EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
FEATURE
EDC EXTENDS SUPPLY DEALS WITH
ELECTRIC COOPERATIVES AND PRIVATE DUs
As testament to the satisfaction of EDC’s partner electric
cooperatives (ECs) and private distribution utilities (DUs)
with the company, the year 2014 saw an extension of
existing power supply contracts of 10 years to another 15
years.
EDC through its subsidiary Green Core Geothermal, Inc.
(GCGI) signed an amendment to the current power supply
agreement (PSA) with the following ECs and private DUs:
1. Capiz Electric Cooperative, Inc. (CAPELCO)
2. Leyte II Electric Cooperative, Inc. (LEYECO II)
3. Leyte III Electric Cooperative, Inc. (LEYECO III)
4. Bohol II Electric Cooperative, Inc. (BOHECO II)
5. Iloilo I Electric Cooperative, Inc. (ILECO I)
6. Iloilo II Electric Cooperative, Inc. (ILECO II)
7. Iloilo III Electric Cooperative, Inc. (ILECO III)
8. Negros Oriental I Electric Cooperative, Inc. (NORECO I)
9. Negros Oriental II Electric Cooperative, Inc. (NORECO II)
10. Aklan Electric Cooperative, Inc. (AKELCO)
11. Balamban Enerzone Corporation (BEZ)
12. Central Negros Electric Cooperative, Inc. (CENECO)
13. Guimaras Electric Cooperative, Inc. (GUIMELCO)
14. Visayan Electric Cooperative, Inc. (VECO)
The amended PSA covers a new price pursuant to the
re-pricing provisions and market-based structure in the
original PSA. In particular, it reflects a price reduction
of approximately ₱0.4 per kilowatt-hour starting 2015.
This translates to savings in generation charges, which is
expected to be felt by the member consumers of the 14 ECs
and private DUs.
Out of the 14 ECs and private DUs, four have requested
additional capacity, namely:
Customer
Additional
Contract
Demand (MW)
Start Date
CAPELCO 3 January 14, 2015
AKELCO 3 December 26, 2014
ILECO II 2 December 26, 2014
ILECO III 2.5 December 26, 2014
While GCGI and CAPELCO agreed to increase the power
supply from 12MW to 15MW of power starting January 14,
2015 up to September 25, 2015, GCGI also agreed to an
additional contracted demand of 3MW, for a total of 18MW,
starting September 2015 until December 2040.
CAPELCO General Manager Edgar Diaz cited the
company for being a “reliable power supplier which offers
very competitive rates.” CAPELCO is one of the electric
cooperatives in Panay and supplies power to 17 cities
and municipalities in Capiz. GCGI operates the 112.5MW
Tongonan geothermal plant in Leyte and the 172.5MW
Palinpinon geothermal plants in Negros Oriental.
Because these electric cooperatives’ power supply comes
from geothermal sources rather than fossil fuels, GCGI
effectively helps them minimize their risk exposure to
unpredictable foreign exchange rate fluctuations and
volatile global fuel price movements. This is a major
benefit for EDC’s customers because, historically, coal price
movements have fluctuated wildly.
Apart from the PSAs, EDC has three 25-year Power Purchase
Agreements (PPAs) with National Power Corporation (NPC)
covering EDC’s Unified Leyte and Mindanao geothermal
power projects. The PPAs for Unified Leyte and Mindanao I
are scheduled to expire in 2022 while the PPA for Mindanao
II will expire in 2024.
EDC, through GCGI, looks forward to more years of
partnership with more electric cooperatives and private
distribution utilities all over the country so that it can
continue to fulfill its commitment to provide clean, adequate,
affordable, and quality electric services to more Filipinos.
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This page contains the following GRI indicator(s):
EU-3.