Bac-Man Geothermal Inc. (BGI) of the Lopez family will supply Batangas II Electric Cooperative Inc. (BATELEC II) with geothermal energy following the issuance of a provisional approval of their power supply agreement (PSA).
BGI owns and operates the 150-megawatts Bac-Man geothermal facilities located in Bacon, Sorsogon City, and Manito, Albay.
Energy Regulatory Commission chairperson and CEO Agnes Devanadera said the PSA will provide some relief to BATELEC II’s customers as their power supply will be augmented.
The provisional authority is subject to the applicable rate of P4.3767 per kilowatt-hour, and the power supply shall be limited only to renewable sources.
ERC said the rate to be applied for the replacement energy should be equivalent to the approved PSA rate or the actual rate, whichever is lower.
It asked BATELEC II and BGI to comply with the efficient utilization of the contracted capacity from BGI, especially its obligation to supply at the least cost, and for BATELEC II to share the 50 percent of the availed prompt payment discount (PPD) to its member-consumers to reduce their electricity bill.
According to the ERC, the provisional approval is necessary because BATELEC II will use this in compliance with the Renewable Portfolio Standards (“RPS”) requirements for on-grid areas.
This will also serve as additional capacity to secure a more stable, reliable, and efficient power supply source for BATELEC II for nine years at a reasonable rate.
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