Napocor addresses transmission problems of Lopez-owned plants

BATANGAS CITY – The National Power Corp. (Napocor) has committed to dispatch next week a total of 1,350 megawatts (MW) of power from two Lopez-affiliated natural gas-fired power plants with the completion of the state-owned power generation firm’s system preservation scheme (SPS).

The SPS, a temporary measure implemented by Napocor, will address the transmission line constraints that have been preventing the two power plants – Sta. Rita (1,000 MW) and San Lorenzo (500 MW) – from being connected to the Luzon grid.

The two power plants, which use Malampaya natural gas for fuel and which sell the power that they generate solely to the Manila Electric Co. (Meralco) are operated by First Gas Power Corp. (FGPC), a member of the Lopez group of companies.

FGPC is a special purpose vehicle established through a joint venture between First Gas Holdings Corp. (FGHC) and BG Group (formerly British Gas).

"We will be allowed to dispatch a total of 1,350 MW for both plants. The system is just temporary. We hope to transmit the whole capacity of the two plants once the transmission line problem is resolved," FGPC general project manager Jesus A. Dimal told reporters in a press briefing here.

Dimal said only 700 MW average power generated from Sta. Rita is being dispatched by National Transmission Corp. (Transco) through its Calaca sub-station. A new 1,200 MW transmission line, Dimal said, would be completed in Sept. 2003.

FGPC deputy project manager Ramon Araneta said the San Lorenzo power plant started its commercial operations last week, a little behind its original target of July this year. Sta. Rita power plant went on full commercial operation in October 2001.

"We have decided to carefully test the system before going through full commercial operation. There were some tests conducted that had contributed to the slight delay in schedule," Araneta said.

According to Araneta, San Lorenzo is now ready to run at its full capacity of 500 MW but has never been dispatched.

"We were able to dispatch power from San Lorenzo during testing period only," Araneta said.

It will be recalled that Napocor and Meralco have engaged in marathon negotiations to resolve the issue of a transition supply contract (TSC).

Meralco wants Napocor to allow it to dispatch power from its two gas-fired independent power producers (IPPs).