ERC okays supply deal between San Miguel Energy, Subic Enerzone

MANILA, Philippines - The Energy Regulatory Commission (ERC) has provisionally approved the interim supply agreement (ISA) between San Miguel Energy Corp. (SMEC) and Subic Enerzone Corp. (SEZ).

Under the ERC order, SMEC shall supply SEZ’s monthly contracted energy for six months or from March 26 to Sept. 25, 2011 under the same terms and conditions of the contract for supply of electric energy (CSEE).

SMEC’s proposed ISA flat generation rate (FGR) of P3.8916 per kilowatthout (kwh) is in accordance with the National Power Corp. (Napocor) basic generation rate adjustment.

SEZ previously sourced its power needs from Napocor but its contract had expired last March 25. Thus, it entered into a supply agreement with SMEC.

SEZ in turn, sells power to Subic and Hanjin Heavy Industries and Construction Co. Ltd.

At the same time, ERC also approved the energy supply contract (ESC) between SMEC and Kalinga-Apayao Electric Cooperative Inc. (Kaelco).

Prior to SMEC, Kaelco was sourcing its power supply from Napocor under its CSEE that took effect on Dec. 26, 2008 and expired on Dec. 25, 2009.

SMEC is the independent power producer administration (IPPA) for the capacity covered by the 1,294-megawatt (MW) Sual coal-fired thermal power plant. 

The power plant consists of two units, each with an installed capacity of 647 MW located in Bgy. Pangascasan, Sual, Pangasinan, covering 280 hectares of land area.

The two units commenced operation on October 1999.

Aside from the Sual power plant, the assets acquired by SMEC from Napocor include the 620-MW Limay combined cycle power plant, and the administration for the contract for energy output of the 345-MW San Roque multi-purpose hydro plant and the 1,294-MW Ilijan natural gas power plant.