MGen hopes for A1E contract OK

By Lenie Lectura – November 8, 2018
from Business Mirror

MERALCO PowerGen Corporation (MGen), the power-generation arm of Meralco, remains hopeful that regulators will soon approve the power-supply agreement of the 2×600 megawatt Atimonan One Energy (A1E) plant in Quezon after the energy department certified it as an Energy Project of National Significance (EPNS).

“We do not see any reason for further delays, especially with the expected increase in demand and load growth that comes with the government’s massive infrastructure projects under the “Build, Build, Build” program,” said MGen President Rogelio Singson. He said the Department of Energy’s recent recognition of A1E’s status as an EPNS is a major factor that will impact positively on the project development.

Under Executive Order 30 signed by President Duterte, projects declared as EPNS shall be acted upon within a 30-day period. EO 30 was signed so that identified EPNS projects are prioritized to avoid unnecessary delays in the implementation of the government’s Philippine Energy Plan.  A1E, once approved, will provide highly efficient baseload supply in the country.

“The A1E PSA was legally filed in accordance with the rules and regulations of ERC (Energy Regulatory Commission). It was subjected to very stringent evaluation process and scrutiny by many consumer groups, and underwent many public hearings in compliance with legal and regulatory requirements. This was done with the objective of ensuring adequate and reliable power supply at least cost to Meralco’s customers, thus we find strong merit in positively acting on this agreement,” Singson said.

In the past few months, almost 50 PSAs of other distribution utilities (DUs) and electric cooperatives (ECs) and their counterpart generation companies that were filed before the ERC have already been approved.

“Most of these PSAs were filed during the same period that A1E PSA was filed. So, there is no logical and valid reason why the A1E PSA should be treated differently,” he said.

Singson also cited the strong support for the project from Atimonan’s local government unit (LGU), including the community who expressed the view that the power plant will bring progress to Atimonan. “We trust that all concerned parties will be able to appreciate and recognize the value of this project,” said Singson

Earlier, Quezon 3rd district representative Congressman Danilo Suarez expressed support for the power plant, saying it. “is needed to ensure enough power supply in Quezon and nearby provinces.”

Suarez also called attention to the fact that Quezon might lose significant revenues if the project continues to suffer delays.