The Negros Oriental II Electric Cooperative and Green Core Geothermal Inc. signed yesterday an amendment to their power supply agreement for a P0.45 per kilowatt hour rate reduction effective October 26 this year.
The extended term will be from December 25, 2020 to December 25, 2035 to ensure power supply security for its consumers.
The amended contract will benefit Noreco 2 customers as it provides for the delivery of 25-megawatt of clean geothermal power at reduced rate pursuant to the re-pricing provisions and market-based structure in the original ten-year PSA, the Energy Development Corporation said.
GCGI, a subsidiary of First Luzon Geothermal Energy Corporation owned by EDC, acquired and now operates the National Power Corporation’s geothermal power plants in Valencia, Negros Oriental, a few years back and has since then supplied continuous power to Noreco 2 and other distribution utilities in the Central Visayas region.
The reduced rate includes the prompt payment discount that Noreco 2 is entitled to. The basic energy charge was already reflected in the customers’ November 2014 billing statement, EDC said.
Noreco 2 general manager, Dionefred Macahig, said the electric cooperative had recently received an award from the GCGI for being prompt in its payments. He said they are happy to continue the partnership with GCGI.
GCGI operates the 192.5MW Palinpinon geothermal power plants in Valencia, Negros Oriental, and the 112.5MW Tongongna geothermal power plant in Kananga, Leyte, and is the power arm of the EDC, the country’s leading producer of geothermal power, a press release from the company said.
Noreco 2 supplies power to the cities of Bayawan, Tanjay, and Dumaguete, and the towns of Amlan, Bacong, Basay, Dauin, Pamplona, San Jose, Siaton, Sibulan, Sta. Catalina, Valencia and Zamboanguita.
EDC president and chief operations officer, Richard Tantoco, Macahig and Noreco 2 Board chair Fe Marie Tagle led the signing of the amended PSA.
Tantoco said EDC will start implementing projects next year to strengthen their towers to ensure a steady supply of power even in time of disasters.*JFP/with reports from EDC
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