Gotianun, ESAMELCO seek ERC nod for new urgent power deal

MANILA, Philippines — Gotianun-led FDC Misamis Power Corp. (FDCMPC) is seeking regulatory approval for its new emergency power supply agreement (EPSA) with an electric cooperative that serves Eastern Samar.

FDCMPC and the Eastern Samar Electric Cooperative Inc. (ESAMELCO) have sought an approval from the Energy Regulatory Commission for their new EPSA aimed at ensuring uninterrupted and affordable power to consumers.

ESAMELCO provides electric service to member consumers across 22 municipalities in Eastern Samar, with average peak demand projected at 23.5 megawatts (MW) in 2024.

Following the expiration of its first EPSA with FDCMPC in September last year, ESAMELCO was compelled to execute another EPSA to minimize exposure to the Wholesale Electricity Spot Market (WESM) and its volatile prices.

WESM is the centralized venue for buying and selling electricity as a commodity where prices are determined by supply and demand.

Under the terms stipulated in the second EPSA, ESAMELCO will source power from FDCMPC’s coal-fired thermal power plant with a rated capacity of 405 MW inside the PHIVIDEC Industrial Estate in Misamis Oriental.

With a maximum term of one year, the delivery of power was said to have commenced “immediately following the execution of the second ESAMELCO-FDCMPC EPSA, and more specifically on Sept. 26, 2024.”

Through this EPSA, ESAMELCO’s overall generation rate is P6.0869 per kilowatt-hour, significantly lower than the P7.0763 per kWh it would have charged without the additional supply from FDCMPC.

Under existing rules, the EPSA “shall be immediately implementable” without the need of a provisional authority and interim relief, provided that certain conditions are met.

FDCMPC is a subsidiary of FDC Utilities Inc., the utilities and infrastructure arm of conglomerate Filinvest Development Corp.

The Filinvest Group, through FDC Utilities, wants to achieve a generating capacity of 1,350 MW by 2033, more than triple its current capacity of 411 MW.

About 71 percent of the additional capacity is expected to come from renewable energy projects, the company said.

“This will support the country’s economic development and build its resiliency against unexpected adverse changes in the supply of energy,” FDC Utilities president and CEO Juan Eugenio Roxas earlier said.