The Electrical Engineer - Institute of Integrated Electrical Engineers ...

September 20, 2010
QUARTERLY INDUSTRYNEWS DIGEST
Meralco reinforces good governance
Meralco further reinforces its practice of good corporate
governance, putting a communication policy in place
and implementing a period within which officers and
executives are restricted from making stock market
transactions in the interest of good governance and
transparency.
The “BE RIGHT Communication Policy” or B RIGHT
COMM” is the campaign slogan adopted by Management
to promote Corporate Governance in Meralco. President &
CEO Manuel V. Pangilinan said that the “BE Right” tagline
“represents the right behavior that should be adopted
and exercised by any director, officer or employee of
Meralco in dealing with stakeholders.
As a communication vehicle, the B RIGHT Comm aims
to promote responsible and free interaction between
Management and employees. The President said that the
campaign opens the lines of communication “not just for
Management to relay directions but also for employees
to express their ideas and concerns to Management
willingly and openly.” These include inputs to save on
costs and improve quality, workplace efficiency and
www.meralco.com.ph
customer service to improve working conditions. It also
encourages disclosure of misdeeds or misdemeanors
that may be harmful to the company and its reputation.
“It is our duty as employees to uphold the interest of our
company, while protecting the rights of our employees,”
the President said.
INTERNATIONAL BEST PRACTICES
In another move to further strengthen good corporate
governance and transparency, Management enjoined its
officers and executives from buying and selling publiclytraded
Meralco shares within 15 calendar days before
and two trading days after the release of the company’s
quarterly and annual financial and operating results.
The President & CEO issued a policy on the matter in a
memorandum issued July 16, 2010 to all employees for
their guidance.
The President & CEO stressed that this practice, known
as the “blackout period,” is consistent with international
best practices and covers the company’s officers and
executives.
ERC issues COC to CEDC's Cebu-based Unit 2
Coal-fired Power Plant
August 13, 2010 www.erc.gov.ph
The Energy Regulatory Commission (ERC) approved on 2
August 2010 the issuance of a Certificate of Compliance
(COC) to Cebu Energy Development Corporation’s
(CEDC) 83,700.35 kW Circulating Fluidized Bed (CFB)
Coal-fired Thermal Power Unit 2 Plant Facility located at
Brgy. Daanlungsod, Toledo City, Province of Cebu.
The said unit is one of the three applied for by CEDC for
COCs. This Toledo City facility is comprised of three (3)
units with an aggregate installed capacity of 246 MW. Unit
No. 1 was awarded a COC by the ERC in February 2010
upon its commissioning and completion of documentary
requirements. Unit No. 2 was commissioned and
inspected by the ERC in July 2010. Unit 3 is expected to
be commissioned and connected to the Visayas grid after
its completion date targeted in January 2011.
CEDC is a joint venture between Global Formosa Power
Holdings, Inc. (GFPHI) and Abovant Holdings, Inc. (AHI).
Said parties entered into a Memorandum of Agreement
(MOA) to form a joint venture for the purpose of constructing
a new Coal-fired Thermal Power Plant complex in Toledo
City, Cebu. GFPHI owns 56% of the company while and
AHI owns 44%. The construction of the complex started
in January 2008 and will be completed in January 2011.
CEDC has an Electric Power Purchase Agreement (EPPA)
with the Visayan Electric Company (VECO) for the sale
of a contracted capacity of 105 MW with a cooperation
period of 25 years starting on its commercial operation.
Also, CEDC has a MOA with the National Grid Corporation
of the Philippines (NGCP) for transmission services via an
interconnection to the 138 KV NGCP Talavera Substation.
A bypass transmission line, that will interconnect the
CEDC and Toledo Power to the NGCP Naga Substation, is
presently undergoing construction which will eventually
directly connect CEDC and Toledo Power to the facilities
of VECO. The bypass transmission line will also ease
up power congestion that may occur along the Talavera
transmission line.
“We are elated with this positive development in the power
generation sector since it will augment the short power
supply in the Visayas.. This development will benefit the
electricity consumers in terms of improved standards of
living and economic growth,” ERC Chairperson Zenaida
G. Cruz-Ducut stated.
THE ELECTRICAL ENGINEER MAGAZINE 3RD QUARTER 2010 23