by Lenie Lectura – January 20, 2016
from Business Mirror
THE Manila Electric Co. (Meralco) will partly source its power requirements for a year from 1590 Energy Corp. to help boost power supply during the months when most power plants are scheduled to go off line.
In a disclosure to the stock exchange on Wednesday, Meralco said it signed an interim power-supply agreement (Ipsa) with 1590 Energy Corp., a unit of publicly listed Vivant Corp., for the purchase of the latter’s Bauang power plant.
Under the agreement, Meralco will source 170 megawatts (MW) from the power plant from February 26 to July 26 this year from 10 a.m. to 9 p.m., Mondays to Saturdays.
Meralco may also opt to source up to 170 MW from July 26, 2016, to February 25, 2017, during the same schedule.
The Ipsa takes effect upon approval of the Energy Regulatory Commission and expires on February 25, 2017, unless terminated earlier or extended.
“The Ipsa was entered into to address the company’s capacity requirement arising from scheduled maintenance shutdowns or forced plant outages from its contracted generating plants to mitigate its exposure to the Wholesale Electricity Spot Market,” Meralco said.
Earlier, Meralco President Oscar Reyes said the utility firm received separate bid invites for price challenge.
Meralco said it received separate proposals from Toledo Power Corp. (TPC) and Panay Power Corp. (PPC). Both are units of Global Business Power Corp., that proposed to supply Meralco a total of 73 MW. Of which, 45 MW will be supplied by PPC and the remaining 28 MW from TPC.