The Manila Electric Co. (Meralco) has expanded its power supply agreement (PSA) with South Premiere Power Corp. (SPPC), a unit of the Ang-led San Miguel Corp., to 1,200 megawatts (MW) following approval from the Energy Regulatory Commission (ERC).
The ERC granted an additional 290 MW on top of the originally approved 910 MW capacity to resolve a motion for partial reconsideration.
"After careful deliberation, the Commission resolved to add 290 MW to the originally approved capacity under the instant case," the ERC said.
A Notice of Resolution, signed by ERC Chairperson and CEO Monalisa C. Dimalanta, will be issued accordingly.
The additional capacity will be subject to the same rates and conditions set in the ERC’s previous PSA approval dated 9 May.
These include an annual capacity fee of P10,620.2 per kilowatt-year, an annual escalating fixed operations and maintenance (O&M) fee of P3,200 per kilowatt-year, and an escalating variable O&M fee of P0.0900 per kilowatt-hour. The fuel fee remains a pass-through charge subject to a fuel index.
The ERC originally approved Meralco’s request to source 910 MW from the 1,200-MW Ilijan Natural Gas Plant operated by SPPC at a base rate of P5.9282 per kWh.
Granting provisional authority for the PSA, which was awarded through a competitive selection process, the ERC said that the deal should shield Meralco consumers from volatile Wholesale Electricity Spot Market prices and replace higher-cost contracts from the same plant.