PSALM seeks nod of ERC for power rate adjustments

BY LENIE LECTURA – AUGUST 10, 2021
from Business Mirror

The Power Sector Assets and Liabilities Management Corp. (PSALM) filed an application with the Energy Regulatory Commission (ERC) to reduce power rates in Luzon and Mindanao for the monthly fuel and purchased power costs recorded last year.

In its 17-page application for the true-up adjustments of fuel and purchased power costs (TAFPPC) and foreign exchange-related costs (TAFxA), PSALM informed the ERC that it would refund its customers by reducing power rates.

PSALM will reduce power rates by P0.9432 per kilowatt hour (kWh) in Luzon and by P0.3624 per kWh in Mindanao.

In Visayas, however, PSALM asked for the regulator’s green light to recover P0.0539 per kWh in the form of a rate increase to reflect the adjustments in fuel and purchased power costs from January to December last year.

PSALM said the rate recovery across all grids would be implemented over a one-year period.

“It is most respectfully prayed to this Honorable Commission that…the following TAFPC + TAFxA per grid and corresponding true-up adjustment rates with one year refund period for the Luzon and Mindanao grids and one year recovery period for the Visayas grid, covering the test period January 2020 to December 2020 be approved,” it said.

PSALM, which manages the assets and liabilities of the National Power Corporation, explained that such application for true-up adjustments is being sought to allow it to recover or refund the difference between the actual allowable costs incurred for a certain period and actual revenues generated.

Meanwhile, PSALM is selling its Paco-Manila Property for P527 million via a negotiated process.

The state firm released a bid invite for the third round of negotiated sale process. It is soliciting offers for the property which used to be the site of the decommissioned Manila Thermal Power Plant.

PSALM has set a minimum offer price (MOP) of P527,087,552.00. Offers lower than the current MOP will be rejected, it said in the bid invite.

Bid submission deadline is on August 31.