Republic of the Philippines Spaliv ENERGY REGULATORY COMMISSION a San Miguel Avenue, Pasig City : Hebel: / ENERGY REGULATORY COMMISSION rll D PROJECT FOR YEARS 2013 - 2014, WITH eet PRAYER FOR PROVISIONAL AUTHORITY, . eRc.caseno, 2012-01 pe/ IN THE MATTER OF THE APPLICATION FOR AUTHORITY TO IMPLEMENT PROPOSED — ADDITIONAL ~— CAPITAL VISAYAN ELECTRIC COMPANY, INC. (VECO), Applicant. | APPLICATION @ VISAYAN ELECTRIC COMPANY, INC. (“VECO,” for brevity), by counsel and unto this Honorable Commission, respectfully states: 1. VECO is an electric distribution utility, organized and existing under and by virtue of the laws of the Republic of the Philippines, with postal address at the VECO Compound, J. Panis Street, Banilad, Cebu City. It is duly enfranchised under Republic Act No. 9339 to engage in the distribution of electric energy in the Cities of Cebu, Mandaue, Talisay, and ‘Naga; and the surrounding Municipalities of Minglanilla, San Fernando, Consolacion and Liloan, all within the Province of Cebu, 2. Pursuant to Section 43 (f) of Republic Act No. 9136 (otherwise known as the “BPIRA”) and Rule 15 Section 5(a) of the Implementing Rules and Regulations of the EPIRA, the Honorable Commission promulgated the Guidelines on the Methodology for Setting Distribution Wheeling Rates (ERC Resolution No, 12-02, Series of 2004, dated December 20, 2004). The DWRG has subsequently been revised and re-issued as the Rules for Setting Distribution Wheeling Rates for Privately-Owned Distribution Utilities Entering PerformanceBased Regulation (ERC Resolution No. 34, Series of 2006, dated December 13, 2006) (RDWR"} 3. In compliance with the RDWR, VECO filed its “Application for Approval of the Annual Revenue Requirement and Performance Incentive Scheme in Accordance with the Rules Jor Setting Distribution Wheeling Rates (RDWR)" for the Regulatory Reset for July 2010 to June 2014 Regulatory Period for the Third Entry Group. This application was docketed as ERC Case No. 2009-040RC. 4. Hence, VECO is under the Performance-Based Regulation (“PBR”) regime where its Annual Revenue Requirement was already approved for the 2010-2014 Regulatory Period in ERC Cuse No, 2009-040RC. However, because a capital project is statutorily required to be implemented by VECO within the year 2012, VECO is forced to file the instamt Application prior to the next Regulatory Reset of 2014-2018. ‘On Aprit 25, 2001, the City Council of Cebu passed City Ordinance No. 1894 (City Ordinance”) which mandated public utilities 10 transfer the overhead utility cables underground. The City Ordinance aimed to address the unsightly and indiscriminate manner of utility lines that has degraded the fine image of Cebu City as a livable and sustainable city that do not give due significance to the heritage resources that form part of the cultural tourism 5.1. Section 7 of the City Ordinance provides as the City’s “Phase 1] Medium ‘Term Objective” the partial implementation for the underground installation of utility line five (5) years after approval of the City Ordinance. 5.2... Moreover, Section 7 ‘prowides as the City's “Long Term Objective” the mandatory grounding of all utility lines within ten (10) years after the approval of the City Ordinance. 5.3. A photocopy of Ordinance is attached as Annex “A” and made an integral part hereof5.4. Section 8 of City Ordinance No. 1894 penalizes the President and/or General Manager of the corporations found violating the Ordinance. 6. 2012 is the tenth year since City Ordinance No. 1894 was approved. As a reminder, the Honorable City Mayor of Cebu sent a letter to VECO expecting compliance by the end of 2012. The Honorable Cebu Provincial Governor also echoed and supposed the City Ordinance, which she sees a way of promoting tourism through beautification of a major thoroughfare. Specifically, the Honorable Governor required VECO to prioritize the road along Osmefia Boulevard ~ from the Fuente Osmefja Circle up to the Provincial Capitol Building (known as “Phase 1a”) and Fuente Osmefja Circle to P. del Rosario Street (known as “Phase 10), Photocopies of the letters from the Honorable City Mayor and Honorable Provincial Governor are attached as Annexes “B” and “C”, respectively, and made integrat parts hereof. 