ERC denies application of 11 ‘legally defective’ power supply agreements


The Energy Regulatory Commission (ERC) rejected the application of 11 power supply agreements that were legally defective and failed to meet the set requirements.

“The ERC, being a quasi-judicial agency, is duty-bound to ensure that applicants and petitioners doing business in its regulated field act with truthfulness and diligence in the filing of their pleadings,” ERC chairman and CEO Jose Vicente Salazar said.

ERC’s 2006 Rules of Practice and Procedure requires contract approval to come with a verification that the affiant has read the pleading and that the allegations therein are true and correct of his personal knowledge or based on authentic records.

Applications should also come with a sworn Certification of Non-Forum Shopping that says the applicant has not taken any action or filed any claim regarding the same issue in another court, tribunal or quasi-judicial agency.

The ERC dismissed the PSA applications of the following:

  • Biliran Electric Cooperative Inc. (BILECO) and La Union Electric Cooperative Inc. (LUELCO) with GN Power Dinginin Coal Plant Ltd. Co. (GNPD), a joint venture between GN Power AC Energy Holdings Inc. and Sithe Global Power LLC.
  • Cotabato Electric Cooperative Inc. (COTELCO) and Western Mindanao Power Corp. (WMPC) of the Alsons Group, Camarines Sur IV Electric Cooperative Inc. (CASURECO IV) and Unified Leyte Geothermal Inc. (ULGEI) of the Lopez group.
  • Cebu I Electric Cooperative Inc. (CEBECO I) and Cebu II Electric Cooperative Inc. (CEBECO II) with Mariveles Power Generation Corp. (MPGC), a joint venture between SMC Global Power Holdings Inc. and Meralco Powergen Corp.
  • Davao del Norte Electric Cooperative inc. (DANECO), Siargao Electric Cooperative inc. (SIARELCO), Misamis Oriental I Electric Cooperative Inc. (MORESCO I) and Zamboanga del Sur Electric Cooperative Inc. (ZAMSURECO I).
  • Nueva Vizcaya Electric Cooperative Inc. (NUVELCO) and San Miguel Energy Corp. (SMEC), who is the independent power producer (IPP) supplying 1, 000 megawatts to the 1, 294-megawatt Sual coal thermal plant.
  • PSAs of seven electric cooperatives with San Miguel Corporation’s (SMC) power plants were also denied.

Previously, ERC extended the deadline to file the PSA approval of those that did not go through competitive selection process (CSP) which requires distribution utilities (DUs) and electric cooperatives (ECs) to conduct open and competitive processes in selecting a power generating company from whom they will purchase their supply for captive markets.