EDC unit extends CAPELCO power supply deal 

A unit of listed geothermal and renewable energy producer Energy Development Corp. (EDC) has slashed the rates and increased the megawatts under a 20-year extension of a power supply agreement with an electric cooperative in Panay Island.

 

Subsidiary Green Core Geothermal Inc. (GCGI) has extended its power supply agreement with Capiz Electric Cooperative Inc. (CAPELCO) ending in 2020 to December 2040, EDC said in a disclosure to the Philippine Stock Exchange Monday.

 

CAPELCO supplies power to 17 cities and municipalities of Capiz.

 

Under the amended agreement, Green Core will reduce its price by approximately P0.30 per kilowatt-hour starting 2015.

 

The lower price will give CAPELCO the benefit of stable and predictable prices despite swings in coal prices, Green Core president Richard Tantoco said in a statement.

 

“With power supply in Panay coming from imported fossil-fuel based sources, GCGI effectively helps CAPELCO minimize their risk from unpredictable foreign exchange rate fluctuations and volatile global fuel price movements," he said.

 

The lower rates will directly benefit the households served by CAPELCO, general manager Edgar Diaz said in the same statement.

 

“CAPELCO was very pleased with the results of the re-pricing endeavors with GCGI, given that its benefits will be directly felt by our member consumers," he said.

 

The EDC unit also increased the supply to 15 megawatts from 12 MW for one year starting September 2014 to September 2015, and up to 18 MW starting September 2015 until December 2040.

 

“We assure CAPELCO that we will continue to provide clean, reliable, and competitively-priced power with utmost dedication," Tantoco said.

 

Green Core operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plants in Negros Oriental. – Danessa O. Rivera/VS, GMA News