EDC unit inks more supply contracts

MANILA, Philippines - Green Core Geothermal Inc. (GCGI), a unit of Energy Development Corp. (EDC), has signed more supply contracts withVisayas-based electric cooperatives (ECs). The company said it has entered into at least seven new longterm power contracts with ECs in Leyte and Negros islands to supply an aggregate 58 megawatts (MW) of power. EDC, the country’s leading geothermal power producer, is now being run and managed by the Lopez Group. GCGI has signed a 10-year power supply contract with Negros Oriental II Electric Cooperative Inc. (Noreco II) for 25 MW. It also inked a separate power supply contract with six members of the Association of Visayas Electric Cooperatives (AVEC), namely Negros Oriental I Electric Cooperative, Inc. (Noreco I), Negros Occidental Electric Cooperative (NOCECO) and VMC Rural Electric Service Cooperative, Inc. (VRESCO) in Negros island; and the Don Orestes Romualdez Electric Cooperative Inc. (Dorelco), Leyte II Electric Cooperative Inc. (Leyeco II) and Leyte V Electric Cooperative, Inc. (Leyeco V) in Leyte. GCGI allocated a total of 33 MW for the six electric cooperatives. The contracts of the Visayas electric cooperatives expired

last December and were previously with the National Power Corp. (Napocor) before the privatization of the Tongonan 1 and Palinpinon geothermal plants in Leyte and Negros Oriental, respectively. GCGI, which acquired the power plants in 2009, began negotiating

with the electric cooperatives with expiring contracts as early as January 2010. “From the start, we have always prioritized the electric cooperatives in our host areas as we want them to be the first to enjoy the benefits of having clean, reliable and affordable power,”

EDC president and COO Richard Tantoco said. Tantoco said GCGI has been upgrading its system to be able to serve the ECs well. “We’re happy that our cooperatives have partnered with us. We offer the most competitive price in the market and we’re investing heavily to improve the reliability of our plants so that power interruptions will be significantly reduced and eventually eliminated,” he said. Earlier, GCGI signed long-term power supply contracts with Iloilo I Electric Cooperative Inc. (Ileco I), Iloilo II Electric Cooperative, Inc. (Ileco II), Aklan Electric Cooperative Inc. (Akelco), Capiz Electric Cooperative Inc. (Capelco) and Dumaguete Coconut Mills Inc. (Ducomi).