NL coops ink deal with US–based firm

by Harley F. Palangchao, 07 May 2015
from Baguio Midland Courier

Eight electric cooperatives, including Benguet Electric Cooperative, will pay a lower power generation rate from a US-based power supplier in 20 years starting December 2018 up to 2038.

Beneco and seven ECs in the Cordillera and Ilocos Region held a joint competitive power supply procurement Thursday with AES Philippines winning the bid.

AES Philippines, which has a power plant in Masinloc, Zambales, offered a base price of P3.7495 per kilowatt/hour and a levelized long-term rate of P5.4967. The company is expected to supply almost 150 megawatts for the eight ECs starting Dec. 2018.

Closest bidder, GN Power, offered a base price of P3.6726 and a levelized rate of P5.6715.

The base and levelized rates offered by AES Philippines reduce by 30 percent the generation cost currently paid by Beneco and other electric cooperatives (EC), while power consumers will enjoy 20 percent reduction from their current total retail  rate, according to power industry expert and University of the Philippines Assistant Professor Rowaldo del Mundo.

Del Mundo, who also convened the joint bidding said the rates offered by AES Philippines is advantageous to small and medium ECs, which could hardly get lower rates in a bidding.

Other ECs that joined the bid are Abra Electric Cooperative, Mountain Province Electric Cooperative, Kaling-Apayao Electric Cooperative, as well as electric cooperatives from Ilocos Norte, Ilocos Sur, Pangasinan, and La Union.

Beneco Network Service Department Manager Melchor Licoben, who also acted as chairperson of the bids and awards committee, said ECs are happy with the result of the bidding since they achieved a power cost lower than the average cost of P5.90/kWh.

“Definitely, the ECs will enjoy lower generation cost while our member-consumers will benefit from it,” Licoben said.

Thursday’s bidding in Baguio is the third of its kind in the country after the Mindanao and Central Luzon initiatives, in 2010 and 2013, respectively.

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