Paleco, Delta P mutually agree to extend PSA

By Lenie Lectura – April 23, 2019
from Business Mirror

PALAWAN Electric Cooperative (Paleco) and Delta P, a subsidiary of Vivant Corp., have agreed to extend their power-supply contract, in a bid to secure Palawan’s power requirements during summer months.

Delta P will continue to supply 13.5 megawatts (MW) to Paleco for one year.

“We just passed a one-year extension contract with Delta P on their old contract with an energy contract of 13.5 MW,” Paleco board Chairman Jeffrey Tan-Endriga said.

Delta P, established in 1997, is one of the independent power producers in Palawan.

Paleco is the lone power distributor of Puerto Princesa City and 18 municipalities, serving 137,277 consumers as of June 2018.

Demand for power increases during the summer months when temperatures go up.

The entry of more tourists also increased power demand in the Paleco franchise area which includes Puerto Princesa City and the municipalities of Aborlan, Narra, Brooke’s Point, Sofronio Española, Cuyo, Magsaysay, Quezon, Roxas, Taytay, El Nido, Araceli, San Vicente, Bataraza, Rizal, Balabac, Cagayancillo, Agutaya and Dumaran.

Paleco also has a separate 20-MW contract with Delta P, but only the 13.5 MW expired on April 4, which was renewed by the board.

“We have demand forecast of 55 MW to 58 MW this summer. Our available capacity is 60.5 MW so we really need to have an additional or a contingency power while waiting for our confirmation on CSP [competitive selection process] by the National Electrification Administration (NEA) and Department of Energy (DOE),” Tan-Endriga said.

Tan-Endriga leads the “Task Force Palawan Power” created to conduct a comprehensive institutional, financial and technical audit of Paleco to improve its systems.

The task force is composed of representatives of the DOE, National Power Corp., NEA, Energy Regulatory Commission and Paleco.