Power supply aggreement set on Monday & Tuesday

BAGUIO CITY (June 15) — The Energy Regulatory Commission (ERC) will conduct a two-day public hearing Monday and Tuesday on the application of the Benguet Electric Cooperative (Beneco) for ERC approval of its electric power supply agreement with Hydro Electric Development Corp. (Hedcor), an energy generator in Benguet at the Beneco office at the DPS Compound here.

According to Brenda Carling, Beneco corporate services manager, the public hearing starts at 3:00 P.M. Monday with jurisdictional hearing and expository hour. It resumes at 9:30 A.M. Tuesday with pre-trial conference and evidentiary hearing.

Beneco said it entered into an agreement with Hedcor for the energization of barangays in the towns of Tuba, La Trinidad, Sablan and Bakun which are far from the major grid. The agreement is stipulated for a five-year period starting Nov. 26, 2004.

Beneco also agreed with Northern Mini-Hydro Corp., another independent power producer, for the power needs of barangays Poblacion and Palina in Bakun town, also for a five-year term from April 26, 2004.

The electric cooperative said Hedcor and NMHC were the only independent power producers (IPPs) that proposed to energize the said off-grid areas at no additional cost.

Both agreements provided for an electric power purchase rate equivalent to the “avoided cost”, which is what Beneco would pay the National Transmission Corp. (Transco) and its predecessor National Power Corp. (NPC) once Hedcor and NHMC generation are not available.

The two agreements, however, also provided for a three percent discount based on the “avoided cost”.

The “avoided cost” includes generation charges, adjustments, power delivery charges, excluding penalties, surcharges, power factor charges/adjustments, primary voltage discount and prompt payment discounts. # Ramon Dacawi/PIO