The Energy Regulatory Commission has approved the P182-million capital expenditure program of private power distributor Visayan Electric Co., including the construction of an interconnection line linking cement maker Cemex Philippines.

“The projects will redound to the benefit of Veco’s consumers in terms of continuous, reliable and efficient power supply as mandated by the Electric Power Industry Reform Act of 2001,” the commission said in a ruling.

Veco said it would fund the projects through internally generated funds and assured that they would not result in any increase or change in power rates.

Bulk of Visayan Electric’s capital expenditure would be allocated for the construction of the Cemex interconnection and a sub-station inside the cement company’s compound in Cebu.

The project involves the construction of a 69-kilovolt line from the Cemex site up to the Naga sub-station and installation of additional equipment at a cost of P108.5 million.

Cemex is a cement producer with a total power demand of 40 megawatts. It generates power through its diesel engine generators.

Cemex management decided to install a 250-megavolt ampere sub-station to reduce expenses arising from higher fuel cost. Alena Mae S. Flores