THE Energy Regulatory Commission (ERC) has resolved to defer the approval of at least eight power supply agreements, including that of Cebu 1 Electric Cooperative Inc. (Cebeco) I and Cebeco II.
ERC decided to hold in abeyance the application of several power distributors for lack of an environmental compliance certificate (ECC) for their projects from the Department of Environment and Natural Resources (DENR).
ERC Chairman Jose Vicente Salazar told reporters they just want to make sure that environmental protection for these projects is not sacrificed.
Concerns
“ERC fully shares DENR’s concern to ensure the protection of the environment and is determined to help safeguard the people’s right to a balanced and healthful ecology in accordance with the Constitution,” he said.
An ECC is a requirement for power projects that may pose risks to or have a significant impact on the environment.
It certifies that the project will not cause significant harm to the environment.
ERC’s move was in response to the request of DENR not to approve any power supply agreement pending before the commission following the review of all the ECCs.
Cebeco I and II were supposed to enter into power supply agreements with Mariveles Power Generation Corp. (MPGC).
Under the joint application submitted by Cebeco II and MPSG to ERC, there is a need for an additional power supply for the service area of the former to accommodate the increase in demand.
Expiring deal
Cebeco II’s 15-megawatt bilateral contract with Kepco Salcon Power Corp. is about to expire.
It conducted an open canvas through a solicited proposal from existing power suppliers, with MPGC offering the lowest rates.
Cebeco II holds a franchise to operate light and power services in the cities of Bogo and Danao and the towns of Borbon, Carmen, Catmon, Compostela, Daanbantayan, Medellin, San Remegio, Sogod, Tabogon, Tabuelan and Tuburan.
On the other hand, Cebeco I serves Carcar City and the towns of Barili, Dumanjug, Ronda Alcantara, Moalboal, Badian, Alegria, Malabuyoc, Ginatilan, Samboan, Santander, Oslob, Boljoon, Alcoy, Dalaguete, Argao and Sibonga.
