AboitizPower unit cleared to sell power barges output

MANILA, Philippines - A unit of Aboitiz Power Corp. has secured regulatory approval to sell the output of its two diesel power barges in Mindanao.

The Energy Regulatory Commission (ERC) approved the applications for an energy supply agreement between Therma Marine Inc. (TMI) and Misamis Occidental I Electric Cooperative Inc. (Moelci I) and Bukidnon Second Electric Cooperative Inc. (Buseco).

Under the supply deal, Therma Marine will provide the electricity needs of Moelci I and Buseco for three years starting May 8 and May 18, 2015, respectively.

For Moelci I, the Aboitiz unit will make available two megawatts (MW) monthly. Meanwhile, the power firm will deliver five MW on a monthly basis to Buseco.

TMI will source the power requirements from its 100-MW Power Barge 117 in Nasipit, Agusan del Norte and the 100-MW Power Barge 118 in Maco, Compostela Valley.

The barges were acquired through an auction by the Power Sector Assets and Liabilities Management Corp. (PSALM) in 2009 for $16 million and $14 million, respectively.

TMI and the electric cooperatives told the ERC the Mindanao grid is experiencing rotating brownouts due to a power shortage.

In particular, Buseco said each outage lasts three to four hours in its franchise area.

“A bilateral agreement, such as the supplement agreement, will significantly aid Buseco in minimizing the rotating brownouts in its franchise area to one to two hours as well as limit the debilitating impact these outages have upon the local economy,” it said.

Buseco distributes power to the city of Malaybalay and the towns of Baungon, Cabanglasan, Impasug-ong, Lantapan, Libona, Malitbog, Manolo Fortich, Sumilao and Talakag, and in Brgy. Lilingayon in Valencia City, all in the province of Bukidnon.

Meanwhile, Moelci I’s service area is in the province of Misamis Occidental, particularly in the city of Oroquieta and the municipalities of Aloran, Lopez Jaena, Plaridel, Calamba, Baliangao, Sapang Dalaga and Concepcion.