ERC grants COC to PPGI
The Energy Regulatory Commission (ERC) approved on 15 February 2010 the issuance of a Certificate of Compliance (COC) to Palawan Power Generation Inc. (PPGI) upon determination of its compliance with financial, technical, and environmental requirements. The COC is for the operation of PPGI’s Bunker-C fired Diesel Power Plant with an installed capacity of 5.0 MW and one (1) unit Blackstart Diesel Engine Generator Set with an installed capacity of 160 KW. The plant is located in Brgy. Tiniguiban, Puerto Princesa, Palawan.
PPGI is a new independent power producer (IPP) which registered with the Philippine Securities and Exchange Commission (SEC) on 11 July 2007. Its primary purpose is to engage in the business of power generation and sale of electricity. Its power plant was completed in December 2009. Testing and commissioning started in January 2010. A newly installed 7.50 MVA power transformer will be the point of interconnection of the power plant to transmit power to Palawan Electric Cooperative, Inc. (PALECO). The energy generation and sales by PPGI is covered by an ERC-approved Power Supply Agreement (PSA) with PALECO.
All generation companies (GenCos) are required to secure a COC from the ERC before the commencement of their commercial operations as provided in the ERC’s Guidelines for the Issuance of Certificate of Compliance for Generation Companies/Facilities. The COC also involves approvals of other government agencies like the Department of Environment and Natural Resources (DENR). PPGI is exempted from the 30% and 25% market share limitations, it being in isolated grid that is not connected to the high voltage transmission system. The ERC also took note of the trust account Memorandum of Agreement that PPGI entered with the Department of Energy (DOE) for the establishment of an Electrification Fund (EF), Development and Livelihood Fund (DLF), and Reforestation, Watershed Management, Health and/or Environmental Enhancement Fund (RWMHEEF) as part of the environmental standards.
“PPGI is a welcome addition to the power generation sector. Its participation in the electricity industry will augment the growing power requirements in Palawan, which is a top tourist destination in the country,” ERC Chairperson Zenaida G. Cruz-Ducut concluded.
February 25, 2010