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Friday, December 23, 2005
PPC assures public of 'bright' Christmas
By Kathy Villalon Cinco
ENGINEER Adrian Moncada, president of the Panay Power Corporation (PPC) assured Ilonggos that they will have a "bright" Christmas, allaying fears of a possible blackout anytime.
"We have enough fuel until January, so we can generate enough power to be distributed to Iloilo City," he said.
Moncada also reiterated that the PPC has no intention to threaten Ilonggos. "We just want to be transparent," he said, adding that negotiations as regards their contract with Panay Electric Company (Peco) are ongoing.
Inaccurate
Moncada also clarified that the reason why the PPC did not shut down operations last December 16 was because the Energy Regulatory Commission (ERC) granted Peco provisional authority.
"What Atty. Romeo Gerochi said it was the granting of the Temporary Restraining Order (TRO) that stopped us from shutting down, is not true. The continuance of our operations was because of the provisional authority that ERC gave to Peco," Moncada said.
Gerochi's group in their complaint filed the civil case for Specific Performance and Injunction with Prayer for Temporary Restraining Order and Preliminary Injunction to PPC, Peco and the City of Iloilo represented by Trenas as the Chief Executive.
The complaint cited the City as an unwilling plaintiff thus joined as party defendant.
It further stated that it has the obligation to protect the general welfare and interest of the its residents but failed, refused or neglected to take any legal steps to avert the power block out.
Peco was also cited as an unwilling plaintiff in its right to demand contractual obligation of the defendant PPC.
Provisional authority
Last December 14, the ERC issued a provisional authority to Peco in order to forestall the blackout.
The ERC approved an initial estimated amount of P1.25 per kilowatt-hour for O&M, which is based on Peco's; P0.35 per kilowatt-hour for interest expense on debt; and P4.9121 per kilowatt-hour for fuel cost, which is the actual as of October 2005. Altogether, the indicative amount is P6.5121 per kilowatt-hour.
Peco is allowed, however, to make appropriate adjustments every month to its fuel cost and O&M based on actual expenses since they vary from month to month. The adjustments, however, are subject to confirmation by ERC and if necessary a true-up upon the issuance of the final authority.
The ERC also ordered Peco to enter into ancillary services agreement and to connect to the Cebu-Negros-Panay Grid as soon as possible in order to avoid any future recurrence of this crisis situation brought about by the isolation of Peco from the said grid. The isolation of Peco from the grid means that it can only source its power from the PPC which places the consumers within their franchise area at risk of black outs every time PPC is faced with eminent closure. In line with this, the ERC ordered Peco to submit a monthly status report on its connection with the Cebu-Negros-Panay Grid.
"The ERC stepped in and did its best to avert the impending widespread power outage in Iloilo.
With the PA now granted by the ERC, there should be continuous supply of power to the people of ILoilo City," Albano said.
(December 23, 2005 issue)
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