6.1. VECO proposes to implement partial compliance of the City Ordinance by transferring the electrical wires along Osmefja Boulevard (je., from the Fuente Osmefia Circle up to the Provincial Capitol Building and Fuente Osmefja Circle to P. del Rosario Street) to underground. This project is proposed to be designated and identified as “the Osmefa Boulevard Underground Installation-Phases 1a and 16” and is estimated to cost Php205,056,774.95 6.2. The following is the breakdown of the estimated costs for the different phases of the proposed capital project: Phase Description “Estimate Cost “Expected Year of ~ Completion Phase Ta | Fuente Osmefja Circle up to the Provincial Php68,352,258.32 2013 Capitol Building — Phase 1b | Fuente Osmefia Circle to P. del Rosari Street Php136,704,516.63 2014 Total Php205,056,774.957 In support of this Application, attached as Annex “D” is the summary of the Project information and justification and made an iniegral part hereof, Allegations in Support of the Prayer for Provisional Authority. VECO repleads the foregoing allegations and further states that: 8. VECO is mandated to provide power in the most reliable, secure, and sale manner. However, it is necessary to obtain provisional authority from this Honorable Commission before it can commence the implementation of this capital project in compliance with the City Ordinance. 9. Rule 20 (C); Section 4 of the ERC Rules of Practice and Procedure authorizes the Honorable Commission “[U]pon filing of the application” “to grant the issuance of a Provisional Authority (PA) based on the allegations of the application and on such other documents attached thereto or submitted by the parties.” 10. Hence, pursuant to such authority, VECO is requesting that it be granted Provisional authority to commence the implementation of the proposed capital project in accordance with the proposed timeline for implementation PRAYER WHEREFORE, the foregoing premises considered, VECO respectfully prays that this Honorable Commission: : 1, Grantprovisional authority, pe filing of the instant Application with the Supporting documents and afier initial evaluation by the Honorable Commissign, to allow and authorize VECO to implement the Osmefia Boulevard Underground Installation ~ Phase 1a and Phase 16 and at their estimated costs; and. 2. After due notice and trial, grant permanent authority on this Application.Finally, VECO similarly prays for other equitable reliefs under the circumstances. Cebu City (for Pasig City), April 26, 2012. afhPok Aico fon TBP O'R, No, 872154; Januarg 3, 2012; Cebu City PTR No, 2156312; January 3, 2012; Cebu City Roil No. 41829 MCLE Compliance No. Ill - 0019728; January 6, 2011 J.P. GARCIA & ASSOCIATES Counsel for Applicant Visayan Electric Company, Ine. Unit 902, Ayala Life -FGU Center Mindanao Avenue comer Biliran Road, Cebu Business Park Cebu CityVERIFICATION/CERTIFICAT YERIFICATION/CERTIFICATION REPUBLIC OF THE PHILIPPINES} CEBU CITY }sS |. ENGR. VALENTIN 8. SALUDES, III, of legal age and resident of Cebu City, after being duly sworn to in accordance with law hereby depose and say that 1am the Assistant Vice President ~ Engineering of herein Applicant; "have caused the preparation of the foregoing Application Uhave read the contents thereof and that the same are true and correct to the best of my knowledge and information: < {have not cause commenced any other action or proceeding involving the same issue in the Supreme Court, the Court of Appeats or any agency or wibunal, and to the best of my Knowledge, no