Host areas will not get priority during power crisis–ERC

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MONDAY, 18 JULY 2011 18:17 FELIX N. CODILLA III / CORRESPONDENT

A COMMISSIONER of the Energy Regulatory Commission (ERC) practically advised host communities not to rely on the government’s commitment that they will be prioritized on electricity allocation in times of power crises. This was the gist of Commissioner Jose C. Reyes’s reply to the query of an electric cooperative official in Leyte.

During the July 15 hearing on the power supply agreement between Leyte-V Electric Cooperative (Leyeco V) and Green Core Geothermal Inc., Wilfredo P. Madjus, member of Leyeco V’s board of directors, asked about the commitment made by energy officials that host communities will be given priority load dispatch during a power crisis.

Madjus was referring to the commitment certificate signed on July 27, 1994, by then-Department of Energy (DOE) Undersecretary Mariano S. Salazar, then-National Power Corp. (Napocor) president Francisco L. Viray and then-Energy Development Corp. (EDC) president Nazario C. Vasquez.

Those officials committed to dedicate a minimum 25 percent of available capacity and a maximum 25 percent of contracted capacity to the host local government in the event of a power crisis. Since the installed capacity of the Leyte Geothermal Production Plants (LGPP) is more than 400 megawatt (MW), Leyte should have been assured of at least 128 MW of energy on a radiating, diminishing scale.

The officials made the commitment to convince Ormoc officials to support the development of  the LGPP. Madjus said the power plants reneged on this commitment during last year’s energy crisis, which forced Leyeco V to implement rotational brownouts. But Madjus reminded Leyeco V that the commitment was made before the enactment of Republic Act (RA) 9136, or the Electric Power Industry Reform Act of 2001, when Napocor had full control of all generating assets.

“How can [Napocor] give what [it doesn’t] have?” he said.

Madjus didn’t follow up on his query nor raised the fact that the DOE and the EDC were also among those who made the commitment. Moreover, Section 6 paragraph 2 of the rules and regulations implementing section 5 of RA 7638, or the DOE Act of 1992, reiterates the giving of the priority load dispatch to host communities in times of power shortage.

Reyes advised Leyeco V to submit a position paper to the DOE on the matter and a simulation on the actual amount of energy it should get from the 25-percent load dispatch.