SN ABOITIZ Power-Benguet, Inc. and an electric cooperative based in Ifugao province have jointly sought regulatory approval of their agreement for the supply of 7.5 megawatts (MW) of baseload power.
In their joint filing with the Energy Regulatory Commission (ERC), SN Aboitiz Power (SNAP) and Ifugao Electric Cooperative, Inc. (Ifelco) are seeking approval of their power supply agreement (PSA) that calls for a contracted demand of 7,500 kilowatts (kW) per hour or a minimum annual energy of 32.5 million kilowatt-hours (kWh).
For the first year, the charge is about P1,844 per kWh as capacity fee or the cost that covers the operations and maintenance of the power generation facility. The charge is subject to an annual escalation.
SNAP owns, operates, and maintains the 104.55-MW Ambuklao hydroelectric power plant located in Bokod, Benguet province and the 140.08-MW Binga hydroelectric power plant in Brgy. Tinongdan, Itogon, also in the same province.
Ifelco is a rural electric cooperative formed to supply, promote and encourage the use of electric service to its members. Its principal office is in Ifugao’s Lagawe town.
The PSA will commence on an agreed effective date, which is the next immediate 26th day of the month following the completion of condition precedents to supply and after ERC’s approval of the deal.
Under the agreement, any provisional authority granted by the ERC will be considered as approval for purposes of determining the effectivity date. The agreement will then remain in full force and effect for a period of nine years or 108 months from its effective date.
SNAP has the right to source replacement energy from its own backup facilities or any third party, as long as the alternate source uses renewable energy technology.
The agreement follows the holding of a competitive selection process in which SNAP’s bid was declared as the lowest.
The contracting parties said, “a provisional authority is needed to prevent a delay in the implementation of the PSA,” so that Ifelco would have sufficient electricity with which to supply its consumers as well as to avoid power interruptions in its franchise area. — VVS