such action or proceeding is pending in the same entities above-stated. It | should learn thet a similar action or proceeding has been filed or pending before said court, agency or tribunal, | undertake (o inform this Honorable Commission within 5 days from knowledge thereof. Cebu City. (for Pasig City), April 26, 2012. ENGR. VALENTIN S, SALUDES, 111 Affiani SUBSCRIBED AND SWORN TO before me thiMAY 0.3 2012_ at Cebu City, affiant exhibiting to me his Driver’s License No. L02-89-057203 issued on September 4, 2009 Doe. No, Page No. Book No. Wt Series of 2012 ‘UNTUOECEHEERST 2013 {EOTE 902 LATE FOU CENTER "CEBD SMES PRK. CEBUGTY i ‘ldo 52927 * . PTR No, 2136315, Cegu CIV: O1/03/12 WMP No, 7257 ceaM coat— REPUBLIKANG PIUPINAS 5». * RORS OFFICES, ._ LUNGSODNGCEBU.. . (case, : Tawaoaran ns saNccuNia¥s emvLuNicsoo SN? CEBU CITY HALL TEL. NOS. 263-2388 SHE: 20% SANOQUNIANG PanLuNesod BBO» v0 SESSION EXOERPT FROM THE MINUTES OF THE REGLAAR SESSION HELD AY THE 'S AIGGUNIANG PANLUNGSOD. OF THE CITY OF CEBU IN ITS . SESSION HALL ON APRIL «, 2001. PRESENT: Hon.Renato V. Osmefia Prortding Officer Hon. Franklin N. Seno. Pras. Protempore Hon. Rogelio V. O¢mat +c: Mal. Floor Leader Hor. Felixberlo A. Recllo ci. Asal, Maj. Fie. Leeder Hon. Ronald R. Cuenca +s Member WE CR Hon. Firma 8, Dayao Hom Eenatto A. Elizondo Non. R odeito ¥. Estelle Hon. Proooplo &. Fainendez Hon. Jote F. Nevarro Hon. Jocelyn @, Pesquera Hor. Michael L Re Hon. F e Maniva Ruiz ABSENT: Note, 000 ae : RESOLUTION NO. 044044 The Sangguniang Panlungeod of tha Gly ¢f Cabu, on mation of Member Seno, secmdad by Member Ectala ‘ RESOLVED, to approve ihe fallowing ardinmes: ORDINANCE No, 4848? AN ORDINANCE CREATING THE UTILITY LINES INSTALLATION COORDINATING COMMITTEE AS A SUB-COMMITTEE OF THE EXISTING TECHNICAL INFRASTRUCTURE COMMITTEE PROVIDED IN CITY ORDINANCE 1646. WHEREAS, rapid urban and population gr ovth within the Meiro Cebu hae centirwed.to intensity development activiles, white il hot alge continued 1o exerl presture on the need for public ull WHEREAS, the emand for uilily sevicts hee centered en the Clty of Cebu and. equence, urban sprawi and expanaton of dolh residential : ‘ng eshmete extended and intensified the Inctaltation of ullily tines: aizobegin to comp i Inataltelion of power: Iplecommunicalion; cable TV; and olhér uillily eupport clrucluies:REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU - ‘TANGGAPAN NG SANGGUNIANG PANLUNGSOD (CEBU CITY HALL TEL. NOS. 299-2386 = page2- WHEREAS, this compelition has fed fo @ disorderly manner of instal of utilly lines eharecterized by eriee-eroscing: ovérispping and sagging ‘and, the erectien of multiple or clustering pot WHEREAS, ihe common practice of overhead vires has been deemed to create viaual cuits, and does nol readly idenlify omerttip of exclusive lines when il cimes to repatsing them, and this melted does not give emple reoponsiblly for the ullity firms in managing Iheir ullly Thee; WHEREAS, this unsightly and Indlebriminalé ménrer of utility in Inelatielions hat ‘resulled in a so-called “cpaghalll virus’ and, as such, has ‘degre ded the fins image of the Clly of Cebu as a abit até sustainable city; ” WHEREAS, these overhead wires do not gi cut slgnifloance fo Ihe {hot form pari of eur cultural tourism #8 Ldeniified In thie cily addreue the cily’s thrusl of creating a veualy eppeciing cily. NOW, THEREFORE, fot and in consideration of the foragoing premises, the Sangguniang Panlungeod of the Gily of Cebu, in a reguler setcion aetembled, hateby ordaing thal: Section |. Coverage. = Any person, corporatlen fitm or entity which shall undertake any inelaiislion of slectrlc power iinee; Leleptione and communication fines; snd Cabie-TY line along any public or subdivision toed withia the Cily of Cebu, shall besubjected to he provision of thie ordinance. ~ Secilon 2. Creetion of-an Advicory Body of @ sub-committee of the Technical