Meralco to seek bidding exemption on 2 emergency power supply deals

By Myrna M. Velasco – April 16, 2019, 10:00 PM
from Manila Bulletin

Power utility giant Manila Electric Company (Meralco) will seek exemption for competitive selection process (CSP) or bidding on targeted interim power supply agreements (IPSAs) with two plants to boost its supply portfolio during the election period and the duration of summer.

The two IPSAs will have to be inked with Millennium Energy, Inc. for 70 megawatts; and Therma Mobile, Inc. of the Aboitiz group for 160MW – shoring up its contracted capacity then by additional 230MW and this will be embedded in the utility firm’s load network.

Meralco Vice President Lawrence S. Fernandez said they will apply for CSP exemption with the Department of Energy (DOE) and also seek the imprimatur of the Energy Regulatory Commission (ERC).

“We will ask DOE for exemption from CSP as provided under the guidelines and execute the IPSA and submit to the ERC once granted,” the Meralco executive said.

Energy Undersecretary Felix William B. Fuentebella said there’s a provision under the CSP Rules providing for exemption of bidding requirements if it is an emergency procurement of supply by a distribution utility.

Millennium Energy, Inc. Chief Finance Officer Noemi T. Moreno disclosed that the signing of the 70MW power supply pact for 70MW capacity of their Navotas bunker-C fired power facility was on Monday (April 15).

For TMO, Fernandez noted that the parties have yet to firm up the signing date but there is already agreement in principle for capacity off-take of 160MW.

Aboitiz Power Corporation Chief Operating Officer Emmanuel V. Rubio said their TMO plant’s capacity will only be utilized upon the approval of the supply contract by the ERC.

It has to be noted that the Aboitiz group was already contemplating on transferring the plant to the Visayas grid so it can offer ancillary services power in that area.