P747-M power plant to rise in Misamis Oriental-A A +A
Tuesday, October 22, 2013
A POWER distribution utility is preparing to venture into power production before its contract with the National Power Corporation (NPC) ends in 2015.
The proposed power plant of Misamis Oriental-1 Rural Electric Service Cooperative Inc. (Moresco-1) can supply adequate generation requirement during the 6 p.m. to 10 p.m. peak hours.
The proposed bunker fuel plant will be developed and operated by PACERM-1 Energy Corporation, a duly organized corporation registered with the Security and Exchange Commission.
According to the PACERM-1 primer, the planned power plant will produce 10.5 megawatt, which will be embedded to Moresco-1’s 69 kilovolts (kV) sub-transmission line with a power supply contract over 15 years.
Once operational, the power plant will provide its more than 71,000 consumers in the western part of Misamis Oriental province, and some villages in Cagayan de Oro and Bukidnon.
Located in Barangay Quibonbon, El Salvador City, the plant will cost P747 million and is expected to go online by 2014.
Marebec Cagalawan, Moresco-1 corporate public relations officer, said they are optimistic that the Energy Regulatory Commission (ERC) will approve the application of PACERM-1.
She said with PACERM-1’s application, their consumers will not suffer the rotating brownouts experienced elsewhere in Mindanao in the past few months.
“We are confident we can contain the power crisis,” Cagalawan told Sun.Star Cagayan de Oro.
She said she sees no reason for the ERC not to approve PACERM-1 application since the company’s proposal is within the guidelines imposed by the energy body.
PACERM-1’s application, she said, is still pending at the ERC as it is reviewing the proposed generation cost of P0.9622 per kilowatt hour.
Cagalawan said once Moresco-1’s contract with the NPC expires, their capacity will be reduced to 30 to 40 percent, and this would mean their consumers will suffer.
With this, Moresco-1 is looking for “reliable, less expensive option” to address this potential power shortfall.
Edna Diango, Moresco-1 institutional service manager, said they will not wait for 2015 to come before they can come up with the solution to the power shortage.
As early as last year, Moresco-1 began looking for a partner in the “power peaking requirement” to which one bidder, the Mindanao Energy Systems Inc. (Minergy), responded.
Minergy is an independent power producer that supplies power to the Cagayan Electric Power and Light Co. Inc. (Cepalco).
In the third quarter of 2012, however, Minergy informed Moresco-1 that it was no longer pursuing “its bid for Peaking and Intermediate Power Supply,” a Moresco-1 brief profile read.
Because of this, Moresco-1, by virtue of Republic Act (RA) 5445, the special law creating the power utility and reinforced by RA 10531, the NEA Reform Act of 2013 allowing embedded generation, Moresco-1 initiated to create its own generating plant, named the West Misamis Power Corporation.
Early this year, Moresco-1 sought for possible partnership after which it received a proposal from PACERM-1.
Published in the Sun.Star Cagayan de Oro newspaper on October 22, 2013.