hfreatructure Committee (TIC). ~ a} In order to exsist the CHy Government, thu the Hoh. City Mayor, in discharging the funcliont under this ordinancy, en advivory body ie hereby ore to be known a€ the Utilly Lines Inctaltelion Cooidination Committes (ULICO) which shall establish coordinative and vorking relationship emong member agerides. The ULICC will be 4 ewb-commillee of the Technica! Infractuct ure Contmitlee (TIC) ev reaied under Resdlulion Ne. 2410, and Ordlitance No. 1818, dated Marsh 11, 1958. The TIC is aeo lesked lorectamand and/or propose sdciiione) provisions that can promeie and sitengihen the Impionegiation of thie ordinance. request for exemptions from the provisions of thie ordinance mutt ‘be thoroughly juetifieg and given 6 pralininayy approval by Ine TIC. after which fl shall be recommended Lo tho Gily Council for final approval. Seclion3. Powsr and Functions. ~ Pursuant ls theimmedialsly preceding Section, the ULIGC shalt: 4) Coordinate wilh both privele end government silly agencies in Cebu Clty in coming up with Ihe detelied urban design standards of bullREPUBLIKANG PILIPINAS LUNGSOD NG CEBU ‘TANGGAPAN NG SANGGUNIANG PANLUNGSOD (CEBU CITY HALL TEL. NOS, 259-2386 2354-6004 Res, No, ‘01-4011, Ord. No. 1894, daled April 4, 2001, cont'd... + gaged - form controle on the appiicalfon of the different types of ullly ines; and recommend Ihe dotlgnation of uliiity stripe. b} Require all devsloperbulling owners and’ Environmental impact Assotement report at a requirement in the appiiestion and spr oral Process ox lo how.the design of their ullity epplicetione will efest the slieetiadjacent devetapnent. Thece should Include safely measures token up as well ae thelr mansgement policles with cogerd te theie lilly applications intids ané outatde of the building. 4] Together with the relevant epproval bodies which procese bull dag Petmils, this committee ch auld alto lake on active role In escac lng willy spplicalion designs ms per-buildinglpar clruclura meée and ‘keep records of each application, ) Moniter-on going ullily Yinse project {and roateace acoordng to + approved plans), and te evbmil monthly reporie to the Hen Gly Mayor. : : ree ©) Gather ané eveluste immedisie and pacl project of the different utily egencles. . + A. Hold @ bi-monthly palley making decision (maelldgi}, artd céordnaton - meatings where all applications for ulilty lines tn deliberated and recommen ded to the Hon. Clly Mayor for eyproval > Including “Joint All Uitizetion Agreemeni* belween-all- among utilly firm. : " 9) Recommend to the Hen, Oly Mayor the cuspancion, canctlstion revocation or fo the Clly Engheer the denial of applicellon fot pymils! clesrances to enfilies vhich have failed Lo comply with any cf the provisions of this ordinance. bh) The Cily Engineer shall acl at the exééutive officer $f thb ULIOO and shall alco provide Lechnioe! and clerical staff eupport Lo the ULICC. Secllon 4. Composition. - The WICC éheli bé compated af the fetiwing tusmbere and a chairman ehall be app dnted by the Hon. Cily Meyar whote term ovtetminus, wih the appointing authorlly unless tcone d for whatever cai 1a) Representative of the Cily Mayor; ‘b) Chalrman, Committee on Fublle Works of the S.P. or hit duly authorized eprecentative; ©) Clly Engineer or his dhly authorize representalive who chill be convercent with the ulilly sppicalion slendarde sel by the commilee; ~'d) An ArchiteetUrban Plone? who shell handle urban detign buill form control. 7 . :REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU’ . se ‘TANOGAPAN NG SANGGUNIANG PANLUNG SOD (CEBU CITY MALL TEL, NOS. 20-2266 Res. No, 01-4011, O14. No, 1894, dated Andi 4, 200% ceuFe.. + paged . +) An independent Electrical Engineer to manepe end teke responsibilty of the technical siandarde of the ulilly applicli om. 1)A duly authotz.edrapresentative’of CITOM. . 