ERC issues compliance certificates to 2 power plants

Business Mirror
WEDNESDAY, 26 OCTOBER 2011 18:59 PAUL ANTHONY A. ISLA / REPORTER


THE Energy Regulatory Commission (ERC) said on Wednesday that it has recently approved the renewal of the Certificate of Compliance (COC) of Bantayan Island Power Corp.’s (Bipcor) 6.64-megawatt (MW) diesel power plant.


ERC said it has also recently issued a provisional COC to Oriental Mindoro Electric Cooperative Inc.’s (Ormeco) 1.6-MW Dulangan mini-hydroelectric power plant located in Naujan, Oriental Mindoro.


Bipcor’s diesel power plant, according to ERC, is located in Bantayan, Bantayan Island, Cebu.


ERC said Bipcor is a stock corporation that was registered with the Securities and Exchange Commission (SEC) in February 2004 with the primary purpose of designing, developing, constructing and operating diesel generating plants. It is 60 percent owned and operated by Beacon Power Inc., a Philippine corporation.


Bipcor operates in a Small Power Utilities Grid (SPUG) area and has a connection agreement with the Bantayan Island Electric Cooperative Inc. (Banelco).


The ERC said the 6.64-MW plant is directly connected to the 13.2-kilovolt (kV) transmission system of Banelco.


The ERC added that the Power Supply Agreement (PSA) with Banelco is on a Build- Operate-Own (BOO) scheme with a 15-year cooperation period that started in June 2004. The PSA was approved by the ERC in February 2006.


The ERC said the BOO includes the maintenance and management of two units of three-MW bunker-fired diesel power plant that will be utilized as base load source of power. Additional smaller units that support the power plant include two units of 340-kilowatt (kW) Volvo diesel engine generating sets that will serve as peak load source of power.


Ormeco is a non-profit, non-stock rural electric cooperative registered in February 1973 with the National Electrification Administration (NEA).


Ormeco owns and operates the Dulangan Mini-Hydroelectric Power Plant (MHEPP) which was commissioned in December 1989.


The 1.6 MW plant, composed of four units, has a rated capacity of 400-kW and is a run-of-river type hydroelectric power plant located along the Dulangan River of Naujan.


The ERC said it issued a provisional COC to Ormeco based on its urgent request CO. The ERC added that the final COC renewal will be granted only upon the submission of the Memorandum of Agreement (MOA) with the Department of Energy (DOE) regarding the “Benefits to Host Communities” under Energy Regulation 1-94 and the Environmental Compliance Certificate (ECC), among others.


The ERC said the Bipcor and Ormeco’s generating plants are operating in isolated grids and are not connected to the high voltage transmission system. Both generating plants are not subject to the 30-percent and 25-percent market share limitations per grid and national grid, respectively.


The renewal of a COC is required of generation companies and must be filed at least six months prior to the COC’s expiration pursuant to the Revised Rules for the Issuance of COCs for Generation Companies and Facilities promulgated by the ERC and which took effect in April 2010.


“To protect the welfare of the electricity consumers, the renewal of COCs is required by the ERC to ensure that Generation Companies are still operating, and can maintain operating for another 5 years at the environmental, financial and technical standards required by law,” Zenaida Cruz-Ducut, ERC Chairperson, said.