PUERTO PRINCESA CITY, Palawan (PIA) -- The Palawan Electric Cooperative (Paleco) is now preparing for the conduct of a 42 megawatt (MW) competitive selection process (CSP) to meet the growing demand of consumers connected to the Palawan main grid line.

Maria Janelle Rebusada, information officer, said the electric cooperative has established the Third Party Bids and Awards Committee (TPBAC) for the conduct of CSP. The 42 MW could be provided not just by a single power provider, Paleco added.

“If hindi pa ma-modify ang CSP Circular (2023), at least sinimulan na natin ang competitive selection process para sa 42-MW dito sa ating lalawigan,

[If the CSP Circular (2023) has not yet been modified, at least we are starting on the competitive selection process for the 42 MW here in the province],” she said.

Even though the main grid currently requires a 20 MW power supply, Paleco anticipates that 42 MW of power will help meet the continuous power demand.

In its December 2023 report, PALECO recorded 66 MW of peak power demand.

It is also one of the actions of Paleco while waiting for the decision of its motion for reconsideration filed in the hope of modifying the prevailing 2023 CSP circular of the Department of Energy (DOE). 

“Although 20 MW lang ang nasa EPSA natin, pini-predict na rin natin na tataas pa ang demand sa kuryente. Kung di ako nagkakamali ay sinimulan na ito sa creation ng TPBAC sa CSP na ito,

[Although it is only 20 MW in our EPSA, we are predicting that the power demand will increase. If I am not mistaken, the process has started in the creation of TPBAC for its CSP,” she said.

Motion for Reconsideration

Section 2.3.5 of the 2023 DOE CSP circular states that distribution utilities entered into an emergency power supply agreement (Epsa) are not entitled to any form of subsidy. Paleco has entered into an Epsa  after its PSA with Delta P. Inc. (DPI) was affected by the Supreme Court ruling in 2019 in the case of Alyansa para sa Bagong Pilipinas against the Energy Regulatory Commission (ERC).

Paleco, among other electric cooperatives in the country, is affected by the decision, which states that the ERC has no power to defer the effectiveness of the DOE 2015 CSP Circular. It also requires all power supply agreement (PSA) applications in the country filed with the ERC on June 30, 2015, to comply with the DOE 2018 CSP Circular.

Paleco’s PSA with DPI was covered by the DOE 2004 CSP Circular.

DPI provides 20 MW of energy, which covers 40 percent of the supply in the Palawan main grid. The EPSA aims to avoid rotational power interruptions in the franchise area of Paleco. However, member-consumer-owners (MCOs) must pay the true cost of generation rate (TCGR) of P14 from P11.

“One of the grounds ay retroactive application of DOE Department Circular 2018-02-003 to the competitive selection process that was conducted in 2015 is unfair, unreasonable— hindi lang sa Paleco nakaapekto pati sa tourism industry,” she said. (RG/PIA Mimaropa - Palawan)

*Banner photo from Palawan News website