EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
38.
FG Hydro’s Contracts and Agreements
PSCs
In 2006, FG Hydro acquired existing contracts from NPC as part of FG Hydro’s acquisition of the
PAHEP/MAHEP for the supply of electric energy with several customers within the vicinity of
Nueva Ecija. All of these contracts had expired as of December 31, 2011. Upon renegotiation
with the customers and due process as stipulated by the ERC, the expired contracts were renewed
except for the contract with Pantabangan Municipal Electric System (PAMES).
FG Hydro shall generate and deliver to these customers the contracted energy on a monthly basis.
FG Hydro is bound to service these customers for the remainder of the stipulated terms, the range
of which falls from December 2008 to December 2020.
Upon expiration, these contracts may be renewable upon renegotiation with the customers and by
the approval of ERC. As of December 31, 2013, there are four remaining PSCs being serviced by
FG Hydro.
In addition to the above contracts, FG Hydro entered into a PSA with BGI, effective for a period
of two months, commencing on December 26, 2011, unless it is sooner terminated or thereafter
renewed or extended under such terms as may be agreed by both parties.
Details of the existing contracts of FG Hydro are as follows:
Related Contracts Expiry Date Other Developments
PAMES December 25, 2008 FG Hydro had continued to supply
PAMES’ electricity requirements with
PAMES’ compliance to the agreed
restructured payment terms. However,
there was no new agreement signed
between FG Hydro and PAMES
Nueva Ecija II Electric
Cooperative, Inc., Area 2
(NEECO II - Area 2)
Edong Cold Storage and Ice
Plant (ECSIP)
December 25, 2016
December 25, 2020
The ERC granted a provisional approval
of the PSA between FG Hydro and
NEECO II-Area 2 on August 2, 2010
with a pending final resolution of the
application for the approval thereof.
A new agreement was signed by FG
Hydro and ECOSIP in November 2010
for the supply of power in the
succeeding 10 years.
NIA-Upper Pampanga River
Integrated Irrigation System
(UPRIIS)
October 25, 2020
FG Hydro and NIA-UPRIIS signed a
new agreement in October 2010 for the
supply of power in the succeeding 10
years.
In addition to the above contracts, FG Hydro entered into a PSA with Nueva Ecija II Electric
Cooperative, Inc., Area 1 (NEECO II - Area 1). The contract term is for a minimum of five years,
commencing on August 26, 2013, and may further continue and remain effective up to August 25,
2023 subject to agreement by both parties on the provisions of re-pricing. The ERC granted a
provisional approval of the PSA between FG Hydro and NEECO II-Area 1 on January 14, 2014.
FG Hydro also entered into a PSA with FPIC. The contract was originally for a period of eight
months, commencing on April 26, 2012, and was extended for a month or until January 25, 2013.
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