Written by Madelaine B. Miraflor Published on 20 March 2013
Publicly listed A Brown Co. Inc. (A Brown) has entered into a power supply deal with South Cotabato II Electric Cooperative Inc. (Socoteco II) in its bid to work on the worsening power shortage in Mindanao.
In a filing with the Philippine Stock Exchange, the company said that through its wholly owned subsidiary, Peakpower Energy Inc., it has entered into a Power Supply and Transfer Agreement with Socoteco II, wherein Peakpower will Build-Operate and Maintain-Transfer a 20.9-megawatt bunker-fired power plant in the franchise area of Socoteco II.
“This decision to build power generation facilities is our way of contributing a solution to the power problem in Mindanao,” Peakpower President Roel Castro said in a statement.
“We are pleased with the result of the negotiation process, Socoteco II welcomed our offer as a means of ensuring their peaking capacity requirements given the demand in their franchise area,” he added.
For his part, Elenito Senit, Socoteco II board president, said that they found the contract advantageous to the electric cooperative, given the reduction in the supply contracts with National Power Corp. (NPC) and a huge peaking requirement.
Earlier this month, the country’s system operator announced a generation deficiency of the Mindanao grid of 170 megawatts.
Given the limited output of hydropower plants and the reduced contract with NPC, Socoteco II has been compelled to continue to implement a four-hour rotational brownout, starting at 9 a.m. to 9 p.m.
A Brown said that it will assist in enabling power customers maintain their desired level of economic activities by putting up the needed power capacities especially during peak hours.
The power supply agreement and the associated electricity rates governing the power generator and the distribution utility will be subject to the approval of the Energy Regulatory Commission.
Located in the southernmost tip of the Philippines, Socoteco II supplies electricity to South Cotabato, Sarangani and General Santos. source
No comments:
Post a Comment