Luzon grid - the country’s largest and most populous island hosting the biggest power consumers - has been blackout-free since May 21, 2002.

With its employees constantly guided by the corporate values of competence, honesty, and integrity in public service, TransCo’s electricity customers and other stakeholders are assured only of high-quality service.

As mandated by EPIRA, the national government remains committed to privatize all transmission assets to reform the power industry and boost power delivery services to customers. The Power Sector Assets and Liabilities Management Corporation (PSALM) manages the sale, disposition, and privatization of these transmission assets based on terms and conditions which shall optimize the assets’ value and sale prices.

Key facts

Background

· Started operating independently in March 1, 2003
· Handles the planning, construction and centralized operation and maintenance of high-voltage transmission facilities, grid interconnections and ancillary services.
· A regulated monopoly which uses performance-based regulation through a revenue cap

Assets

· Approximately 21,319 circuit-kilometers of transmission lines including a submarine cable system, considered the first of its kind in Asia
· 93 substations
· Approximately 24,310 million volt amperes substation capacity
· About $2.5 billion in assets (based on the last valuation; a third-party revaluation is being undertaken this year)

Operations

· Dispatches power through the National Control Center (NCC), a state-of-the-art system capable of communicating in real time with other control centers in other regions
· Delivered 102,107 megawatt-month of power in 2004
· System in Luzon has “N-1” capability, or the ability of the power grid to withstand the loss of a major line without any power customer experiencing a brownout
· The Luzon grid - the country’s largest and most populous island hosting the biggest power consumers - has been blackout-free since May 21, 2002

ISO

· First transmission company in Asia to have received the ISO 9001:2000 certification for one of its key units, the System Operations Group
· Seven other groups - Visayas Operation & Maintenance, North Luzon Operation & Maintenance, Project Management Group, Administration Department - Head Office, Engineering Design and Construction, Mindanao Operations & Maintenance and South Luzon Operation & Maintenance - have also achieved
ISO certification in 2005

Corporate Social Responsibility

TransCo’s mandate to empower and link all Filipinos goes hand in hand with its firm commitment to protect and preserve the communities hosting its power transmission facilities.

The Corporate Social Responsibility and Environmental Stewardship Program (CSRESP) is the program that guides, coordinates, and regularly assesses TransCo’s various activities that advance environmental stewardship, conserve natural resources, enhance the quality of life of the communities affected by its operations, enhance worker and public health and safety, and minimize risks from contingencies.

TransCo spearheads various social and environmental improvement activities and demonstrates its commitment to the host communities by adhering to the following principles:

€¢ Conduct activities that comply with all applicable environmental laws and regulations as well as with company policies and compliance objectives.

€¢ Employ a corporate-wide Environmental Management System (EMS) that is in accordance with ISO 14001, to identify, manage, and monitor the impact of TransCo projects and operations to the environment.

€¢ Work for a cleaner operation to prevent pollution of the environment, guard against the release of oil and hazardous substances/ materials, and quickly respond to such incidents that affect the environment, in accordance with regulations.

€¢ Communicate with, and educate staff, contractors, suppliers, and customers on environmental matters and encourage them to accept responsibility for their actions and to comply with their environmental obligations.

€¢ Implement energy/resource/waste management strategies that conform with the 6R policy - Reduce, Reuse, Replace, Repair, Refill and Recycle, without compromising the quality of TransCo projects, facilities, operations and services.

€¢ Avoid involuntary resettlement, whenever feasible, or at least minimize the adverse impacts of transmission development projects. TransCo provides timely and just compensation to project-affected persons when impacts are unavoidable. It also ensures that the socio-economic condition of the project affected persons is improved or at least maintained after project implementation.

€¢ Elicit public support and involvement in relevant aspects of TRANSCO's activities through information dissemination/awareness campaign and socio-environmental programs.

€¢ Initiate studies/development and/or adopt state-of-the-art, environment-friendly and appropriate technologies to prevent, control, correct, and/or minimize negative impact of TRANSCO projects and/or operations to the environment and society.

€¢ Work closely with other government agencies, environmental organizations, and stakeholders to minimize potential adverse impact of its operations on water, air, land, community, vegetation, and wildlife.

-- from the National Transmission Corporation (TransCo) Website

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