Transmission line dispute still unresolved

First Gas Power Corp. (FGPC) admitted yesterday that is still has to resolve the issue of transmission line constraints with the National Power Corp. (Napocor) and the National Transmission Corp. (Transco).

Daniel H. Valeriano, First Generation Holdings Corp. (First Gen) vice president for technical services, said at present, FGPC’s power plants – Sta. Rita and San Lorenzo gas-fired power facilities – are allowed to transmit 1,000 MW power through Napocor/Transco’s transmission lines which is beyond what was agreed upon.

"They (Napocor/Transco) want to allow San Lorenzo to transmit only 120 MW of the 500 MW capacity of the plant. We want at least 200 MW from San Lorenzo and 1,000 MW for Sta. Rita," Valeriano said. The two plants sell power solely to Manila Electric Co. (Meralco).

According to Valeriano, based on previous arrangements signed before the two power plants were constructed. Napocor would give firm transmission agreement (FTA) to both plants. But up to now, he said this has yet to be resolved.

"We can transmit 1,350 MW from both plants in the Sta. Rita-Calaca transmission lines but after that we don’t have lines to transmit the power to Luzon," he said.

Napocor/Transco said they have lined up a transmission facility under its Transmission Development Plan to accommodate Sta. Rita and San Lorenzo but this would only be finished in 2004.

Proponents of the gas-fired power plants that they would be able to lower the price of electricity to Meralco customers by 60 centavos per kilowatthour if these two plants are utilized fully or at least run by 83 percent MEQ (minimum energy quantity).

First Gen executive vice president Federico Lopez pointed out that Napocor/Transco should provide transmission lines for Sta. Rita and San Lorenzo based on the agreement forged with Meralco. – Donnabelle Gatdula