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By: Shiela Mae Butlig,
Correspondent

THE Energy Regulatory Commission has suspended the process of approvals of power supply agreements of Moresco II and the Astronergy due to the failure of the latter to secure an Environmental Compliance Certificate (ECC) required by the Department of Environment and Natural Resources (DENR).

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Moresco II and Astronergy were among of the eight applicants that the ERC has defer its approval of Powe Supply Agreement (PSA) . Among the eight were Palawan Electric Cooperative (Paleco)  and Delta Electric

Power Association ; CEBECO and Mariveles Power Generation Corporation (MPGC); Tarlac Electric Cooperative (TARELCOI and MPGC ; Cebu Electric Cooperative ( Cebeco)  II and MPGC; Aurora Electric Cooperative

(AURELCO) and MPGC; Pampangga Electric Cooperative  ( Pelco II ) and MPGC.

In an interview with this publication ERC spokesperson, Rexie Digal, said Moresco II, an electric cooperative entered into a contract with Astronergy for the supply of energy coming the medina solar plant.

However, Astronergy failed to secure an ECC that will make the application of MORESCO II in abeyance.

Astronergy is a solar plant in Medina , Misamis Oriental.

In a research made by this paper , in a joint application of Moresco II and Astronergy they applied before the office of the ERC the approval of the Renewable Energy Supply  Agreement and the amendment dated March 5,2014 between Moresco II and Astronergy with the prayer of issuance of provisional authority.

Moresco II who engaged in the distribution of electric light and power within its service area which covers the Eastern Misamis Oriental, which encompasses Gingoog City and the municipalities of Jasaan, Claveria, Balingasag, Lagonglong, Salay, Binuangan, Sugbongcogon, Kinoguitan, Balingoan, Talisayan, Medina and Magsaysay.

In their application they stated that presently, Moresco II source of the majority of its power is from   the Power Sector Assets and Liabilities Management Corporation (Psalm) under a contract for the Supply of Electric Energy (CSEE) which will expire on December 2016. The remainder of its power requirements is sourced from King Energy Generation Inc., and a supply agreement with FDC Mt Apo.

Now, Moresco II doubted if Psalm could still give them enough power. “It is uncertain whether Psalm still has the capacity to supply power requirements beyond December 2016 as Psalm is in the process of privatizing its generation assets in Mindanao. In fact, the contracted capacity under the current CSEE of Moresco II and Psalm is already a reduced capacity in view of the existence of a region-wide power supply deficiency problem in Mindanao”.

Even as the Moresco II has projected the increase of customers for the next few years and so the boards of Moresco II has decided  to enter into a contract with Astronergy because of its commitment to deliver

power within a short time from approval by the Energy Regulatory Commission.

The short construction period of less than a year will provide immediate relief to the power deficiency problems of Moresco II.

Furthermore, the power offered by Astronergy is appropriate to meet Moresco II’s daytime power requirement based on its average daily load profile for the past twelve months prior to the filing of this application and Astronergy’s generation curve.

Now, this application will be suspended as confirmed by the ERC due to non-issuance of ECC by the Astronergy.

ECC is required by the DENR for any project in the Philippines that possess a potential environmental risk or a significant impact to the environment, such as mining, agriculture projects or constructions.

In a statement made by the Chairman of the ERC Jose Vicente B. Salazar, he reiterated that the ERC fully shares DENR’s concern to ensure the protection of the environment to help safeguard the people’s right to a balance and healthful ecology.

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