A subsidiary of Energy Development Corp. (EDC) and the Capiz Electric Cooperative Inc. (Capelco) have extended their power supply deal, realizing savings for customers.
EDC, the country’s top geothermal power-generation firm, said in a statement that Green Core Geothermal Inc. (GCGI) and Capelco have agreed to set new pricing under an amended Power Supply Agreement (PSA). The amendment extended the existing contract to December 2040. The original 10-year PSA was signed in August 2010.
Based on the amended deal, GCGI reduced its price in 2015 by about P0.30 a kilowatt-hour. Capelco has saved for its member consumers P140 million annually in generation charges.
GCGI president Richard Tantoco said the generation firm’s price structure gave Capelco the benefit of stable and predictable prices. “With power supply in Panay (traditionally) coming from imported fossil-fuel based sources, GCGI effectively helps Capelco minimize their risk from unpredictable foreign exchange rate fluctuations and volatile global fuel price movements. This is a major benefit for Capelco granted that, historically, coal price movements have swung wildly,” Tantoco said.
Also under the amended contract, GCGI agreed to increase supply up to 15MW from 12MW for one year starting September 2014 to September 2015, and up to 18 MW starting September 2015 until December 2040.
“Capelco was very pleased with the results of the repricing endeavors with GCGI given that its benefits will be directly felt by our member consumers,” Edgar Diaz, the electricity cooperative’s general manager, said. He said GCGI has been a reliable power supplier that offers very competitive rates.
GCGI operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plants in Negros Oriental.
Capelco is one of the electric cooperatives in Panay and supplies electricity to 17 cities and municipalities in Capiz.