^{In photo: PALECO GM Rez Contrivida inks its PSA with Delta P President Erickson Omamalin to provide 40MW additional power to Palawan}

Palawan Electric Cooperative (PALECO) has officially switched on an additional 40 megawatts (MW) of power supply for Puerto Princesa and mainland Palawan through a new long-term Power Supply Agreement (PSA) with Delta P, Inc., a subsidiary of Vivant Energy Corporation.

The energization, formalized on October 4, marks the transition from the previous one-year Transition Power Supply Agreement (TPSA) to a 15-year PSA signed earlier in 2024. The partnership is expected to help address Palawan’s persistent power reliability issues while easing the cost burden on consumers.

Under the PSA, Delta P will deliver power to PALECO at the Subsidized Approved Generation Rate (SAGR), a pricing mechanism that limits generation cost recovery to government-approved levels. The arrangement is seen to lower overall electricity bills for PALECO’s member-consumer-owners (MCOs).

The Energy Regulatory Commission (ERC) earlier approved the transitory PSA covering the period from October 2024 to 2025. Its implementation will entitle MCOs to refunds and reduced generation rates through the Universal Charge for Missionary Electrification (UCME)—a fund designed to support electrification in off-grid areas.

“Through this transition, PALECO assures Palaweños that we are keeping our promise of delivering reliable service, stable power, and lower rates, as we move toward Palawan’s development,” said PALECO General Manager Rez Contrivida.

Delta P President Eric Omamalin said the project reflects the company’s long-term commitment to Palawan. “This milestone is a proof of our commitment to provide secure and reliable power to Palawan—continuing our mission of bringing excellence to industries that improve everyday living,” he said.

The new supply is part of PALECO’s broader push to resolve chronic supply interruptions and voltage fluctuations in the province. The cooperative said the phased delivery under the PSA will ensure gradual load stabilization and improved service reliability for its consumers.

How do you see PALECO’s new 40-MW supply deal with Delta P shaping Palawan’s energy reliability and affordability? Join the discussion and share your insights on what this means for the island’s power future.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.