9) A duly euthotz #6 representalive of VECO, 1H} A duty cutnazedrprecentativ of PLOT-SART, 4) A duly autho edrepresentolive of MCWD.- i 11 A duty authote edreprecentative of @LOBE-ISLAGOM.:. «s+ of SKY CABLE tN, 1) A duly authottedreprocentelive of BAYANTEL, “NY A duly euthatz ett epresent ‘my A duly autharized representative of any uly Company who will be In ‘peralion witin the City of Cebu in the future. . Section &. Coafermty fo the provision and Requternent of Ordinance No. 1618; - This, ordinance stall conform lo the provieiowe and requirements of Resolution No. 2440, Ordnance No. 1618, dated Merch 11, 1996, of the Senggunleng Penlungted o the Cly of Cebu in lenms 8) Povere andFurtons of the TIC, d) Pre-excavetion and elle requirements ol Limitations on strvet diggings and excavation --' : 4 Rasloration and Pos! Work Requirement ¢) Sepacablily and Panelly clauses ‘Section 6. UtillyS tripe and installation of Posts ancl UlitHy Lines: 4) The designation f ullity strips shall have thiee (3) options and shalt be applicable where ft Is convenient; : 1) THe eildde of the coed IF the ro right way be Awenty-m ‘wide or mere 2) The sldevate, lithe rosé Hght-of-wey Is less han twenty meters 3) And, it eaoneary, utilize the designated at front yards as Code and ihe City Zoning Ordinance. erllen of private propert 1d by the Nallonal Building All cuch utlization of private or insillutional properties. designeled ax utllily stripe sheil allow the erection of ullllly posts and/or underground inslalistion ~* ulltity Inet afler due procers ‘ang dle ompineation thereat eeREPUBLIKA NG PILIPINAS | LUNGSOD NG CEBU TANGGAPANNG SANGGUNIANG PANLUNGSOD Capua HALL Tel NOS. 30-2908 set a00s Ret. No, 01-4011, Or4.No, 1994, dated Anil 4, 2001, col’ 5. = 0m 8) Before any willy posis is erecled slong 8 road right-ol-rsy ot privale property within the dacignated ullly elripeyan applilion to erect such poles shall be submitted to the ULIGC which, in turn, shell recommend appr ovat lo the Sangguniang Panlungtod. ¢) In case two # mice firme vill be shering Ihe came wilily poet erected, Ihe ulitiy Girma involved shalt undertake + “Joint Pole Ullization Ageeneni’ a6 a mandatory requirement of the Cily Government. The kimming sf tréee.se obstruclion Io lhe uilily lines shall be ihe reaponsibllty “of the seme firm invalved in he Joint Pote Uilization Agee: : Mandatory sehb ark: of sil building: the cenler ofthe road, ) All uility firms sbsll keep @ record of their individual projesis of pole erections and tnélaliation. of uliiity lines. Th shall be digitized (Computerized cords end tatlation alignments end distances shel beproperty kept and monileréd by the WCC, Seelion 7, Objed et andTargels. - 4) The main objective of this ordinance is to pursue a viity’ application slrategy-thal is tafe-and,seoura, al the-isesl:pottible cost, and an application systen that- will'rld the “clly of urban ey etores thal otherwise dana ge the qualily of the urban. design of the cily. The cluttered lod that: the current mode of inetalletion brings about ‘Suggecls 2 peychologically negative sxperiéned for any city. dweller and parsersty. The.creallon of , vibranl, and tile lly ie not supported wih the “existance of the hazardous spaghtti formations ‘Adgedly, the significant of thé City’s Herilage steels ars Amisiched with the presenoe of mesial eyesores thal demage fhe ital outlook of the elreete b) In view of thesiguificantly wide range and:scope-covered by thie wlllly ordinance: and the:expected cercaeponding technics! end. concidarable finaticiel,reqir enn Yo'be incurred onthe pert of the utily. firms, 8 ~ elealegy fore réllonsliz ed; mplecientalion should hus: be derived In rm of thorl, medium: and tong lermn-oblectives, ‘iargele'to' be acoomplished wihin the phaved program of inpten entation, in ith Rules and Regulations for th ‘appurtenances or equim en! shall a ‘installation of ullily Hines end lis provided thereto. Promote the Rehabilitation and/or orderly thle w five {5} year period upen approval 4, 2 Phase | Short Term Object Installation/restorali of this ordinance, ae y Arangition peREPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL TEL. NOS, 253-2909 254-9004 Ret. No. 01-4011, Ord, Na, 4884, dated Apri 4, 2001. cont'd... + pages Targets { Removal of cresewires. steriing at main thoroughferes ard thelr Intereection. 