ERC approves power supply contracts for Visayas grid

Cebu Energy Development Corp. (CEDC) and Panay Energy Development Corp. (PEDC) of the Metrobank Group have secured regulatory approvals for their long-term power supply contracts with electric cooperatives in the Visayas.

The Energy Regulatory Commission approved the electric power purchase agreements between CEDC and Cebu I Electric Cooperative Inc. (Cebeco I), and PEDC and Iloilo I Electric Cooperative Inc. (Ileco I).

CEDC signed a 15-year Electric Power Purchase Agreement (Eppa) with Cebeco I last September 2010. Under this agreement, CEDC will supply at least 3 megawatts to Cebeco I using the power to be generated from its 246-MW coal-fired power plant in Toledo City, Cebu. The approved rate was P5.2046 a kilowatt-hour (kWh).

According to CEDC, this agreement was necessary to address the impending power supply shortage within Cebeco I’s franchise area, given that the electric cooperative could no longer source enough electricity from the government-run National Power Corp.

Meanwhile, PEDC signed a 25-year Eppa with Ileco I in April this year. Under this agreement, PEDC will supply 3.5 MW to Ileco I using the power generated from its 164-MW coal facility in La Paz, Iloilo City.

PEDC stressed the importance of the power supply agreement it forged with Ileco I as it pointed out the problems regarding the quality and reliability of electric power in Panay.

“The quality of power in Panay, particularly during off peak when the bulk of the power requirements of the island comes from Negros Island, is dependent on the submarine cable connecting Negros and Panay. The limitation in the capacity that this cable can take in inevitably limits the supply of electric power to Panay, and the transmission of electric power through such underwater facility affects the quality and reliability of the electric power transmitted to Panay,” PEDC explained in its previous application.

The additional capacity from PEDC would thus improve the quality and reliability of electric power delivered to Ileco I’s consumers.

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