ERC issues a COC to SPC Island Power Corp.

ERC Chairperson Zenaida G. Cruz-Ducut awards the Certificate of Compliance (COC) to SPC Island Power Corporation’s President and CEO, Mr. Dennis T. Villareal as joined by ERC Commissioners Gloria Victoria Yap-Taruc (leftmost), Maria Teresa R. Castañeda (2nd from left), Alfredo J. Non (rightmost), and Jose C. Reyes (2nd from right).

The Energy Regulatory Commission (ERC), on 28 November 2011, approved the issuance of a Certificate of Compliance (COC) for SPC Island Power Corporation’s (SIPC) 93.92 MW Panay Diesel Power Plant 8-unit complex (PDPP) as supported with a two (2) unit Black-start diesel engine generating set. The plant complex’s COC covers SIPC’s PDPP 1 with three (3) units and PDPP 3 with five (5) units of generators. Both power plants, PDPP 1 and 3, are located in a contiguous area within the Panay Diesel Power Plant Complex in Brgy. Tinocuan, Dingle, Iloilo. The issuance of the COC to SIPC authorizes it to commence the commercial operations of the subject power plant. SIPC’s generated output will be traded to the WESM until its Power Supply Agreements with Iloilo I Electric Cooperative, Inc. (ILECO I) and Iloilo II Electric Cooperative, Inc. (ILECO II) are filed with and approved by the ERC.

The ERC, upon inspection and evaluation, found SIPC’s power plant facilities to be compliant with the technical, financial and environmental standards set in ERC’s Rules for the Issuance of Certificate of Compliance (COC) for Generation Companies/Facilities (COC Rules). SIPC was also found to be compliant with the restriction on market share limitation, the Philippine Grid Code and Distribution Code, the WESM Rules, environmental and other applicable laws. The COC granted to SIPC is valid for five (5) years or until 28 November 2016.

SIPC is a wholly owned subsidiary of SPC Power Corporation. The company was incorporated and duly registered with the Philippine Securities and Exchange Commission (SEC) in June 2001. Its stated primary purposes are to: (i) design, develop, construct, assemble, install, commission, rehabilitate, maintain, manage and operate diesel, hydro, turbine, thermal and other power generating plants and related facilities under contract with the Philippine Government, or any subdivision, instrumentality or agency thereof, or any government owned or controlled corporation, or other entity engaged in the development, supply or distribution of electricity; (ii) act as consultants, contractors, or principals in the business of developing constructing, operating and maintaining power generating plants and the manufacture and repair of associated mechanical and electrical equipment; and (iii) carry on the general business of generation, manufacture, distribution, wheeling, transmission of electric power in accordance with existing laws.

SIPC has a Transmission Service Agreement (TSA) with the National Grid Corporation of the Philippines (NGCP) wherein NGCP shall provide the necessary transmission services to SIPC within Panay Island. SIPC and the NGCP agreed and bound themselves to comply with the relevant provisions of the Open Access Transmission Service (OATS) Rules, the Ancillary Services Cost Recovery Mechanism and the Philippine Grid Code and other relevant issuances, orders, rules and regulations, and their amendments, which the ERC and the proper government agencies and authorities have promulgated and may promulgate from time to time. NGCP and SIPC also executed a Connection Agreement (CA) that sets forth the terms and conditions for the connection of the Panay Diesel Power Plant 1 and 3 to the Visayan Grid Transmission System.

“SIPC will greatly help augment and improve the power supply in the Panay region with a 93.92 MW contribution and will reinforce the government’s agenda of attaining energy security and sustained economic growth,” ERC Chairperson Zenaida G. Cruz-Ducut stated.

December 13, 2011

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