ERC to hold public hearing on power supply agreement in Puerto Princesa

Business Mirror

Published on Wednesday, 27 March 2013 19:29

Written by PNA

PUERTO PRINCESA CITY—The Energy Regulatory Commission (ERC) will be holding a public hearing here on April 2 over the application of the Palawan Electric Cooperative (Paleco) for it to approve the Power Supply Agreement (PSA) with DMCI Power Corp. (DPC) with a request for provisional authority.

It was the DPC that won the competitive selection process (CSP) of the Paleco on July 17, 2012, as its third independent power provider.

The signing of the PSA was done on July 25, 2012, between Paleco and DPC for a 25-megawatt guaranteed dependable capacity for a period of 15 years from September 1, 2013, to August 31, 2028.

For the first year of operation of DPC, it will use the secondary technology of pure diesel from September 2013 to October 2014 with a true cost generation rate (TCGR) of P12.80 per kilowatt hour.

On the second year, from October 2014, DPC will use the primary technology of 75-percent coal and 25 percent diesel with a TCGR of P9.38 per kilowatt hour.

Paleco said these will not affect the consumer rate that is being paid by its members because it will continue to collect the subsidized approved generation rate (SAGR).

The difference with TCGR that will be collected by the power suppliers will be taken from the Universal Charge-Missionary Electrification that is in turn being collected by the Power Sector Assets and Liabilities Management Corp. from everyone that uses power in the country.

Vicky Basilio of the Paleco Information Office said the public hearing will be open to everyone, or groups, to extend their opinions to the ERC.

The proposed coal-power plant of the DPC is one that is currently muck in controversy in Palawan as various environment non-governmental organizations, including religious organizations, that claim it is destructive to the environment.

A staunch opponent of the DPC’s coal power is the Katala Foundation Inc., which said that once constructed, the plant will cause a hindrance to the flight path of the critically threatened Philippine cockatoo.   source

PNA