The Energy Regulatory Commission has granted provisional approval for the power supply contracts between San Miguel Consolidated Power Corp. (SCPC) and two electric cooperatives in Misamis Oriental and Siargao.
In separate orders made public on Aug. 25, the ERC found that SCPC contracts with Moresco I (Misamis Oriental I Rural Electric Cooperative) and Siargao Electric Cooperative were competitive compared to similar contracts.
The order for Siarelco was dated May 9, 2017, and that for Moresco I was dated June 27, 2017.
The regulator noted that SCPC’s total rate, net of fuel cost, resulted in P2.6873 per kilowatt-hour, “which is competitive among the recently approved (contracts) of TSI and FDC Misamis involving almost similar installed capacity and same technology.”
The ERC was referring to Therma South Inc. which has a two-unit power plant with an installed capacity of 300 megawatts, and FDC Misamis Power Corp. which has a three-unit plant with a total of 405 MW.
SCPC is building a two-unit coal-fired thermal power plant in Malita, Davao Occidental. The project, which uses circulating fluidized bed (CFB) technology, is estimated to cost about P26.9 billion, excluding financing cost.
Initially, SCPC estimated the project to cost P24.8 billion and planned to finance the construction entirely through equity of its parent company, SMC Global Power Holdings Corp.