Press Release: ERC okays amendments to the COCs of 2 privatized NPC geothermal plants
The Energy Regulatory Commission (ERC) approved on 7 June 2010 the separate applications of the Green Core Geothermal, Inc. (GCGI) to be the named licensee of the Certificates of Compliance (COCs) of the: (1) three-unit Tongonan Geothermal Power Plant (TGPP) and (2) seven-unit Palinpinon Geothermal Power Plant I & II (PGPP). The subject plants were sold by the Power Sector Assets and Liabilities Management (PSALM) to GCGI under the former’s mandate under the Electric Power Industry Reform Act of 2001 (EPIRA) to privatize the National Power Corporation’s (NPC) assets. The NPC was issued two separate COCs for the TGPP and PPGP in November 2005. The full ownership and control of the TGPP and PGPP were granted to GCGI in October 2009. It was on 5 May 2010 that GCGI filed its applications with the ERC.
The transfer and renaming of the COCs’ licensee were granted after the ERC ascertained GCGI’s conformity and capability to comply with the environmental, technical, and financial standards to operate generation facilities. The aggregate installed capacity for TGPP is 112.50 MW and 192.50 MW for PPGP. Both of the privatized plants are located in the Visayas region: TGPP in Lim-ao, Kananga, Leyte and PGPP in Valencia, Negros Oriental.
The GCGI was incorporated and registered with the Philippine Securities and Exchange Commission (SEC) in June 2009. The company is a wholly owned subsidiary of First Luzon Geothermal Energy Corp. which is also a wholly owned subsidiary of Energy Development Corporation (EDC). The ultimate parent company of EDC is Prime Terracota Holdings Corp. (PTHC). GCGI is primarily engaged in power generation, transmission, distribution, and other energy-related businesses.
Under ERC’s Revised Rules for the Issuance of COCs, a generation facility whose owner has been previously issued a COC and which was then transferred or sold and the term of such COC has not expired need not secure for a new COC for the remainder of the term of the existing COC. The ERC, however, should be informed of the transfer of ownership within three (3) days and that the new owner shall conform to and comply with all the obligations imposed on a Generation Company, including the submission of reportorial requirements. Moreover, the new owner should file an application with the ERC for an amendment of the COC if it desires to be named as the licensee under the COC.
“Geothermal plants are major sources of electricity in our country. In fact, the Philippines is the second largest producer of geothermal energy in the world after the United States. The ERC is well aware that the production of energy, more particularly those run by indigenous resources, should not be disrupted. But the ERC should also make sure that responsibilities and accountabilities regarding the: (i) protection of the environment, (ii) efficient technical operations of the plants and (iii) commercial and financial viabilities are properly established”, ERC Chairperson & CEO Zenaida G. Cruz-Ducut stated.
June 23, 2010