1 2. Investigate the possibilly of a compromised dealgn wherein part of the lings assemblage are cabled in el the sldee of the. bullénge in ite “ exterior. The design of thie cable assembly compalibitily wih the building lay vary dep éndirig on iis Setign or. elruoture. Hévevir, the romised, whicheve? oubing decign 5 Invecligale the possiblity or cabling ome vires tharlly undkiédth thé sidewalk or pavenent in merked areas, belore reaching be rerical ables of the exterior of the building. 4: Require the use al concrete posts instead of wooden posts, 5: Encourage ute of fiber optics in erder to reduce volume of wiring systems. 8 Require the proser, slignmant/re-aligriment of, sey utility ines. and Providing rules ind regulations (limi! lo the aerial pact svalleble Should els0 be eantempluted on, in the short lerm| therdof. tt Folowes S-1 Helght Clesrence: no serie! Ulli tine shall be bello Fourteen {14} Foe! from the teva! of the road. ©.2 Line Sepaniion batwoan syclom aerial ulidly snes belween aysteme shal be separated by af feast ang ({} foal torn Sach olher, 3 Proper Inaullion of all aeril wiring aysléms mutt be properly ‘Insulated with standard Ineulation materials.” 5-4 lilly Lineleyslems identification provisions for eyclems ‘Identification shail bo required either three ootor coding oF other Aiclinguiehing Features, 5.5 Any unoleer provision in the aforementioned guldelines for asrist lation must be referred to the ULIOC ‘Committee for potioy Phage! Medium Tern Objective: - Promote the parliel Implemelation for ederground Instalistion of utily line five (8). years. alee. approni of ine ‘ardinance ae € eecond {ranution period, Target, 1. Start 9 elective implementation of raquitemente for ulllly firms to ground al new lines installation and providing for Mee end reguialions therest, auSallavaREPUBLIKARG. PLIPINAS LUNGSODNG CEBD TANGGAPAN NG SANGBU NANG PANLUNGSOD ‘CEBU CITY HALL TEL, NOS. 259-2908 254-9004 Res, Ne. ‘01-4011, Ord, No, 1994, daled April 4, 2001, cont oget- 1.1 Excavation Requiremens ~ ail excavallons musl conform Ie the Faquirements provided un det Sections 6, 7, 8, 9, 10, 11 snd 12 a Ordinance No. 1618, sep-erRecolulion Ne. 2410 dated Maret 1 1, 1996 of the Sangguniang Panlungs od of Cebu City. 1.2 instalation of Utility Lin ev must cenform lo autigned “Lines slong the rond-right-ctway. Separate comperimenie for paver, Television Communicators, Cable-TV, and olher ullily lines musi be provided as to depth and herizonlal, dislances betve en ‘systems. 4,3 All Ulli Lines facilitate identi Inlervals, at b9 properly Ineuleled and colar codid to ation: manholes. musi be provided al convecient 2, Start implementing a cequirameni tor the ute of fiber optice. 4, Require new subdivisions for economic or open markél housing geund all Instatlation of ullity lines, 4. Require all developmen! prolede cleceified under the 1996 Zoning Ordinance of Cebu Oily 10 ground al installation of ulilty fectities Phase iti Long Term Odjective:- Require the mandatory grounding of all LUliity Lines ten (10) years after the:eppr oval of this ordinance. Seclion 8, Penal Cia lure to comply with sny or the provisions Sisledherein shall be penalized wilh s fine of nol more than FIVE THOUSAND (P5,000.00) PESOS. When a corponti an or partnership violaies any’ a the provisions of this Ordinance, the Presiden! and/or General Manager thereo! shal beheld liable. Section 9. Repesling Clause. - Ary provisions of ather Cily Ordininces ‘Wtiah ere inconsietent wilh ths pravisiort of thie ordinance are hereby repeal ed ermodtied accordingly. Seclion 10. Sepersbilty Claute.