Business World Online
Posted on January 13, 2014 11:26:26 PM
A SUBSIDIARY of Alsons Consolidated Resources, Inc. (ACR) and a power distributor in Davao have sought regulatory approval for their 25-year power supply agreement (PSA).
In a petition dated Dec. 11 and released to the media yesterday, Sarangani Energy Corp. (SEC) and Davao del Norte Electric Cooperative, Inc. (DANECO) asked the Energy Regulatory Commission to issue a provisional approval for the supply deal and subsequently make such approval permanent.
Under the agreement, SEC will supply 15 megawatts (MW) of electricity to DANECO through its 105-megawatt (MW) coal-fired power plant for a period of 25 years starting 2015.
The two parties said DANECO’s power requirements are “steadily increasing” and peak demand is expected to reach about 86.6 MW.
“Without the PSA, DANECO’s available power supply by 2015 will only be an average of 73 MW, resulting in a shortage averaging 13.6 MW,” they said.
“The implementation of the PSA will provide DANECO with an additional 15 MW of firm base load power supply, significantly contributing to DANECO’s available supply,” the petitioners added.
The petition showed that DANECO will source its remaining requirements from the Power Sector Assets and Liabilities Management Corp. (30 MW); Therma South, Inc. (15 MW); EEI Power Corp. (13 MW); and Therma Marine, Inc. (15 MW).
SEC and DANECO said “it is imperative that DANECO contracts for additional power supply in order to address its power requirements.”
“Otherwise, DANECO would not have sufficient power supply to detriment, not only to DANECO’s customers, but to local businesses as well,” the petition stated.
DANECO distributes electricity in the cities of Tagum and Samal, as well as the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod -- all in the province of Davao del Norte. Its franchise area also covers the municipalities of Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan and Pantukan -- all located in the province of Compostela Valley.
Meanwhile, SEC -- a 75-25 joint venture between ACR and Japanese firm Toyota Tsusho Corp. -- is building a 210-MW, P13-billion power plant in the municipality of Maasim in Sarangani province.
The first 105-MW unit of the coal plant is scheduled to start commercial operations in September 2015, while the second unit of the plant will be operational in 2016.
SEC, in February last year, tapped Daelim Industrial Company Ltd. of South Korea as the engineering, procurement and construction contractor for the project.
Japanese firm Fuji Electic Company Ltd., meanwhile, was chosen as the supplier of the turbine generates of the plant.
The company is unit of ACR, the listed holding firm of the Alcantara Group.
ACR, through its subsidiaries, primarily engages in power generation, property development, mining and product distribution business.
The company, through Mapalad Power Corp., owns and operates the 98-MW Iligan diesel plant in Lanao del Norte.
The company also operates a 100-MW diesel power plant in Zamboanga City through Western Mindanao Power Corp. and a 55-MW diesel plant in Sarangani through Southern Philippines Power Corp.
ACR’s consolidated net income climbed 6.2% to P793.19 million in January to September last year from P747.03 million in the same period in 2012. Revenues jumped 42.4% to P2.35 billion from P1.65 billion, while expenses grew by 91.5% to P1.48 billion from P772.7 million. Its shares closed flat at P1.33 apiece yesterday. --Claire-Ann Marie C. Feliciano source
Under the agreement, SEC will supply 15 megawatts (MW) of electricity to DANECO through its 105-megawatt (MW) coal-fired power plant for a period of 25 years starting 2015.
The two parties said DANECO’s power requirements are “steadily increasing” and peak demand is expected to reach about 86.6 MW.
“Without the PSA, DANECO’s available power supply by 2015 will only be an average of 73 MW, resulting in a shortage averaging 13.6 MW,” they said.
“The implementation of the PSA will provide DANECO with an additional 15 MW of firm base load power supply, significantly contributing to DANECO’s available supply,” the petitioners added.
The petition showed that DANECO will source its remaining requirements from the Power Sector Assets and Liabilities Management Corp. (30 MW); Therma South, Inc. (15 MW); EEI Power Corp. (13 MW); and Therma Marine, Inc. (15 MW).
SEC and DANECO said “it is imperative that DANECO contracts for additional power supply in order to address its power requirements.”
“Otherwise, DANECO would not have sufficient power supply to detriment, not only to DANECO’s customers, but to local businesses as well,” the petition stated.
DANECO distributes electricity in the cities of Tagum and Samal, as well as the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod -- all in the province of Davao del Norte. Its franchise area also covers the municipalities of Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan and Pantukan -- all located in the province of Compostela Valley.
Meanwhile, SEC -- a 75-25 joint venture between ACR and Japanese firm Toyota Tsusho Corp. -- is building a 210-MW, P13-billion power plant in the municipality of Maasim in Sarangani province.
The first 105-MW unit of the coal plant is scheduled to start commercial operations in September 2015, while the second unit of the plant will be operational in 2016.
SEC, in February last year, tapped Daelim Industrial Company Ltd. of South Korea as the engineering, procurement and construction contractor for the project.
Japanese firm Fuji Electic Company Ltd., meanwhile, was chosen as the supplier of the turbine generates of the plant.
The company is unit of ACR, the listed holding firm of the Alcantara Group.
ACR, through its subsidiaries, primarily engages in power generation, property development, mining and product distribution business.
The company, through Mapalad Power Corp., owns and operates the 98-MW Iligan diesel plant in Lanao del Norte.
The company also operates a 100-MW diesel power plant in Zamboanga City through Western Mindanao Power Corp. and a 55-MW diesel plant in Sarangani through Southern Philippines Power Corp.
ACR’s consolidated net income climbed 6.2% to P793.19 million in January to September last year from P747.03 million in the same period in 2012. Revenues jumped 42.4% to P2.35 billion from P1.65 billion, while expenses grew by 91.5% to P1.48 billion from P772.7 million. Its shares closed flat at P1.33 apiece yesterday. --Claire-Ann Marie C. Feliciano source
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