Photo from FDC Misamis Power Corporation
FDC Misamis Power Corp. of the Gotianun family and an electric cooperative in Eastern Samar have sought regulators’ go signal to execute a fresh emergency power supply agreement.
The Eastern Samar Electric Cooperative (Esamelco) and FDC Misamis filed their application to the Energy Regulatory Commission (ERC) late last year, saying approving such a deal could reduce consumers’ exposure to the volatile prices in the Wholesale Electricity Spot Market (WESM). WESM is an avenue where power is traded between producers and distributors to boost their supply.
Esamelco provides power services to 22 municipalities in Eastern Samar.
READ: FDC closer to record-high earnings
The two parties inked their second emergency power supply deal in September 2024 after the first one lapsed.
The power cooperative previously had a contract with Aboitiz’s GNPower Dinginin Ltd. Co. or GNPD for a 15-megawatt (MW) baseload supply.
However, this was halted after the Supreme Court demanded all applications for approval of power supply agreements on or after June 2015 to comply with the Department of Energy’s competitive selection process.
“Without the power [supply] from GNPD, applicant Esamelco was not able to cover its total demand requirements and was forced to purchase power from WESM,” the application read.
For this new round of emergency supply deal, FDC Misamis would source the power from its coal-fired thermal power plant with a rated capacity of 405 MW, located at the PHIVIDEC Industrial Estate in Misamis Oriental.
The fresh agreement is set for another year. INQ