ILOILO CITY — Negros Occidental Electric Cooperative Inc. (NOCECO) yesterday signed a 22-month power purchase agreement with Panay Power Corp. (PPC), a subsidiary of Global Business Power Corp. (GBPC), for a 12-megawatt (MW) peak load supply.
Jonas F. Discaya, NOCECO general manager, said the additional supply will mostly run during peak hours from 6-8 p.m.
“But our contract is flexible so we can get from them earlier or after if the need arises,” said Mr. Discaya after yesterday’s signing ceremony.
PPC won the bid with a price of P6.37 per kilowatt-hour (kWh), lower than its competitor’s P6.55/kWh offer.
NOCECO and PPC will soon file their purchase agreement before the Energy Regulatory Commission (ERC) for approval. It will immediately take effect upon ERC’s issuance of a provisional authority.
NOCECO has about 150,000 customers in its franchise area covering the 4th, 5th and 6th districts of Negros Occidental, including the cities of Kabankalan, La Carlota and Sipalay, which are tourist destinations. Negros Occidental is also a major sugar-producing region.
Mr. Discaya said the additional power will address the growing demand in fast-developing Kabankalan, as well as ensure stable rates for consumers.
“The rate from the (power) market is very volatile, so getting power from GBPC would provide us reasonable rates,” he said.
Petronilo R. Madrid, GBPC first vice president for Panay, said the agreement marks an entry into the Negros electricity market.
“GBP has established its name in the Visayas, particularly in Central and Western Visayas. We have dreamt of reaching out to the people of Negros. And now we have gained access to another region in the country, which is the Negros Island Region,” Mr. Madrid said.
GBPC President Jaime T. Azurin, for his part, said: “We are guided as the province gears up for more infrastructure development. Infrastructure development spurs business growth, which would increase demand for electricity,” he said.
PPC operates a 72-MW diesel plant in Iloilo City, part of GBPC’s aggregate capacity of 854 MW from generation facilities in Aklan, Cebu, Iloilo, and Oriental Mindoro.
GBPC is majority-owned by Beacon PowerGen Holdings, Inc. with a 56% share, with JG Summit Holdings, Inc. holding 30%, and Meralco PowerGen Corp., 14%. — Louine Hope U. Conserva