- Should sny provisions ered be declared illegal or unconstitutional by ary court of competent jurisdiciion, hose” proeislins nal go declared shall remsh valid and In full force and effect, Section 11. Bffectivily, -Thit ordinance shail leke effect immecat ay ‘upon iit approval. CARRIED UNANIMOUSLY. (Momb ere Elizondo and Legacp! wwe out) i Done+ REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG BANGGUNIANG FINLUNG@SOD CEBU CITY HALL "TEL, NOS, 859-2908 254-9006 Res. No, 014011, Ord No, 1694, doled April 4.2001, cont’... | hereby certify to the comrecinest of the afotequoted resotullon/ ordinance, ‘ i : . BSTRELUA FOE dk RevES Cily Séereianyer reno ‘OSMERA ait . Prasiding Officer ’ - ATTESTED: Soke apruoveDsREPUBLIC OF THE PHILIPPINES CITY OF CEBU OFFICE OF THE MAYOR VISAYAN ELECTRIC COMPANY J. Panis St. Banilad, Cebu City, Philippines 6000 To Whom It May Concem: Greetings of peace and felicity! ||am writing to formally inform you of the City’s request that you comply with all terms and guidelines pursuant to the City Ordinance No. 1894 dated April 26, 2001 that all utility companies are mandated to foliow. The ordinance intends to create a power system that is safe, secure and aesthetically pleasing for the city dwellers Specifically, the ordinance compels all utility lines to be positioned underground 10 years after its approval In this connection, we would like to require, the company as to, the progress it has made in complying with the aforementioned city ordinance most in the shift from aerial to underground for electrical network. | strongly urge your company to hasten compliance with the ordinance for the good of the citizen of the City of Cebu. It is my wish to see development along these lines before the end of 2012 So, please take the necessary actions accordingly. Sincerely is HON. MICHAEL L. RAM, Mayor, Cebu CityRepublic of the Philippines Province of Cebu OFFICE OF THE GOVERNOR 16 April 2012 MR, JAIME JOSE Y. ABOITIZ . EVP & COO Visayan Eleciric Company J. Panis St., Banilad Cebu City ‘Subject: _ Underground Distribution System Along Osmeiia Bivd. Dear Mr. Aboitiz, Greetings! The Cebu City government is implementing another undertaking to improve the landscape and panorama of its highways and road areas which is expected to be completed before this year ends. As part of this development, the Cebu Provincial Government would like to express its full support for this action. Séeing the purpose of this project, it will not only promote tourism but also. safety and security for local residents of Cebu City. In this regard, we would like to require from your office your contribution to accomplish your power lines from: the Provincial Capitol to Fuente Osmejia Circle from its overhead setup to underground system. This area is prioritized to beautify the road along Osmefia Blvd. {in front of the Capitol Bldg.) that will be implemented and done before the end of this year. Hoping for your immediate action on this matter, | remain, JOLYN F. GARCIA GovernorVisayan Electric Company CY 2009 - RY 2014 Capital Expenditure Forecast Major Project Information Summary dake Name UNDERGROUND DISTRIBUTION SYSTEM- | Project code us! Hi "| Construction of underground distribution system along Osmeria boulevard Description from Provincial Capitol to Fuente Osmefia rotonda, Fuente Osmeria Rotonda to P. dei Rosario St. Commissioning date December 2012, June 2014 Orakei Rank 1" Priority Project Driver Classification | Statutory Project Type Classification _| Refurbishment Expenditure for the period 2009-2014 (in Millions) Local: 182.084 | TOTAL: 205.057 PHP PHP Forex: 0.459 USD OC Project Purpose * To initially comply to the provisions of Cebu City Ordinance no. 1894 + To abide by the memorandum set forth by the provincial government + To eliminate