Meralco to source power from Southwest Luzon Power Generation Corp.

Business Mirror
by Lenie Lectura - August 25, 2015

THE Manila Electric Co. (Meralco) will partly source its power requirements from a subsidiary of Semirara Mining and Power Corp.

Semirara, the coal mining arm of Consunji-led DMCI, said on Tuesday that its wholly owned subsidiary, Southwest Luzon Power Generation Corp. (SLPGC), has signed a power-supply agreement with the country’s largest utility firm. Under the agreement, Meralco will source a total of 120 megawatts (MW) of power from SLPGC. The deal will take effect on March 26, 2016.

“We disclosed that the company’s and Manila Electric Co.’s Local RES segment have signed a power-supply agreement with a term until December 25, 2018, which may be extended up to four years upon mutual agreement of the parties,” Semirara told the stock exchange.

Last week DMCI President Isidro Consunji said his company signed a power deal with Meralco. He gave no further details then.

Semirara makes up 97 percent of coal production in the country. Last month coal operation of the company was suspended by the Department of Energy (DOE) following the landslide in North Panian that left nine workers dead.

The suspension will take effect while the DOE probe is being conducted.

The DOE added that it ordered the suspension of coal-export shipments to prioritize the requirements of domestic coal consumers.

Semirara is hoping that the DOE suspension order would be lifted soon since the Department of Environment and Natural Resources (DENR) has already lifted a similar order.

The DENR suspended the company’s environmental compliance certificate (ECC) for its East Panian expansion project on July 21.

The lifting of the DENR suspension order was issued “on the basis of its finding that there is no adverse effect or damage to the environment in relation to the landslide that occurred at the North edge of the Panian Mine and same is “due to fortuitous event.” source