The National Electricity Agency (ANEEL) has authorized the Hydroelectric Company of São Francisco (Chesf) to perform reinforcements at the Igapora III Substation in the northeastern Bahia state, Brazil.

The company will receive a permitted annual revenue (RAP) of R$7.7m ($3.1m) to install connection modules, banks of autotransformers, a general infrastructure module, an infrastructure maneuver module, bar interconnection module, connection bars reactor module, bank of bar reactors, among other equipment.

Established by ANEEL to compensate the concessionaire investments in electricity transmission facilities, RAP also covers the costs of operation and maintenance that companies have with these endeavors.

The RAP value for the transmission service remuneration is calculated based on the useful life of equipment, with the receipt from the date of start of commercial operation.

The readjustment of values is conducted by the index established in the Concession Agreement signed between the Union and the Concessionaire transmission.