Negros Power invests PHP 630M in grid upgrade

By Glazyl M. Jopson

BACOLOD CITY – Negros Electric and Power Corp. (Negros Power) is investing about PHP 630 million to upgrade its 69-kilovolt (kV) sub-transmission lines and construct two new distribution substations to meet the growing electricity demand in this highly urbanized city and its adjacent localities.

Vice President and Chief Operating Officer Engr. Joe-Mel Zaporteza disclosed the projects during a press conference at the company’s headquarters here on March 12, saying the infrastructure push is part of Negros Power’s five-year rehabilitation plan now in its second year.

“After 19 months of operation, we came to a point where we need to upgrade the 69 kV lines and develop new substations to be able to support the Bacolod City area and, in general, the whole franchise area of Negros Power,” Zaporteza said.

The two new substations will be located at the Provincial Capitol along San Juan Street and within The Upper East township in the Megaworld development area, both in Bacolod City.

The Capitol Substation is expected to go online by the end of 2026, while the Megaworld Substation will begin operations in early 2027.

The two facilities will bring the total number of Negros Power distribution substations to 13 by the first half of 2027, up from the current 11.

Each substation is estimated to cost between PHP 200 million and PHP 250 million, while the rehabilitation of the sub-transmission lines will require about PHP 130 million.

The sub-transmission line rehabilitation comprises four segments set to be completed within six to eight months.

The first project involves the construction of a 2.4-kilometer New Capitol 69 kV line from the existing Gonzaga Substation, requiring the installation of 41 poles standing 90 feet tall to ensure adequate safety clearance for the high-voltage line.

The second project is a 0.7-kilometer connection between the new Megaworld Substation and the Gonzaga Substation, involving 12 poles.

The third is a 1.6-kilometer line connecting to the new Megaworld Substation, requiring 31 poles.

The fourth and most critical segment is the rehabilitation of the Bacolod-Bata 69 kV line, which will increase its wheeling capacity from 126 megavolt-ampere (MVA) to 220 MVA.

“We will rehabilitate the Bata 69kV line so that its capacity of 126 megavolt-ampere will increase to 220 MVA for it to supply energy to the new substations,” Zaporteza said.

Multiple preparatory works began on March 8, when crews worked from 2 a.m. to 6 p.m. across the system. Zaporteza said that single day accounted for only about 2 to 3 percent of the total work to be completed over the next six to eight months.

Zaporteza said the public should expect weekly maintenance activities, and in some cases on weekdays, that may require power interruptions ranging from 30 minutes to eight hours depending on the scope of each activity.

He assured consumers that Negros Power will plan the work to keep interruptions to the least extent possible by using switching techniques to minimize the number of affected customers.

The infrastructure push is driven by rising electricity demand fueled by major mixed-use developments in the franchise area, including the Megaworld township, PHINMA’s Saludad project, and the Rockwell Center in Bacolod.

“These developments will contribute a lot to Bacolod City in terms of jobs generated, infrastructure available in the city, and the amenities that the city can offer. One of the requirements of these developments, aside from land, is, of course, reliable electricity,” Zaporteza said.

INVESTMENTS

In the first year of its five-year plan, Negros Power invested no less than PHP 1.3 billion in network rehabilitation and upgrades that yielded significant improvements in its major reliability indicators.

The System Average Interruption Frequency Index (SAIFI) improved by 38 percent, while the System Average Interruption Duration Index (SAIDI), which measures the length of power system interruptions, improved by 67 percent.

“This is what we will invest, among others, in 2026. In the first year, we already invested PHP 1.3 billion for enhanced infrastructure reliability. This is a five-year plan. We’re now in our Year 2,” Zaporteza said.

He reported that energy consumption across the franchise area has grown by about 7 percent year-on-year since 2023, a trend he attributed to the improved reliability of the distribution network.

The increased consumption, in turn, has pushed network loading higher, necessitating the sub-transmission line upgrades and additional substations.

Negros Power’s existing substations serving Bacolod City include the Reclamation Substation with a capacity of 25 MVA; Mountain View with 37 and 25 MVA; Gonzaga, Burgos, and Alijis each at 37 MVA; and Sum-ag at 12 MVA.

Without the new substations, Zaporteza said projected loading of existing facilities would reach 90 to 100 percent over the next five years. Negros Power maintains a target loading threshold of 70 percent to ensure adequate capacity for growth, safe operations, and network flexibility.

Asked whether the investments would affect power rates, Zaporteza said average rates in 2025 actually declined compared to 2024 despite the PHP 1.3 billion rehabilitation spending, largely because the resulting load growth helped distribute costs more efficiently.

“Yes, we will be spending. Yes, we will be investing. But because there is equivalent load growth, the peso-per-kilowatt-hour could remain the same,” he said.

He added that Negros Power does not implement any rate adjustment without approval from the Energy Regulatory Commission (ERC), noting that the company has already filed the new projects with the regulator for evaluation.

Zaporteza also noted that generation charges, which are determined by real-time market pricing, account for the monthly fluctuations in electricity bills rather than distribution costs.

5-YEAR PLAN

On the progress of its five-year development plan, Zaporteza said Negros Power has completed 39 percent of the plan in its first 19 months of operations – ahead of the roughly 30 percent linear target for the same period.

The plan aims to deliver enhanced reliability, upgraded systems, improved safety, better maintenance protocols, increased efficiency, and improved substation performance across the franchise area.

“We will finish the five-year plan. Hopefully, God willing, it might even take less than five years,” Zaporteza said.

On the status of the underground cable system along Lacson Street in Bacolod City, Zaporteza said the project is still ongoing and is expected to be completed within a couple more months.

He said the project involves not just pole installation but extensive civil works, including digging, which makes it more challenging than typical overhead line construction.

The destructive effects of Typhoon Tino in November 2025 halted work for almost two months, pushing back the schedule.

Zaporteza added that Negros Power is also coordinating with telecommunications companies and other pole users currently sharing its existing facilities, since the removal of overhead infrastructure requires joint action.

“We are still doing it. We are probably looking at a couple of more months to complete it, again because of the delays I mentioned earlier, but the project is still ongoing and we are determined to finish it,” he said.

Aside from Bacolod, Negros Power serves consumers in the cities of Talisay, Silay, and Bago, as well as the municipalities of Murcia and Don Salvador Benedicto.