Monday, July 16, 2007 City bills Beneco P6.6 million for Asin power plant
THINGS are beginning to look bright for Baguio City's Asin Hydroelectric Plant (AHP) workers, squeezing an unanticipated 1,373,948-kilwatt hours (KWH) from the 83-year-old power source.
In a letter by Baguio Mayor Reinaldo Bautista Jr. to Benguet Electric Cooperative (Beneco) general manager Gerardo Verzosa, the City Government billed Beneco P6.6 million in gross power purchase.
Beneco and the City Government, without a written agreement, consented to an electric power exchange rate using National Power Corporation standard power tariff of P4.80/kwh.
Bautista thanked Beneco "for reminding the City Government to bill the cooperative for power produced from the AHP."
He, however, admitted "the Asin Management Committee -- Technical Working Group (ManCom-TWG) found difficulties in computing the amounts due the city with the absence of a formal contract... (reason) why the city was not able to immediately act on Beneco's advice."
The city was able to produce a high of 520,756-KWH from May 27 to June 26. The lowest production came in the middle of the summer heat wave at 61,870-KWH from April 27 to May 26.
Bautista also asked Verzosa "to adjust the daily power generation of the plants to allow greater production and to enable the city to attain projected revenues."
The city took over operations of the three American vintage hydro plants from the Aboitiz-led Hydro Electric Development Corporation Inc. (Hedcor) on December 26.
During the turnover, Beneco director Benny Bomogao projected "the city stands to gain close to P775 million per annum from the hydro plants' operations."
The city is currently implementing maintenance jobs and a program of work designed for the AHP's greater power yield.
Meanwhile, City Administrator Peter Fianza said the ManCom-TWG will be meeting next week to draw up a formal agreement between the city and Beneco. He added that privatization of the AHP management and operations will likewise be laid down.
With the first six months of city-led operation of the AHP drawing to a close, Fianza said there is a need for the city to approve a new budget for another six months to ensure its continued operation.
A six-month budget of P3.3 million covering personal services and maintenance and other operating expenses pegged at P281,748 is undergoing backyard processing at City Hall.
On April 23, the City Council approved the first six-month interim budget amounting to P8.7 million for the operational expenses of the Asin hydroelectric plants.
"The cutback is due to the more pressing requirements such as materials and other facilities, already being bought using the first approved budget," said Fianza. (IL)
