After the implementation of its performance-based rates, utility giant Manila Electric Company (Meralco) opted to jack up its capital expenditures (capex) program to P8.0 billion for full-year coverage so it can hasten projects that have been previously pushed in the back burner.

In a briefing with reporters, Meralco president Jose P. de Jesus said they have originally programmed P7.0 billion for capex this 2009; but the company got the leeway to bring it higher after the Energy Regulatory Commission (ERC) rendered final ruling on its PBR application. Prior to its tariff adjustment, Meralco also targeted hitting P7.8 billion capex for the year.

“We’re trying to catch up with the implementation of some projects that have been delayed in the past. Our capex program is in keeping with what we’ve indicated in our PBR filing,” he said. In the first half, the utility firm’s capital spending went up 5.7 percent to P3.4 billion from last year’s P3.2 billion in the same period.

De Jesus said part of the capex allocation will be for the second phase of their planned sub-transmission assets (STAs) acquisition which they are targeting for completion within the year.

Meralco has scheduled three-phased acquisition of sub-transmission assets to improve its distribution network. It was gathered that the second batch of Meralco’s sub-transmisison facilities’ acquisition will be for its service areas in Cavite, Batangas, and Laguna; and this is targeted to be concluded within the year.

The first STA purchases were concluded with the National Transmission Corporation (TransCo), now under concession arrangement with the National Grid Corporation of the Philippines. The utility firm spent over P230 million for it – covering 16 facilities that lumped in two substations and 14 sub-transmission lines.