Kalinga power coop execs deny fund malversation

By Geraldine G. Dumallig

TABUK CITY, Kalinga – Executives of Kalinga Apayao Electric Cooperative denied a accusations of fund malversation and inefficiency due to reported burning of a transformer that resulted to total blackout of their coverage area for almost three weeks.

Executives of the power firm made the denial before the provincial board responding to issues presented by board member Chester Alunday.

KAELCO trading officer Leo Agcatan said except for the high collection rates, other allegations were baseless.

On the issue that KAELCO did not comply with the National Electrification Administration audit team recommendation to change the 5 megavolt ampere (5 MVA) sub-station transformer to a 10 MVA capacity, Agcatansaid construction of the new sub-station unit was ongoing since construction started August 2011.

He said at the time of the fire, the replacement transformer was at the Bureau of Customs in Manila pending clearance for its transportation to Tabuk City.

He said had it not been for the plan of the cooperative to upgrade the 5-MVA sub-station, the result could have been worse considering “that it would take more than 10 months to start the process” from bidding to construction and installation of the entire sub-station unit.

“Fortunately, we only fell short of two weeks before the new 10 MVA substation was finally commissioned in service on February 25, 2012,” he said.

The management he said, has also denied the alleged “technical malversation” of funds saying it was baseless considering that for 2011, the cooperative has only acquired two units vehicles where one was a reconditioned KIA Ceres Van from the 1-CARE Party List and the other a brand new Isuzu Elf which is partially paid and supported by a board resolution.

Regarding the high power rates in Kalinga, KAELCO claimed that the rate was based on the Electric Power Industry Reform Act of 2001.

The KAELCO management in a statement said “no electric cooperative or other electric distribution utilities have the explicit or implied autonomy to do so or impose any integral rate without the prior approval of the Energy Regulatory Commission.”

Alunday earlier called on the management to clarify certain allegations that resulted to the burning of the KAELCO transmitter as he requested for the SP to “act on the crisis.”

He alleged that the fire could have been prevented had the KAELCO heeded the recommended measures of the NEA Auditing team to immediately replace the old transformer and that the loan granted by the NEA to purchase reclosers had been re-aligned to purchase service vehicles.

He also asked for the clarification and review of various charges collected by KAELCO from member-consumers considering that “KAELCO was charging a higher rate per kilo watt per hour compared to other nearby electric cooperatives.”