(The Philippine Star) | Updated September 18, 2016 - 12:00am
MANILA, Philippines -
The Energy Regulatory Commission (ERC) has thumbed down 11 power supply deals
deemed “legally defective.”
The ERC dismissed each
power supply agreement (PSA) applications of Biliran Electric Cooperative
(BILECO) and La Union Electric Cooperative I (LUELCO) with GNPower Dinginin Coal
Plant Ltd. Co. (GNPD), a joint venture among GNPower AC Energy Holdings Inc. of
the Ayala Group and Sithe Global Power LLC.
The power regulator
also denied the PSA application of Cotabato Electric Cooperative (COTELCO)
& Western Mindanao Power Corp. (WMPC) of the Alsons Group and of Camarines
Sur IV Electric Cooperative Inc. (CASURECO IV) & Unified Leyte Geothermal
Energy Inc. (ULGEI) of the Lopez Group.
The applications of
several electric cooperatives with San Miguel Corp. (SMC) related power plants were
also denied.
The ERC dismissed the
PSAs of Cebu I Electric Cooperative (CEBECO I) and Cebu II Electric
Cooperative (CEBECO II) with Mariveles Power Generation Corp. (MPGC), a joint
venture between SMC Global Power Holdings Inc. and Meralco Powergen Corp. that
is building a 4x150-MW circulating fluidized bed coal-fired power generating
facility in Mariveles, Bataan.
Also thumbed down were
the PSAs of Davao del Norte Electric Cooperative (DANECO), Siargao Electric
Cooperative (SIARELCO), Misamis Oriental I Electric Cooperative (MORESCO I) and
Zamboanga del Sur Electric Cooperative (ZAMSURECO I) with San Miguel
Consolidated Power Corp. (SMCPC), which is developing a coal-fired power plant
in Malita, Davao.
Lastly, the power
regulator dismissed the PSA between Nueva Vizcaya Electric Cooperative Inc.
(NUVELCO) & San Miguel Energy Corp. (SMEC), the independent power producer
administrator of 1,000 megawatts of the 1,294-MW Sual coal-fired thermal plant.
According to the ERC,
these 11 applications failed to meet the agency’s requirements of Verification
and Certification of Non-Forum Shopping. Consequently, the applications were
deemed legally defective.
“The ERC, being a
quasi-judicial agency, is duty-bound to ensure that applicants and petitioners
doing business in its regulated field act with truthfulness and diligence in
the filing of their pleadings,” ERC chairman and CEO Jose Vicente Salazar said.
Under ERC’s 2006 Rules
of Practice and Procedure, applications for approval of contracts must be
accompanied by a verification stating that the affiant has read the
pleading and that the allegations are true and correct of his personal
knowledge or based on authentic records.
Meanwhile, applications
should also contain a sworn Certification of Non-Forum Shopping stating the
applicant has not commenced any action or filed any claim involving the same
issues in any other court, tribunal or quasi-judicial agency.
The ERC earlier
extended the deadline for filing of applications for approval of PSAs that did
not undergo competitive selection process (CSP), a reform in the power industry
which requires all distribution utilities and electric cooperatives to
conduct an open and competitive process in selecting the power generating
company from whom they are to purchase their supply for the captive
markets.
However, the power
regulator said the said applicants still filed “legally defective
applications.”
The ERC has implemented
a rigorous pre-filing process in order to ensure that PSA applications
are in compliance with its requirements and resolutions.
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