Aboitiz Power in supply deal with CASURECO IV

A provisional approval of the Energy Regulatory Commission (ERC) is being sought for the power supply agreement (PSA) inked by AP Renewables Inc. (APRI) of the Aboitiz group with that of Camarines Sur Electric Cooperative Inc. (CASURECO IV).

The supply pact requires the power generator to deliver power to CASURECO IV until January 25, 2013 within the prescribed contract energy.

It was stipulated in the deal that “the total minimum contract energy to be supplied by APRI to CASURECO IV for each month of the contract period will range from a low of 2,496,702.55 kilowatt hours to 3,314,899.13 kWh.”

Power supply will come from the Tiwi geothermal plant in Albay, which forms part of the 747-megawatt geothermal facility acquisition of APRI that included the Makiling-Banahaw plants in Laguna.

“APRI shall supply the contract energy at the Tiwi geothermal power plant. Line rental charges and transmission fees for delivery and transmission of the contract energy shall be for the account of CASURECO IV,” the PSA stated.

It has been emphasized that the transmission service agreement (TSA) between CASURECO IV and the National Grid Corporation of the Philippines (NGCP) as well as the TSA between APRI and NGCP are currently being negotiated.

The electric cooperative noted that it selected APRI because of its capacity to supply its power requirements. Three parties have made offers, but the two are reportedly aggregators, hence, they do not own or operate power plants which could have been the ultimate assurance that they can meet the electric coop’s demand.

The PSA further provides that should CASURECO IV decides to reduce its contract energy, “it shall pay APRI a buy-out charge equivalent to P2.00 per kWh multiplied by the foregone contract energy for the remainder of the term of the PSA.”

Based on calculations provided to the ERC, the proposed rates to be charged by APRI to the electric cooperative would be P4.4758 per kWh during Mondays to Saturdays and P2.7284 per kWh on Sundays and holidays.

A comparative analysis also emphasized that if compared to the rates that should have been charged by state-run National Power Corporation (NPC) at P4.8309 per kWh, the APRI charge employing the same formula would be lower at P4.3655 per kWh.

Source: Mb