Thursday, September 29, 2016

ERC defers approval of 9 power supply agreements- Due to DENR’s concerns



by Madelaine B. Miraflor September 28, 2016

Responding to the concerns of Department of Environment and Natural Resources (DENR) regarding the issuance of Environmental Compliance Certificates (ECC), the Energy Regulatory Commission (ERC) has delayed the approval of as much as nine power supply agreements and contracts.
A document showed that ERC “resolved to hold in abeyance” the processing of pending applications for approval of power supply agreements without the required ECC from DENR.
“The Commission received a letter from the DENR informing it of the ongoing re-evaluation of the Environmental Compliance Certificates and further requesting that the Commission suspend the process of approvals of any power supply agreements pending before it in light of this re-evaluation,” ERC said in an order.
“The Commission shares the DENR’s concern in ensuring the protection of the environment and is determined to help safeguard the people’s right to a balanced and healthful ecology in accordance with the Constitution,” it added.
In separate files, ERC decided to put on hold the approval of the Power Supply Agreements (PSA) between Mariveles Power Generation Corporation (MPGC) and five companies including Manila Electric Co. (Meralco).
“Relevantly, the initial evaluation of the above-captioned application, together with its annexes disclosed that that the Mariveles Power Generation Corporation has not yet secured an ECC for the power plant subject thereof,” ERC said.
“The foregoing considered, the processing of the instant application is hereby held in abeyance,” it further said.
Other companies that MPGC would like to have separate PSAs and Power Supply Contracts (PSC) with are: Global Luzon Energy Development Corporation (GLEDC), Tarlac I Electric Cooperative, Inc. (TARELCO I), Aurora Electric Cooperative, Inc. (AURELCO), and Pampanga II Electric Cooperative, Inc. (PELCO II).
ERC also didn’t give the green light to the PSA between Palawan Electric Cooperative, Inc. (PALECO) and Delta P, Inc. (DELTA P) as well as between Cagayan Electric Power and Light Company, Inc. (CEPALCO) and Minergy Power Corporation (MPC).
Because of the same reason, ERC haven’t yet allowed Misamis Oriental II Electric Service Cooperative, Inc. (MORESCO II) and Astronergy Development Mindanao, Inc. (ASTRONERGY) to proceed with their Renewable Energy Supply Agreement.
ERC likewise hold its go signal to the Electric Power Purchase Agreement for the Unit 2 between the Iloilo I Electric Cooperative, Inc. (ILECO I) and Palm Concepcion Power Corporation (PCPC).

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