ERC thumbs down 11 power supply deals

MANILA, Philippines - The Energy Regulatory Commission (ERC) has thumbed down 11 power supply deals deemed “legally defective.”

The ERC dismissed each power supply agreement (PSA) applications of Biliran Electric Cooperative (BILECO) and La Union Electric Cooperative I (LUELCO) with GNPower Dinginin Coal Plant Ltd. Co. (GNPD), a joint venture among GNPower AC Energy Holdings Inc. of the Ayala Group and Sithe Global Power LLC.

The power regulator also denied the PSA application of Cotabato Electric Cooperative (COTELCO) & Western Mindanao Power Corp. (WMPC) of the Alsons Group and of Camarines Sur IV Electric Cooperative Inc. (CASURECO IV) & Unified Leyte Geothermal Energy Inc. (ULGEI) of the Lopez Group.

The applications of several electric cooperatives with San Miguel Corp. (SMC) related power plants were also denied.

The ERC dismissed the PSAs of Cebu I Electric Cooperative  (CEBECO I) and Cebu II Electric Cooperative (CEBECO II) with Mariveles Power Generation Corp. (MPGC), a joint venture between SMC Global Power Holdings Inc. and Meralco Powergen Corp. that is building a 4x150-MW circulating fluidized bed coal-fired power generating facility in Mariveles, Bataan.

Also thumbed down were the PSAs of Davao del Norte Electric Cooperative (DANECO), Siargao Electric Cooperative (SIARELCO), Misamis Oriental I Electric Cooperative (MORESCO I) and Zamboanga del Sur Electric Cooperative (ZAMSURECO I) with San Miguel Consolidated Power Corp. (SMCPC), which is developing a coal-fired power plant in Malita, Davao.

Lastly, the power regulator dismissed the PSA between Nueva Vizcaya Electric Cooperative Inc. (NUVELCO) & San Miguel Energy Corp. (SMEC), the independent power producer administrator of 1,000 megawatts of the 1,294-MW Sual coal-fired thermal plant.

According to the ERC, these 11 applications failed to meet the agency’s requirements of Verification and Certification of Non-Forum Shopping. Consequently, the applications were deemed legally defective. 

“The ERC, being a quasi-judicial agency, is duty-bound to ensure that applicants and petitioners doing business in its regulated field act with truthfulness and diligence in the filing of their pleadings,” ERC chairman and CEO Jose Vicente Salazar said.

Under ERC’s 2006 Rules of Practice and Procedure, applications for approval of contracts must be accompanied by a verification stating that the affiant has read the pleading and that the allegations are true and correct of his personal knowledge or based on authentic records.

Meanwhile, applications should also contain a sworn Certification of Non-Forum Shopping stating the applicant has not commenced any action or filed any claim involving the same issues in any other court, tribunal or quasi-judicial agency.

The ERC earlier extended the deadline for filing of applications for approval of PSAs that did not undergo competitive selection process (CSP), a reform in the power industry which requires all distribution utilities and electric cooperatives to conduct an open and competitive process in selecting the power generating company from whom they are to purchase their supply for the captive markets. 

However, the power regulator said the said applicants still filed “legally defective applications.”

The ERC has implemented a rigorous pre-filing process in order to ensure that PSA applications  are in compliance with its requirements and resolutions.