http://www.bworldonline.com/content.php?section=Economy&title=erc-grants-meralco-provisional-authority-to-source-power-supply&id=129198
THE MANILA Electric Co. (Meralco) has obtained provisional authority from the regulator on two interim power supply agreements (IPSA) in light of an expected high electricity demand during months when a contracted plant is on maintenance shutdown.
In
its order dated June 8, the Energy Regulatory Commission (ERC) said Meralco and
the generation companies it had signed agreements with, Toledo Power Co. and
Panay Power Corp., had satisfied the requirements for the issuance of the
provisional authority.
Meralco has contracted 28 megawatts (MW) from Toledo Power from 10:00 a.m. to 9:00 p.m., Mondays to Saturdays, and 45 MW from Panay Power during the same trading intervals.
The ERC said Meralco “is projected to experience a significant capacity deficit in its portfolio during the summer months of 2016. This deficit is due to the expected high demand during this period, the scheduled maintenance shutdowns of [Meralco’s] contracted generating units, and possible occurrences of forced plant outages.”
Meralco earlier told the commission that the 460-MW power plant of Quezon Power Philippines, Ltd. Co., which is fully contracted to the distribution utility, had been on shutdown since Feb. 15, and would remain so for the next three months.
Toledo Power owns a 40-MW diesel-fired power plant in Carmen, Toledo City, Cebu, while Panay Power owns a 72-MW similar plant in La Paz, Iloilo City.
The ERC said it recognized the need for Meralco to source its power deficiency from interim bilateral supply agreements with generation companies with available capacity. These deals would allow the company to mitigate its exposure to the price volatility of the Wholesale Electricity Spot Market. The regulator also said the supply contracts were beneficial to electricity consumers.
Based on Meralco’s demand-supply forecast from March 2016 to February 2016, demand will be highest in May at 5,299 MW and remain above the 5,000-MW mark until August, then gradually ease until January.
Supply will not meet demand resulting in a deficit, which will become more pronounced in April and from July to September. The deficit is expected to peak at 1,651 MW in July.
Meralco has a legislative franchise to operate and maintain a distribution system with Metro Manila and the cities and municipalities in Bulacan, Cavite, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Quezon, and Pampanga.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is party owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
Meralco has contracted 28 megawatts (MW) from Toledo Power from 10:00 a.m. to 9:00 p.m., Mondays to Saturdays, and 45 MW from Panay Power during the same trading intervals.
The ERC said Meralco “is projected to experience a significant capacity deficit in its portfolio during the summer months of 2016. This deficit is due to the expected high demand during this period, the scheduled maintenance shutdowns of [Meralco’s] contracted generating units, and possible occurrences of forced plant outages.”
Meralco earlier told the commission that the 460-MW power plant of Quezon Power Philippines, Ltd. Co., which is fully contracted to the distribution utility, had been on shutdown since Feb. 15, and would remain so for the next three months.
Toledo Power owns a 40-MW diesel-fired power plant in Carmen, Toledo City, Cebu, while Panay Power owns a 72-MW similar plant in La Paz, Iloilo City.
The ERC said it recognized the need for Meralco to source its power deficiency from interim bilateral supply agreements with generation companies with available capacity. These deals would allow the company to mitigate its exposure to the price volatility of the Wholesale Electricity Spot Market. The regulator also said the supply contracts were beneficial to electricity consumers.
Based on Meralco’s demand-supply forecast from March 2016 to February 2016, demand will be highest in May at 5,299 MW and remain above the 5,000-MW mark until August, then gradually ease until January.
Supply will not meet demand resulting in a deficit, which will become more pronounced in April and from July to September. The deficit is expected to peak at 1,651 MW in July.
Meralco has a legislative franchise to operate and maintain a distribution system with Metro Manila and the cities and municipalities in Bulacan, Cavite, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Quezon, and Pampanga.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is party owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
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