The Filinvest Group has secured regulatory approval of its power supply contract with the electric cooperative of Davao Oriental.
In a ruling, the Energy Regulatory Commission (ERC) cleared the power purchase deal between FDC Misamis Power Corporation and Davao Oriental Electric Cooperative Inc (Doreco).
Under the agreement, Doreco will buy six megawatts (MW) from FDC Misamis’ 405-MW coal-fired power project at the PHIVIDEC Industrial Estate in Misamis Oriental for 15 years.
The additional supply would allow Doreco to meet its forecast demand from 2014 to 2028. The electric cooperative sources 5.4 MW from state-owned hydropower plants, contracts for whic expire in 2016.
Doreco also sources 6 MW from the Aboitiz Group's power barges.
FDC Misamis and Doreco agreed to a P4.72 per kilowatt-hour (kWh) rate, which would redound to a reduction of P0.41 per kWh in the electricity bills of the cooperative’s customers. But after excluding some proposed costs, the ERC approved a lower rate of P3.33 per kilowatt-hour, which is "within the level among the recently approved rates for coal-fired power plants in the Philippines."
The P43 billion coal project of FDC Misamis is slated for commission next year.
The company previously secured contractual commitments from 17 electric cooperatives, including Doreco, for the project's first two 135-MW generating units.
FDC Misamis is a wholly-owned subsidiary of FDC Utilities Inc, the upstart power generation unit of Filinvest Development Corporation.
Doreco distributes electricity to the city of Mati and the municipalities of San Isidro, Manay, Cateel, Lupon, Gov. Generoso, Caraga, Boston, Banaybanay, Tarragona, and Baganga in Davao Oriental.
- Interkasyon
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