ERC issues COC to Visayas IPP APOCEMCO as an IPP

The Energy Regulatory Commission (ERC) approved on 14 December 2009 the issuance of a COC (Certificate of Compliance) to Apo Cement Corporation (APOCEMCO) to operate its power plant as an independent power producer (IPP).  APOCEMCO was earlier issued a COC by the ERC to operate only as a self generation facility (SGF).  APOCEMCO will operate as an embedded generator as its generating units are directly connected to distribution utility (DU) system.  It will augment the power supply of the Visayan Electric Company (VECO) once their power supply agreement (PSA) is finalized.  The power plants of APOCEMCO consist of six (6) diesel engine generating sets with an aggregate installed capacity of 67.20 MW and a 370 kW emergency diesel generating set that are all located in Tina-an, Naga, Province of Cebu.

“The ERC found APOCEMCO to be compliant to financial, technical and environmental standards after thorough evaluation.  It is capable of operating viably,” ERC Chairperson & CEO Zenaida G. Cruz-Ducut said.

APOCEMCO registered with the Securities and Exchange Commission (SEC) on 27 December 1961.  It is primarily engaged in the operation, manufacture, development, transportation and sale of cement, limestone and its allied products including marble, ceramics and other construction materials, on wholesale and retail basis.  The company is also authorized by the SEC to construct, operate, maintain and administer power plants, auxiliary plants and substations.  It is also authorized to generate, supply and sell its power output to third parties.

A COC is required before any generation company (genco) can commence commercial operations.  It has a term of five (5) years.  Gencos and SGFs are expected to comply with ERC’s Guidelines for the Issuance of Certificate of Compliance for Generation Companies/Facilities (Guidelines) which includes the approvals of other government agencies like the Department of Environment and Natural Resources (DENR).

“This is a positive development for the Visayas grid since it is experiencing a power shortage.  The ERC also has to make sure that only qualified entities are allowed to operate so that a stable supply of quality electricity service is guaranteed at the most affordable cost to consumers,” ERC Chairperson Zenaida G. Cruz-Ducut concluded.

December 21 , 2009

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