DAVAO LIGHT and Power Co., Inc. (DLPC), the dominant power distribution utility in Mindanao, is seeking approval from the Energy Regulatory Commission (ERC) for “non-firm” energy supply agreements it has forged with two power generation companies.
After holding separate competitive selection processes, DLPC has forged supply deals with Western Mindanao Power Corp. (WMPC) for 60 megawatts (MW), and with Therma Marine, Inc. (TMI) for another 60 MW.
“As part of its thrust to provide a more resilient sourcing of the power needs of its customers, DLPC deemed it prudent to have an alternative source of power from suppliers that willing and capable of supplying power to DLPC on an as-needed, or non-firm, basis,” the utility said in its application.
“DPLC sought competitive offers for the non-firm supply of up to 60-MW of capacity from prospective suppliers. After the second round of the competitive selection process, two winning bidders emerged, and DLPC awarded the signed two non-firm supply contracts with the winning bidders,” it added.
In the agreement, WMPC will supply power from its 100-MW bunker C-fired diesel power generation plant in Brgy. Sangali, Zamboanga City. TMI, meanwhile, will supply from its power facilities. It owns and operates two 100-MW power barges in San Roque, Maco, Compostela Valley, and Sta. Ana, Nasipit, Agusan del Norte.
Under the energy supply agreement, the contract is for a period of three years. The deal also stipulates that at any time during the contract period, the parties may enter into good faith negotiations to extend the agreement under the same terms and conditions. — Victor V. Saulon
