Palawan Electric Cooperative has extended a 13.5-megawatt power supply contract with Delta P, a unit of listed Vivant Corp., for another year to help secure Palawan’s electricity requirements in the dry season.
“We just passed a one-year extension contract with Delta P on their old contract with an energy contract of 13.5 MW,” said Paleco board chairman Jeffrey Tan-Endriga.
Paleco is the lone power distributor in Puerto Princesa City and 18 municipalities, serving 137,277 consumers as of June 2018, while Delta P is one of the independent producers in Palawan.
“We have demand forecast of 55 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 NEA and DoE,” Tan-Endriga said.
Tan-Endriga leads the “Task Force Palawan Power” that created to conduct a comprehensive financial and technical audit of Paleco to improve its systems.
President Rodrigo Duterte last year called on the energy sector to provide reliable electricity to Palawan.
Paleco was originally included in the Department of Energy’s list of ailing or problematic cooperatives. Tan-Endriga, however, said the “DoE misinformed the Congress on this issues that’s why they immediately withdraw their recommendation [for cancellation of franchise].”
The task force is composed of representatives of the Department of Energy, National Power Corp., National Electrification Administration, Energy Regulatory Commission, and Paleco.
Paleco wants to secure adequate and reliable power for its franchise area, which includes tourist-friendly islands, Puerto Princesa City and the municipalities of Aborlan, Narra, Brooke’s Point, Sofronio Espanola, Cuyo, Magsaysay, Quezon, Roxas, Taytay, El Nido, Araceli, San Vicente, Bataraza, Rizal, Balabac, Cagayancillo, Agutaya and Dumaran at the soonest time as demand for increases during the dry season when temperatures go up.
Paleco also has a separate 20-MW contract with Delta P.
Paleco has a pending request with the Department of Energy for the conduct of a CSP for 20 MW.
Paleco officials earlier said the renewal of Delta P’s contract was in compliance with the DOE rules, as long as there was no change in rate, supply, and capacity.