PENELCO plans to undertake major projects over the next five (5) years, part of which can be supported by PENELCO from the internal fund generation and part from outside borrowings.

(1) increase in number of connections which is projected to increase by five percent (5%) annually, and (2) increase in usage rate of electricity, which is projected also to increase by five percent (5%) each year.

Ultimately, PENELCO plans to install Substations to all of its covered municipalities and City in the Province of Bataan. Substations are designed to carry loads between 45%-50% of its rated capacity in order to transfer loads from one substation to adjacent substation in case of prolong outages. Likewise, every substation will consist of four (4) feeders for reliability and easy maintenance. On the average, there will be a total of 68 feeders servicing at least 1500 customers per feeder for a total of 17 substations at the end of the medium term development plan. Each feeder will have an average of 15 kilometers of distribution line per feeder thereby making it a more efficient system. Likewise, only 1.4% of the coverage area will be affected for each feeder interruption. The year 2003 is used as the base year or first study period.

New Substations are commonly designed in accordance with good engineering practice to meet the demand of both the Grid and Distribution Code of the Electric Power Industry Reform Act (EPIRA Law). State of the art protection are used with four legged steel structures, SF6 breakers both in the 69kV and 13.8kV side, type tested metal clad or modular switchgear and quality power transformers. Supervisory Control and Data Acquisition (SCADA) is also a consideration in the design and future plan.

Proposed substations are also designed to be located strategically at load centers considering load growths and expansions and as near as possible to the existing sub-transmission line of TansCo for economic consideration. A total of 28.5 kilometers of 69kV Sub-transmission line is necessary to satisfy the installation of new substations. Also considered in the plan is the possible acquisition of Substation Transformers and 69kV facilities of TransCo.

With the realization of these projects, the PENELCO will have an aggregated capacity of 150MVA and will attain its targeted system loss of 7% by the end of 2009.