The Energy Regulatory Commission (ERC) has approved the 24 transition supply contracts (TSCs) entered into by state-run National Power Corporation (NPC) to distribution utilities serving the requirements of customers in the Mindanao grid.

The contracts have been renewed after their expiration last year. The covered duration of the new contracts will be from August 26, 2008 to August 25, 2011.

The specific supply off-take of each power utility from NPC has also been provided for in the TSCs. The newly-approved TSCs have been part of the original 32 TSCs set for the grid.

These include Agusan del Norte Electric Cooperative Inc, Agusan del Sur Electric Cooperative, Bukidnon Second Electric Coop, Camiguin Electric Coop, Cotabato Electric Coop, Davao del Norte Electric Coop, Davao del Sur Electric Coop, Davao Oriental Electric Coop, Lanao del Norte Electric Coop, Lanao del Sur Electric Coop, Maguindanao Electric Coop, Misamis Occidental I Electric Coop, Misamis Occidental II Electric Coop, Misamis Oriental II Electric Coop, Siargao Electric Coop, South Cotabato I Electric Coop, Sultan Kudarat Electric Coop, Surigao del Norte Electric Coop, Surigao del Sur I Electric Coop, Surigao del Sur II Electric Coop, Zamboanga del Sur I Electric Coop, Zamboanga del Sur II Electric Coop, and Zamboanga del Sur Electric Cooperative.

Out of the 25 TSCs applied for by NPC, the ERC deferred action on the Cotabato Electric Cooperative – PPALMA area, pending the transfer of the service area under the DU’s jurisdiction.

It has been noted that MAGELCO still serves the power needs of PPALMA and is billed by NPC for the consumption of the entire franchise.

In the ERC ruling, it was specified that “NPC manifested that it was amenable to the withdrawal of its TSC with COTELCO-PPALMA pending the completion of the actual and final transfer of PPALMA to COTELCO.”

For the approved TSCs, the regulator has directed NPC to submit updated schedule of contract energy it had with the DUs.

“The basic energy charge for the energy consumption within the contracted monthly or hourly levels of NPC to the DU/Customer shall be the Commission-approved generation rates plus other charges exclusive of penalties and bonuses,” the regulator noted.

The approved rate for the Mindanao power utilities, inclusive of adjustments as of December 2008, was set at average P2.3937 per kilowatt hour.

The NPC transition supply contracts which were previously approved and have not lapsed until now are those of: Cagayan Electric Power & Light Co., Cotabato Light & Power Co., Davao Light & Power Co. Inc., First Bukidnon Electric Coop., Iligan Light & Power Inc., and Zamboanga City Electric Cooperative Inc.