The Pagbilao Energy Corp. (PEC) will continue the commercial operations of its 400-megawatt (MW) coal-fired power plant on Quezon after the municipal government recalled its cease and desist order (CDO).
The Aboitiz Power Corp disclosed that the Municipality of Pagbilao revoked the CDO and the case filed by PEC with the Regional Trial Court of Quezon against the municipal government has been dismissed.
PEC is a joint venture between AboitizPower’s Therma Power Inc. and TeaM Philippines Energy Corp.’s TPEC Holdings Corp.
“PEC is working with the Municipality of Pagbilao for the issuance of its business permit, and also on the few remaining steps necessary before the start of the PEC plant’s commercial operations,” AboitizPower said.
When PEC applied for a business permit, the Municipality of Pagbilao required them to execute a memorandum of agreement (MOA) in the implementation of its corporate social responsibility (CSR).
However, the company said that the plant has received all required endorsements from local government units like the Quezon provincial government, municipality of Pagbilao and the host barangay of Ibabang Polo.
Clearances and endorsements from national government agencies like the Department of Energy and the Department of Environment and Natural Resources, were also acquired by the company.
But despite this, the municipality refused to release the business permit without the MOA and gave a CDO instead.
Its certificate of compliance (COC), meanwhile, was already granted by the Energy Regulatory Commission (ERC) for its 420 – MW Pagbilao Unit 3 coal-fired thermal power plant and 1.04 – MW black start generator in Pagbilao, Quezon.
A COC is needed in order for a power plant or any other facility used in power generation to commercially operate.
