THE Energy Regulatory Commission (ERC) has allowed Manila Electric Co. (Meralco) to procure 100 megawatts (MW) of baseload power supply from the coal-fired power plant of a unit of Aboitiz Power Corp.
In a decision promulgated on Aug. 22, the ERC granted interim relief to Meralco and GNPower Dinginin Ltd. Co. (GNPD) for the implementation of their power supply agreement (PSA) at an annual capacity rate of P17,228.88. This translates to P1.9668 per kilowatt-hour, excluding other charges such as fuel costs.
The ERC said the proposed rates are lower than the previously approved PSA rates for the same power plant.
“The Commission also finds that the proposed rate in the subject PSA is lowered compared to the rates of other Meralco suppliers utilizing coal and natural gas as fuel,” the regulator said.
GNPD owns and operates a 1,336-MW coal-fired power plant in Mariveles, Bataan.
The power supplier emerged as one of the winning bidders in the competitive selection process (CSP) conducted by Meralco in August last year, offering 100 MW out of the required contract capacity of 600 MW.
The PSA will cover Meralco’s future baseload requirements over a 15-year period starting Aug. 26.
The ERC directed GNPD to provide replacement power “at all times, even during the planned or forced outage of the plant.”
The companies must file a motion with the ERC and specify the grounds for termination, in accordance with the PSA and CSP Guidelines, if they wish to end the deal.
“Any increase in the contracted capacity under the applicants’ PSA shall require prior approval from the Commission. This is to ensure that Meralco supplies its electricity in the least-cost manner to its captive market,” the ERC said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
