PSALM petitions lower 2018 power bill for Luzon and Mindanao, rate adjustment for the Visayas

By  Lenie Lectura -June 28, 2019

https://businessmirror.com.ph/2019/06/28/psalm-petitions-lower-2018-power-bill-for-luzon-and-mindanao-rate-adjustment-for-the-visayas/

The Power Sector Assets and Liabilities Management Corp. (PSALM) filed an application with the Energy Regulatory Commission (ERC) to reduce power rates in Luzon and Mindanao for the monthly fuel and purchased power costs recorded in 2018.

In its 13-page application for the true-up adjustments of fuel and purchased power costs (TAFPPC) and foreign exchange-related costs  (TAFxA), PSALM informed the ERC that it would refund its customers in Luzon by P1.2986 per kilowatt-hour and P0.6953 per kWh for its Mindanao customers.

In Visayas, however, PSALM asked for the regulator’s green light to recover P0.7040 per kWh in the form of rate increase to reflect the adjustments in fuel and purchased power costs from January to December last year.

PSALM said the rate recovery across all grids would be implemented over a one-year period.

“It is most respectfully prayed to this Honorable Commission that…the following TAFPC + TAFxA per grid and corresponding true-up adjustment rates with one- year refund period for the Luzon and Mindanao grids and one-year recovery period for the Visayas grid, covering the test period January 2018 to December 2018 be approved,” it said.

PSALM, which manages the assets and liabilities of the National Power Corp., explained that such application for true-up adjustments is being sought to allow it to recover or refund the difference between the actual allowable costs incurred for a certain period and actual revenues generated.

For the fuel and purchased power cost, the application covers the costs incurred and revenues generated by PSALM from the Malaya Thermal Power Plant in Luzon; Unified Leyte Plants in the Visayas; Mount Apo hydro facility and Mindanao coal plant in Mindanao.

For foreign exchange-related costs, these are computed based on the difference between the principal debt payments made during the test period converted into Philippine peso using the actual exchange rate as of payment date and using the ERC-approved base foreign exchange of 44.0494 to a dollar.