ERC defers decision on 2 Meralco PSAs

MANILA, Philippines – The Energy Regulatory Commission (ERC) has put off decision on the two power supply agreements (PSAs) of Manila Electric Co. (Meralco) with two power generators which have yet to secure environmental compliance certificates (ECC).

These deals include Meralco’s PSA with Mariveles Power Generation Corp. (MPGC) and Global Luzon Energy Development Corp. (GLEDC), which were signed last May.

Under the deal, Meralco will purchase up to 528 Megawatts (MW) of capacity from MPGC, a joint venture between the San Miguel Group and Meralco PowerGen Corp.

MPGC will build a 4x150-MW circulating fluidized bed coal-fired power generating facility in Mariveles, Bataan scheduled to start operating by 2020.

On the other hand, Meralco’s agreement with GLEDC covers the purchase up to 600 MW of capacity.

GLEDC intends to construct a 2x335-MW coal-fired power generating facility in Brgy. Luna, La Union, which is scheduled to become operational by 2022.

ERC said initial investigations revealed MPGC and GLEDC have not yet secured an ECC for their respective power plants from the Department of Environment and Natural Resources (DENR).

In July, the DENR asked the power regulator to suspend the process of approvals of any PSA in light of an ongoing re-evaluation of ECCs.

The ECC certifies that the proposed project or undertaking will not cause a significant negative impact on the environment, containing specific measures and conditions that must be accomplished by the project proponent before and during the operation of the project.

It also certifies that the proponent has complied with all the requirements of the Environmental Impact Statement (EIS) system and has committed to implement its approved Environmental Management Plan.

“The commission shares the DENR’s concern in ensuring the protection of the environment and is determined to help safeguard the people’s right to a balanced and healthful ecology in accordance with the Constitution,” the ERC said.