Psalm seeks adjustment in fuel, forex costs

Power rates in Luzon may go down by 20.68 centavos per kilowatt-hour should regulators approve the adjustment in the fuel and foreign exchange costs of state-run Power Sector Assets and Liabilities Management Corp.

Based on a petition filed before the Energy Regulatory Commission, electricity rates in Mindanao may also go down by 5.06 centavos per kWh, but rates in Visayas may go up by 7.78 centavos per kWh.

The refund for Luzon and Mindanao and the recovery for Visayas are proposed to be spread over five years, according to PSALM’s application for the approval of True-Up Adjustments of Fuel and Purchased Power Costs (TAFPPC) and Foreign Exchange (TAFXA).

The application covers January to December 2012.

An application for true-up adjustments is usually filed to allow power entities like PSALM to either 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 costs, the application covers the costs incurred and revenues generated by PSALM from the Malaya thermal power plant in Luzon; Naga power facility, and the Power Barges 101, 102 and 103 in the Visayas; Power Barge 104, Southern Philippines Power Corp.’s (SPPC) 55-megawatt plant; and Western Mindanao Power Corp.’s (WMPC) 100-MW facility in Mindanao.

Foreign exchange related costs, meanwhile, are computed based on the difference between the principal debt payments converted into Philippine peso using the actual exchange rate as of payment date and using the base foreign exchange of P44.0494 to a dollar, as stated in an ERC order dated December 2009.