Lopez-led First NatGas Power Corp. (FNPC) and Manila Electric Co. (Meralco) have received the final approval from the Energy Regulatory Commission (ERC) for their six-year power supply agreement (PSA).
FNPC is a wholly-owned subsidiary of First Gen and owns the 414 megawatt San Gabriel combined-cycle natural gas-fired power plant in Batangas.
In its decision, the ERC granted final approval of the PSA and affirmed the applicable rates under the provisional authority granted by the ERC in its June 2018 order, subject to certain modifications and conditions.
It said that if liquefied natural gas (LNG) becomes available, the term of the PSA could be extended upon mutual agreement with Meralco.
First, Gen said Meralco would be able to secure competitively priced baseload electricity under the PSA.