Aboitiz-led Therma South Inc. is seeking regulatory approvals to implement its power supply agreements with two electric cooperatives in Mindanao, as these contracts will help ensure adequate and reliable power supply by 2015.
Therma South has forged 25-year agreements with Sultan Kudarat Electric Cooperative Inc. (Sukelco) and Bukidnon Second Electric Cooperative Inc. (Buseco) for the monthly supply of a combined 10 megawatts.
Based on two separate petitions filed before the Energy Regulatory Commission, Sukelco and Buseco noted that there was a “region-wide power supply deficiency in Mindanao resulting in frequent brownouts and power interruptions.”
“The current power crisis in Mindanao underscores the need [for the electric cooperatives] to enter into a bilateral agreement with generation companies for stable supply of electricity to customers,” the electric co-ops explained.
The power supply contracts will also address the growing requirements in both Sultan Kudarat and Bukidnon and ensure supply given the reduction of supply coming from government-run facilities that are managed by the Power Sector Assets and Liabilities Management Corp. (PSALM).