Business World Online
Posted on 11:32 PM, January 10, 2011
LOPEZ-led Energy Development Corp. (EDC) has signed a number of long-term power supply agreements with electric cooperatives in the Visayas.
EDC said in a statement subsidiary Green Core Geothermal, Inc. had agreed with seven electric cooperatives in Leyte and Negros to supply 58 megawatts (MW) of power.
The company will supply Negros Oriental II Electric Cooperative, Inc.
(Noreco II) 25 MW.
It also signed supply deals with six members of the Association of Visayas Electric Cooperatives. These are Negros Oriental I Electric Cooperative, Inc. (Noreco I), Negros Occidental Electric Cooperative, Inc. (Noceco), VMC Rural Electric Service Cooperative, Inc. (Vresco), the Don Orestes Romualdez Electric Cooperative, Inc. (Dorelco), Leyte II Electric Cooperative, Inc. (Leyeco II) and Leyte V Electric cooperative, Inc. (Leyeco V). Green Core said it has allocated a total of 33 MW for the six electric cooperatives.
The supply agreements will last for 10 years, the listed geothermal power producer said.
“From the start, we have always prioritized the electric cooperatives in our host areas as we want them to be the first to enjoy the benefits of having clean, reliable and affordable power. We’re happy that our cooperatives have partnered with us. We offer the most competitive price in the market and we’re investing heavily to improve the reliability of our plants so that power interruptions will be significantly reduced and eventually eliminated,” said EDC President and Chief Operating Officer Richard B. Tantoco in the statement.
The electric cooperatives’ previous contracts were with the state-owned National Power Corp., which used to own the Tongonan 1 and Palinpinon geothermal plants in Leyte and Negros Oriental. EDC acquired the power plants in 2009 and began negotiating the supply contracts in January 2010.
Green Core earlier signed power supply agreements with the Iloilo I Electric Cooperative, Inc., Iloilo II Electric Cooperative, Inc., Aklan Electric Cooperative, Inc., Capiz Electric Cooperative, Inc., and Dumaguete Coconut Mills, Inc.
EDC runs the 305-MW Tongonan 1 geothermal power plant and the 192-MW Palinpinon geothermal plant, as well as the 150-MW Bacon-Manito geothermal plant in Albay.
EDC’s net income rose by 446% to P7.58 billion from January to September 2010 from P1.39 billion in the same period in 2009.
Core profits rose by 27% to P6.44 billion from P5.08 billion in the same period the year previous.
The increase was attributed by the firm to the write-down of P3 billion in deferred tax assets in 2009 following the implementation of the Renewable Energy Act and P1.7 billion in other income reported in 2010 with the recovery of an impairment provision on the company’s claims for input value-added taxes.
EDC’s revenues grew by 21% to P19.3 billion in January to September last year from 2009’s P15.9 billion. Revenues from the sale of electricity alone increased by 71% to P17.5 billion during the nine-month period from P10.2 billion the year previous.
Shares in EDC closed at P5.90 apiece yesterday, down by 2.2% from its previous close of P6.03 apiece. -- E. N. J. David
The company will supply Negros Oriental II Electric Cooperative, Inc.
(Noreco II) 25 MW.
It also signed supply deals with six members of the Association of Visayas Electric Cooperatives. These are Negros Oriental I Electric Cooperative, Inc. (Noreco I), Negros Occidental Electric Cooperative, Inc. (Noceco), VMC Rural Electric Service Cooperative, Inc. (Vresco), the Don Orestes Romualdez Electric Cooperative, Inc. (Dorelco), Leyte II Electric Cooperative, Inc. (Leyeco II) and Leyte V Electric cooperative, Inc. (Leyeco V). Green Core said it has allocated a total of 33 MW for the six electric cooperatives.
The supply agreements will last for 10 years, the listed geothermal power producer said.
“From the start, we have always prioritized the electric cooperatives in our host areas as we want them to be the first to enjoy the benefits of having clean, reliable and affordable power. We’re happy that our cooperatives have partnered with us. We offer the most competitive price in the market and we’re investing heavily to improve the reliability of our plants so that power interruptions will be significantly reduced and eventually eliminated,” said EDC President and Chief Operating Officer Richard B. Tantoco in the statement.
The electric cooperatives’ previous contracts were with the state-owned National Power Corp., which used to own the Tongonan 1 and Palinpinon geothermal plants in Leyte and Negros Oriental. EDC acquired the power plants in 2009 and began negotiating the supply contracts in January 2010.
Green Core earlier signed power supply agreements with the Iloilo I Electric Cooperative, Inc., Iloilo II Electric Cooperative, Inc., Aklan Electric Cooperative, Inc., Capiz Electric Cooperative, Inc., and Dumaguete Coconut Mills, Inc.
EDC runs the 305-MW Tongonan 1 geothermal power plant and the 192-MW Palinpinon geothermal plant, as well as the 150-MW Bacon-Manito geothermal plant in Albay.
EDC’s net income rose by 446% to P7.58 billion from January to September 2010 from P1.39 billion in the same period in 2009.
Core profits rose by 27% to P6.44 billion from P5.08 billion in the same period the year previous.
The increase was attributed by the firm to the write-down of P3 billion in deferred tax assets in 2009 following the implementation of the Renewable Energy Act and P1.7 billion in other income reported in 2010 with the recovery of an impairment provision on the company’s claims for input value-added taxes.
EDC’s revenues grew by 21% to P19.3 billion in January to September last year from 2009’s P15.9 billion. Revenues from the sale of electricity alone increased by 71% to P17.5 billion during the nine-month period from P10.2 billion the year previous.
Shares in EDC closed at P5.90 apiece yesterday, down by 2.2% from its previous close of P6.03 apiece. -- E. N. J. David
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