‘Peco’s supply contract with PEDC conservative’

By Francis Allan L. Angelo

IS Panay Electric Co.’s (Peco) power supply deal with Global Business Power Corp. (GBPC) enough to cover present and future power demands of Iloilo City?

Industry analysts who followed the two-day hearing of the Energy Regulatory Commission (ERC) on the PPC-PEDC electric power purchase agreement (EPPA) observed it may not be enough what with the ongoing developments in the city.

Peco recently signed a 25-year EPPA with GBPC to draw 65 megawatts of electricity from the 164MW coal-fired power plant in LaPaz, Iloilo City for its baseload requirements. The new power plant will be operated by Panay Energy Development Corp., a subsidiary of GBPC.

For its peak demand, Peco will contract 15MW from the diesel-fired power plant operated by another GBPC subsidiary, Panay Power Corp.

The baseload capacity will run for 24 hours while the peak load will kick in at the time when the electricity consumption is at its highest, usually from 10am to 7pm daily.

In sum, Peco will buy 80MW from GBPC to keep the city and its businesses running.

Peco operations manager Randy Pastolero said they have included in their contract present and future demands that may arise with the ongoing developments in Iloilo City.

Among the developments considered by the sole power distributor in the city is the Ayala information technology hub, new Ateneo de Iloilo campus, Plazuela de Iloilo and Mang Inasal in Mandurriao district.

The projected growth does not even include the possible demand from Megaworld’s planned development in the old Iloilo airport and other constructions that may sprout without announcements.

Recent data on Iloilo City’s power demand show that the city’s consumption peaks from 78-80MW. This load trend was pronounced during the January to May 2010 period as consumption shot up due to the summer season.

Peco’s contract with GBPC also leaves no room for the mandated power reserves which is 23% of the peak demand.

While Peco also signed a 10-MW non-firm contract with a geothermal power firm in Negros, the geothermal fields are saddled with sagging production woes and are not enough for the Negrenses’ power demands. By non-firm, it means the geothermal company will supply Peco only when it has available power.