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PCCI sees reduction in power costs of electric cooperatives

Cooperatives Association-First Luzon Aggregation Group (CLECAFLAG).  It is headed by Reynaldo V. Villanueva, president of the Nueva Ecija II Electric Cooperative Area II and Area 2.

Yao expressed confidence that other regional electric cooperatives would adopt the CLECAFLAG precedence. The forecast was shared by Energy Secretary Jericho L. Petilla, who witnessed the signing of the long-term power supply contract between CLECAFLAG and GN Power, Ltd. Co.

Yao, Manila Bulletin

YAO

“When electric cooperatives in the regions act like mini-Davids, they empower themselves and the consumers to overwhelm the Goliaths,” said Yao. “All would benefit from the social and economic impact of stable power rates over the long term.”

Yao said that the PCCI board discussed the impact of the power aggregation scheme, supported a move to make chamber members that are electric cooperatives aware of the arrangements and the benefits of power demand aggregation, and include the power-supply scheme in the forthcoming 40th Philippine Business Conference.

The 20-year supply contract was signed last June 10, 2014, with GN Power Ltd, Co., an American independent power producer now completing its $2.1-billion, 1,200-MW to serve the Luzon power grid.

The ECs could start purchasing in 2018 even while the GN Power plant is undergoing reliability testing.

Also witnessing the signing were Denise Rollins, acting assistant administrator of the US Agency for International Development (USAID), Edita Bueno, administrator of the National Electrification Administration, Gloria Steele, director of the USAID Philippine mission, Dr. Enrico L.  Basilio, USAID COMPETE project chief of party, EC board presidents and mangers of GN Power, and engineer Wali del Mundo, USAID COMPETE lead technical adviser to CLECAFLAG.

In mid-2013, the USAID, through its COMPETE project, provided technical assistance to CLECAFLAG.

The 12 cooperatives are the Aurora Electric Cooperative, Inc., Nueva Ecija I Electric Cooperative, Nueva Ecija II Area 1 Electric Cooperative, Nueva Ecija II Area 2 Electric Cooperative, Pampanga I Electric Cooperative, Pampanga II Electric Cooperative, Pampanga III Electric Cooperative, Pampanga Rural Electric Service Cooperative, Tarlac I Electric Cooperative, Tarlac II Electric Cooperative, Zambales I Electric Cooperative, and Zambales II Electric Cooperative.

In August 21, 2013, CLECAFLAG invited six pre-qualified gencos to bid for a power purchase and sales agreement.  Three submitted bids.  GN Power submitted the lowest rate.  A Swiss challenge was held but the second lowest bidder could not submit a proposal lower than GN Power’s.