ERC nod eyed for transition supply contracts with Mindanao utilities

State-run National Power Corporation (NPC) is seeking the approval of the Energy Regulatory Commission (ERC) for the transition supply contracts (TSCs) it inked with distribution utilities (DUs) in the Mindanao grid.

The proposed rate being applied for these contracts is P2.3937 per kilowatt hour (kWh), including a generation charge of P1.9690 per kWh, franchise tax and benefits to host communities charges; and corresponding adjustments to the Generation Rate Adjustment Mechanism (GRAM) charges.

The TSCs, which are aimed at providing market for its generated capacity for the grid, were sealed with Agusan del Norte Electric Cooperative; Agusan del Sur Electric Cooperative; Bukidnon Second Electric Coop; Camiguin Electric Coop; Cotabato Electric Coop; Cotabato Electric Coop-PPALMA Area; Davao del Norte Electric Coop; Davao del Sur Electric Coop; Davao Oriental Electric Coop; Lanao del Norte Electric Coop; Lanao del Sur Electric Coop; Maguindanao Electric Coop; Misamis Occidental I Electric Coop; Misamis Occidental II Electric Coop; Misamis Oriental II Rural Electric Coop; Siargao Electric Coop; South Cotabato I Electric Coop; South Cotabato II Electric Coop; Sultan Kudarat Electric Coop; Surigao del Norte Electric Coop; Surigao del Sur I Electric Coop; Surigao del Sur II Electric Coop; Zamboanga del Norte Electric Coop; Zamboanga del Sur I Electric Coop; and Zamboanga del Sur II Electric Coop.

The state-owned power firm indicated in its filing that “except for the contract of COTELCO-PPALMA area, all other TSCs are merely renewal of the previous ERC-approved contracts.”

NPC prayed to the Commission that it shall be granted provisional authority to implement the TSCs with the concerned DUs in the Mindanao grid. Hearings for the application are scheduled on May 26 and 27 this year.

The contracts provided for a security deposit by the DUs/electric coops that shall be “equivalent to 100 percent of the average monthly power bill during the first year of the contract and shall be updated annually.” The power contracts shall cover supply to the said utilities until August 2011.

It was further provided that “supplier (in this case NPC) may assign or transfer part or all of its rights and obligations in the supply of Contract Energy provided that prior written notice is given to customer 30 days before the actual transfer. (MB)

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