outages of the distribution network primarily due | to vegetation | + To increase reliability of service to customers + To prevent further unforeseen events of personnel electrocution. * To minimize the trimming of trees growing near the power | lines; to be earth-friendly, + To cut operational expenses in trimming of trees. + To create a distribution system that is aesthetically pleasingto cily dwellers Impact if Project Not Implemented ‘Osmefa boulevard is an orchard boulevard where many wees have grown on the road corridors. The trees definitely provide coziness and shade to pedestrians, However, this orchard is also a utility strip where VECO has been using for distribution. Severe weather events Such as typhoons and tropical storms routinely cause extensive damage to electrical distribution systems. Much of this damage and service loss can be attributed to vegetation or trees. Even under normal conditions, trees stil pose a threat against the ulilty's vision of providing its customers with safe and reliable power. Growth and movement of trees can cause electrical faults by bridging phases, Pushing conductors into each other or by physical damage to equipment that disrupts the circuit. At times, it takes days or even weeks for the power to be restored; hence, giving total dissatisfaction to the public and revenue loss to the electric utility In order to reduce the adverse effects of the aforementioned conditions, trimming or pruning nas always been the solution However, utility pruning substantially impact tree form. These alterations of tree form often elicit a negative reaction from property ‘owners and communities. This salution is perpetual and is not eco- friendly. Thus, the proposition of replacing the existing bare ACSR with underground cable is introduced With the implementation of underground distribution in this portion of the city, it will supply reliable power to customers. Power outages caused by certain objects are further minimized and risks of electrocution to humans are lessened. It can also reduce the cost of trimming. In addition, it will affect the utility's maintenance practice. Currently, where utilities are bind under the “Joint Pole Utilization Agreement’, it is difficult to rehabilitate a single pole. Finally, it will impact on the image of Osmefia boulevard and the city, boosting its thrust for tourism’ There will no longer be crisscrossing of wires (for the utilities). Reason for ranking project commissioning date relative to other projects The Cebu Cily governmeni, in cooperation with the provincial government, had already made an ordinance requiring ulility lines installation/construction be underground, This is a tough project to undertake. But the city and the province initially prioritize Osmefia boulevard being the principal boulevard and a significant source of cultural tourism for the aity On the other hand, trimming cost is on a per tree basis. Trees that are more dificult to prune, because of their hardness and durability, cost higher than ordinary trees. With the underground distribution system, the utility can save on maintenance cost of its distributionlines. Trimming practice, although cannot be totally eliminated, can be minimized. Because of its construction, power outages due to vegetation will be eliminated; thus, reducing revenue loss and most importantly, materializing the utility's vision of providing safe and feliable power to its customers.av2013 ‘OSMEWA SOULEVARO (FUENTE.CAPITOX] UNDERGROUND DISTRIBUTION PROIECT atrial Cer ‘ Fmd niche (25 4,2) RMU Sete CONCH, a art OM, BE HE Pad mere arom (2068) Fed marie unstme 8) Daa eure artorme (8) 2a Powe ate Gadi (na at) 22 Peete rin rt) fom aDtanee De ia ser eg sea) ‘Greta at) ‘Sosa Sear es rer) Besar sey we) ay 20. (Ostia BOULEVARD (FUENTE-P DEL ROSARIO} UNDERGROUND CSTR tenaisCor ‘ee Phase Se! 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