Coal-fired plant to lower Iloilo power rate

Sunstar Iloilo

THE first coal-fired power plant that is slated to be operational by December 2010 will lower the cost of electricity rate in Iloilo City and the rest of its service areas.

Engr. Gil Altamira, Panay Energy Development Corp. (PEDC) manager for commercial operations, said the power rate will be reduced by P1.85 per kilowatt-hour.

"While other electric utilities will increase its power rate by more than P3 per kilowatt-hour next year, PEDC will honor its social responsibility to Iloilo City by lowering its power cost sold to Panay Electric Company (Peco)," Altamira said.

Peco is the sole power distributor in Iloilo City and is under fire recently for selling electricity at P13.30 per kilowatt-hour to consumers. This rate has been regarded as the highest in the country, if not in the entire world.

Altamira said Peco is now buying power from Panay Power Corp., a sister company of PEDC, at P6.71 per kilowatt-hour, including load factor.

But the Energy Regulatory Commission (ERC) has allowed Peco to sell power to its consumers at profitable rate by injecting other commercial and industrial charges.

Peco recently signed a purchase agreement with PEDC for the utilization and distribution of power in the city that will ensure enough power supply by November or December, as soon as PEDC's coal fired power plant operates.

PEDC is operating two coal-fired power plants of 82 megawatts each. One plant was fired tested last week after its construction completion. The other plant is expected to be operational by January or February 2011. (LCP)